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
The Laudus Trust
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(Exact name of registrant as specified in charter)
101 Montgomery Street, San Francisco, California 94104
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(Address of principal executive offices) (Zip code)
Evelyn Dilsaver
The Laudus Trust
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101 Montgomery Street, San Francisco, California 94104
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(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, 2007
ANNUAL REPORT
March 31, 2007 (LAUDUS FUNDS LOGO)
COMMAND PERFORMANCE(TM)
U.S. EQUITY FUNDS
Laudus Rosenberg U.S. Large Capitalization Fund
Laudus Rosenberg U.S. Large Capitalization Growth Fund
Laudus Rosenberg U.S. Large Capitalization Value Fund
Laudus Rosenberg U.S. Discovery Fund (closed to new investors)
Laudus Rosenberg U.S. Small Capitalization Fund (closed to new investors)
INTERNATIONAL EQUITY FUNDS
Laudus Rosenberg International Equity Fund
Laudus Rosenberg International Discovery Fund
Laudus Rosenberg International Small Capitalization Fund (closed)
LONG/SHORT EQUITY FUNDS
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund
Laudus Rosenberg Global Long/Short Equity Fund
Laudus Rosenberg Value Long/Short Equity Fund
Each of the Funds is a series of Laudus Trust, which is an open-end management
investment company offering diversified portfolios with different investment
objectives and strategies.
Charles Schwab Investment Management, Inc. is the Adviser to the Funds and AXA
Rosenberg Investment Management LLC is the Sub-adviser.
Table of Contents
<Table>
1 PRESIDENT'S MESSAGE
2 MANAGEMENT'S DISCUSSION
13 PERFORMANCE AND FUND FACTS
30 FUND EXPENSES
32 PORTFOLIO HOLDINGS
130 FINANCIAL STATEMENTS AND NOTES
157 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
158 TRUSTEES AND OFFICERS OF LAUDUS TRUST
163 DEFINITIONS, TERMS AND OTHER INFORMATION
</Table>
Nothing in this report represents a recommendation of a security by the
investmentadviser. Portfolio Manager views and portfolio holdings may have
changed since the report date.
NOTICE ABOUT DUPLICATE MAILINGS
In order to reduce expenses of the Laudus Trust incurred in connection with the
mailing of prospectuses, prospectus supplements, semi-annual reports and annual
reports to multiple shareholders at the same address, Laudus Trust may in the
future deliver one copy of a prospectus, prospectus supplement, semi-annual
report or annual report to a single investor sharing a street address or post
office box with other investors, provided that all such investors have the same
last name or are believed to be members of the same family. This process, called
"householding," will continue indefinitely unless you instruct us otherwise. If
you share an address with another investor and wish to receive your own
prospectus, prospectus supplements, semi-annual reports and annual reports,
please call the Trust toll-free at 800.447.3332.
Each of the Funds is a series of the Laudus Trust (the "Trust"), an open-end
management investment company offering multiple portfolios with different
investment objectives and strategies. Except as explicitly described otherwise,
the investment objective and policies of each of the Funds may be changed
without shareholder approval. The Funds are advised by Charles Schwab Investment
Management, Inc. ("CSIM"). AXA Rosenberg Investment Management LLC ("AXA
Rosenberg") acts as Sub-adviser to the Funds. The Funds are distributed by ALPS
DISTRIBUTORS, INC.
President's Message
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(PHOTO OF EVELYN DILSAVER)
EVELYN DILSAVER is President and CEO of Laudus Funds. She joined the firm in
1992 and has held a variety of executive positions at Schwab.
- --------------------------------------------------------------------------------
Dear Shareholder,
I am pleased to present the annual report for the Laudus Rosenberg Funds for the
year ended March 31, 2007. With support from investors like you, Laudus
Rosenberg Funds assets exceeded $4.6 billion as of this report date.
The Laudus Rosenberg Funds are sub-advised by AXA Rosenberg, one of the world's
premier equity specialists and institutional money managers. The funds employ
the kind of highly consistent investment approach that is a hallmark of
institutional-style investing. Since making this distinctive approach to
investment management available to investment advisers and individual investors
in 2004, the total assets of the Laudus Rosenberg Funds have grown by over 250%.
We continue to evaluate opportunities to expand our product offering through
funds that leverage this framework. To that end, I'm pleased to report that on
May 31, 2006, we launched the Laudus Rosenberg International Discovery Fund
which has $71 million in net assets as of the end of the report period. The fund
utilizes the same investment discipline used in all of the Laudus Rosenberg
Funds and provides international small/mid-cap exposure in developed and
emerging markets.
In closing, I would like to emphasize that your trust is very important to us
and I will do all I can to maintain that trust. Thank you for investing in
Laudus Funds.
Sincerely,
/s/ Evelyn Dilsaver
Investors should consider carefully information contained in the prospectus,
including investment objectives, risks, charges and expenses. You can request a
prospectus by calling 1-800-447-3332. Please read the prospectus carefully
before investing.
Laudus Trust Annual Report 1
Management's Discussion for the year ended March 31, 2007
U.S. MARKET OVERVIEW
U.S. markets over the past twelve months have been struck by sharp bouts of
increased volatility. In June 2006 and February 2007, markets corrected sharply
following renewed concern of the durability of global economic growth. Worries
surrounding the U.S. sub-prime mortgage market, uncertainty regarding the U.S.
Federal Reserve Open Market Committee's next move on interest rate levels, and
slowing corporate earnings in the U.S. were but a few of the concerns hanging
over the markets during the past twelve months.
The Open Market Committee raised the federal funds target rate to 5.25% in June
2006, a rate that has remained unchanged since then. The Federal Reserve
chairman, in his most recent comments, dampened hopes that the central bank had
adopted a softer policy stance by reinforcing inflation concerns and by
emphasizing that the Fed would not abandon its bias towards raising interest
rates.
Macroeconomic data released during Q1 07 painted a somewhat mixed picture for
the economy. Weak data on new homes sales and durable good orders heightened
investors' fears about a sharp slowdown in economic growth. Although there was
an upward revision to fourth quarter 2006 U.S. GDP, most market participants
recognize that growth has been below trend for the last three quarters.
Corporate earnings are anticipated to be weaker and expectations are for the
slowest growth in more than three years, with consensus growth of around 4%
versus the past ten quarters of double-digit growth.
Continuing signs of a slow down in U.S. housing and the growing trouble in the
sub-prime housing mortgage industry weighed on the market in Q1 07. Concerns
grew that the steep losses in the securities backed up by sub-prime loans would
increase investor risk-aversion and prompt further market losses, threatening an
already troubled housing market. Sub-prime mortgages, written on properties for
clients with little or no equity, continue to remain vulnerable. A number of
mortgage companies, which made these loans, are seeing significant default rates
and some have filed for bankruptcy, further heightening market concern.
The price of oil rallied as the first quarter came to a close, driven by
geo-political issues with Iran, OPEC declining to raise production targets, and
renewed growth in energy demand from China -- all of which pushed the price of
oil above $65 per barrel. Industrial metals such as copper, tin, and lead, after
slipping during the first part of the year, rallied strongly at month-end on
news of improving global demand. After a robust 2006, the mergers and
acquisition environment continued at a torrid pace in the first quarter and has
provided further support to the markets as announced deals in the U.S. reached
$439 billion and over $1.1 trillion globally.
The dollar weakened against the world's major currencies on persistent domestic
economic growth concerns and news that the U.S. was initiating sanctions against
selected Chinese industries. Also weighing on the dollar has been a bias towards
global monetary tightening this quarter in Japan, India, China, United Kingdom,
and Europe, as the dollar has become a less appealing currency relative to
higher-yielding peers.
U.S. EQUITY FUNDS PERFORMANCE
TOTAL RETURNS are for the year ended 3/31/07. For performance details, see pages
13 through 17.
<Table>
<Caption>
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND(1,2)
- ------------------------------------------------------------
AXLIX AXLVX Russell
Institutional shares Investor shares 1000 Index
11.10% 10.69% 11.84%
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND(1)
- ------------------------------------------------------------
REDIX REFIX Russell 1000
Institutional shares Investor shares Growth Index
5.62% 5.36% 7.06%
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND(1,2)
- ------------------------------------------------------------
LLCVX LCVJX Russell 1000
Institutional shares Investor shares Value Index
13.45% 13.22% 16.83%
LAUDUS ROSENBERG U.S. DISCOVERY FUND(1,3)
(Closed to new investors)
- ------------------------------------------------------------
RDISX RDIVX Russell 2500
Institutional shares Investor shares Index
5.71% 5.34% 8.23%
</Table>
<Table>
<Caption>
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND(1,3)
(Closed to new investors)
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USCIX LIFUX BRSCX Russell 2000
Institutional shares Adviser Investor shares Index
1.11% shares 0.75% 5.91%
0.90%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUS.COM.
2 Laudus Trust Annual Report
Management's Discussion continued
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Total returns include change in share price and reinvestment of distributions.
Total returns reflect the waiver of a portion of a Fund's advisory or
administrative fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total return would have been lower.
Investors cannot invest directly in any index.
(1) Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes. Common stocks, and funds
investing in common stocks, generally provide greater return potential when
compared with other types of investments.
(2) Value-based investments are subject to the risk that the broad market may
not recognize their value.
(3) Small capitalization funds typically carry additional risks since smaller
companies generally have experienced a greater degree of market volatility.
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND For its fiscal year ended
3/31/07, the Fund posted a positive return but underperformed its benchmark, the
Russell 1000(R) Index: the Fund's Investor Shares gained 10.69% versus the
benchmark's return of 11.84%. While the Fund's exposure to risk factors provided
a positive contribution, it was offset primarily by industry allocation; stock
selection had little impact.
Among risk factors, the Fund's overweight to earnings variation was its single
largest contributor for the year, as the market rewarded companies with
more-consistent earnings. Overweights to Book-to-Price and Earnings-to-Price
measures -- traditional value factors and reflective of the Fund's value
orientation -- also contributed, as the Fund generally held more deeply
undervalued stocks than did the benchmark, and value generally outperformed
growth for the reporting period. Correspondingly, the Fund's overweight to
stocks demonstrating strong short-term growth was its largest drag among risk
factors. An overweight to stocks with higher relative strength, an indicator of
growth, also detracted.
Among industries, the Fund's consistent overweight to Basic Materials & Metals
throughout the year was the strongest contributor to performance. Although
volatile over the year, Integrated Oil Companies posted a strong one-year
return, so the Fund's substantial overweight to the industry contributed notably
to returns. An overweight to Miscellaneous Finance, which includes brokerages
and capital markets, also contributed for the period. The Fund's substantial
underexposure to Construction & Homebuilding, one of the few negatively
performing industries for the year, worked in the Fund's favor, contributing
slightly as demand weakened and inventories rose.
In a year in which most industries in the domestic large-cap universe posted
positive returns, it is not surprising that the primary industry detractors from
performance came from underweight positions. First among them was the Fund's
substantial underexposure to REITs. Although the impact of this position has
moderated recently, for the year REITs generally performed well. An underweight
to Retail, another double-digit gainer for the year, also dampened performance,
as did underweights to Drugs & Pharmaceuticals, Instruments, and Software.
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND For its fiscal year
ended 3/31/07, the Fund posted a positive return but underperformed its
benchmark, the Russell 1000(R) Growth Index: the Fund's Investor Shares gained
5.36% versus the benchmark's return of 7.06%. While stock selection contributed
slightly to performance, it was overshadowed by the impact of industry
allocation. The Fund's exposure to risk factors had little net effect.
Among industries, the Fund's consistent overweight to Basic Materials & Metals
throughout the year was the strongest contributor to performance. An
overexposure to Miscellaneous Finance, which includes brokerages and capital
markets, was the Fund's second-largest industry contributor, as the economy held
up well and the industry benefited over the reporting period. Overweights to
Government Aircraft & Defense and Chemicals & Rubber -- although volatile over
the year -- also contributed.
However, in a year in which most industries in the benchmark's universe posted
positive returns, it is not surprising that the primary detractors from
performance came from underweight positions in positively performing industries,
and such positions for the most part overshadowed the gains of the Fund's
overweight positions. First among them was the Fund's underweight to the
strongly performing Retail industry, which constitutes the largest component in
the Fund's benchmark. And although the impact of the Fund's substantial
underexposure to REITs has moderated recently, for the year REITs generally
performed well, and the position hurt the Fund. The
Laudus Trust Annual Report 3
Management's Discussion continued
Fund's substantial underweight to Construction & Homebuilding, one of the year's
few negatively performing industries, worked in its favor, contributing slightly
as the industry declined as housing demand weakened and inventories rose.
Among risk factors, the portfolio has more of a value orientation than its
benchmark, as evidenced by its overexposures to Book-to-Price and
Earnings-to-Price measures -- traditional value factors -- both of which
contributed notably, as the Fund generally held more deeply undervalued stocks
than did the benchmark. Stocks with more of a value-orientation generally
outperformed growth for the reporting period. On the other hand, although the
impact of this factor varied from quarter to quarter, the Fund's overexposure to
stocks with high relative strength detracted from Fund performance over the
year. Because stocks with higher relative strength tend to have
better-than-average near-term earnings growth, our Earnings Forecast Model tends
to favor such stocks when we find that these expectations are not fully
reflected in stock prices; and the market finally rewarded this factor in the
first quarter of 2007. The Fund's overweight to stocks demonstrating strong
short-term growth also detracted.
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND For its fiscal year ended
3/31/07, the Fund posted a positive return but underperformed its benchmark, the
Russell 1000(R) Value Index: the Fund's Investor Shares gained 13.22% versus the
benchmark's return of 16.83%. The Fund's underperformance was primarily
attributable to its industry allocation, although exposure to risk factors and
stock selection also detracted.
Among industries, the Fund's consistent overweight to Basic Materials & Metals
was the strongest contributor to performance. An overexposure to Miscellaneous
Finance, which includes brokerages and capital markets, was the Fund's
second-largest industry contributor, as the economy held up well and the
industry benefited over the reporting period. And although volatile over the
year, Oil & Coal Resources posted a positive one-year performance, so the Fund's
substantial overweight to the industry also contributed notably.
However, in a year in which most industries in the benchmark's universe posted
positive returns, it is not surprising that the primary industry detractors from
performance came from underweight positions in positively performing industries,
and such positions for the most part overshadowed the gains of the Fund's
overweight positions. First among them was the Fund's substantial underexposure
to Electric Utilities, the third-strongest industry performer for the period, as
investors favored the dividend yields paid by these companies. Although the
impact of the Fund's substantial underexposure to REITs has moderated recently,
for the year REITs, generally performed well; hence, the underweight position
hurt the Fund. An underweight to Communications Utilities, the
strongest-performing industry for the year, also dampened performance. An
overweight to Land & Water Transportation, although posting a slightly positive
return for the period, also dragged on performance, as did underweights to
Chemicals & Rubber and Integrated Oil Companies. The Fund's substantial
underexposure to Construction & Homebuilding, one of the year's few negatively
performing industries, worked in its favor, contributing slightly as demand
weakened and inventories rose.
Among risk factors, the Fund's exposure to companies exhibiting stronger growth
characteristics and trading activity than the benchmark represented the two
largest detractors from Fund performance for the period. Concurrently, its
underexposure to yield also dampened performance, as investors favored
predictable dividends while the consensus on the direction of the economy
remained elusive. However, the Fund's exposure to more-consistently earning
stocks than the benchmark represented its strongest positive contribution among
risk factor exposures. In addition, the Fund's overweights to Book-to-Price and
Earnings-to-Price measures -- traditional value factors and reflective of the
Fund's value orientation -- also contributed, as the Fund generally held more
deeply undervalued stocks than did the benchmark, and value generally
outperformed growth for the reporting period.
LAUDUS ROSENBERG U.S. DISCOVERY FUND For its fiscal year ended 3/31/07, the
Fund posted a positive return but underperformed its benchmark, the Russell
2500(TM) Index: the Fund's Investor Shares gained 5.34% for the period versus
the benchmark's gain of 8.23%. The Fund's underperformance was primarily
attributable to stock selection.
An example is Illumina Inc., a medical equipment company that produces tools and
systems for genetic analysis. Both our Valuation and Earnings Forecast Model
found the stock to be attractive, but a patent litigation award against the
company late in the year caused its
4 Laudus Trust Annual Report
Management's Discussion continued
price to fall. In spite of the judgment, we continue to find the stock
attractive. However, in other cases, individual stocks did add value. One,
supported by the Earnings Forecast Model, was Allegheny Technologies Inc., a
specialty steel and materials company that outperformed due to ongoing strong
demand for its products from the Aerospace, Defense and Oil & Gas industries.
Another was Avnet, Inc., an electronic parts distributor: while our Earnings
Forecast Model has been modestly positive on the stock, our Valuation Model
showed a much stronger expectation for outperformance. We added to our initial
position, established in 2005, when the price fell during the third quarter of
2006. In January of 2007, the company declared positive earnings and guidance,
and the stock rallied thru the end of the period.
Among industries, the Fund's consistent overweight to Basic Materials & Metals
throughout the year was the strongest contributor to performance. Although
exhibiting some volatility throughout the year, a substantial overexposure to
Insurance stocks also contributed to Fund performance. The Fund's overweight to
the strongly performing Textiles and Apparel industry also contributed notably.
However, in a year in which most industries in the benchmark's universe posted
positive returns, it is not surprising that the primary industry detractors from
performance came from underweight positions in positively performing industries,
and such positions essentially negated the positives to result in a net zero
impact. First among them was the Fund's substantial underexposure to REITs;
although the impact has moderated recently, for the year REITs generally
performed well, and the underweight position hurt the Fund. An underexposure to
Communications Utilities -- the year's strongest performer -- also detracted
from performance; the performance of both of those industries are indicative of
investors' taste for dividend yield over the year. And while the Fund's
underexposure to the poorly performing Construction & Homebuilding detracted
only slightly from performance, Construction Materials held up surprisingly well
in this environment, posting a double-digit return, and the Fund's
underweighting had more of a dampening effect. An underexposure to Publishing,
Broadcasting & Cinema also detracted.
Among risk factors, while over- and underweightings have not measurably changed
during the year, the impact of the Fund's exposures to those risk factors varied
substantially. For instance, the Fund's continued higher exposure to traditional
value factors compared to the benchmark -- such Book-to-Price and
Earnings-to-Price measures -- represented its strongest risk factor contributors
for the year. The Fund's overweight to earnings variation contributed as the
market rewarded companies with more-consistent earnings. Detracting somewhat,
but not nearly enough to overcome the positive risk factor contributors, was the
portfolio's heavy overweighting to relative strength, a measure of recent price
performance. High-relative-strength stocks tend to have better-than-average
near-term earnings growth, but the market did not reward this factor for the
reporting period. A slight underexposure to yield, which was rewarded by the
market, also detracted from performance.
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND For its fiscal year ended
3/31/07, the Fund posted a slightly positive return but underperformed its
benchmark, the Russell 2000(R) Index: the Fund's Investor Shares gained 0.75%
versus the benchmark's gain of 5.91%. The Fund's underperformance was primarily
attributable to stock selection, although exposures to risk factors compensated
somewhat. Industry allocation also detracted.
Among underperforming stocks, for example, was Checkpoint Systems, a producer of
electronic surveillance and radio frequency tags for retail sales systems. Both
our Valuation and Earnings Forecast Models found the stock to be attractive, but
it suffered as the company announced weaker earnings in the third quarter of
2006. The stock has rallied from its mid-year lows, and we continued to hold it
despite its negative contribution for this fiscal year. Other stocks did
contribute positively. CF Industries Holdings, one of North America's largest
manufacturers and distributors of nitrogen and phosphate fertilizer products,
gained driven by expectations of rising fertilizer prices as a result of farmers
gearing up to plant their largest corn crop in 60 years to meet demand from the
ethanol industry. When we began building our position last October, both our
Valuation and Earnings Forecast Models showed the stock to be a bargain; since
its price rose, the Valuation Model has reverted to a near-neutral outlook, but
the Earnings Forecast Model continues to find its earnings prospects attractive.
In addition, strong stock selection within the
Laudus Trust Annual Report 5
Management's Discussion continued
Financial sector also contributed, notably by avoiding stocks affected by the
sub-prime lending collapse.
Among industries, the Fund's consistent overweight to Basic Materials & Metals
throughout the year was the strongest contributor to performance; it was the
strongest-performing industry for the year. The Fund's overweight to Retail also
contributed strongly, as small-cap retailers generally performed well, as did an
overweight to the strongly performing Textiles and Apparel industry. Although
exhibiting some volatility throughout the year, a substantial overexposure to
Insurance companies also contributed to Fund performance, as our models found
them attractive; as of the close of the fiscal year, the Fund's overweight in
Insurance represented its largest industry overweight.
However, in a year in which most industries in the benchmark's universe posted
positive returns, it is not surprising that the primary industry detractors from
performance came from underweight positions in positively performing industries,
and such positions for the most part overshadowed the gains of the Fund's
overweight positions. First among them was the Fund's substantial underexposure
to REITs; although the impact has moderated recently, for the year, REITs
generally performed well, and the underweight position hurt the Fund. An
underexposure to Drugs & Pharmaceuticals also dragged on performance. Although
the Fund's substantial underweight to Banks & Credit Institutions worked in its
favor more recently as it protected the portfolio in large part from the fallout
of the sub-prime lending collapse, over the one-year period, the industry posted
a positive return, so its exposure detracted from performance. And although
underexposed to Construction & Homebuilding, the year's poorest performer as
demand weakened and inventories rose, the position dampened Fund performance.
Underexposure to double-digit gainers Cars & Trucks and Construction Materials
also detracted.
Among risk factors, while over- and underweightings have not measurably changed
during the year, the impact of the Fund's exposures to those risk factors varied
substantially. For instance, the Fund's higher exposure to traditional value
factors compared to the benchmark -- such as Book-to-Price and Earnings-to-Price
measures -- represented its strongest risk factor contributors for the year. For
the year, the Fund's underweight to trading activity also contributed, as did
its overweight to earnings variation as the market rewarded companies with more-
consistent earnings. Detracting somewhat, but not nearly enough to overcome the
positive risk factor contributors, were the portfolio's heavy overweighting to
relative strength, a measure of recent price performance. A slight underexposure
to yield, which was rewarded by the market as investors sought predictability,
also detracted from performance.
INTERNATIONAL EQUITY MARKET OVERVIEW
The past four quarters witnessed strong market performance for international
equities. In spite of market weakness in the second quarter of 2006 and the
first quarter of 2007, international markets posted solid returns over the past
twelve months. Robust corporate earnings, a record level of global merger &
acquisition (M&A) activity, firm global economic growth, along with abundant
financial liquidity, all helped propel global markets to multi-year highs.
Global markets began the second quarter of 2006 strongly but were sent tumbling
in May and June and later in February 2007 only to have markets rebound
strongly. Over the past year, a wave of global liquidity has spurred global
markets higher, supported by a record period of global M&A deals. Markets
shrugged off rising interest rates in Europe and Japan and focused on relatively
stable energy prices and continued corporate profit growth. Many commodities,
after a multi-year run of price appreciation, retreated from record high levels
as supply increased and growth in demand moderated. The dollar was weaker
against most major currencies over the past twelve months as monetary tightening
in Japan, India, China, United Kingdom, and in Europe has made the dollar a less
appealing currency relative to higher yielding peers.
After a pullback in the second quarter of 2006, markets regained their footing
and pushed ahead to post multi-year highs as the year came to a close. As the
first quarter in 2007 unfolded, a deteriorating U.S. housing market and weakness
in the sub-prime lending business caused angst for global investors, but markets
recovered as the first quarter of 2007 ended.
The European Central Bank increased interest rates, but in spite of higher
rates, European markets posted strong gains. Helping markets push higher was the
record level of announced M&A deals in Europe. Over the course of the year the
dollar continued to weaken against the Euro.
6 Laudus Trust Annual Report
Management's Discussion continued
Business confidence levels of the EU economies have continued to improve as the
year progressed. European markets were helped by the Fed's decision to leave
rates unchanged in August which translated into significant yield declines in
bond markets on both sides of the Atlantic.
Japan has begun to show improved economic growth and the Bank of Japan (BOJ)
increased interest rates for the first time since 2000. A new government took
power this year under Prime Minister Abe. The major story of the year was the
BOJ announcing it will terminate its five-year-old "quantitative easing policy".
Japanese markets were impacted by the perception that potentially overly tight
monetary policy would lead to weakening domestic export prospects and negatively
impact the domestic economic recovery.
Asia Pacific equity markets posted solid returns over the past twelve months.
China passed Great Britain to become the world's fourth largest economy.
Australia's predominately materials-focused economy benefited from the continued
global demand for raw materials. There were some difficulties in Asia as the
Shanghai market pulled back in late February 2007 which caused considerable
global market turbulence and put into question how long the global market rally
would continue.
INTERNATIONAL EQUITY FUNDS PERFORMANCE
TOTAL RETURNS are for the year ended 3/31/07 unless indicated otherwise. For
performance details, see pages 18 through 23.
<Table>
<Caption>
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND(1)
- -------------------------------------------------
REQIX RIEIX MSCI-EAFE
Institutional shares Investor shares Index
18.37% 18.08% 20.69%
</Table>
<Table>
<Caption>
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND(1,2,*)
- ----------------------------------------------------
S&P/Citigroup
Global ex
US Broad
Market
Index (BMI)
$2-$10
LIDSX LIDIX Billion
Institutional shares Investor shares Cap Range
21.90% 21.62% 22.73%
</Table>
<Table>
<Caption>
LAUDUS ROSENBERG INTERNATIONAL
SMALL CAPITALIZATION FUND(1,2)
(Closed)
- ----------------------------------------------------
S&P/Citigroup
World ex US
Extended
ICSIX RISIX Market Index
Institutional shares Investor shares (EMI)
20.82% 20.35% 23.14%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Total returns include change in share price and reinvestment of distributions.
Total returns reflect the waiver of a portion of a Fund's advisory or
administrative fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total return would have been lower.
Investors cannot invest directly in any index.
* Performance is for the period May 31, 2006 (inception date) through March 31,
2007 (Not annualized).
(1) There are risks associated with investing in foreign companies, such as
erratic market conditions, economic and political instability and
fluctuations in currency exchange rates. Investing in emerging markets
accentuates these risks.
(2) Small capitalization funds typically carry additional risks since smaller
companies generally have experienced a greater degree of market volatility.
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND For its fiscal year ended 3/31/07,
the Fund posted a strong positive return but underperformed its benchmark, the
MSCI EAFE(R) Index: the Fund's Investor Shares gained 18.08% for the one-year
period versus the benchmark's gain of 20.69%. Stock selection detracted from
performance for the year. Industry allocation also detracted. Exposure to risk
factors made a positive contribution; as is typical for this Fund, regional
allocation had little net effect.
In general, although many of the Fund's overweight positions contributed to
performance, it was the Fund's underweight positions that hurt performance most.
Among industries, the Fund's consistent overweight to Basic Materials & Metals
was the strongest contributor to performance. An overweight to Insurance was the
Fund's second-largest industry contributor, whose position in the portfolio was
driven by our valuation model. An overweight to Chemicals & Rubber also
contributed, another of the stronger industry performers for the period.
Overweights in Miscellaneous Finance; Photo-optical, Microcomputers & Office
Machines; and Cars & Trucks were also notable positive contributors to Fund
performance.
Laudus Trust Annual Report 7
Management's Discussion continued
But the drag from the Fund's industry underexposures overshadowed the positives.
An underweight to Electric Utilities, a strong performer as a result of
deregulation in Europe and strong ongoing M&A activity, posting a one-year
return that exceeded that of Basic Minerals & Metals, was the largest industry
drag on Fund performance. Underweights to Retail and Real Estate Development,
also strong performers, also detracted. Although Construction & Homebuilding was
weak domestically for the year, internationally the industry held up well, and
an underexposure there also hurt the Fund, as did an underexposure to Land &
Water Transportation.
Risk factors that made the greatest contribution to Fund performance were
overweights to Book-to-Price and Earnings-to-Price measures -- traditional value
factors that are reflective of the Fund's value orientation. Over the one-year
period, value generally outperformed growth in international markets; although
the Fund's overexposure in those areas was not extreme, the market rewarded
those factors for the period. Detracting was the Fund's slightly higher exposure
to volatility (beta) than the benchmark during a period where the market
rewarded lower volatility.
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND For the ten-month period since its
inception through 3/31/07, the Fund posted a positive return but underperformed
its benchmark, the S&P/Citigroup Global ex U.S. Broad Market Index $2 - $10
Billion Cap Range. The Fund's Investor Shares gained 21.62% versus the
benchmark's gain of 22.73% for the same period. While exposure to risk factors
and industry allocation contributed somewhat, and stock selection had a small
positive contribution, as is expected for this Fund, regional exposure had
little net effect.
Among risk factor exposures, the Fund's greatest contributors to performance
were overweights to Book-to-Price and Earnings-to-Price measures -- traditional
value factors that are reflective of the Fund's value orientation; over the
period, value generally outperformed growth in international markets. Although
small, the Fund's underexposure to relative strength, a growth indicator and
strongest factor return for the period by a large measure, also contributed.
Detracting most was the Fund's exposure to somewhat smaller-sized companies than
the benchmark, as well as a slightly higher exposure to volatility (beta) during
a period in which the market rewarded lower volatility.
In general, the Fund's overweight positions contributed most to performance,
although many of the Fund's underweight positions detracted. Among industries,
the Fund's consistent overweight to Basic Materials & Metals throughout the year
was the strongest contributor to performance. An overweight to Restaurants,
Hotels & Theaters was the Fund's second-largest industry contributor, followed
by overweights to Airlines; Communications Utilities; Beer, Liquor & Tobacco;
and Government Aircraft & Defense, all very strong performers for the period.
The largest industry drags on performance were almost entirely attributable to
underweight exposures compared to the benchmark, led by an underexposure to Real
Estate Development, the strongest-performing industry for the year. Although
Construction & Homebuilding was weak domestically for the year, internationally
the industry held up well, and an underexposure there hurt the Fund and was the
largest industry detractor from performance for the period. Underweights to
Retail; Publishing, Broadcasting & Cinema; Land & Water Transportation;
Information Services; and Construction Materials were the largest detractors
from performance on an industry basis.
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND For its fiscal year
ended 3/31/07, the Fund posted a strong positive return but underperformed its
benchmark, the S&P/Citigroup World ex U.S. Extended Market Index: the Fund's
Investor Shares gained 20.35% versus the benchmark's gain of 23.14%. Exposures
to risk factors contributed positively; industry allocation also contributed,
although to a lesser degree. As is typical for this Fund, regional exposure had
little net effect. Stock selection was the greatest overall detractor.
Stock selection dampened performance across holdings in REITs and Miscellaneous
Financials (broker/dealers, exchanges and asset managers). For example, one
stock that the portfolio did not hold -- Deutsche Bouerse -- performed strongly
on activity in publicly traded exchanges. And individual holdings among British
Energy companies declined as problems relating to power-generation plants
negatively impacted their earnings; an example is British Land Company, which
detracted from performance.
Some individual stock positions did, however, contribute measurably. In the
Materials sector, the Fund's persistent overweight, along with strong stock
selection, represents
8 Laudus Trust Annual Report
Management's Discussion continued
some of the Fund's most notable successes; holdings in Austrian steel/metals
producers Bohler-Uddeholm AG and Voestalpine AG both were positive contributors.
Metal product manufacturers in Europe performed strongly, where stock selection
was rewarded across a large number of holdings. Defense-related and airline
picks were also strong; Spanish airline Iberia Lineas and Air France KLM
contributed modestly. A long-term holding of French tire-maker Michelin also
contributed.
Among risk factor exposures, the Fund's greatest contributors to performance
were overweights to Book-to-Price and Earnings-to-Price measures -- traditional
value factors that are reflective of the Fund's value orientation. Over the
one-year period, value generally outperformed growth in international markets.
An underexposure to higher-growth companies than the benchmark also added value.
Detracting from performance was the Fund's slightly higher exposure to
volatility (beta) than the benchmark during a period in which the market
rewarded lower volatility.
Among industries, in general, it was the Fund's overweight exposures that
contributed most to performance, although many of the Fund's underweight
positions detracted. The Fund's consistent overweight to Basic Materials &
Metals throughout the year was the strongest contributor to performance. An
overweight to Restaurants, Hotels & Theaters was the Fund's second-largest
industry contributor, followed by an overweight to Insurance, whose position in
the portfolio was driven by our valuation model. Also contributing were
overweights in Government Aircraft & Defense; Airlines; Beer, Liquor & Tobacco;
Cars & Trucks; and Miscellaneous Finance, all very strong performers for the
period.
The largest industry drags on performance were almost entirely attributable to
underweight exposures compared to the benchmark. Although Construction &
Homebuilding was weak domestically for the year, internationally the industry
held up well, so an underexposure there hurt the Fund and was the largest
industry detractor from performance for the period. Underweights to Information
Services; Real Estate Development; Publishing, Broadcasting & Cinema; Retail;
and Gas & Other Public Utilities all dragged on Fund performance for the year.
The only overweight position that notably dragged on performance was in
Construction Materials. An underweight to Electric Utilities -- a strong
performer as a result of deregulation in Europe and strong ongoing M&A
activity -- also detracted.
LONG/SHORT EQUITY FUNDS PERFORMANCE
While the reward to earnings is the biggest driver of our relative performance
over time, our portfolios have exposures to risk characteristics and industries
that will also have an impact on performance. These active exposures are a
by-product of trading off the return opportunities identified by our stock
selection models with the risk of deviating on these dimensions between the Long
and Short sides of the portfolios.
TOTAL RETURNS are for the year ended 3/31/07. For performance details, see pages
24 through 29.
<Table>
<Caption>
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION
LONG/SHORT EQUITY FUND(1)
- -------------------------------------------------
SSMNX RMNIX 90-Day
T-Bills
Institutional shares Investor shares
4.98% 4.68% 5.24%
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY
FUND(1,2)
- -------------------------------------------------
MSMNX RMSIX 90-Day
T-Bills
Institutional shares Investor shares
1.77% 1.45% 5.24%
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY
FUND(3,4)
- -------------------------------------------------
BMNIX BRMIX 90-Day
T-Bills
Institutional shares Investor shares
3.19% 2.81% 5.24%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Total returns include change in share price and reinvestment of distributions.
Total returns reflect the waiver of a portion of a Fund's advisory or
administrative fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total return would have been lower.
Investments in long/short funds are more volatile and risky than some other
forms of investments. Since they have both long and short portfolios, an
investment will involve risks associated with twice the number of investment
decisions made for a typical stock fund. These types of funds typically have a
high portfolio turnover that could increase transaction costs and cause short-
term capital gains to be realized. While it may be the intent of the
Laudus Trust Annual Report 9
Management's Discussion continued
Manager to take long positions in stocks that outperform the market and short
positions in stocks that underperform the market, there is no assurance that the
Manager will be successful.
The Fund may sell a security short by borrowing it from a third party and
selling it at the then-current market price. The Fund is obligated to buy the
security on a later date so it can return the security to the lender. Short
sales involve the risk that the Fund will incur a loss by subsequently buying a
security at a higher price than the price at which the Fund previously sold the
security short. Moreover, because the Fund's loss on a short sale arises from
increases in the value of the security sold short, the extent of such loss is
theoretically unlimited.
Since risk in long/short funds relates specifically to the Manager's stock
selection techniques and not to any systematic or economy-wide factors, the
proper benchmark is an asset that also has the least exposure to systematic
influences. 90-day T-bills are such an asset. The full faith and credit of the
U.S. government back an investment in 90-day T-bills. T-bills have a fixed rate
of return, and investors do not bear the risk of losing their investment. The
income received from T-bills is free from state income tax.
(1) Mid capitalization stocks typically carry additional risk, since smaller
companies generally have higher risk of failure and, historically, their
stocks have experienced a greater degree of volatility.
(2) There are risks associated with investing in foreign companies, such as
erratic market conditions, economic and political instability and
fluctuations in currency exchange rates.
(3) Value-based investments are subject to the risk that the broad market may
not recognize their value.
(4) Small- and mid-capitalization funds typically carry additional risk since
small- and mid-capitalization companies generally have a higher risk of
failure.
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND For its
fiscal year ended 3/31/07, the Fund posted a positive return but underperformed
its benchmark, 90-day T-bills: the Fund's Investor Shares gained 4.68% versus
the benchmark's gain of 5.24% over the same period. Residual stock selection and
exposures to risk factors contributed positively, while industry allocation
detracted slightly from performance.
Among industries, contributing net long positions were generally offset by
detracting net short positions, with the net result a small drag on overall Fund
performance. The Fund's long-only exposure to Integrated Oil Companies
represented its strongest industry contributor; although volatile over the
period, the industry posted a strong double-digit gain. A net long exposure to
Miscellaneous Finance, which includes brokers and capital markets, was the
second-largest industry contributor. A net long position in Basic Minerals &
Metals also contributed notably. A net long exposure to Cellular/Wireless also
contributed, as did net long exposures to Commercial Aircraft & Components
(long-only), Banks & Credit Institutions, and Insurance. The only net short
position that contributed notably was in IT Hardware, one of the few negatively
performing industries over the reporting period. A substantially net short
exposure to Construction & Homebuilding, the year's worst performer protected
the Fund from the fallout of declining home prices and rising inventories,
resulting in a modest contribution.
On the other hand, however, detractors at the industry level overshadowed
contributors -- nearly all coming from net short exposures. The largest
detractor was the Fund's net short exposure to REITs. The Fund's valuation model
has continued to indicate that the industry is overvalued; however, the industry
continued to post strong returns for the report period. Net short exposures to
Instruments; Software; Soaps & Cosmetics; and Drugs & Pharmaceuticals also
worked against it for the year as all posted strong positive returns. A modest
net long exposure to Land & Water Transportation, along with a substantial one
to Oil Drilling and Services, both worked against the Fund.
Among individual holdings, although each has a relatively small impact on
overall Fund performance, a long position in Countrywide Financial dragged on
the Fund as the company suffered from the fallout of the sub-prime lending
collapse. A long holding in credit-card giant Capital One Financial also
detracted, as it was caught in the maelstrom due to concerns that the
deterioration would spread to auto lending and credit cards -- two large
components of Capital One's managed loan portfolio. On the other hand, long
positions in AT&T and Apple contributed notably on the backs of improved profits
and strong overall performance.
The Fund is managed for long-term performance and seeks to outperform its
benchmark through various market conditions as a result of superior stock
picking. Consistent with the Fund's underlying model, it seeks to capitalize on
stocks with both long-term earnings and those with accelerating near-term
earnings growth.
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND For its fiscal year ended
3/31/07, the Fund posted a positive return but underperformed its benchmark,
90-day T-bills: the Fund's Investor shares gained 1.45% versus the benchmark's
gain of 5.24%. While the Fund's exposure to risk factors provided a positive
contribution, it was offset by a combination of weak industry allocation
10 Laudus Trust Annual Report
Management's Discussion continued
and stock selection. As is expected for this Fund, regional allocation had no
effect. Although many of the long positions made notable contributions, in a
year in which internationally virtually every industry posted a positive return,
it was understandably difficult to perform in short positions.
For the entire year, the Fund's net long exposure to relative strength, a
measure of price momentum relative to the market, was the largest contributor to
performance. And although in the most-recent quarter it appeared that value had
finally relinquished its stronghold over growth, for the year, value
characteristics added value. Therefore, the Fund's higher exposures to
traditional value factors compared to the benchmark -- such Book-to-Price and
Earnings-to-Price measures -- contributed strongly over the reporting period.
And while it added value for the most-recent quarter, a net long exposure to
earnings variation -- a measure of the variability of historical
earnings -- detracted for the year. Also detracting were the Fund's net long
exposures to volatility (beta) and trading activity than the benchmark during a
period where the market rewarded lower volatility.
Among industries, a net long exposure to Basic Minerals and Metals was the
strongest contributor to Fund performance for the year. A substantial net long
exposure to Miscellaneous Finance also contributed, as did net longs in Cellular
& Wireless; Photo-optical, Microcomputers & Office Machines; Chemicals & Rubber;
Government Aircraft & Defense; Beer, Liquor & Tobacco; Integrated Oil Companies;
Communications Utilities; and Insurance, all of which posted strong positive
returns for the one-year period.
Overshadowing the contribution of the Fund's net long positions, however, was a
longer and deeper list of net shorts, which, due to the strength of so many
industries over the period, dragged down Fund performance. The largest industry
detractor was the Fund's net short exposure to Construction & Homebuilding as
despite the downturn in the U.S. housing market and its residual fallout, the
industry continued to hold up well outside the U.S. Continued net short
exposures to Retail, Cars & Trucks, Information Services, Instruments, Real
Estate Development and Financial Investments also dampened performance, along
with a number of other net short exposures. The Fund largely avoided exposure to
the sub-prime lending collapse and its resultant fallout in the U.S., although a
position in Countrywide Financial did drag on Fund performance.
Among individual stocks, one of the strongest contributors for the period was
the portfolio's net long position in Nippon Steel. The stock rose due to an
earnings increase, improving economic conditions in Japan and strong worldwide
demand for high-grade steel. On the other hand, one of the notable detractors
for the period was a long position in Moody's; despite a booming market in the
issuance of corporate debt, the company suffered due to questions raised by its
inability to have identified factors leading to failing sub-prime lenders, as
well as the housing slowdown.
The Fund is managed for long-term performance and seeks to outperform its
benchmark through various market conditions as a result of superior stock
picking. Consistent with the Fund's underlying model, it seeks to capitalize on
stocks with both long-term earnings and those with accelerating near-term
earnings growth.
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND For its fiscal year ended 3/31/07,
the Fund posted a positive return but underperformed its benchmark, 90-day
T-bills: the Fund's Investor Shares gained 2.81% versus the benchmark's gain of
5.24%. Exposures to risk factors contributed strongly to the Fund's performance;
however, stock selection detracted. Industry exposures contributed only
modestly.
Several individual holdings did provide notable contributions to Fund
performance. Among them were long positions in Allegheny Technologies, a
specialist in industrial metals, and steel manufacturer U.S. Steel -- both of
which saw robust performance over the period as a result of strong global
demand.
Contributions attributable to risk-factor exposures varied greatly throughout
the year, rotating from quarter to quarter. For instance, the Fund's
consistently net long exposure to traditional value factors -- such as Earnings-
to-Price and Book-to-Price, indicative of the Fund's value orientation -- were
its greatest contributors for the one-year period. A net long exposure to
earnings variation also contributed, as the market rewarded stocks with
more-consistent earnings. A net short exposure to stocks with high trading
activity also added value, as did the Fund's net short exposure to leverage.
Detracting somewhat, but not nearly enough to overcome the positive risk
factors, were the portfolio's heavy net long exposure to relative strength, a
measure of recent price perform-
Laudus Trust Annual Report 11
Management's Discussion continued
ance. High-relative-strength stocks tend to have better-than-average near-term
earnings growth, but the market did not reward this factor for the reporting
period. A slight net long exposure to growth characteristics, as our valuation
model indicated that growth was well-priced, also detracted as the market failed
to reward that factor as well.
Among industries, the Fund's substantial net long exposure to Basic Minerals &
Metals, the year's second-strongest-performing industry, was the Fund's largest
industry contributor to performance. A substantial net long exposure to
Insurance also contributed notably, as did a net long exposure to Chemicals &
Rubber, another strong performer for the year. Mitigating the positives to some
degree was the Fund's net short exposure to Communications Utilities, which
posted the strongest return among industries for the year. The next-largest drag
on performance came from the Fund's net short exposure to REITs; although its
impact has moderated recently, for the year REITs generally performed well, and
the position hurt the Fund. Underexposures to Publishing, Broadcasting & Cinema
and to Restaurants, Hotels & Theaters also dampened Fund performance. And
although detracting somewhat, the Fund's net short exposure to Construction &
Homebuilding, the worst-performing industry for the period protected the Fund
from further industry fallout.
The Fund is managed for long-term performance and seeks to outperform its
benchmark through various market conditions as a result of superior stock
picking. Consistent with the Fund's underlying model, it seeks to capitalize on
stocks with both long-term earnings and those with accelerating near-term
earnings growth.
12 Laudus Trust Annual Report
Performance and Fund Facts
Laudus Rosenberg U.S. Large Capitalization Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES RUSSELL 1000(R) INDEX*
-------------------- ----------------------
6/19/02 50000 50000
3/03 41610 41585
3/04 55063 56714
3/05 60382 60820
3/06 69378 68848
3/07 77079 76999
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES RUSSELL 1000(R) INDEX*
--------------- ----------------------
7/31/02 10000 10000
3/03 9358 9419
3/04 12342 12845
3/05 13480 13775
3/06 15444 15593
3/07 17095 17439
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 3 YEAR INSTITUTIONAL INVESTOR
Institutional (6/19/02) 11.10% 11.87% 9.47% n/a
Investor (7/31/02) 10.69% 11.47% n/a 12.17%
Russell 1000 Index* 11.84% 10.73% 9.44% 12.66%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Investors cannot invest directly in any index.
* The Russell 1000(R) Index measures the performance of the 1,000 largest
companies in the Russell 3000(R) Index, and represents approximately 92% of
the total market capitalization of the Russell 3000(R) Index.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ----------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 6/19/02 7/31/02
Total Net Assets ($ x 1,000) $94,921 $10,074
Ticker Symbol AXLIX AXLVX
Cusip 51855Q101 51855Q853
NAV $13.21 $13.21
Net Expense Ratio(3) 0.99% 1.29%
Gross Expense Ratio(4) 1.14% 1.52%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 187
Avg. Market Capitalization 89,121
($Wtd. x 1,000,000)
Portfolio Turnover (One year trailing) 144%
Price to Earnings (P/E) 14.72
Price to Book (P/B) 2.60
Price to Cash Flow 11.48
Beta 1.18
Return on Equity 20.33%
Five-Year Earnings Growth 24.84%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- ---------------------------------------------------------
Exxon Mobil Corp. 4.4%
AT&T Corp. 3.8%
Bank of America Corp. 3.7%
Cisco Systems, Inc. 2.8%
International Business Machines Corp. 2.8%
Wachovia Corp. 2.3%
Oracle Corp. 2.0%
Hewlett-Packard Co. 2.0%
The Walt Disney Co. 2.0%
McDonald's Corp. 1.9%
TOTAL 27.7%
</Table>
PORTFOLIO COMPOSITION(2) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Financials 21.5
Consumer Discretionary 15.9
Information Technology 15.0
Industrials 10.4
Energy 8.6
Health Care 7.6
Consumer Staples 7.2
Telecommunication Services 4.9
Materials 4.8
Utilities 4.1
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Adviser expects to hold expenses at this level by
waiving its management fee and/or bearing other expenses. Please see the
prospectus for more information.
(4) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
Laudus Trust Annual Report 13
Performance and Fund Facts
Laudus Rosenberg U.S. Large Capitalization Growth Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES RUSSELL 1000(R) GROWTH INDEX*
-------------------- -----------------------------
6/7/00 50000 50000
3/01 38645 31665
3/02 39298 31032
3/03 30385 22725
3/04 40364 30040
3/05 41744 30391
3/06 47943 34384
3/07 50638 36812
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES RUSSELL 1000(R) GROWTH INDEX*
--------------- -----------------------------
8/15/03 10000 10000
3/04 11450 11284
3/05 11810 11415
3/06 13520 12915
3/07 14244 13827
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR
Institutional (6/7/00) 5.62% 5.20% 0.19% n/a
Investor (8/15/03) 5.36% n/a n/a 10.24%
Russell 1000 Growth Index* 7.06% 3.47% -4.39% 9.35%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Investors cannot invest directly in any index.
* The Russell 1000 Growth(R) Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted growth
values.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ----------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 6/7/00 8/15/03
Total Net Assets ($ x 1,000) $75,481 $2,242
Ticker Symbol REDIX REFIX
Cusip 51855Q200 51855Q846
NAV $9.76 $9.83
Net Expense Ratio(3) 0.99% 1.29%
Gross Expense Ratio(4) 1.34% 1.91%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 341
Avg. Market Capitalization ($Wtd. x 1,000,000) 66,533
Portfolio Turnover (One year trailing) 71%
Price to Earnings (P/E) 19.65
Price to Book (P/B) 4.78
Price to Cash Flow 14.67
Beta 1.15
Return on Equity 29.96%
Five-Year Earnings Growth 24.40%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- ---------------------------------------------------------
Microsoft Corp. 2.8%
Cisco Systems, Inc. 2.7%
International Business Machines Corp. 2.2%
General Electric Co. 2.0%
Johnson & Johnson 1.7%
Google, Inc., Class A 1.6%
Apple, Inc. 1.2%
Wal-Mart Stores, Inc. 1.2%
Oracle Corp. 1.2%
Intel Corp. 1.2%
TOTAL 17.8%
</Table>
PORTFOLIO COMPOSITION(2) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Information Technology 23.1
Industrials 16.5
Consumer Discretionary 14.4
Health Care 12.3
Consumer Staples 11.2
Financials 10.3
Materials 5.4
Energy 4.4
Utilities 1.5
Telecommunication Services 0.9
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Adviser expects to hold expenses at this level by
waiving its management fee and/or bearing other expenses. Please see the
prospectus for more information.
(4) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
14 Laudus Trust Annual Report
Performance and Fund Facts
Laudus Rosenberg U.S. Large Capitalization Value Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES RUSSELL 1000(R) VALUE INDEX*
-------------------- ----------------------------
5/2/05 50000 50000
3/06 59915 57425
3/07 67520 67090
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES RUSSELL 1000(R) VALUE INDEX*
--------------- ----------------------------
5/2/05 10000 10000
3/06 11933 11485
3/07 13538 13418
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR INSTITUTIONAL INVESTOR
Institutional (5/02/05) 13.55%** 17.39% n/a
Investor (5/02/05) 13.22% n/a 17.01%
Russell 1000 Value Index* 16.83% 16.61% 16.61%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Value-based investments are subject to the risk that the broad market may not
recognize their value.
Investors cannot invest directly in any index.
* The Russell 1000 Value(R) Index measures the performance of those Russell 1000
companies with lower valuation ratios such as price-to-book and
price-to-earnings ratios.
** One year returns presented in the table differs from the return presented in
the Financial Highlights. This is a result of the calculation of the
Financial Highlights return adhering to GAAP presentation.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ----------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 5/2/05 5/2/05
Total Net Assets ($ x 1,000) $6,058 $540
Ticker Symbol LLCVX LCVJX
Cusip 51855Q713 51855Q721
NAV $12.74 $12.70
Net Expense Ratio(3) 0.99% 1.29%
Gross Expense Ratio(4) 2.41% 2.78%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 121
Avg. Market Capitalization ($Wtd. x 1,000,000) 101,956
Portfolio Turnover (One year trailing) 108%
Price to Earnings (P/E) 12.53
Price to Book (P/B) 2.04
Price to Cash Flow 8.26
Beta 1.23
Return on Equity 18.42%
Five-Year Earnings Growth 26.99%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- ---------------------------------------------------------
AT & T Corp. 4.5%
Bank of America Corp. 4.5%
Exxon Mobil Corp. 4.1%
Pfizer, Inc. 4.1%
Citigroup, Inc. 3.2%
ConocoPhillips 3.1%
Verizon Communications, Inc. 2.9%
JPMorgan Chase & Co. 2.3%
McDonald's Corp. 2.1%
Merrill Lynch & Co., Inc. 2.0%
TOTAL 32.8%
</Table>
PORTFOLIO COMPOSITION(2) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Financials 31.6
Energy 14.3
Consumer Discretionary 11.2
Telecommunication Services 8.4
Industrials 7.8
Utilities 7.4
Materials 5.8
Consumer Staples 4.7
Health Care 4.7
Information Technology 4.1
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Adviser expects to hold expenses at this level by
waiving its management fee and/or bearing other expenses. Please see the
prospectus for more information.
(4) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
Laudus Trust Annual Report 15
Performance and Fund Facts
Laudus Rosenberg U.S. Discovery Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ----------------------------------------
<Table>
<Caption>
INSTITUTIONAL SHARES RUSSELL 2500(TM) INDEX*
-------------------- -----------------------
9/4/2001 50000 50000
3/02 55625 54310
3/03 47932 41276
3/04 74726 66301
3/05 82184 71744
3/06 100922 88999
3/07 106686 96323
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ----------------------------------------
<Table>
<Caption>
INVESTOR SHARES RUSSELL 2500(TM) INDEX*
--------------- -----------------------
10/3/01 10000 10000
3/02 11834 12175
3/03 10178 9253
3/04 15799 14864
3/05 17331 16085
3/06 21214 19953
3/07 22346 21595
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR
Institutional (9/4/01) 5.71% 13.91% 14.57% n/a
Investor (10/3/01) 5.34% 13.56% n/a 15.76%
Russell 2500(TM) Index* 8.23% 12.15% 12.49% 15.04%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Small and mid-capitalization funds typically carry additional risks since
smaller companies generally have experienced a greater degree of market
volatility.
Investors cannot invest directly in any index.
* The Russell 2500(R) Index measures the performance of the 2,500 smallest
companies in the Russell 3000(R) Index, and represents approximately 16% of
the total market capitalization of the Russell 3000(R) Index.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- -------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 9/4/01 10/3/01
Total Net Assets ($ x 1,000) $718,185 $217,045
Ticker Symbol RDISX RDIVX
Cusip 51855Q309 51855Q838
NAV $19.80 $19.59
Gross Expense Ratio(3) 1.09% 1.43%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 779
Avg. Market Capitalization ($Wtd. x 1,000,000) $2,670
Portfolio Turnover (One year trailing) 86%
Price to Earnings (P/E) 16.72
Price to Book (P/B) 2.06
Price to Cash Flow 12.52
Beta 1.27
Return on Equity 13.71%
Five-Year Earnings Growth 30.30%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- --------------------------------------------------------
BMC Software, Inc. 1.8%
Avnet, Inc. 1.6%
A.G. Edwards, Inc. 1.5%
Emdeon Corp. 1.2%
Tidewater, Inc. 1.1%
Big Lots, Inc. 1.1%
LSI Logic Corp. 1.1%
Northeast Utilities 1.1%
MDU Resources Group, Inc. 1.0%
FMC Corp. 1.0%
TOTAL 12.5%
</Table>
PORTFOLIO COMPOSITION(2) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Financials 21.8
Information Technology 16.4
Consumer Discretionary 14.9
Industrials 13.3
Materials 8.3
Health Care 7.5
Utilities 6.7
Energy 4.8
Consumer Staples 4.1
Telecommunication Services 2.2
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
16 Laudus Trust Annual Report
Performance and Fund Facts
Laudus Rosenberg U.S. Small Capitalization Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ----------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES RUSSELL 2000(R) INDEX*
-------------------- ----------------------
3/97 59765 52555
3/98 86629 74633
3/99 68818 62498
3/00 90400 85803
3/01 89261 72650
3/02 110612 82806
3/03 91697 60482
3/04 143809 99087
3/05 157269 104448
3/06 187874 131447
3/07 189955 139216
</Table>
PERFORMANCE OF A HYPOTHETICAL
$100,000 INVESTMENT IN ADVISER SHARES(1)
- ----------------------------------------
(LINE GRAPH)
<Table>
<Caption>
ADVISER SHARES RUSSELL 2000(R) INDEX*
-------------- ----------------------
3/97 96748 91790
3/98 139800 130351
3/99 110858 109156
3/00 145228 149860
3/01 143148 126887
3/02 176951 144625
3/03 146245 105620
3/04 228919 173037
3/05 249788 182398
3/06 297473 229548
3/07 300149 243115
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ----------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES RUSSELL 2000(R) INDEX*
--------------- ----------------------
3/97 10684 9988
3/98 15430 14184
3/99 12229 11878
3/00 16027 16307
3/01 15783 13807
3/02 19493 15737
3/03 16098 11493
3/04 25177 18829
3/05 27443 19847
3/06 32652 24978
3/07 32898 26454
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR 10 YEAR INSTITUTIONAL INVESTOR ADVISER
Institutional (2/22/89) 1.11% 11.42% 12.26% 13.83% n/a n/a
Adviser (1/21/97) 0.90% 11.15% 11.99% n/a n/a 11.39%
Investor (10/22/96) 0.75% 11.03% 11.90% n/a 12.08% n/a
Russell 2000(R) Index* 5.91% 10.95% 10.23% 11.08% 9.76% 9.11%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Small capitalization funds typically carry additional risks since smaller
companies generally have experienced a greater degree of market volatility.
Investors cannot invest directly in any index.
* The Russell 2000(R) Index measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, and represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Adviser Investor
FUND OVERVIEW(2) Shares Shares Shares
- --------------------------------------------------------------
Initial Investment $50,000 $100,000 $2,500
Inception Date 2/22/89 1/21/97 10/22/96
Total Net Assets ($ x $699,921 $48,923 $269,185
1,000)
Ticker Symbol USCIX LIFUX BRSCX
Cusip 51855Q408 51855Q739 51855Q820
NAV $12.57 $12.35 $12.22
Gross Expense 1.04% 1.32% 1.39%
Ratio(3)
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 660
Avg. Market Capitalization ($Wtd. x 1,000,000) 1,175
Portfolio Turnover (One year trailing) 76%
Price to Earnings (P/E) 19.08
Price to Book (P/B) 1.91
Price to Cash Flow 12.04
Beta 1.32
Return on Equity 10.85%
Five-Year Earnings Growth 29.68%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- --------------------------------------------------------
Delphi Financial Group, Inc., Class A 1.4%
Perot Systems Corp., Class A 1.3%
TeleTech Holdings, Inc. 1.2%
Brown Shoe Co., Inc. 1.2%
MPS Group, Inc. 1.2%
Knight Capital Group, Inc., Class A 1.1%
Regal Beloit Corp. 1.1%
Mentor Graphics Corp. 1.1%
Imation Corp. 1.0%
Woodward Governor Co. 1.0%
TOTAL 11.6%
</Table>
PORTFOLIO COMPOSITION(2) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Financials 21.7
Information Technology 18.1
Industrials 16.9
Consumer Discretionary 15.6
Health Care 8.3
Materials 6.4
Consumer Staples 4.6
Energy 3.8
Utilities 2.8
Telecommunication Services 1.8
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
Laudus Trust Annual Report 17
Performance and Fund Facts
Laudus Rosenberg International Equity Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES MSCI-EAFE(R) INDEX*
-------------------- -------------------
6/7/00 50000 50000
3/01 40750 38140
3/02 37343 35005
3/03 29628 26971
3/04 45571 42655
3/05 52115 49258
3/06 64550 61543
3/07 76408 74276
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES MSCI-EAFE(R) INDEX*
--------------- -------------------
12/5/00 10000 10000
3/01 9053 8684
3/02 8254 7970
3/03 6544 6141
3/04 10052 9712
3/05 11438 11215
3/06 14116 14013
3/07 16668 16912
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR
Institutional (6/7/00) 18.37% 15.39% 6.42% n/a
Investor (12/5/00) 18.08% 15.09% n/a 8.42%
MSCI-EAFE(R) Index* 20.69% 16.24% 5.98% 8.67%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
There are risks associated with investing in foreign companies, such as erratic
market conditions, economic and political instability and fluctuations in
currency exchange rates.
Investors cannot invest directly in any index.
* The Morgan Stanley Capital International Europe, Australasia, Far East
(MSCI-EAFE(R) Index) Index is a free float-adjusted market capitalization
index that is designed to measure market equity performance in 21 developed
market countries, excluding the U.S. and Canada.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 6/7/00 12/5/00
Total Net Assets ($ x 1,000) $68,398 $61,411
Ticker Symbol REQIX RIEIX
Cusip 51855Q507 51855Q812
NAV $13.58 $13.54
Net Expense Ratio(3) 1.34% 1.64%
Gross Expense Ratio(4) 1.96% 2.33%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 387
Avg. Market Capitalization ($Wtd. x 1,000,000) 58,632
Portfolio Turnover (One year trailing) 64%
Price to Earnings (P/E) 14.85
Price to Book (P/B) 1.92
Price to Cash Flow 9.08
Beta 1.02
Return on Equity 13.93%
Five-Year Earnings Growth 28.31%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- --------------------------------------------------------
Royal Bank of Scotland Group plc 1.9%
Royal Dutch Shell plc, Class A 1.7%
Banco Santander Central Hispano S.A. 1.6%
UBS AG -- Reg'd 1.6%
Telefonica S.A. 1.5%
DaimlerChrysler AG -- Reg'd 1.5%
Nestle S.A. -- Reg'd 1.4%
Deutsche Bank AG -- Reg'd 1.3%
Fortis 1.3%
Bayer AG 1.3%
TOTAL 15.1%
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Adviser expects to hold expenses at this level by
waiving its management fee and/or bearing other expenses. Please see the
prospectus for more information.
(4) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
18 Laudus Trust Annual Report
Performance and Fund Facts continued
Laudus Rosenberg International Equity Fund as of 3/31/07
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Financials 29.9
Consumer Discretionary 16.8
Materials 12.7
Industrials 8.3
Consumer Staples 7.8
Energy 6.5
Telecommunication Services 6.2
Health Care 4.7
Utilities 3.9
Information Technology 3.2
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
COUNTRY WEIGHTINGS
(PIE CHART)
<Table>
Japan 22.4
United Kingdom 22.0
France 10.8
Switzerland 7.6
Germany 7.4
Australia 5.8
Spain 4.7
Italy 3.8
Netherlands 3.8
Sweden 2.1
Hong Kong 1.9
Belgium 1.8
Other Countries 5.9
</Table>
(1) Portfolio holdings are subject to change and may not represent current or
future holdings.
Laudus Trust Annual Report 19
Performance and Fund Facts
Laudus Rosenberg International Discovery Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
S&P/CITIGROUP GLOBAL EX US
INSTITUTIONAL SHARES BMI $2-10 BILL CAP RANGE*
-------------------- --------------------------
5/31/06 50000 50000
3/31/2007 58966 59300
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
S&P/CITIGROUP GLOBAL EX US
INVESTOR SHARES BMI $2-10 BILL CAP RANGE*
--------------- --------------------------
5/31/06 10000 10000
3/31/2007 11771 11860
</Table>
TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR INSTITUTIONAL** INVESTOR**
Institutional (5/31/06) n/a 21.90% n/a
Investor (5/31/06) n/a n/a 21.62%
S&P/Citigroup Global ex US BMI $2-10 Bill Cap Range* n/a 22.73% 22.73%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
There are risks associated with investing in foreign companies, such as erratic
market conditions, economic and political instability and fluctuations in
currency exchange rates. Investing in emerging markets accentuates these risks.
Small capitalization funds typically carry additional risks since smaller
companies generally have experienced a greater degree of market volatility.
Investors cannot invest directly in any index.
* The S&P/Citigroup Global ex US Broad Market Index (BMI) $2 - $10 Bill Cap
Range includes companies in approximately 52 developed and emerging markets
with more than $100 million of free float capitalization.
** For the period from inception 5/31/06 through 3/31/07. Not annualized.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 5/31/06 5/31/06
Total Net Assets ($ x 1,000) $19,173 $51,572
Ticker Symbol LIDSX LIDIX
Cusip 51855Q689 51855Q697
NAV $12.05 $12.04
Net Expense Ratio(3) 1.34% 1.65%
Gross Expense Ratio(4) 1.34% 1.74%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 475
Avg. Market Capitalization ($Wtd. x 1,000,000) 6,902
Portfolio Turnover (One year trailing) 106%
Price to Earnings (P/E) 16.26
Price to Book (P/B) 1.83
Price to Cash Flow 8.72
Beta 1.01
Return on Equity 12.06%
Five-Year Earnings Growth 28.50%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- --------------------------------------------------------
Sumitomo Metal Mining Co., Ltd. 0.7%
Compagnie Generale des Etablissements Michelin, 0.7%
Class B
Suncorp-Metway Ltd. 0.7%
Kobe Steel Ltd. 0.7%
Cap Gemini S.A. 0.6%
Asahi Kasei Corp. 0.6%
Infineon Technologies AG 0.6%
Saputo, Inc. 0.6%
Konica Minolta Holdings, Inc. 0.6%
National Bank of Canada 0.6%
TOTAL 6.4%
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Adviser expects to hold expenses at this level by
waiving its management fee and/or bearing other expenses. Please see the
prospectus for more information.
(4) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
20 Laudus Trust Annual Report
Performance and Fund Facts continued
Laudus Rosenberg International Discovery Fund as of 3/31/07
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Financials 20.0
Materials 19.7
Consumer Discretionary 16.4
Industrials 14.8
Consumer Staples 8.0
Information Technology 6.4
Utilities 5.8
Telecommunication Services 4.3
Energy 3.2
Health Care 1.4
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
COUNTRY WEIGHTINGS
(PIE CHART)
<Table>
Japan 21.1
United Kingdom 12.0
France 6.4
Australia 5.6
Canada 5.3
Italy 3.8
Taiwan 3.4
Germany 3.3
Hong Kong 3.2
South Korea 3.0
Switzerland 2.4
South Africa 2.1
India 2.0
Brazil 1.9
Spain 1.8
China 1.8
Poland 1.7
Austria 1.6
Netherlands 1.6
Denmark 1.6
Other Countries 14.4
</Table>
(1) Portfolio holdings are subject to change and may not represent current or
future holdings.
Laudus Trust Annual Report 21
Performance and Fund Facts
Laudus Rosenberg International Small Capitalization Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
S&P/CITIGROUP WORLD EX US
INSTITUTIONAL SHARES EMI *
-------------------- -------------------------
9/23/96 50000 50000
3/97 50650 48865
3/98 51921 52862
3/99 47337 51308
3/00 62503 63735
3/01 55759 50051
3/02 53083 50061
3/03 50238 41766
3/04 89101 73646
3/05 112731 89914
3/06 147565 118642
3/07 178288 146095
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
S&P/CITIGROUP WORLD EX US
INVESTOR SHARES EMI*
--------------- -------------------------
10/29/96 10000 10000
3/97 10090 9791
3/98 10314 10592
3/99 9369 10281
3/00 12317 12770
3/01 10952 10029
3/02 10396 10031
3/03 9821 8369
3/04 17375 14756
3/05 21919 18016
3/06 28600 23772
3/07 34420 29273
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR 10 YEARS INSTITUTIONAL INVESTOR
Institutional (9/23/96) 20.82% 27.42% 13.41% 12.85% n/a
Investor (10/29/96) 20.35% 27.05% 13.06% n/a 12.59%
S&P/Citigroup World ex US EMI* 23.14% 23.89% 11.57% 10.73% 10.85%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
There are risks associated with investing in foreign companies, such as erratic
market conditions, economic and political instability and fluctuations in
currency exchange rates.
Small capitalization funds typically carry additional risks since smaller
companies generally have experienced a greater degree of market volatility.
Investors cannot invest directly in any index.
* S&P/Citigroup World ex US Extended Market Index (EMI) is a float-adjusted
index which measures the performance of small companies (approximately the
bottom 20% by market capitalization) in 25 developed equity markets.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 9/23/96 10/29/96
Total Net Assets ($ x 1,000) $1,048,829 $882,163
Ticker Symbol ICSIX RISIX
Cusip 51855Q606 51855Q796
NAV $22.67 $22.38
Gross Expense Ratio(3) 1.25% 1.60%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long
- --------------------------------------------------------
Number of Securities 1,119
Avg. Market Capitalization 4,344
($Wtd. x 1,000,000)
Portfolio Turnover 92%
(One year trailing)
Price to Earnings (P/E) 16.26
Price to Book (P/B) 1.64
Price to Cash Flow 8.79
Beta 1.04
Return on Equity 10.81%
Five-Year Earnings Growth 27.14%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(2) % of Net Assets Long
- --------------------------------------------------------
Compagnie Generale des Etablissements Michelin,
Class B 1.4%
Enterprise Inns plc 1.2%
Swiss Life Holding -- Reg'd 1.2%
Cable & Wireless 1.1%
Antofagasta plc 1.1%
IFIL -- Investments S.p.A. 1.1%
Infineon Technologies AG 1.1%
International Power plc 1.0%
Friends Provident plc 0.9%
Air France-KLM 0.9%
TOTAL 11.0%
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
22 Laudus Trust Annual Report
Performance and Fund Facts continued
Laudus Rosenberg International Small Capitalization Fund as of 3/31/07
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS
(PIE CHART)
<Table>
Consumer Discretionary 21.3
Financials 19.6
Industrials 18.4
Materials 17.8
Information Technology 7.7
Consumer Staples 6.6
Utilities 3.5
Telecommunication Services 2.1
Health Care 2.0
Energy 1.0
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
COUNTRY WEIGHTINGS
(PIE CHART)
<Table>
United Kingdom 19.3
Japan 17.9
France 10.5
Switzerland 8.4
Canada 6
Italy 4.9
Germany 4.8
Australia 4.4
Netherlands 3.4
South Korea 3.3
Sweden 2.8
Spain 2.3
Finland 2.1
Austria 2
Hong Kong 1.7
Belgium 1.5
Other Countries 4.7
</Table>
(1) Portfolio holdings are subject to change and may not represent current or
future holdings.
Laudus Trust Annual Report 23
Performance and Fund Facts
Laudus Rosenberg U.S. Large/Mid Capitalization
Long/Short Equity Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES 90-DAY T-BILLS
-------------------- --------------
10/19/98 50000 50000
3/99 52570 51005
3/00 57732 53530
3/01 54967 56624
3/02 60024 58351
3/03 67767 59244
3/04 63586 59812
3/05 67356 60925
3/06 72267 63264
3/07 75863 66579
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES 90-DAY T-BILLS
--------------- --------------
11/11/98 10000 10000
3/99 10471 10169
3/00 11454 10672
3/01 10875 11289
3/02 11850 11634
3/03 13330 11812
3/04 12469 11925
3/05 13158 12147
3/06 14091 12613
3/07 14750 13274
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR
Institutional (10/19/98) 4.98% 4.80% 5.06% n/a
Investor (11/11/98) 4.68% 4.48% n/a 4.74%
90 day T-bills 5.24% 2.68% 3.45% 3.43%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Mid-capitalization stocks typically carry additional risk, since smaller
companies generally have higher risk and volatility.
Investments in long/short funds are more volatile and risky than some other
forms of investments. Since they have both long and short portfolios, an
investment will involve risks associated with twice the number of investment
decisions made for a typical stock fund. These types of Funds typically have a
high portfolio turnover that could increase transaction costs and cause
short-term capital gains to be realized. While it may be the intent of the
Manager to take long positions in stocks that outperform the market and short
positions in stocks that underperform the market, there is no assurance that the
Manager will be successful.
The Fund uses the return that an investor could achieve through an investment in
3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's
performance. AXA Rosenberg attempts to achieve returns for the Fund's
shareholders which exceed the benchmark. An investment in the Fund is different
from an investment in 3-month U.S. Treasury Bills because, among other
differences, U.S. Treasury Bills are backed by the full faith and credit of the
U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in
U.S. Treasury Bills do not risk losing their investment, and an investment in
the Fund is more volatile than an investment in U.S. Treasury Bills.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- ------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 10/19/98 11/11/98
Total Net Assets
($ x 1,000) $10,176 $9,148
Ticker Symbol SSMNX RMNIX
Cusip 51855Q804 51855Q770
NAV $12.14 $12.19
Net Expense Ratio(3) 1.24% 1.54%
Net Expense Ratio(4) (paid by
shareholders) 2.69% 2.99%
Gross Expense Ratio(5) 3.01% 3.31%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long Short
- ----------------------------------------------------------
Number of Securities 72.00 65
Avg. Market Capitalization ($Wtd. 56,875 49,181
x 1,000,000)
Portfolio Turnover 169% 116%
(One year trailing)
Price to Earnings (P/E) 15.73 48.62
Price to Book (P/B) 2.68 3.98
Price to Cash Flow 11.34 15.97
Beta 1.20 1.15
Return on Equity 19.59% 8.41%
Five-Year Earnings Growth 24.27% 19.81%
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Excludes dividend expense on securities sold
short, an expense associated with executing this strategy. Adviser expects
to hold expenses at this level by waiving its management fee and/or bearing
other expenses. Please see the prospectus for more information.
(4) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Includes dividend expense on securities sold
short. Adviser expects to hold expenses at this level by waiving its
management fee and/or bearing other expenses. Please see the prospectus for
more information.
(5) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
24 Laudus Trust Annual Report
Performance and Fund Facts continued
Laudus Rosenberg U.S. Large/Mid Capitalization
Long/Short Equity Fund as of 3/31/07
<Table>
<Caption>
TOP EQUITY HOLDINGS(1) % of Net Assets Long
- ---------------------------------------------------------
AT&T Corp. 4.6%
The Allstate Corp. 4.2%
Union Pacific Corp. 4.2%
International Business Machines Corp. 4.1%
Bank of America Corp. 3.8%
Loews Corp. 3.5%
Merrill Lynch & Co., Inc. 3.0%
PG&E Corp. 3.0%
ACE Ltd. 3.0%
Honeywell International, Inc. 2.8%
TOTAL 36.2%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(1) % of Net Assets Short
- ---------------------------------------------------------
Microsoft Corp. 4.2%
Yahoo! Inc. 3.9%
eBay, Inc. 3.6%
The Procter & Gamble Co. 3.5%
Intel Corp. 3.4%
TXU Corp. 2.9%
The Dow Chemical Co. 2.8%
Adobe Systems, Inc. 2.7%
Amgen, Inc. 2.6%
Ford Motor Co. 2.6%
TOTAL 32.2%
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS--LONG POSITIONS
(PIE CHART)
<Table>
Financials 24.0
Information Technology 22.5
Industrials 13.4
Consumer Discretionary 10.8
Telecommunication Services 7.0
Utilities 6.6
Consumer Staples 4.0
Health Care 4.0
Energy 3.9
Materials 3.8
</Table>
PORTFOLIO COMPOSITION(1) % of Short Positions
- ------------------------------------------------------------
SECTOR WEIGHTINGS--SHORT POSITIONS
(PIE CHART)
<Table>
Information Technology 35.6
Financials 20.7
Health Care 9.9
Consumer Discretionary 7.7
Utilities 7.5
Industrials 6.3
Consumer Staples 5.8
Energy 3.6
Materials 2.9
</Table>
(1) Portfolio holdings are subject to change and may not represent current or
future holdings.
Laudus Trust Annual Report 25
Performance and Fund Facts
Laudus Rosenberg Global Long/Short Equity Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES 90-DAY T-BILLS
-------------------- --------------
9/29/00 50000 50000
3/01 48220 51435
3/02 54108 53004
3/03 63279 53815
3/04 60242 54331
3/05 61946 55342
3/06 66227 57467
3/07 67398 60478
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ------------------------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES 90-DAY T-BILLS
--------------- --------------
8/23/01 10000 10000
3/02 10358 10168
3/03 12076 10324
3/04 11462 10423
3/05 11748 10493
3/06 12521 10895
3/07 12702 11466
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR
Institutional (9/29/00) 1.77% 4.49% 4.70% n/a
Investor (8/23/01) 1.45% 4.17% n/a 4.36%
90 day T-bills 5.24% 2.68% 2.97% 2.68%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Investments in long/short funds are more volatile and risky than some other
forms of investments. Since they have both long and short portfolios, an
investment will involve risks associated with twice the number of investment
decisions made for a typical stock fund. These types of Funds typically have a
high portfolio turnover that could increase transaction costs and cause
short-term capital gains to be realized. While it may be the intent of the
Manager to take long positions in stocks that outperform the market and short
positions in stocks that underperform the market, there is no assurance that the
Manager will be successful.
The Fund uses the return that an investor could achieve through an investment in
3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's
performance. AXA Rosenberg attempts to achieve returns for the Fund's
shareholders which exceed the benchmark. An investment in the Fund is different
from an investment in 3-month U.S. Treasury Bills because, among other
differences, U.S. Treasury Bills are backed by the full faith and credit of the
U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in
U.S. Treasury Bills do not risk losing their investment, and an investment in
the Fund is more volatile than an investment in U.S. Treasury Bills.
There are risks associated with investing in foreign companies, such as erratic
market conditions, economic and political instability and fluctuations in
currency exchange rates.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW (2) Shares Shares
- ------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 9/29/00 8/23/01
Total Net Assets ($ x 1,000) $17,005 $3,655
Ticker Symbol MSMNX RMSIX
Cusip 51855Q879 51855Q754
NAV $12.23 $12.12
Net Expense Ratio(3) 1.99% 2.29%
Net Expense Ratio(4) (paid by
shareholders) 3.07% 3.37%
Gross Expense Ratio(5) 3.31% 3.68%
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long Short
- ----------------------------------------------------------
Number of Securities 413 424
Avg. Market Capitalization
($Wtd. X 1,000,000) 27,366 25,073
Portfolio Turnover 234% 157%
(One year trailing)
Price to Earnings (P/E) 20.15 26.68
Price to Book (P/B) 2.23 3.31
Price to Cash Flow 10.92 15.53
Beta 1.26 1.12
Return on Equity 12.05% 13.47%
Five-Year Earnings Growth 28.08% 27.13%
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Excludes dividend expense on securities sold
short, an expense associated with executing this strategy. Adviser expects
to hold expenses at this level by waiving its management fee and/or bearing
other expenses. Please see the prospectus for more information.
(4) Net Expenses. Reflects expenses expected to be charged to shareholders
through at least 7/30/09. Includes dividend expense on securities sold
short. Adviser expects to hold expenses at this level by waiving its
management fee and/or bearing other expenses. Please see the prospectus for
more information.
(5) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses
influenced by total assets and may be reduced based on contractual fee
waiver by Adviser. Please see the prospectus for more information.
26 Laudus Trust Annual Report
Performance and Fund Facts continued
Laudus Rosenberg Global Long/Short Equity Fund as of 3/31/07
<Table>
<Caption>
TOP EQUITY HOLDINGS (1) % of Net Assets Long
- ------------------------------------------------------------------------------------
Cisco Systems, Inc. 2.2%
Union Pacific Corp. 1.2%
Bank of America Corp. 1.1%
AT&T Corp. 1.1%
International Business Machines Corp. 1.0%
J.C. Penney Co., Inc. 0.9%
Celgene Corp. 0.9%
Merrill Lynch & Co., Inc. 0.9%
NII Holdings, Inc. 0.9%
Loews Corp. 0.9%
TOTAL 11.1%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(1) % of Net Assets Short
- ------------------------------------------------------------------------------------
Intel Corp. 1.8%
Yahoo! Inc. 1.8%
eBay, Inc. 1.7%
QUALCOMM, Inc. 1.5%
Dell, Inc. 1.5%
United Parcel Service, Inc., Class B 1.4%
Microsoft Corp. 1.3%
Wm. Wrigley Jr. Co. 1.0%
Amazon.com, Inc. 0.8%
Genentech, Inc. 0.8%
TOTAL 13.6%
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS--LONG HOLDINGS
(PIE CHART)
<Table>
Consumer Discretionary 22.3
Information Technology 15.9
Industrials 14.6
Financials 13.7
Materials 11.0
Health Care 6.0
Telecommunication Services 5.3
Consumer Staples 4.7
Energy 3.3
Utilities 3.2
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
COUNTRY WEIGHTINGS--LONG HOLDINGS
(PIE CHART)
<Table>
United States 50.2
Japan 24.9
United Kingdom 5.5
France 4.2
Switzerland 2.6
Italy 2.5
Germany 2.1
Spain 1.5
Netherlands 1.4
Belgium 1.4
Sweden 1.3
Denmark 0.9
Ireland 0.5
Austria 0.5
Finland 0.5
</Table>
PORTFOLIO COMPOSITION(1) % of Short Positions
- ------------------------------------------------------------
SECTOR WEIGHTINGS--SHORT POSITIONS
(PIE CHART)
<Table>
Information Technology 27.3
Industrials 20.9
Financials 15.2
Consumer Discretionary 12.6
Health Care 9.7
Consumer Staples 5.9
Energy 4.1
Utilities 2.2
Materials 2.1
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
COUNTRY WEIGHTINGS--SHORT POSITIONS
(PIE CHART)
<Table>
United States 49.8
Japan 25.2
United Kingdom 6.9
France 3.7
Germany 3.1
Switzerland 2.1
Italy 1.9
Spain 1.6
Netherlands 1.3
Sweden 1.2
Norway 1.1
Finland 1.0
Denmark 0.8
Austria 0.3
</Table>
(1) Portfolio holdings are subject to change and may not represent current or
future holdings.
Laudus Trust Annual Report 27
Performance and Fund Facts
Laudus Rosenberg Value Long/Short Equity Fund as of 3/31/07
PERFORMANCE OF A HYPOTHETICAL
$50,000 INVESTMENT IN INSTITUTIONAL SHARES(1)
- ---------------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INSTITUTIONAL SHARES 90-DAY T-BILLS
-------------------- --------------
12/16/97 50000 50000
3/98 49850 50754
3/99 46206 53180
3/00 39677 55812
3/01 46010 59038
3/02 52235 60839
3/03 61094 61769
3/04 57538 62362
3/05 61266 63522
3/06 62743 65962
3/07 64743 69418
</Table>
PERFORMANCE OF A HYPOTHETICAL
$10,000 INVESTMENT IN INVESTOR SHARES(1)
- ----------------------------------------
(LINE GRAPH)
<Table>
<Caption>
INVESTOR SHARES 90-DAY T-BILLS
--------------- --------------
12/18/97 10000 10000
3/98 9960 10147
3/99 9197 10632
3/00 7872 11158
3/01 9091 11803
3/02 10295 12163
3/03 11997 12349
3/04 11284 12468
3/05 11974 12700
3/06 12223 13187
3/07 12566 13879
</Table>
AVERAGE ANNUAL TOTAL RETURNS(1)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SINCE INCEPTION SINCE INCEPTION
CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR
Institutional (12/16/97) 3.19% 4.39% 2.82% n/a
Investor (12/18/97) 2.81% 4.07% n/a 2.49%
90 day T-bills 5.24% 2.68% 3.59% 3.59%
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT
WWW.LAUDUSFUNDS.COM.
PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2%
THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE
PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD
BE LOWER.
Investments in long/short funds are more volatile and risky than some other
forms of investments. Since they have both long and short portfolios, an
investment will involve risks associated with twice the number of investment
decisions made for a typical stock fund. These types of Funds typically have a
high portfolio turnover that could increase transaction costs and cause
short-term capital gains to be realized. While it may be the intent of the
Manager to take long positions in stocks that outperform the market and short
positions in stocks that underperform the market, there is no assurance that the
Manager will be successful.
The Fund uses the return that an investor could achieve through an investment in
3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's
performance. AXA Rosenberg attempts to achieve returns for the Fund's
shareholders which exceed the benchmark. An investment in the Fund is different
from an investment in 3-month U.S. Treasury Bills because, among other
differences, U.S. Treasury Bills are backed by the full faith and credit of the
U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in
U.S. Treasury Bills do not risk losing their investment, and an investment in
the Fund is more volatile than an investment in U.S. Treasury Bills.
Small- and mid-capitalization funds typically carry additional risk since small-
and mid-capitalization companies generally have a higher risk of failure.
Value-based investments are subject to the risk that the broad market may not
recognize their value.
(1) Total returns include change in share price and reinvestment of
distributions. Total returns may reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower.
<Table>
<Caption>
Institutional Investor
FUND OVERVIEW(2) Shares Shares
- -------------------------------------------------------------
Initial Investment $50,000 $2,500
Inception Date 12/16/97 12/18/97
Total Net Assets ($ x 1,000) $260,596 $64,400
Ticker Symbol BMNIX BRMIX
Cusip 51855Q861 51855Q762
NAV $10.75 $10.63
Gross Expense Ratio(3) 1.74% 2.04%
Gross Expense Ratio(4) (paid by 2.89% 3.19%
shareholders)
</Table>
<Table>
<Caption>
FUND CHARACTERISTICS(2) Long Short
- ----------------------------------------------------------
Number of Securities 799 472
Avg. Market Capitalization 3,562 3,321
($Wtd. x 1,000,000)
Portfolio Turnover (One year 140% 119%
trailing)
Price to Earnings (P/E) 17.20 45.27
Price to Book (P/B) 2.04 2.83
Price to Cash Flow 12.77 19.36
Beta 1.35 1.36
Return on Equity 13.15% 6.44%
Five-Year Earnings Growth 29.60% 13.82%
</Table>
(2) Portfolio holdings are subject to change and may not represent current or
future holdings.
(3) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Excludes dividend
expense on securities sold short, an expense associated with executing this
strategy. Actual expenses influenced by total assets and may be reduced
based on contractual fee waiver by Adviser. Please see the prospectus for
more information.
(4) Total Annual Fund Operating Expenses. Provides the expense ratio projected
for this Share Class for the period 7/31/06 - 7/31/07. Includes dividend
expense on securities sold short, an expense associated with executing this
strategy. Actual expenses influenced by total assets and may be reduced
based on contractual fee waiver by Adviser. Please see the prospectus for
more information.
28 Laudus Trust Annual Report
Performance and Fund Facts continued
Laudus Rosenberg Value Long/Short Equity Fund as of 3/31/07
<Table>
<Caption>
TOP EQUITY HOLDINGS(1) % of Net Assets Long
- ---------------------------------------------------------
United States Steel Corp. 1.3%
NII Holdings, Inc. 1.2%
Celgene Corp. 1.2%
Avnet, Inc. 1.1%
Allegheny Technologies, Inc. 1.1%
ENSCO International, Inc. 1.1%
The Sherwin-Williams Co. 1.1%
BMC Software, Inc. 1.0%
A.G. Edwards, Inc. 1.0%
Phillips-Van Heusen Corp. 0.9%
TOTAL 11.0%
</Table>
<Table>
<Caption>
TOP EQUITY HOLDINGS(1) % of Net Assets Short
- ---------------------------------------------------------
Sovereign Bancorp, Inc. 1.0%
Developers Diversified Realty Corp. 1.0%
Activision, Inc. 1.0%
Intuitive Surgical, Inc. 1.0%
New York Community Bancorp, Inc. 1.0%
Plum Creek Timber Co., Inc. 1.0%
VeriSign, Inc. 1.0%
Altera Corp. 0.9%
R.H. Donnelley Corp. 0.9%
Kinder Morgan Management, LLC 0.9%
TOTAL 9.7%
</Table>
PORTFOLIO COMPOSITION(1) % of Investments
- ------------------------------------------------------------
SECTOR WEIGHTINGS--LONG HOLDINGS
(PIE CHART)
<Table>
Financials 22.5
Information Technology 18.0
Consumer Discretionary 15.8
Industrials 15.1
Health Care 8.8
Energy 6.4
Materials 6.0
Consumer Staples 3.4
Telecommunication Services 2.1
Utilities 1.9
</Table>
PORTFOLIO COMPOSITION(1) % of Short Positions
- ------------------------------------------------------------
SECTOR WEIGHTINGS--SHORT POSITIONS
(PIE CHART)
<Table>
Financials 22.3
Consumer Discretionary 20.6
Information Technology 19.4
Health Care 14.3
Industrials 10.7
Energy 6.2
Materials 3.3
Telecommunication Services 1.5
Consumer Staples 1.3
Utilities 0.4
</Table>
(1) Portfolio holdings are subject to change and may not represent current or
future holdings.
Laudus Trust Annual Report 29
Disclosure of Fund Expenses (Unaudited)
EXAMPLES FOR A $1,000 INVESTMENT
As a fund shareholder, you incur two types of costs: transaction costs, such as
redemption fees; and, ongoing costs, such as management fees, transfer agent and
shareholder services fees, and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost
(in dollars) of investing in a fund and to compare this cost with the ongoing
cost of investing in other mutual funds. These examples are based on an
investment of $1,000 invested for the period beginning October 1, 2006 and held
through March 31, 2007, unless otherwise noted.
ACTUAL RETURN lines in the table below provide information about actual account
values and actual expenses. You may use this information, together with the
amount you invested, to estimate the expenses that you paid over the period. To
do so, simply divide your account value by $1,000 (for example, an $8,600
account value / $1,000 = 8.6), then multiply the result by the number given for
your fund or share class under the heading entitled "Expenses Paid During
Period."
HYPOTHETICAL RETURN lines in the table below provide information about
hypothetical account values and hypothetical expenses based on a fund's share
classes' actual expense ratios and an assumed return of 5% per year before
expenses. Because the return used is not an actual return, it may not be used to
estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only, and do not reflect any transactional costs, such as
redemption fees. If these transactional costs were included, your costs would
have been higher.
<Table>
<Caption>
ENDING
BEGINNING ACCOUNT VALUE EXPENSES
EXPENSE RATIO(1) ACCOUNT VALUE (NET OF EXPENSES) PAID DURING PERIOD(2)
(Annualized) at 10/1/06 at 3/31/07 10/1/06 - 3/31/07
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND
Institutional Shares 1.00%
Actual Return $1,000 $1,094.18 $ 5.22
Hypothetical 5% Return $1,000 $1,019.95 $ 5.04
Investor Shares 1.31%
Actual Return $1,000 $1,091.93 $ 6.83
Hypothetical 5% Return $1,000 $1,018.40 $ 6.59
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
Institutional Shares 0.99%
Actual Return $1,000 $1,077.20 $ 5.13
Hypothetical 5% Return $1,000 $1,020.00 $ 4.99
Investor Shares 1.29%
Actual Return $1,000 $1,075.50 $ 6.68
Hypothetical 5% Return $1,000 $1,018.50 $ 6.49
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND
Institutional Shares 0.99%
Actual Return $1,000 $1,097.60 $ 5.18
Hypothetical 5% Return $1,000 $1,020.13 $ 4.99
Investor Shares 1.29%
Actual Return $1,000 $1,096.20 $ 6.74
Hypothetical 5% Return $1,000 $1,018.64 $ 6.49
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG U.S. DISCOVERY FUND
Institutional Shares 0.97%
Actual Return $1,000 $1,120.00 $ 5.13
Hypothetical 5% Return $1,000 $1,020.09 $ 4.89
Investor Shares 1.37%
Actual Return $1,000 $1,117.90 $ 7.23
Hypothetical 5% Return $1,000 $1,018.10 $ 6.89
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Based on the most recent six-month expense ratio; may differ from the
expense ratio provided in Financial Highlights.
(2) Expenses for each fund or share class are equal to that fund's or share
class' annualized expense ratio (net of any expenses waived or reimbursed),
multiplied by the average account value for the hypothetical account over
the period, multiplied by 182 days of the period, and divided by 365 days of
the fiscal year.
30 Laudus Trust Annual Report
<Table>
<Caption>
ENDING
BEGINNING ACCOUNT VALUE EXPENSES
EXPENSE RATIO(1) ACCOUNT VALUE (NET OF EXPENSES) PAID DURING PERIOD(2)
(Annualized) at 10/1/06 at 3/31/07 10/1/06 - 3/31/07
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
Institutional Shares 0.92%
Actual Return $1,000 $1,089.30 $ 4.79
Hypothetical 5% Return $1,000 $1,020.34 $ 4.63
Adviser Shares 1.17%
Actual Return $1,000 $1,088.20 $ 6.09
Hypothetical 5% Return $1,000 $1,019.10 $ 5.89
Investor Shares 1.28%
Actual Return $1,000 $1,087.30 $ 6.66
Hypothetical 5% Return $1,000 $1,018.55 $ 6.44
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
Institutional Shares 1.34%
Actual Return $1,000 $1,154.40 $ 7.20
Hypothetical 5% Return $1,000 $1,018.25 $ 6.74
Investor Shares 1.64%
Actual Return $1,000 $1,152.40 $ 8.80
Hypothetical 5% Return $1,000 $1,016.75 $ 8.25
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
Institutional Shares 1.34%
Actual Return $1,000 $1,189.20 $ 7.31
Hypothetical 5% Return $1,000 $1,018.25 $ 6.74
Investor Shares 1.64%
Actual Return $1,000 $1,187.60 $ 8.94
Hypothetical 5% Return $1,000 $1,016.75 $ 8.25
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION
FUND
Institutional Shares 1.10%
Actual Return $1,000 $1,202.42 $ 6.04
Hypothetical 5% Return $1,000 $1,019.45 $ 5.54
Investor Shares 1.50%
Actual Return $1,000 $1,200.05 $ 8.23
Hypothetical 5% Return $1,000 $1,017.45 $ 7.54
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION
LONG/SHORT EQUITY FUND
Institutional Shares 2.59%
Actual Return $1,000 $1,036.00 $13.15
Hypothetical 5% Return $1,000 $1,012.02 $12.99
Investor Shares 2.90%
Actual Return $1,000 $1,034.80 $14.71
Hypothetical 5% Return $1,000 $1,010.47 $14.54
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
Institutional Shares 3.05%
Actual Return $1,000 $1,035.34 $15.48
Hypothetical 5% Return $1,000 $1,009.72 $15.28
Investor Shares 3.36%
Actual Return $1,000 $1,033.17 $17.03
Hypothetical 5% Return $1,000 $1,008.18 $16.82
- ---------------------------------------------------------------------------------------------------------------------------------
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
Institutional Shares 3.09%
Actual Return $1,000 $1,026.10 $15.61
Hypothetical 5% Return $1,000 $1,009.52 $15.48
Investor Shares 3.39%
Actual Return $1,000 $1,024.20 $17.11
Hypothetical 5% Return $1,000 $1,008.03 $16.97
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Based on the most recent six-month expense ratio; may differ from the
expense ratio provided in Financial Highlights.
(2) Expenses for each fund or share class are equal to that fund's or share
class' annualized expense ratio (net of any expenses waived or reimbursed),
multiplied by the average account value for the hypothetical account over
the period, multiplied by 182 days of the period, and divided by 365 days of
the fiscal year.
Laudus Trust Annual Report 31
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
99.4% COMMON STOCK 92,204,139 104,326,475
--% SHORT-TERM INVESTMENT 40,000 40,000
- -----------------------------------------------------------------
99.4% TOTAL INVESTMENTS 92,244,139 104,366,475
0.6% OTHER ASSETS AND
LIABILITIES 628,072
- -----------------------------------------------------------------
100.0% NET ASSETS 104,994,547
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 99.4% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 2.9%
- -----------------------------------------------------------------
Bunge Ltd. 730 60,020
Campbell Soup Co. 13,400 521,930
Corn Products International, Inc. 3,700 131,683
General Mills, Inc. 17,290 1,006,624
H.J. Heinz Co. 1,140 53,717
Kellogg Co. 14,100 725,163
Seaboard Corp. 127 287,020
The Pepsi Bottling Group, Inc. 8,590 273,935
---------------
3,060,092
AIRLINES 0.5%
- -----------------------------------------------------------------
FedEx Corp. 4,980 535,001
BANKS & CREDIT INSTITUTIONS 7.3%
- -----------------------------------------------------------------
Bank of America Corp. 75,420 3,847,929
The Bank of New York Co., Inc. 33,249 1,348,247
The First Marblehead Corp. 460 20,649
Wachovia Corp. 44,000 2,422,200
---------------
7,639,025
BASIC MINERALS & METALS 3.9%
- -----------------------------------------------------------------
Allegheny Technologies, Inc. 5,670 604,932
Chaparral Steel Co. 2,260 131,464
Freeport-McMoran Copper & Gold,
Inc., Class B 10,170 673,152
Nucor Corp. 12,091 787,487
Precision Castparts Corp. 7,386 768,513
Reliance Steel & Aluminum Co. 4,000 193,600
Southern Copper Corp. 2,800 200,648
Steel Dynamics, Inc. 3,507 151,503
United States Steel Corp. 6,300 624,771
---------------
4,136,070
BEER, LIQUOR, & TOBACCO 2.9%
- -----------------------------------------------------------------
Altria Group, Inc. 10,874 954,846
Anheuser-Busch Cos., Inc. 32,600 1,644,996
UST, Inc. 7,460 432,531
---------------
3,032,373
BIOTECHNOLOGY 1.0%
- -----------------------------------------------------------------
Celgene Corp. * 19,500 1,022,970
CELLULAR & WIRELESS 0.6%
- -----------------------------------------------------------------
NII Holdings, Inc. * 8,300 615,694
CHEMICALS & RUBBER 1.4%
- -----------------------------------------------------------------
Cabot Corp. 3,890 185,670
Celanese Corp., Series A 4,600 141,864
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FMC Corp. 2,260 170,472
Hercules, Inc. * 6,400 125,056
Nalco Holding Co. 6,600 157,740
The Sherwin-Williams Co. 10,980 725,119
---------------
1,505,921
COMMERCIAL AIRCRAFT & COMPONENTS 0.3%
- -----------------------------------------------------------------
Rockwell Collins, Inc. 5,280 353,390
COMMUNICATIONS UTILITIES 5.3%
- -----------------------------------------------------------------
AT&T Corp. 100,751 3,972,612
CenturyTel, Inc. 400 18,076
Comcast Corp., Class A * 30,711 796,950
Qwest Communications
International, Inc. * 54,691 491,672
The DIRECTV Group, Inc. * 10,150 234,161
---------------
5,513,471
CONSTRUCTION & HOMEBUILDING 0.0%
- -----------------------------------------------------------------
Granite Construction, Inc. 380 20,999
CONSTRUCTION MATERIALS 0.3%
- -----------------------------------------------------------------
MDU Resources Group, Inc. 10,547 303,121
CONSUMER DURABLES 0.7%
- -----------------------------------------------------------------
Harley-Davidson, Inc. 12,422 729,793
DRUGS & PHARMACEUTICALS 3.6%
- -----------------------------------------------------------------
King Pharmaceuticals, Inc. * 7,510 147,722
Merck & Co., Inc. 3,850 170,055
NBTY, Inc. * 3,000 159,120
Pfizer, Inc. 75,732 1,912,990
Schering-Plough Corp. 37,420 954,584
Wyeth 8,440 422,253
---------------
3,766,724
ELECTRIC UTILITIES 3.8%
- -----------------------------------------------------------------
Alliant Energy Corp. 7,060 316,429
Consolidated Edison, Inc. 13,420 685,225
Constellation Energy Group 2,620 227,809
Edison International 13,300 653,429
Exelon Corp. 390 26,797
FPL Group, Inc. 13,100 801,327
Northeast Utilities 9,277 304,007
PG&E Corp. 18,300 883,341
Puget Energy, Inc. 1,580 40,574
Westar Energy, Inc. 2,370 65,223
---------------
4,004,161
FOREST PRODUCTS & PAPER 1.1%
- -----------------------------------------------------------------
3M Co. 4,559 348,444
International Paper Co. 23,400 851,760
---------------
1,200,204
FURNITURE & HOUSEHOLD ITEMS 1.5%
- -----------------------------------------------------------------
Acuity Brands, Inc. 2,400 130,656
Hasbro, Inc. 9,800 280,476
International Game Technology 16 646
Mattel, Inc. 22,010 606,816
Steelcase, Inc., Class A 4,800 95,472
The Procter & Gamble Co. 7,000 442,120
---------------
1,556,186
</Table>
See financial notes.
32 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
GOVERNMENT AIRCRAFT & DEFENSE 2.1%
- -----------------------------------------------------------------
Garmin Ltd. 10,121 548,052
General Dynamics Corp. 8,580 655,512
Lockheed Martin Corp. 1,600 155,232
Raytheon Co. 16,950 889,197
---------------
2,247,993
HEALTH CARE & HOSPITAL 1.0%
- -----------------------------------------------------------------
Health Net, Inc. * 6,516 350,626
Humana, Inc. * 9,600 556,992
Laboratory Corp. of America
Holdings * 2,560 185,933
Manor Care, Inc. 80 4,349
---------------
1,097,900
INFORMATION & SERVICES 1.8%
- -----------------------------------------------------------------
Accenture Ltd., Class A 25,140 968,896
IAC/InterActive Corp. * 9,262 349,270
Manpower, Inc. 2,590 191,064
Sotheby's 1,060 47,149
The Dun & Bradstreet Corp. 4,080 372,096
---------------
1,928,475
INSTRUMENTS 3.0%
- -----------------------------------------------------------------
Baxter International, Inc. 25,850 1,361,519
Honeywell International, Inc. 18,500 852,110
Johnson & Johnson 5,130 309,134
Mettler-Toledo International, Inc.
* 1,070 95,840
PerkinElmer, Inc. 7,700 186,494
Waters Corp. * 6,300 365,400
---------------
3,170,497
INSURANCE 9.1%
- -----------------------------------------------------------------
ACE Ltd. 15,800 901,548
Alleghany Corp. * 326 121,943
American Financial Group, Inc. 5,250 178,710
American International Group, Inc. 2,300 154,606
American National Insurance Co. 440 56,289
Arch Capital Group Ltd. * 4,100 279,661
Aspen Insurance Holdings Ltd. 4,890 128,167
CNA Financial Corp. * 3,040 130,994
Endurance Specialty Holdings Ltd. 3,560 127,234
Everest Re Group Ltd. 3,400 326,978
Loews Corp. 25,200 1,144,836
MetLife, Inc. 21,900 1,382,985
PartnerRe Ltd. 1,380 94,585
Prudential Financial, Inc. 12,214 1,102,436
Radian Group, Inc. 4,800 263,424
Reinsurance Group of America, Inc. 1,870 107,936
The Allstate Corp. 25,500 1,531,530
The Chubb Corp. 3,650 188,596
The Travelers Cos., Inc. * 12,330 638,324
Wesco Financial Corp. 200 92,000
XL Capital Ltd., Class A 8,730 610,751
---------------
9,563,533
INTEGRATED OIL COMPANIES 5.9%
- -----------------------------------------------------------------
Chevron Corp. 7,512 555,588
Exxon Mobil Corp. 61,090 4,609,240
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Hess Corp. 10,400 576,888
Marathon Oil Corp. 4,840 478,337
---------------
6,220,053
IT HARDWARE 4.1%
- -----------------------------------------------------------------
Amphenol Corp., Class A 5,600 361,592
Cisco Systems, Inc. * 117,942 3,011,059
Harris Corp. 3,600 183,420
LSI Logic Corp. * 11,451 119,548
MEMC Electronic Materials, Inc. * 8,960 542,797
NVIDIA Corp. * 795 22,880
ON Semiconductor Corp. * 1,690 15,075
---------------
4,256,371
LAND & WATER TRANSPORTATION 1.3%
- -----------------------------------------------------------------
Burlington Northern Santa Fe Corp. 430 34,585
CSX Corp. 70 2,804
Seacor Holdings, Inc. * 500 49,200
Union Pacific Corp. 12,270 1,246,018
---------------
1,332,607
METAL PRODUCTS & MACHINERY 3.8%
- -----------------------------------------------------------------
AGCO Corp. * 3,120 115,346
American Standard Cos., Inc. 9,610 509,522
Dover Corp. 7 342
General Electric Co. 49,900 1,764,464
Lincoln Electric Holdings, Inc. 2,110 125,672
Parker Hannifin Corp. 7,000 604,170
SPX Corp. 3,540 248,508
Terex Corp. * 5,714 410,037
The Manitowoc Co., Inc. 1,210 76,871
Varian Semiconductor Equipment
Associates, Inc. * 3,013 160,834
---------------
4,015,766
MISCELLANEOUS FINANCE 4.9%
- -----------------------------------------------------------------
A.G. Edwards, Inc. 4,400 304,392
Chicago Mercantile Exchange
Holdings, Inc., Class A 334 177,842
Citigroup, Inc. 14,200 729,028
JPMorgan Chase & Co. 37,011 1,790,592
Merrill Lynch & Co., Inc. 24,300 1,984,581
Morgan Stanley 1,434 112,942
---------------
5,099,377
OIL & COAL RESOURCES 0.3%
- -----------------------------------------------------------------
XTO Energy, Inc. 5,530 303,099
OIL DISTRIBUTION 0.3%
- -----------------------------------------------------------------
Holly Corp. 2,720 161,296
Tesoro Corp. 1,420 142,611
---------------
303,907
OIL DRILLING & SERVICES 2.0%
- -----------------------------------------------------------------
Diamond Offshore Drilling, Inc. 3,370 272,801
ENSCO International, Inc. 9,000 489,600
GlobalSantaFe Corp. 10,540 650,107
Noble Corp. 3,570 280,888
Superior Energy Services, Inc. * 4,900 168,903
Tidewater, Inc. 3,800 222,604
---------------
2,084,903
</Table>
See financial notes.
Laudus Funds Annual Report 33
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 2.1%
- -----------------------------------------------------------------
Brocade Communications Systems,
Inc. * 7,970 75,874
Hewlett-Packard Co. 51,920 2,084,069
---------------
2,159,943
PUBLISHING, BROADCASTING & CINEMA 5.9%
- -----------------------------------------------------------------
CBS Corp., Class B 25,208 771,113
Gannett Co., Inc. 13,660 768,921
News Corp., Class A 82,749 1,913,157
The Walt Disney Co. 59,627 2,052,957
Time Warner, Inc. 33,333 657,327
---------------
6,163,475
REAL ESTATE DEVELOPMENT 0.2%
- -----------------------------------------------------------------
Service Corp. International 13,490 159,991
REAL ESTATE INVESTMENT TRUSTS 0.1%
- -----------------------------------------------------------------
HRPT Properties Trust 12,150 149,445
RESTAURANTS, HOTELS & THEATERS 1.9%
- -----------------------------------------------------------------
Burger King Holdings, Inc. 300 6,480
McDonald's Corp. 44,780 2,017,339
---------------
2,023,819
RETAIL 3.6%
- -----------------------------------------------------------------
Abercrombie & Fitch Co., Class A 5,700 431,376
American Eagle Outfitters, Inc. 4,050 121,459
AutoZone, Inc. * 3,340 427,988
Big Lots, Inc. * 6,100 190,808
CVS/Caremark Corp. 1,100 37,554
J.C. Penney Co., Inc. 11,990 985,098
Nordstrom, Inc. 13,140 695,632
OfficeMax, Inc. 4,160 219,398
Safeway, Inc. 9,950 364,568
The Kroger Co. 10,240 289,280
The Men's Wearhouse, Inc. 450 21,173
---------------
3,784,334
SOAPS & COSMETICS 0.1%
- -----------------------------------------------------------------
Avon Products, Inc. 1,640 61,106
The Estee Lauder Cos., Inc., Class
A 140 6,839
---------------
67,945
SOFTWARE 7.0%
- -----------------------------------------------------------------
BMC Software, Inc. * 12,160 374,406
Cadence Design Systems, Inc. * 10,750 226,395
Cognizant Technology Solutions
Corp., Class A * 7,819 690,183
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Computer Sciences Corp. * 5,360 279,417
International Business Machines
Corp. 30,645 2,888,598
Microsoft Corp. 24,270 676,405
Oracle Corp. * 116,220 2,107,069
Sybase, Inc. * 2,070 52,330
THQ, Inc. * 613 20,958
---------------
7,315,761
TEXTILES & APPAREL 0.8%
- -----------------------------------------------------------------
Coach, Inc. * 3,745 187,437
Guess?, Inc. 2,140 86,649
Liz Claiborne, Inc. 6,260 268,241
Polo Ralph Lauren Corp. 3,447 303,853
---------------
846,180
WHOLESALE 1.0%
- -----------------------------------------------------------------
Anixter International, Inc. * 1,700 112,098
Arrow Electronics, Inc. * 7,170 270,668
Avnet, Inc. * 7,600 274,664
W.W. Grainger, Inc. 4,900 378,476
---------------
1,035,906
---------------
TOTAL COMMON STOCK (COST $92,204,139) 104,326,475
---------------
<Caption>
FACE
SECURITY AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT 0.0% OF NET ASSETS
REPURCHASE AGREEMENT 0.0%
- -----------------------------------------------------------------
Fixed Income Clearing Corp. dated
03/30/07, due 04/02/07 at 5.00%,
with a maturity value of $40,017
(fully collateralized by United
States Treasury Note with a
value of $44,438.) 40,000 40,000
---------------
TOTAL SHORT-TERM INVESTMENT
(COST $40,000) 40,000
- -----------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 03/31/07 the tax basis cost of the fund's investments was $92,471,527, and
the unrealized appreciation and depreciation were $12,476,310 and ($581,362),
respectively, with a net unrealized appreciation of $11,894,948.
* Non-income producing security.
See financial notes.
34 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
99.2% COMMON STOCK 69,070,731 77,114,283
- -----------------------------------------------------------------
99.2% TOTAL INVESTMENTS 69,070,731 77,114,283
8.0% COLLATERAL FOR
SECURITIES ON LOAN 6,243,025 6,243,025
(7.2)% OTHER ASSETS AND
LIABILITIES (5,634,450)
- -----------------------------------------------------------------
100.0% NET ASSETS 77,722,858
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 99.2% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 3.0%
- -----------------------------------------------------------------
Campbell Soup Co. (a) 3,100 120,744
General Mills Inc 1,490 86,748
H.J. Heinz Co. 4,100 193,192
Kellogg Co. 3,900 200,577
PepsiCo, Inc. 13,100 832,636
The Coca-Cola Co. 17,300 830,400
The Pepsi Bottling Group, Inc. 2,800 89,292
--------------
2,353,589
AIRLINES 1.1%
- -----------------------------------------------------------------
AMR Corp. (a)* 3,270 99,572
Continental Airlines, Inc., Class B
* 2,900 105,531
FedEx Corp. 5,200 558,636
U S Airways Group Inc 2,100 95,508
--------------
859,247
AUTOS 0.3%
- -----------------------------------------------------------------
Autoliv, Inc. 483 27,584
BorgWarner, Inc. (a) 200 15,084
PACCAR, Inc. (a) 3,100 227,540
--------------
270,208
BANKS & CREDIT INSTITUTIONS 4.1%
- -----------------------------------------------------------------
Alliance Data Systems Corp 2,100 129,402
American Express Co. 8,900 501,960
Bank of America Corp. 400 20,408
Deere & Co. 800 86,912
First Marblehead Corp (a) 1,715 76,986
Freddie Mac 2,500 148,725
Harley-Davidson, Inc. (a) 5,600 329,000
Investors Financial Services Corp. 2,100 122,115
Mellon Financial Cor 6,300 271,782
Northern Trust Corp (a) 3,900 234,546
SLM Corp. 2,300 94,070
State Street Corp 5,800 375,550
Synovus Financial Corp (a) 4,700 151,998
The Bank of New York Co., Inc. 2,000 81,100
U.S. Bancorp (a) 500 17,485
Wachovia Corp. 3,400 187,170
Wells Fargo & Co. 9,730 335,004
--------------
3,164,213
BASIC MINERALS & METALS 1.9%
- -----------------------------------------------------------------
Alcoa, Inc. 6,900 233,910
Allegheny Technologies, Inc. 2,000 213,380
Carpenter Technology Corp. (a) 900 108,684
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Freeport-McMoran Copper & Gold,
Inc., Class B 2,900 191,951
Harsco Corp. (a) 2,400 107,664
Newmont Mining Corp. (a) 2,200 92,378
Precision Castparts Corp. 2,700 280,935
Southern Copper Corp. (a) 1,600 114,656
Titanium Metals Corp * 2,800 100,464
--------------
1,444,022
BEER, LIQUOR, & TOBACCO 1.3%
- -----------------------------------------------------------------
Altria Group, Inc. 5,200 456,612
Anheuser-Busch Cos., Inc. 9,300 469,278
UST, Inc. (a) 2,100 121,758
--------------
1,047,648
BIOTECHNOLOGY 1.8%
- -----------------------------------------------------------------
Amgen, Inc. * 9,400 525,272
Celgene Corp. (a)* 7,200 377,712
Genentech, Inc. * 3,400 279,208
Gilead Sciences, Inc. * 3,300 252,450
--------------
1,434,642
CELLULAR & WIRELESS 0.5%
- -----------------------------------------------------------------
NII Holdings, Inc. * 3,200 237,376
Sprint Nextel Corp. 5,100 96,696
U.S. Cellular Corp. * 1,000 73,450
--------------
407,522
CHEMICALS & RUBBER 3.1%
- -----------------------------------------------------------------
Cabot Corp. (a) 1,000 47,730
Celanese Corp., Series A 1,600 49,344
Du Pont De Nemours 12,800 632,704
International Flavors & Fragrances,
Inc. (a) 2,300 108,606
Monsanto Co. 9,800 538,608
Nalco Holding Company 3,720 88,908
PPG Industries, Inc. 1,200 84,372
Praxair, Inc. 6,000 377,760
Rohm and Haas Co. 400 20,688
Sigma-Aldrich Corp. 2,200 91,344
The Goodyear Tire & Rubber Co. (a)* 4,800 149,712
The Scotts Miracle-Gro Co., Class A
(a) 1,300 57,239
The Sherwin-Williams Co. 2,000 132,080
--------------
2,379,095
COMMERCIAL AIRCRAFT & COMPONENTS 1.6%
- -----------------------------------------------------------------
Goodrich Corp. 2,400 123,552
Rockwell Collins, Inc. 3,400 227,562
The Boeing Co. 9,900 880,209
--------------
1,231,323
COMMUNICATIONS UTILITIES 3.8%
- -----------------------------------------------------------------
American Tower Corp., Class A * 3,200 124,640
Comcast Corp., Class A * 22,350 579,982
Echostar Communications Corp 3,790 164,600
Google, Inc., Class A * 2,700 1,237,032
Level 3 Communications, Inc. * 24,300 148,230
The DIRECTV Group, Inc. 16,500 380,655
Yahoo! Inc. * 10,900 341,061
--------------
2,976,200
</Table>
See financial notes.
Laudus Funds Annual Report 35
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CONSTRUCTION & HOMEBUILDING 0.1%
- -----------------------------------------------------------------
Quanta Services Inc 1,900 47,918
CONSTRUCTION MATERIALS 0.5%
- -----------------------------------------------------------------
Martin Marietta Materials, Inc. (a) 1,100 148,720
Vulcan Materials Co. 1,900 221,312
--------------
370,032
DRUGS & PHARMACEUTICALS 4.2%
- -----------------------------------------------------------------
Abbott Laboratories 9,400 524,520
Allergan, Inc. 1,200 132,984
Bristol-Myers Squibb Co. 6,900 191,544
Eli Lilly & Co. 5,800 311,518
Forest Laboratories, Inc. * 2,300 118,312
Genzyme Corp. * 1,800 108,036
Merck & Co., Inc. 11,630 513,697
Schering-Plough Corp. 26,100 665,811
Wyeth 13,800 690,414
--------------
3,256,836
ELECTRIC UTILITIES 1.3%
- -----------------------------------------------------------------
Constellation Energy Group 1,100 95,645
Exelon Corp 9,600 659,616
PG&E Corp. 600 28,962
The AES Corp. * 3,500 75,320
TXU Corp. 3,010 192,941
--------------
1,052,484
FINANCIAL INVESTMENTS 0.2%
- -----------------------------------------------------------------
Dolby Laboratories Inc., Class A * 1,500 51,765
Trinity Industries I 2,600 108,992
--------------
160,757
FOREST PRODUCTS & PAPER 1.5%
- -----------------------------------------------------------------
3M Co. 10,200 779,586
Avery Dennison Corp. 1,460 93,820
Kimberly-Clark Corp. 2,000 136,980
Packaging Corp. of America 3,100 75,640
Sealed Air Corp. (a) 2,800 88,480
--------------
1,174,506
FURNITURE & HOUSEHOLD ITEMS 1.0%
- -----------------------------------------------------------------
Carlisle Cos Inc (a) 2,000 85,860
Ethan Allen Interiors, Inc. (a) 200 7,068
Hillenbrand Industries, Inc. (a) 1,000 59,370
International Game Technology 2,980 120,333
Johnson Controls, Inc. (a) 2,200 208,164
Leggett & Platt, Inc. (a) 2,200 49,874
Pactiv Corp. * 3,400 114,716
Steelcase Inc., Class A (a) 2,260 44,951
Thomas & Betts Corp. * 1,300 63,466
--------------
753,802
GAS & OTHER PUBLIC UTILITIES 0.3%
- -----------------------------------------------------------------
Allied Waste Industries Inc (a) 200 2,518
Waste Management, Inc. 3,200 110,112
Williams Cos., Inc. 3,400 96,764
--------------
209,394
GOVERNMENT AIRCRAFT & DEFENSE 1.5%
- -----------------------------------------------------------------
Alliant Techsystems, Inc. (a)* 500 43,960
Lockheed Martin Corp. 5,950 577,269
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Northrop Grumman Corp. 1,200 89,064
Raytheon Co. 4,600 241,316
Textron, Inc. 2,300 206,540
--------------
1,158,149
HEALTH CARE & HOSPITAL 1.4%
- -----------------------------------------------------------------
Health Net, Inc. * 2,400 129,144
Humana, Inc. * 3,400 197,268
Manor Care, Inc. (a) 2,100 114,156
UnitedHealth Group, Inc. 10,800 572,076
Vca Antech Inc 3,000 108,930
--------------
1,121,574
INFORMATION & SERVICES 2.0%
- -----------------------------------------------------------------
Caterpillar, Inc. 5,000 335,150
Ceridian Corp. (a)* 3,800 132,392
Convergys Corp. * 200 5,082
Corrections Corp. of America (a)* 1,600 84,496
Expedia, Inc. * 3,100 71,858
Iac Interactivecorp (a) 2,700 101,817
ITT Educational Services, Inc. * 1,400 114,086
Jones Lang LaSalle, Inc. 1,200 125,136
Manpower, Inc. 1,800 132,786
Moody's Corp. (a) 1,670 103,640
Paychex, Inc. (a) 2,000 75,740
The Brink's Co. (a) 1,400 88,830
The Dun & Bradstreet Corp. 1,400 127,680
Total System Services, Inc. (a) 2,400 76,440
URS Corp. * 200 8,518
--------------
1,583,651
INSTRUMENTS 4.7%
- -----------------------------------------------------------------
Agilent Technologies, Inc. * 3,000 101,070
AMETEK, Inc. 2,700 93,258
Baxter International, Inc. 10,600 558,302
Beckman Coulter, Inc. 940 60,057
Becton Dickinson & Co. 1,900 146,091
Boston Scientific Corp. * 8,300 120,682
Dade Behring Holdings, Inc. 2,210 96,908
Danaher Corp. 4,600 328,670
Edwards Lifesciences Corp. (a)* 2,000 101,400
Honeywell International, Inc. 7,200 331,632
Medtronic, Inc. 9,300 456,258
Mettler-Toledo International, Inc.
* 1,400 125,398
PerkinElmer, Inc. 2,470 59,823
Roper Industries, Inc. 2,200 120,736
St. Jude Medical, Inc. * 2,300 86,503
Stryker Corp. (a) 5,700 378,024
Thermo Electron Corp. * 1,900 88,825
Trimble Navigation Ltd 3,900 104,676
Waters Corp. * 2,200 127,600
Zimmer Holdings, Inc. * 1,700 145,197
--------------
3,631,110
INSURANCE 2.4%
- -----------------------------------------------------------------
ACE Ltd. 600 34,236
AFLAC, Inc. 3,390 159,533
Ambac Finl Group Inc 900 77,751
American International Group, Inc. 7,400 497,428
Arthur J. Gallagher & Co. (a) 300 8,499
CNA Financial Corp. (a)* 1,500 64,635
</Table>
See financial notes.
36 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Fidelity National Financial, Inc.,
Class A (a) 314 7,539
Hanover Insurance Group, Inc. (a) 800 36,896
HCC Insurance Holdings, Inc. 2,300 70,840
Markel Corp. * 200 96,966
Philadelphia Consolidated Holding
Corp. * 1,800 79,182
Prudential Financial, Inc. (a) 1,460 131,780
Radian Group, Inc. 300 16,464
Transatlantic Holdings, Inc. 200 13,024
Wellcare Health Plans Inc 1,200 102,300
WellPoint, Inc. * 5,500 446,050
--------------
1,843,123
INTEGRATED OIL COMPANIES 0.6%
- -----------------------------------------------------------------
Exxon Mobil Corp. 6,260 472,317
IT HARDWARE 7.4%
- -----------------------------------------------------------------
Agere Systems, Inc. (a)* 5,100 115,362
Amphenol Corp New 2,000 129,140
Applied Materials, Inc. 12,100 221,672
Avaya, Inc. (a)* 401 4,736
Avocent Corp. * 15 404
Avx Corp (a) 300 4,560
Broadcom Corp., Class A * 2,900 93,003
Cisco Systems, Inc. * 80,900 2,065,377
Corning, Inc. * 11,400 259,236
Harris Corp. (a) 2,810 143,169
Integrated Device Technology Inc 3,500 53,970
Intel Corp. 46,800 895,284
International Rectifier Corp. (a)* 1,600 61,136
L-3 Communications Holdings, Inc. 800 69,976
LSI Logic Corp. (a)* 9,900 103,356
MEMC Electronic Materials, Inc. * 3,200 193,856
Molex, Inc. (a) 3,800 107,160
Motorola, Inc. 13,940 246,320
Novellus Systems, Inc. * 1,980 63,400
QUALCOMM, Inc. 12,800 546,048
Texas Instruments, Inc. 11,300 340,130
Vishay Intertechnology, Inc. * 400 5,592
--------------
5,722,887
LAND & WATER TRANSPORTATION 1.6%
- -----------------------------------------------------------------
Burlington Northern Santa Fe Corp. 2,810 226,008
Csx Corp 4,500 180,225
J.B. Hunt Transport Services, Inc. 3,613 94,805
Kansas City Southern * 1,140 40,561
Norfolk Southern Corp. 780 39,468
Ryder System, Inc. 670 33,058
Union Pacific Corp 2,700 274,185
United Parcel Service, Inc., Class
B 5,100 357,510
--------------
1,245,820
MAINFRAME & MINICOMPUTERS 1.8%
- -----------------------------------------------------------------
Apple Computer, Inc. * 10,400 966,264
Dell, Inc. * 18,200 422,422
--------------
1,388,686
METAL PRODUCTS & MACHINERY 6.6%
- -----------------------------------------------------------------
Agco Corp 200 7,394
Amer Std Cos Inc 3,600 190,872
Crown Holdings, Inc. * 5,100 124,746
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Cummins, Inc. 1,000 144,720
Dover Corp. 3,600 175,716
Emerson Electric Co. 12,040 518,804
Energizer Holdings, Inc. (a)* 1,260 107,516
Gardner Denver, Inc. * 1,800 62,730
General Electric Co. 43,600 1,541,696
Illinois Tool Works, Inc. 8,900 459,240
Lincoln Electric Holdings, Inc. (a) 1,590 94,700
Manitowoc Co 2,000 127,060
Pall Corp. 800 30,400
Parker Hannifin Corp (a) 1,500 129,465
Procter & Gamble Co. 4,900 309,484
Snap-On, Inc. 200 9,620
Terex Corp. * 1,700 121,992
The Stanley Works (a) 1,900 105,184
Toro Co (a) 1,700 87,108
United Technologies Corp. 11,500 747,500
--------------
5,095,947
MISCELLANEOUS FINANCE 3.8%
- -----------------------------------------------------------------
A.G. Edwards, Inc. 200 13,836
Ameriprise Financial, Inc. 3,600 205,704
Chicago Mercantile Exchange
Holdings, Inc. 700 372,722
Eaton Vance Corp. (a) 3,400 121,176
Franklin Resources, Inc. 3,200 386,656
Intercontinentalexchange Inc 1,400 171,094
Investment Technology Gp Inc New 1,500 58,800
Merrill Lynch & Co., Inc. 3,300 269,511
Morgan Stanley 2,600 204,776
Price T Rowe Group 5,200 245,388
Principal Financial Group In 1,300 77,831
SEI Investments Co. 1,900 114,437
The Goldman Sachs Group, Inc. 3,600 743,868
--------------
2,985,799
OIL & COAL RESOURCES 0.9%
- -----------------------------------------------------------------
Apache Corp. 120 8,484
Equitable Resources Inc 2,700 130,464
Plains Exploration & Production Co.
(a)* 2,500 112,850
Unit Corp. (a)* 1,800 91,062
XTO Energy, Inc. 7,147 391,727
--------------
734,587
OIL DISTRIBUTION 0.3%
- -----------------------------------------------------------------
Holly Corp 1,700 100,810
Tesoro Petroleum Corp. 1,100 110,473
--------------
211,283
OIL DRILLING & SERVICES 2.6%
- -----------------------------------------------------------------
Baker Hughes, Inc. (a) 2,200 145,486
Cameron Intl Corp 2,400 150,696
Diamond Offshore Drilling, Inc. 1,650 133,568
ENSCO International, Inc. 3,220 175,168
FMC Technologies, Inc. * 1,800 125,568
Global Industries Ltd. * 3,290 60,174
Halliburton Co. 7,000 222,180
Helmerich & Payne, Inc. (a) 3,500 106,190
National-Oilwell Varco, Inc. * 3,500 272,265
Oceaneering International, Inc.
(a)* 2,200 92,664
Pride International, Inc. * 3,210 96,621
</Table>
See financial notes.
Laudus Funds Annual Report 37
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Smith International, Inc. (a) 4,700 225,835
Superior Energy Services, Inc. * 2,830 97,550
TETRA Technologies, Inc. (a)* 2,700 66,717
Tidewater, Inc. (a) 1,300 76,154
--------------
2,046,836
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 1.8%
- -----------------------------------------------------------------
Diebold, Inc. 2,000 95,420
EMC Corp. * 14,300 198,055
Hewlett-Packard Co. 21,700 871,038
NCR Corp. * 1,700 81,209
Network Appliance, Inc. * 2,700 98,604
VeriFone Holdings, Inc. (a)* 1,800 66,114
--------------
1,410,440
PUBLISHING, BROADCASTING & CINEMA 2.7%
- -----------------------------------------------------------------
McGraw-Hill Cos., Inc. 6,500 408,720
News Corp., Class A 25,200 582,624
Omnicom Group, Inc. 3,300 337,854
Time Warner, Inc. 5,940 117,137
Viacom Inc 4,400 180,884
Walt Disney Co. 13,680 471,002
--------------
2,098,221
REAL ESTATE INVESTMENT TRUSTS 0.2%
- -----------------------------------------------------------------
Simon Property Group, Inc. 900 100,125
Weingarten Realty 760 36,146
--------------
136,271
RESTAURANTS, HOTELS & THEATERS 1.8%
- -----------------------------------------------------------------
Brinker International Inc 3,600 117,720
Burger King Holdings, Inc. (a) 280 6,048
CBRL Group, Inc. (a) 800 37,040
Hilton Hotels Corp. 7,900 284,084
Las Vegas Sands Corp. (a)* 3,000 259,830
MGM MIRAGE * 2,600 180,752
Starbucks Corp. * 6,000 188,160
YUM! Brands, Inc. 5,300 306,128
--------------
1,379,762
RETAIL 9.1%
- -----------------------------------------------------------------
Abercrombie & Fitch Co., Class A 1,800 136,224
American Eagle Outfitters Inc Ne 4,000 119,960
Autozone Inc 1,100 140,954
Best Buy Co., Inc. 2,700 131,544
CarMax, Inc. (a)* 4,400 107,976
Costco Wholesale Corp. (a) 2,400 129,216
CVS Corp. 22,300 761,322
Dick's Sporting Goods, Inc. * 1,390 80,981
Dollar Tree Stores Inc (a) 170 6,501
eBay, Inc. * 8,000 265,200
Federated Department Stores, Inc. 1,900 85,595
GameStop Corp., Class A * 3,400 110,738
Home Depot, Inc. 15,000 551,100
J.C. Penney Co., Inc. 4,500 369,720
Kohl's Corp. * 6,200 474,982
Kroger Co 3,200 90,400
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Limited Brands Inc 1,310 34,139
Lowe's Cos., Inc. 12,200 384,178
Medco Health Solutions, Inc. * 3,900 282,867
Nordstrom, Inc. 4,700 248,818
RadioShack Corp. (a) 3,457 93,443
Staples, Inc. 5,400 139,536
Target Corp. 12,100 717,046
The Men's Wearhouse, Inc. 1,400 65,870
The TJX Cos., Inc. 8,900 239,944
Wal-Mart Stores, Inc. 20,200 948,390
Walgreen Co. 7,300 334,997
--------------
7,051,641
SOAPS & COSMETICS 3.4%
- -----------------------------------------------------------------
Avon Products, Inc. 8,800 327,888
Church & Dwight Inc (a) 2,100 105,735
Colgate-Palmolive Co. 8,100 540,999
Ecolab, Inc. 3,900 167,700
Johnson & Johnson 22,100 1,331,746
Lauder Estee Cos Inc (a) 2,900 141,665
--------------
2,615,733
SOFTWARE 8.8%
- -----------------------------------------------------------------
Adobe Systems, Inc. * 3,900 162,630
Akamai Technologies, Inc. * 3,000 149,760
Automatic Data Processing, Inc. 3,700 179,080
BMC Software, Inc. * 4,600 141,634
Cadence Design Systems, Inc. * 6,300 132,678
Cognizant Technology Solutions
Corp., Class A * 3,000 264,810
DST Systems, Inc. * 1,700 127,840
Electronic Arts, Inc. * 2,300 115,828
Emdeon Corp (a) 7,500 113,475
FactSet Research Systems, Inc. (a) 1,500 94,275
Fair Isaac Corp. (a) 1,500 58,020
First Data Corp. 5,690 153,061
International Business Machines
Corp. 18,200 1,715,532
Intuit, Inc. (a)* 7,600 207,936
McAfee, Inc. (a)* 4,100 119,228
Microsoft Corp. 78,200 2,179,434
Oracle Corp. * 50,610 917,559
Synopsys, Inc. (a)* 150 3,935
--------------
6,836,715
TEXTILES & APPAREL 1.1%
- -----------------------------------------------------------------
Coach, Inc. * 7,670 383,884
NIKE, Inc., Class B 3,600 382,536
Polo Ralph Lauren Corp. (a) 1,400 123,410
--------------
889,830
WHOLESALE 1.1%
- -----------------------------------------------------------------
Airgas, Inc. 2,200 92,730
Arrow Electronics, Inc. * 700 26,425
Avnet, Inc. (a)* 2,140 77,339
Cardinal Health, Inc. 2,900 211,555
Copart, Inc. * 2,474 69,297
</Table>
See financial notes.
38 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Sysco Corp. (a) 7,900 267,257
W.W. Grainger, Inc. 1,500 115,860
--------------
860,463
--------------
TOTAL COMMON STOCK (COST $69,070,731) 77,114,283
--------------
- -----------------------------------------------------------------
END OF INVESTMENTS.
At 3/31/07 the tax basis cost of the fund's investments was
$69,485,820 and the unrealized appreciation and depreciation
was $8,466,803 and ($838,340), respectively, with a net
unrealized appreciation of $7,628,463.
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COLLATERAL INVESTED FOR SECURITIES ON LOAN 8.0% OF NET ASSETS
State Street Navigator Security
Lending Prime Portfolio 6,243,025 6,243,025
- -----------------------------------------------------------------
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
</Table>
* Non-income producing security.
(a) All or a portion of this security is on loan.
See financial notes.
Laudus Funds Annual Report 39
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
99.7% COMMON STOCK 5,574,417 6,576,131
- -----------------------------------------------------------------
99.7% TOTAL INVESTMENTS 5,574,417 6,576,131
0.3% OTHER ASSETS AND LIABILITIES 22,618
- -----------------------------------------------------------------
100.0% NET ASSETS 6,598,749
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 99.7% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 1.2%
- -----------------------------------------------------------------
General Mills, Inc. 1,090 63,460
The Pepsi Bottling Group,
Inc. 500 15,945
-------------
79,405
AIRLINES 0.2%
- -----------------------------------------------------------------
AMR Corp. * 400 12,180
AUTOS 0.6%
- -----------------------------------------------------------------
PACCAR, Inc. 500 36,700
BANKS & CREDIT INSTITUTIONS 10.0%
- -----------------------------------------------------------------
Bank of America Corp. 5,800 295,916
Comerica, Inc. 650 38,428
Deere & Co. 900 97,776
The Bank of New York Co.,
Inc. 2,400 97,320
Wachovia Corp. 1,200 66,060
Wells Fargo & Co. 1,900 65,417
-------------
660,917
BASIC MINERALS & METALS 1.9%
- -----------------------------------------------------------------
Freeport-McMoran Copper &
Gold, Inc., Class B 400 26,476
Reliance Steel & Aluminum Co. 300 14,520
Steel Dynamics, Inc. 600 25,920
United States Steel Corp. 600 59,502
-------------
126,418
BEER, LIQUOR, & TOBACCO 1.7%
- -----------------------------------------------------------------
Altria Group, Inc. 900 79,029
Loews Corp.-Carolina Group 400 30,244
-------------
109,273
CHEMICALS & RUBBER 2.6%
- -----------------------------------------------------------------
Celanese Corp., Series A 280 8,635
FMC Corp. 216 16,293
Lyondell Chemical Co. 1,000 29,970
The Dow Chemical Co. 2,600 119,236
-------------
174,134
COMMUNICATIONS UTILITIES 8.8%
- -----------------------------------------------------------------
AT&T Corp. 7,600 299,668
CenturyTel, Inc. 390 17,624
Comcast Corp., Class A * 1,075 27,896
Embarq Corp. 700 39,445
Verizon Communications, Inc. 5,100 193,392
-------------
578,025
CONSTRUCTION MATERIALS 0.3%
- -----------------------------------------------------------------
The Mosaic Co. * 800 21,328
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
DRUGS & PHARMACEUTICALS 4.4%
- -----------------------------------------------------------------
King Pharmaceuticals, Inc. * 1,100 21,637
Pfizer, Inc. 10,600 267,756
-------------
289,393
ELECTRIC UTILITIES 7.2%
- -----------------------------------------------------------------
Alliant Energy Corp. 600 26,892
American Electric Power Co.,
Inc. 1,500 73,125
Edison International 1,100 54,043
Entergy Corp. 800 83,936
FPL Group, Inc. 1,400 85,638
Northeast Utilities 450 14,746
Pepco Holdings, Inc. 190 5,514
PG&E Corp. 1,300 62,751
Pinnacle West Capital Corp. 500 24,125
Xcel Energy, Inc. 1,700 41,973
-------------
472,743
FINANCIAL INVESTMENTS 1.0%
- -----------------------------------------------------------------
CIT Group, Inc. 900 47,628
Rent-A-Center, Inc. * 200 5,596
United Rentals, Inc. * 400 11,000
-------------
64,224
FOREST PRODUCTS & PAPER 0.9%
- -----------------------------------------------------------------
International Paper Co. 1,690 61,516
FURNITURE & HOUSEHOLD ITEMS 1.0%
- -----------------------------------------------------------------
Hasbro, Inc. 760 21,751
Mattel, Inc. 1,600 44,112
-------------
65,863
GAS & OTHER PUBLIC UTILITIES 0.4%
- -----------------------------------------------------------------
Allied Waste Industries, Inc.
* 1,100 13,849
Atmos Energy Corp. 400 12,512
-------------
26,361
HEALTH CARE & HOSPITAL 0.3%
- -----------------------------------------------------------------
Health Net, Inc. * 300 16,143
LifePoint Hospitals, Inc. * 100 3,822
-------------
19,965
INFORMATION & SERVICES 1.3%
- -----------------------------------------------------------------
Convergys Corp. * 700 17,787
Deluxe Corp. 300 10,059
Expedia, Inc. * 600 13,908
IAC/InterActive Corp. * 520 19,609
Manpower, Inc. 300 22,131
-------------
83,494
INSTRUMENTS 0.3%
- -----------------------------------------------------------------
Honeywell International, Inc. 400 18,424
INSURANCE 9.5%
- -----------------------------------------------------------------
Alleghany Corp. * 133 49,539
American International Group,
Inc. 1,300 87,386
CNA Financial Corp. * 300 12,927
Genworth Financial, Inc.,
Class A 1,750 61,145
Loews Corp. 1,800 81,774
</Table>
See financial notes.
40 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Radian Group, Inc. 320 17,562
The Allstate Corp. 1,900 114,114
The Hartford Financial
Services Group, Inc. 1,000 95,580
The Travelers Cos., Inc. 2,100 108,717
-------------
628,744
INTEGRATED OIL COMPANIES 11.5%
- -----------------------------------------------------------------
Chevron Corp. 1,500 110,940
ConocoPhillips 3,000 205,050
Exxon Mobil Corp. 3,600 271,620
Hess Corp. 1,000 55,470
Marathon Oil Corp. 1,200 118,596
-------------
761,676
IT HARDWARE 0.4%
- -----------------------------------------------------------------
Atmel Corp. * 808 4,064
Novellus Systems, Inc. * 380 12,168
Vishay Intertechnology, Inc.
* 700 9,786
-------------
26,018
LAND & WATER TRANSPORTATION 1.3%
- -----------------------------------------------------------------
CSX Corp. 800 32,040
Overseas Shipholding Group,
Inc. 200 12,520
Ryder System, Inc. 300 14,802
SEACOR Holdings, Inc. * 120 11,808
YRC Worldwide, Inc. * 300 12,066
-------------
83,236
MAINFRAME & MINICOMPUTERS 0.2%
- -----------------------------------------------------------------
Sun Microsystems * 2,700 16,227
METAL PRODUCTS & MACHINERY 5.0%
- -----------------------------------------------------------------
AGCO Corp. * 500 18,485
Cummins, Inc. 188 27,207
General Electric Co. 3,600 127,296
Procter & Gamble Co. 1,700 107,372
SPX Corp. 270 18,954
Terex Corp. * 400 28,704
-------------
328,018
MISCELLANEOUS FINANCE 10.1%
- -----------------------------------------------------------------
A.G. Edwards, Inc. 60 4,151
Citigroup, Inc. 4,100 210,494
JPMorgan Chase & Co. 3,200 154,816
Merrill Lynch & Co., Inc. 1,600 130,672
Morgan Stanley 1,300 102,388
The Goldman Sachs Group, Inc. 300 61,989
-------------
664,510
OIL & COAL RESOURCES 1.3%
- -----------------------------------------------------------------
Apache Corp. 1,200 84,840
OIL DISTRIBUTION 0.5%
- -----------------------------------------------------------------
Tesoro Corp. 330 33,142
OIL DRILLING & SERVICES 0.5%
- -----------------------------------------------------------------
Pride International, Inc. * 300 9,030
Rowan Cos., Inc. 300 9,741
Tidewater, Inc. 300 17,574
-------------
36,345
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PUBLISHING, BROADCASTING & CINEMA 3.9%
- -----------------------------------------------------------------
CBS Corp., Class B 2,500 76,475
Gannett Co., Inc. 1,000 56,290
Time Warner, Inc. 6,200 122,264
-------------
255,029
REAL ESTATE DEVELOPMENT 0.3%
- -----------------------------------------------------------------
Service Corp. International 1,400 16,604
REAL ESTATE INVESTMENT TRUSTS 0.8%
- -----------------------------------------------------------------
Colonial Properties Trust 300 13,701
HRPT Properties Trust 1,000 12,300
iStar Financial, Inc. 600 28,098
-------------
54,099
RESTAURANTS, HOTELS & THEATERS 2.1%
- -----------------------------------------------------------------
CBRL Group, Inc. 104 4,815
McDonald's Corp. 3,000 135,150
-------------
139,965
RETAIL 4.5%
- -----------------------------------------------------------------
Dillard's, Inc., Class A 300 9,819
J.C. Penney Co., Inc. 800 65,728
OfficeMax, Inc. 350 18,459
RadioShack Corp. 210 5,677
Safeway, Inc. 1,700 62,288
Saks, Inc. 100 2,084
Sears Holdings Corp. * 400 72,064
The Kroger Co. 2,161 61,048
-------------
297,167
SOFTWARE 2.9%
- -----------------------------------------------------------------
Cadence Design Systems, Inc.
* 500 10,530
Computer Sciences Corp. * 690 35,970
Electronic Data Systems Corp. 1,500 41,520
First American Corp. 400 20,288
International Business
Machines Corp. 600 56,556
Sybase, Inc. * 500 12,640
Synopsys, Inc. * 610 16,000
-------------
193,504
TEXTILES & APPAREL 0.3%
- -----------------------------------------------------------------
Liz Claiborne, Inc. 500 21,425
WHOLESALE 0.5%
- -----------------------------------------------------------------
Arrow Electronics, Inc. * 550 20,763
Avnet, Inc. * 400 14,456
-------------
35,219
--------------
TOTAL COMMON STOCK (COST $5,574,417) 6,576,131
--------------
- -----------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 03/31/07 the tax basis cost of the fund's investments was $5,591,895, and the
unrealized appreciation and depreciation were $1,008,226 and ($23,990),
respectively, with a net unrealized appreciation of $984,236.
* Non-income producing security.
See financial notes.
Laudus Funds Annual Report 41
LAUDUS ROSENBERG U.S. DISCOVERY FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
99.3% COMMON STOCK 761,034,449 928,439,355
0.8% SHORT-TERM INVESTMENT 7,521,000 7,521,000
- -----------------------------------------------------------------
100.1% TOTAL INVESTMENTS 768,555,449 935,960,355
7.8% COLLATERAL INVESTED FOR
SECURITIES ON LOAN 72,805,635 72,805,635
(7.9)% OTHER ASSETS AND
LIABILITIES (73,536,081)
- -----------------------------------------------------------------
100.0% NET ASSETS 935,229,909
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 99.3% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 1.7%
- -----------------------------------------------------------------
Corn Products International,
Inc. 118,749 4,226,277
Flowers Foods, Inc. (a) 122,995 3,710,759
Imperial Sugar Co. (a) 4,730 158,597
J & J Snack Foods Corp. 10,871 429,296
Lancaster Colony Corp. 14,462 639,076
Lance, Inc. (a) 26,304 532,393
Omega Protein Corp. * 7,400 51,652
Penford Corp. 12,479 251,327
Ralcorp Holdings, Inc. (a)* 26,810 1,723,883
Seaboard Corp. 1,200 2,712,000
Seneca Foods Corp., Class B * 1,000 28,060
Tasty Baking Co. 22,514 196,547
The Hain Celestial Group, Inc.
(a)* 39,507 1,187,976
The Topps Co., Inc. 720 6,998
---------------
15,854,841
AIRLINES 1.2%
- -----------------------------------------------------------------
ABX Air, Inc. 4,149 28,421
AirNet Systems, Inc. * 11,970 38,424
Alaska Air Group, Inc. (a)* 113,932 4,340,809
Pinnacle Airlines Corp. (a)* 12,726 220,032
Republic Airways Holdings, Inc.
* 58,174 1,335,675
SkyWest, Inc. (a) 194,541 5,219,535
---------------
11,182,896
AUTOS 1.0%
- -----------------------------------------------------------------
Aftermarket Technology Corp. * 21,412 519,883
Autoliv, Inc. (a) 143,282 8,182,835
Spartan Motors, Inc. (a) 25,401 589,557
Supreme Industries, Inc., Class
A 18,670 109,220
---------------
9,401,495
BANKS & CREDIT INSTITUTIONS 2.4%
- -----------------------------------------------------------------
1st Independence Financial
Group, Inc. 98 1,657
Advanta Corp., Class A 9,700 388,776
Advanta Corp., Class B 31,231 1,369,167
American National Bankshares,
Inc. 100 2,289
Ameris Bancorp (a) 6,732 164,799
BancFirst Corp. (a) 4,300 199,305
Banco Latinoamericano de
Exportaciones, S.A., Class E 6,120 101,837
Banner Corp. (a) 2,998 124,567
Bar Harbor Bankshares 717 23,231
Berkshire Hills Bancorp, Inc. 1,170 39,370
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Beverly Hills Bancorp, Inc. 42,948 326,405
BNCCorp, Inc. * 1,910 31,420
BOE Financial Services of
Virginia, Inc. 100 3,126
Britton & Koontz Capital Corp. 526 9,994
Camco Financial Corp. 100 1,284
Capital Bank Corp. 703 12,127
Carolina Bank Holdings, Inc. * 300 4,800
Carver Bancorp, Inc. 1,400 23,450
Central Bancorp, Inc. 1,000 30,450
Centrue Financial Corp. 4,068 78,797
CFS Bancorp, Inc. (a) 5,162 77,378
Citizens Holdings Co. 700 15,288
Citizens South Banking Corp. 650 8,119
Codorus Valley Bancorp, Inc. 210 3,996
Community Bank Shares of
Indiana, Inc. 4,277 92,918
Community Capital Corp. 3,009 60,767
Community Financial Corp. 1,720 20,881
Community Shores Bank Corp. * 1,430 17,689
Community West Bancshares 4,594 72,677
CompuCredit Corp. (a)* 4,730 147,671
Consumer Portfolio Services,
Inc. * 3,517 21,630
Cowlitz Bancorp * 1,500 25,500
Delta Financial Corp. (a) 11,568 95,667
Desert Community Bank 1,200 22,800
Dollar Financial Corp. (a)* 49,579 1,254,349
Elmira Savings Bank, FSB 529 14,008
Evans Bancorp, Inc. (a) 940 18,330
Exchange National Bancshares,
Inc. 8,042 291,120
Federal Agricultural Mortgage
Corp., Class C (a) 27,230 740,656
Fidelity Southern Corp. 2,725 51,884
First Bancorp of Indiana, Inc. 1,455 25,608
First Bancshares, Inc. 960 16,200
First BancTrust Corp. 5,645 66,780
First Capital, Inc. 990 17,800
First Citizens BancShares, Inc.,
Class A 2,580 518,580
First Defiance Financial Corp. 4,070 116,809
First Federal Bancshares of
Arkansas, Inc. 7,300 172,572
First Federal Bankshares, Inc. 2,400 51,480
First Financial Service Corp. 400 11,476
First Franklin Corp. 3,251 56,892
First M&F Corp. 6,200 114,080
First PacTrust Bancorp, Inc. 190 4,903
First Place Financial Corp. 34,952 749,720
First Regional Bancorp (a)* 20,515 609,295
First United Corp. 4,965 111,712
First West Virginia Bancorp,
Inc. 3,300 66,825
FNB Corp. of North Carolina 5,628 94,269
FNB Corp. of Virginia (a) 5,596 200,505
FNB Financial Services Corp. 725 11,114
Franklin Bank Corp. (a)* 47,190 843,285
GB&T Bancshares, Inc. 1,420 25,745
Glen Burnie Bancorp 480 8,556
GS Financial Corp. 1,310 26,888
Guaranty Federal Bancshares,
Inc. 2,370 69,441
Habersham Bancorp, Inc. 7,400 169,830
</Table>
See financial notes.
42 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
HF Financial Corp. 5,526 100,849
HMN Financial, Inc. 2,097 70,962
Home Federal Bancorp 1,618 47,278
Hopfed Bancorp, Inc. 675 10,776
Horizon Bancorp 3,511 94,481
Intervest Bancshares Corp. * 10,144 291,133
Irwin Financial Corp. 1,770 32,993
ITLA Capital Corp. 11,140 579,503
Lakeland Financial Corp. (a) 1,065 24,176
Leesport Financial Corp. 4,446 96,123
LSB Bancshares, Inc. (a) 17,500 256,375
LSB Financial Corp. 4,725 124,929
MASSBANK Corp. 10,420 341,776
Meta Financial Group, Inc. 140 4,410
MFB Corp. 2,000 67,200
MidWestOne Financial Group, Inc. 10,600 185,182
Monroe Bancorp 113 1,957
MutualFirst Financial, Inc. 164 3,228
New Hampshire Thrift Bancshares,
Inc. 1,200 18,756
Northeast Bancorp 1,200 22,380
Northrim BanCorp, Inc. 1,816 53,663
Northway Financial, Inc. 1,400 45,703
OceanFirst Financial Corp. (a) 8,943 155,161
PAB Bankshares, Inc. 2,510 44,578
Pacific Premier Bancorp, Inc. * 147 1,588
Park Bancorp, Inc. 905 30,883
Parkvale Financial Corp. 9,402 274,632
Peoples Bancorp of North
Carolina 10,242 274,486
Peoples Bancorp, Inc. 500 9,793
Peoples BancTrust Co., Inc. 932 17,736
Peoples Community Bancorp, Inc. 1,155 19,612
Pinnacle Bancshares, Inc. 1,600 24,168
Premier Financial Bancorp, Inc. 200 3,254
Provident Financial Holdings,
Inc. 12,970 356,934
Republic First Bancorp, Inc. * 19,331 248,983
Royal Bancshares of
Pennsylvania, Class A (a) 734 17,433
Shore Bancshares, Inc. (a) 10,911 288,596
Simmons First National Corp.,
Class A (a) 8,190 246,273
South Street Financial Corp. 133 1,137
Southern Missouri Bancorp, Inc. 100 1,545
Southwest Bancorp, Inc. 17,960 461,392
Sterling Financial Corp.
Pennsylvania 10,381 230,458
Team Financial, Inc. 1,050 15,908
Teche Holding Co. 1,000 44,200
TF Financial Corp. 2,600 79,300
the First Marblehead Corp. (a) 123,946 5,563,936
The Washington Savings Bank,
F.S.B 9,870 83,895
Timberland Bancorp, Inc. 1,076 37,929
United Bancshares, Inc. 1,140 18,434
United Community Financial Corp.
(a) 28,767 317,875
United Security Bancshares, Inc.
(a) 972 28,606
Unity Bancorp, Inc. 6,347 75,275
Wainwright Bank & Trust Co. 2,683 34,289
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Willow Financial Bancorp, Inc.
(a) 1,449 18,692
WSFS Financial Corp. 10,177 656,213
WVS Financial Corp. (a) 1,900 32,680
---------------
22,340,251
BASIC MINERALS & METALS 4.2%
- -----------------------------------------------------------------
Allegheny Technologies, Inc. 36,410 3,884,583
Brush Engineered Materials, Inc.
(a)* 1,680 81,430
Carpenter Technology Corp. 66,000 7,970,160
Chaparral Steel Co. 72,133 4,195,977
Cleveland-Cliffs, Inc. (a) 510 32,645
Commercial Metals Co. (a) 44,855 1,406,204
CommScope, Inc. (a)* 1,250 53,625
Friedman Industries, Inc. 12,690 117,255
General Cable Corp. (a)* 53,069 2,835,477
Harsco Corp. 71,092 3,189,187
Northwest Pipe Co. * 21,700 864,311
OM Group, Inc. * 54,500 2,435,060
Reliance Steel & Aluminum Co.
(a) 105,580 5,110,072
Southern Copper Corp. (a) 1,000 71,660
Steel Dynamics, Inc. (a) 53,716 2,320,531
Superior Essex, Inc. (a)* 43,445 1,506,238
Titanium Metals Corp. * 81,349 2,918,802
---------------
38,993,217
BEER, LIQUOR, & TOBACCO 0.1%
- -----------------------------------------------------------------
Alliance One International, Inc.
(a)* 99,240 915,985
MGP Ingredients, Inc. (a) 16,606 338,264
---------------
1,254,249
BIOTECHNOLOGY 0.1%
- -----------------------------------------------------------------
Digene Corp. (a)* 16,518 700,528
Harvard Bioscience, Inc. * 5,680 27,378
---------------
727,906
CELLULAR & WIRELESS 0.7%
- -----------------------------------------------------------------
NII Holdings, Inc. (a)* 88,200 6,542,676
USA Mobility, Inc. (a)* 2,830 56,402
---------------
6,599,078
CHEMICALS & RUBBER 3.2%
- -----------------------------------------------------------------
A. Schulman, Inc. 24,933 587,421
Arch Chemicals, Inc. 52,590 1,641,860
Bairnco Corp. 7,950 106,928
Celanese Corp., Series A 28,130 867,529
CF Industries Holdings, Inc. 130,946 5,047,968
FMC Corp. 127,152 9,591,075
Hercules, Inc. * 113,530 2,218,376
Innospec, Inc. 18,998 1,095,045
Landec Corp. (a)* 52,550 745,159
LSB Industries, Inc. (a)* 39,420 613,769
Nalco Holding Co. (a) 15,000 358,500
NewMarket Corp. 43,630 1,774,432
Pioneer Cos., Inc. * 3,529 97,542
PolyOne Corp. (a)* 62,548 381,543
Stepan Co. (a) 20,720 543,900
Terra Industries, Inc. (a)* 153,988 2,694,790
</Table>
See financial notes.
Laudus Funds Annual Report 43
LAUDUS ROSENBERG U.S. DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
The Scotts Miracle-Gro Co.,
Class A (a) 20,120 885,884
Tronox, Inc., Class A (a) 13,170 189,648
---------------
29,441,369
COMMERCIAL AIRCRAFT & COMPONENTS 0.4%
- -----------------------------------------------------------------
Ducommun, Inc. * 2,230 57,378
Sequa Corp., Class A (a)* 11,240 1,346,215
Triumph Group, Inc. (a) 35,450 1,961,803
---------------
3,365,396
COMMUNICATIONS UTILITIES 1.8%
- -----------------------------------------------------------------
Alaska Communication Systems
Group, Inc. (a) 7,770 114,607
Atlantic Tele-Network, Inc. 4,505 117,716
CenturyTel, Inc. 73,218 3,308,721
CT Communications, Inc. (a) 56,678 1,365,940
D&E Communications, Inc. 38,728 515,857
General Communication, Inc.,
Class A (a)* 145,010 2,030,140
Gilat Satellite Networks Ltd. * 93,665 772,736
Golden Telecom, Inc. (a) 16,900 935,922
Harris Stratex Networks, Inc.,
Class A (a)* 509 9,768
HickoryTech Corp. 3,704 25,669
Level 3 Communications, Inc.
(a)* 677,055 4,130,035
Mediacom Communications Corp.,
Class A * 173,991 1,416,287
PAETEC Holding Corp. (a)* 2,882 30,203
Premiere Global Services, Inc. * 3,980 44,656
United Online, Inc. (a) 126,665 1,777,110
---------------
16,595,367
CONSTRUCTION & HOMEBUILDING 1.3%
- -----------------------------------------------------------------
Comfort Systems USA, Inc. 118,521 1,419,882
EMCOR Group, Inc. (a) 82,200 4,848,156
Granite Construction, Inc. (a) 34,230 1,891,550
Horizon Offshore, Inc. * 1,348 19,492
Infrasource Services, Inc. * 13,410 409,407
Insituform Technologies, Inc.,
Class A (a)* 46,353 963,679
Meadow Valley Corp. * 10,385 134,590
Perini Corp. 68,490 2,524,541
Skyline Corp. 7,960 268,570
U.S. Home Systems, Inc. * 3,095 39,461
---------------
12,519,328
CONSTRUCTION MATERIALS 1.1%
- -----------------------------------------------------------------
Ameron International Corp. 4,430 291,760
Martin Marietta Materials, Inc. 1,070 144,664
MDU Resources Group, Inc. 337,697 9,705,412
Oil-Dri Corp. of America 10,000 167,000
Patrick Industries, Inc. * 14,395 172,596
Rock of Ages Corp. * 1,430 7,036
Texas Industries, Inc. (a) 80 6,042
United States Lime & Minerals,
Inc. * 4,400 135,344
---------------
10,629,854
CONSUMER DURABLES 0.1%
- -----------------------------------------------------------------
Universal Electronics, Inc. * 44,109 1,228,877
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
DRUGS & PHARMACEUTICALS 1.9%
- -----------------------------------------------------------------
Geopharma, Inc. * 3,710 16,324
King Pharmaceuticals, Inc. (a)* 331,715 6,524,834
Natural Alternative
International, Inc. * 16,211 130,012
NBTY, Inc. (a)* 154,015 8,168,955
Nutraceutical International
Corp. * 500 8,250
Perrigo Co. (a) 102,609 1,812,075
Schiff Nutrition International,
Inc. * 16,960 116,515
Sciele Pharma, Inc. (a) 32,054 759,039
Theragenics Corp. * 1,930 12,082
---------------
17,548,086
ELECTRIC UTILITIES 4.6%
- -----------------------------------------------------------------
Alliant Energy Corp. (a) 210,823 9,449,087
Central Vermont Public Service
Corp. 2,820 81,272
CH Energy Group, Inc. (a) 5,376 261,758
Cleco Corp. 121,670 3,142,736
Northeast Utilities (a) 307,247 10,068,484
OGE Energy Corp. 101,090 3,922,292
Pepco Holdings, Inc. 232,550 6,748,601
Pinnacle West Capital Corp. 3,436 165,787
Portland General Electric Co.
(a) 5,860 171,112
Puget Energy, Inc. 26,570 682,318
Unisource Energy Corp. 46,280 1,737,814
Unitil Corp. 2,580 70,099
Westar Energy, Inc. (a) 239,343 6,586,719
---------------
43,088,079
FINANCIAL INVESTMENTS 0.6%
- -----------------------------------------------------------------
Aaron Rents, Inc. (a) 13,580 359,055
Ampal-American Israel Corp.,
Class A * 3,260 14,311
California First National
Bancorp 2,138 28,115
Compass Diversified Trust (a) 1,203 20,174
ePlus, Inc. * 17,060 181,689
Jackson Hewitt Tax Service, Inc. 38,728 1,246,267
KMG America Corp. * 2,690 12,455
Marvel Entertainment, Inc. (a)* 1,100 30,525
MVC Capital, Inc. * 340 5,321
PICO Holdings, Inc. (a)* 17,159 732,861
Rent-A-Center, Inc. * 21,081 589,846
SRS Labs, Inc. * 9,758 135,929
Trinity Industries, Inc. (a) 45,542 1,909,121
UTEK Corp. (a) 18,150 239,580
Willis Lease Finance Corp. (a)* 21,670 223,418
---------------
5,728,667
FOREST PRODUCTS & PAPER 0.1%
- -----------------------------------------------------------------
CSS Industries, Inc. 4,100 153,668
Lydall, Inc. * 41,980 667,062
Nashua Corp. * 5,700 50,730
Packaging Corp. of America 5,450 132,980
Rock-Tenn Co., Class A 340 11,288
---------------
1,015,728
FURNITURE & HOUSEHOLD ITEMS 2.6%
- -----------------------------------------------------------------
A.T. Cross Co., Class A * 3,803 33,466
Acuity Brands, Inc. 56,600 3,081,304
AEP Industries, Inc. * 19,703 847,229
</Table>
See financial notes.
44 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
AZZ, Inc. * 6,530 274,260
Bassett Furniture Industries,
Inc. 16,230 238,906
Chase Corp. 1,300 42,263
Communications Systems, Inc. 10,040 104,215
Constar International, Inc. (a)* 31,440 278,244
Ethan Allen Interiors, Inc. (a) 111,939 3,955,924
Flexsteel Industries, Inc. 100 1,534
GameTech International, Inc. * 31,230 381,631
Genlyte Group, Inc. * 1,894 133,622
Griffon Corp. (a)* 93,640 2,317,590
Hasbro, Inc. 620 17,744
Herman Miller, Inc. 76,755 2,570,525
Hillenbrand Industries, Inc. (a) 4,600 273,102
Hooker Furniture Corp. 160 3,208
JAKKS Pacific, Inc. (a)* 71,809 1,716,235
K2, Inc. * 11,580 140,002
La-z-boy, Inc. (a) 102,239 1,265,719
Mity Enterprises, Inc. * 610 11,651
Movado Group, Inc. (a) 61,330 1,806,169
National Presto Industries, Inc.
(a) 13,510 832,756
Preformed Line Products Co. (a) 4,200 155,358
RC2 Corp. * 10,300 416,017
Spartech Corp. 10,040 294,574
Steelcase Inc., Class A 96,773 1,924,815
Thomas & Betts Corp. * 16,592 810,021
Tredegar Corp. 800 18,232
UFP Technologies, Inc. * 2,270 10,624
Virco Manufacturing Corp. * 920 6,210
West Pharmaceutical Services,
Inc. (a) 3,740 173,648
---------------
24,136,798
GAS & OTHER PUBLIC UTILITIES 1.1%
- -----------------------------------------------------------------
American States Water Co. (a) 9,740 359,114
Artesian Resources Corp., Class
A 5,942 122,405
California Water Service Group 14,674 562,308
Clean Harbors, Inc. (a)* 7,403 334,764
Delta Natural Gas Co., Inc. 6,223 155,575
Energy West, Inc. 210 2,992
Florida Public Utilities Co. 8,640 107,136
Industrial Services of America,
Inc. (a)* 900 5,985
Nicor, Inc. (a) 108,740 5,265,191
RGC Resources, Inc. 3,037 86,099
SJW Corp. (a) 28,840 1,167,443
Southern Union Co. 9,513 289,100
The Laclede Group, Inc. (a) 21,350 663,558
Waste Industries USA, Inc. (a) 24,567 674,855
WGL Holdings, Inc. (a) 18,750 599,625
---------------
10,396,150
GOVERNMENT AIRCRAFT & DEFENSE 0.7%
- -----------------------------------------------------------------
Armor Holdings, Inc. (a)* 90,824 6,115,180
HEALTH CARE & HOSPITAL 1.7%
- -----------------------------------------------------------------
Almost Family, Inc. * 12,800 318,720
Amedisys, Inc. (a)* 30,540 990,412
American Shared Hospital
Services 13,430 79,237
AMERIGROUP Corp. * 3,970 120,688
Gentiva Health Services, Inc. * 32,300 651,491
Hanger Orthopedic Group, Inc. * 6,240 72,821
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
IntegraMed America, Inc. * 7,255 108,462
Kindred Healthcare, Inc. (a)* 26,460 867,359
Manor Care, Inc. (a) 164,193 8,925,531
MedCath Corp. * 26,177 714,632
MEDTOX Scientific, Inc. * 17,670 325,128
National Dentex Corp. * 5,840 82,227
National Healthcare Corp. (a) 19,244 981,059
NovaMed, Inc. * 33,749 218,694
Res-Care, Inc. * 67,585 1,182,738
---------------
15,639,199
INFORMATION & SERVICES 5.6%
- -----------------------------------------------------------------
Ablest, Inc. * 1,510 11,151
ABM Industries, Inc. (a) 720 19,001
Bioanalytical Systems, Inc. * 410 2,759
Carriage Services, Inc. (a)* 8,870 71,758
Cass Information Systems, Inc.
(a) 112 3,781
CDI Corp. (a) 38,539 1,114,548
Ceridian Corp. * 7,450 259,558
Convergys Corp. * 92,740 2,356,523
Corrections Corp. of America
(a)* 144,667 7,639,864
CPI Corp. 20,200 1,060,702
Ecology & Environment, Inc. 4,050 48,114
Exponent, Inc. * 49,520 987,924
Forrester Research, Inc. * 40,484 1,148,126
Gartner, Inc. (a)* 18,350 439,483
ICT Group, Inc. (a)* 21,617 378,298
Jones Lang LaSalle, Inc. (a) 6,467 674,379
Kelly Services, Inc., Class A
(a) 69,460 2,236,612
Layne Christensen Co. (a)* 27,595 1,005,010
Metal Management, Inc. 86,840 4,012,008
Monro Muffler Brake, Inc. 26,447 928,290
MPS Group, Inc. * 191,574 2,710,772
National Technical Systems, Inc.
* 12,880 78,182
Nobel Learning Communities, Inc.
* 16,300 246,782
PAREXEL International Corp. (a)* 82,787 2,977,848
PDI, Inc. * 10,824 103,045
RCM Technologies, Inc. * 10,095 71,977
Schnitzer Steel Industries,
Inc., Class A 63,781 2,562,083
Security National Financial
Corp., Class A * 1,515 7,196
Spherion Corp. * 157,600 1,390,032
SRI/Surgical Express, Inc. * 8,659 43,641
Stewart Enterprises, Inc., Class
A (a) 327,992 2,643,616
TeleTech Holdings, Inc. (a)* 108,755 3,990,221
The Dun & Bradstreet Corp. 55,770 5,086,224
URS Corp. * 115,565 4,921,913
Viad Corp. 14,850 573,210
Volt Information Sciences, Inc.
(a)* 37,339 977,908
Westaff, Inc. (a)* 1,580 9,038
---------------
52,791,577
INSTRUMENTS 5.1%
- -----------------------------------------------------------------
1-800 CONTACTS, Inc. * 640 10,752
Align Technology, Inc. (a)* 8,898 141,122
Allied Healthcare Products, Inc.
* 19,700 119,283
Angeion Corp. * 10,614 156,026
Astro-Med, Inc. 8,726 95,986
</Table>
See financial notes.
Laudus Funds Annual Report 45
LAUDUS ROSENBERG U.S. DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Atrion Corp. 1,111 102,012
Bio-Rad Laboratories, Inc.,
Class A * 11,950 834,588
Bruker BioSciences Corp. * 62,386 656,301
Cholestech Corp. * 5,079 87,562
Coherent, Inc. (a)* 102,561 3,255,286
Data I/O Corp. * 200 712
Datascope Corp. (a) 33,275 1,204,222
Esterline Technologies Corp.
(a)* 7,530 309,257
FARO Technologies, Inc. * 7,410 213,927
Fei Co. (a) 43,119 1,554,871
Hurco Cos., Inc. * 16,570 710,024
Immucor, Inc. 160,642 4,727,694
Input/Output, Inc. (a) 143,980 1,984,044
K-Tron International, Inc. * 2,400 172,152
Mesa Laboratories, Inc. 2,188 41,474
Mettler-Toledo International,
Inc. * 6,864 614,808
MOCON, Inc. 3,253 41,834
New Brunswick Scientific Co.,
Inc. * 7,124 57,491
O.I. Corp. 4,685 53,760
Oakley, Inc. 31,259 629,556
Orthofix International N.V. * 8,913 455,009
OSI Systems, Inc. (a)* 16,160 427,270
Perceptron, Inc. * 21,070 189,630
PerkinElmer, Inc. 268,401 6,500,672
Span-America Medical Systems,
Inc. 7,600 120,916
Steris Corp. (a) 130,985 3,478,962
Teleflex, Inc. 128,880 8,772,862
Tollgrade Communications, Inc. * 31,031 389,749
Trimble Navigation Ltd. * 42,930 1,152,241
Universal Security Instruments,
Inc. (a)* 6,959 239,042
Varian, Inc. * 35,430 2,064,152
Viasys Healthcare, Inc. (a)* 97,900 3,327,621
Vicon Industries, Inc. * 2,890 28,756
Vital Signs, Inc. (a) 9,168 476,553
Waters Corp. * 4,030 233,740
Zoll Medical Corp * 60,998 1,625,597
Zygo Corp. * 39,407 630,906
---------------
47,888,422
INSURANCE 8.7%
- -----------------------------------------------------------------
Alleghany Corp. (a)* 653 243,886
American Equity Investment Life
Holding Co. 38,260 502,354
American Financial Group, Inc. 263,059 8,954,528
American National Insurance Co. 15,033 1,923,172
American Physicians Service
Group, Inc. * 7,700 135,866
American Safety Insurance
Holdings Ltd. * 3,490 66,519
Arch Capital Group Ltd. * 119,186 8,129,677
Argonaut Group, Inc. * 12,667 409,904
Aspen Insurance Holdings Ltd. 230,904 6,051,994
Baldwin & Lyons, Inc., Class B
(a) 4,275 108,799
Delphi Financial Group, Inc.,
Class A 17,699 712,031
Endurance Specialty Holdings
Ltd. (a) 182,800 6,533,272
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FBL Financial Group, Inc., Class
A (a) 1,300 50,869
Great American Financial
Resources, Inc. 26,160 640,397
Harleysville Group, Inc. (a) 4,070 132,234
HCC Insurance Holdings, Inc. (a) 36,400 1,121,120
Horace Mann Educators Corp. 94,580 1,943,619
Investors Title Co. 2,411 121,346
IPC Holdings Ltd. (a) 78,436 2,262,879
Kansas City Life Insurance Co.
(a) 7,343 330,435
Max Re Capital Ltd. 110,101 2,805,373
Meadowbrook Insurance Group,
Inc. (a)* 48,311 530,938
Mercer Insurance Group, Inc. 6,190 123,119
National Western Life Insurance
Co., Class A * 3,398 831,830
NYMAGIC, Inc. (a) 13,390 546,981
Odyssey Re Holdings Corp. (a) 3,390 133,261
Old Republic International Corp.
(a) 154,760 3,423,291
Partnerre Ltd. (a) 109,440 7,501,017
Philadelphia Consolidated
Holding Corp. (a)* 114,626 5,042,398
Presidential Life Corp. 42,187 831,928
ProCentury Corp. (a) 36,600 849,120
Radian Group, Inc. 63,642 3,492,673
Reinsurance Group of America,
Inc. (a) 96,640 5,578,061
RenaissanceRe Holdings Ltd. (a) 101,076 5,067,951
RTW, Inc. * 1,900 15,523
Selective Insurance Group, Inc.
(a) 20,374 518,722
The Midland Co. (a) 5,465 231,825
Unico American Corp. * 10,910 138,230
United America Indemnity Ltd.,
Class A * 26,483 614,406
Wesco Financial Corp. 2,110 970,600
Zenith National Insurance Corp.
(a) 43,815 2,071,135
---------------
81,693,283
IT HARDWARE 5.0%
- -----------------------------------------------------------------
Advanced Energy Industries, Inc.
(a)* 78,821 1,658,394
Amtech Systems, Inc. (a)* 3,460 25,189
Aviza Technology, Inc. * 4,884 35,214
Avocent Corp. (a)* 15,873 428,095
AVX Corp. (a) 38,310 582,312
Axcelis Technologies, Inc. (a)* 3,140 23,990
CTS Corp. 51,835 716,360
Cymer, Inc. * 35,067 1,457,034
Digi International, Inc. (a)* 7,050 89,535
EMS Technologies, Inc. * 40,545 781,302
Espey Manufacturing &
Electronics Corp. 3,600 70,740
Exar Corp. * 107,321 1,420,930
Globecomm Systems, Inc. * 28,188 301,612
Harmonic, Inc. * 430 4,223
Imation Corp. 110,998 4,482,099
Integrated Device Technology,
Inc. * 100,246 1,545,793
inTEST Corp. * 4,286 19,287
</Table>
See financial notes.
46 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Kimball International, Inc.,
Class B (a) 768 14,807
Lattice Semiconductor Corp. * 860 5,031
LSI Logic Corp. (a)* 996,444 10,402,875
Merix Corp. (a)* 4,860 39,949
MKS Instruments, Inc. (a)* 65,943 1,682,865
ON Semiconductor Corp. (a)* 28,827 257,137
Oplink Communications, Inc. * 48,891 878,571
Pericom Semiconductor Corp. (a)* 38,051 372,139
RF Micro Devices, Inc. (a)* 553,980 3,451,295
Rudolph Technologies, Inc. (a)* 73,598 1,283,549
Semitool, Inc. (a)* 76,033 988,429
SonicWALL, Inc. (a)* 202,447 1,692,457
Spectrum Control, Inc. * 31,270 384,621
Standard Microsystems Corp. * 26,903 821,618
Technitrol, Inc. 152,370 3,990,570
Viasat, Inc. (a) 1,820 60,005
Vishay Intertechnology, Inc.
(a)* 513,840 7,183,483
White Electronic Designs Corp. * 2,198 14,639
---------------
47,166,149
LAND & WATER TRANSPORTATION 1.0%
- -----------------------------------------------------------------
B & H Ocean Carriers Ltd. * 2,390 43,737
GulfMark Offshore, Inc. * 10,294 449,333
Hub Group, Inc., Class A * 14,316 415,021
International Shipholding Corp.
* 1,400 25,704
Pacer International, Inc. (a) 15,112 407,117
Saia, Inc. * 4,276 101,555
SEACOR Holdings, Inc. (a)* 53,626 5,276,799
Trico Marine Services, Inc. (a)* 20,120 749,671
U.S. Xpress Enterprises, Inc.,
Class A * 28,389 489,994
Werner Enterprises, Inc. (a) 67,702 1,230,145
---------------
9,189,076
MAINFRAME & MINICOMPUTERS 0.1%
- -----------------------------------------------------------------
Omnicell, Inc. * 63,800 1,334,696
METAL PRODUCTS & MACHINERY 3.8%
- -----------------------------------------------------------------
AGCO Corp. (a)* 69,895 2,584,018
Allied Motion Technologies, Inc.
* 6,681 42,692
Astec Industries, Inc. * 52,700 2,121,175
Baldor Electric Co. (a) 2,800 105,672
Bonso Electronic International,
Inc. 11,533 47,170
Brooks Automation, Inc. (a)* 6,050 103,758
Chart Industries, Inc. * 2,593 47,089
Chicago Rivet & Machine Co. 420 9,303
CompX International, Inc. 5,800 93,554
Eastern Co. 13,940 378,889
Electro Scientific Industries,
Inc. (a)* 22,909 440,769
EnPro Industries, Inc. * 64,300 2,318,015
Evans & Sutherland Computer
Corp. * 6,153 19,382
FSI International, Inc. (a)* 60 268
Gardner Denver, Inc. * 40,940 1,426,759
Gerber Scientific, Inc. (a)* 76,620 812,938
Goodman Global, Inc. (a)* 333 5,867
Hardinge, Inc. 10,201 266,858
Kadant, Inc. * 50,900 1,290,824
Kennametal, Inc. 45,109 3,049,820
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Key Technology, Inc. * 420 6,636
Lincoln Electric Holdings, Inc.
(a) 16,908 1,007,040
Littelfuse, Inc. * 320 12,992
Material Sciences Corp. * 38,892 388,142
MFRI, Inc. * 5,616 104,121
Newport Corp. (a) 14,260 233,436
NN, Inc. (a) 10,609 132,506
Nordson Corp. (a) 1,390 64,579
North American Galvanizing &
Coatings, Inc. * 21,162 108,349
P & F Industries, Inc., Class A
* 3,250 40,690
Powell Industries, Inc. (a)* 1,720 55,040
Q.E.P. Co., Inc. * 1,679 10,091
Regal Beloit Corp. (a) 76,330 3,540,185
Robbins & Myers, Inc. (a) 39,480 1,472,209
Rofin-Sinar Technologies, Inc. * 720 42,610
RTI International Metals, Inc.
(a)* 7,370 670,744
SL Industries, Inc. * 10,470 157,574
SPX Corp. 38,000 2,667,600
Standex International Corp. (a) 16,690 475,832
Tennant Co. 5,920 186,421
The L.S. Starrett Co., Class A 5,020 90,491
The Manitowoc Co., Inc. 10,258 651,691
The Middleby Corp. (a)* 866 114,173
Twin Disc, Inc. 3,360 143,472
Varian Semiconductor Equipment
Associates, Inc. (a)* 67,562 3,606,460
Veeco Instruments, Inc. (a) 93,254 1,818,453
Velcro Industries N.V. 17,743 306,776
Watts Water Technologies, Inc.,
Class A (a) 18,593 707,092
Woodward Governor Co. 26,610 1,095,534
---------------
35,075,759
MISCELLANEOUS FINANCE 2.7%
- -----------------------------------------------------------------
A.G. Edwards, Inc. 199,160 13,777,889
Cohen & Steers, Inc. 2,090 90,037
Knight Capital Group, Inc.,
Class A (a)* 348,063 5,513,318
Raymond James Financial, Inc. 128,265 3,817,166
SWS Group, Inc. (a) 63,156 1,566,900
Value Line, Inc. (a) 2,407 115,055
---------------
24,880,365
OIL & COAL RESOURCES 0.6%
- -----------------------------------------------------------------
Mariner Energy, Inc. * 183,266 3,505,879
Rosetta Resources, Inc. (a)* 46,922 963,778
Teton Energy Corp. * 99,210 480,176
Unit Corp. (a)* 11,920 603,033
---------------
5,552,866
OIL DISTRIBUTION 0.7%
- -----------------------------------------------------------------
Adams Resources & Energy, Inc. 9,259 339,435
Tesoro Corp. (a) 28,607 2,873,001
Western Refining, Inc. (a) 78,272 3,054,174
World Fuel Services Corp. 13,170 609,244
---------------
6,875,854
OIL DRILLING & SERVICES 2.5%
- -----------------------------------------------------------------
Atwood Oceanics, Inc. * 84,700 4,971,043
Basic Energy Services, Inc. (a)* 15,260 355,558
Dawson Geophysical Co. * 300 14,859
</Table>
See financial notes.
Laudus Funds Annual Report 47
LAUDUS ROSENBERG U.S. DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Global Industries Ltd. * 15,370 281,117
Helmerich & Payne, Inc. 16,980 515,173
Lufkin Industries, Inc. (a) 29,340 1,648,321
Superior Energy Services, Inc. * 137,442 4,737,626
T-3 Energy Services, Inc * 4,800 96,576
Tidewater, Inc. (a) 181,780 10,648,673
W-H Energy Services, Inc. * 2,870 134,144
---------------
23,403,090
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.8%
- -----------------------------------------------------------------
Baldwin Technology Co., Inc.,
Class A * 43,210 216,050
Key Tronic Corp. (a)* 10,258 42,058
Komag, Inc. (a)* 47,800 1,564,494
Printronix, Inc. 380 5,263
STEC, Inc. (a)* 124,954 879,676
VASCO Data Security
International, Inc. * 346 6,183
VeriFone Holdings, Inc. (a)* 139,919 5,139,225
---------------
7,852,949
PUBLISHING, BROADCASTING & CINEMA 0.4%
- -----------------------------------------------------------------
Alloy, Inc. * 1,920 22,810
Bowne & Co., Inc. 21,340 335,678
Champion Industries, Inc. (a) 7,808 64,494
Franklin Covey Co. * 53,390 421,781
Media General, Inc., Class A (a) 8,270 315,583
Regent Communications, Inc. (a)* 12,716 40,946
Scholastic Corp. * 61,124 1,900,956
Source Interlink Cos., Inc. (a)* 46,766 313,800
Tufco Technologies, Inc. * 2,242 18,317
World Wrestling Entertainment,
Inc., Class A 4,630 75,469
---------------
3,509,834
REAL ESTATE DEVELOPMENT 0.4%
- -----------------------------------------------------------------
American Spectrum Realty, Inc. * 300 8,106
AMREP Corp. (a)* 4,645 358,826
Avatar Holdings, Inc. (a)* 10,709 765,051
ILX Resorts, Inc. 5,160 47,988
J.W. Mays, Inc. * 500 10,750
Service Corp. International 166,230 1,971,488
Stratus Properties, Inc. * 710 23,870
United Capital Corp. * 8,880 302,897
Wellsford Real Properties, Inc.
* 16,610 129,807
---------------
3,618,783
REAL ESTATE INVESTMENT TRUSTS 6.5%
- -----------------------------------------------------------------
American Campus Communities,
Inc. (a) 3,710 112,376
American First Apartment
Investors, Inc. (a) 1,300 26,377
Ashford Hospitality Trust 145,500 1,737,270
Associated Estates Realty Corp. 57,780 814,120
CBL & Associates Properties,
Inc. 110 4,932
Digital Realty Trust, Inc. 7,480 298,452
Eagle Hospitality Properties
Trust, Inc. (a) 61,950 690,742
Extra Space Storage, Inc. (a) 159,071 3,012,805
Franklin Street Properties Corp.
(a) 20,210 387,628
Gladstone Commercial Corp. 2,710 54,336
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Highland Hospitality Corp. 158,943 2,829,185
Home Properties, Inc. 26,000 1,373,060
HRPT Properties Trust (a) 655,080 8,057,484
Innkeepers USA Trust 20,575 334,961
iStar Financial, Inc. 87,767 4,110,129
Kite Realty Group Trust (a) 26,350 525,682
Lasalle Hotel Properties (a) 94,270 4,370,357
LTC Properties, Inc. 32,580 844,148
Medical Properties Trust, Inc.
(a) 136,000 1,997,840
Mission West Properties, Inc. 33,650 486,579
Monmouth Capital Corp. 3,030 16,756
Monmouth Real Estate Investment
Corp., Class A 56,990 491,254
National Retail Properties, Inc. 136,288 3,296,807
Omega Healthcare Investor, Inc. 166,890 2,862,163
One Liberty Properties, Inc. 26,650 607,886
Ramco-Gershenson Properties
Trust 18,900 674,919
Republic Property Trust (a) 29,910 343,666
Spirit Finance Corp. 248,567 3,703,648
Strategic Hotel & Resorts, Inc. 204,986 4,688,030
Sunstone Hotel Investors, Inc. 211,391 5,762,519
Supertel Hospitality, Inc. 31,979 244,000
Urstadt Biddle Properties, Inc.,
Class A 2,780 54,377
Weingarten Realty Investors (a) 79,557 3,783,731
Winston Hotels, Inc. 77,944 1,171,498
Winthrop Realty Trust 122,391 809,005
---------------
60,578,722
RESTAURANTS, HOTELS & THEATERS 3.1%
- -----------------------------------------------------------------
Analogic Corp. 14,289 898,492
Avalon Holdings Corp., Class A * 1,600 12,752
Benihana, Inc. * 7,446 210,350
Bob Evans Farms, Inc. (a) 34,884 1,288,964
Brinker International, Inc. 135,899 4,443,897
Buffalo Wild Wings, Inc. (a)* 2,248 143,198
Burger King Holdings, Inc. 77,770 1,679,832
CBRL Group, Inc. (a) 109,064 5,049,663
CEC Entertainment, Inc. * 6,340 263,364
Churchill Downs, Inc. 1,000 45,390
Dollar Thrifty Automotive Group,
Inc. (a)* 760 38,790
Flanigan's Enterprises, Inc. * 931 10,288
Friendly Ice Cream Corp. * 5,860 87,138
Frisch's Restaurants, Inc. (a) 4,660 174,750
Interstate Hotels & Resorts,
Inc. * 96,200 607,022
J. Alexander's Corp. 10,580 116,909
Jack in the Box, Inc. * 41,287 2,854,170
Live Nation, Inc. * 182,508 4,026,126
Marcus Corp. 43,460 1,010,880
Mexican Restaurants, Inc. * 8,834 84,718
Nathan's Famous, Inc. * 5,324 79,860
O'Charley's, Inc. * 280 5,401
Red Lion Hotels Corp. * 34,520 429,429
Silverleaf Resorts, Inc. * 49,240 228,474
Speedway Motorsports, Inc. (a) 35,510 1,376,012
Star Buffet, Inc. 3,900 32,565
The Steak n Shake Co. * 4,170 69,931
Vail Resorts, Inc. (a)* 64,440 3,501,025
---------------
28,769,390
</Table>
See financial notes.
48 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
RETAIL 6.0%
- -----------------------------------------------------------------
1-800-FLOWERS.COM, Inc., Class A
(a)* 80,900 629,402
American Eagle Outfitters, Inc.
(a) 88,200 2,645,118
Arden Group, Inc., Class A (a) 220 29,370
Big Lots, Inc. (a)* 339,606 10,622,876
Books-A-Million, Inc. (a) 9,862 140,435
Cabela's, Inc. * 72,470 1,797,981
CarMax, Inc. * 25,160 617,426
Cash America International, Inc. 38,880 1,594,080
Charlotte Russe Holding, Inc. 19,519 563,514
Charming Shoppes, Inc. (a)* 202,581 2,623,424
Collegiate Pacific, Inc. (a) 22,660 176,748
Cost-U-Less, Inc. * 7,770 69,852
Deb Shops, Inc. 3,806 103,067
Dick's Sporting Goods, Inc. * 2,170 126,424
Dillard's, Inc., Class A (a) 89,356 2,924,622
EZCORP, Inc., Class A * 113,106 1,666,051
First Cash Financial Services,
Inc. * 30,144 671,608
Gottschalks, Inc. * 22,237 317,322
GSI Commerce, Inc. (a)* 32,139 726,020
Hastings Entertainment, Inc.
(a)* 26,860 163,846
Haverty Furniture Cos., Inc. (a) 80,070 1,120,980
Ingles Markets, Inc., Class A 27,765 1,133,923
Insight Enterprises, Inc. (a)* 61,392 1,103,828
Jennifer Convertibles, Inc. * 1,290 6,011
Longs Drug Stores Corp. 105,930 5,470,225
Mothers Work, Inc. (a)* 800 26,512
OfficeMax, Inc. 47,051 2,481,470
PC Connection, Inc. (a)* 200 2,860
PC Mall, Inc. (a)* 32,090 319,937
RadioShack Corp. (a) 14,470 391,124
Restoration Hardware, Inc. (a)* 99,600 653,376
Retail Ventures, Inc. * 23,540 495,517
REX Stores Corp. * 10,920 178,651
Ruddick Corp. (a) 1,380 41,510
Rush Enterprises, Inc., Class A
(a)* 11,768 226,063
Rush Enterprises, Inc., Class B
* 32,497 588,521
Saks, Inc. * 120,361 2,508,323
Shoe Carnival, Inc. * 29,500 982,350
Shutterfly, Inc. * 6,190 99,288
Spartan Stores, Inc. 79,874 2,140,623
Systemax, Inc. (a)* 19,776 370,405
The Bon-Ton Stores, Inc. (a) 21,200 1,192,288
The Buckle, Inc. (a) 750 26,775
The Cato Corp., Class A (a) 86,060 2,012,943
The Great Atlantic & Pacific Tea
Co., Inc. * 59,400 1,970,892
The Men's Wearhouse, Inc. (a) 6,330 297,827
Trans World Entertainment Corp.
* 77,740 441,563
Village Super Market, Inc.,
Class A 1,000 95,490
Weis Markets, Inc. (a) 31,490 1,407,603
Zones, Inc. * 1,110 11,378
---------------
56,007,442
SOFTWARE 6.8%
- -----------------------------------------------------------------
American Software, Inc., Class A 16,950 136,447
Ansoft Corp. (a)* 25,060 792,898
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Aspen Technology, Inc. 48,660 632,580
Black Box Corp. (a) 47,851 1,748,475
Blackbaud, Inc. (a) 21,552 526,300
BMC Software, Inc. * 543,900 16,746,681
Captaris, Inc. * 56,771 328,704
CIBER, Inc. * 76,840 604,731
Computer Task Group, Inc. * 9,085 40,973
CSP, Inc. * 7,852 72,474
Edgewater Technology, Inc. (a)* 33,993 286,901
Emdeon Corp. (a) 734,728 11,116,435
First American Corp. 103,113 5,229,891
Goldleaf Financial Solutions,
Inc. * 8,400 55,272
Harris Interactive, Inc. (a)* 40,688 245,349
HMS Holdings Corp. (a)* 18,264 399,982
Inforte Corp. * 19,069 66,169
Keynote Systems, Inc. * 4,830 64,819
Lawson Software, Inc. (a) 99,063 801,420
Lightbridge, Inc. * 71,447 1,255,324
Mentor Graphics Corp. 5,060 82,680
Moldflow Corp. * 4,594 69,048
Move, Inc. * 10,710 59,333
Ness Technologies, Inc. * 1,832 23,413
NetManage, Inc. * 2,380 12,495
NetScout Systems, Inc. (a)* 23,411 211,870
PC-Tel, Inc. * 43,613 443,544
Perot Systems Corp., Class A * 208,860 3,732,328
SAVVIS, Inc. (a)* 95,731 4,583,600
SPSS, Inc. * 16,620 599,982
Sybase, Inc. * 243,961 6,167,334
Synopsys, Inc. (a)* 207,156 5,433,702
Syntel, Inc. (a) 14,401 498,995
Taleo Corp., Class A (a)* 41,470 687,573
TechTeam Global, Inc. * 1,210 15,125
THQ, Inc. * 360 12,308
TSR, Inc. 4,099 17,298
---------------
63,802,453
TEXTILES & APPAREL 3.3%
- -----------------------------------------------------------------
Crocs, Inc. (a)* 18,447 871,621
Culp, Inc. * 4,260 30,161
Cutter & Buck, Inc. 3,080 36,498
Decorator Industries, Inc. 3,640 25,480
G-III Apparel Group Ltd. * 39,740 757,047
Guess?, Inc. * 148,960 6,031,391
Interface, Inc., Class A 136,925 2,189,431
LaCrosse Footwear, Inc. * 2,350 36,190
Liz Claiborne, Inc. 47,686 2,043,345
Perry Ellis International, Inc.
* 26,890 860,211
Phillips-Van Heusen Corp. (a) 133,490 7,849,212
R.G. Barry Corp. * 6,730 70,127
Skechers U.S.A., Inc., Class A * 61,000 2,047,770
Steven Madden Ltd. 71,657 2,092,384
Stride Rite Corp. 105,567 1,624,676
The Gymboree Corp. * 61,560 2,466,709
Weyco Group, Inc. (a) 12,484 324,334
Wolverine World Wide, Inc. 48,120 1,374,788
---------------
30,731,375
WHOLESALE 3.6%
- -----------------------------------------------------------------
Anixter International, Inc. (a) 24,884 1,640,851
Applied Industrial Technologies,
Inc. 71,827 1,762,634
</Table>
See financial notes.
Laudus Funds Annual Report 49
LAUDUS ROSENBERG U.S. DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Arrow Electronics, Inc. * 247,291 9,335,235
Avnet, Inc. * 417,640 15,093,510
Brown Shoe Co., Inc. 61,905 2,600,010
Coast Distribution System, Inc. 10,030 77,732
Delta Apparel, Inc. 2,790 48,546
En Pointe Technologies, Inc. * 610 2,080
Huttig Building Products, Inc. * 13,618 82,389
IKON Office Solutions, Inc. 8,800 126,456
Industrial Distribution Group,
Inc. * 16,083 200,877
Kaman Corp. 2,762 64,382
Keystone Automotive Industries,
Inc. (a)* 7,287 245,572
Lawson Products, Inc. (a) 3,368 127,580
Man Sang Holdings, Inc. * 9,370 56,220
NACCO Industries, Inc., Class A 10,707 1,471,249
Park-Ohio Holdings Corp. (a)* 5,390 99,715
Richardson Electronics Ltd. 51,200 478,208
TESSCO Technologies, Inc. * 13,095 356,053
Traffix, Inc. 8,296 45,960
---------------
33,915,259
---------------
TOTAL COMMON STOCK (COST $761,034,449) 928,439,355
---------------
<Caption>
SECURITY FACE AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT 0.8% OF NET ASSETS
REPURCHASE AGREEMENT 0.8%
- -----------------------------------------------------------------
Fixed Income Clearing Corp.
dated 03/30/07, due 04/02/07
at 5.00%, with a maturity
value of $7,524,134 (fully
collateralized by Federal Home
Loan Bank with a value of
$7,671,563.) 7,521,000 7,521,000
---------------
TOTAL SHORT-TERM INVESTMENT
(COST $7,521,000) 7,521,000
- -----------------------------------------------------------------
END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was
$769,008,508 and the unrealized appreciation and depreciation
were $177,305,903 and ($10,354,056), respectively, with a net
unrealized appreciation of $166,951,847.
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COLLATERAL INVESTED FOR SECURITIES ON LOAN 7.8% OF NET ASSETS
State Street Navigator Security
Lending Prime Portfolio 72,805,635 72,805,635
- -----------------------------------------------------------------
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
</Table>
* Non-income producing security.
(a) All or a portion of this security is on loan.
See financial notes.
50 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
99.3% COMMON STOCK 767,896,335 1,010,613,511
--% SHORT-TERM INVESTMENT 501,000 501,000
- -----------------------------------------------------------------
99.3% TOTAL INVESTMENTS 768,397,335 1,011,114,511
8.9% COLLATERAL INVESTED FOR
SECURITIES ON LOAN 90,803,224 90,803,224
(8.2)% OTHER ASSETS AND
LIABILITIES (83,888,094)
- -----------------------------------------------------------------
100.0% NET ASSETS 1,018,029,641
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 99.3% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 1.9%
- ------------------------------------------------------------------
Flowers Foods, Inc. (a) 233,484 7,044,212
Imperial Sugar Co. (a) 11,360 380,901
J & J Snack Foods Corp. (a) 16,508 651,901
National Beverage Corp. (a)* 65,490 1,148,695
Penford Corp. 3,415 68,778
Seaboard Corp. (a) 4,460 10,079,600
Seneca Foods Corp., Class B * 400 11,224
Tasty Baking Co. (a) 470 4,103
-----------------
19,389,414
AIRLINES 1.8%
- ------------------------------------------------------------------
AirNet Systems, Inc. * 36,300 116,523
Alaska Air Group, Inc. (a)* 257,500 9,810,750
Pinnacle Airlines Corp. (a)* 10,710 185,176
Republic Airways Holdings, Inc.
(a)* 77,148 1,771,318
SkyWest, Inc. (a) 253,861 6,811,091
-----------------
18,694,858
AUTOS 0.3%
- ------------------------------------------------------------------
Aftermarket Technology Corp. * 95,219 2,311,917
Spartan Motors, Inc. (a) 15,951 370,223
Supreme Industries, Inc., Class
A (a) 17,130 100,211
-----------------
2,782,351
BANKS & CREDIT INSTITUTIONS 4.3%
- ------------------------------------------------------------------
1st Source Corp. 24,681 645,902
Advanta Corp., Class A 148,677 5,958,974
Advanta Corp., Class B 25,735 1,128,222
American Community Bancshares,
Inc. 8,100 91,530
Auburn National Bancorp, Inc. 100 2,888
BancFirst Corp. (a) 39,169 1,815,483
Bank of Granite Corp. (a) 953 17,078
BankUnited Financial Corp.,
Class A (a) 13,517 286,696
Banner Corp. 870 36,149
Berkshire Hills Bancorp, Inc.
(a) 3,079 103,608
Beverly Hills Bancorp, Inc. 138,600 1,053,360
BNCCorp, Inc. * 10,667 175,472
BOE Financial Services of
Virginia, Inc. 301 9,409
Britton & Koontz Capital Corp. 5,473 103,987
C&F Financial Corp. 180 7,911
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Camco Financial Corp. 540 6,934
Carrollton Bancorp 100 1,769
Carver Bancorp, Inc. 22,600 378,550
Central Bancorp, Inc. 320 9,744
Centrue Financial Corp. 12,120 234,764
CFS Bancorp, Inc. (a) 24,552 368,034
Codorus Valley Bancorp, Inc. 281 5,347
Community Bank Shares of
Indiana, Inc. 1,030 22,377
Community Capital Corp. 3,588 72,460
Community Financial Corp. 4,350 52,809
Community Shores Bank Corp. * 180 2,227
Community West Bancshares 11,100 175,602
CompuCredit Corp. (a)* 45,458 1,419,199
Consumer Portfolio Services,
Inc. * 39,625 243,694
Cooperative Bankshares, Inc. 433 7,123
Corus Bankshares, Inc. (a) 49,415 843,020
Cowlitz Bancorp * 36,907 627,419
Crescent Banking Co. 1,473 63,884
Delta Financial Corp. (a) 65,087 538,269
Desert Community Bank 39,358 747,802
Dollar Financial Corp. * 61 1,543
Downey Financial Corp. (a) 120 7,745
ECB Bancorp, Inc. 2,089 69,982
Elmira Savings Bank, FSB 11,999 317,734
Exchange National Bancshares,
Inc. 4,080 147,696
Farmers Capital Bank Corp. (a) 1,815 53,325
Federal Agricultural Mortgage
Corp., Class C (a) 34,590 940,848
Fidelity Bancorp, Inc. 60 1,116
Fidelity Southern Corp. 9,457 180,061
First Bancorp of Indiana, Inc. 3,391 59,682
First Bancshares, Inc. * 12,121 204,542
First BancTrust Corp. 12,550 148,467
First California Financial
Group, Inc. * 13,770 174,190
First Citizens BancShares,
Inc., Class A 13,450 2,703,450
First Defiance Financial Corp. 3,756 107,797
First Federal Bancshares of
Arkansas, Inc. 14,584 344,766
First Federal Bankshares, Inc. 5,999 128,679
First Financial Service Corp. 109 3,127
First Mariner Bancorp, Inc. * 4,540 69,008
First Place Financial Corp. 70,703 1,516,579
First Regional Bancorp (a)* 22,413 665,666
First West Virginia Bancorp,
Inc. 330 6,683
FNB Corp. of North Carolina 9,544 159,862
FNB Corp. of Virginia (a) 700 25,081
Franklin Bank Corp. (a)* 196,222 3,506,487
Glen Burnie Bancorp 360 6,417
Great Pee Dee Bancorp, Inc. 1,560 23,985
Greene County Bancshares, Inc. 108 3,662
GS Financial Corp. 8,660 177,746
Guaranty Federal Bancshares,
Inc. 4,019 117,757
Habersham Bancorp, Inc. 25,078 575,540
Hanmi Financial Corp. (a) 722 13,761
HF Financial Corp. 25,416 463,842
Hingham Institution for Savings 9,400 323,830
</Table>
See financial notes.
Laudus Funds Annual Report 51
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
HMN Financial, Inc. 17,130 579,679
Horizon Bancorp 6,123 164,770
Intervest Bancshares Corp. (a)* 39,259 1,126,733
Irwin Financial Corp. (a) 19,020 354,533
ITLA Capital Corp. 8,108 421,778
Lincoln Bancorp 2,000 37,900
LSB Financial Corp. 4,076 107,769
MASSBANK Corp. 12,262 402,194
Meta Financial Group, Inc. 2,000 63,000
MFB Corp. 3,400 114,240
MidWestOne Financial Group,
Inc. 22,442 392,062
Monarch Community Bancorp, Inc. 1,800 21,078
NBT Bancorp, Inc. 9,120 213,682
New Hampshire Thrift
Bancshares, Inc. 10,030 156,769
North Central Bancshares, Inc. 300 12,027
North Valley Bancorp 13,096 329,102
Northeast Bancorp 100 1,865
Northway Financial, Inc. 14,700 479,881
OceanFirst Financial Corp. 6,280 108,958
Park Bancorp, Inc. 12,608 430,248
Parkvale Financial Corp. 28,980 846,506
Peoples Bancorp of North
Carolina 1,599 42,853
Peoples Bancorp, Inc. 900 17,627
Peoples BancTrust Co., Inc. 14,700 279,741
Peoples Community Bancorp, Inc. 2,700 45,846
Pinnacle Bancshares, Inc. 1,830 27,642
Premier Financial Bancorp, Inc. 2,300 37,421
Princeton National Bancorp,
Inc. 157 4,710
Provident Community Bancshares,
Inc. 400 8,344
Provident Financial Holdings,
Inc. 40,331 1,109,909
QCR Holdings, Inc. (a) 4,225 65,319
Republic First Bancorp, Inc. * 34,597 445,609
Royal Bancshares of
Pennsylvania, Class A (a) 209 4,964
Sierra Bancorp (a) 3,090 86,705
Simmons First National Corp.,
Class A (a) 2,600 78,182
South Street Financial Corp. 393 3,360
Southern Missouri Bancorp, Inc. 12,548 193,867
Southwest Bancorp, Inc. 41,470 1,065,364
Team Financial, Inc. 16,278 246,612
Teche Holding Co. 3,900 172,380
TF Financial Corp. (a) 10,266 313,113
The Washington Savings Bank,
F.S.B. 12,850 109,225
Timberland Bancorp, Inc. 20,500 722,625
United Bancshares, Inc. 11,438 184,952
United Community Financial
Corp. (a) 25,781 284,880
United Security Bancshares,
Inc. (a) 1,180 34,727
Unity Bancorp, Inc. 14,004 166,087
Wainwright Bank & Trust Co. 52,304 668,445
Willow Financial Bancorp, Inc.
(a) 5,282 68,138
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
WSFS Financial Corp. 10,204 657,954
WVS Financial Corp. 252 4,334
-----------------
44,024,061
BASIC MINERALS & METALS 3.0%
- ------------------------------------------------------------------
AK Steel Holding Corp. * 37,200 870,108
Brush Engineered Materials,
Inc. (a)* 450 21,811
Chaparral Steel Co. 137,722 8,011,289
CommScope, Inc. (a)* 169,600 7,275,840
General Cable Corp. (a)* 49,733 2,657,234
Northwest Pipe Co. * 43,927 1,749,612
OM Group, Inc. (a)* 118,532 5,296,010
Superior Essex, Inc. (a)* 119,549 4,144,764
Synalloy Corp. 1,000 27,920
Universal Stainless & Alloy
Products, Inc. * 1,040 49,369
-----------------
30,103,957
BEER, LIQUOR, & TOBACCO 0.0%
- ------------------------------------------------------------------
MGP Ingredients, Inc. (a) 470 9,574
Universal Corp. (a) 300 18,405
-----------------
27,979
BIOTECHNOLOGY 0.3%
- ------------------------------------------------------------------
Applera Corp. -- Celera Group * 68,048 966,282
Digene Corp. (a)* 38,293 1,624,006
Harvard Bioscience, Inc. * 108,142 521,244
-----------------
3,111,532
CELLULAR & WIRELESS 0.0%
- ------------------------------------------------------------------
USA Mobility, Inc. (a) 21,910 436,666
CHEMICALS & RUBBER 2.8%
- ------------------------------------------------------------------
A. Schulman, Inc. (a) 323,637 7,624,888
Arch Chemicals, Inc. (a) 150,004 4,683,125
Bairnco Corp. 14,680 197,446
CF Industries Holdings, Inc.
(a) 174,494 6,726,744
Hercules, Inc. * 333,590 6,518,348
Innospec, Inc. 25,240 1,454,834
LSB Industries, Inc. (a)* 10,200 158,814
NewMarket Corp. 1,800 73,206
Stepan Co. (a) 20,920 549,150
Terra Industries, Inc. * 5,780 101,150
Tronox, Inc., Class A 26,270 378,288
-----------------
28,465,993
COMMERCIAL AIRCRAFT & COMPONENTS 0.3%
- ------------------------------------------------------------------
Ducommun, Inc. * 11,810 303,871
Sequa Corp., Class A (a)* 11,030 1,321,063
TransDigm Group, Inc. * 370 13,461
Triumph Group, Inc. (a) 28,340 1,568,336
-----------------
3,206,731
COMMUNICATIONS UTILITIES 2.7%
- ------------------------------------------------------------------
Atlantic Tele-Network, Inc. (a) 67,050 1,752,017
CT Communications, Inc. (a) 172,300 4,152,430
D&E Communications, Inc. 50,654 674,711
Gilat Satellite Networks Ltd. * 229,200 1,890,900
Golden Telecom, Inc. 168,629 9,338,674
Mediacom Communications Corp.,
Class A (a)* 297,967 2,425,451
</Table>
See financial notes.
52 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Premiere Global Services, Inc.
* 1,620 18,177
United Online, Inc. (a) 517,065 7,254,422
-----------------
27,506,782
CONSTRUCTION & HOMEBUILDING 1.2%
- ------------------------------------------------------------------
Comfort Systems USA, Inc. 164,100 1,965,918
EMCOR Group, Inc. (a)* 2,900 171,042
Horizon Offshore, Inc. (a)* 2,555 36,945
Infrasource Services, Inc. (a)* 7,290 222,564
Insituform Technologies, Inc.,
Class A (a)* 62,000 1,288,980
Meadow Valley Corp. (a)* 21,781 282,282
Perini Corp. (a)* 227,280 8,377,541
Skyline Corp. 5,230 176,460
U.S. Home Systems, Inc. * 1,465 18,679
-----------------
12,540,411
CONSTRUCTION MATERIALS 0.4%
- ------------------------------------------------------------------
Ameron International Corp. (a) 52,780 3,476,091
Continental Materials Corp.
(a)* 6,600 188,430
Oil-Dri Corp. of America 8,475 141,532
Patrick Industries, Inc. * 38,697 463,977
-----------------
4,270,030
CONSUMER DURABLES 0.3%
- ------------------------------------------------------------------
Universal Electronics, Inc. * 110,184 3,069,726
DRUGS & PHARMACEUTICALS 1.8%
- ------------------------------------------------------------------
E-Z-EM, Inc. * 13,463 216,485
Geopharma, Inc. * 11,115 48,906
Lifecore Biomedical, Inc. * 10 188
Natural Alternative
International, Inc. (a)* 35,826 287,325
NBTY, Inc. (a)* 115,753 6,139,539
Nutraceutical International
Corp. * 23,853 393,574
Perrigo Co. (a) 287,668 5,080,217
Schiff Nutrition International,
Inc. * 134,150 921,610
Sciele Pharma, Inc. (a)* 213,229 5,049,263
Theragenics Corp. * 6,950 43,507
-----------------
18,180,614
ELECTRIC UTILITIES 2.3%
- ------------------------------------------------------------------
Avista Corp. 95,316 2,309,507
Central Vermont Public Service
Corp. 2,560 73,779
CH Energy Group, Inc. 148,449 7,227,982
Cleco Corp. 1,560 40,295
El Paso Electric Co. * 21,110 556,248
Portland General Electric Co.
(a) 4,210 122,932
The Empire District Electric
Co. 13,010 322,648
UIL Holdings Corp. (a) 76,331 2,648,686
Unisource Energy Corp. (a) 262,613 9,861,118
Unitil Corp. 200 5,434
-----------------
23,168,629
FINANCIAL INVESTMENTS 1.4%
- ------------------------------------------------------------------
Aaron Rents, Inc. (a) 147,045 3,887,870
Ampal-American Israel Corp.,
Class A * 6,820 29,940
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
California First National
Bancorp (a) 36,431 479,068
Compass Diversified Trust 660 11,068
Electro Rent Corp. * 39,645 570,888
Enstar Group Ltd. (a)* 112 11,048
ePlus, Inc. * 30,534 325,187
Iconix Brand Group, Inc. (a)* 24,573 501,289
Jackson Hewitt Tax Service,
Inc. 89,046 2,865,500
KMG America Corp. * 56,250 260,437
Macrovision Corp. (a)* 9,669 242,208
MVC Capital, Inc. * 850 13,302
PICO Holdings, Inc. (a)* 51,670 2,206,826
Rent-A-Center, Inc. (a)* 45,052 1,260,555
SRS Labs, Inc. * 32,260 449,382
Willis Lease Finance Corp. * 77,928 803,438
-----------------
13,918,006
FOREST PRODUCTS & PAPER 0.6%
- ------------------------------------------------------------------
American Woodmark Corp. (a) 16,246 597,203
Cenveo, Inc. * 25,470 618,921
CSS Industries, Inc. 4,210 157,791
Lydall, Inc. * 84,410 1,341,275
Nashua Corp. * 2,410 21,449
Rock-Tenn Co., Class A (a) 99,600 3,306,720
-----------------
6,043,359
FURNITURE & HOUSEHOLD ITEMS 3.5%
- ------------------------------------------------------------------
A.T. Cross Co., Class A * 1,040 9,152
Acuity Brands, Inc. (a) 97,590 5,312,800
AEP Industries, Inc. (a)* 16,754 720,422
American Biltrite, Inc. * 19,310 179,776
Bassett Furniture Industries,
Inc. 103,716 1,526,700
Chase Corp. 8,700 282,837
Chromcraft Revington, Inc. * 45,690 439,538
Communications Systems, Inc. 59,900 621,762
Constar International, Inc.
(a)* 79,440 703,044
Ethan Allen Interiors, Inc. (a) 3,750 132,525
Flexsteel Industries, Inc. 20,710 317,691
GameTech International, Inc.
(a)* 13,009 158,970
Genlyte Group, Inc. (a)* 67,043 4,729,884
Griffon Corp. (a)* 187,234 4,634,042
Herman Miller, Inc. 5,770 193,237
Hooker Furniture Corp. (a) 23,269 466,543
JAKKS Pacific, Inc. (a)* 225,800 5,396,620
La-Z-Boy, Inc. (a) 19,570 242,277
Movado Group, Inc. (a) 175,100 5,156,695
National Presto Industries,
Inc. 14,390 887,000
Preformed Line Products Co. (a) 965 35,695
RC2 Corp. (a)* 193 7,795
Tredegar Corp. (a) 10,280 234,281
UFP Technologies, Inc. * 2,550 11,934
West Pharmaceutical Services,
Inc. (a) 67,873 3,151,343
-----------------
35,552,563
GAS & OTHER PUBLIC UTILITIES 0.6%
- ------------------------------------------------------------------
American States Water Co. (a) 5,880 216,796
Artesian Resources Corp., Class
A 6,890 141,934
Delta Natural Gas Co., Inc. 499 12,475
Energy West, Inc. 1,710 24,367
Florida Public Utilities Co. 600 7,440
</Table>
See financial notes.
Laudus Funds Annual Report 53
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Industrial Services of America,
Inc. (a)* 1,807 12,016
RGC Resources, Inc. 2,500 70,875
SJW Corp. (a) 30,240 1,224,115
The Laclede Group, Inc. (a) 72,850 2,264,178
Waste Industries USA, Inc. 43,974 1,207,966
WGL Holdings, Inc. (a) 31,220 998,416
-----------------
6,180,578
HEALTH CARE & HOSPITAL 1.8%
- ------------------------------------------------------------------
Almost Family, Inc. * 36,872 918,113
Amedisys, Inc. * 8,456 274,228
American Shared Hospital
Services 47,400 279,660
AMERIGROUP Corp. (a)* 34,550 1,050,320
Gentiva Health Services, Inc. * 64,929 1,309,618
Hanger Orthopedic Group, Inc. * 56,853 663,475
IntegraMed America, Inc. (a)* 27,516 411,364
Kindred Healthcare, Inc. (a)* 113,780 3,729,708
MedCath Corp. * 65,764 1,795,357
MEDTOX Scientific, Inc. * 12,950 238,280
National Dentex Corp. * 49,700 699,776
National Healthcare Corp. (a) 47,557 2,424,456
NovaMed, Inc. * 63,891 414,014
Psychemedics Corp. 28,614 485,007
Res-Care, Inc. (a)* 189,081 3,308,917
Sun Healthcare Group, Inc. * 5,560 68,666
-----------------
18,070,959
INFORMATION & SERVICES 7.3%
- ------------------------------------------------------------------
Ablest, Inc. * 2,560 18,906
Carriage Services, Inc. (a)* 42,150 340,993
CDI Corp. (a) 116,700 3,374,964
CPI Corp. (a) 10,520 552,405
Ecology & Environment, Inc. 25,210 299,495
Exponent, Inc. (a)* 105,200 2,098,740
Forrester Research, Inc. (a)* 28,431 806,303
ICT Group, Inc. (a)* 44,667 781,672
Infinity Pharmaceuticals, Inc.
(a)* 2,700 32,508
Kelly Services, Inc., Class A
(a) 223,895 7,209,419
Kendle International, Inc. (a)* 117,201 4,162,980
Kforce, Inc. * 7,320 100,796
Layne Christensen Co. (a)* 56,162 2,045,420
Metal Management, Inc. 143,095 6,610,989
Monro Muffler Brake, Inc. 99,882 3,505,858
MPS Group, Inc. (a)* 824,508 11,666,788
National Technical Systems,
Inc. * 9,626 58,430
Nobel Learning Communities,
Inc. * 4,980 75,397
Parexel International Corp.
(a)* 154,283 5,549,560
PDI, Inc. * 26,253 249,929
RCM Technologies, Inc. * 103,793 740,044
Schnitzer Steel Industries,
Inc., Class A (a) 175,191 7,037,422
Security National Financial
Corp., Class A * 39,411 187,202
Spherion Corp. (a)* 434,213 3,829,759
SRI/Surgical Express, Inc. * 3,322 16,743
Stewart Enterprises, Inc.,
Class A 113,957 918,493
TeleTech Holdings, Inc. (a)* 332,800 12,210,432
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
The Geo Group, Inc. * 1,230 55,744
Viad Corp. (a) 4,784 184,662
Volt Information Sciences, Inc.
(a)* 12,420 325,280
VSE Corp. 8,441 347,432
Westaff, Inc. (a)* 5,840 33,405
-----------------
75,428,170
INSTRUMENTS 4.4%
- ------------------------------------------------------------------
1-800 CONTACTS, Inc. (a)* 1,397 23,470
Allied Healthcare Products,
Inc. * 78,652 476,238
Angeion Corp. (a)* 28,109 413,202
Astro-Med, Inc. 14,800 162,800
Atrion Corp. 12,770 1,172,541
Bio-Rad Laboratories, Inc.,
Class A * 28,700 2,004,408
Bruker BioSciences Corp. (a)* 159,411 1,677,004
Cardiac Science Corp. * 210 1,922
Cholestech Corp. * 20,314 350,213
Coherent, Inc. (a)* 17,682 561,227
Datascope Corp. (a) 145,114 5,251,676
Enpath Medical, Inc. * 5,964 59,640
Esterline Technologies Corp.
(a)* 4,060 166,744
FEI Co. (a)* 152,673 5,505,388
Frequency Electronics, Inc. 1,450 15,834
Hurco Cos., Inc. (a)* 3,190 136,692
II-VI, Inc. (a)* 51,671 1,749,063
Immucor, Inc. (a)* 221,040 6,505,207
Input/Output, Inc. (a)* 100,848 1,389,686
IntriCon Corp. * 14,660 86,494
K-Tron International, Inc. * 25,210 1,808,313
Kewaunee Scientific Corp. 25,868 275,494
Mesa Laboratories, Inc. 1,700 32,224
New Brunswick Scientific Co.,
Inc. * 51,549 416,000
O.I. Corp. 29,264 335,804
Oakley, Inc. (a) 76,816 1,547,074
Orthofix International N.V. * 3,777 192,816
Perceptron, Inc. * 41,657 374,913
Schmitt Industries, Inc. * 6,864 52,304
Span-America Medical Systems,
Inc. 27,300 434,343
Tollgrade Communications, Inc.
* 4,094 51,421
Varian, Inc. * 9,496 553,237
Viasys Healthcare, Inc. * 273,560 9,298,304
Vicon Industries, Inc. * 35,120 349,444
Zoll Medical Corp. (a)* 38,504 1,026,132
Zygo Corp. * 5,686 91,033
-----------------
44,548,305
INSURANCE 8.1%
- ------------------------------------------------------------------
Affirmative Insurance Holdings,
Inc. 6,333 109,561
American Equity Investment Life
Holding Co. (a) 77,852 1,022,197
American Physicians Service
Group, Inc. * 22,300 393,483
American Safety Insurance
Holdings Ltd. * 76,900 1,465,714
Argonaut Group, Inc. (a)* 53,751 1,739,382
Delphi Financial Group, Inc.,
Class A 358,125 14,407,369
</Table>
See financial notes.
54 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FBL Financial Group, Inc.,
Class A 42,089 1,646,943
FPIC Insurance Group, Inc. (a)* 83,400 3,725,478
Great American Financial
Resources, Inc. (a) 84,200 2,061,216
Hallmark Financial Services,
Inc. * 6,562 79,006
Harleysville Group, Inc. (a) 22,319 725,144
Horace Mann Educators Corp. 402,421 8,269,752
IPC Holdings Ltd. (a) 307,576 8,873,568
Kansas City Life Insurance Co.
(a) 38,701 1,741,545
LandAmerica Financial Group,
Inc. (a) 88,698 6,555,669
Max Re Capital Ltd. 290,910 7,412,387
Meadowbrook Insurance Group,
Inc. (a)* 26,950 296,180
Mercer Insurance Group, Inc. 16,687 331,904
National Western Life Insurance
Co., Class A * 24,363 5,964,062
NYMAGIC, Inc. (a) 31,310 1,279,013
Ohio Casualty Corp. 950 28,453
Presidential Life Corp. 91,863 1,811,538
RTW, Inc. (a)* 36,000 294,120
SCPIE Holdings, Inc. (a)* 4,300 97,610
Selective Insurance Group, Inc.
(a) 102,434 2,607,970
The Midland Co. (a) 5,166 219,142
The Phoenix Cos., Inc. 96,637 1,341,322
Unico American Corp. * 50,686 642,192
United America Indemnity Ltd.,
Class A * 222,190 5,154,808
Wesco Financial Corp. 3,500 1,610,000
Zenith National Insurance Corp.
(a) 11,420 539,823
-----------------
82,446,551
IT HARDWARE 6.1%
- ------------------------------------------------------------------
AMIS Holdings, Inc. * 77,920 853,224
Amtech Systems, Inc. * 18,980 138,174
Avocent Corp. (a)* 99,343 2,679,281
Axcelis Technologies, Inc. (a)* 4 31
CTS Corp. (a) 23,900 330,298
Cymer, Inc. (a)* 40,468 1,681,445
Digi International, Inc. * 106,385 1,351,089
EMS Technologies, Inc. * 133,302 2,568,730
Espey Manufacturing &
Electronics Corp. 21,600 424,440
Exar Corp. (a)* 248,117 3,285,069
Globecomm Systems, Inc. * 50,780 543,346
Harmonic, Inc. * 19,801 194,446
Imation Corp. 259,730 10,487,897
inTEST Corp. * 9,170 41,265
Kimball International, Inc.,
Class B 2,041 39,350
Lattice Semiconductor Corp. * 105,047 614,525
Merix Corp. (a)* 134,189 1,103,034
Merrimac Industries, Inc. * 33,600 323,904
MKS Instruments, Inc. (a)* 282,773 7,216,367
Oplink Communications, Inc. * 76,544 1,375,496
Orbital Sciences Corp. (a)* 40,870 765,904
Pericom Semiconductor Corp. * 80,495 787,241
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
RF Micro Devices, Inc. (a)* 1,169,314 7,284,826
Rudolph Technologies, Inc. (a)* 158,589 2,765,792
Semitool, Inc. (a)* 168,552 2,191,176
SonicWALL, Inc. (a)* 36,309 303,543
Spectrum Control, Inc. * 95,516 1,174,847
Standard Microsystems Corp.
(a)* 105,865 3,233,117
Symmetricom, Inc. * 6,220 51,626
Technitrol, Inc. (a) 308,000 8,066,520
TriQuint Semiconductor, Inc. * 23,060 115,300
ViaSat, Inc. (a)* 7,370 242,989
White Electronic Designs Corp.
* 450 2,997
-----------------
62,237,289
LAND & WATER TRANSPORTATION 1.0%
- ------------------------------------------------------------------
B & H Ocean Carriers Ltd. * 10,410 190,503
GulfMark Offshore, Inc. (a)* 57,920 2,528,208
Hub Group, Inc., Class A * 119,247 3,456,971
International Shipholding Corp.
* 2,310 42,412
Pacer International, Inc. (a) 43,160 1,162,730
Saia, Inc. (a)* 96 2,280
Trico Marine Services, Inc.
(a)* 54,658 2,036,557
U.S. Xpress Enterprises, Inc.,
Class A (a)* 26,075 450,054
Werner Enterprises, Inc. (a) 400 7,268
-----------------
9,876,983
MAINFRAME & MINICOMPUTERS 0.2%
- ------------------------------------------------------------------
Omnicell, Inc. * 121,132 2,534,081
METAL PRODUCTS & MACHINERY 5.1%
- ------------------------------------------------------------------
Allied Motion Technologies,
Inc. * 44,926 287,077
Astec Industries, Inc. (a)* 20,930 842,432
Bonso Electronic International,
Inc. 51,296 209,801
Chicago Rivet & Machine Co. 5,110 113,187
CompX International, Inc. (a) 6,610 106,619
Eastern Co. 1,350 36,693
Electro Scientific Industries,
Inc. (a)* 200 3,848
EnPro Industries, Inc. (a)* 209,137 7,539,389
Evans & Sutherland Computer
Corp. * 63,701 200,658
EXX, Inc., Class A * 2,200 6,930
Gerber Scientific, Inc. (a)* 141,900 1,505,559
Hardinge, Inc. 85,092 2,226,007
Kadant, Inc. (a)* 57,470 1,457,439
Material Sciences Corp. * 7,310 72,954
MFRI, Inc. * 857 15,889
Newport Corp. (a)* 13,686 224,040
NN, Inc. (a) 9,761 121,915
North American Galvanizing &
Coatings, Inc. * 7,500 38,400
P & F Industries, Inc., Class A
* 9,350 117,062
Q.E.P. Co., Inc. * 7,748 46,565
Regal Beloit Corp. (a) 239,960 11,129,345
Robbins & Myers, Inc. (a) 21,170 789,429
Rofin-Sinar Technologies, Inc.
(a)* 5,702 337,444
RTI International Metals, Inc.
(a)* 14,740 1,341,487
Sauer-Danfoss, Inc. (a) 2,760 83,076
</Table>
See financial notes.
Laudus Funds Annual Report 55
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SL Industries, Inc. * 35,980 541,499
Standex International Corp. 88,160 2,513,442
Tech/Ops Sevcon, Inc. 300 2,055
The Middleby Corp. (a)* 17,271 2,277,009
Twin Disc, Inc. 63,000 2,690,100
Varian Semiconductor Equipment
Associates, Inc. (a)* 310 16,548
Veeco Instruments, Inc. (a)* 255,427 4,980,826
Velcro Industries N.V. 875 15,129
Watts Water Technologies, Inc.,
Class A 2,270 86,328
Woodward Governor Co. 253,722 10,445,735
-----------------
52,421,916
MISCELLANEOUS FINANCE 1.7%
- ------------------------------------------------------------------
Cohen & Steers, Inc. (a) 35,924 1,547,606
Knight Capital Group, Inc.,
Class A (a)* 703,373 11,141,428
SWS Group, Inc. (a) 184,828 4,585,583
-----------------
17,274,617
OIL & COAL RESOURCES 0.5%
- ------------------------------------------------------------------
Mariner Energy, Inc. (a)* 211,844 4,052,576
PrimeEnergy, Corp. (a)* 6,800 395,488
Rosetta Resources, Inc. (a)* 19,430 399,092
Teton Energy Corp. * 21,468 103,905
-----------------
4,951,061
OIL DISTRIBUTION 1.0%
- ------------------------------------------------------------------
Adams Resources & Energy, Inc. 32,070 1,175,686
Western Refining, Inc. (a) 229,511 8,955,519
-----------------
10,131,205
OIL DRILLING & SERVICES 1.7%
- ------------------------------------------------------------------
Atwood Oceanics, Inc. (a)* 75,560 4,434,616
Basic Energy Services, Inc.
(a)* 119,820 2,791,806
Bronco Drilling Co., Inc. (a)* 16,301 270,108
Dawson Geophysical Co. (a)* 54,968 2,722,565
Global Industries Ltd. (a)* 114,390 2,092,193
Lufkin Industries, Inc. (a) 70,856 3,980,690
Oil States International, Inc.
* 31,850 1,022,066
T-3 Energy Services, Inc * 2,535 51,004
W-H Energy Services, Inc. * 3,275 153,074
-----------------
17,518,122
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.4%
- ------------------------------------------------------------------
Baldwin Technology Co., Inc.,
Class A * 100,427 502,135
Interphase Corp. (a)* 18,740 209,138
Printronix, Inc. 51,505 713,344
STEC, Inc. (a)* 281,460 1,981,479
VASCO Data Security
International, Inc. (a)* 16,452 293,997
-----------------
3,700,093
PUBLISHING, BROADCASTING & CINEMA 1.1%
- ------------------------------------------------------------------
Alloy, Inc. * 7,070 83,992
Champion Industries, Inc. 20,690 170,899
Consolidated Graphics, Inc.
(a)* 620 45,911
Franklin Covey Co. (a)* 189,350 1,495,865
Media General, Inc., Class A
(a) 112,430 4,290,329
Regent Communications, Inc. * 24,014 77,325
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Scholastic Corp. * 92,658 2,881,664
Source Interlink Cos., Inc.
(a)* 260,720 1,749,431
Tufco Technologies, Inc. * 17,915 146,365
-----------------
10,941,781
REAL ESTATE DEVELOPMENT 0.7%
- ------------------------------------------------------------------
AMREP Corp. (a)* 29,256 2,260,026
Avatar Holdings, Inc. (a)* 36,534 2,609,989
ILX Resorts, Inc. 28,300 263,190
J.W. Mays, Inc. * 17,100 367,650
Stratus Properties, Inc. * 1,440 48,413
United Capital Corp. * 7,750 264,353
Wellsford Real Properties, Inc.
* 27,053 211,419
-----------------
6,025,040
REAL ESTATE INVESTMENT TRUSTS 6.3%
- ------------------------------------------------------------------
American Campus Communities,
Inc. (a) 6,160 186,586
Ashford Hospitality Trust (a) 479,346 5,723,391
Associated Estates Realty Corp.
(a) 22,680 319,561
Digital Realty Trust, Inc. (a) 10,611 423,379
Eagle Hospitality Properties
Trust, Inc. 41,223 459,636
Extra Space Storage, Inc. (a) 20,210 382,777
Franklin Street Properties
Corp. (a) 9,910 190,074
Gladstone Commercial Corp. 3,560 71,378
Highland Hospitality Corp. (a) 461,320 8,211,496
Innkeepers USA Trust 8,910 145,055
LaSalle Hotel Properties (a) 160,671 7,448,708
LTC Properties, Inc. (a) 187,670 4,862,530
Medical Properties Trust, Inc.
(a) 122,354 1,797,380
Mission West Properties, Inc. 113,700 1,644,102
Monmouth Capital Corp. 930 5,143
Monmouth Real Estate Investment
Corp., Class A 28,300 243,946
National Health Investors, Inc.
(a) 99,234 3,109,994
National Retail Properties,
Inc. 262,856 6,358,487
One Liberty Properties, Inc. 17,900 408,299
Presidential Realty Corp.,
Class B 650 4,891
Republic Property Trust 65,310 750,412
Spirit Finance Corp. 355,773 5,301,018
Strategic Hotel & Resorts, Inc.
(a) 176,464 4,035,732
Sunstone Hotel Investors, Inc. 301,683 8,223,879
Supertel Hospitality, Inc. 61,059 465,880
Winston Hotels, Inc. * 82,071 1,233,527
Winthrop Realty Trust 268,250 1,773,132
-----------------
63,780,393
RESTAURANTS, HOTELS & THEATERS 3.3%
- ------------------------------------------------------------------
Analogic Corp. 720 45,274
Ark Restaurants Corp. 29,872 1,011,765
Avalon Holdings Corp., Class A
* 1,360 10,839
Benihana, Inc. * 10,604 299,563
Benihana, Inc., Class A * 66,609 1,887,699
Bob Evans Farms, Inc. (a) 192,590 7,116,200
Buffalo Wild Wings, Inc. (a)* 2,343 149,249
CBRL Group, Inc. (a) 102,782 4,758,807
CEC Entertainment, Inc. * 1,620 67,295
Churchill Downs, Inc. (a) 1,640 74,440
</Table>
See financial notes.
56 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Friendly Ice Cream Corp. (a)* 18,220 270,931
Frisch's Restaurants, Inc. 27,500 1,031,250
Interstate Hotels & Resorts,
Inc. * 207,290 1,308,000
J. Alexander's Corp. 28,530 315,256
Live Nation, Inc. (a)* 171,850 3,791,011
Marcus Corp. 141,000 3,279,660
Max & Erma's Restaurants, Inc.
* 4,223 38,007
Mexican Restaurants, Inc. * 4,060 38,935
Nathan's Famous, Inc. * 35,277 529,155
Red Lion Hotels Corp. * 570 7,091
Silverleaf Resorts, Inc. * 7,300 33,872
Speedway Motorsports, Inc. 2,050 79,438
Star Buffet, Inc. 8,323 69,497
The Steak n Shake Co. (a)* 75,730 1,269,992
Trump Entertainment Resorts,
Inc. (a)* 14 253
Vail Resorts, Inc. (a)* 67,387 3,661,136
WMS Industries, Inc. * 68,113 2,672,754
-----------------
33,817,369
RETAIL 5.0%
- ------------------------------------------------------------------
1-800-FLOWERS.COM, Inc., Class
A (a)* 259,953 2,022,434
Books-A-Million, Inc. (a) 947 13,485
Cabela's, Inc. * 15,850 393,239
Cash America International,
Inc. (a) 59,621 2,444,461
Charlotte Russe Holding, Inc.
(a)* 86,398 2,494,310
Charming Shoppes, Inc. (a)* 12,036 155,866
Collegiate Pacific, Inc. (a) 45,230 352,794
Cost-U-Less, Inc. * 38,049 342,061
EZCORP, Inc., Class A (a)* 322,473 4,750,027
First Cash Financial Services,
Inc. * 12,810 285,407
Gottschalks, Inc. (a)* 35,030 499,878
GSI Commerce, Inc. (a)* 12,767 288,407
Hastings Entertainment, Inc. * 81,590 497,699
Haverty Furniture Cos., Inc.
(a) 113,134 1,583,876
Insight Enterprises, Inc. (a)* 186,747 3,357,711
Jennifer Convertibles, Inc. * 9,280 43,245
Longs Drug Stores Corp. (a) 116,293 6,005,371
Mothers Work, Inc. (a)* 3,434 113,803
Restoration Hardware, Inc. (a)* 260,753 1,710,540
Retail Ventures, Inc. (a)* 20,630 434,261
REX Stores Corp. * 51,540 843,194
Ruddick Corp. (a) 15,310 460,525
Rush Enterprises, Inc., Class A
(a)* 88,253 1,695,340
Rush Enterprises, Inc., Class B
* 12,100 219,131
Shoe Carnival, Inc. * 15,068 501,764
Spartan Stores, Inc. 168,244 4,508,939
Sport Chalet, Inc., Class A * 55,408 603,393
Sport Chalet, Inc., Class B * 4,499 48,567
Stage Stores, Inc. 115,824 2,699,857
Systemax, Inc. (a)* 37,588 704,023
The Bon-Ton Stores, Inc. (a) 51,900 2,918,856
The Great Atlantic & Pacific
Tea Co., Inc. (a)* 153,520 5,093,794
Trans World Entertainment Corp.
* 34,268 194,642
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Village Super Market, Inc.,
Class A (a) 17,092 1,632,115
Weis Markets, Inc. (a) 33,900 1,515,330
-----------------
51,428,345
SOAPS & COSMETICS 0.0%
- ------------------------------------------------------------------
Cascade International, Inc.
(a)(b)(c)* 39,200 --
SOFTWARE 7.8%
- ------------------------------------------------------------------
Allscripts Healthcare
Solutions, Inc. (a)* 153,350 4,111,313
American Software, Inc., Class
A (a) 221,600 1,783,880
Ansoft Corp. (a)* 91,080 2,881,771
Aspen Technology, Inc. (a)* 68,100 885,300
Black Box Corp. (a) 168,550 6,158,817
Blackbaud, Inc. (a) 1,116 27,253
Captaris, Inc. (a)* 181,333 1,049,918
CIBER, Inc. (a)* 98,220 772,991
Computer Task Group, Inc. * 61,378 276,815
CSP, Inc. (a)* 19,892 183,603
Edgewater Technology, Inc. (a)* 111,194 938,477
Goldleaf Financial Solutions,
Inc. * 18,800 123,704
Harris Interactive, Inc. (a)* 213,300 1,286,199
HMS Holdings Corp. (a)* 926 20,279
Inforte Corp. * 27,245 94,540
Interwoven, Inc. * 2,240 37,856
Keynote Systems, Inc. * 940 12,615
Lawson Software, Inc. (a)* 324,231 2,623,029
Lightbridge, Inc. * 115,724 2,033,271
Mentor Graphics Corp. (a)* 674,800 11,026,232
Moldflow Corp. * 91,950 1,382,008
Move, Inc. * 92,170 510,622
Ness Technologies, Inc. (a)* 21,474 274,438
NetManage, Inc. * 13,856 72,744
NetScout Systems, Inc. (a)* 87,319 790,237
PC-Tel, Inc. * 148,770 1,512,991
Perficient, Inc. (a)* 61,622 1,218,883
Perot Systems Corp., Class A
(a)* 715,100 12,778,837
Quality Systems, Inc. (a)* 28,200 1,128,000
Quest Software, Inc. (a)* 350 5,695
SAVVIS, Inc. (a)* 206,304 9,877,836
Smith Micro Software, Inc. (a)* 116,707 2,174,251
SPSS, Inc. (a)* 114,017 4,116,014
Sybase, Inc. (a)* 77,160 1,950,605
Syntel, Inc. (a) 15,749 545,703
Taleo Corp., Class A (a)* 114,580 1,899,736
Technology Solutions Co. * 2,559 19,986
TechTeam Global, Inc. * 21,882 273,525
The TriZetto Group, Inc. (a)* 72,436 1,449,444
THQ, Inc. * 17,056 583,145
TSR, Inc. 51,100 215,642
-----------------
79,108,205
TEXTILES & APPAREL 3.7%
- ------------------------------------------------------------------
Crocs, Inc. * 12,000 567,000
Culp, Inc. * 53,280 377,222
Cutter & Buck, Inc. 6,724 79,679
Deckers Outdoor Corp. * 49,850 3,540,347
</Table>
See financial notes.
Laudus Funds Annual Report 57
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Decorator Industries, Inc. 710 4,970
G-III Apparel Group Ltd. (a)* 75,640 1,440,942
Guess?, Inc. 244,900 9,916,001
Hallwood Group, Inc. (a)* 1,331 139,090
Interface, Inc., Class A 350,800 5,609,292
LaCrosse Footwear, Inc. * 1,188 18,295
Skechers U.S.A., Inc., Class A
* 71,390 2,396,562
Steven Madden Ltd. (a)* 145,039 4,235,139
Stride Rite Corp. (a) 80,480 1,238,587
The Gymboree Corp. * 147,350 5,904,315
UniFirst Corp. (a) 56,860 2,181,718
Weyco Group, Inc. 1,673 43,465
-----------------
37,692,624
WHOLESALE 2.6%
- ------------------------------------------------------------------
Agilysys, Inc. (a) 18,860 423,784
Applied Industrial
Technologies, Inc. (a) 16,365 401,597
Bell Microproducts, Inc. (a)* 1,385 8,864
Brown Shoe Co., Inc. (a) 285,870 12,006,540
Coast Distribution System, Inc. 28,890 223,898
Delta Apparel, Inc. 43,940 764,556
Huttig Building Products, Inc.
* 10,690 64,675
IKON Office Solutions, Inc. (a) 164,810 2,368,320
Industrial Distribution Group,
Inc. * 97,800 1,221,522
Kaman Corp. 9,140 213,053
Lawson Products, Inc. (a) 1,208 45,759
Man Sang Holdings, Inc. * 200 1,200
NACCO Industries, Inc., Class A
(a) 46,415 6,377,885
Nu Horizons Electronics Corp.
(a)* 41,750 439,627
Nu Skin Enterprises, Inc.,
Class A (a) 290 4,791
Park-Ohio Holdings Corp. * 600 11,100
Richardson Electronics Ltd. 24,740 231,072
TESSCO Technologies, Inc. * 43,821 1,191,493
Traffix, Inc. 1,160 6,426
-----------------
26,006,162
-----------------
TOTAL COMMON STOCK (COST $767,896,335) 1,010,613,511
-----------------
<Caption>
SECURITY FACE AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT 0.0% OF NET ASSETS
REPURCHASE AGREEMENT 0.0%
- ------------------------------------------------------------------
Fixed Income Clearing Corp.
dated 03/30/07, due 04/02/07
at 5.00%, with a maturity
value of $501,209 (fully
collateralized by Federal
National Mortgage Association
with a value of $513,825.) 501,000 501,000
-----------------
TOTAL SHORT-TERM INVESTMENT
(COST $501,000) 501,000
- ------------------------------------------------------------------
END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was
$768,875,666 and the unrealized gains and losses were $257,598,744
and ($15,359,899), respectively, with a net unrealized
appreciation of $242,238,845.
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COLLATERAL INVESTED FOR SECURITIES ON LOAN 8.9% OF NET ASSETS
State Street Navigator Security
Lending Prime Portfolio 90,803,224 90,803,224
- ------------------------------------------------------------------
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
</Table>
* Non-income producing security.
(a) All or a portion of this security is on loan.
(b) Fair-valued by management.
(c) Bankrupt security/delisted.
See financial notes.
58 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
97.9% COMMON STOCK 107,410,263 127,031,334
--% RIGHTS -- --
- -----------------------------------------------------------------
97.9% TOTAL INVESTMENTS 107,410,263 127,031,334
2.1% OTHER ASSETS AND
LIABILITIES 2,777,720
- -----------------------------------------------------------------
100.0% NET ASSETS 129,809,054
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 97.9% OF NET ASSETS
AUSTRALIA 5.7%
- -----------------------------------------------------------------
AIRLINES 0.1%
Qantas Airways Ltd. 50,100 212,112
BANKS & CREDIT INSTITUTIONS 2.0%
Australia and New Zealand Banking
Group Ltd. 31,100 746,297
Commonwealth Bank of Australia 18,400 747,085
National Australia Bank Ltd. 26,100 851,181
St. George Bank Ltd. 2,100 59,385
Westpac Banking Corp. 6,800 144,798
---------------
2,548,746
BASIC MINERALS & METALS 1.5%
BHP Billiton Ltd. 22,600 547,438
BlueScope Steel Ltd. 25,300 214,595
Felix Resources Ltd. 8,500 34,291
Independence Group NL 6,100 24,448
Jabiru Metals Ltd. * 5,700 5,714
Jubilee Mines NL 6,700 94,584
Kagara Zinc Ltd. 3,200 13,245
Minara Resources Ltd. 20,200 120,264
Mincor Resources NL 7,600 18,818
OneSteel Ltd. 18,785 78,245
Perilya Ltd. 10,900 31,782
Rio Tinto Ltd. 7,800 496,428
Sally Malay Mining Ltd. * 9,600 30,488
Smorgon Steel Group Ltd. 22,680 37,376
Zinifex Ltd. 20,600 262,185
---------------
2,009,901
BEER, LIQUOR, & TOBACCO 0.0%
Foster's Group Ltd. 6,000 33,192
Lion Nathan Ltd. 2,500 17,879
---------------
51,071
CELLULAR & WIRELESS 0.3%
Telstra Corp., Ltd. 91,000 343,317
CONSTRUCTION & HOMEBUILDING 0.1%
Leighton Holdings Ltd. 6,000 162,503
CONSTRUCTION MATERIALS 0.0%
Adelaide Brighton Ltd. 5,800 16,069
INFORMATION & SERVICES 0.0%
WorleyParsons Ltd. 2,000 44,567
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSURANCE 0.3%
Insurance Australia Group Ltd. 8,500 40,261
QBE Insurance Group Ltd. 6,900 175,743
Suncorp-Metway Ltd. 7,893 132,532
---------------
348,536
MISCELLANEOUS FINANCE 0.1%
ASX Ltd. 2,500 88,827
OIL DISTRIBUTION 0.0%
Caltex Australia Ltd. 700 13,467
PUBLISHING, BROADCASTING &
CINEMA 0.1%
West Australian Newspapers
Holdings Ltd. 6,100 77,013
REAL ESTATE DEVELOPMENT 0.2%
Lend Lease Corp., Ltd. 13,700 221,190
REAL ESTATE INVESTMENT TRUSTS 0.2%
Westfield Group 15,100 250,918
RESTAURANTS, HOTELS &
THEATERS 0.2%
Amalgamated Holdings Ltd. 2,575 13,520
TABCORP Holdings Ltd. 17,700 236,094
---------------
249,614
RETAIL 0.5%
Coles Group Ltd. 1,600 21,006
Goodman Fielder Ltd. 39,600 78,158
Woolworths Ltd. 23,800 522,646
---------------
621,810
WHOLESALE 0.1%
Sims Group Ltd. 5,300 99,904
---------------
7,359,565
AUSTRIA 0.9%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.1%
Boehler-Uddeholm AG 164 15,803
Voestalpine AG 1,212 87,944
---------------
103,747
COMMUNICATIONS UTILITIES 0.4%
Telekom Austria AG 20,000 502,548
FOREST PRODUCTS & PAPER 0.0%
Mayr-Melnhof Karton AG 103 22,993
REAL ESTATE DEVELOPMENT 0.4%
Conwert Immobilien Invest AG * 2,210 48,624
Immofinanz Immobilien Analagen AG
* 28,000 450,300
---------------
498,924
---------------
1,128,212
</Table>
See financial notes.
Laudus Funds Annual Report 59
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BELGIUM 1.8%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 1.3%
Fortis 36,400 1,663,599
INSTRUMENTS 0.1%
Agfa Gevaert N.V. 8,000 181,099
RESTAURANTS, HOTELS &
THEATERS 0.0%
S.A. D'Ieteren N.V. 117 48,202
RETAIL 0.4%
Delhaize Group 4,800 442,935
---------------
2,335,835
CHINA 0.1%
- -----------------------------------------------------------------
MISCELLANEOUS FINANCE 0.1%
BOC Hong Kong (Holdings) Ltd. 32,000 77,431
DENMARK 0.9%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.7%
Danske Bank A/S 19,477 902,914
BEER, LIQUOR, & TOBACCO 0.2%
Carlsberg A/S 2,418 262,692
---------------
1,165,606
FINLAND 1.0%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.2%
Outokumpu Oyj 7,200 247,829
CHEMICALS & RUBBER 0.1%
Kemira Oyj 8,967 205,225
FOREST PRODUCTS & PAPER 0.4%
UPM-Kymmene Oyj 21,692 554,090
IT HARDWARE 0.3%
Elcoteq Network Corp., Class A 1,600 16,873
Nokia Oyj 14,291 329,294
---------------
346,167
---------------
1,353,311
FRANCE 10.6%
- -----------------------------------------------------------------
AIRLINES 0.3%
Air France-KLM 8,400 384,202
AUTOS 1.2%
PSA Peugeot Citroen 9,600 676,885
Renault S.A. 7,300 855,546
Societe Fonciere Financiere et de
Participations (FFP) 270 74,252
---------------
1,606,683
BANKS & CREDIT INSTITUTIONS 1.1%
BNP Paribas 11,800 1,234,223
Societe Generale 1,000 172,909
---------------
1,407,132
BASIC MINERALS & METALS 0.0%
Nexans S.A. 280 37,259
CELLULAR & WIRELESS 1.1%
Vivendi 36,000 1,467,221
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CHEMICALS & RUBBER 0.6%
Compagnie Generale des
Etablissements Michelin, Class B 6,600 729,717
COMMUNICATIONS UTILITIES 0.6%
France Telecom S.A. 28,800 763,168
CONSTRUCTION MATERIALS 0.9%
Ciments Francais S.A. 417 88,758
Compagnie de Saint-Gobain 10,400 1,021,092
---------------
1,109,850
DRUGS & PHARMACEUTICALS 1.2%
Sanofi-Aventis 18,566 1,615,505
INSURANCE 0.3%
CNP Assurances 3,456 404,434
INTEGRATED OIL COMPANIES 0.5%
Total S.A. 8,700 607,790
IT HARDWARE 0.5%
Alcatel-Lucent 32,000 378,050
STMicroelectronics N.V. 12,423 239,209
---------------
617,259
METAL PRODUCTS & MACHINERY 0.1%
Valeo S.A. 3,200 188,235
MISCELLANEOUS FINANCE 1.0%
Credit Agricole S.A. 24,800 969,363
Natixis 12,101 296,218
---------------
1,265,581
PUBLISHING, BROADCASTING &
CINEMA 0.0%
Havas S.A. 1,726 9,984
REAL ESTATE DEVELOPMENT 0.0%
Fonciere des Regions 66 12,409
Nexity 142 12,201
---------------
24,610
RESTAURANTS, HOTELS &
THEATERS 0.5%
Club Mediterranee S.A. * 3,000 176,378
Pierre & Vacances 800 110,253
Sodexho Alliance S.A. 4,800 352,257
---------------
638,888
SOFTWARE 0.2%
Atos Origin S.A. * 2,217 149,250
Cap Gemini S.A. 900 68,502
---------------
217,752
TEXTILES & APPAREL 0.5%
Christian Dior S.A. 5,400 658,431
---------------
13,753,701
GERMANY 7.2%
- -----------------------------------------------------------------
AUTOS 1.6%
DaimlerChrysler AG -- Reg'd 23,400 1,914,475
Volkswagen AG 1,105 165,835
---------------
2,080,310
BASIC MINERALS & METALS 0.3%
ThyssenKrupp AG 8,700 431,861
</Table>
See financial notes.
60 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CHEMICALS & RUBBER 2.0%
BASF AG 5,000 562,635
Bayer AG 25,877 1,656,824
Lanxess * 6,000 310,414
---------------
2,529,873
DRUGS & PHARMACEUTICALS 0.1%
Altana AG 1,200 78,053
ELECTRIC UTILITIES 1.0%
E.ON AG 9,846 1,340,374
GOVERNMENT AIRCRAFT & DEFENSE 0.0%
Rheinmetall AG 129 12,042
INSURANCE 0.2%
Allianz AG -- Reg'd 1,400 286,426
IT HARDWARE 0.5%
Infineon Technologies AG * 41,000 638,478
METAL PRODUCTS & MACHINERY 0.2%
Siemens AG -- Reg'd 2,800 299,880
MISCELLANEOUS FINANCE 1.3%
Deutsche Bank AG -- Reg'd 12,500 1,683,167
---------------
9,380,464
GREECE 0.4%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
Coca Cola Hellenic Bottling Co.,
S.A. 7,358 310,542
BANKS & CREDIT INSTITUTIONS 0.1%
Bank of Greece 479 62,696
COMMUNICATIONS UTILITIES 0.1%
Hellenic Telecommunications
Organization S.A. (OTE) * 4,500 122,748
---------------
495,986
HONG KONG 1.8%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.2%
Hang Seng Bank Ltd. 15,600 221,616
BASIC MINERALS & METALS 0.0%
China Oriental Group Co., Ltd. 110,000 36,356
COMMUNICATIONS UTILITIES 0.1%
PCCW Ltd. 157,000 94,179
ELECTRIC UTILITIES 0.3%
CLP Holdings Ltd. 54,500 398,093
Hongkong Electric Holdings Ltd. 5,500 28,200
---------------
426,293
LAND & WATER TRANSPORTATION 0.0%
Transport International Holdings
Ltd. 400 2,171
MISCELLANEOUS FINANCE 0.2%
Guoco Group Ltd. 10,000 140,569
Jardine Strategic Holdings Ltd. 11,000 141,247
---------------
281,816
REAL ESTATE DEVELOPMENT 0.9%
Cheung Kong (Holdings) Ltd. 24,000 303,414
Great Eagle Holdings Ltd. 14,000 47,305
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Hang Lung Group Ltd. 37,000 130,683
Hang Lung Properties Ltd. 78,000 216,547
Henderson Investment Ltd. 1,909 3,892
Henderson Land Development Co.,
Ltd. 28,000 163,265
Hopson Development Holdings Ltd. 12,000 30,007
Kerry Properties Ltd. 23,500 120,524
New World Development Co., Ltd. 3,000 6,775
Pacific Century Premium
Developments Ltd. 115,000 36,347
Swire Pacific Ltd. 2,500 28,041
Wheelock & Co., Ltd. 61,000 136,840
Wheelock Properties (S) Ltd. 5,000 5,279
---------------
1,228,919
RETAIL 0.1%
Esprit Holdings Ltd. 6,500 76,167
---------------
2,367,517
IRELAND 0.8%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Kerry Group plc 2,342 65,463
BANKS & CREDIT INSTITUTIONS 0.7%
Allied Irish Banks plc (AIB) 31,500 932,438
---------------
997,901
ITALY 3.7%
- -----------------------------------------------------------------
AUTOS 0.6%
Fiat S.p.A. * 31,327 794,082
BANKS & CREDIT INSTITUTIONS 0.2%
UniCredito Italiano S.p.A. 24,000 228,534
CHEMICALS & RUBBER 0.2%
Pirelli & C. S.p.A. * 200,000 221,193
COMMUNICATIONS UTILITIES 0.1%
Telecom Italia S.p.A. 30,000 85,714
CONSTRUCTION MATERIALS 0.2%
Italcementi S.p.A. 7,252 217,792
Italmobiliare S.p.A. 743 86,034
---------------
303,826
ELECTRIC UTILITIES 0.9%
C.I.R. S.p.A. -- Compagnie
Industriali Riunite 3,549 14,154
Edison S.p.A. 53,969 156,474
Enel S.p.A. 96,194 1,030,186
---------------
1,200,814
FOREST PRODUCTS & PAPER 0.1%
IFIL-Investments S.p.A. 17,323 169,778
GAS & OTHER PUBLIC UTILITIES 0.0%
Iride S.p.A. 15,770 53,418
GOVERNMENT AIRCRAFT & DEFENSE 0.5%
Finmeccanica S.p.A. 19,200 577,143
INTEGRATED OIL COMPANIES 0.6%
Eni S.p.A. 24,500 797,277
</Table>
See financial notes.
Laudus Funds Annual Report 61
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
METAL PRODUCTS & MACHINERY 0.1%
Danieli S.p.A. -- Officine
Meccanishe Danieli & C. 4,353 102,550
PUBLISHING, BROADCASTING &
CINEMA 0.1%
Mondadori (Arnoldo) Editore S.p.A. 16,000 167,376
REAL ESTATE DEVELOPMENT 0.1%
Immobiliare Lombarda S.p.A. * 429,535 127,308
---------------
4,829,013
JAPAN 21.9%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
Mikuni Coca-Cola Bottling Co.,
Ltd. 1,700 17,769
AIRLINES 0.0%
Japan Airlines Corp. * 3,000 6,233
AUTOS 3.5%
Fuji Heavy Industries Ltd. 40,000 207,164
Futaba Industrial Co., Ltd. 1,500 36,278
HI-LEX Corp. 400 6,556
Honda Motor Co., Ltd. 30,100 1,048,854
Kanto Auto Works Ltd. 3,700 46,904
Kawasaki Heavy Industries Ltd. 22,000 92,803
Mazda Motor Corp. 6,000 33,087
Mitsuba Corp. 3,000 23,447
Nissan Motor Co., Ltd. 77,200 824,758
Nissan Shatai Co., Ltd. 9,000 45,737
Suzuki Motor Corp. 10,900 282,087
Topre Corp. 2,600 23,650
Toyota Auto Body Co., Ltd. 5,700 107,069
Toyota Motor Corp. 22,400 1,434,516
Yamaha Motor Co., Ltd. 11,800 329,580
---------------
4,542,490
BANKS & CREDIT INSTITUTIONS 0.6%
Daishi Bank Ltd. 10,000 42,256
Kagoshima Bank Ltd. 2,000 14,535
Mizuho Financial Group, Inc. 74 475,352
Orient Corp. * 1,000 1,699
San-in Godo Bank Ltd. 3,000 28,343
Shiga Bank Ltd. 5,000 34,628
Takefuji Corp. 3,500 140,172
The Eighteenth Bank Ltd. 11,000 51,304
The Mie Bank Ltd. 7,000 34,572
---------------
822,861
BASIC MINERALS & METALS 2.1%
JFE Holdings, Inc. 10,900 643,613
Kobe Steel Ltd. 117,000 470,145
Maruichi Steel Tube Ltd. 3,900 120,946
Nakayama Steel Works Ltd. 5,000 19,218
Nippon Steel Corp. 118,000 828,613
Nisshin Steel Co., Ltd. 43,000 184,814
Osaka Steel Co., Ltd. 1,700 32,503
Sumitomo Electric Industries Ltd. 3,100 46,957
Sumitomo Metal Mining Co., Ltd. 14,000 269,191
Tokyo Steel Manufacturing Co.,
Ltd. 700 10,297
Yodogawa Steel Works Ltd. 8,000 49,202
---------------
2,675,499
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BEER, LIQUOR, & TOBACCO 1.0%
Asahi Breweries Ltd. 22,600 361,980
Japan Tobacco, Inc. 103 504,938
Kirin Brewery Co., Ltd. 28,000 404,164
---------------
1,271,082
CELLULAR & WIRELESS 0.8%
KDDI Corp. 98 779,596
NTT DoCoMo, Inc. 131 241,330
---------------
1,020,926
CHEMICALS & RUBBER 1.5%
Bridgestone Corp. 21,600 429,249
Dainippon Ink & Chemicals, Inc. 47,000 186,177
Kaneka Corp. 21,000 199,787
Mitsubishi Chemical Holdings Corp. 12,500 106,228
Mitsui Chemicals, Inc. 14,000 121,991
Sakai Chemical Industry Co., Ltd. 3,000 21,595
Sumitomo Chemical Co., Ltd. 48,000 361,718
Teijin Ltd. 51,000 286,642
Toagosei Co., Ltd. 14,000 58,075
Tosoh Corp. 36,000 185,427
---------------
1,956,889
COMMUNICATIONS UTILITIES 0.6%
Nippon Telegraph & Telephone Corp.
(NTT) 150 792,359
Rakuten, Inc. 58 27,485
---------------
819,844
CONSTRUCTION & HOMEBUILDING 0.0%
Maeda Corp. 2,000 7,275
Nippo Corp. 1,000 7,755
---------------
15,030
CONSTRUCTION MATERIALS 0.0%
Asahi Glass Co., Ltd. 1,000 14,032
Maeda Road Construction Co., Ltd. 5,000 39,411
---------------
53,443
CONSUMER DURABLES 0.8%
Matsushita Electric Industrial
Co., Ltd. 49,000 987,568
DRUGS & PHARMACEUTICALS 1.0%
Astellas Pharma, Inc. 13,600 584,559
Cawachi Ltd. 1,300 35,161
Daiichi Sankyo Co., Ltd. 10,500 321,352
Dainippon Sumitomo Pharma Co.,
Ltd. 4,000 42,690
Kaken Pharmaceutical Co., Ltd. 5,000 40,679
Nippon Shinyaku Co., Ltd. 3,000 25,277
Ono Pharmaceutical Co., Ltd. 1,300 72,747
Taisho Pharmaceutical Co., Ltd. 9,000 164,930
Torii Pharmaceutical Co., Ltd. 1,200 20,242
---------------
1,307,637
ELECTRIC UTILITIES 0.6%
Hokkaido Electric Power Co., Inc. 9,300 246,742
Kyushu Electric Power Co., Inc. 13,400 380,880
The Chugoku Electric Power Co.,
Inc. 7,500 167,619
---------------
795,241
</Table>
See financial notes.
62 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FINANCIAL INVESTMENTS 0.6%
Mitsubishi UFJ Financial Group,
Inc. 67 754,870
FURNITURE & HOUSEHOLD ITEMS 0.3%
Sankyo Co., Ltd. 5,400 236,724
Sumitomo Bakelite Co., Ltd. 14,000 100,939
---------------
337,663
GAS & OTHER PUBLIC UTILITIES 0.4%
Osaka Gas Co., Ltd. 93,000 360,332
Tokyo Gas Co., Ltd. 19,000 105,603
---------------
465,935
GOVERNMENT AIRCRAFT & DEFENSE 0.0%
Mitsui Engineering & Shipbuilding
Co., Ltd. 3,000 12,665
INFORMATION & SERVICES 0.0%
Autobacs Seven Co., Ltd. 300 10,721
TKC Corp. 700 12,217
---------------
22,938
INSTRUMENTS 0.0%
Hitachi Medical Corp. 2,000 20,389
INSURANCE 0.9%
Millea Holdings, Inc. 9,200 339,021
Mitsui Sumitomo Insurance Co.,
Ltd. 42,000 525,161
Nissay Dowa General Insurance Co.,
Ltd. 1,000 6,349
Sompo Japan Insurance, Inc. 28,000 347,733
---------------
1,218,264
IT HARDWARE 0.5%
Alps Electric Co., Ltd. 4,500 52,548
Brother Industries Ltd. 4,000 54,009
Dainippon Screen Mfg. Co., Ltd. 16,000 120,619
Japan Aviation Electronics
Industry Ltd. 6,000 74,690
Seiko Epson Corp. 7,700 226,085
Sumitomo Wiring Systems Ltd. 2,000 45,408
Toshiba Tec Corp. 16,000 95,567
---------------
668,926
LAND & WATER TRANSPORTATION 0.4%
Nankai Electric Railway Co., Ltd. 1,000 3,366
Nippon Konpo Unyu Soko Co., Ltd. 4,000 55,877
Seino Transportation Co., Ltd. 12,000 113,079
West Japan Railway Co. 75 345,700
---------------
518,022
METAL PRODUCTS & MACHINERY 1.0%
Bosch Corp. 23,000 103,988
Fuji Machine Manufacturing Co.,
Ltd. 2,400 38,865
Heiwa Corp. 2,200 27,156
Hitachi Construction Machinery
Co., Ltd. 2,300 61,955
Hitachi Ltd. 28,000 217,637
Mitsubishi Heavy Industries Ltd. 97,000 625,497
Sega Sammy Holdings, Inc. 6,400 149,174
Sekisui Jushi Corp. 3,000 23,589
Toyo Seikan Kaisha Ltd. 3,000 60,266
---------------
1,308,127
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
MISCELLANEOUS FINANCE 1.2%
Daiwa Securities Group, Inc. 38,000 456,664
Mitsubishi UFJ Securities Co.,
Ltd. 28,000 318,107
Nikko Cordial Corp. 25,500 362,178
Okasan Holdings, Inc. 11,000 85,498
Shinko Securities Co., Ltd. 2,000 10,081
Shinsei Bank Ltd. 70,000 334,720
---------------
1,567,248
OIL DISTRIBUTION 0.3%
Cosmo Oil Co., Ltd. 13,000 54,270
Nippon Mining Holdings, Inc. 43,000 368,544
---------------
422,814
PHOTO-OPTICAL, MICROS & OFFICE
MACHINERY 1.1%
Eizo Nanao Corp. 800 26,387
Fuji Photo Film Co., Ltd. 14,000 572,641
Konica Minolta Holdings, Inc. 28,000 366,846
NEC Corp. 72,000 384,833
Riso Kagaku Corp. 600 12,147
---------------
1,362,854
PUBLISHING, BROADCASTING &
CINEMA 0.6%
Dai Nippon Printing Co., Ltd. 22,000 345,288
Fuji Television Network, Inc. 29 67,046
Hakuhodo DY Holdings, Inc. 1,310 91,459
Toppan Printing Co., Ltd. 29,000 302,074
---------------
805,867
REAL ESTATE DEVELOPMENT 0.6%
Hankyu Hanshin Holdings, Inc. 60,000 362,540
Iida Home Max 1,800 31,690
Sekisui House Ltd. 23,000 357,110
Towa Real Estate Development Co.,
Ltd. * 2,000 10,779
---------------
762,119
RESTAURANTS, HOTELS &
THEATERS 0.0%
Fields Corp. 20 32,158
H.I.S. Co., Ltd. 700 20,086
---------------
52,244
RETAIL 0.2%
Aichi Toyota Motor Co., Ltd. 2,000 38,922
AOKI Holdings, Inc. 1,000 19,036
Aoyama Trading Co., Ltd. 4,100 129,830
Daiichikosho Co., Ltd. 2,800 31,592
---------------
219,380
SOFTWARE 0.3%
Fujitsu Business Systems Ltd. 200 3,105
Fujitsu Ltd. 56,000 371,554
---------------
374,659
</Table>
See financial notes.
Laudus Funds Annual Report 63
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
TEXTILES & APPAREL 0.1%
Japan Wool Textile Co., Ltd. 3,000 26,218
Kurabo Industries Ltd. 9,000 24,925
Onward Kashiyama Co., Ltd. 8,000 110,967
Tokyo Style Co., Ltd. 1,000 10,931
---------------
173,041
TRADING COMPANY 0.8%
Mitsubishi Corp. 34,900 805,670
Sojitz Corp. 47,100 195,721
---------------
1,001,391
WHOLESALE 0.1%
Kamei Corp. 2,000 15,642
Ryosan Co., Ltd. 1,900 48,757
Trusco Nakayama Corp. 300 6,063
---------------
70,462
---------------
28,432,390
NETHERLANDS 3.7%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 1.3%
CSM N.V. 2,474 88,499
Unilever N.V. 53,200 1,553,772
---------------
1,642,271
BANKS & CREDIT INSTITUTIONS 0.4%
ABN AMRO Holding N.V. 5,500 236,985
ING Groep N.V. 6,000 253,842
---------------
490,827
BASIC MINERALS & METALS 0.0%
Mittal Steel Co. N.V. 250 13,391
CHEMICALS & RUBBER 0.5%
Akzo Nobel N.V. 9,321 708,014
FURNITURE & HOUSEHOLD ITEMS 0.0%
Hunter Douglas N.V. 135 11,911
INFORMATION & SERVICES 1.1%
Koninklijke (Royal) Philips
Electronics N.V. 36,336 1,384,972
OIL & COAL RESOURCES 0.3%
Koninklijke DSM N.V. 10,400 466,714
WHOLESALE 0.1%
Buhrmann N.V. 6,000 80,587
Univar N.V. 316 17,658
---------------
98,245
---------------
4,816,345
NEW ZEALAND 0.0%
- -----------------------------------------------------------------
AIRLINES 0.0%
Air New Zealand Ltd. 21,500 35,884
NORWAY 0.3%
- -----------------------------------------------------------------
INTEGRATED OIL COMPANIES 0.3%
Statoil A.S.A. 16,100 434,711
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PORTUGAL 0.4%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.2%
Banco Espirito Santo, S.A. (BES)
Reg'd 16,000 305,802
ELECTRIC UTILITIES 0.2%
EDP -- Energias de Portugal, S.A. 40,745 219,410
---------------
525,212
SINGAPORE 1.0%
- -----------------------------------------------------------------
AIRLINES 0.2%
Singapore Airlines Ltd. 22,000 240,026
AUTOS 0.1%
Jardine Cycle & Carriage Ltd. 13,000 101,576
CELLULAR & WIRELESS 0.0%
MobileOne Ltd. 5,000 7,227
COMMERCIAL AIRCRAFT &
COMPONENTS 0.1%
Singapore Technologies Engineering
Ltd. (ST Engg) 34,000 74,261
ELECTRIC UTILITIES 0.1%
SembCorp Industries Ltd. 39,000 130,754
FINANCIAL INVESTMENTS 0.0%
Kim Eng Holdings Ltd. 12,000 12,625
LAND & WATER TRANSPORTATION 0.0%
K1 Ventures Ltd. * 112,000 24,318
MISCELLANEOUS FINANCE 0.3%
DBS Group Holdings Ltd. 30,000 422,199
REAL ESTATE DEVELOPMENT 0.2%
Fraser & Neave Ltd. 16,000 53,678
Guocoland Ltd. 24,000 66,467
Ho Bee Investment Ltd. 33,000 49,109
Wheelock Properties (S) Ltd. 24,000 51,081
Wing Tai Holdings Ltd. 32,000 66,770
---------------
287,105
RESTAURANTS, HOTELS &
THEATERS 0.0%
Hotel Plaza Ltd. 12,000 18,242
---------------
1,318,333
SPAIN 4.6%
- -----------------------------------------------------------------
AIRLINES 0.2%
Iberia Lineas Aereas de Espana
S.A. 44,277 236,807
BANKS & CREDIT INSTITUTIONS 1.9%
Banco Bilbao Vizcaya Argentaria
S.A. 10,400 255,376
Banco Santander Central Hispano
S.A. 119,000 2,124,401
---------------
2,379,777
COMMUNICATIONS UTILITIES 1.5%
Telefonica S.A. 89,100 1,973,099
INTEGRATED OIL COMPANIES 0.8%
Repsol YPF S.A. 31,800 1,071,553
</Table>
See financial notes.
64 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
RESTAURANTS, HOTELS &
THEATERS 0.2%
Sol Melia S.A. 11,512 277,123
---------------
5,938,359
SWEDEN 2.1%
- -----------------------------------------------------------------
AIRLINES 0.1%
SAS AB * 6,702 123,399
AUTOS 0.9%
Volvo AB 13,500 1,140,552
BASIC MINERALS & METALS 0.3%
Boliden AB 16,817 371,442
CELLULAR & WIRELESS 0.7%
TeliaSonera AB 102,000 884,910
COMMUNICATIONS UTILITIES 0.1%
Tele2 AB, Class B 12,000 197,090
---------------
2,717,393
SWITZERLAND 7.4%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 1.4%
Nestle S.A. -- Reg'd 4,500 1,753,553
AIRLINES 0.0%
Swissair Group (a) (b) 30 --
AUTOS 0.1%
Rieter Holding AG -- Reg'd 360 179,774
BANKS & CREDIT INSTITUTIONS 0.2%
Banque Cantonale Vaudoise (BCV) --
Reg'd 417 198,167
BASIC MINERALS & METALS 0.0%
Georg Fischer AG -- Reg'd. * 65 47,029
CHEMICALS & RUBBER 0.4%
Ciba Specialty Chemicals AG --
Reg'd 5,600 369,729
Clariant AG -- Reg'd * 8,690 149,476
---------------
519,205
COMMUNICATIONS UTILITIES 0.0%
Swisscom AG -- Reg'd 132 47,790
CONSTRUCTION MATERIALS 0.7%
Holcim Ltd. -- Reg'd 8,600 865,303
DRUGS & PHARMACEUTICALS 1.2%
Novartis AG -- Reg'd 15,600 871,510
Roche Holdings AG 4,000 710,545
---------------
1,582,055
INSURANCE 1.5%
Baloise Holding AG -- Reg'd 1,200 125,302
Swiss Life Holding -- Reg'd * 1,760 442,911
Zurich Financial Services AG --
Reg'd 4,800 1,388,044
---------------
1,956,257
METAL PRODUCTS & MACHINERY 0.1%
Bucher Industries AG -- Reg'd 840 113,441
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
MISCELLANEOUS FINANCE 1.8%
Credit Suisse Group -- Reg'd 4,181 300,985
UBS AG -- Reg'd 33,900 2,021,522
---------------
2,322,507
RETAIL 0.0%
Charles Vogele Holding AG * 107 11,740
---------------
9,596,821
UNITED KINGDOM 21.6%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 1.3%
Tate & Lyle plc 30,100 341,432
Unilever plc 43,199 1,304,613
---------------
1,646,045
AUTOS 0.3%
GKN plc 49,951 374,657
BANKS & CREDIT INSTITUTIONS 4.3%
Barclays plc 20,800 294,939
HBOS plc 71,798 1,484,373
HSBC Holdings plc 61,200 1,071,688
Lloyds TSB Group plc 17,000 187,765
Royal Bank of Scotland Group plc 63,300 2,478,099
---------------
5,516,864
BASIC MINERALS & METALS 1.7%
Anglo American plc 29,400 1,552,536
Kazakhmys plc 20,561 475,671
Rio Tinto plc 3,200 182,732
---------------
2,210,939
BEER, LIQUOR, & TOBACCO 1.2%
Imperial Tobacco Group plc 23,000 1,031,574
Scottish & Newcastle plc 46,000 544,835
---------------
1,576,409
CELLULAR & WIRELESS 0.8%
Vodafone Group plc 406,000 1,085,588
CONSTRUCTION MATERIALS 0.0%
Cookson Group plc 2,518 30,812
DRUGS & PHARMACEUTICALS 1.1%
AstraZeneca plc 5,400 291,109
GlaxoSmithKline plc 42,000 1,159,335
---------------
1,450,444
ELECTRIC UTILITIES 0.3%
British Energy Group plc * 33,000 316,903
International Power plc 1,319 10,310
---------------
327,213
FURNITURE & HOUSEHOLD ITEMS 0.4%
Smiths Group plc 27,775 561,475
GAS & OTHER PUBLIC UTILITIES 0.1%
United Utilities plc 4,665 69,506
GOVERNMENT AIRCRAFT & DEFENSE 0.8%
BAE Systems plc 116,789 1,058,686
</Table>
See financial notes.
Laudus Funds Annual Report 65
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSURANCE 2.8%
Aviva plc 82,600 1,220,490
Brit Insurance Holdings plc 8,632 54,774
Friends Provident plc 105,000 398,199
Old Mutual plc 234,000 757,913
Prudential plc 87,000 1,229,355
---------------
3,660,731
INTEGRATED OIL COMPANIES 3.8%
BP plc 96,427 1,042,251
Royal Dutch Shell plc, Class A 67,600 2,248,983
Royal Dutch Shell plc, Class B 47,400 1,576,959
---------------
4,868,193
MISCELLANEOUS FINANCE 0.9%
Investec plc 22,253 288,469
Legal & General Group plc 288,000 904,000
---------------
1,192,469
PUBLISHING, BROADCASTING &
CINEMA 0.2%
Trinity Mirror plc 17,257 180,290
WPP Group plc 5,099 77,422
---------------
257,712
REAL ESTATE DEVELOPMENT 0.0%
Enterprise Inns plc 3,057 40,293
RESTAURANTS, HOTELS &
THEATERS 1.3%
Compass Group plc 116,000 776,940
Greene King plc 2,686 58,301
Luminar plc 877 13,029
Millennium & Copthorne Hotel plc 8,198 109,804
Punch Taverns plc 14,800 363,438
Whitbread plc * 2,684 99,940
William Hill plc 25,200 315,724
---------------
1,737,176
RETAIL 0.2%
Tesco plc 23,000 201,288
SOFTWARE 0.1%
LogicaCMG plc 29,901 104,844
---------------
27,971,344
--------------
TOTAL COMMON STOCK (COST $107,410,263) 127,031,334
--------------
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
RIGHTS 0.0% OF NET ASSETS
AUSTRIA 0.0%
- -----------------------------------------------------------------
Conwert Immobilien Invest AG * --
567 -----------
--
TOTAL RIGHTS (COST $--)
- -----------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 03/31/07 the tax basis cost of the fund's investments was $108,029,605, and
the unrealized appreciation and depreciation were $20,615,086 and ($1,613,357),
respectively, with a net unrealized appreciation of $19,001,729.
At 03/31/07, the prices of certain foreign securities held by the fund
aggregating $125,471,106 were adjusted from their closing market prices
following the guidelines adopted by the fund's Board of Trustees.
<Table>
<Caption>
AMOUNT AMOUNT
OF OF UNREALIZED
CURRENCY CURRENCY CURRENCY CURRENCY GAINS /
EXPIRATION TO BE TO BE TO BE TO BE LOSSES
DATE RECEIVED RECEIVED DELIVERED DELIVERED ($)
FORWARD FOREIGN CURRENCY CONTRACT 1.2% OF NET ASSETS
04/04/2007 USD 1,533,625 JPY 180,891,000 (2,517)
</Table>
* Non-income producing security.
(a) Bankrupt security/delisted.
(b) Fair-valued by Management.
See financial notes.
66 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
95.7% COMMON STOCK 59,606,638 67,724,126
1.5% PREFERRED STOCK 940,867 1,045,029
--% RIGHTS -- 10,575
1.4% SHORT-TERM INVESTMENT 983,000 983,000
- -----------------------------------------------------------------
98.6% TOTAL INVESTMENTS 61,530,505 69,762,730
1.4% OTHER ASSETS AND
LIABILITIES 981,868
- -----------------------------------------------------------------
100.0% NET ASSETS 70,744,598
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 95.7% OF NET ASSETS
ARGENTINA 0.2%
- -----------------------------------------------------------------
COMMUNICATIONS UTILITIES 0.2%
Telecom Argentina S.A. ADR * 4,100 87,494
Telefonica de Argentina S.A. ADR 1,300 24,570
--------------
112,064
--------------
112,064
AUSTRALIA 5.4%
- -----------------------------------------------------------------
AIRLINES 0.2%
Qantas Airways Ltd. 35,400 149,876
BANKS & CREDIT INSTITUTIONS 0.9%
St. George Bank Ltd. 5,800 164,016
Suncorp-Metway Ltd. 26,879 451,327
--------------
615,343
BASIC MINERALS & METALS 0.8%
BlueScope Steel Ltd. 24,700 209,505
Jubilee Mines NL 4,800 67,762
Minara Resources Ltd. 14,100 83,947
OneSteel Ltd. 5,100 21,243
Zinifex Ltd. 16,500 210,002
--------------
592,459
BEER, LIQUOR, & TOBACCO 0.6%
Foster's Group Ltd. 64,500 356,819
Lion Nathan Ltd. 9,100 65,078
--------------
421,897
CHEMICALS & RUBBER 0.3%
Orica Ltd. 10,600 217,018
CONSTRUCTION & HOMEBUILDING 0.2%
Leighton Holdings Ltd. 5,000 135,419
CONSTRUCTION MATERIALS 0.3%
Adelaide Brighton Ltd. 20,500 56,796
Boral Ltd. 23,000 153,121
--------------
209,917
FOREST PRODUCTS & PAPER 0.0%
PaperlinX Ltd. 1,500 5,049
FURNITURE & HOUSEHOLD ITEMS 0.3%
Amcor Ltd. 29,300 178,635
INFORMATION & SERVICES 0.0%
WorleyParsons Ltd. 700 15,599
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSURANCE 0.4%
Insurance Australia Group Ltd. 60,000 284,194
MISCELLANEOUS FINANCE 0.3%
ASX Ltd. 6,300 223,843
OIL DISTRIBUTION 0.0%
Caltex Australia Ltd. 900 17,315
PUBLISHING, BROADCASTING & CINEMA 0.1%
West Australian Newspapers Holdings
Ltd. 6,200 78,276
REAL ESTATE DEVELOPMENT 0.3%
Lend Lease Corp., Ltd. 13,900 224,419
RESTAURANTS, HOTELS & THEATERS 0.2%
TABCORP Holdings Ltd. 9,800 130,719
RETAIL 0.3%
Coles Group Ltd. 10,500 137,850
Goodman Fielder Ltd. 19,500 38,487
--------------
176,337
TEXTILES & APPAREL 0.1%
Pacific Brands Ltd. 20,600 51,093
WHOLESALE 0.1%
Sims Group Ltd. 5,300 99,904
--------------
3,827,312
AUSTRIA 1.6%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.9%
Boehler-Uddeholm AG 2,800 269,811
Voestalpine AG 4,800 348,291
--------------
618,102
REAL ESTATE DEVELOPMENT 0.7%
Conwert Immobilien Invest AG * 2,500 55,005
Immofinanz Immobilien Analagen AG * 20,000 321,643
Meinl European Land Ltd. * 4,800 133,562
--------------
510,210
--------------
1,128,312
BELGIUM 1.1%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.1%
Umicore 400 71,398
INSTRUMENTS 0.3%
Agfa Gevaert N.V. 8,000 181,099
REAL ESTATE DEVELOPMENT 0.1%
Cofinimmo 400 83,377
RESTAURANTS, HOTELS & THEATERS 0.1%
S.A. D'Ieteren N.V. 210 86,516
RETAIL 0.5%
Delhaize Group 4,200 387,568
--------------
809,958
BRAZIL 0.5%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.1%
Companhia Siderurgica Nacional S.A.
(CSN) 1,700 73,312
Sider Paulista Cos. 600 34,918
--------------
108,230
</Table>
See financial notes.
Laudus Funds Annual Report 67
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BEER, LIQUOR, & TOBACCO 0.1%
Souza Cruz S.A. 3,400 68,485
CHEMICALS & RUBBER 0.1%
Copesul-Companhia Petroquinica do
Sul 2,600 45,746
COMMERCIAL AIRCRAFT & COMPONENTS 0.1%
Empresa Brasileira de Aeronautica
S.A. (Embraer) 3,400 38,764
GAS & OTHER PUBLIC UTILITIES 0.1%
Companhia de Saneamento Basico do
Estado de Sao Paulo * 668,000 89,648
--------------
350,873
CANADA 5.1%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.6%
Saputo, Inc. 10,200 408,000
BANKS & CREDIT INSTITUTIONS 0.6%
National Bank of Canada 7,500 405,890
BASIC MINERALS & METALS 1.1%
Agnico-Eagle Mines Ltd. 2,060 72,854
Aur Resources, Inc. 1,050 22,100
Gerdau Ameristeel Corp. 2,700 31,993
Inmet Mining Corp. 4,400 242,010
IPSCO, Inc. 872 114,466
Sherritt International Corp. 3,940 56,788
Teck Cominco Ltd., Class B 2,950 205,670
--------------
745,881
CHEMICALS & RUBBER 0.5%
Methanex Corp. 7,904 176,154
Potash Corp. of Saskatchewan, Inc. 1,000 159,463
--------------
335,617
COMMERCIAL AIRCRAFT & COMPONENTS 0.0%
ACE Aviation Holdings, Inc., Class
A * 1,300 34,299
COMMUNICATIONS UTILITIES 0.3%
Telus Corp. 3,850 192,150
DRUGS & PHARMACEUTICALS 0.1%
Biovail Corp. 3,980 87,046
ELECTRIC UTILITIES 0.5%
ATCO Ltd., Class I 2,210 89,970
Canadian Utilities Ltd. 7,900 291,297
--------------
381,267
GOVERNMENT AIRCRAFT & DEFENSE 0.1%
Bombardier, Inc. * 16,100 64,986
INSURANCE 0.1%
Industrial Alliance Insurance and
Financial Services, Inc. 3,322 102,178
IT HARDWARE 0.4%
Celestica, Inc. * 1,500 9,160
Nortel Networks Corp. * 11,899 285,184
--------------
294,344
OIL & COAL RESOURCES 0.1%
Talisman Energy, Inc. 5,000 87,743
OIL DRILLING & SERVICES 0.2%
Trican Well Service Ltd. 5,450 107,867
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PUBLISHING, BROADCASTING & CINEMA 0.1%
CanWest Global Communications Corp.
* 2,500 23,950
Corus Entertainment, Inc., Class B 1,000 38,155
--------------
62,105
REAL ESTATE DEVELOPMENT 0.2%
MI Developments, Inc., Class A 4,300 160,752
RETAIL 0.2%
Alimentation Couche-Tard, Inc.,
Class B 945 19,760
Sobeys, Inc. 3,920 123,932
--------------
143,692
--------------
3,613,817
CHILE 0.5%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Embotelladora Andina S.A. Series A
ADR 1,817 32,506
Embotelladora Andina S.A. Series B
ADR 2,000 39,000
--------------
71,506
AIRLINES 0.1%
Lan Airlines S.A. ADR 1,527 105,210
BANKS & CREDIT INSTITUTIONS 0.1%
Banco de Chile ADR 1,800 88,848
BEER, LIQUOR, & TOBACCO 0.1%
Compania Cervecerias Unidas S.A.
ADR 2,000 62,840
ELECTRIC UTILITIES 0.1%
Empresa Nacional de Electricidad
S.A. ADR 697 27,978
Enersis S.A. ADR 1,600 26,064
--------------
54,042
INSURANCE 0.0%
Administradora de Fondos de
Pensiones Provida S.A. ADR 266 6,836
--------------
389,282
CHINA 1.8%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.5%
Aluminum Corp. of China Ltd., Class
H 158,000 163,870
Angang Steel Co., Ltd., Class H 50,000 86,463
Jiangxi Copper Co., Ltd., Class H 81,000 97,254
--------------
347,587
BEER, LIQUOR, & TOBACCO 0.1%
Beijing Enterprise Holdings Ltd. 26,000 66,077
DRUGS & PHARMACEUTICALS 0.1%
Shanghai Industrial Holdings Ltd. 31,000 71,329
ELECTRIC UTILITIES 0.1%
Datang International Power
Generation Co., Ltd., Class H 62,000 58,487
INSURANCE 0.1%
PICC Property & Casualty Co., Ltd.,
Class H * 134,000 76,399
</Table>
See financial notes.
68 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
LAND & WATER TRANSPORTATION 0.4%
China COSCO Holdings Co., Ltd.,
Class H 117,000 114,561
China International Marine
Containers (Group) Co., Ltd.,
Class B 40,800 89,448
Sinotrans Ltd., Class H 168,000 66,936
--------------
270,945
OIL & COAL RESOURCES 0.1%
Yanzhou Coal Mining Co., Ltd.,
Class H 108,000 103,570
REAL ESTATE DEVELOPMENT 0.1%
Guangzhou Investment Co., Ltd. 250,000 61,189
SOFTWARE 0.1%
Lenovo Group Ltd. 222,000 81,007
TEXTILES & APPAREL 0.1%
Weiqiao Textile Co., Ltd., Class H 45,000 65,029
WHOLESALE 0.1%
TPV Technology Ltd. 78,000 49,698
--------------
1,251,317
DENMARK 1.5%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.3%
Danisco A/S 3,000 235,352
BEER, LIQUOR, & TOBACCO 0.4%
Carlsberg A/S, Class B 2,700 293,329
DRUGS & PHARMACEUTICALS 0.2%
H. Lundbeck A/S 6,793 158,147
INSURANCE 0.3%
Codan A/S (The Codan Group) 2,000 188,937
METAL PRODUCTS & MACHINERY 0.3%
Vestas Wind Systems A/S * 3,600 200,681
--------------
1,076,446
EGYPT 0.1%
- -----------------------------------------------------------------
CELLULAR & WIRELESS 0.1%
Egyptian Co. for Mobile Services 1,800 49,754
FINLAND 1.1%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.4%
Outokumpu Oyj 8,000 275,366
FOREST PRODUCTS & PAPER 0.1%
Stora Enso Oyj, Class R 2,394 41,580
UPM-Kymmene Oyj 600 15,326
--------------
56,906
INSURANCE 0.2%
Sampo Oyj, Class A 5,500 167,599
RETAIL 0.4%
Kesko Oyj, Class B 5,100 273,094
--------------
772,965
FRANCE 6.2%
- -----------------------------------------------------------------
AIRLINES 0.5%
Air France-KLM 8,000 365,907
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
AUTOS 0.3%
PSA Peugeot Citroen 2,400 169,221
Societe Fonciere Financiere et de
Participations (FFP) 232 63,802
--------------
233,023
BASIC MINERALS & METALS 0.2%
Eramet 63 13,188
Nexans S.A. 1,000 133,068
--------------
146,256
CHEMICALS & RUBBER 0.7%
Compagnie Generale des
Etablissements Michelin, Class B 4,200 464,365
COMMUNICATIONS UTILITIES 0.6%
Eutelsat Communications * 4,800 108,810
Publicis Groupe 6,800 328,235
--------------
437,045
CONSTRUCTION MATERIALS 0.3%
Ciments Francais S.A. 1,120 238,390
GOVERNMENT AIRCRAFT & DEFENSE 0.4%
Thales S.A. 4,400 256,555
INSURANCE 0.3%
CNP Assurances 1,600 187,238
LAND & WATER TRANSPORTATION 0.0%
Financiere de l'Odet 24 11,037
MISCELLANEOUS FINANCE 0.2%
Natixis 5,400 132,186
PUBLISHING, BROADCASTING & CINEMA 0.6%
Havas S.A. 24,000 138,834
Thomson 15,300 294,754
--------------
433,588
REAL ESTATE DEVELOPMENT 0.4%
Fonciere des Regions 900 169,209
Nexity 1,200 103,109
--------------
272,318
RESTAURANTS, HOTELS & THEATERS 0.5%
Sodexho Alliance S.A. 5,100 374,272
SOFTWARE 1.0%
Atos Origin S.A. * 3,600 242,354
Cap Gemini S.A. 5,700 433,847
--------------
676,201
TEXTILES & APPAREL 0.2%
Christian Dior S.A. 1,306 159,243
--------------
4,387,624
GERMANY 3.2%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.3%
ThyssenKrupp AG 4,800 238,268
CHEMICALS & RUBBER 0.4%
Lanxess * 5,100 263,852
COMMERCIAL AIRCRAFT & COMPONENTS 0.2%
MTU Aero Engines Holding AG 2,349 141,178
ELECTRIC UTILITIES 0.0%
MVV Energie AG 292 11,078
</Table>
See financial notes.
Laudus Funds Annual Report 69
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INFORMATION & SERVICES 0.4%
TUI AG 11,802 291,766
INSURANCE 0.3%
AMB Generali Holding AG 1,264 197,778
IT HARDWARE 0.6%
Infineon Technologies AG * 27,000 420,461
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.2%
Heidelberger Druckmaschinen AG 3,809 174,872
RETAIL 0.4%
KarstadtQuelle AG * 7,000 257,414
WHOLESALE 0.4%
GEA Group AG 10,677 296,444
--------------
2,293,111
GREECE 0.6%
- -----------------------------------------------------------------
COMMUNICATIONS UTILITIES 0.3%
Hellenic Telecommunications
Organization S.A. (OTE) * 6,000 163,664
ELECTRIC UTILITIES 0.3%
Public Power Corp. S.A. (PPC) 8,497 208,229
OIL DISTRIBUTION 0.0%
Hellenic Petroleum S.A. 1,462 20,759
--------------
392,652
HONG KONG 3.1%
- -----------------------------------------------------------------
AIRLINES 0.1%
Cathay Pacific Airways Ltd. 31,000 78,985
ELECTRIC UTILITIES 0.3%
CLP Holdings Ltd. 3,500 25,565
Hongkong Electric Holdings Ltd. 28,500 146,125
--------------
171,690
GAS & OTHER PUBLIC UTILITIES 0.1%
Guangdong Investment Ltd. 132,000 70,250
IT HARDWARE 0.1%
Vtech Holdings Ltd. 9,000 64,760
LAND & WATER TRANSPORTATION 0.0%
Transport International Holdings
Ltd. 2,400 13,022
MISCELLANEOUS FINANCE 0.2%
Guoco Group Ltd. 8,000 112,455
Jardine Strategic Holdings Ltd. 4,000 51,363
--------------
163,818
REAL ESTATE DEVELOPMENT 2.1%
Citic Pacific Ltd. 44,000 162,375
Great Eagle Holdings Ltd. 20,000 67,579
Hang Lung Group Ltd. 46,000 162,471
Hang Lung Properties Ltd. 47,000 130,483
Henderson Investment Ltd. 24,000 48,931
Henderson Land Development Co.,
Ltd. 31,000 180,758
Hongkong Land Holdings Ltd. 9,000 41,800
Hopewell Holdings Ltd. 29,000 112,929
Hopson Development Holdings Ltd. 30,000 75,019
Kerry Properties Ltd. 27,500 141,038
New World Development Co., Ltd. 76,000 171,646
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
The Wharf Holdings Ltd. 26,000 96,089
Wheelock & Co., Ltd. 54,000 121,137
--------------
1,512,255
RESTAURANTS, HOTELS & THEATERS 0.1%
Hongkong & Shanghai Hotels Ltd. 25,500 40,217
Shangri-La Asia Ltd. 22,000 54,471
--------------
94,688
RETAIL 0.1%
Dairy Farm International Holdings
Ltd. 6,300 24,570
Esprit Holdings Ltd. 2,500 29,295
--------------
53,865
--------------
2,223,333
HUNGARY 0.3%
- -----------------------------------------------------------------
COMMUNICATIONS UTILITIES 0.3%
Magyar Telekom Nyrt 42,000 211,137
INDIA 2.0%
- -----------------------------------------------------------------
AUTOS 0.3%
Maruti Udyog Ltd. 4,580 85,007
Tata Motors Ltd. 6,230 103,600
--------------
188,607
BANKS & CREDIT INSTITUTIONS 0.1%
Bajaj Auto Ltd. 780 43,433
Bank of India 12,220 46,831
--------------
90,264
BASIC MINERALS & METALS 0.6%
Hindalco Industries Ltd. 20,600 61,631
Hindustan Zinc Ltd. 6,280 81,277
National Aluminium Co., Ltd. 4,960 26,528
Steel Authority Of India Ltd. 34,990 91,962
Sterlite Industries (India) Ltd. 7,830 83,687
Tata Steel Ltd. 7,960 82,195
--------------
427,280
CONSTRUCTION MATERIALS 0.2%
ACC Ltd. 3,070 51,568
Grasim Industries Ltd. 1,270 61,263
Ultra Tech Cement Ltd. 2,230 39,221
--------------
152,052
CONSUMER DURABLES 0.0%
Hero Honda Motors Ltd. 600 9,555
FINANCIAL INVESTMENTS 0.2%
Mahindra & Mahindra Ltd. 5,810 103,662
METAL PRODUCTS & MACHINERY 0.2%
Bharat Heavy Electricals Ltd. 2,120 109,674
Larsen & Toubro Ltd. GDR 1,500 54,750
--------------
164,424
OIL & COAL RESOURCES 0.0%
Neyveli Lignite Corp., Ltd. * 1,470 1,689
OIL DISTRIBUTION 0.2%
Gail India Ltd. 9,980 60,325
Mangalore Refinery & Petrochemicals
Ltd. 74,800 58,175
--------------
118,500
</Table>
See financial notes.
70 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
RESTAURANTS, HOTELS & THEATERS 0.0%
Indian Hotels Co., Ltd. 4,623 15,243
SOFTWARE 0.2%
HCL Technologies Ltd. 10,260 68,522
Satyam Computer Services Ltd. 4,720 50,626
--------------
119,148
--------------
1,390,424
INDONESIA 0.7%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
PT Astra Agro Lestari Tbk. 41,000 56,414
BANKS & CREDIT INSTITUTIONS 0.2%
PT Bank Central Asia Tbk. 199,000 110,733
BASIC MINERALS & METALS 0.1%
PT International Nickel Indonesia
Tbk. (INCO) 16,000 94,967
BEER, LIQUOR, & TOBACCO 0.1%
PT Hanjaya Mandala Sampoerna Tbk 23,000 33,011
CONSTRUCTION MATERIALS 0.1%
PT Bank Rakyat Indonesia 185,000 101,778
WHOLESALE 0.1%
PT Astra International Tbk 47,000 67,676
--------------
464,579
IRELAND 0.6%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.3%
Kerry Group plc, Class A 9,000 251,566
PUBLISHING, BROADCASTING & CINEMA 0.3%
Independent News & Media plc 45,000 204,949
--------------
456,515
ISRAEL 1.3%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 1.1%
Bank Hapoalim B.M. 55,000 263,650
Bank Leumi Le-Israel 70,000 251,290
First International Bank Of Israel
Ltd. (FIBI) * 6,000 74,025
Israel Discount Bank, Series A * 44,000 92,469
Mizrahi Tefahot Bank Ltd. 9,000 66,602
--------------
748,036
COMMUNICATIONS UTILITIES 0.1%
Bezeq Israeli Telecommunication
Corp., Ltd. 48,000 73,902
INSURANCE 0.1%
Clal Insurance Enterprise Holdings
Ltd. 3,000 85,144
--------------
907,082
ITALY 3.7%
- -----------------------------------------------------------------
AUTOS 0.4%
Fiat S.p.A 10,000 253,482
BANKS & CREDIT INSTITUTIONS 0.1%
Unione di Banche Italiane S.c.p.A 1,400 41,524
CHEMICALS & RUBBER 0.3%
Pirelli & C. S.p.A. 211,934 234,392
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CONSTRUCTION MATERIALS 0.8%
Buzzi Unicem S.p.A. 8,400 255,936
Italcementi S.p.A. 9,800 294,313
--------------
550,249
CONSUMER DURABLES 0.0%
Indesit Co. S.p.A. 1,000 21,319
ELECTRIC UTILITIES 0.6%
ACEA S.p.A. 10,000 187,583
ASM S.p.A. 33,000 214,264
Cofide S.p.A. -- Compagnia
Finanziaria De Benedetti 25,209 43,768
--------------
445,615
FOREST PRODUCTS & PAPER 0.4%
IFIL -- Investments S.p.A. 24,000 235,217
GAS & OTHER PUBLIC UTILITIES 0.1%
Hera S.p.A. 2,801 11,817
Iride S.p.A. 21,000 71,134
--------------
82,951
GOVERNMENT AIRCRAFT & DEFENSE 0.5%
Finmeccanica S.p.A. 12,254 368,350
OIL DISTRIBUTION 0.2%
ERG S.p.A. 5,513 151,703
PUBLISHING, BROADCASTING & CINEMA 0.2%
Mediaset S.p.A. 12,000 131,063
REAL ESTATE DEVELOPMENT 0.1%
Immobiliare Grande Distribuzione 8,000 44,423
Immobiliare Lombarda S.p.A. * 134,679 39,917
--------------
84,340
--------------
2,600,205
JAPAN 20.5%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.4%
Nisshin Seifun Group, Inc. 20,500 208,229
Yamazaki Baking Co., Ltd. 7,000 63,651
--------------
271,880
AUTOS 2.2%
Daihatsu Motor Co., Ltd. 7,000 66,513
Fuji Heavy Industries Ltd. 59,000 305,566
Hino Motors Ltd. 44,000 233,869
Kawasaki Heavy Industries Ltd. 87,000 366,993
Koito Manufacturing Co., Ltd. 9,000 123,207
Mazda Motor Corp. 19,000 104,775
Yamaha Motor Co., Ltd. 11,900 332,373
--------------
1,533,296
BANKS & CREDIT INSTITUTIONS 0.3%
Higo Bank Ltd. 3,000 20,326
Orient Corp. * 24,000 40,783
Yamaguchi Financial Group, Inc. 13,000 174,440
--------------
235,549
BASIC MINERALS & METALS 2.8%
Fujikura Ltd. 27,000 189,576
Kobe Steel Ltd. 114,000 458,089
Maruichi Steel Tube Ltd. 4,400 136,451
Mitsui Mining & Smelting Co., Ltd. 16,000 87,510
Nisshin Steel Co., Ltd. 58,000 249,284
</Table>
See financial notes.
Laudus Funds Annual Report 71
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Sumitomo Electric Industries Ltd. 21,500 325,668
Sumitomo Metal Mining Co., Ltd. 25,000 480,698
Tokyo Steel Manufacturing Co., Ltd. 5,400 79,436
--------------
2,006,712
BEER, LIQUOR, & TOBACCO 0.5%
Asahi Breweries Ltd. 22,800 365,184
CHEMICALS & RUBBER 2.2%
Asahi Kasei Corp. 59,000 427,782
Daicel Chemical Industries Ltd. 4,000 27,213
Dainippon Ink & Chemicals, Inc. 16,000 63,380
Kaneka Corp. 30,000 285,410
Mitsui Chemicals, Inc. 39,000 339,832
Teijin Ltd. 64,000 359,708
Tosoh Corp. 11,000 56,658
--------------
1,559,983
COMMUNICATIONS UTILITIES 0.0%
Rakuten, Inc. 68 32,224
DRUGS & PHARMACEUTICALS 0.7%
Ono Pharmaceutical Co., Ltd. 3,500 195,856
Taisho Pharmaceutical Co., Ltd. 16,000 293,209
--------------
489,065
ELECTRIC UTILITIES 0.4%
Hokkaido Electric Power Co., Inc. 2,300 61,022
Kyushu Electric Power Co., Inc. 5,300 150,647
The Chugoku Electric Power Co.,
Inc. 3,900 87,162
--------------
298,831
FINANCIAL INVESTMENTS 0.2%
Hitachi Capital Corp. 8,800 175,127
FURNITURE & HOUSEHOLD ITEMS 1.3%
Kokuyo Co., Ltd. 10,500 138,781
Matsushita Electric Works Ltd. 10,000 114,264
NAMCO BANDAI Holdings, Inc. 20,400 317,219
Sankyo Co., Ltd. 7,100 311,248
Sumitomo Bakelite Co., Ltd. 8,000 57,679
--------------
939,191
GAS & OTHER PUBLIC UTILITIES 0.5%
Osaka Gas Co., Ltd. 89,000 344,833
GOVERNMENT AIRCRAFT & DEFENSE 0.2%
Mitsui Engineering & Shipbuilding
Co., Ltd. 32,000 135,095
INSTRUMENTS 0.1%
Nikon Corp. 5,000 104,941
INSURANCE 0.7%
Aioi Insurance Co., Ltd. 51,000 354,421
NIPPONKOA Insurance Co., Ltd. 15,000 128,188
--------------
482,609
IT HARDWARE 1.1%
Alps Electric Co., Ltd. 13,000 151,806
Brother Industries Ltd. 20,000 270,045
Seiko Epson Corp. 11,600 340,595
--------------
762,446
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
LAND & WATER TRANSPORTATION 0.8%
Seino Transportation Co., Ltd. 18,000 169,618
West Japan Railway Co. 79 364,138
--------------
533,756
MAINFRAME & MINICOMPUTERS 0.4%
NEC Corp. 49,000 261,900
METAL PRODUCTS & MACHINERY 0.7%
Bosch Corp. 33,000 149,200
Hitachi Construction Machinery Co.,
Ltd. 6,900 185,865
Sega Sammy Holdings, Inc. 3,200 74,587
Toyo Seikan Kaisha Ltd. 5,600 112,497
--------------
522,149
MISCELLANEOUS FINANCE 1.0%
Mitsubishi UFJ Securities Co., Ltd. 21,000 238,580
Okasan Holdings, Inc. 13,000 101,043
Shinko Securities Co., Ltd. 2,000 10,081
Shinsei Bank Ltd. 71,000 339,502
--------------
689,206
OIL DISTRIBUTION 0.5%
Nippon Mining Holdings, Inc. 37,500 321,405
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6%
Konica Minolta Holdings, Inc. * 31,000 406,151
PUBLISHING, BROADCASTING & CINEMA 0.7%
Dentsu, Inc. 27 75,280
Fuji Television Network, Inc. 4 9,248
Hakuhodo DY Holdings, Inc. 2,940 205,259
Toppan Printing Co., Ltd. 9,000 93,747
TV Asahi Corp. 73 146,456
--------------
529,990
REAL ESTATE DEVELOPMENT 1.1%
Daito Trust Construction Co., Ltd. 8,000 374,814
Hankyu Hanshin Holdings, Inc. 61,000 368,583
--------------
743,397
RETAIL 0.5%
Aoyama Trading Co., Ltd. 5,300 167,829
FamilyMart Co., Ltd. 7,600 210,976
--------------
378,805
TEXTILES & APPAREL 0.3%
Onward Kashiyama Co., Ltd. 14,000 194,191
TRADING COMPANY 0.3%
Sojitz Corp. * 47,300 196,552
--------------
14,514,468
MALAYSIA 1.2%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
PPB Group Berhad 20,000 36,982
BANKS & CREDIT INSTITUTIONS 0.1%
Hong Leong Credit Berhad 11,000 18,275
RHB Capital Berhad 59,000 81,522
--------------
99,797
CELLULAR & WIRELESS 0.2%
Maxis Communications Berhad 35,000 120,346
</Table>
See financial notes.
72 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMUNICATIONS UTILITIES 0.1%
Digi.com Berhad 16,000 86,586
ELECTRIC UTILITIES 0.1%
Tenaga Nasional Berhad 24,000 79,150
FINANCIAL INVESTMENTS 0.1%
Hong Leong Bank Berhad 27,000 46,794
OIL DISTRIBUTION 0.1%
Petronas Dagangan Berhad 24,000 42,657
RESTAURANTS, HOTELS & THEATERS 0.2%
Genting Berhad 16,000 183,877
WHOLESALE 0.2%
Sime Darby Berhad 58,000 135,521
--------------
831,710
MEXICO 1.1%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
Embotelladoras Arca S.A. 3,900 14,316
Grupo Bimbo S.A. de C.V., Series A 17,300 86,984
Grupo Continental S.A. 6,700 14,446
--------------
115,746
BANKS & CREDIT INSTITUTIONS 0.2%
Grupo Financiero Banorte S.A. de
C.V., Class O 35,900 170,422
BASIC MINERALS & METALS 0.3%
Grupo Mexico SAB de C.V., Series B 36,700 171,227
Industrias CH S.A., Series B * 12,400 52,338
--------------
223,565
RETAIL 0.3%
Controladora Comercial Mexicana
S.A. de C.V. 21,300 60,186
Grupo Carso S.A. de C.V., Series A1 19,100 69,560
Organizacion Soriana S.A.B de C.V.,
Series B 16,200 48,432
--------------
178,178
TEXTILES & APPAREL 0.1%
Alfa S.A., Series A 14,000 103,355
--------------
791,266
NETHERLANDS 1.5%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
CSM N.V. CVA 4,091 146,342
CHEMICALS & RUBBER 0.6%
Koninklijke DSM N.V. 8,784 394,194
FURNITURE & HOUSEHOLD ITEMS 0.2%
Hunter Douglas N.V. 2,000 176,463
INFORMATION & SERVICES 0.3%
Vedior N.V. CVA 10,400 231,795
WHOLESALE 0.2%
Buhrmann N.V. 10,000 134,312
--------------
1,083,106
NEW ZEALAND 0.1%
- -----------------------------------------------------------------
AIRLINES 0.1%
Air New Zealand Ltd. 50,000 83,451
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PHILIPPINES 0.2%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
JG Summit Holding, Inc. 210,000 55,309
BANKS & CREDIT INSTITUTIONS 0.1%
Bank of the Philippine Islands 8,000 10,832
Metropolitan Bank & Trust Co. 50,000 64,383
--------------
75,215
--------------
130,524
POLAND 1.6%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.3%
Bank Handlowy w Warszawie S.A. 6,000 200,161
BASIC MINERALS & METALS 0.4%
KGHM Polska Miedz S.A. 8,100 271,052
COMMUNICATIONS UTILITIES 0.3%
Telekomunikacja Polska S.A. 31,500 257,761
OIL DISTRIBUTION 0.6%
Grupa Lotos S.A. * 6,000 88,079
Polski Koncern Naftowy Orlen S.A. * 20,000 327,217
--------------
415,296
--------------
1,144,270
PORTUGAL 0.4%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.4%
Banco Espirito Santo, S.A. (BES)
Reg'd 16,000 305,802
RUSSIA 0.6%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.2%
Mechel ADR 4,900 162,925
COMMUNICATIONS UTILITIES 0.4%
Rostelecom ADR 5,000 259,450
OIL & COAL RESOURCES 0.0%
Tatneft GDR 300 28,500
--------------
450,875
SINGAPORE 1.0%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
Asia Food & Properties Ltd. 66,000 30,195
AIRLINES 0.2%
Singapore Airlines Ltd. 11,000 120,013
AUTOS 0.1%
Jardine Cycle & Carriage Ltd. 7,000 54,695
COMMERCIAL AIRCRAFT & COMPONENTS 0.1%
Singapore Technologies Engineering
Ltd. (ST Engg) 31,000 67,709
ELECTRIC UTILITIES 0.2%
Sembcorp Industries Ltd. 43,000 144,164
INSURANCE 0.1%
Great Eastern Holding Ltd. 4,000 51,793
</Table>
See financial notes.
Laudus Funds Annual Report 73
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
REAL ESTATE DEVELOPMENT 0.3%
Fraser & Neave Ltd. 41,000 137,551
Wheelock Properties (S) Ltd. 18,000 38,311
Wing Tai Holdings Ltd. 31,000 64,683
--------------
240,545
--------------
709,114
SOUTH AFRICA 2.0%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.4%
Nedbank Group Ltd. 16,000 309,642
BASIC MINERALS & METALS 0.9%
African Rainbow Minerals Ltd. * 12,000 169,670
AngloGold Ashanti Ltd. 1,500 66,799
Harmony Gold Mining Co., Ltd. * 10,558 146,603
Mittal Steel South Africa Ltd. 16,000 260,858
--------------
643,930
COMMUNICATIONS UTILITIES 0.4%
Telkom South Africa Ltd. 14,000 319,605
INSURANCE 0.3%
Liberty Group Ltd. 14,000 158,865
Sanlam Ltd. 7,607 20,877
--------------
179,742
--------------
1,452,919
SOUTH KOREA 2.9%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Lotte Confectionery Co., Ltd. 70 89,492
AUTOS 0.0%
Hyundai Mobis 240 20,593
BANKS & CREDIT INSTITUTIONS 0.1%
Woori Finance Holdings Co., Ltd. 3,760 90,937
BASIC MINERALS & METALS 0.1%
Korea Zinc Co., Ltd. 730 77,502
BEER, LIQUOR, & TOBACCO 0.1%
KT&G Corp. 990 64,605
CHEMICALS & RUBBER 0.1%
Hanwha Chemical Corp. 2,690 41,747
COMMUNICATIONS UTILITIES 0.4%
KT Corp. 2,700 120,985
KT Freetel Co., Ltd. 4,360 121,817
LS Cable Ltd. 1,310 57,117
--------------
299,919
GOVERNMENT AIRCRAFT & DEFENSE 0.8%
Hyundai Heavy Industries Co., Ltd. 1,410 280,555
Hyundai Mipo Dockyard Co., Ltd. 570 104,692
Samsung Heavy Industries Co., Ltd. 6,460 171,566
--------------
556,813
METAL PRODUCTS & MACHINERY 0.3%
Doosan Corp. * 1,150 93,817
Doosan Infracore Co., Ltd. 5,090 129,466
--------------
223,283
OIL DISTRIBUTION 0.5%
SK Corp. 3,760 368,259
RETAIL 0.2%
Shinsegae Co., Ltd. 220 126,074
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
WHOLESALE 0.2%
Hanwha Corp. 2,430 98,579
--------------
2,057,803
SPAIN 1.8%
- -----------------------------------------------------------------
AIRLINES 0.4%
Iberia Lineas Aereas de Espana S.A. 54,000 288,809
CONSTRUCTION MATERIALS 0.3%
Cementos Portland Valderrivas, S.A. 1,200 181,421
GAS & OTHER PUBLIC UTILITIES 0.4%
Enagas, S.A. 11,900 307,219
LAND & WATER TRANSPORTATION 0.2%
Altadis, S.A. 2,700 173,169
RESTAURANTS, HOTELS & THEATERS 0.5%
NH Hoteles, S.A. 5,600 128,968
Sol Melia, S.A. 8,100 194,987
--------------
323,955
--------------
1,274,573
SWEDEN 1.2%
- -----------------------------------------------------------------
BASIC MINERALS & METALS 0.5%
Boliden AB * 15,000 331,310
COMMUNICATIONS UTILITIES 0.4%
Tele2 AB, Class B 18,000 295,635
GOVERNMENT AIRCRAFT & DEFENSE 0.2%
Saab AB, Series B 6,000 161,925
REAL ESTATE DEVELOPMENT 0.1%
Castellum AB 756 10,920
Kungsleden AB 1,165 20,959
--------------
31,879
--------------
820,749
SWITZERLAND 2.3%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.1%
Verwaltungs-und Privat-Bank AG 280 68,750
BASIC MINERALS & METALS 0.2%
Georg Fischer AG-Reg'd. * 160 115,763
CHEMICALS & RUBBER 0.3%
Clariant AG-Reg'd * 13,000 223,612
DRUGS & PHARMACEUTICALS 0.3%
Ciba Specialty Chemicals AG-Reg'd 3,300 217,876
ELECTRIC UTILITIES 0.0%
Energiedienst Holding AG-Reg'd * 52 26,240
INFORMATION & SERVICES 0.1%
Kuoni Reisen Holding AG-Reg'd * 136 81,582
INSURANCE 1.3%
Baloise Holding AG-Reg'd 2,800 292,371
Helvetia Holding AG 540 231,947
Swiss Life Holding-Reg'd 1,440 362,382
--------------
886,700
--------------
1,620,523
TAIWAN 3.3%
- -----------------------------------------------------------------
AUTOS 0.1%
China Motor Corp. 48,600 42,642
</Table>
See financial notes.
74 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BANKS & CREDIT INSTITUTIONS 0.4%
China Development Financial Holding
Corp. 392,000 174,538
Hua Nan Financial Holdings Co.,
Ltd. 189,000 141,359
--------------
315,897
BASIC MINERALS & METALS 0.1%
Walsin Lihwa Corp. * 146,000 74,627
CELLULAR & WIRELESS 0.1%
Taiwan Mobile Co., Ltd. 105,000 112,479
CHEMICALS & RUBBER 0.7%
Formosa Chemicals & Fibre Corp. 109,730 210,053
Formosa Plastics Corp. 155,000 293,610
--------------
503,663
COMMUNICATIONS UTILITIES 0.1%
Far Eastern Textile Ltd. 3,000 2,574
Far EasTone Telecommunications Co.,
Ltd. 65,000 73,855
--------------
76,429
CONSTRUCTION MATERIALS 0.1%
Taiwan Cement Corp. 89,000 74,834
IT HARDWARE 0.9%
Advanced Semiconductor Engineering,
Inc. * 50,000 59,430
Lite-On Technology Corp. 437 563
Nan Ya Plastics Corp. 96,000 179,515
Nanya Technology Corp. 30,000 25,009
Powerchip Semiconductor Corp. 219,119 130,949
ProMOS Technologies, Inc. * 283,000 109,652
Vanguard International
Semiconductor Corp. 71,379 60,045
Winbond Electronics Corp. * 190,000 67,301
--------------
632,464
MAINFRAME & MINICOMPUTERS 0.2%
Compal Electronics, Inc. 33,320 28,147
Inventec Co., Ltd. 24,000 19,112
Quanta Computer, Inc. 45,550 69,329
--------------
116,588
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6%
Acer, Inc. 82,460 157,915
Asustek Computer, Inc. 64,000 150,273
Wistron Corp. 59,000 89,249
--------------
397,437
--------------
2,347,060
THAILAND 0.8%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.5%
Bangkok Bank Public Co., Ltd. 50,000 154,203
Kasikornbank Public Co., Ltd. 60,000 111,285
Krung Thai Bank Public Co., Ltd. 209,000 72,227
--------------
337,715
CELLULAR & WIRELESS 0.1%
Total Access Communication Public
Co., Ltd. * 15,000 67,660
OIL & COAL RESOURCES 0.1%
Banpu Public Co., Ltd. 7,000 40,035
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
OIL DISTRIBUTION 0.1%
PTT Exploration & Production Public
Co., Ltd. 36,000 92,545
--------------
537,955
TURKEY 0.9%
- -----------------------------------------------------------------
AUTOS 0.4%
Koc Holding A/S * 56,000 250,205
OIL DISTRIBUTION 0.5%
Petrol Ofisi A/S 21,000 89,166
Tupras-Turkiye Petrol Rafinerileri
A/S 12,000 266,057
--------------
355,223
--------------
605,428
UNITED KINGDOM 11.7%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.4%
Tate & Lyle plc 23,709 268,937
AUTOS 0.4%
GKN plc 38,000 285,018
BANKS & CREDIT INSTITUTIONS 0.0%
Intermediate Capital Group plc 58 2,226
BASIC MINERALS & METALS 0.6%
Antofagasta plc 24,078 245,758
Kazakhmys plc 8,887 205,597
--------------
451,355
BEER, LIQUOR, & TOBACCO 0.5%
Scottish & Newcastle plc 29,000 343,483
CELLULAR & WIRELESS 0.3%
The Carphone Warehouse plc 38,000 208,129
COMMUNICATIONS UTILITIES 0.1%
Cable & Wireless 12,000 39,484
COLT Telecom Group S.A. * 18,000 63,172
--------------
102,656
CONSTRUCTION MATERIALS 0.0%
Cookson Group plc 2,523 30,874
ELECTRIC UTILITIES 1.0%
British Energy Group plc * 32,000 307,300
Internationall Power plc 49,000 382,993
--------------
690,293
FOREST PRODUCTS & PAPER 0.1%
DS Smith plc 18,000 79,101
FURNITURE & HOUSEHOLD ITEMS 0.5%
Smiths Group plc 17,279 349,297
GAS & OTHER PUBLIC UTILITIES 0.6%
Kelda Group plc 8,821 163,165
Northumbrian Water Group plc 20,000 122,400
United Utilities plc 11,200 166,875
--------------
452,440
GOVERNMENT AIRCRAFT & DEFENSE 0.1%
Vt Group plc 9,000 87,085
INFORMATION & SERVICES 0.4%
Group 4 Securicor plc 63,000 249,361
</Table>
See financial notes.
Laudus Funds Annual Report 75
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSURANCE 1.5%
Amlin plc 32,000 178,208
Brit Insurance Holdings plc 16,000 101,527
Friends Provident plc 84,000 318,559
Old Mutual 48,000 155,469
Resolution plc 24,800 302,586
--------------
1,056,349
MISCELLANEOUS FINANCE 0.6%
Investec plc 19,200 248,893
Legal & General Gp 48,000 150,666
--------------
399,559
PUBLISHING, BROADCASTING & CINEMA 0.3%
Trinity Mirror plc 17,488 182,704
REAL ESTATE DEVELOPMENT 0.6%
Enterprise Inns plc 24,579 323,963
Mapeley Ltd. 877 67,046
Minerva plc * 3,000 22,589
Shaftesbury plc 2,766 41,258
--------------
454,856
REAL ESTATE INVESTMENT TRUSTS 0.6%
Brixton plc 14,000 140,231
Hammerson plc 8,322 284,539
--------------
424,770
RESTAURANTS, HOTELS & THEATERS 2.4%
Compass Group 32,000 214,328
Greene King plc 10,800 234,418
Marston's plc 9,838 85,482
Millennium & Copthorne Hotel plc 14,501 194,226
Punch Taverns plc 13,000 319,237
Whitbread plc 9,300 346,290
William Hill plc 21,600 270,620
--------------
1,664,601
RETAIL 0.2%
Alliance Boots plc 3,656 73,909
Pendragon plc 30,000 71,387
--------------
145,296
SOFTWARE 0.5%
Dimension Data Holdings plc 70,583 69,689
Logicacmg 72,921 255,689
--------------
325,378
--------------
8,253,768
--------------
TOTAL COMMON STOCK (COST $59,606,638) 67,724,126
--------------
PREFERRED STOCK 1.5% OF NET ASSETS
BRAZIL 1.4%
- -----------------------------------------------------------------
Acesita S.A. 2,100 74,040
Aracruz Celulose S.A. 21,500 111,554
Brasil Telecom Participacoes S.A. * 1,575,000 14,142
Centrais Eletricas Brasileiras S.A. 1,368,000 29,746
Companhia Brasileira de Petroleo
Ipiranga 1,400 17,090
Companhia Energetica de Minas
Gerais 1,365,000 66,915
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Companhia Paranaense de Energia-
Copel * 5,964,000 69,473
Elektro-Eletricidade e Servicos
S.A. 3,812,000 23,775
Eletropaulo Metropolitana S.A. * 1,116,679 52,032
Gerdau S.A. 4,400 80,641
Tele Norte Leste Participacoes S.A. 11,000 152,429
Telemar Norte Leste S.A. 2,700 55,434
Usinas Siderurgicas de Minas Gerais
S.A. 2,900 140,447
Votorantim Celulose e Papel S.A. * 3,800 69,681
--------------
957,399
COLUMBIA 0.1%
- -----------------------------------------------------------------
BanColombia S.A. ADR 3,100 85,839
UNITED KINGDOM 0.0%
- -----------------------------------------------------------------
Rolls-Royce Group plc * 888,000 1,791
--------------
TOTAL PREFERRED STOCK (COST $940,867) 1,045,029
--------------
RIGHTS 0.0% OF NET ASSETS
Citic Pacific Ltd. (a)* 2,200 --
Conwert Immobilien Invest AG * 2,500 --
Suncorp-Metway Ltd. * 2,466 10,575
--------------
TOTAL RIGHTS (COST $ -- ) 10,575
--------------
<Caption>
FACE
SECURITY AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT 1.4% OF NET ASSETS
REPURCHASE AGREEMENT 1.4%
- -----------------------------------------------------------------
Fixed Income Clearing Corp. dated
03/30/07, due 04/02/07 at 5.00%,
with a maturity value of $983,410
(fully collateralized by Federal
Home Loan Bank with a value of
$1,007,219) 983,000 983,000
--------------
TOTAL SHORT-TERM INVESTMENT
(COST $983,000) 983,000
- -----------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 03/31/07, the tax basis cost of the fund's investments was $61,931,534 and
the unrealized appreciation and depreciation was $9,055,176 and ($1,223,980),
respectively, with a net unrealized appreciation of $7,831,196.
At 03/31/07, the prices of certain foreign securities held by the fund
aggregating $61,619,946 were adjusted from their closing market prices following
the guidelines adopted by the fund's Board of Trustees.
* Non-income producing security.
(a) Fair-valued by Management.
ADR -- American Depositary Receipt
CVA -- Dutch Certificate
GDR -- Global Depositary Receipt
See financial notes.
76 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
96.8% COMMON STOCK 1,528,627,990 1,869,932,546
0.1% PREFERRED STOCK 1,621,605 2,433,143
0.1% RIGHTS -- 1,033,254
--% WARRANTS -- 39,371
1.7% SHORT-TERM INVESTMENT 33,108,000 33,108,000
- -----------------------------------------------------------------
98.7% TOTAL INVESTMENTS 1,563,357,595 1,906,546,314
7.6% COLLATERAL INVESTED
FOR SECURITIES ON LOAN 146,492,602 146,492,602
(6.3)% OTHER ASSETS AND
LIABILITIES (122,047,248)
- -----------------------------------------------------------------
100.0% NET ASSETS 1,930,991,668
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK 96.8% OF NET ASSETS
AUSTRALIA 4.3%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
ABB Grain Ltd. 269,671 1,683,906
Forest Enterprises Australia
Ltd. 291,389 173,221
Futuris Corp., Ltd. 749,505 1,309,016
Ridley Corp., Ltd. 914,900 834,862
-----------------
4,001,005
BANKS & CREDIT INSTITUTIONS 0.0%
Bendigo Bank Ltd. 53,732 738,079
BASIC MINERALS & METALS 1.6%
Ausdrill Ltd. 556,300 897,411
BlueScope Steel Ltd. 25,300 214,595
Consolidated Rutile Ltd. 374,075 207,295
Equigold NL 502,059 663,294
Felix Resources Ltd. 351,965 1,419,919
Independence Group NL 362,364 1,452,341
Jabiru Metals Ltd. * 641,876 643,429
Jubilee Mines NL 236,600 3,340,096
Macmahon Holdings Ltd. 1,699,900 1,167,717
Minara Resources Ltd. 540,059 3,215,327
Mincor Resources NL 872,984 2,161,607
Onesteel Ltd. 564,800 2,352,561
Perilya Ltd. 534,800 1,559,359
Portman Ltd. * 106,301 423,304
Sally Malay Mining Ltd. * 585,881 1,860,672
Smorgon Steel Group Ltd. 1,422,508 2,344,259
Sons Of Gwalia Ltd.
(a)(b)(c)* 58,024 --
Straits Resources Ltd. 440,822 1,332,798
Zinifex Ltd. 413,900 5,267,874
-----------------
30,523,858
CHEMICALS & RUBBER 0.2%
Incitec Pivot Ltd. 79,900 3,192,598
CONSTRUCTION & HOMEBUILDING 0.1%
Leighton Holdings Ltd. 1,800 48,751
Sunland Group Ltd. 643,700 1,746,901
-----------------
1,795,652
CONSTRUCTION MATERIALS 0.1%
Adelaide Brighton Ltd. 670,150 1,856,685
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FINANCIAL INVESTMENTS 0.0%
National Hire Group Ltd. 72,200 93,396
FOREST PRODUCTS & PAPER 0.2%
PaperlinX Ltd. 1,123,870 3,782,971
GAS & OTHER PUBLIC UTILITIES 0.1%
Hastings Diversified
Utilities Fund 49,400 129,060
Transpacific Industries Group
Ltd. 243,440 2,118,698
-----------------
2,247,758
GOVERNMENT AIRCRAFT & DEFENSE 0.0%
Austal Ltd. 4,900 12,482
INFORMATION & SERVICES 0.2%
Coffey International Ltd. 25,700 81,375
Credit Corp Group Ltd. 3,800 31,442
Monadelphous Group Ltd. 153,684 1,319,547
Programmed Maintenance
Services Ltd. 8,200 34,159
WorleyParsons Ltd. 120,300 2,680,723
-----------------
4,147,246
LAND & WATER TRANSPORTATION 0.0%
K & S Corp., Ltd. 4,444 13,941
MISCELLANEOUS FINANCE 0.1%
IOOF Holdings Ltd. 224,900 1,811,517
OIL & COAL RESOURCES 0.0%
New Hope Corp., Ltd. 480,937 594,457
PUBLISHING, BROADCASTING & CINEMA 0.3%
Austereo Group Ltd. 664,205 1,100,235
Seven Network Ltd. 71,500 659,801
Village Roadshow Ltd. 111,739 298,016
West Australian Newspapers
Holdings Ltd. 327,870 4,139,384
-----------------
6,197,436
REAL ESTATE DEVELOPMENT 0.3%
Lend Lease Corp., Ltd. 289,500 4,674,055
Port Bouvard Ltd. 103,200 212,546
-----------------
4,886,601
RESTAURANTS, HOTELS & THEATERS 0.0%
Amalgamated Holdings Ltd. 118,887 624,192
RETAIL 0.3%
David Jones Ltd. 560,500 2,059,695
Goodman Fielder Ltd. 1,161,814 2,293,046
Just Group Ltd. 277,628 934,285
Specialty Fashion Group Ltd. 60,318 95,298
-----------------
5,382,324
SOFTWARE 0.1%
HPAL Ltd. 325,379 509,877
Iress Market Technology Ltd. 158,276 1,036,201
Oakton Ltd. 47,825 171,898
UXC Ltd. 604,692 845,014
-----------------
2,562,990
TEXTILES & APPAREL 0.2%
Pacific Brands Ltd. 1,157,300 2,870,386
</Table>
See financial notes.
Laudus Funds Annual Report 77
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
WHOLESALE 0.3%
Alesco Corp., Ltd. 27,468 277,339
Crane Group Ltd. 108,400 1,436,308
Housewares International Ltd.
* 3,353 7,292
Sims Group Ltd. 202,873 3,824,129
-----------------
5,545,068
-----------------
82,880,642
AUSTRIA 2.0%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
Agrana Beteiligungs AG 2,589 261,187
AIRLINES 0.0%
Austrian Airlines/
Osterreichische
Luftverkehrs AG * 11,918 172,316
BASIC MINERALS & METALS 1.3%
Boehler-uddeholm Ag 118,181 11,388,047
Voestalpine AG (a) 171,519 12,445,533
-----------------
23,833,580
COMMUNICATIONS UTILITIES 0.1%
Telekom Austria AG 66,400 1,668,459
FOREST PRODUCTS & PAPER 0.1%
Mayr-Melnhof Karton AG 5,583 1,246,342
REAL ESTATE DEVELOPMENT 0.5%
Conwert Immobilien Invest AG
* 66,243 1,457,464
Immofinanz Immobilien
Analagen AG * 540,000 8,684,363
-----------------
10,141,827
SOFTWARE 0.0%
Brain Force Holding AG 4,740 21,362
S&T System Integration &
Technology Distribution AG
* 4,341 330,539
-----------------
351,901
TEXTILES & APPAREL 0.0%
Linz Textil Holding AG * 158 35,881
Wolford AG * 2,744 137,310
-----------------
173,191
WHOLESALE 0.0%
Ottakringer Brauerei AG 564 64,444
-----------------
37,913,247
BELGIUM 1.5%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
Sipef N.V. 69 24,397
BASIC MINERALS & METALS 0.1%
Bekaert N.V. 6,680 911,818
CHEMICALS & RUBBER 0.2%
Solvay Sa 4,258 656,577
Tessenderlo Chemie N.V. 66,754 3,271,856
-----------------
3,928,433
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMERCIAL AIRCRAFT & COMPONENTS 0.0%
Societe Anonyme Belge de
Constructions Aeronautques
(SABCA) 681 18,194
FINANCIAL INVESTMENTS 0.0%
Econocom Group 61,677 659,130
INSTRUMENTS 0.4%
Agfa Gevaert N.V. 265,000 5,998,909
Ion Bearn Applications * 39,216 1,144,144
-----------------
7,143,053
METAL PRODUCTS & MACHINERY 0.0%
Jensen Group N.V. * 31,418 255,140
REAL ESTATE DEVELOPMENT 0.3%
Cofinimmo 22,600 4,710,782
Compagnie Immobiliere de
Belgique S.A. 2,428 154,145
Intervest Offices 7,416 318,723
Wereldhave Belgium 35 3,038
-----------------
5,186,688
RESTAURANTS, HOTELS & THEATERS 0.2%
S.A. D'Ieteren N.V. 8,310 3,423,581
RETAIL 0.3%
Brantano Group N.V. 4,261 200,929
Delhaize Group 69,956 6,455,404
-----------------
6,656,333
SOFTWARE 0.0%
Dolmen Computer Applications
N.V. 9,172 147,858
WHOLESALE 0.0%
SAPEC S.A. 2,737 363,949
-----------------
28,718,574
CANADA 5.7%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Saputo, Inc. 50,440 2,017,600
AIRLINES 0.1%
ACE Aviation Holdings, Inc.,
Class A * 72,300 1,907,542
Transat A.T., Inc., Class A 17,300 528,066
-----------------
2,435,608
BANKS & CREDIT INSTITUTIONS 0.1%
Laurentian Bank of Canada 60,408 1,747,620
BASIC MINERALS & METALS 1.6%
Agnico-Eagle Mines Ltd. 44,060 1,558,224
Algoma Steel, Inc. * 82,100 3,716,367
Aur Resources, Inc. 210,400 4,428,514
FNX Mining Co., Inc. * 100,442 2,201,111
Gerdau Ameristeel Corp. 175,260 2,076,706
Inmet Mining Corp. 136,100 7,485,795
IPSCO, Inc. 26,574 3,488,341
Northgate Minerals Corp. * 70,600 248,889
Sherritt International Corp. 323,821 4,667,286
Teck Cominco Ltd., Class B 38 2,649
Yamana Gold, Inc. 108,493 1,568,426
-----------------
31,442,308
</Table>
See financial notes.
78 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BEER, LIQUOR, & TOBACCO 0.0%
Rothmans, Inc. 50 890
BIOTECHNOLOGY 0.1%
QLT, Inc. * 203,143 1,580,099
CHEMICALS & RUBBER 0.2%
Agrium, Inc. 400 15,366
Methanex Corp. 185,503 4,134,250
-----------------
4,149,616
COMMUNICATIONS UTILITIES 0.1%
Cogeco Cable, Inc. 24,130 864,249
DRUGS & PHARMACEUTICALS 0.1%
Angiotech Pharmaceuticals,
Inc. * 237,913 1,283,844
Axcan Pharma, Inc. * 57,000 944,487
Patheon, Inc. * 8,375 34,095
-----------------
2,262,426
ELECTRIC UTILITIES 0.3%
ATCO Ltd., Class I 158,900 6,468,861
FOREST PRODUCTS & PAPER 0.1%
Canfor Pulp Income Fund 74 912
Cascades, Inc. 137,280 1,385,285
Intertape Polymer Group, Inc.
* 133,100 547,618
-----------------
1,933,815
FURNITURE & HOUSEHOLD ITEMS 0.0%
Dorel Industries, Inc., Class
B 5,500 178,411
GAS & OTHER PUBLIC UTILITIES 0.0%
Newalta Income Fund 28,500 639,121
HEALTH CARE & HOSPITAL 0.0%
MDS, Inc. 3,010 56,967
INFORMATION & SERVICES 0.1%
FirstService Corp. * 82,978 2,285,579
INSURANCE 0.2%
Industrial Alliance Insurance
and Financial Services,
Inc. 137,289 4,222,722
Kingsway Financial Services,
Inc. 12,190 228,173
Northbridge Financial Corp. 1,700 48,210
-----------------
4,499,105
IT HARDWARE 0.1%
Celestica, Inc. * 177,550 1,084,216
METAL PRODUCTS & MACHINERY 0.3%
Groupe Laperriere &
Verreault, Inc., Class A * 62,361 1,593,460
Husky Injection Molding
Systems Ltd. 45,360 302,531
Linamar Corp. 197,584 2,702,340
Martinrea International, Inc.
* 101,170 1,301,320
-----------------
5,899,651
MISCELLANEOUS FINANCE 0.3%
Canaccord Capital, Inc. 123,941 2,374,686
Dundee Corp., Class A * 35,770 1,652,329
Dundee Wealth Management,
Inc. 135,290 1,857,381
-----------------
5,884,396
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
OIL & COAL RESOURCES 0.2%
Canetic Resources Trust 204,412 2,645,228
OIL DRILLING & SERVICES 0.5%
Flint Energy Services Ltd. * 94,071 2,036,236
Real Resources, Inc. * 60,962 516,949
Tesco Corp. * 85,451 2,274,499
Trican Well Service Ltd. 220,400 4,362,183
-----------------
9,189,867
PUBLISHING, BROADCASTING & CINEMA 0.5%
Astral Media, Inc. 940 32,731
CanWest Global Communications
Corp. * 160,514 1,537,709
Corus Entertainment, Inc.,
Class B 119,000 4,540,450
Torstar Corp., Class B 4,283 73,121
Transcontinental, Inc., Class
A 215,158 3,982,613
-----------------
10,166,624
REAL ESTATE DEVELOPMENT 0.0%
BPO Properties Ltd. 2,929 175,029
MI Developments, Inc., Class
A 900 33,646
-----------------
208,675
REAL ESTATE INVESTMENT TRUSTS 0.1%
Canadian Real Estate
Investment Trust 28,290 759,627
Dundee Real Estate Investment
Trust 53,483 1,839,130
-----------------
2,598,757
RETAIL 0.3%
Alimentation Couche-Tard,
Inc., Class B 10 209
Empire Co., Ltd., Class A 22,500 781,507
Leon's Furniture Ltd. 43,000 1,862,278
Sobeys, Inc. 92,103 2,911,875
-----------------
5,555,869
SOAPS & COSMETICS 0.1%
CCL Industries, Inc., Class B 60,620 1,950,657
SOFTWARE 0.2%
CGI Group, Inc. * 20,140 174,099
Open Text Corp. * 148,200 3,297,755
-----------------
3,471,854
-----------------
111,218,069
CHINA 0.5%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.0%
Industrial and Commercial
Bank of China (Asia) Ltd. 8,000 17,481
BASIC MINERALS & METALS 0.0%
Jiangxi Copper Co., Ltd.,
Class H 18,000 21,612
DRUGS & PHARMACEUTICALS 0.1%
Shanghai Industrial Holdings
Ltd. 692,000 1,592,254
Tong Ren Tang Technologies
Co., Ltd., Shares H 77,000 136,140
-----------------
1,728,394
</Table>
See financial notes.
Laudus Funds Annual Report 79
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
ELECTRIC UTILITIES 0.1%
Huadian Power International
Co., Shares H 3,224,000 1,153,604
GOVERNMENT AIRCRAFT & DEFENSE 0.0%
COSCO International Holdings
Ltd. 500,000 262,499
INFORMATION & SERVICES 0.0%
Shenzhen Expressway Co.,
Ltd., Shares H 74,000 46,437
LAND & WATER TRANSPORTATION 0.1%
GZI Transportation Ltd. 614,000 359,191
Sichuan Expressway Co., Ltd. 6,015,000 1,354,107
Sinotrans Ltd., Class H 428,000 170,527
-----------------
1,883,825
METAL PRODUCTS & MACHINERY 0.1%
Harbin Power Equipment Co.,
Ltd. 1,552,000 1,748,741
MISCELLANEOUS FINANCE 0.0%
Shenyin Wanguo HK Ltd. 595,000 174,084
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0%
Great Wall Technology Co.,
Ltd., Class H 2,072,000 641,327
SOFTWARE 0.0%
Digital China Holdings Ltd. 119,000 46,655
TEXTILES & APPAREL 0.1%
Weiqiao Textile Co., Ltd.,
Class H 927,000 1,339,605
-----------------
9,064,264
DENMARK 0.6%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Danisco A/S (a) 12,400 972,787
Harboes Bryggeri A/S 315 12,353
Hedegaard A/S 943 103,937
-----------------
1,089,077
BANKS & CREDIT INSTITUTIONS 0.0%
Ostjydsk Bank A/S 982 226,477
BEER, LIQUOR, & TOBACCO 0.4%
Carlsberg A/S, Class B (a) 62,697 6,811,431
CONSTRUCTION & HOMEBUILDING 0.0%
Ove Arkil Holding A/S 899 169,749
FOREST PRODUCTS & PAPER 0.0%
Brodrene Hartmann A/S 4,029 149,523
ITH Industri Invest A/S 245 9,993
-----------------
159,516
INFORMATION & SERVICES 0.0%
Per Aarsleff A/S, Class B 7,416 704,801
LAND & WATER TRANSPORTATION 0.0%
DFDS A/S (a) 6,009 808,270
METAL PRODUCTS & MACHINERY 0.0%
GPV Industri A/S 4,000 214,012
PUBLISHING, BROADCASTING & CINEMA 0.0%
SKAKO Industries A/S 4,500 244,454
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
REAL ESTATE DEVELOPMENT 0.1%
Keops A/S (a)* 170,044 644,670
Nordicom A/S 2,455 311,825
-----------------
956,495
WHOLESALE 0.0%
Sanistaal A/S, Class B 4,394 818,238
-----------------
12,202,520
FINLAND 2.0%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
Lannen Tehtaat Oyi (a) 13,978 429,740
AIRLINES 0.2%
Finnair Oyj (a) 203,814 3,548,050
BANKS & CREDIT INSTITUTIONS 0.0%
OKO Bank plc (OKO Pankki
Oyj), Series A (a) 44,596 759,814
BASIC MINERALS & METALS 0.5%
Outokumpu Oyj (a) 108,752 3,743,325
Rautaruukki Oyj (a) 127,363 5,934,146
-----------------
9,677,471
CHEMICALS & RUBBER 0.4%
Kemira GrowHow Oyj 74,658 1,008,066
Kemira Oyj (a) 266,797 6,106,107
-----------------
7,114,173
FINANCIAL INVESTMENTS 0.0%
Norvestia Oyj, Class B 18,989 208,607
FOREST PRODUCTS & PAPER 0.1%
Huhtamaki Oyj (a) 138,554 2,300,135
INSTRUMENTS 0.1%
Larox Oyj (a) 28,589 343,567
Vaisala Oyj, Shares A (a) 18,932 884,655
-----------------
1,228,222
IT HARDWARE 0.0%
Elcoteq Network Corp., Class
A (a) 1,894 19,973
Okmetic Oyj * 60,000 307,807
-----------------
327,780
METAL PRODUCTS & MACHINERY 0.0%
Kyro Oyj 2,544 13,767
MISCELLANEOUS FINANCE 0.0%
Neomarkka Oyj (a) 21,000 229,178
REAL ESTATE DEVELOPMENT 0.2%
Citycon Oyj 169,466 1,329,255
Sponda Oyj (a) 142,677 2,466,296
Technopolis Ojy (a) 52,496 534,091
-----------------
4,329,642
RETAIL 0.4%
Kesko Oyj, Class B (a) 157,604 8,439,344
SOFTWARE 0.1%
SysOpen Digia Oyi 11,788 57,212
TietoEnator Oyj (a) 35,014 1,018,890
-----------------
1,076,102
-----------------
39,682,025
</Table>
See financial notes.
80 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FRANCE 10.2%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Bongrain S.A. 4,174 391,380
Evialis 8,700 418,794
Rougier S.A. 883 192,696
Sucriere de Pithiviers Le
Vieil 306 290,325
-----------------
1,293,195
AIRLINES 0.9%
Air France-KLM (a) 370,400 16,941,484
AUTOS 1.0%
Plastic Omnium S.A. 6,932 342,806
PSA Peugeot Citroen (a) 169,930 11,981,567
Societe Fonciere Financiere
et de Participations (FFP) 25,473 7,005,261
-----------------
19,329,634
BANKS & CREDIT INSTITUTIONS 0.0%
Caisse Regionale du Credit
Agricole Mutuel Loire
Haute-Loire 815 71,747
BASIC MINERALS & METALS 0.4%
Eramet 35,749 7,483,474
CHEMICALS & RUBBER 1.4%
Compagnie Generale des
Etablissements Michelin,
Class B (a) 252,600 27,928,254
Societe Anonyme d'Explosifs
et de Produits Chimiques 572 309,085
-----------------
28,237,339
COMMUNICATIONS UTILITIES 0.2%
Avenir Telecom * 14,017 45,028
Net2S * 21,350 90,394
Publicis Groupe (a) 74,400 3,591,273
-----------------
3,726,695
CONSTRUCTION & HOMEBUILDING 0.0%
Compagnie Industrielle et
Financiere d' Entreprises 598 158,370
CONSTRUCTION MATERIALS 0.2%
Ciments Francais S.A. 15,923 3,389,181
DRUGS & PHARMACEUTICALS 0.0%
Boiron S.A. 3,084 85,455
FINANCIAL INVESTMENTS 0.0%
IDI 1,217 55,402
Societe Alsacienne et
Lorraine de Valeurs
d'Entreprises et de
Participations 3,835 547,862
-----------------
603,264
FOREST PRODUCTS & PAPER 0.4%
Sequana Capital 236,053 7,173,068
GOVERNMENT AIRCRAFT & DEFENSE 0.3%
Beneteau 40,016 4,834,216
Societe Industrielle
D'Aviations Latecoere S.A. 6,185 187,140
Thales S.A. (a) 26,800 1,562,651
-----------------
6,584,007
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INFORMATION & SERVICES 0.0%
A Novo * 102,365 104,828
Ginger * 8,835 262,407
Groupe Crit 4,174 195,120
Groupe Diffusion Plus 85 3,407
Tessi S.A. 3,864 242,113
-----------------
807,875
INSURANCE 0.5%
CNP Assurances (a) 88,100 10,309,784
IT HARDWARE 0.1%
Radiall S.A. 3,329 458,459
Wavecom S.A. * 48,792 1,104,013
-----------------
1,562,472
LAND & WATER TRANSPORTATION 0.1%
Financiere de l'Odet 1,700 781,809
Touax 13,000 471,981
-----------------
1,253,790
METAL PRODUCTS & MACHINERY 0.5%
Constructions Industrielles
dela Mediterranee S.A. 1,056 179,160
Gevelot 3,516 277,114
Securidev S.A. 356 12,175
Valeo S.A. (a) 155,202 9,129,511
-----------------
9,597,960
MISCELLANEOUS FINANCE 0.8%
ABC Arbitrage 16,943 126,958
Natixis 583,542 14,284,417
Viel et Compagnie 70,040 467,815
-----------------
14,879,190
PUBLISHING, BROADCASTING & CINEMA 0.3%
Havas S.A. (a) 1,149,306 6,648,444
REAL ESTATE DEVELOPMENT 0.8%
Fonciere des Murs 83 13,083
Fonciere Des Regions 48,498 9,118,098
Icade Fonciere des Pimonts
S.A. 40 9,347
Nexity 71,360 6,131,565
-----------------
15,272,093
RESTAURANTS, HOTELS & THEATERS 0.8%
Club Mediterranee S.A. * 225 13,228
Compagnie des Alpes 2,065 198,614
Groupe Flo * 44,837 627,360
Pierre & Vacances 3,129 431,228
Sodexho Alliance S.A. (a) 185,200 13,591,232
-----------------
14,861,662
SOFTWARE 1.4%
Atos Origin S.A. (a)* 138,685 9,336,350
Cap Gemini S.A. (a) 208,500 15,869,681
Esi Group * 19,800 313,863
GFI Informatique 37,935 362,016
Jet Multimedia 29,279 577,467
Lectra 5,256 44,334
XRT 110,000 228,332
-----------------
26,732,043
</Table>
See financial notes.
Laudus Funds Annual Report 81
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
WHOLESALE 0.0%
Guillin Emballages 400 37,117
-----------------
197,039,343
GERMANY 4.6%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Frosta AG 10,062 219,862
Suedzucker AG (a) 74,826 1,428,134
-----------------
1,647,996
AUTOS 0.0%
Grammer AG 3,054 94,962
BASIC MINERALS & METALS 0.1%
Euromicron AG 1,897 46,518
Leoni AG 1,305 54,052
Norddeutsche Affinerie AG (a) 57,754 1,836,215
-----------------
1,936,785
BEER, LIQUOR, & TOBACCO 0.0%
Sektkellerei Schloss
Wachenheim AG 23,575 326,722
CELLULAR & WIRELESS 0.1%
Drillisch AG 108,870 1,148,941
Funkwerk AG 12,971 344,529
-----------------
1,493,470
CHEMICALS & RUBBER 0.6%
Lanxess (a)* 217,071 11,230,306
COMMERCIAL AIRCRAFT & COMPONENTS 0.5%
MTU Aero Engines Holding AG 147,300 8,852,941
CONSTRUCTION MATERIALS 0.0%
Augusta Technologie AG * 18,872 370,337
DRUGS & PHARMACEUTICALS 0.0%
Altana AG 8,853 575,840
ELECTRIC UTILITIES 0.2%
MVV Energie AG 90,209 3,422,362
FOREST PRODUCTS & PAPER 0.0%
Westag & Getalit AG 2,631 68,887
GOVERNMENT AIRCRAFT & DEFENSE 0.1%
Rheinmetall AG 26,676 2,490,135
HEALTH CARE & HOSPITAL 0.0%
Maternus-Kliniken AG * 5,738 14,564
INFORMATION & SERVICES 0.1%
D. Logistics AG (a)* 114,503 286,241
Rucker AG 28,950 329,011
TUI AG (a) 44,952 1,111,292
-----------------
1,726,544
INSTRUMENTS 0.5%
Fresenius AG (a) 119,232 9,653,937
INSURANCE 0.1%
AMB Generali Holding AG 2,086 326,396
Wuerttembergische
Lebensversicherung AG 32,600 1,846,465
-----------------
2,172,861
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
IT HARDWARE 1.0%
ADCapital AG 498 7,563
Elmos Semiconductor AG * 9,868 110,901
Infineon Technologies AG * 1,302,403 20,281,839
-----------------
20,400,303
METAL PRODUCTS & MACHINERY 0.3%
Duerr AG * 53,317 1,759,948
Gesco AG 8,232 422,900
Gildemeister AG (a) 170,000 2,969,660
-----------------
5,152,508
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.4%
Heidelberger Druckmaschinen
AG 163,122 7,488,956
Koenig & Bauer AG 9,040 344,856
-----------------
7,833,812
RESTAURANTS, HOTELS & THEATERS 0.0%
IFA Hotel & Touristik AG * 25,000 335,966
RETAIL 0.3%
Hornback Baumarkt
Aktiengesellschaft 37,600 2,564,172
KarstadtQuelle AG (a)* 70,682 2,599,216
-----------------
5,163,388
SOFTWARE 0.1%
Bechtle AG 15,839 464,430
ComBOTS AG (a)* 5,459 80,694
Computerlinks AG 16,576 319,566
Mensch + Maschine 7,903 53,860
PC-Ware AG 12,805 228,098
REALTECH AG 13,166 190,828
syzygy AG 37,013 198,253
-----------------
1,535,729
WHOLESALE 0.1%
Herlitz AG * 8,321 36,746
INTERSEROH AG 29,687 1,562,621
-----------------
1,599,367
-----------------
88,099,722
GREECE 0.3%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.2%
Bank of Greece 26,314 3,444,189
COMMUNICATIONS UTILITIES 0.1%
Hellenic Telecommunications
Organization S.A. (OTE) * 49,110 1,339,589
RESTAURANTS, HOTELS & THEATERS 0.0%
Opap Sa 15,038 571,583
-----------------
5,355,361
HONG KONG 1.7%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.1%
Dah Sing Financial Group 103,200 897,900
Fubon Bank (Hong Kong) Ltd. 108,000 62,612
Liu Chong Hing Bank Ltd. 185,000 487,988
Wing Lung Bank Ltd. 95,200 1,051,340
-----------------
2,499,840
</Table>
See financial notes.
82 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BASIC MINERALS & METALS 0.0%
China Oriental Group Co.,
Ltd. 25,000 8,263
CELLULAR & WIRELESS 0.0%
SmarTone Telecommunications
Holdings Ltd. 103,000 118,634
CONSUMER DURABLES 0.0%
Alco Holdings Ltd. 122,000 63,032
FINANCIAL INVESTMENTS 0.0%
Peregrine Investment Holdings
Ltd. (b)(c)* 84,000 --
FURNITURE & HOUSEHOLD ITEMS 0.1%
Chow Sang Sang Holdings
International Ltd. 28,000 18,902
EganaGoldpfeil (Holdings)
Ltd. 2,788,000 1,957,869
-----------------
1,976,771
INFORMATION & SERVICES 0.0%
USI Holdings Ltd. (c) 722,727 419,013
Wai Kee Holdings Ltd. 74,000 28,404
-----------------
447,417
IT HARDWARE 0.2%
Moulin Global Eyecare
Holdings Ltd. (b)(c)* 268,000 --
Truly International Holdings
Ltd. 1,300,760 1,206,392
Vtech Holdings Ltd. 357,000 2,568,790
-----------------
3,775,182
LAND & WATER TRANSPORTATION 0.2%
Jinhui Holdings Ltd. * 939,000 391,246
Transport International
Holdings Ltd. 427,200 2,317,968
-----------------
2,709,214
METAL PRODUCTS & MACHINERY 0.0%
Chen Hsong Holdings Ltd. 126,000 81,877
MISCELLANEOUS FINANCE 0.2%
Allied Properties (H.K.) Ltd. 404,000 444,344
COL Capital Ltd. 480,000 207,122
Guoco Group Ltd. 268,000 3,767,258
Hongkong Chinese Ltd. 180,000 33,321
-----------------
4,452,045
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0%
Proview International
Holdings Ltd. 1,908,000 260,539
PUBLISHING, BROADCASTING & CINEMA 0.1%
eSun Holdings Ltd. * 1,710,000 1,359,089
Next Media Ltd. 926,000 318,227
-----------------
1,677,316
REAL ESTATE DEVELOPMENT 0.6%
Allied Group Ltd. 207,600 572,663
Associated International
Hotels Ltd. * 4,000 6,149
Chevalier International
Holdings Ltd. 356,000 364,421
China Motor Bus Co., Ltd. 4,000 30,689
Coastal Greenland Ltd. 1,268,000 177,908
Goldlion Holdings Ltd. 300,000 62,444
Great Eagle Holdings Ltd. 5,000 16,895
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
HKC Holdings Ltd. 1,574,000 276,643
Hong Kong Ferry (Holdings)
Co., Ltd. 294,280 328,320
Hopewell Holdings Ltd. 21,000 81,777
Hopson Development Holdings
Ltd. 948,000 2,370,588
Keck Seng Investments 340,000 159,698
Kerry Properties Ltd. 571,000 2,928,468
Lippo Ltd. 21,000 8,289
Melbourne Enterprises Ltd. 2,000 11,609
New World China Land Ltd. 832,400 499,707
Pacific Century Premium
Developments Ltd. 1,464,000 462,713
Shanghai Real Estate Ltd. 78,000 19,441
Tai Cheung Holdings Ltd. 1,423,520 871,245
Wheelock Properties (S) Ltd. 1,364,000 1,440,256
Wing On Co. International
Ltd. 256,500 425,609
-----------------
11,115,532
RESTAURANTS, HOTELS & THEATERS 0.1%
Harbour Centre Development
Ltd. 180,000 317,911
Hongkong & Shanghai Hotels
Ltd. 952,192 1,501,740
-----------------
1,819,651
SOFTWARE 0.0%
SUNeVision Holdings Ltd. 1,050,280 145,172
WHOLESALE 0.1%
Champion Technology Holdings
Ltd. 4,363,582 869,428
Tan Chong International Ltd. 1,236,000 300,557
-----------------
1,169,985
-----------------
32,320,470
IRELAND 1.0%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.4%
Kerry Group plc, Class A 306,263 8,560,589
IT HARDWARE 0.0%
Vislink plc 263,135 507,240
OIL & COAL RESOURCES 0.1%
Dragon Oil plc * 314,975 1,110,805
PUBLISHING, BROADCASTING & CINEMA 0.4%
Independent News & Media plc
(a) 1,603,000 7,300,760
SOFTWARE 0.0%
Iona Technologies plc * 29,976 181,366
WHOLESALE 0.1%
DCC plc 41,105 1,443,856
-----------------
19,104,616
ITALY 4.7%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
Centrale del Latte di Torino
& C S.p.A. 9,679 59,955
La Doria S.p.A. 107,874 352,429
-----------------
412,384
</Table>
See financial notes.
Laudus Funds Annual Report 83
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BANKS & CREDIT INSTITUTIONS 0.0%
Meliorbanca S.p.A. 28,174 157,939
BASIC MINERALS & METALS 0.0%
KME Group * 1,191,104 957,894
CHEMICALS & RUBBER 0.5%
Montefibre S.p.A. * 431,574 485,509
Pirelli & C. S.p.A. (a) 8,037,000 8,888,641
-----------------
9,374,150
CONSTRUCTION & HOMEBUILDING 0.1%
Vianini Lavori S.p.A. 134,442 2,054,706
CONSTRUCTION MATERIALS 0.9%
Buzzi Unicem S.p.A. (a) 99,221 3,023,121
Italcementi S.p.A. (a) 267,899 8,045,527
Italmobiliare S.p.A. 50,802 5,882,528
-----------------
16,951,176
ELECTRIC UTILITIES 0.6%
ACEA S.p.A. 169,809 3,185,329
C.I.R. S.p.A. -- Compagnie
Industriali Riunite (a) 1,620,000 6,460,690
Cofide S.p.A. -- Compagnia
Finanziaria De Benedetti 769,882 1,336,666
-----------------
10,982,685
FOREST PRODUCTS & PAPER 1.1%
IFIL -- Investments S.p.A.
(a) 2,122,709 20,804,089
FURNITURE & HOUSEHOLD ITEMS 0.0%
Targetti Sankey S.p.A. 61,225 499,567
GAS & OTHER PUBLIC UTILITIES 0.2%
Acegas-APS S.p.A. 61,646 768,940
ACSM Como S.p.A 47,000 147,472
Iride S.p.A. 666,154 2,256,493
-----------------
3,172,905
GOVERNMENT AIRCRAFT & DEFENSE 0.5%
Finmeccanica S.p.A. (a) 344,800 10,364,533
INFORMATION & SERVICES 0.0%
Cam Finanziaria S.p.A. (a) 90,636 202,197
I Grandi Viaggi S.p.A. 88,636 317,166
-----------------
519,363
INSTRUMENTS 0.0%
Gefran S.p.A. 52,276 381,302
INSURANCE 0.0%
Ergo Previdenza S.p.A. 7,640 54,653
LAND & WATER TRANSPORTATION 0.0%
Autostrade Meridionali S.p.A. 216 9,575
Navigazione Montanari S.p.A. 2,161 11,486
-----------------
21,061
METAL PRODUCTS & MACHINERY 0.2%
Danieli S.p.A. -- Officine
Meccanishe Danieli & C. (a) 143,186 3,373,241
MISCELLANEOUS FINANCE 0.0%
Mittel S.p.A. 1,230 10,481
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PUBLISHING, BROADCASTING & CINEMA 0.2%
A.S. Roma S.p.A. * 111,113 94,063
Mondadori (Arnoldo) Editore
S.p.A. (a) 376,000 3,933,337
Monrif S.p.A. 242,871 387,056
Telecom Italia Media S.p.A.
(a) 907,930 394,548
-----------------
4,809,004
REAL ESTATE DEVELOPMENT 0.1%
Beni Stabili S.p.A. (a) 729,001 1,215,357
IPI S.p.A. 9,935 92,949
Vittoria Assicurazioni S.p.A. 4,787 79,294
-----------------
1,387,600
RETAIL 0.2%
Gruppo Coin S.p.A. * 383,923 2,913,065
SOAPS & COSMETICS 0.0%
Mirato S.p.A. 32,755 403,955
SOFTWARE 0.1%
Banco di Sardegna S.p.A. 1,532 41,712
Digital Bros S.p.A. 2,330 20,938
Engineering Ingegneria
Informatica S.p.A. 29,038 1,371,139
-----------------
1,433,789
-----------------
91,039,542
JAPAN 17.3%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.8%
Coca-Cola Central Japan Co.,
Ltd. (a) 291 2,260,829
DyDo Drinco, Inc. (a) 46,600 1,900,463
Fuji Oil Co., Ltd. 137,000 1,148,212
Itoham Foods, Inc. 88,000 402,204
Mikuni Coca-Cola Bottling
Co., Ltd. 110,500 1,154,992
Morinaga & Co., Ltd. (a) 671,000 1,574,917
Morinaga Milk Industry Co.,
Ltd. 47,000 231,656
Nichiwa Sangyo Co., Ltd. 17,000 66,840
Nippon Flour Mills Co., Ltd. 574,000 2,316,005
Nisshin Seifun Group, Inc.
(a) 241,500 2,453,043
Q.P. 1,000 9,061
Tokatsu Foods Co., Ltd. 36,000 185,714
Yamazaki Baking Co., Ltd. 127,000 1,154,799
Yonekyu Corp. 17,000 172,263
-----------------
15,030,998
AUTOS 1.0%
Aichi Machine Industry Co.,
Ltd. (a) 331,000 853,033
Calsonic Kansei Corp. (a) 72,000 345,483
Daido Metal Co., Ltd. (a) 37,000 239,212
Fuji Heavy Industries Ltd. 523,000 2,708,665
Futaba Industrial Co., Ltd.
(a) 123,200 2,979,635
HI-LEX Corp. 26,700 437,588
Hino Motors Ltd. (a) 152,000 807,911
Kanto Auto Works Ltd. (a) 197,200 2,499,887
Kyokuto Kaihatsu Kogyo Co.,
Ltd. 66,000 540,111
Mitsuba Corp. 129,000 1,008,236
Nissan Shatai Co., Ltd. 182,000 924,900
</Table>
See financial notes.
84 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Pacific Industrial Co., Ltd. 65,000 435,912
Press Kogyo Co., Ltd. 34,000 167,423
Sanden Corp. (a) 275,000 1,201,280
Topre Corp. 129,600 1,178,845
Topy Industries Ltd. 683,000 2,739,395
Unipres Corp. 117,800 869,096
Yorozu Corp. (a) 19,900 280,464
-----------------
20,217,076
BANKS & CREDIT INSTITUTIONS 1.0%
Aichi Bank Ltd. (a) 22,300 2,446,672
Akita Bank Ltd. 250,000 1,277,561
Daishi Bank Ltd. 562,000 2,374,801
Higo Bank Ltd. 29,000 196,487
Hyakugo Bank Ltd. 374,000 2,397,397
Kita-Nippon Bank Ltd. 11,600 516,700
Kyushu-Shinwa Holdings, Inc.
* 705,000 1,032,669
Miyazaki Bank Ltd. 21,000 93,186
Orient Corp. (a)* 205,000 348,353
San-in Godo Bank Ltd. 46,000 434,589
Shiga Bank Ltd. 251,000 1,738,312
Shinki Co., Ltd. 86,700 244,654
Taiko Bank Ltd. 71,000 216,344
The Bank of Iwate Ltd. 14,000 807,763
The Chukyo Bank Ltd. 89,000 283,509
The Eighteenth Bank Ltd. 50,000 233,198
The Kumamoto Family Bank Ltd.
(c)* 48,000 85,132
The Mie Bank Ltd. 363,000 1,792,811
Toho Bank Ltd. 344,000 1,487,976
Tomato Bank Ltd. 46,000 101,292
Yamagata Bank Ltd. 112,000 595,886
-----------------
18,705,292
BASIC MINERALS & METALS 2.7%
Ahresty Corp. 49,300 1,331,384
Asahi Industries Co., Ltd. 205 447,761
Chubu Steel Plate Co., Ltd. 106,500 1,290,647
Daiki Aluminium Industry Co.,
Ltd. 167,000 1,142,513
Dowa Mining 391,000 3,956,478
Fujikura Ltd. (a) 333,000 2,338,100
Godo Steel Ltd. (a) 504,000 2,685,200
Hitachi Cable Ltd. (a) 411,000 2,330,869
Mitsui Mining & Smelting Co.,
Ltd. (a) 446,000 2,439,333
Nakayama Steel Works Ltd. (a) 454,000 1,744,997
Nichia Steel Works Ltd. 154,000 661,716
Nippon Light Metal (a) 1,179,000 3,332,902
Nisshin Steel Co., Ltd. (a) 1,216,000 5,226,365
Osaka Steel Co., Ltd. (a) 128,200 2,451,102
Pacific Metals Co., Ltd. (a) 248,000 3,452,289
Sanyo Special Steel Co., Ltd.
(a) 394,000 2,768,506
Showa Electric Wire & Cable
Co., Ltd. (a) 261,000 364,403
Sumitomo Pipe & Tube Co.,
Ltd. 98,000 711,117
The Furukawa Electric Co.,
Ltd. 1,000 6,078
Tokyo Steel Manufacturing
Co., Ltd. (a) 195,400 2,874,399
Tokyo Tekko Co., Ltd. 174,000 1,364,237
Toyo Kohan Co., Ltd. 295,000 1,184,554
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Yamato Kogyo Co., Ltd. 139,900 4,382,500
Yodogawa Steel Works Ltd. (a) 460,000 2,829,098
-----------------
51,316,548
BEER, LIQUOR, & TOBACCO 0.2%
Asahi Breweries Ltd. 232,400 3,722,313
Mercian Corp. 84,000 225,740
Oenon Holdings, Inc. (a) 112,000 298,089
-----------------
4,246,142
CHEMICALS & RUBBER 0.9%
Adeka Corp. (a) 139,700 1,609,791
Arakawa Chemical Industries
Ltd. 18,200 226,343
Atomix Co., Ltd. 3,000 9,445
Daicel Chemical Industries
Ltd. (a) 94,000 639,508
Dainippon Ink & Chemicals,
Inc. 617,000 2,444,073
Kureha Chemical Industry Co.,
Ltd. 409,000 2,053,695
Nippon Shokubai Co., Ltd. (a) 5,000 53,828
Sakai Chemical Industry Co.,
Ltd. 183,000 1,317,272
SOFT99 Corp. 21,000 181,071
Sumitomo Rubber Industries
Ltd. 281,700 3,074,764
Teijin Ltd. (a) 454,000 2,551,678
Toagosei Co., Ltd. 137,000 568,305
Tokyo Ohka Kogyo Co., Ltd.
(a) 108,300 2,705,569
Tosoh Corp. 2,000 10,302
Toyo Ink Manufacturing Co.,
Ltd. 198,000 738,685
-----------------
18,184,329
COMMERCIAL AIRCRAFT & COMPONENTS 0.1%
Jalux., Inc. 2,600 48,973
Sumitomo Precision Products
Co., Ltd. 197,000 1,109,264
-----------------
1,158,237
COMMUNICATIONS UTILITIES 0.1%
eAccess Ltd. (a) 314 208,550
GMO Internet, Inc. 42,800 347,040
JSAT Corp. (c) 483 1,127,164
-----------------
1,682,754
CONSTRUCTION & HOMEBUILDING 0.3%
C-Cube Corp. 58,700 223,901
Daiichi Kensetu Corp. 25,000 186,589
Hazama Corp. 1,100 1,480
Koatsu Kogyo Co., Ltd. 16,000 51,949
Kodensha Co., Ltd. 8,000 24,812
Maeda Corp. (a) 5,000 18,188
Nippo Corp. (a) 4,000 31,019
Nippon Dentsu Co., Ltd. 12,000 42,212
Nippon Road Co., Ltd. (a) 331,000 640,759
Nishimatsu Construction Co.,
Ltd. (a) 93,000 300,281
Ohmoto Gumi Co., Ltd. 13,000 82,771
Oki Wintech Co., Ltd. 34,000 148,379
PanaHome Corp. (a) 333,000 2,207,744
</Table>
See financial notes.
Laudus Funds Annual Report 85
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Sanyo Engineering &
Construction, Inc. 4,000 19,635
Seibu Electric Industry Co.,
Ltd. 83,000 436,022
Taisei Oncho Co., Ltd. 45,000 174,410
Taisei Rotec Corp. (a) 191,000 360,929
Techno Ryowa Ltd. 400 3,039
Tsuchiya Home Co., Ltd. 2,700 6,676
Wakachiku Construction Co.,
Ltd. (a) 9,000 9,432
Yondenko Corp. 63,000 341,957
Yurtec Corp. 43,000 227,323
Zenitaka Corp. 32,000 78,731
-----------------
5,618,238
CONSTRUCTION MATERIALS 0.3%
Maeda Road Construction Co.,
Ltd. (a) 152,000 1,198,099
Mitani Sekisan Co., Ltd. 1,300 8,692
Nihon Yamamura Glaaa Co.,
Ltd. 444,000 1,331,752
Sankyo Rikagaku Co., Ltd. 4,000 43,064
Sumitomo Osaka Cement Co.,
Ltd. 34,000 101,816
Taiheiyo Cement Corp. (a) 594,000 2,615,284
-----------------
5,298,707
CONSUMER DURABLES 0.0%
Tohoku Pioneer Corp. 10,200 146,768
Zojirushi Corp. 2,000 19,168
-----------------
165,936
DRUGS & PHARMACEUTICALS 0.5%
Cawachi Ltd. 69,700 1,885,195
Kaken Pharmaceutical Co.,
Ltd. (a) 324,000 2,636,018
Kyorin Co., Ltd. (a) 37,000 469,808
Mochida Pharmaceutical Co.,
Ltd. 7,000 67,309
Nippon Shinyaku Co., Ltd. 174,000 1,466,053
Nissui Pharmaceutical Co.,
Ltd. 5,000 40,040
Seikagaku Corp. 45,900 490,780
Sumitomo Seika Chemicals Co.,
Ltd. 215,000 1,220,323
Torii Pharmaceutical Co.,
Ltd. 91,600 1,545,174
-----------------
9,820,700
ELECTRIC UTILITIES 0.1%
The Okinawa Electric Power
Co., Inc. 25,190 1,572,027
FINANCIAL INVESTMENTS 0.2%
Gecoss Corp. (a) 64,900 384,227
Hitachi Capital Corp. (a) 116,100 2,310,487
Sankyo Frontier Co., Ltd. 40,000 141,053
Sanyo Electric Credit Co.,
Ltd. (a) 30,000 819,452
-----------------
3,655,219
FOREST PRODUCTS & PAPER 0.0%
Daio Paper Corp. (a) 5,000 39,953
Nihon Decoluxe Co., Ltd. 2,000 11,880
-----------------
51,833
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FURNITURE & HOUSEHOLD ITEMS 0.3%
Citizen Watch Co., Ltd. 35,100 328,768
Hodogaya Chemical Co., Ltd. 191,000 655,931
Paramount Bed Co., Ltd. (a) 13,300 261,604
Roland Corp. 62,700 1,443,673
Sumitomo Bakelite Co., Ltd.
(a) 324,000 2,336,016
Tachikawa Corp. 60,600 380,120
Toso Co., Ltd. 29,000 88,969
-----------------
5,495,081
GAS & OTHER PUBLIC UTILITIES 0.0%
Keiyo Gas Co., Ltd. 49,000 253,975
Otaki Gas Co., Ltd. 19,000 100,691
-----------------
354,666
GOVERNMENT AIRCRAFT & DEFENSE 0.2%
Mitsui Engineering &
Shipbuilding Co., Ltd. (a) 1,037,000 4,377,933
INFORMATION & SERVICES 0.4%
Autobacs Seven Co., Ltd. 26,700 954,205
BML, Inc. (a) 25,000 508,597
Chodai Co., Ltd. 20,500 86,537
CTI Engineering Co., Ltd. 53,500 398,209
Eight Consultants Co., Ltd. 8 24,494
Eikoh, Inc. 33,400 139,796
Ichishin Co., Ltd. 24,500 100,024
Itohchu Enex Co., Ltd. 3,300 25,029
Johnan Academic Preparatory
Institute, Inc. 27,000 71,098
Keiiyu Co., Ltd. 40,600 280,713
NEC Networks & System
Integration Corp. 184,400 2,330,008
Nippon Koei Co., Ltd. (a) 280,000 849,086
Original Engineering
Consultants Co., Ltd. 14,000 48,814
Secom Joshinetsu Co., Ltd. 12,000 275,823
TKC Corp. 100,000 1,745,238
Wesco, Inc. 56,700 197,705
-----------------
8,035,376
INSTRUMENTS 0.2%
Fukuda Denshi Co., Ltd. 100 3,522
Furuno Electric Co., Ltd. 16,200 145,609
Hitachi Medical Corp. 102,000 1,039,842
Nipro Corp. (a) 105,000 2,047,094
Shimadzu Corp. 13,000 112,479
-----------------
3,348,546
INSURANCE 0.1%
The Fuji Fire & Marine
Insurance Co., Ltd. (a) 484,000 1,989,139
IT HARDWARE 1.0%
Alps Electric Co., Ltd. (a) 183,400 2,141,628
Brother Industries Ltd. 250,000 3,375,562
Dainippon Screen Mfg. Co.,
Ltd. (a) 360,000 2,713,936
Futaba Corp. (a) 81,700 1,944,344
Hitachi Kokusai Electric,
Inc. 14,000 161,808
Nippon Antenna Co., Ltd. 17,900 144,099
Pioneer Corp. (a) 47,200 615,218
Shindengen Electric
Manufacturing Co., Ltd. 270,000 1,203,624
</Table>
See financial notes.
86 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Shinkawa Ltd. 71,100 1,638,963
Tamura Corp. 288,000 1,300,125
Teikoku Tsushin Kogyo Co.,
Ltd. 4,000 19,356
Toshiba Tec Corp. 626,000 3,739,047
-----------------
18,997,710
LAND & WATER TRANSPORTATION 0.6%
Fukuyama Transporting Co.,
Ltd. (a) 116,000 468,873
Isewan Terminal Service Co.,
Ltd. 75,000 470,409
K.R.S. Corp. 7,000 92,801
Kawanishi Warehouse Co., Ltd. 4,000 40,691
Keisei Electric Railway Co.,
Ltd. (a) 457,000 2,945,445
Meiko Trans Co., Ltd. 26,000 324,786
Nankai Electric Railway Co.,
Ltd. 122,000 410,637
Nippon Konpo Unyu Soko Co.,
Ltd. 227,000 3,171,060
Seino Transportation Co.,
Ltd. 272,000 2,563,119
Tokyo Kisen Co., Ltd. 10,000 75,377
West Japan Railway Co. 383 1,765,375
-----------------
12,328,573
MAINFRAME & MINICOMPUTERS 0.1%
NEC Corp. (a) 255,000 1,362,949
METAL PRODUCTS & MACHINERY 1.4%
ABILIT Corp. (a) 2,300 13,297
Aida Engineering Ltd. 17,000 119,033
Asahi Diamond Industrial Co.,
Ltd. (a) 191,000 1,392,435
Bosch Corp. 547,000 2,473,114
Corona Corp. (a) 49,100 839,844
Ebara Corp. (a) 48,000 226,360
Fuji Electric Holdings Co.,
Ltd. 523,000 2,418,081
Fuji Machine Manufacturing
Co., Ltd. (a) 153,800 2,490,566
Fujitec Co., Ltd. 192,000 1,313,215
Glory Ltd. 38,500 748,296
Hakuto Co., Ltd. 300 4,626
Heiwa Corp. (a) 86,500 1,067,737
Hokkan Holdings, Ltd. 11,000 35,256
Ishikawajima Transportation
Machinery Co., Ltd. 18,000 84,089
Kioritz Corp. 247,000 750,360
Komori Corp. 165,000 3,830,710
Nakano Refrigerators Co.,
Ltd. 2,000 21,512
Nippon Thompson Co., Ltd. 257,000 2,374,805
Nireco Corp. 700 6,470
Nissei Plastic Industrial
Co., Ltd. 52,600 341,184
Oiles Corp. 18,480 404,630
Piolax, Inc. 8,800 173,805
Sanso Electric Co., Ltd. 30,000 101,815
Sekisui Jushi Corp. 138,000 1,085,107
ShinMaywa Industries Ltd. 378,000 1,950,945
Sinko Kogyo Co., Ltd. 88,000 350,808
Sintokogio Ltd. 125,500 1,798,446
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Tsurumi Manufacturing Co.,
Ltd. 5,000 49,895
Wakita & Co., Ltd. 50,000 376,386
-----------------
26,842,827
MISCELLANEOUS FINANCE 0.5%
Aizawa Securities Co., Ltd. 14,400 121,647
Matsui Securities Co., Ltd.
(a) 6,000 52,396
Mito Securities Co., Ltd. 167,000 851,270
Mitsubishi UFJ Securities
Co., Ltd. (a) 48,000 545,326
Okasan Holdings, Inc. (a) 261,000 2,028,623
Osaka Securities Finance Co.,
Ltd. 130,300 569,987
RECRM RESEARCH Co., Ltd. 463 774,529
Shinsei Bank Ltd. 671,000 3,208,534
Takagi Securities Co., Ltd. 56,000 248,767
Toyo Securities Co., Ltd. 198,000 908,768
-----------------
9,309,847
OIL DISTRIBUTION 0.0%
AOC Holdings, Inc. 31,800 516,498
Cosmo Oil Co., Ltd. 29,000 121,063
-----------------
637,561
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.5%
Eizo Nanao Corp. (a) 52,300 1,725,076
Japan Digital Laboratory Co.,
Ltd. 96,800 1,540,684
Konica Minolta Holdings, Inc. 326,500 4,277,683
Noritsu Koki Co., Ltd. (a) 62,100 1,116,127
Riso Kagaku Corp. (a) 43,600 882,685
Tamron Co., Ltd. 400 8,456
-----------------
9,550,711
PUBLISHING, BROADCASTING & CINEMA 0.2%
Chubu-Nippon Broadcasting
Co., Ltd. 300 3,781
Hakuhodo Dy Holdings, Inc.
(a) 29,480 2,058,181
Kadokawa Group Holdings, Inc.
(a) 74,000 2,414,723
RKB Mainichi Broadcasting
Corp. 12,000 106,811
-----------------
4,583,496
REAL ESTATE DEVELOPMENT 0.6%
Airport Facilities Co., Ltd.
(a) 180,800 1,140,591
Aoki Marine Co., Ltd. 5,000 17,826
Cosmos Initia Co., Ltd. 59,000 427,693
Cowboy Co., Ltd. 58,000 126,854
Hankyu Hanshin Holdings, Inc.
(a) 7,000 42,296
Hosoda Corp. 55,000 263,989
Iida Home Max (a) 40,700 716,544
Japan Airport Terminal Co.,
Ltd. 231,900 3,372,863
Keihanshin Real Estate Co.,
Ltd. 45,000 324,415
Meiwa Estate Co., Ltd. (a) 80,900 1,250,092
Nisshin Fudosan Co., Ltd. 68,700 894,352
SUNCITY Co., Ltd. (a) 350 192,447
Takara Leben Co., Ltd. 60,200 850,214
The Sankei Building Co., Ltd. 1,600 15,322
</Table>
See financial notes.
Laudus Funds Annual Report 87
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Towa Real Estate Development
Co., Ltd. (a)* 371,500 2,002,218
Yuraku Real Estate Co., Ltd. 93,000 542,414
-----------------
12,180,130
RESTAURANTS, HOTELS & THEATERS 0.5%
BMB Corp. 40,100 163,376
Daisyo Corp. 71,900 932,750
Fields Corp. 848 1,363,494
Friendly Corp. 5,000 21,848
Gourmet Kineya Co., Ltd. 45,000 366,209
H.I.S. Co., Ltd. 95,700 2,746,104
Matsuya Foods Co., Ltd. 4,300 58,834
Royal Holdings Co., Ltd. (a) 143,400 1,807,107
Shidax Corp. 1,144 1,065,471
Tokyo Dome Corp. (a) 42,000 227,418
-----------------
8,752,611
RETAIL 0.9%
Aichi Toyota Motor Co., Ltd. 20,000 389,215
AOKI Holdings, Inc. 85,600 1,629,467
Aoyama Trading Co., Ltd. 103,600 3,280,585
Blue Grass Co., Ltd. 12,600 148,481
Chiyoda Co., Ltd. (a) 17,500 428,161
Daiichikosho Co., Ltd. 200,000 2,256,583
Daiwa Co., Ltd. 96,000 228,401
Haruyama Trading Co., Ltd.
(a) 21,900 209,953
Heiwado Co., Ltd. 142,600 2,225,332
Izumiya Co., Ltd. 313,000 2,411,935
Jeans Mate Corp. 24,400 240,425
Kasumi Co., Ltd. 92,000 507,248
Maxvalu Nishinihon Co., Ltd. 8,900 116,703
Ministop Co., Ltd. 10,200 176,213
Okuwa Co., Ltd. 121,000 1,719,983
Poplar Co., Ltd. 2,300 18,684
Uny Co., Ltd. (a) 156,000 2,136,046
-----------------
18,123,415
SOAPS & COSMETICS 0.0%
ADERANS Co., Ltd. 85 2,061
SOFTWARE 0.1%
Daikoku Denki Co., Ltd. 7,600 137,942
Fujitsu Business Systems Ltd. 76,900 1,193,975
Japan Process Development
Co., Ltd. 9,600 83,399
TIS, Inc. (a) 33,900 803,028
-----------------
2,218,344
TEXTILES & APPAREL 0.5%
Fuji Corp. 11,000 110,290
Fujix Ltd. 9,000 51,064
Ichikawa Co., Ltd. 79,000 352,092
Japan Wool Textile Co., Ltd. 235,000 2,053,772
Jichodo Co., Ltd. 6,000 60,676
King Co., Ltd. 45,000 162,141
Kurabo Industries Ltd. (a) 790,000 2,187,865
Morishita Co., Ltd. 7,000 73,956
Nisshinbo Industries, Inc.
(a) 14,000 174,777
Onward Kashiyama Co., Ltd. 85,000 1,179,019
Sazaby, Inc. 29,500 801,465
Tokyo Style Co., Ltd. 250,000 2,732,698
-----------------
9,939,815
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
TRADING COMPANY 0.2%
Sojitz Corp. (a)* 1,086,700 4,515,700
WHOLESALE 0.8%
Daiwabo Information System
Co., Ltd. 2,500 34,296
Denkyosha Co., Ltd. 17,000 144,117
Fujitsu Devices, Inc. 1,000 13,625
Inabata & Co., Ltd. 18,900 151,580
Japan Pulp & Paper Co., Ltd.
(a) 506,000 1,972,295
Kamei Corp. 93,000 727,337
Kanaden Corp. 91,000 590,677
Kato Sangyo Co., Ltd. 52,900 696,788
Kojima Co., Ltd. (a) 80,400 684,810
Macnica, Inc. 37,700 1,112,587
Mitani Corp. 10,200 126,478
Mitsuuroko Co., Ltd. 65,000 458,732
Nagahori Corp. 57,000 225,768
Nagase & Co., Ltd. 97,000 1,218,904
Onoken Co., Ltd. 57,300 821,038
Ryoden Trading Co., Ltd. 159,000 1,319,868
Ryosan Co., Ltd. (a) 107,400 2,756,065
Sanshin Electronics Co., Ltd. 6,200 77,819
Senshu Electric Co., Ltd. 200 5,006
Shinko Shoji Co., Ltd. 200 3,913
Sinanen Co., Ltd. 93,000 471,555
TEN ARROWS Co., Ltd. 6,700 43,933
Tokiwa Yakuhin Co., Ltd. 10,000 43,633
Totech Corp. 25,000 220,440
Trusco Nakayama Corp. (a) 13,900 280,939
Tsuzuki Densan Co., Ltd. 22,500 109,976
Uchida Yoko Co., Ltd. 108,000 513,854
Uehara Sei Shoji Co., Ltd. 38,000 190,065
-----------------
15,016,098
-----------------
334,686,625
MALAYSIA 0.0%
- ------------------------------------------------------------------
REAL ESTATE DEVELOPMENT 0.0%
Rekapacific Berhad (b)(c)* 24,000 --
NETHERLANDS 3.3%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.5%
CSM N.V. 182,800 6,539,067
Koninklijke Wessanen N.V. (a) 220,026 3,324,987
-----------------
9,864,054
BANKS & CREDIT INSTITUTIONS 0.1%
Kas Bank N.V. 54,000 1,734,773
BASIC MINERALS & METALS 0.0%
Draka Holding N.V. (a)* 3,500 127,673
CHEMICALS & RUBBER 0.8%
Koninklijke DSM N.V. (a) 333,748 14,977,383
FOREST PRODUCTS & PAPER 0.0%
Crown Van Gelder N.V. 9,758 243,898
FURNITURE & HOUSEHOLD ITEMS 0.4%
Hunter Douglas N.V. 86,303 7,614,645
INFORMATION & SERVICES 0.5%
Vedior N.V. 462,902 10,317,157
</Table>
See financial notes.
88 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
IT HARDWARE 0.2%
ASM International N.V. * 155,564 3,466,268
METAL PRODUCTS & MACHINERY 0.0%
BE Semiconductor Industries
N.V. (a)* 70,783 467,342
Koninklijke Nedschroef
Holding N.V. 5,084 396,282
-----------------
863,624
MISCELLANEOUS FINANCE 0.0%
Van der Moolen Holding N.V.
(a) 86,141 461,666
PUBLISHING, BROADCASTING & CINEMA 0.0%
DOCdata N.V. 26,000 228,523
REAL ESTATE DEVELOPMENT 0.2%
Nieuwe Steen Investments N.V. 117,818 3,473,090
RETAIL 0.0%
Macintosh Retail Group N.V. 1,291 52,068
Stern Groep N.V. 6,200 332,173
-----------------
384,241
SOFTWARE 0.2%
Getronics N.V. (a) 354,000 3,250,552
WHOLESALE 0.4%
Buhrmann N.V. (a) 301,000 4,042,789
Univar N.V. 55,609 3,107,345
-----------------
7,150,134
-----------------
64,157,681
NEW ZEALAND 0.2%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.0%
AFFCO Holdings Ltd. 887,761 241,483
Sanford Ltd. 17,957 62,059
-----------------
303,542
AIRLINES 0.1%
Air New Zealand Ltd. 494,885 825,975
LAND & WATER TRANSPORTATION 0.1%
Mainfreight Ltd. 201,682 1,052,171
Tourism Holdings Ltd. 217,789 360,428
-----------------
1,412,599
RESTAURANTS, HOTELS & THEATERS 0.0%
Millennium & Capthorne Hotels
New Zealand Ltd. 1,147,522 635,054
RETAIL 0.0%
Hallenstein Glasson Holdings
Ltd. 52,084 186,213
-----------------
3,363,383
NORWAY 0.5%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.0%
Sparebanken Vest 7,022 226,880
GOVERNMENT AIRCRAFT & DEFENSE 0.3%
Aker Yards A/S (a) 262,000 4,525,936
Kongsberg Gruppen A/S 55,613 1,694,923
-----------------
6,220,859
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
LAND & WATER TRANSPORTATION 0.2%
Fosen Trafikklag A.S.A. 187 20,459
Stolt-Nielsen S.A. (a) 94,184 2,766,659
-----------------
2,787,118
MISCELLANEOUS FINANCE 0.0%
Skiens Aktiemolle A.S.A. 8,622 177,311
-----------------
9,412,168
PORTUGAL 0.4%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.4%
Banco Espirito Santo, S.A.
(BES) Reg'd 403,298 7,708,075
FOREST PRODUCTS & PAPER 0.0%
Corticeira Amorim S.A. 7,338 20,532
REAL ESTATE DEVELOPMENT 0.0%
Teixeira Duarte -- Engenharia
Construcoes S.A. 45,792 165,408
RESTAURANTS, HOTELS & THEATERS 0.0%
Ibersol SGPS S.A. 35,747 496,627
-----------------
8,390,642
SINGAPORE 1.0%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Asia Food & Properties Ltd. 2,182,000 998,263
Cerebos Pacific Ltd. 32,000 69,917
Golden Agri-Resources Ltd. 702,180 813,999
-----------------
1,882,179
AUTOS 0.1%
Jardine Cycle & Carriage Ltd. 286,000 2,234,664
FINANCIAL INVESTMENTS 0.1%
Chuan Hup Holdings Ltd. 129,000 28,854
Kim Eng Holdings Ltd. 1,121,513 1,179,884
Metro Holdings Ltd. 1,734,000 982,304
-----------------
2,191,042
FURNITURE & HOUSEHOLD ITEMS 0.0%
HTL International Holdings
Ltd. 667,000 398,895
IT HARDWARE 0.0%
Elec & Eltek International
Co., Ltd. 37,000 95,982
STATS ChipPAC Ltd. * 361,000 434,588
WBL Corp., Ltd. 19,160 58,208
-----------------
588,778
LAND & WATER TRANSPORTATION 0.1%
K1 Ventures Ltd. * 5,665,000 1,230,027
Neptune Orient Lines Ltd. 24,000 51,199
SBS Transit Ltd. 128,500 243,310
Singapore Shipping Corp.,
Ltd. 613,000 153,474
-----------------
1,678,010
METAL PRODUCTS & MACHINERY 0.0%
Amtek Engineering Ltd. 148,120 66,937
Kingboard Copper Foil
Holdings Ltd. 293,000 83,721
-----------------
150,658
</Table>
See financial notes.
Laudus Funds Annual Report 89
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
MISCELLANEOUS FINANCE 0.1%
G.K. Goh Holdings Ltd. 496,083 343,088
UOB-Kay Hian Holdings Ltd. 1,457,850 1,477,589
-----------------
1,820,677
OIL DISTRIBUTION 0.0%
Singapore Petroleum Co., Ltd. 141,000 448,970
REAL ESTATE DEVELOPMENT 0.4%
Bonvests Holdings Ltd. 7,000 9,166
China Merchants Holdings
Pacific Ltd. 10,000 5,327
Guocoland Ltd. 422,000 1,168,714
Haw Par Corp., Ltd. 210,000 993,356
Ho Bee Investment Ltd. 1,003,000 1,492,620
MCL Land Ltd. 23,000 40,166
UOL Group Ltd. 75,000 251,924
Wheelock Properties (S) Ltd. 253,000 538,476
Wing Tai Holdings Ltd. 1,028,000 2,144,970
-----------------
6,644,719
RESTAURANTS, HOTELS & THEATERS 0.1%
Hotel Grand Central Ltd. 133,000 90,196
Hotel Plaza Ltd. 402,000 611,118
Low Keng Huat (Singapore)
Ltd. 335,000 475,780
Stamford Land Corp., Ltd. 660,000 178,126
-----------------
1,355,220
-----------------
19,393,812
SOUTH KOREA 3.2%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
Dongwon F&B Co., Ltd. 8,173 536,874
Lotte Confectionery Co., Ltd. 2,111 2,698,833
Namyang Dairy Products Co.,
Ltd. 655 575,899
Nong Shim Holdings Co., Ltd. 790 65,419
Ottogi Corp. 30 2,807
Samyang Corp. 1,178 72,642
Samyang Genex Co., Ltd. 6,570 652,949
TS Corp. 7,400 277,928
-----------------
4,883,351
AIRLINES 0.0%
Korea Airport Service Co.,
Ltd. 12,910 676,272
BANKS & CREDIT INSTITUTIONS 0.3%
Daegu Bank 143,280 2,595,218
Pusan Bank 290,160 4,303,462
-----------------
6,898,680
BASIC MINERALS & METALS 0.2%
KISWIRE Ltd. 27,650 876,209
Korea Iron & Steel Co., Ltd. 17,020 697,588
Korea Zinc Co., Ltd. 27,950 2,967,374
-----------------
4,541,171
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CHEMICALS & RUBBER 0.2%
Cheil Industries, Inc. 59,880 2,398,112
Honam Petrochemical Corp. 4,780 413,273
Korea Kumho Petrochemical
Co., Ltd. (KKPC) 23,260 809,659
Korean Petrochemical
Industrial Co., Ltd. 3,550 163,765
-----------------
3,784,809
COMMUNICATIONS UTILITIES 0.3%
LG Dacom Corp. 31,980 753,984
LG Telecom Ltd. * 180,580 2,046,341
LS Cable Ltd. 62,330 2,717,652
-----------------
5,517,977
CONSTRUCTION & HOMEBUILDING 0.2%
Kolon Engineering &
Construction Co., Ltd. 8,510 139,564
Kyeryong Construction
Industrial Co., Ltd. 17,170 695,181
Poonglim Industrial Co., Ltd. 52,010 399,053
Sam Whan Corp. 30,140 754,911
Sambu Construction Co., Ltd. 28,810 1,068,069
Sungjee Construction Co.,
Ltd. 19,410 411,034
Sungwon Corp. * 51,270 272,096
-----------------
3,739,908
CONSTRUCTION MATERIALS 0.1%
Asia Cement Co., Ltd. 19,410 1,031,569
Hyundai Cement Co., Ltd. 10,980 411,983
-----------------
1,443,552
DRUGS & PHARMACEUTICALS 0.1%
Choongwae Pharma Corp. 5,150 223,760
Daewoong Co., Ltd. 13,880 354,292
Handok Pharmaceuticals Co.,
Ltd. 3,970 67,671
Il Dong Pharmaceutical Co.,
Ltd. 31,993 1,322,840
Ilsung Pharmaceuticals Co.,
Ltd. 2,155 207,263
-----------------
2,175,826
ELECTRIC UTILITIES 0.0%
YESCO Co., Ltd. 3,580 111,495
FINANCIAL INVESTMENTS 0.0%
Green Cross Holdings Corp. 5,182 377,303
GAS & OTHER PUBLIC UTILITIES 0.1%
E1 Corp. 11,680 693,118
KyungDong City Gas Co., Ltd. 410 15,184
Pusan City Gas Co., Ltd. 3,000 69,670
Samchully Co., Ltd. 7,900 1,152,166
Seoul City Gas Co., Ltd. 8,380 615,831
-----------------
2,545,969
GOVERNMENT AIRCRAFT & DEFENSE 0.2%
Hyundai Mipo Dockyard Co.,
Ltd. 19,630 3,605,462
INFORMATION & SERVICES 0.1%
KCC Engineering &
Construction Co., Ltd. 22,562 981,661
</Table>
See financial notes.
90 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSTRUMENTS 0.1%
INTOPS Co., Ltd. 33,570 985,431
INSURANCE 0.2%
First Fire & Marine Insurance
Co., Ltd. * 107,530 546,771
Korean Reinsurance Co. 199,501 2,612,550
-----------------
3,159,321
IT HARDWARE 0.0%
Sam Young Electronics Co.,
Ltd. 13,930 118,930
LAND & WATER TRANSPORTATION 0.0%
Korea Line Corp. 7,860 501,395
Sebang Co., Ltd. 2,220 23,509
-----------------
524,904
METAL PRODUCTS & MACHINERY 0.3%
Doosan Corp. * 48,940 3,992,512
SFA Engineering Corp. 29,719 1,105,170
-----------------
5,097,682
MISCELLANEOUS FINANCE 0.1%
Shinyoung Securities Co.,
Ltd. 21,540 1,085,242
OIL DISTRIBUTION 0.0%
Daesung Industrial Co., Ltd. 4,200 396,429
PUBLISHING, BROADCASTING & CINEMA 0.0%
Daekyo Co., Ltd. 60 5,140
REAL ESTATE DEVELOPMENT 0.1%
Halla Engineering &
Construction Corp. 52,450 1,221,273
RESTAURANTS, HOTELS & THEATERS 0.0%
Paradise Co., Ltd. 179,342 690,960
RETAIL 0.0%
GS Home Shopping, Inc. 4,000 290,152
SOAPS & COSMETICS 0.1%
Pacific Corp. 9,180 1,347,881
SOFTWARE 0.1%
Daou Technology Inc. 122,640 1,038,275
TEXTILES & APPAREL 0.0%
Ilshin Spinning Co., Ltd. 1,547 85,177
WHOLESALE 0.2%
Dong Ah Tire & Rubber Co.,
Ltd. 6,440 37,354
Hanwha Corp. 88,360 3,584,546
Youngone Corp. 31,770 167,407
-----------------
3,789,307
-----------------
61,119,540
SPAIN 2.2%
- ------------------------------------------------------------------
AIRLINES 0.5%
Iberia Lineas Aereas de
Espana S.A. (a) 1,914,000 10,236,672
CONSTRUCTION MATERIALS 0.5%
Cementos Portland Valderrivas
S.A. (a) 58,285 8,811,793
ELECTRIC UTILITIES 0.1%
Union Fenosa SA 13,159 711,864
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FOREST PRODUCTS & PAPER 0.0%
Iberpapel Gestion S.A. 10,870 298,981
GAS & OTHER PUBLIC UTILITIES 0.1%
Enagas S.A. (a) 83,803 2,163,516
INSTRUMENTS 0.0%
Indo Internacional S.A. 24,259 322,768
METAL PRODUCTS & MACHINERY 0.2%
Construcciones y Auxiliar de
Ferrocarriles S.A. 10,053 3,049,277
PUBLISHING, BROADCASTING & CINEMA 0.1%
Gestevision Telecinco S.A.
(a) 70,056 2,030,818
RESTAURANTS, HOTELS & THEATERS 0.7%
NH Hoteles S.A. (a)* 279,000 6,425,335
Sol Melia S.A. 321,503 7,739,380
-----------------
14,164,715
TEXTILES & APPAREL 0.0%
Tavex Algodonera S.A. (a) 103,292 473,850
WHOLESALE 0.0%
Unipapel S.A. 11,036 361,752
-----------------
42,626,006
SWEDEN 2.7%
- ------------------------------------------------------------------
AIRLINES 0.4%
SAS AB (a)* 360,000 6,628,431
AUTOS 0.2%
Haldex AB 7,858 189,283
Trelleborg AB 133,524 3,477,812
-----------------
3,667,095
BASIC MINERALS & METALS 0.5%
Boliden AB (a)* 426,062 9,410,566
Profilgruppen AB 3,615 42,487
-----------------
9,453,053
CELLULAR & WIRELESS 0.0%
Partnertech AB 6,597 107,981
CHEMICALS & RUBBER 0.0%
Geveko AB 10,708 463,848
COMMUNICATIONS UTILITIES 0.5%
Tele2 AB, Class B (a) 510,000 8,376,322
FINANCIAL INVESTMENTS 0.0%
Havsfrun AB, Shares B 7,429 38,620
Novestra AB 66,151 150,017
-----------------
188,637
FOREST PRODUCTS & PAPER 0.0%
Rorvik Timber AB, Shares B * 4,599 38,105
GOVERNMENT AIRCRAFT & DEFENSE 0.3%
Saab AB, Series B 213,000 5,748,334
LAND & WATER TRANSPORTATION 0.0%
Rederi AB Transatlantic 65,778 490,060
METAL PRODUCTS & MACHINERY 0.0%
AB Traction, Shares B 10,017 110,628
Midway Holdings AB 472 5,521
-----------------
116,149
</Table>
See financial notes.
Laudus Funds Annual Report 91
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
MISCELLANEOUS FINANCE 0.0%
Svolder AB 12,946 148,428
REAL ESTATE DEVELOPMENT 0.8%
Castellum AB 433,187 6,257,106
Fabege AB 226,337 5,683,063
HEBA Fastighets AB 600 17,486
Home Properties AB 3,078 43,464
Hufvudstaden AB, Shares A 10,124 115,988
Kungsleden AB 189,491 3,409,114
Lennart Wallenstam Byggnads
AB 3,434 73,512
-----------------
15,599,733
RESTAURANTS, HOTELS & THEATERS 0.0%
Cherryforetagen AB * 4,292 26,671
SOFTWARE 0.0%
Addnode AB * 34,730 146,250
IBS AB * 4,816 17,337
Observer AB * 14,464 65,764
-----------------
229,351
WHOLESALE 0.0%
OEM International AB 10,977 330,131
-----------------
51,612,329
SWITZERLAND 8.1%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Emmi AG -- Reg'd 15,116 1,930,557
Groupe Minoteries S.A. 844 169,985
-----------------
2,100,542
AUTOS 0.3%
Rieter Holding AG -- Reg'd 10,153 5,070,111
BANKS & CREDIT INSTITUTIONS 0.6%
Banque Cantonale de Geneve 8,832 2,150,080
Banque Cantonale Vaudoise
(BCV) -- Reg'd 10,365 4,925,658
Graubunder Kantonalbank 913 806,398
Verwaltungs-und Privat-Bank
AG 16,145 3,964,166
-----------------
11,846,302
BASIC MINERALS & METALS 0.4%
Georg Fischer AG -- Reg'd. * 10,560 7,640,385
UMS Schweizerische
Metallwerke Holding AG * 18,631 415,167
-----------------
8,055,552
CHEMICALS & RUBBER 0.5%
Clariant AG -- Reg'd * 518,000 8,910,063
COMMUNICATIONS UTILITIES 0.1%
Ascom Holding AG 39,850 695,972
Mobilezone Holding AG 129,000 784,249
-----------------
1,480,221
CONSTRUCTION MATERIALS 0.2%
Forbo Holding AG -- Reg'd * 7,335 3,265,045
sia Abrasives Holding AG --
Reg'd 43 16,583
Vetropack Holding S.A. 546 750,834
-----------------
4,032,462
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
DRUGS & PHARMACEUTICALS 0.6%
Ciba Specialty Chemicals
AG -- Reg'd 133,899 8,840,425
Schweizerhall Holding AG 10,924 1,708,069
Siegfried Holding AG 8,385 1,235,292
-----------------
11,783,786
ELECTRIC UTILITIES 0.4%
Elektrizitaets-Gesellschaft
Laufenburg AG 4,178 4,843,243
Energiedienst Holding AG --
Reg'd * 4,536 2,288,941
Romande Energie Holding S.A. 331 488,594
-----------------
7,620,778
FOREST PRODUCTS & PAPER 0.1%
CPH Chemie & Papier Holding
AG 102 226,639
Harwanne Compagnie de
participations industielles
et financieres S.A. 1,710 429,270
Industrieholding Cham AG 2,117 801,399
-----------------
1,457,308
FURNITURE & HOUSEHOLD ITEMS 0.2%
Daetwyler Holding AG 445 2,653,191
Swatch Group 1,993 528,002
-----------------
3,181,193
INFORMATION & SERVICES 0.2%
Kuoni Reisen Holding AG --
Reg'd * 6,591 3,953,740
INSTRUMENTS 0.1%
Carlo Gavazzi Holding AG * 2,007 453,439
Comet Holding AG 2,000 472,781
Inficon Holding AG 8,287 1,347,527
-----------------
2,273,747
INSURANCE 2.5%
Baloise Holding AG, Reg'd 145,000 15,140,642
Helvetia Holding AG 18,857 8,099,663
Schweiz Natl-Vers-Ges 3,206 2,509,099
Swiss Life Holding -- Reg'd 88,320 22,226,097
Vaudoise Assurances Holding
S.A. -- Reg'd 4,741 857,532
-----------------
48,833,033
IT HARDWARE 0.1%
Huber & Suhner AG 11,243 2,335,223
Schaffner Holding AG * 660 124,666
SEZ Holding AG * 6,476 215,095
-----------------
2,674,984
LAND & WATER TRANSPORTATION 0.0%
Jungfraubahn Holding AG 19,849 771,270
METAL PRODUCTS & MACHINERY 0.5%
Bucher Industries AG -- Reg'd 31,196 4,212,997
Conzzeta Holding AG 1,075 2,084,188
Feintool International
Holding AG (a) 1,932 763,489
Phoenix Mecano AG 560 268,206
</Table>
See financial notes.
92 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Tornos S.A. * 45,000 674,260
WMH Walter Meier AG, Class
A -- Reg'd 4,831 845,961
-----------------
8,849,101
REAL ESTATE DEVELOPMENT 0.7%
Allreal Holding AG -- Reg'd 12,408 1,584,359
Flughafen Zuerich AG -- Reg'd 13,588 5,267,897
Intershop Holdings AG 6,982 1,805,830
LO Holding Lausanne-Ouchy
S.A. 181 177,427
MCH Messe Schweiz Holdings AG 1,293 643,487
Pax-Anlage AG 60 38,469
PSP Swiss Property AG * 37,600 2,292,204
Zueblin Immobilien Holding AG
* 84,889 877,119
-----------------
12,686,792
RETAIL 0.1%
Charles Vogele Holding AG * 20,648 2,265,549
SOFTWARE 0.0%
Crealogix Holding AG * 137 10,665
Kardex AG * 17,835 756,442
-----------------
767,107
WHOLESALE 0.4%
Also Holding -- Reg'd 15,840 877,838
Bobst Group AG 60,400 3,697,260
Eichhof Holding AG 420 692,890
Metraux Services Holding AG 1,633 295,574
Valora Holding AG 11,250 3,213,772
-----------------
8,777,334
-----------------
157,390,975
UNITED KINGDOM 18.7%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.9%
Anglo-Eastern Plantations plc 24,668 151,566
Carr's Milling Industries plc 27,358 292,294
Nichols plc 53,309 322,203
Robert Wiseman Dairies plc 38,319 346,113
Tate & Lyle plc 1,407,761 15,968,571
Uniq plc 35,866 135,747
-----------------
17,216,494
AUTOS 0.6%
GKN plc 1,565,681 11,743,364
BANKS & CREDIT INSTITUTIONS 0.1%
Hitachi Capital UK plc 93,010 416,105
Intermediate Capital Group
plc 123 4,720
Kensington Group plc 69,366 909,881
NETeller plc (a)(c)* 184,264 538,633
-----------------
1,869,339
BASIC MINERALS & METALS 1.5%
Antofagasta plc 2,069,037 21,118,136
Avocet Mining plc * 288,000 713,964
Bodycote International plc 842,812 5,153,290
Castings plc 97,863 519,965
Golden Prospect plc 380,000 461,828
-----------------
27,967,183
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CHEMICALS & RUBBER 0.0%
Elementis plc 372,704 659,216
COMMERCIAL AIRCRAFT & COMPONENTS 0.3%
Meggitt plc 676,101 3,968,197
Rolls-Royce Group plc * 29,895 291,606
Senior plc 641,343 1,019,118
-----------------
5,278,921
COMMUNICATIONS UTILITIES 1.3%
Cable & Wireless 6,651,000 21,883,989
COLT Telecom Group S.A. (a)* 325,917 1,143,821
Eckoh Technologies plc * 960,000 193,636
Kingston Communications
(Hull) plc 1,165,693 1,791,512
Thus Group plc 1,622 5,890
-----------------
25,018,848
CONSTRUCTION MATERIALS 0.2%
Cookson Group plc 288,257 3,527,375
DRUGS & PHARMACEUTICALS 0.0%
Goldshield Group plc 67,220 226,047
ELECTRIC UTILITIES 1.8%
British Energy Group plc * 1,670,000 16,037,227
International Power plc 2,339,058 18,282,492
-----------------
34,319,719
FOREST PRODUCTS & PAPER 0.1%
DS Smith plc 366,234 1,609,410
FURNITURE & HOUSEHOLD ITEMS 0.4%
British Polythene Industries
plc 28,873 285,555
Carclo plc 184,000 396,483
F.W. Thorpe plc 35,881 446,598
Galiform plc * 1,789,736 5,485,407
Volex Group plc * 78,379 223,645
-----------------
6,837,688
GAS & OTHER PUBLIC UTILITIES 0.0%
Shanks Group plc 33,280 175,945
GOVERNMENT AIRCRAFT & DEFENSE 0.2%
Chemring Group plc 228 8,350
E2V Technologies plc 25,620 195,688
Trafficmaster plc * 252,362 339,715
Vt Group plc 398,329 3,854,255
-----------------
4,398,008
INFORMATION & SERVICES 1.0%
AMEC plc 659,095 6,890,142
Anite Group plc 866,101 1,395,786
Christie Group plc 52,243 258,558
Communisis plc 397,462 500,573
Creston plc 114,869 412,234
Glotel plc 132,000 155,995
Group 4 Securicor plc 492,718 1,950,236
Harvey Nash Group plc * 189,717 280,926
Interior Services Group plc 90,000 561,449
Keller Group plc 194,073 3,524,431
Macfarlane Group plc 19,235 11,514
Management Consulting Group
plc 416,977 379,943
Metnor Group plc 44,000 363,659
MICE Group plc 648,992 308,462
</Table>
See financial notes.
Laudus Funds Annual Report 93
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Next Fifteen Communications
plc 156,902 293,835
Nord Anglia Education plc * 127,950 807,377
Opsec Security Group plc * 82,113 150,250
Tenon Group plc 416,000 521,635
Tribal Group plc 133,542 320,764
Waterman Group plc 104,000 375,544
-----------------
19,463,313
INSTRUMENTS 0.0%
Dialight plc 108,000 443,996
Oxford Instruments plc 69,597 339,131
-----------------
783,127
INSURANCE 2.2%
Brit Insurance Holdings plc 854,898 5,424,712
Chaucer Holdings plc 873,000 1,620,962
Friends Provident plc 4,614,802 17,501,047
Old Mutual plc 4,101,000 13,282,902
Resolution plc 437,600 5,339,181
-----------------
43,168,804
IT HARDWARE 0.1%
Filtronic plc (a) 197,424 521,129
TT electronics plc 292,356 1,378,634
Zetex plc 338,707 598,481
-----------------
2,498,244
LAND & WATER TRANSPORTATION 0.0%
Braemar Seascope Group plc 64,440 513,508
Clarkson plc 14,765 281,836
Ocean Wilsons Holdings Ltd. 1,461 23,198
-----------------
818,542
MAINFRAME & MINICOMPUTERS 0.0%
Psion plc 37,934 126,156
METAL PRODUCTS & MACHINERY 0.1%
Alumasc Group plc 90,871 394,594
Delta plc 131,334 354,049
Eleco plc 126,539 240,636
Trifast plc 275,125 436,227
Wagon plc 103,148 273,648
-----------------
1,699,154
MISCELLANEOUS FINANCE 0.6%
Investec plc 960,029 12,445,008
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0%
Laird Group plc 9,678 104,105
PUBLISHING, BROADCASTING & CINEMA 0.5%
Media Square plc 269,519 53,037
Trinity Mirror plc 846,058 8,839,082
-----------------
8,892,119
REAL ESTATE DEVELOPMENT 1.9%
Enterprise Inns plc 1,696,800 22,364,631
Mapeley Ltd. 53,750 4,109,133
Minerva plc * 465,052 3,501,695
Rugby Estates plc 11,400 136,548
Shaftesbury plc 396,550 5,915,093
Warner Estate Holdings plc 29,632 472,732
-----------------
36,499,832
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
REAL ESTATE INVESTMENT TRUSTS 0.5%
British Land Co Plc 99,748 3,008,762
Brixton plc 706,000 7,071,620
-----------------
10,080,382
RESTAURANTS, HOTELS & THEATERS 3.1%
Compass Group plc 1,828,000 12,243,505
Greene King plc 351,631 7,632,291
Luminar plc 1,176 17,472
Marston's plc 532,800 4,629,482
Millennium & Copthorne Hotel
plc 618,628 8,285,883
Punch Taverns plc 144,500 3,548,436
Regent Inns plc * 369,770 792,757
Sportech plc * 1,777,556 550,929
Ultimate Leisure Group plc 90,000 336,502
Whitbread plc 342,568 12,755,693
William Hill plc 757,600 9,491,752
-----------------
60,284,702
RETAIL 0.2%
Alliance Boots plc 51,392 1,038,936
Amstrad plc 136,313 386,894
Jacques Vert plc * 281,723 127,509
Jessops plc 214,138 63,198
John David Group plc 122,000 1,050,940
Smiths News plc 198,961 544,460
Woolworths Group plc 607,322 367,308
-----------------
3,579,245
SOAPS & COSMETICS 0.1%
McBride plc 241,592 1,137,090
SOFTWARE 0.9%
Alphameric plc 356,395 346,523
Computacenter plc 436,666 2,394,652
Dimension Data Holdings plc 3,734,795 3,687,486
Horizon Technology Group plc
* 77,652 118,044
Intec Telecom Systems plc * 1,048,000 867,451
InTechnology plc * 350,000 268,696
Kewill Systems plc * 16,027 24,916
Logica CMG plc 2,044,910 7,170,237
Microgen plc 200,943 201,094
Morse plc 434,485 793,013
Northgate Information
Solutions plc 494,987 809,242
RM plc 39,188 146,713
-----------------
16,828,067
TEXTILES & APPAREL 0.0%
Alexon Group plc 88,568 363,427
Low & Bonar plc 45,358 124,961
Marchpole Holdings plc 7,895 25,891
-----------------
514,279
WHOLESALE 0.1%
Acal plc 82,250 648,960
Dawson Holdings plc 194,763 413,925
Fayrewood plc 71,615 147,442
James Latham plc 72,000 320,208
-----------------
1,530,535
-----------------
361,300,261
</Table>
See financial notes.
94 Laudus Funds Annual Report
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
UNITED STATES 0.1%
- ------------------------------------------------------------------
FOREST PRODUCTS & PAPER 0.1%
Domtar Corp. * 202,200 1,840,729
------------------
TOTAL COMMON STOCK (COST $1,528,627,990) 1,869,932,546
------------------
PREFERRED STOCK 0.1% OF NET ASSETS
AUSTRIA 0.0%
- ------------------------------------------------------------------
MIBA AG 1,600 242,804
GERMANY 0.1%
- ------------------------------------------------------------------
Jungheinrich AG (a) 47,379 1,728,156
Villeroy & Boch AG (a) 17,648 351,729
-----------------
2,079,885
UNITED KINGDOM 0.0%
- ------------------------------------------------------------------
Rolls-Royce Group plc * 54,759,999 110,454
-----------------
TOTAL PREFERRED STOCK (COST $1,621,605) 2,433,143
RIGHTS 0.1% OF NET ASSETS
AUSTRIA 0.0%
- ------------------------------------------------------------------
Conwert Immobilien Invest AG
* 66,243 --
BELGIUM 0.0%
- ------------------------------------------------------------------
Carrieres Unies Porphyre * 11 --
JAPAN 0.0%
- ------------------------------------------------------------------
Dowa Mining * 391,000 198,586
SWEDEN 0.0%
- ------------------------------------------------------------------
Fabege Ab * 226,337 174,425
UNITED KINGDOM 0.1%
- ------------------------------------------------------------------
Meggit plc * 338,050 660,243
-----------------
TOTAL RIGHTS (COST $ -- ) 1,033,254
WARRANTS 0.0% OF NET ASSETS
HONG KONG 0.0%
- ------------------------------------------------------------------
Champion Technology Holdings
Ltd. * 992,339 39,371
-----------------
TOTAL WARRANTS (COST $ -- ) 39,371
<Caption>
SECURITY FACE AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT 1.7% OF NET ASSETS
REPURCHASE AGREEMENT 1.7%
- ------------------------------------------------------------------
Fixed Income Clearing Corp.
dated 03/30/07, due
04/02/07 at 5.00%, with a
maturity value of
$33,121,795 (fully
collateralized by Federal
Home Loan Bank with a value
of $33,770,531.) 33,108,000 33,108,000
-----------------
TOTAL SHORT-TERM INVESTMENT (COST
$33,108,000) 33,108,000
- ------------------------------------------------------------------
END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was
$1,577,902,473 and the unrealized appreciation and depreciation
were $365,059,527 and ($36,415,686), respectively, with a net
unrealized appreciation of $328,643,841.
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COLLATERAL INVESTED FOR SECURITIES ON LOAN 7.6% OF NET ASSETS
State Street Navigator
Security Lending Prime
Portfolio 146,492,602 146,492,602
- ------------------------------------------------------------------
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
</Table>
At 03/31/07, the prices of certain foreign securities held by the fund
aggregating $1,709,168,468 were adjusted from their closing market prices
following the guidelines adopted by the fund's board of trustees.
* Non-income producing security.
(a) All or a portion of this security is on loan.
(b) Bankrupt security/delisted.
(c) Fair-valued by Management.
See financial notes.
Laudus Funds Annual Report 95
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST/PROCEEDS VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
95.7% COMMON STOCK 15,894,523 18,495,591
3.6% SHORT-TERM INVESTMENT 692,469 692,469
- -----------------------------------------------------------------
99.3% TOTAL INVESTMENTS 16,586,992 19,188,060
(94.8)% SHORT SALES (18,328,050) (18,323,387)
95.5% DEPOSITS WITH BROKER
AND CUSTODIAN BANK FOR
SECURITIES SOLD SHORT 18,463,415 18,463,415
0.0% OTHER ASSETS AND
LIABILITIES (4,830)
- -----------------------------------------------------------------
100.0% NET ASSETS 19,323,258
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK (A) 95.7% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 2.7%
- -----------------------------------------------------------------
General Mills, Inc. 3,300 192,126
Kellogg Co. 4,800 246,864
The Pepsi Bottling Group, Inc. 2,850 90,887
--------------
529,877
AIRLINES 0.6%
- -----------------------------------------------------------------
FedEx Corp. 1,000 107,430
BANKS & CREDIT INSTITUTIONS 6.4%
- -----------------------------------------------------------------
Bank of America Corp. 14,500 739,790
Comerica, Inc. 3,400 201,008
Harley-Davidson, Inc. 4,800 282,000
Northern Trust Corp. 200 12,028
--------------
1,234,826
BASIC MINERALS & METALS 2.2%
- -----------------------------------------------------------------
Allegheny Technologies, Inc. 200 21,338
Nucor Corp. 6,060 394,688
--------------
416,026
BIOTECHNOLOGY 2.0%
- -----------------------------------------------------------------
Celgene Corp. * 7,500 393,450
CELLULAR & WIRELESS 1.7%
- -----------------------------------------------------------------
NII Holdings, Inc. * 4,470 331,585
CHEMICALS & RUBBER 1.5%
- -----------------------------------------------------------------
The Sherwin-Williams Co. 4,500 297,180
COMMUNICATIONS UTILITIES 5.5%
- -----------------------------------------------------------------
AT&T Corp. 22,700 895,061
Google, Inc., Class A * 205 93,923
Level 3 Communications, Inc. * 10,900 66,490
--------------
1,055,474
ELECTRIC UTILITIES 6.3%
- -----------------------------------------------------------------
Consolidated Edison, Inc. 4,500 229,770
Edison International 8,250 405,323
PG&E Corp. 12,100 584,067
--------------
1,219,160
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FOREST PRODUCTS & PAPER 1.5%
- -----------------------------------------------------------------
3M Co. 110 8,407
International Paper Co. 7,920 288,288
--------------
296,695
HEALTH CARE & HOSPITAL 1.1%
- -----------------------------------------------------------------
Health Net, Inc. * 200 10,762
Humana, Inc. * 3,400 197,268
--------------
208,030
INFORMATION & SERVICES 2.6%
- -----------------------------------------------------------------
Accenture Ltd., Class A 7,530 290,206
Manpower, Inc. 1,360 100,327
The Dun & Bradstreet Corp. 1,295 118,104
--------------
508,637
INSTRUMENTS 3.5%
- -----------------------------------------------------------------
Honeywell International, Inc. 11,800 543,508
Waters Corp. * 2,300 133,400
--------------
676,908
INSURANCE 11.9%
- -----------------------------------------------------------------
ACE Ltd. 10,200 582,012
Everest Re Group Ltd. 1,800 173,106
Loews Corp. 15,000 681,450
The Allstate Corp. 13,620 818,017
The Chubb Corp. 600 31,002
XL Capital Ltd., Class A 200 13,992
--------------
2,299,579
INTEGRATED OIL COMPANIES 1.6%
- -----------------------------------------------------------------
Exxon Mobil Corp. 3,920 295,764
Hess Corp. 400 22,188
--------------
317,952
IT HARDWARE 7.6%
- -----------------------------------------------------------------
Amphenol Corp., Class A 1,900 122,683
Avaya, Inc. * 11,400 134,634
Cisco Systems, Inc. * 17,800 454,434
Flextronics International Ltd. * 4,700 51,418
Harris Corp. 2,710 138,074
L-3 Communications Holdings, Inc. 2,500 218,675
MEMC Electronic Materials, Inc. * 5,600 339,248
--------------
1,459,166
LAND & WATER TRANSPORTATION 4.2%
- -----------------------------------------------------------------
Union Pacific Corp. 7,900 802,245
MAINFRAME & MINICOMPUTERS 1.1%
- -----------------------------------------------------------------
Apple, Inc. * 2,290 212,764
METAL PRODUCTS & MACHINERY 1.8%
- -----------------------------------------------------------------
Parker Hannifin Corp. 3,740 322,799
Terex Corp. * 400 28,704
--------------
351,503
MISCELLANEOUS FINANCE 4.7%
- -----------------------------------------------------------------
Chicago Mercantile Exchange
Holdings, Inc., Class A 616 327,995
Merrill Lynch & Co., Inc. 7,200 588,024
--------------
916,019
</Table>
See financial notes.
96 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
OIL & COAL RESOURCES 0.9%
- -----------------------------------------------------------------
XTO Energy, Inc. 3,300 180,873
OIL DRILLING & SERVICES 1.1%
- -----------------------------------------------------------------
ENSCO International, Inc. 3,100 168,640
Noble Corp. 620 48,782
--------------
217,422
PUBLISHING, BROADCASTING & CINEMA 1.0%
- -----------------------------------------------------------------
CBS Corp., Class B 6,050 185,070
RESTAURANTS, HOTELS & THEATERS 1.2%
- -----------------------------------------------------------------
McDonald's Corp. 3,960 178,398
Yum! Brands, Inc. 800 46,208
--------------
224,606
RETAIL 6.8%
- -----------------------------------------------------------------
Abercrombie & Fitch Co., Class A 2,900 219,472
American Eagle Outfitters, Inc. 3,600 107,964
AutoZone, Inc. * 1,900 243,466
CarMax, Inc. * 1,000 24,540
CVS/Caremark Corp. 980 33,457
Federated Department Stores, Inc. 3,100 139,655
J.C. Penney Co., Inc. 4,035 331,515
Nordstrom, Inc. 4,140 219,172
--------------
1,319,241
SOAPS & COSMETICS 0.9%
- -----------------------------------------------------------------
The Clorox Co. 2,790 177,695
SOFTWARE 12.1%
- -----------------------------------------------------------------
BMC Software, Inc. * 8,400 258,636
Cadence Design Systems, Inc. * 5,953 125,370
Cognizant Technology Solutions
Corp., Class A * 4,593 405,424
Computer Sciences Corp. * 4,600 239,798
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
International Business Machines
Corp. 8,300 782,358 >
Intuit, Inc. * 7,100 194,256
Oracle Corp. * 18,000 326,340
--------------
2,332,182
WHOLESALE 1.2%
- -----------------------------------------------------------------
W.W. Grainger, Inc. 2,900 223,996
--------------
TOTAL COMMON STOCK (COST $15,894,523) 18,495,591
--------------
<Caption>
FACE AMOUNT VALUE
SECURITY ($) ($)
SHORT-TERM INVESTMENT (A) 3.6% OF NET ASSETS
REPURCHASE AGREEMENT 3.6%
- -----------------------------------------------------------------
Custodian Trust Company, dated
03/30/07, due 04/02/07 at 5.10%
with a maturity value of
$692,763 (fully collateralized
by U.S. Treasury Bond with a
value of $718,285) 692,469 692,469
--------------
TOTAL SHORT-TERM INVESTMENT
(COST $692,469) 692,469
- -----------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 3/31/07 the tax basis cost of the fund's investments was $16,681,100 and the
unrealized appreciation and depreciation was $2,622,567 and ($115,607),
respectively, with a net unrealized appreciation of $2,506,960.
* Non-income producing security.
(a) All long positions are pledged as collateral for securities sold short.
See financial notes.
Laudus Funds Annual Report 97
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SHORT SALES 94.8% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 3.1%
- -----------------------------------------------------------------
PepsiCo, Inc. 4,200 266,952
Wm. Wrigley Jr. Co. 6,375 324,679
--------------
591,631
BANKS & CREDIT INSTITUTIONS 6.8%
- -----------------------------------------------------------------
American Express Co. 5,100 287,640
Commerce Bancorp, Inc. 6,800 226,984
Fifth Third Bancorp 1,440 55,714
Ford Motor Co. 63,600 501,804
Sovereign Bancorp, Inc. 9,800 249,312
--------------
1,321,454
BIOTECHNOLOGY 3.2%
- -----------------------------------------------------------------
Amgen, Inc. * 9,000 502,920
Genentech, Inc. * 1,400 114,968
--------------
617,888
CHEMICALS & RUBBER 2.8%
- -----------------------------------------------------------------
The Dow Chemical Co. 11,720 537,479
COMMUNICATIONS UTILITIES 3.9%
- -----------------------------------------------------------------
Virgin Media, Inc. 190 4,797
Yahoo! Inc. * 24,200 757,218
--------------
762,015
CONSTRUCTION & HOMEBUILDING 0.7%
- -----------------------------------------------------------------
Pulte Homes, Inc. 5,130 135,740
DRUGS & PHARMACEUTICALS 3.3%
- -----------------------------------------------------------------
Allergan, Inc. 2,200 243,804
Eli Lilly and Co. 7,500 402,825
--------------
646,629
ELECTRIC UTILITIES 7.1%
- -----------------------------------------------------------------
CenterPoint Energy, Inc. 5,410 97,055
Dominion Resources, Inc. 3,580 317,797
Duke Energy Corp. 19,000 385,510
The AES Corp. * 1,060 22,811
TXU Corp. 8,600 551,260
--------------
1,374,433
FURNITURE & HOUSEHOLD ITEMS 0.9%
- -----------------------------------------------------------------
Newell Rubbermaid, Inc. 5,700 177,213
HEALTH CARE & HOSPITAL 1.0%
- -----------------------------------------------------------------
UnitedHealth Group, Inc. 3,700 195,989
INFORMATION & SERVICES 1.1%
- -----------------------------------------------------------------
Apollo Group, Inc., Class A * 4,900 215,110
INSTRUMENTS 1.9%
- -----------------------------------------------------------------
Medtronic, Inc. 4,000 196,240
St. Jude Medical, Inc. * 4,300 161,723
--------------
357,963
INSURANCE 2.6%
- -----------------------------------------------------------------
The Progressive Corp. 22,800 497,496
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
IT HARDWARE 13.0%
- -----------------------------------------------------------------
Advanced Micro Devices, Inc. * 490 6,399
Altera Corp. * 12,800 255,872
Analog Devices, Inc. 10,100 348,349
Broadcom Corp., Class A * 4,030 129,242
Intel Corp. 34,400 658,072
KLA-Tencor Corp. 6,600 351,912
Linear Technology Corp. 12,400 391,716
Maxim Integrated Products, Inc. 1,100 32,340
QUALCOMM, Inc. 7,300 311,418
Xilinx, Inc. 1,200 30,876
--------------
2,516,196
LAND & WATER TRANSPORTATION 2.6%
- -----------------------------------------------------------------
United Parcel Service, Inc.,
Class B 7,020 492,102
MAINFRAME & MINICOMPUTERS 1.6%
- -----------------------------------------------------------------
Dell, Inc. * 13,700 317,977
METAL PRODUCTS & MACHINERY 3.5%
- -----------------------------------------------------------------
The Procter & Gamble Co. 10,600 669,496
MISCELLANEOUS FINANCE 2.6%
- -----------------------------------------------------------------
E*TRADE Financial Corp. * 5,180 109,919
Legg Mason, Inc. 4,200 395,682
--------------
505,601
OIL & COAL RESOURCES 3.4%
- -----------------------------------------------------------------
EOG Resources, Inc. 3,000 214,020
Southwestern Energy Co. * 5,400 221,292
Ultra Petroleum Corp. * 4,200 223,146
--------------
658,458
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0%
- -----------------------------------------------------------------
Lexmark International, Inc.,
Class A * 100 5,846
PUBLISHING, BROADCASTING & CINEMA 0.6%
- -----------------------------------------------------------------
The Interpublic Group of Cos.,
Inc. * 9,000 110,790
REAL ESTATE INVESTMENT TRUSTS 7.6%
- -----------------------------------------------------------------
Boston Properties, Inc. 2,600 305,240
Equity Residential 9,500 458,185
General Growth Properties, Inc. 6,700 432,619
Plum Creek Timber Co., Inc. 6,800 268,056
--------------
1,464,100
RESTAURANTS, HOTELS & THEATERS 1.2%
- -----------------------------------------------------------------
Starbucks Corp. * 7,500 235,200
RETAIL 8.7%
- -----------------------------------------------------------------
Amazon.com, Inc. * 11,050 439,680
Bed, Bath & Beyond, Inc. * 1,901 76,363
Costco Wholesale Corp. 3,500 188,440
eBay, Inc. * 21,020 696,813
The Home Depot, Inc. 450 16,533
Walgreen Co. 900 41,301
Whole Foods Market, Inc. 4,860 217,971
--------------
1,677,101
</Table>
See financial notes.
98 Laudus Funds Annual Report
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SOAPS & COSMETICS 0.1%
- -----------------------------------------------------------------
Johnson & Johnson 300 18,078
SOFTWARE 11.5%
- -----------------------------------------------------------------
Adobe Systems, Inc. * 12,400 517,080
Autodesk, Inc. * 6,200 233,120
Citrix Systems, Inc. * 2,940 94,168
Electronic Arts, Inc. * 8,500 428,060
Microsoft Corp. 29,300 816,591
VeriSign, Inc. * 5,270 132,383
--------------
2,221,402
--------------
TOTAL SHORT SALES (PROCEEDS $18,328,050) 18,323,387
- -----------------------------------------------------------------
END OF SHORT SALE POSITIONS.
</Table>
* Non-income producing security.
See financial notes.
Laudus Funds Annual Report 99
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST/PROCEEDS VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
96.2% COMMON STOCK 17,051,955 19,874,593
--% PREFERRED STOCK 800 836
0.1% RIGHTS -- 5,587
5.7% SHORT-TERM INVESTMENT 1,180,359 1,180,359
- -----------------------------------------------------------------
102.0% TOTAL INVESTMENTS 18,233,114 21,061,375
(95.5)% SHORT SALES (18,939,163) (19,721,130)
69.6% DEPOSITS WITH BROKER AND
CUSTODIAN BANK FOR
SECURITIES SOLD SHORT 14,388,573 14,388,573
23.9% OTHER ASSETS AND
LIABILITIES 4,931,248
- -----------------------------------------------------------------
100.0% NET ASSETS 20,660,066
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK (A) 96.2% OF NET ASSETS
AUSTRIA 0.5%
- ------------------------------------------------------------------
COMMUNICATIONS UTILITIES 0.1%
Telekom Austria AG 400 10,051
METAL PRODUCTS & MACHINERY 0.1%
Andritz AG 80 20,066
REAL ESTATE DEVELOPMENT 0.3%
Immofinanz Immobilien Analagen AG * 3,600 57,896
Meinl European Land Ltd. * 400 11,130
--------------
69,026
--------------
99,143
BELGIUM 1.3%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.2%
Fortis 1,200 54,779
BASIC MINERALS & METALS 0.2%
Umicore 200 35,699
INSTRUMENTS 0.3%
Agfa Gevaert N.V. 2,450 55,462
RESTAURANTS, HOTELS & THEATERS 0.3%
S.A. D'Ieteren N.V. 160 65,917
RETAIL 0.3%
Delhaize Group 645 59,519
--------------
271,376
DENMARK 0.9%
- ------------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.3%
Danske Bank A/S 1,100 50,994
BEER, LIQUOR, & TOBACCO 0.2%
Carlsberg A/S, Class B 400 43,456
METAL PRODUCTS & MACHINERY 0.4%
Vestas Wind Systems A/S * 1,500 83,617
--------------
178,067
FINLAND 0.5%
- ------------------------------------------------------------------
BASIC MINERALS & METALS 0.3%
Outokumpu Oyj 1,500 51,631
CHEMICALS & RUBBER 0.2%
Kemira Oyj 1,800 41,196
--------------
92,827
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FRANCE 4.0%
- ------------------------------------------------------------------
AIRLINES 0.3%
Air France-KLM 1,200 54,886
AUTOS 0.4%
PSA Peugeot Citroen 996 70,227
Societe Fonciere Financiere et de
Participations (FFP) 81 22,275
--------------
92,502
CHEMICALS & RUBBER 0.1%
Compagnie Generale des
Etablissements Michelin, Class B 120 13,268
COMMUNICATIONS UTILITIES 0.3%
Publicis Groupe 1,200 57,924
CONSTRUCTION MATERIALS 0.3%
Compagnie de Saint-Gobain 660 64,800
GOVERNMENT AIRCRAFT & DEFENSE 0.3%
Beneteau 134 16,188
Thales S.A. 900 52,477
--------------
68,665
INSURANCE 0.2%
CNP Assurances 400 46,809
LAND & WATER TRANSPORTATION 0.1%
Financiere de l'Odet 26 11,957
METAL PRODUCTS & MACHINERY 0.2%
Valeo S.A. 600 35,294
MISCELLANEOUS FINANCE 0.3%
Natixis 2,400 58,749
PUBLISHING, BROADCASTING & CINEMA 0.3%
Havas S.A. 6,000 34,708
Thomson 2,000 38,530
--------------
73,238
REAL ESTATE DEVELOPMENT 0.2%
Nexity 400 34,370
RESTAURANTS, HOTELS & THEATERS 0.2%
Sodexho Alliance S.A. 690 50,637
SOFTWARE 0.5%
Atos Origin S.A. * 800 53,857
Cap Gemini S.A. 600 45,668
--------------
99,525
TEXTILES & APPAREL 0.3%
Christian Dior S.A. 600 73,159
--------------
835,783
GERMANY 2.0%
- ------------------------------------------------------------------
AUTOS 0.4%
Bayerische Motoren Werke (BMW) AG 900 53,095
Volkswagen AG 136 20,410
--------------
73,505
BASIC MINERALS & METALS 0.3%
ThyssenKrupp AG 1,313 65,176
CHEMICALS & RUBBER 0.2%
Lanxess * 900 46,562
</Table>
See financial notes.
100 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMERCIAL AIRCRAFT & COMPONENTS 0.2%
MTU Aero Engines Holding AG 800 48,081
ELECTRIC UTILITIES 0.2%
MVV Energie AG 1,000 37,938
IT HARDWARE 0.3%
Infineon Technologies AG * 3,600 56,062
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.1%
Heidelberger Druckmaschinen AG 600 27,546
RETAIL 0.2%
KarstadtQuelle AG * 1,100 40,451
WHOLESALE 0.1%
GEA Group AG 600 16,659
--------------
411,980
IRELAND 0.5%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
Kerry Group plc, Class A 1,800 50,313
CONSTRUCTION MATERIALS 0.3%
CRH plc 1,200 51,459
--------------
101,772
ITALY 2.4%
- ------------------------------------------------------------------
AUTOS 0.4%
Fiat S.p.A. * 3,000 76,044
CHEMICALS & RUBBER 0.2%
Pirelli & C. S.p.A. 36,000 39,815
CONSTRUCTION MATERIALS 0.4%
Buzzi Unicem S.p.A. 1,995 60,785
Italcementi S.p.A. 700 21,022
--------------
81,807
CONSUMER DURABLES 0.1%
Indesit Co. S.p.A. 1,000 21,319
ELECTRIC UTILITIES 0.4%
ACEA S.p.A. 2,000 37,517
C.I.R. S.p.A.-Compagnie Industriali
Riunite 12,000 47,857
--------------
85,374
FOREST PRODUCTS & PAPER 0.3%
IFIL-Investments S.p.A. 6,000 58,804
GOVERNMENT AIRCRAFT & DEFENSE 0.2%
Finmeccanica S.p.A. 1,800 54,107
OIL DISTRIBUTION 0.2%
ERG S.p.A. 1,600 44,028
REAL ESTATE DEVELOPMENT 0.2%
Risanamento S.p.A. 4,000 42,019
--------------
503,317
JAPAN 23.9%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Yamazaki Baking Co., Ltd. 3,000 27,279
AUTOS 1.7%
Fuji Heavy Industries Ltd. 19,000 98,403
Kawasaki Heavy Industries Ltd. 23,000 97,021
Mazda Motor Corp. 10,000 55,145
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Toyota Auto Body Co., Ltd. 700 13,149
Yamaha Motor Co., Ltd. 2,900 80,998
--------------
344,716
BANKS & CREDIT INSTITUTIONS 0.3%
Hyakugo Bank Ltd. 7,000 44,871
Shiga Bank Ltd. 2,000 13,851
--------------
58,722
BASIC MINERALS & METALS 2.6%
Fujikura Ltd. 7,000 49,149
Hitachi Cable Ltd. 7,000 39,698
JFE Holdings, Inc. 1,600 94,475
Kobe Steel Ltd. 23,000 92,422
Nippon Steel Corp. 17,000 119,377
Nisshin Steel Co., Ltd. 27,000 116,046
Tokyo Steel Manufacturing Co., Ltd. 2,000 29,421
--------------
540,588
BEER, LIQUOR, & TOBACCO 1.4%
Asahi Breweries Ltd. 4,300 68,872
Japan Tobacco, Inc. 26 127,460
Kirin Brewery Co., Ltd. 6,000 86,607
--------------
282,939
CELLULAR & WIRELESS 0.5%
KDDI Corp. 12 95,461
CHEMICALS & RUBBER 3.1%
Daicel Chemical Industries Ltd. 11,000 74,836
Dainippon Ink & Chemicals, Inc. 23,000 91,108
Kaneka Corp. 8,000 76,109
Mitsubishi Chemical Holdings Corp.
* 13,000 110,477
Mitsubishi Gas Chemical Co., Inc. 6,000 57,321
Sumitomo Chemical Co., Ltd. 16,000 120,573
Teijin Ltd. 21,000 118,029
--------------
648,453
COMMUNICATIONS UTILITIES 0.5%
Nippon Telegraph & Telephone Corp.
(NTT) 21 110,930
CONSTRUCTION MATERIALS 0.1%
Asahi Glass Co., Ltd. 2,000 28,064
CONSUMER DURABLES 0.5%
Matsushita Electric Industrial Co.,
Ltd. 5,000 100,772
DRUGS & PHARMACEUTICALS 0.6%
Taisho Pharmaceutical Co., Ltd. 7,000 128,279
ELECTRIC UTILITIES 0.3%
Hokkaido Electric Power Co., Inc. 2,100 55,716
The Chugoku Electric Power Co.,
Inc. 700 15,644
--------------
71,360
FURNITURE & HOUSEHOLD ITEMS 0.5%
Matsushita Electric Works Ltd. 2,000 22,853
Sankyo Co., Ltd. 1,800 78,908
--------------
101,761
GAS & OTHER PUBLIC UTILITIES 0.5%
Osaka Gas Co., Ltd. 24,000 92,989
</Table>
See financial notes.
Laudus Funds Annual Report 101
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSURANCE 1.1%
Aioi Insurance Co., Ltd. 9,000 62,545
Mitsui Sumitomo Insurance Co., Ltd. 5,000 62,519
Sompo Japan Insurance Inc. 8,000 99,352
--------------
224,416
IT HARDWARE 0.7%
Dainippon Screen Mfg. Co., Ltd. 5,000 37,694
Futaba Corp. 1,100 26,178
Seiko Epson Corp. 2,000 58,723
Toshiba Tec Corp. 5,000 29,865
--------------
152,460
LAND & WATER TRANSPORTATION 0.8%
Seino Transportation Co., Ltd. 7,000 65,963
West Japan Railway Co. 21 96,796
--------------
162,759
MAINFRAME & MINICOMPUTERS 0.5%
NEC Corp. 19,000 101,553
METAL PRODUCTS & MACHINERY 1.9%
Bosch Corp. 5,000 22,606
Fuji Electric Holdings Co., Ltd. 10,000 46,235
Heiwa Corp. 1,800 22,219
Hitachi Ltd. 16,000 124,364
Mitsubishi Heavy Industries Ltd. 19,000 122,520
Sega Sammy Holdings, Inc. 2,400 55,940
--------------
393,884
MISCELLANEOUS FINANCE 1.1%
Daiwa Securities Group, Inc. 10,000 120,174
Mitsubishi UFJ Securities Co., Ltd.
* 2,000 22,722
Shinsei Bank Ltd. 19,000 90,853
--------------
233,749
OIL DISTRIBUTION 0.2%
Cosmo Oil Co., Ltd. 8,000 33,397
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 1.3%
Fuji Photo Film Co., Ltd. 3,100 126,799
Konica Minolta Holdings, Inc. 9,500 124,466
Noritsu Koki Co., Ltd. 700 12,581
--------------
263,846
PUBLISHING, BROADCASTING & CINEMA 1.5%
Dai Nippon Printing Co., Ltd. 7,000 109,864
Dentsu, Inc. 20 55,763
Hakuhodo DY Holdings, Inc. 650 45,381
Nippon Television Network Corp. 90 14,826
Toppan Printing Co., Ltd. 7,000 72,914
TV Asahi Corp. 5 10,031
--------------
308,779
REAL ESTATE DEVELOPMENT 0.6%
Sekisui House Ltd. 8,000 124,212
SOFTWARE 0.4%
Fujitsu Ltd. 14,000 92,888
TEXTILES & APPAREL 0.6%
Onward Kashiyama Co., Ltd. 6,000 83,225
Tokyo Style Co., Ltd. 3,000 32,792
--------------
116,017
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
TRADING COMPANY 0.5%
Mitsubishi Corp. 4,400 101,575
--------------
4,941,848
NETHERLANDS 1.4%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
CSM N.V. 800 28,617
CHEMICALS & RUBBER 0.2%
Koninklijke DSM N.V. 900 40,389
FURNITURE & HOUSEHOLD ITEMS 0.2%
Hunter Douglas N.V. 408 35,999
INFORMATION & SERVICES 0.3%
Koninklijke BAM Groep N.V. 244 5,784
Vedior N.V. 2,100 46,805
--------------
52,589
INSTRUMENTS 0.4%
Koninklijke (Royal) Philips
Electronics N.V. 2,000 76,231
Orthofix International N.V. * 300 15,315
--------------
91,546
OIL DRILLING & SERVICES 0.1%
Schlumberger Ltd. 130 8,983
WHOLESALE 0.1%
Buhrmann N.V. 2,000 26,862
--------------
284,985
SPAIN 1.4%
- ------------------------------------------------------------------
AIRLINES 0.2%
Iberia Lineas Aereas de Espana S.A. 8,000 42,786
CONSTRUCTION MATERIALS 0.2%
Cementos Portland Valderrivas S.A. 300 45,355
GAS & OTHER PUBLIC UTILITIES 0.2%
Enagas S.A. 1,800 46,470
INTEGRATED OIL COMPANIES 0.4%
Repsol YPF S.A. 2,400 80,872
RESTAURANTS, HOTELS & THEATERS 0.4%
NH Hoteles S.A. * 1,600 36,848
Sol Melia S.A. 1,642 39,527
--------------
76,375
--------------
291,858
SWEDEN 1.3%
- ------------------------------------------------------------------
AIRLINES 0.2%
SAS AB * 2,000 36,825
AUTOS 0.2%
Volvo AB 600 50,691
BASIC MINERALS & METALS 0.3%
Boliden AB * 2,500 55,218
CELLULAR & WIRELESS 0.3%
TeliaSonera AB 6,000 52,053
COMMUNICATIONS UTILITIES 0.3%
Tele2 AB, Class B 4,000 65,697
--------------
260,484
</Table>
See financial notes.
102 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SWITZERLAND 2.5%
- ------------------------------------------------------------------
AUTOS 0.3%
Rieter Holding AG -- Reg'd 105 52,434
CHEMICALS & RUBBER 0.2%
Clariant AG -- Reg'd * 2,000 34,402
CONSTRUCTION MATERIALS 0.3%
Holcim Ltd. -- Reg'd 608 61,175
DRUGS & PHARMACEUTICALS 0.2%
Ciba Specialty Chemicals
AG -- Reg'd 612 40,406
ELECTRIC UTILITIES 0.3%
Elektrizitaets-Gesellschaft
Laufenburg AG 21 24,344
Motor-Columbus Ltd. 5 42,176
--------------
66,520
INSURANCE 1.0%
Baloise Holding AG, Reg'd 408 42,602
Helvetia Holding AG 120 51,544
Swiss Life Holding -- Reg'd * 240 60,397
Zurich Financial Services
AG -- Reg'd 210 60,727
--------------
215,270
REAL ESTATE DEVELOPMENT 0.2%
PSP Swiss Property AG * 800 48,770
--------------
518,977
UNITED KINGDOM 5.3%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
Tate & Lyle plc 3,150 35,731
AUTOS 0.1%
GKN plc 4,000 30,002
BASIC MINERALS & METALS 0.2%
Kazakhmys plc 2,000 46,269
CELLULAR & WIRELESS 0.2%
The Carphone Warehouse Group plc 6,000 32,863
COMMUNICATIONS UTILITIES 0.3%
Cable & Wireless 12,000 39,484
COLT Telecom Group S.A. * 9,000 31,586
--------------
71,070
CONSTRUCTION MATERIALS 0.1%
Cookson Group plc 2,205 26,982
ELECTRIC UTILITIES 0.2%
International Power plc 6,000 46,897
FURNITURE & HOUSEHOLD ITEMS 0.3%
Smiths Group plc 3,000 60,645
GOVERNMENT AIRCRAFT & DEFENSE 0.4%
BAE Systems plc 8,000 72,520
INFORMATION & SERVICES 0.2%
Group 4 Securicor plc 9,000 35,623
INSURANCE 1.0%
Aviva plc 4,900 72,402
Brit Insurance Holdings plc 4,000 25,382
Friends Provident plc 9,120 34,586
Old Mutual plc 63 204
Prudential plc 4,800 67,827
--------------
200,401
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
MISCELLANEOUS FINANCE 0.3%
Legal & General Group plc 18,000 56,500
PUBLISHING, BROADCASTING & CINEMA 0.6%
Aegis Group plc 12,000 35,360
Trinity Mirror plc 2,100 21,940
WPP Group plc 3,921 59,535
--------------
116,835
REAL ESTATE INVESTMENT TRUSTS 0.1%
Brixton plc 3,000 30,049
RESTAURANTS, HOTELS & THEATERS 0.8%
Compass Group plc 10,000 66,978
Greene King plc 1,400 30,387
Millennium & Copthorne Hotel plc 3,000 40,182
William Hill plc 2,574 32,249
--------------
169,796
RETAIL 0.1%
Alliance Boots plc 1,458 29,475
SOFTWARE 0.2%
Logica CMG plc 9,000 31,557
--------------
1,093,215
UNITED STATES 48.3%
- ------------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 1.1%
Bunge Ltd. 340 27,955
Cal-Maine Foods, Inc. 400 5,380
Campbell Soup Co. 2,190 85,301
H.J. Heinz Co. 210 9,895
Kellogg Co. 1,100 56,573
Overhill Farms, Inc. * 300 2,127
The Coca-Cola Co. 960 46,080
The Pepsi Bottling Group, Inc. 80 2,551
--------------
235,862
AIRLINES 0.5%
Alaska Air Group, Inc. * 33 1,257
AMR Corp. * 1,300 39,585
FedEx Corp. 500 53,715
Midwest Air Group, Inc. * 400 5,404
Pinnacle Airlines Corp. * 400 6,916
--------------
106,877
AUTOS 0.3%
General Motors Corp. 1,600 49,024
Spartan Motors, Inc. 400 9,284
--------------
58,308
BANKS & CREDIT INSTITUTIONS 1.5%
Bank of America Corp. 4,600 234,692
Dollar Financial Corp. * 500 12,650
The Bank of New York Co., Inc. 390 15,814
The First Marblehead Corp. 900 40,401
--------------
303,557
BASIC MINERALS & METALS 0.2%
Allegheny Technologies, Inc. 100 10,669
Brush Engineered Materials, Inc. * 300 14,541
General Cable Corp. * 140 7,480
--------------
32,690
</Table>
See financial notes.
Laudus Funds Annual Report 103
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BEER, LIQUOR, & TOBACCO 0.3%
Anheuser-Busch Cos., Inc. 1,400 70,644
BIOTECHNOLOGY 1.6%
Celgene Corp. * 3,600 188,856
Gilead Sciences, Inc. * 1,800 137,700
--------------
326,556
CELLULAR & WIRELESS 0.9%
NII Holdings, Inc. * 2,400 178,032
CHEMICALS & RUBBER 1.1%
Albemarle Corp. 900 37,206
Hercules, Inc. * 1,400 27,356
LSB Industries, Inc. * 300 4,671
Monsanto Co. 2,100 115,416
PPG Industries, Inc. 476 33,468
--------------
218,117
COMMERCIAL AIRCRAFT & COMPONENTS 0.1%
Ladish Co., Inc. * 300 11,292
The Boeing Co. 180 16,004
--------------
27,296
COMMUNICATIONS UTILITIES 3.7%
American Tower Corp., Class A * 2,300 89,585
AT&T Corp. 5,510 217,259
Comcast Corp., Class A * 6,536 169,609
Knology, Inc. * 500 7,915
Level 3 Communications, Inc. * 2,201 13,426
Qwest Communications International,
Inc. * 16,300 146,537
The DIRECTV Group, Inc. * 5,600 129,192
The Knot, Inc. 18 388
--------------
773,911
CONSTRUCTION & HOMEBUILDING 0.0%
U.S. Home Systems, Inc. * 200 2,550
CONSUMER DURABLES 0.4%
Harley-Davidson, Inc. 1,300 76,375
Syntax-Brillian Corp. * 100 840
Universal Electronics, Inc. * 200 5,572
--------------
82,787
DRUGS & PHARMACEUTICALS 1.2%
Abbott Laboratories 1,400 78,120
Allergan, Inc. 600 66,492
Bradley Pharmaceuticals, Inc. * 300 5,757
NBTY, Inc. * 670 35,537
Pfizer, Inc. 2,400 60,624
--------------
246,530
ELECTRIC UTILITIES 1.3%
Consolidated Edison, Inc. 1,500 76,590
Edison International 3,300 162,129
ITC Holdings Corp. 500 21,645
--------------
260,364
FINANCIAL INVESTMENTS 0.1%
Iconix Brand Group, Inc. * 100 2,040
NexCen Brands, Inc. * 800 7,936
SRS Labs, Inc. * 230 3,204
--------------
13,180
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FOREST PRODUCTS & PAPER 0.7%
Cenveo, Inc. * 900 21,870
International Paper Co. 3,400 123,760
--------------
145,630
FURNITURE & HOUSEHOLD ITEMS 0.3%
AZZ, Inc. * 200 8,400
Fossil, Inc. * 800 21,176
GameTech International, Inc. * 400 4,888
Hasbro, Inc. 770 22,037
Virco Manufacturing Corp. * 300 2,025
--------------
58,526
GAS & OTHER PUBLIC UTILITIES 0.4%
Hanover Compressor Co. * 7 156
The Williams Cos., Inc. 2,900 82,534
--------------
82,690
GOVERNMENT AIRCRAFT & DEFENSE 0.1%
Garmin Ltd. 200 10,830
Smith & Wesson Holding Corp. * 700 9,163
--------------
19,993
HEALTH CARE & HOSPITAL 0.4%
Almost Family, Inc. * 200 4,980
AMERIGROUP Corp. * 670 20,368
Brookdale Senior Living, Inc. 100 4,466
Health Net, Inc. * 3 161
Humana, Inc. * 900 52,218
MEDTOX Scientific, Inc. * 200 3,680
Sun Healthcare Group, Inc. * 320 3,952
--------------
89,825
INFORMATION & SERVICES 1.1%
Accenture Ltd., Class A 1,100 42,394
Arbitron, Inc. 400 18,780
Cass Information Systems, Inc. 160 5,402
Corrections Corp. of America * 700 36,967
CPI Corp. 300 15,753
Manpower, Inc. 100 7,377
Parexel International Corp. * 500 17,985
Rainmaker Systems, Inc. * 400 3,360
Standard Parking Corp. * 300 10,611
The Dun & Bradstreet Corp. 543 49,522
The Geo Group, Inc. * 200 9,064
Thomas Group, Inc. 200 2,384
Volt Information Sciences, Inc. * 450 11,785
--------------
231,384
INSTRUMENTS 1.2%
Align Technology, Inc. * 1,000 15,860
Angeion Corp. * 200 2,940
Baxter International, Inc. 2,100 110,607
Bovie Medical Corp. * 400 2,840
Bruker BioSciences Corp. * 1,600 16,832
Cholestech Corp. * 200 3,448
Faro Technologies, Inc. * 300 8,661
FEI Co. 470 16,948
II-VI, Inc. * 437 14,792
K-Tron International, Inc. * 150 10,760
NumereX Corp, Class A * 400 4,076
</Table>
See financial notes.
104 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Waters Corp. * 740 42,920
Zoll Medical Corp. * 300 7,995
--------------
258,679
INSURANCE 3.1%
ACE Ltd. 3,100 176,886
Ambassadors International, Inc. 300 13,842
CorVel Corp. * 300 9,075
Everest Re Group Ltd. 500 48,085
Genworth Financial, Inc., Class A 2,600 90,844
Loews Corp. 3,900 177,177
The Allstate Corp. 1,290 77,477
Tower Group, Inc. 400 12,888
Wellcare Health Plans, Inc. * 500 42,625
--------------
648,899
INTEGRATED OIL COMPANIES 0.2%
Hess Corp. 820 45,485
IT HARDWARE 4.5%
Agere Systems, Inc. * 1,600 36,192
Amphenol Corp., Class A 1,200 77,484
Anadigics, Inc. * 900 10,638
Avaya, Inc. * 1,060 12,519
Avici Systems, Inc. * 300 3,426
Aviza Technology, Inc. * 300 2,163
Cisco Systems, Inc. * 17,930 457,753
Comtech Group, Inc. * 500 8,740
Globecomm Systems, Inc. * 300 3,210
Harmonic, Inc. * 1,200 11,784
Harris Corp. 866 44,123
Harris Stratex Networks, Inc.,
Class A * 450 8,635
L-3 Communications Holdings, Inc. 700 61,229
MEMC Electronic Materials, Inc. * 2,600 157,508
Novellus Systems, Inc. * 1,000 32,020
Simclar, Inc. * 200 1,212
SonicWALL, Inc. * 1,100 9,196
--------------
937,832
LAND & WATER TRANSPORTATION 1.2%
Union Pacific Corp. 2,380 241,689
MAINFRAME & MINICOMPUTERS 1.3%
Apple, Inc. * 1,500 139,365
Cray, Inc. * 500 6,895
Omnicell, Inc. * 500 10,460
Sun Microsystems * 17,000 102,170
--------------
258,890
METAL PRODUCTS & MACHINERY 2.0%
AGCO Corp. * 1,000 36,970
American Standard Cos., Inc. 1,200 63,624
Energizer Holdings, Inc. * 100 8,533
Key Technology, Inc. * 200 3,160
MFRI, Inc. * 200 3,708
Parker Hannifin Corp. 1,140 98,393
PG&E Corp. 1,750 84,473
Robbins & Myers, Inc. 300 11,187
Terex Corp. * 500 35,880
The Middleby Corp. * 160 21,094
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Varian Semiconductor Equipment
Associates, Inc. * 600 32,028
Zoltek Cos., Inc. * 400 13,972
--------------
413,022
MISCELLANEOUS FINANCE 1.8%
Chicago Mercantile Exchange
Holdings, Inc., Class A 240 127,791
Cohen & Steers, Inc. 600 25,848
Diamond Hill Investment Group * 200 19,502
International Assets Holding Corp.
* 300 8,379
Merrill Lynch & Co., Inc. 2,200 179,674
U.S. Global Investors, Inc., Class
A * 420 10,819
--------------
372,013
OIL & COAL RESOURCES 0.4%
Equitable Resources, Inc. 200 9,664
XTO Energy, Inc. 1,200 65,772
--------------
75,436
OIL DISTRIBUTION 0.2%
Holly Corp. 600 35,580
OIL DRILLING & SERVICES 1.4%
Dawson Geophysical Co. * 150 7,429
ENSCO International, Inc. 1,000 54,400
GlobalSantaFe Corp. 1,200 74,016
McDermott International, Inc. * 700 34,286
Noble Corp. 70 5,508
Omni Energy Services Corp. * 300 3,054
Transocean, Inc. * 1,400 114,380
--------------
293,073
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6%
Brocade Communications Systems,
Inc. * 3,000 28,560
EMC Corp. * 900 12,465
Hauppauge Digital, Inc. * 300 2,049
Interphase Corp. * 200 2,232
Lexmark International, Inc., Class
A * 300 17,538
Pitney Bowes, Inc. 1,300 59,007
Stec, Inc. * 900 6,336
VASCO Data Security International,
Inc. * 280 5,004
--------------
133,191
PUBLISHING, BROADCASTING & CINEMA 1.3%
CBS Corp., Class B 3,000 91,770
Gannett Co., Inc. 860 48,409
Lamar Advertising Co., Class A * 500 31,485
News Corp., Class A 2,904 67,141
The Walt Disney Co. 600 20,658
Triple Crown Media, Inc. * 200 1,678
--------------
261,141
REAL ESTATE DEVELOPMENT 0.1%
AMREP Corp. * 200 15,450
REAL ESTATE INVESTMENT TRUSTS 0.1%
Public Storage, Inc. 200 18,934
RESTAURANTS, HOTELS & THEATERS 0.5%
McDonald's Corp. 2,500 112,625
</Table>
See financial notes.
Laudus Funds Annual Report 105
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
RETAIL 5.1%
Abercrombie & Fitch Co., Class A 1,204 91,119
American Eagle Outfitters, Inc. 1,600 47,984
AutoZone, Inc. * 1,000 128,140
Big Lots, Inc. * 1,000 31,280
Charlotte Russe Holding, Inc. * 500 14,435
Federated Department Stores, Inc. 1,200 54,060
J.C. Penney Co., Inc. 2,300 188,968
Kohl's Corp. * 1,100 84,271
Medco Health Solutions, Inc. * 1,500 108,795
Nordstrom, Inc. 2,667 141,191
OfficeMax, Inc. 700 36,918
PC Mall, Inc. * 300 2,991
Priceline.com, Inc. * 500 26,630
PriceSmart, Inc. * 500 7,680
Sears Holdings Corp. * 300 54,048
Spartan Stores, Inc. 400 10,720
The Bon-Ton Stores, Inc. 300 16,872
--------------
1,046,102
SOFTWARE 5.3%
Akamai Technologies, Inc. * 900 44,928
Allscripts Healthcare Solutions,
Inc. * 800 21,448
BMC Software, Inc. * 2,500 76,975
Cadence Design Systems, Inc. * 1,800 37,908
Captaris, Inc. * 400 2,316
Cognizant Technology Solutions
Corp., Class A * 1,500 132,405
Computer Sciences Corp. * 1,000 52,130
Datalink Corp. * 300 2,349
GSE Systems, Inc. * 300 1,905
i2 Technologies, Inc. * 500 12,000
Internap Network Services Corp. * 600 9,450
International Business Machines
Corp. 2,280 214,913
Internet Gold-Golden Lines Ltd. * 400 5,008
Interwoven, Inc. * 700 11,830
Intuit, Inc. * 4,100 112,176
McAfee, Inc. * 1,200 34,896
Mentor Graphics Corp. * 1,200 19,608
Microsoft Corp. 2,200 61,314
NEON Communications Group, Inc. * 600 2,814
Nuance Communications, Inc. * 1,600 24,496
Oracle Corp. * 9,670 175,317
Scientific Learning Corp. * 300 2,292
Smith Micro Software, Inc. * 500 9,315
Taleo Corp., Class A * 400 6,632
THQ, Inc. * 800 27,352
Versant Corp. * 200 3,390
--------------
1,105,167
TEXTILES & APPAREL 0.5%
Deckers Outdoor Corp. * 300 21,306
G-III Apparel Group Ltd. * 220 4,191
Guess?, Inc. 800 32,392
Interface, Inc., Class A 800 12,792
Maidenform Brands, Inc. * 400 9,228
R.G. Barry Corp. * 200 2,084
The Gymboree Corp. * 500 20,035
--------------
102,028
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
WHOLESALE 0.2%
En Pointe Technologies, Inc. * 200 682
KSW, Inc. * 100 640
TESSCO Technologies, Inc. * 200 5,438
The Aristotle Corp. * 300 3,036
W.W. Grainger, Inc. 500 38,620
--------------
48,416
--------------
9,988,961
--------------
TOTAL COMMON STOCK (COST $17,051,955) 19,874,593
--------------
PREFERRED STOCK (A) 0.0% OF NET ASSETS
UNITED KINGDOM 0.0%
- ------------------------------------------------------------------
COMMERCIAL AIRCRAFT & COMPONENTS 0.0%
Rolls-Royce Group plc * 414,400 836
--------------
TOTAL PREFERRED STOCK (COST $800) 836
--------------
RIGHTS (A) 0.1% OF NET ASSETS
JAPAN 0.1%
- ------------------------------------------------------------------
BASIC MINERALS & METALS 0.1%
Dowa Mining * 11,000 5,587
--------------
TOTAL RIGHTS (COST $--) 5,587
- ------------------------------------------------------------------
<Caption>
FACE
SECURITY AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT (A) 5.7% OF NET ASSETS
REPURCHASE AGREEMENT 5.7%
- ------------------------------------------------------------------
Custodian Trust Company, dated
03/30/07, due 04/02/07 at 5.10%,
with a maturity value of
$1,180,861 (fully collateralized
by U.S. Treasury Bill with a
value of $1,232,904) 1,180,359 1,180,359
--------------
TOTAL SHORT-TERM INVESTMENT
(COST $1,180,359) 1,180,359
- ------------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 03/31/07 the tax basis cost of the fund's investments was $18,392,812, and
the unrealized appreciation and depreciation were $2,920,437 and ($251,874),
respectively, with a net unrealized appreciation of $2,668,563.
At 03/31/07, the prices of certain foreign securities held by the fund
aggregating ($48,235) were adjusted from their closing market prices following
the guidelines adopted by the fund's board of trustees.
* Non-income producing security.
(a) All long positions are pledged as collateral for securities sold short.
See financial notes.
106 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
AMOUNT OF AMOUNT OF UNREALIZED
CURRENCY CURRENCY CURRENCY CURRENCY GAINS /
EXPIRATION TO BE TO BE TO BE TO BE LOSSES
DATE RECEIVED RECEIVED DELIVERED DELIVERED ($)
FORWARD FOREIGN CURRENCY CONTRACTS
07/19/2007 JPY 182,027,000 USD 1,566,561 2,964
07/19/2007 USD 5,981,804 JPY 695,057,000 (86,567)
-------
(83,603)
</Table>
See financial notes.
Laudus Funds Annual Report 107
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SHORT SALES 95.5% OF NET ASSETS
AUSTRIA 0.3%
- -----------------------------------------------------------------
ELECTRIC UTILITIES 0.1%
Oesterreichische
Elektrizitaetswirtschafts AG 600 26,952
INSURANCE 0.2%
UNIQA Versicherungen AG 900 30,047
--------------
56,999
DENMARK 0.8%
- -----------------------------------------------------------------
CONSTRUCTION MATERIALS 0.2%
FLSmidth & Co. A/S 600 40,540
DRUGS & PHARMACEUTICALS 0.4%
Alk-Abello A/S 200 36,991
Genmab A/S * 800 48,855
--------------
85,846
LAND & WATER TRANSPORTATION 0.2%
DSV A/S 200 34,864
--------------
161,250
FINLAND 0.9%
- -----------------------------------------------------------------
CHEMICALS & RUBBER 0.1%
Nokian Renkaat Oyj 840 23,075
CONSTRUCTION & HOMEBUILDING 0.4%
Kone Oyj 800 45,678
YIT Oyj 1,200 41,521
--------------
87,199
LAND & WATER TRANSPORTATION 0.1%
Cargotec Corp. 388 23,462
METAL PRODUCTS & MACHINERY 0.1%
Wartsila Oyj Abp, Class B 420 26,079
RETAIL 0.2%
Stockmann Oyj Abp, Share B 800 34,923
--------------
194,738
FRANCE 3.6%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.3%
Groupe Danone 417 68,227
CHEMICALS & RUBBER 0.3%
Air Liquide S.A. 273 66,440
CONSTRUCTION & HOMEBUILDING 0.4%
Technip S.A. 300 21,826
Vinci S.A. 400 62,374
--------------
84,200
INFORMATION & SERVICES 0.2%
Financiere Marc de Lacharriere S.A. 430 39,712
INSTRUMENTS 0.2%
Neopost S.A. 300 42,980
INSURANCE 0.4%
April Group 600 31,373
Euler Hermes S.A. 312 43,937
--------------
75,310
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
IT HARDWARE 0.2%
Silicon-On-Insulator Technologies
(SOITEC) * 1,400 33,523
OIL DRILLING & SERVICES 0.2%
Bourbon S.A. 600 42,019
RETAIL 0.2%
Casino Guichard Perrachon S.A. 400 40,550
SOAPS & COSMETICS 0.4%
L'Oreal S.A. 703 76,785
TEXTILES & APPAREL 0.2%
Hermes International 370 51,166
WHOLESALE 0.6%
Essilor International S.A. 600 69,019
Pinault-Printemps-Redoute S.A. 300 48,164
--------------
117,183
--------------
738,095
GERMANY 3.0%
- -----------------------------------------------------------------
AIRLINES 0.1%
Fraport AG 243 17,823
BANKS & CREDIT INSTITUTIONS 0.4%
Hypo Real Estate Holding AG 668 42,636
IKB Deutsche Industriebank AG 880 35,158
--------------
77,794
CONSUMER DURABLES 0.2%
Rational AG 210 40,729
FOREST PRODUCTS & PAPER 0.1%
Pfleiderer AG 800 23,242
FURNITURE & HOUSEHOLD ITEMS 0.2%
Bijou Brigitte Modische Accessoires
AG 180 41,815
INSURANCE 0.1%
MLP AG 1,200 30,298
LAND & WATER TRANSPORTATION 0.4%
Deutsche Post AG 2,500 75,472
METAL PRODUCTS & MACHINERY 0.2%
Solarworld AG 400 30,996
MISCELLANEOUS FINANCE 0.4%
Deutsche Boerse AG 313 71,731
SOFTWARE 0.6%
SAP AG 1,600 71,314
United Internet AG -- Reg'd 3,000 58,596
--------------
129,910
WHOLESALE 0.3%
Celesio AG 600 37,716
Fielmann AG 510 31,417
--------------
69,133
--------------
608,943
</Table>
See financial notes.
108 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
ITALY 1.9%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.8%
Banca Monte dei Paschi di Siena
S.p.A. 9,000 56,439
Credito Emiliano S.p.A. 3,000 47,302
Mediobanca S.p.A. 2,400 53,491
--------------
157,232
CONSTRUCTION & HOMEBUILDING 0.4%
Saipem S.p.A. 2,580 75,460
INSURANCE 0.7%
Alleanza Assicurazioni S.p.A. 4,000 51,170
Assicurazioni Generali S.p.A. 1,600 68,147
Mediolanum S.p.A 4,000 32,452
--------------
151,769
--------------
384,461
JAPAN 24.0%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Ezaki Glico Co., Ltd. 2,000 23,724
BANKS & CREDIT INSTITUTIONS 3.2%
Aeon Credit Service Co., Ltd. 1,900 31,853
Credit Saison Co., Ltd. 800 26,229
Mizuho Trust & Banking Co., Ltd. 27,000 59,562
Suruga Bank Ltd. 5,000 64,890
The Bank of Fukuoka Ltd. (b) 7,000 56,492
The Bank Of Yokohama, Ltd. 15,000 111,507
The Chiba Bank Ltd. 13,000 114,256
The Musashino Bank Ltd. 100 5,343
The Shizuoka Bank Ltd. 7,000 74,303
The Sumitomo Trust & Banking Co.,
Ltd. 9,000 93,373
The Hiroshima Bank Ltd. 3,000 16,494
--------------
654,302
BASIC MINERALS & METALS 0.3%
Mitsubishi Materials Corp. 11,000 52,033
BEER, LIQUOR, & TOBACCO 0.1%
Takara Holdings, Inc. 4,000 28,217
CHEMICALS & RUBBER 0.8%
Nissan Chemical Industries Ltd. 5,000 64,251
Shin-Etsu Chemical Co., Ltd. 1,500 91,265
--------------
155,516
COMMUNICATIONS UTILITIES 0.5%
Softbank Corp. * 3,700 94,766
CONSTRUCTION & HOMEBUILDING 2.3%
Chiyoda Corp. 4,000 87,369
JGC Corp. 5,000 81,794
Kajima Corp. 18,000 91,524
Nippon Sheet Glass Co., Ltd. 7,000 36,620
Obayashi Corp. 12,000 77,124
Shimizu Corp. 14,000 85,574
Taisei Corp. 5,000 18,470
--------------
478,475
CONSTRUCTION MATERIALS 0.5%
Ibiden Co., Ltd. 2,100 108,451
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
CONSUMER DURABLES 1.1%
Daikin Industries Ltd. 3,700 128,355
Funai Electric Co., Ltd. 300 28,525
Sony Corp. 1,600 80,863
--------------
237,743
DRUGS & PHARMACEUTICALS 0.3%
Chugai Pharmaceutical Co., Ltd. 2,600 65,629
FINANCIAL INVESTMENTS 0.6%
Mitsubishi UFJ Lease & Finance Co.,
Ltd. 230 11,472
ORIX Corp. 290 75,245
Square Enix Co., Ltd. 1,100 28,263
--------------
114,980
FOREST PRODUCTS & PAPER 0.2%
Uni-Charm Corp. 800 50,503
GAS & OTHER PUBLIC UTILITIES 0.1%
Toho Gas Co., Ltd. 6,000 30,810
INFORMATION & SERVICES 0.2%
Meitec Corp. 200 6,443
Park24 Co., Ltd. 2,600 34,877
--------------
41,320
INSTRUMENTS 0.8%
Terumo Corp. 2,800 108,711
Yokogawa Electric Corp. 4,300 65,661
--------------
174,372
IT HARDWARE 3.9%
Advantest Corp. 1,600 70,885
Fanuc Ltd. 1,100 101,921
Hirose Electric Co., Ltd. 400 47,886
Hoya Corp. 2,400 79,290
Keyence Corp. 450 101,248
Murata Manufacturing Co., Ltd. 1,400 101,677
Nidec Corp. 1,200 77,015
Nidec Sankyo Corp. 3,000 23,549
Sharp Corp. 5,000 96,148
Tokyo Electron Ltd. 1,400 97,514
--------------
797,133
LAND & WATER TRANSPORTATION 1.9%
Central Japan Railway Co. 6 68,125
Kintetsu Corp. 19,000 59,740
Mitsui O.S.K. Lines Ltd. 9,000 99,651
Odakyu Electric Railway Co., Ltd. 12,000 87,594
Yamato Holdings Co., Ltd. 5,000 80,459
--------------
395,569
MAINFRAME & MINICOMPUTERS 0.4%
Casio Computer Co., Ltd. 4,100 89,368
METAL PRODUCTS & MACHINERY 1.5%
Komatsu Ltd. 4,500 94,244
Mitsubishi Electric Corp. 11,000 113,021
The Japan Steel Works Ltd. 3,000 35,936
Yaskawa Electric Corp. 5,000 58,967
--------------
302,168
OIL DISTRIBUTION 0.0%
Showa Shell Sekiyu K.K 600 7,329
</Table>
See financial notes.
Laudus Funds Annual Report 109
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.4%
Canon, Inc. 1,500 80,541
REAL ESTATE DEVELOPMENT 0.5%
Mitsubishi Estate Co., Ltd. 3,000 98,112
RETAIL 1.3%
Aeon Co., Ltd. 5,900 117,004
Don Quijote Co., Ltd. 4,200 81,896
Hikari Tsushin, Inc. 1,300 59,013
Izumi Co., Ltd. 100 1,852
--------------
259,765
SOFTWARE 1.6%
Konami Corp. 2,600 69,356
NTT Data Corp. 23 116,457
Oracle Corp. 1,000 47,961
Otsuka Corp. 400 38,225
Trend Micro, Inc. 2,500 68,091
--------------
340,090
TRADING COMPANY 1.4%
Itochu Corp. 10,000 98,761
Mitsui & Co., Ltd. 4,000 75,279
Sumitomo Corp. 6,300 112,891
--------------
286,931
--------------
4,967,847
NETHERLANDS 1.2%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.2%
Royal Numico N.V. 900 46,421
INFORMATION & SERVICES 0.2%
Fugro N.V. CVA 600 30,469
LAND & WATER TRANSPORTATION 0.2%
Koninklijke Vopak N.V. 660 37,387
METAL PRODUCTS & MACHINERY 0.2%
Aalberts Industries N.V. 400 39,672
OIL DRILLING & SERVICES 0.0%
Schlumberger Ltd. 130 8,983
PUBLISHING, BROADCASTING & CINEMA 0.2%
Reed Elsevier N.V. 2,700 47,825
REAL ESTATE DEVELOPMENT 0.2%
Rodamco Europe N.V. 284 39,608
--------------
250,365
NORWAY 1.1%
- -----------------------------------------------------------------
INFORMATION & SERVICES 0.2%
Acergy S.A. * 2,000 42,328
INSURANCE 0.3%
Storebrand A.S.A. 4,000 63,702
OIL DRILLING & SERVICES 0.3%
Seadrill Ltd. * 4,000 64,311
PUBLISHING, BROADCASTING & CINEMA 0.3%
Schibsted A.S.A. 1,200 52,662
--------------
223,003
SPAIN 1.5%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.1%
Sos Cuetara S.A. 1,500 29,465
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BANKS & CREDIT INSTITUTIONS 0.3%
Banco Espanol de Crecito S.A.
(Banesto) 2,800 67,165
CONSTRUCTION & HOMEBUILDING 0.2%
Acciona S.A. 160 34,782
DRUGS & PHARMACEUTICALS 0.2%
FAES FARMA S.A. 1,600 40,817
LAND & WATER TRANSPORTATION 0.2%
Cintra Concesiones de
Infraestructuras de Transporte
S.A. 2,000 37,588
METAL PRODUCTS & MACHINERY 0.3%
Gamesa Corp. Tecnologica S.A. 1,800 65,544
REAL ESTATE DEVELOPMENT 0.2%
Grupo Inmocaral S.A. * 6,000 41,677
--------------
317,038
SWEDEN 1.1%
- -----------------------------------------------------------------
METAL PRODUCTS & MACHINERY 0.4%
Atlas Copco AB 1,800 59,835
Sandvik AB 1,400 24,933
--------------
84,768
MISCELLANEOUS FINANCE 0.4%
OMX AB 1,600 33,343
Skandinaviska Enskilda Banken AB,
(SEB) Series A 1,600 51,246
--------------
84,589
PUBLISHING, BROADCASTING & CINEMA 0.3%
Modern Times Group AB, Class B * 1,000 58,398
--------------
227,755
SWITZERLAND 2.0%
- -----------------------------------------------------------------
BANKS & CREDIT INSTITUTIONS 0.2%
Vontobel Holding AG 600 30,867
DRUGS & PHARMACEUTICALS 0.2%
Actelion Ltd. -- Reg'd * 200 46,613
INFORMATION & SERVICES 0.2%
SGS S.A. -- Reg'd 40 47,884
INSTRUMENTS 1.0%
Nobel Biocare Holding AG 180 65,656
Phonak Holding AG 600 46,066
Straumann Holding AG 140 40,150
Synthes, Inc. 400 49,527
--------------
201,399
LAND & WATER TRANSPORTATION 0.2%
Kuehne & Nagel International AG --
Reg'd 506 41,572
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.2%
Logitech International S.A. * 1,400 39,036
--------------
407,371
UNITED KINGDOM 6.6%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 0.5%
Cadbury Schweppes plc 5,400 69,405
Premier Foods plc 4,500 25,841
--------------
95,246
</Table>
See financial notes.
110 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
AUTOS 0.1%
Tomkins plc 4,200 22,053
BANKS & CREDIT INSTITUTIONS 0.6%
Alliance & Leicester plc 2,000 44,587
Northern Rock plc 2,400 54,252
Standard Chartered plc 1,027 29,668
--------------
128,507
CONSTRUCTION & HOMEBUILDING 0.7%
Barratt Developments plc 670 14,551
Bellway plc 975 30,545
Bovis Homes Group plc 1,000 22,696
Persimmon plc 1,600 44,316
Redrow plc 2,025 25,981
--------------
138,089
ELECTRIC UTILITIES 0.5%
Drax Group plc 2,240 34,656
National Grid plc 4,200 66,279
--------------
100,935
FINANCIAL INVESTMENTS 0.1%
Burberry Group plc 2,400 30,852
FOREST PRODUCTS & PAPER 0.2%
Bunzl plc 2,666 37,779
INFORMATION & SERVICES 1.4%
Hays 12,000 36,985
Homeserve plc 600 21,054
Intertek Group plc 2,100 37,502
Michael Page International plc 3,000 31,658
Regus Group plc * 15,000 43,827
Rentokil Initial plc 9,000 28,946
Reuters Group plc 5,365 49,302
Serco Group plc 3,634 32,871
--------------
282,145
INSTRUMENTS 0.0%
Smith & Nephew plc 180 2,291
IT HARDWARE 0.2%
ARM Holdings plc 15,000 39,536
LAND & WATER TRANSPORTATION 0.4%
Forth Ports plc 300 12,242
Go-Ahead Group plc 600 30,110
Stagecoach Group plc 9,000 31,830
--------------
74,182
METAL PRODUCTS & MACHINERY 0.2%
Rexam plc 3,000 32,535
OIL & COAL RESOURCES 0.8%
BG Group plc 4,970 71,693
Burren Energy plc 1,400 21,971
Cairn Energy plc * 975 29,886
Cairn Energy plc, Shares B * 1,200 7,084
Sibir Energy plc * 2,200 20,448
Soco International plc * 800 24,568
--------------
175,650
OIL DRILLING & SERVICES 0.0%
Petrofac Ltd. 1,000 8,684
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PUBLISHING, BROADCASTING & CINEMA 0.4%
Pearson plc 3,059 52,629
United Business Media plc 2,200 34,335
--------------
86,964
RESTAURANTS, HOTELS & THEATERS 0.3%
InterContinental Hotels Group plc 1,400 34,610
Ladbrokes plc 3,553 28,259
--------------
62,869
WHOLESALE 0.2%
Electrocomponents plc 4,000 22,722
Premier Farnell plc 5,400 21,726
--------------
44,448
--------------
1,362,765
UNITED STATES 47.5%
- -----------------------------------------------------------------
AGRICULTURE, FOOD & BEVERAGE 1.4%
Cuisine Solutions, Inc. * 300 2,166
The Coca-Cola Co. 500 24,000
The Hershey Co. 1,200 65,592
Wm. Wrigley Jr. Co. 3,875 197,354
--------------
289,112
AIRLINES 0.3%
Southwest Airlines Co. 4,300 63,210
AUTOS 0.9%
Ford Motor Co. 18,900 149,121
Oshkosh Truck Corp. 300 15,900
Tenneco, Inc. * 700 17,822
--------------
182,843
BANKS & CREDIT INSTITUTIONS 1.7%
American Express Co. 1,500 84,600
Commerce Bancorp, Inc. 1,300 43,394
Fifth Third Bancorp 2,400 92,856
Sovereign Bancorp, Inc. 2,500 63,600
Washington Mutual, Inc. 1,764 71,230
--------------
355,680
BASIC MINERALS & METALS 0.4%
Dynamic Materials Corp. * 300 9,816
Meridian Gold, Inc. * 1,000 25,530
Newmont Mining Corp. 1,000 41,990
--------------
77,336
BEER, LIQUOR, & TOBACCO 0.2%
Brown-Forman Corp., Class B 700 45,892
BIOTECHNOLOGY 2.0%
Alexion Pharmaceuticals, Inc. * 500 21,620
Altus Pharmaceuticals, Inc. * 300 4,566
Amgen, Inc. * 2,700 150,876
CV Therapeutics, Inc. * 900 7,083
Encysive Pharmaceuticals, Inc. * 900 2,439
Gen-Probe, Inc. * 600 28,248
Genentech, Inc. * 1,900 156,028
Keryx Biopharmaceuticals, Inc. * 700 7,364
Vertex Pharmaceuticals, Inc. * 1,178 33,031
--------------
411,255
CHEMICALS & RUBBER 0.2%
ADA-ES, Inc. * 200 2,750
American Vanguard Corp. 500 8,545
</Table>
See financial notes.
Laudus Funds Annual Report 111
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BioSphere Medical, Inc. * 300 2,208
Hexcel Corp. * 1,100 21,835
NewMarket Corp. 300 12,201
The Dow Chemical Co. 60 2,752
--------------
50,291
COMMUNICATIONS UTILITIES 1.9%
A.D.A.M., Inc. * 200 1,272
Sohu.com, Inc. * 500 10,715
Yahoo! Inc. * 12,000 375,480
--------------
387,467
CONSTRUCTION & HOMEBUILDING 1.1%
D.R. Horton, Inc. 1,980 43,560
Fluor Corp. 200 17,944
Jacobs Engineering Group, Inc. * 800 37,320
Lennar Corp., Class A 1,400 59,094
Pike Electric Corp. * 600 10,848
Pulte Homes, Inc. 2,120 56,095
--------------
224,861
CONSUMER DURABLES 0.3%
Fleetwood Enterprises, Inc. * 1,100 8,701
Harman International Industries,
Inc. 500 48,040
--------------
56,741
DRUGS & PHARMACEUTICALS 1.4%
Abbott Laboratories 1,400 78,120
Alkermes, Inc. * 1,200 18,528
Allergan, Inc. 100 11,082
Amylin Pharmaceuticals, Inc. * 300 11,208
Barr Pharmaceuticals, Inc. * 700 32,445
Barrier Therapeutics, Inc. * 400 2,760
Cerus Corp. * 500 3,375
DUSA Pharmaceuticals, Inc. * 400 1,432
Enzon Pharmaceuticals, Inc. * 700 5,705
Forest Laboratories, Inc. * 1,700 87,448
Lannett Co., Inc. * 500 2,575
Metabasis Therapeutics, Inc. * 100 735
Neurogen Corp. * 600 3,900
NPS Pharmaceuticals, Inc. * 700 2,373
Rigel Pharmaceuticals, Inc. * 400 4,344
ZymoGenetics, Inc. * 800 12,448
--------------
278,478
ELECTRIC UTILITIES 1.3%
Dominion Resources, Inc. 740 65,690
Duke Energy Corp. 5,600 113,624
TXU Corp. 1,500 96,150
--------------
275,464
FINANCIAL INVESTMENTS 0.1%
Williams Scotsman International,
Inc. * 700 13,762
Winmark Corp. * 195 3,900
--------------
17,662
FOREST PRODUCTS & PAPER 0.6%
3M Co. 1,400 107,002
Caraustar Industries, Inc. * 500 3,140
Deltic Timber Corp. 200 9,592
--------------
119,734
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FURNITURE & HOUSEHOLD ITEMS 1.3%
Cooper Industries Ltd., Class A 700 31,493
HNI Corp. 400 18,372
Newell Rubbermaid, Inc. 1,746 54,283
Omnova Solutions, Inc. * 700 3,822
The Procter & Gamble Co. 2,450 154,742
--------------
262,712
GAS & OTHER PUBLIC UTILITIES 0.2%
Casella Waste Systems, Inc., Class
A * 500 4,880
Republic Services, Inc. 1,200 33,384
--------------
38,264
GOVERNMENT AIRCRAFT & DEFENSE 0.5%
GenCorp, Inc. * 900 12,456
LaBarge, Inc. * 250 3,250
Textron, Inc. 700 62,860
The Allied Defense Group, Inc. * 300 2,565
United Industrial Corp. 200 11,040
--------------
92,171
HEALTH CARE & HOSPITAL 0.6%
Coventry Health Care, Inc. * 900 50,445
DaVita, Inc. * 100 5,332
Quest Diagnostics, Inc. 1,200 59,844
Tenet Healthcare Corp. * 1,300 8,359
VistaCare, Inc., Class A * 300 2,610
--------------
126,590
INFORMATION & SERVICES 1.0%
Administaff, Inc. 500 17,600
Arena Pharmaceuticals, Inc. * 800 8,688
BearingPoint, Inc. * 2,400 18,384
deCODE genetics, Inc. * 900 3,285
Devcon International Corp. * 200 980
Euronet Worldwide, Inc. * 600 16,116
Exelixis, Inc. * 1,500 14,910
Global Cash Access Holdings, Inc. * 1,200 20,028
Michael Baker Corp. * 100 2,430
Paychex, Inc. 1,800 68,166
The Corporate Executive Board Co. 400 30,384
Universal Technical Institute, Inc.
* 500 11,540
--------------
212,511
INSTRUMENTS 1.3%
AngioDynamics, Inc. * 300 5,067
Boston Scientific Corp. * 600 8,724
Daxor Corp. * 200 2,650
Ixia * 1,100 10,230
Measurement Specialties, Inc. * 400 9,024
Medtronic, Inc. 1,500 73,590
OraSure Technologies, Inc. * 700 5,145
Quidel Corp. * 400 4,800
Regeneration Technologies, Inc. * 400 2,900
Somanetics Corp. * 358 7,138
St. Jude Medical, Inc. * 3,400 127,874
Tektronix, Inc. 300 8,448
Varian Medical Systems, Inc. * 210 10,015
--------------
275,605
</Table>
See financial notes.
112 Laudus Funds Annual Report
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
INSURANCE 0.6%
Brown & Brown, Inc. 1,300 35,165
The Progressive Corp. 4,070 88,807
--------------
123,972
INTEGRATED OIL COMPANIES 0.1%
ConocoPhillips 400 27,340
IT HARDWARE 6.5%
Advanced Micro Devices, Inc. * 2,600 33,956
Altera Corp. * 3,300 65,967
Broadcom Corp., Class A * 4,100 131,487
Comverse Technology, Inc. * 1,500 32,025
HI/FN, Inc. * 300 1,821
Intel Corp. 19,760 378,009
Intervoice, Inc. * 500 3,320
Kulicke and Soffa Industries, Inc.
* 1,000 9,250
Linear Technology Corp. 4,700 148,473
Maxim Integrated Products, Inc. 4,000 117,600
Microchip Technology, Inc. 120 4,263
Microsemi Corp. * 1,000 20,810
National Semiconductor Corp. 2,000 48,280
Power-One, Inc. * 1,300 7,436
Powerwave Technologies, Inc. * 100 569
QUALCOMM, Inc. 7,400 315,684
Rackable Systems, Inc. * 500 8,485
Texas Instruments, Inc. 600 18,060
Video Display Corp. * 300 2,397
Virage Logic Corp. * 400 2,908
--------------
1,350,800
LAND & WATER TRANSPORTATION 1.8%
C.H. Robinson Worldwide, Inc. 900 42,975
Heartland Express, Inc. 1,400 22,232
Landstar Systems, Inc. 200 9,168
Sirva, Inc. * 1,100 3,927
United Parcel Service, Inc., Class
B 4,250 297,925
--------------
376,227
MAINFRAME & MINICOMPUTERS 1.5%
Dell, Inc. * 13,400 311,014
METAL PRODUCTS & MACHINERY 1.2%
Actuant Corp., Class A 400 20,324
Blount International, Inc. * 100 1,245
Dover Corp. 500 24,405
ITT Corp. 1,000 60,320
Joy Global, Inc. 800 34,320
Rockwell Automation, Inc. 1,000 59,870
Shiloh Industries, Inc. * 300 3,384
Zebra Technologies Corp., Class A * 900 34,749
--------------
238,617
MISCELLANEOUS FINANCE 1.5%
E*TRADE Financial Corp. * 6,500 137,930
First Albany Cos., Inc. * 300 480
GAMCO Investors, Inc., Class A 200 8,666
Legg Mason, Inc. 1,400 131,894
Nasdaq Stock Market, Inc. * 1,000 29,410
--------------
308,380
OIL & COAL RESOURCES 1.3%
Clayton Williams Energy, Inc. * 300 8,511
Energy Partners, Ltd. * 500 9,075
EOG Resources, Inc. 410 29,250
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Foundation Coal Holdings, Inc. 200 6,868
Massey Energy Co. 1,100 26,389
Plains Exploration & Production Co.
* 700 31,598
Southwestern Energy Co. * 1,200 49,176
Ultra Petroleum Corp. * 2,140 113,698
--------------
274,565
OIL DISTRIBUTION 0.1%
Cheniere Energy, Inc. * 800 24,920
OIL DRILLING & SERVICES 0.0%
TGC Industries, Inc. * 300 2,583
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.5%
Eastman Kodak Co. 1,470 33,163
Intermec, Inc. * 1,000 22,340
SanDisk Corp. * 1,200 52,560
--------------
108,063
PUBLISHING, BROADCASTING & CINEMA 0.6%
John Wiley & Sons, Inc., Class A 700 26,432
Outdoor Channel Holdings, Inc. * 500 5,110
Sun-Times Media Group, Inc., Class
A 1,200 5,952
The Interpublic Group of Cos., Inc.
* 1,200 14,772
Viacom, Inc., Class B * 1,200 49,332
XM Satellite Radio Holdings, Inc.,
Class A * 1,900 24,548
--------------
126,146
REAL ESTATE INVESTMENT TRUSTS 1.6%
Boston Properties, Inc. 700 82,180
Equity Residential 2,900 139,867
Plum Creek Timber Co., Inc. 2,000 78,840
Regency Centers Corp. 325 27,154
--------------
328,041
RESTAURANTS, HOTELS & THEATERS 0.7%
Boyd Gaming Corp. 700 33,348
Darden Restaurants, Inc. 100 4,119
Isle of Capri Casinos, Inc. * 500 12,810
Maui Land & Pineapple Co, Inc. * 200 7,230
Max & Erma's Restaurants, Inc. * 200 1,800
MoneyGram International, Inc. 980 27,205
Nevada Gold & Casinos, Inc. * 400 804
Pinnacle Entertainment, Inc. * 600 17,442
Scientific Games, Class A * 700 22,981
Texas Roadhouse, Inc., Class A * 1,000 14,250
--------------
141,989
RETAIL 4.6%
Amazon.com, Inc. * 4,200 167,118
Barnes & Noble, Inc. 700 27,615
Bed, Bath & Beyond, Inc. * 1,400 56,238
Coldwater Creek, Inc. * 1,100 22,308
eBay, Inc. * 10,500 348,075
Fastenal Co. 1,000 35,050
Gaiam, Inc., Class A * 100 1,574
Office Depot, Inc. * 900 31,626
PetMed Express, Inc. * 400 4,740
Shoe Pavilion, Inc. * 300 1,860
The Gap, Inc. 4,000 68,840
The Home Depot, Inc. 2,410 88,543
The Pantry, Inc. * 400 18,088
Tiffany & Co. 140 6,367
</Table>
See financial notes.
Laudus Funds Annual Report 113
LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Walgreen Co. 1,600 73,424
Whole Foods Market, Inc. 90 4,037
--------------
955,503
SOAPS & COSMETICS 0.4%
Johnson & Johnson 1,500 90,390
SOFTWARE 4.8%
Adept Technology, Inc. * 200 1,550
Adobe Systems, Inc. * 3,100 129,270
Aptimus, Inc. * 200 680
Autobytel, Inc. * 700 2,478
Autodesk, Inc. * 2,600 97,760
Automatic Data Processing, Inc. 1,200 58,080
CACI International, Inc., Class A * 500 23,430
Citrix Systems, Inc. * 200 6,406
Concur Technologies, Inc. * 600 10,476
Electronic Arts, Inc. * 2,900 146,044
First Data Corp. 4,100 110,290
Innotrac Corp. * 300 807
Lionbridge Technologies, Inc. * 1,000 5,090
Logility, Inc. * 100 814
Mediware Information Systems * 300 2,718
Microsoft Corp. 9,600 267,552
MSC.Software Corp. * 700 9,625
National Instruments Corp. 1,000 26,230
NAVTEQ Corp. * 900 31,050
PLATO Learning, Inc. * 100 420
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Q-Med, Inc. * 410 1,816
Radiant Systems, Inc. * 500 6,515
Red Hat, Inc. * 480 11,007
Verisign, Inc. * 1,600 40,192
Websense Inc * 200 4,598
--------------
994,898
TEXTILES & APPAREL 0.4%
Cintas Corp. 1,000 36,100
K-Swiss, Inc., Class A 600 16,212
The Timberland Co., Class A * 800 20,824
--------------
73,136
WHOLESALE 0.6%
Brightpoint, Inc. * 380 4,347
Express Scripts, Inc. * 900 72,648
H&E Equipment Services, Inc. * 500 10,750
Pomeroy IT Solutions, Inc. * 100 902
WESCO International, Inc. * 500 31,390
--------------
120,037
--------------
9,820,500
--------------
TOTAL SHORT SALES (PROCEEDS $18,939,163) 19,721,130
- --------------------------------------------------------------------------------
END OF SHORT SALE POSITIONS.
</Table>
* Non-income producing security.
(b) Fair-valued by Management.
See financial notes.
114 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS as of March 31, 2007
<Table>
<Caption>
COST/PROCEEDS VALUE
HOLDINGS BY CATEGORY ($) ($)
- -----------------------------------------------------------------
93.0% COMMON STOCK 247,794,675 302,181,168
5.6% SHORT-TERM INVESTMENT 18,114,959 18,114,959
- -----------------------------------------------------------------
98.6% TOTAL INVESTMENTS 265,909,634 320,296,127
(93.5)% SHORT SALES (305,578,183) (303,890,759)
93.3% DEPOSITS WITH BROKER
AND CUSTODIAN BANK FOR
SECURITIES SOLD SHORT 303,267,401 303,267,401
1.6% OTHER ASSETS AND
LIABILITIES 5,322,345
- -----------------------------------------------------------------
100.0% NET ASSETS 324,995,114
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMON STOCK (A) 93.0% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 1.6%
- -----------------------------------------------------------------
Corn Products International,
Inc. 33,730 1,200,451
Flowers Foods, Inc. 2,745 82,817
J & J Snack Foods Corp. 4,390 173,361
Monterey Gourmet Foods, Inc. * 12,820 54,870
National Beverage Corp. * 5,840 102,433
Omega Protein Corp. * 12,520 87,390
Penford Corp. 2,796 56,311
Ralcorp Holdings, Inc. * 23,140 1,487,902
Seaboard Corp. 400 904,000
Seneca Foods Corp., Class B * 3,200 89,792
Tasty Baking Co. 8,210 71,673
The Pepsi Bottling Group, Inc. 16,480 525,547
The Topps Co., Inc. 34,942 339,636
---------------
5,176,183
AIRLINES 1.0%
- -----------------------------------------------------------------
ABX Air, Inc. * 1,250 8,562
Air Methods Corp. * 840 20,177
AirNet Systems, Inc. * 2,060 6,613
Alaska Air Group, Inc. * 36,170 1,378,077
Mesa Air Group, Inc. * 35,200 265,056
Republic Airways Holdings, Inc.
* 13,700 314,552
SkyWest, Inc. 49,547 1,329,346
---------------
3,322,383
AUTOS 0.5%
- -----------------------------------------------------------------
Aftermarket Technology Corp. * 19,792 480,550
Autoliv, Inc. 18,140 1,035,975
Noble International, Ltd. 626 10,504
Spartan Motors, Inc. 7,173 166,485
Supreme Industries, Inc., Class
A 12,630 73,886
---------------
1,767,400
BANKS & CREDIT INSTITUTIONS 3.0%
- -----------------------------------------------------------------
1st Constitution Bancorp * 169 3,061
1st Independence Financial
Group, Inc. 60 1,015
1st Source Corp. 3,783 99,001
Advanta Corp., Class A 5,524 221,402
Advanta Corp., Class B 1,987 87,110
American Community Bancshares,
Inc. 4,740 53,562
American National Bankshares,
Inc. 4,800 109,872
Ameris Bancorp 2,735 66,953
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
ASTA Funding, Inc. 7,914 341,727
Banco Latinoamericano de
Exportaciones, S.A., Class E 5,020 83,533
BankUnited Financial Corp.,
Class A 2,349 49,822
Berkshire Hills Bancorp, Inc. 150 5,047
Beverly Hills Bancorp, Inc. 20,750 157,700
BNCCorp, Inc. * 498 8,192
BOE Financial Services of
Virginia, Inc. 455 14,223
Britton & Koontz Capital Corp. 200 3,800
C&F Financial Corp. 130 5,713
Cadence Financial Corp. 56 1,120
Carver Bancorp, Inc. 400 6,700
Central Bancorp, Inc. 450 13,702
Centrue Financial Corp. 1,630 31,573
CFS Bancorp, Inc. 1,865 27,956
Citizens First Bancorp, Inc. 329 7,495
Codorus Valley Bancorp, Inc. 2,559 48,698
Community Bank Shares of
Indiana, Inc. 2,209 47,991
Community Capital Corp. 480 9,694
Community Financial Corp. 3,600 43,704
Community Shores Bank Corp. * 10 124
Community West Bancshares 808 12,783
CompuCredit Corp. * 6,786 211,859
Consumer Portfolio Services,
Inc. * 20,872 128,363
Corus Bankshares, Inc. 17,485 298,294
Cowlitz Bancorp * 100 1,700
Delta Financial Corp. 15,150 125,290
Dollar Financial Corp. * 12,650 320,045
Downey Financial Corp. 330 21,298
ECB Bancorp, Inc. 3,162 105,927
Exchange National Bancshares,
Inc. 420 15,204
Farmers Capital Bank Corp. 240 7,051
Federal Agricultural Mortgage
Corp., Class C 7,430 202,096
Fidelity Southern Corp. 510 9,710
First Bancshares, Inc. * 200 3,375
First BancTrust Corp. 400 4,732
First Capital, Inc. 1,632 29,343
First Charter Corp. 240 5,160
First Citizens BancShares, Inc.,
Class A 1,650 331,650
First Defiance Financial Corp. 2,068 59,352
First Federal Bancshares of
Arkansas, Inc. 40 946
First Federal Bankshares, Inc. 100 2,145
First Financial Service Corp. 110 3,156
First Indiana Corp. 13,300 290,605
First Keystone Finl, Inc. * 220 4,334
First M&F Corp. 42 773
First Mariner Bancorp, Inc. * 3,091 46,983
First Merchants Corp. 211 5,005
First Niles Financial, Inc. 99 1,183
First Place Financial Corp. 4,915 105,427
First United Corp. 2,375 53,437
First West Virginia Bancorp,
Inc. 10 203
FNB Corp. of North Carolina 5,020 84,085
FNB Corp. of Virginia 100 3,583
</Table>
See financial notes.
Laudus Funds Annual Report 115
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
FNB Financial Services Corp. 7,102 108,874
Franklin Bank Corp. * 21,424 382,847
GB&T Bancshares, Inc. 490 8,884
Great Pee Dee Bancorp, Inc. 1 15
Great Southern Bancorp, Inc. 10,445 305,830
Greene County Bancshares, Inc. 100 3,391
Guaranty Federal Bancshares,
Inc. 190 5,567
Habersham Bancorp, Inc. 1,250 28,687
HF Financial Corp. 770 14,052
Hopfed Bancorp, Inc. 60 958
Horizon Bancorp 2,800 75,348
Intervest Bancshares Corp. * 5,600 160,720
Irwin Financial Corp. 5,030 93,759
ITLA Capital Corp. 4,800 249,696
Lakeland Financial Corp. 200 4,540
Leesport Financial Corp. 4,662 100,792
Lincoln Bancorp 8 152
LSB Financial Corp. 1,504 39,766
Macatawa Bank Corp. 280 5,152
MASSBANK Corp. 400 13,120
Meta Financial Group, Inc. 1,100 34,650
MFB Corp. 600 20,160
MidWestOne Financial Group,
Inc. 3,100 54,157
MutualFirst Financial, Inc. 2,810 55,301
National Bankshares, Inc. 999 23,686
NBT Bancorp, Inc. 6,219 145,711
North Central Bancshares, Inc. 1,867 74,848
North Valley Bancorp 2,800 70,364
Northeast Bancorp 270 5,036
Northrim BanCorp, Inc. 1,050 31,027
Northway Financial, Inc. 400 13,058
OceanFirst Financial Corp. 4,544 78,838
Pacific Premier Bancorp, Inc. * 400 4,320
Parke Bancorp, Inc. 2,223 40,859
Parkvale Financial Corp. 630 18,402
Pinnacle Bancshares, Inc. 100 1,511
Provident Community Bancshares,
Inc. 50 1,043
Provident Financial Holdings,
Inc. 3,189 87,761
Renasant Corp. 1 12
Republic First Bancorp, Inc. * 6,385 82,239
River Valley Bancorp 393 7,015
Security Bank Corp. 16,214 326,550
Shore Financial Corp. 30 420
Simmons First National Corp.,
Class A 2,754 82,813
South Street Financial Corp. 100 855
Southern Missouri Bancorp, Inc. 130 2,009
Southwest Bancorp, Inc. 5,700 146,433
Sterling Financial Corp. 1,670 52,087
Superior Bancorp * 9,910 107,028
Synovus Financial Corp. 5,500 177,870
TF Financial Corp. 2,540 77,470
The First Marblehead Corp. 21,370 959,299
The Washington Savings Bank,
F.S.B. 6,400 54,400
TierOne Corp. 16,946 458,220
Tower Financial Corp. 300 5,052
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
United Bancshares, Inc. 10 162
United Community Financial
Corp. 6,933 76,610
United Security Bancshares,
Inc. 4,819 141,823
Unity Bancorp, Inc. 2,710 32,141
Vineyard National Bancorp Co. 9,700 223,488
Wainwright Bank & Trust Co. 4,841 61,868
Willow Financial Bancorp, Inc. 367 4,734
WSFS Financial Corp. 4,300 277,264
---------------
9,766,331
BASIC MINERALS & METALS 4.0%
- -----------------------------------------------------------------
Allegheny Technologies, Inc. 33,000 3,520,770
Chaparral Steel Co. 840 48,863
Cleveland-Cliffs, Inc. 5,480 350,775
CommScope, Inc. * 410 17,589
Freeport-McMoran Copper & Gold,
Inc., Class B 8,280 548,053
Friedman Industries, Inc. 2,180 20,143
Precision Castparts Corp. 16,293 1,695,287
Southern Copper Corp. 29,740 2,131,168
Steel Dynamics, Inc. 380 16,416
Superior Essex, Inc. * 3,057 105,986
Synalloy Corp. 2,600 72,592
United States Steel Corp. 42,920 4,256,376
Universal Stainless & Alloy
Products, Inc. * 1,399 66,411
---------------
12,850,429
BEER, LIQUOR, & TOBACCO 0.1%
- -----------------------------------------------------------------
MGP Ingredients, Inc. 1,130 23,018
The Boston Beer Co., Inc. * 5,200 173,420
---------------
196,438
BIOTECHNOLOGY 1.6%
- -----------------------------------------------------------------
Anika Therapeutics, Inc. * 9,563 118,103
Applera Corp. -- Celera Group * 59,588 846,150
Celgene Corp. * 73,438 3,852,558
Digene Corp. * 4,700 199,327
Harvard Bioscience, Inc. * 30,270 145,901
---------------
5,162,039
CELLULAR & WIRELESS 1.2%
- -----------------------------------------------------------------
NII Holdings, Inc. * 52,837 3,919,449
USA Mobility, Inc. * 4,280 85,300
---------------
4,004,749
CHEMICALS & RUBBER 2.7%
- -----------------------------------------------------------------
A. Schulman, Inc. 11,742 276,642
Bairnco Corp. 2,660 35,777
CF Industries Holdings, Inc. 8,050 310,327
FMC Corp. 29,780 2,246,305
Hercules, Inc. * 98,914 1,932,780
Innospec, Inc. 10,400 599,456
Pioneer Cos., Inc. * 190 5,252
Stepan Co. 1,700 44,625
The Sherwin-Williams Co. 51,800 3,420,872
---------------
8,872,036
</Table>
See financial notes.
116 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
COMMERCIAL AIRCRAFT & COMPONENTS 0.1%
- -----------------------------------------------------------------
Ducommun, Inc. * 5,410 139,199
Triumph Group, Inc. 3,240 179,302
---------------
318,501
COMMUNICATIONS UTILITIES 1.2%
- -----------------------------------------------------------------
Atlantic Tele-Network, Inc. 7,150 186,830
CT Communications, Inc. 14,797 356,608
D&E Communications, Inc. 13,095 174,425
Gilat Satellite Networks Ltd. * 32,999 272,242
Golden Telecom, Inc. 10,134 561,221
HickoryTech Corp. 1,740 12,058
Mediacom Communications Corp.,
Class A * 55,000 447,700
PAETEC Holding Corp. * 1,003 10,511
Playboy Enterprises, Inc., Class
A * 20,310 205,131
Premiere Global Services, Inc. * 69,900 784,278
United Online, Inc. 57,106 801,197
---------------
3,812,201
CONSTRUCTION & HOMEBUILDING 1.1%
- -----------------------------------------------------------------
Comfort Systems USA, Inc. 39,250 470,215
Granite Construction, Inc. 19,331 1,068,231
Horizon Offshore, Inc. * 1,840 26,606
Infrasource Services, Inc. * 11,950 364,833
Insituform Technologies, Inc.,
Class A * 24,802 515,634
Meadow Valley Corp. * 3,780 48,989
Palm Harbor Homes, Inc. * 7,620 109,271
Perini Corp. * 17,200 633,992
Skyline Corp. 6,700 226,058
U.S. Home Systems, Inc. * 420 5,355
---------------
3,469,184
CONSTRUCTION MATERIALS 0.1%
- -----------------------------------------------------------------
Ameron International Corp. 1,500 98,790
Continental Materials Corp. * 800 22,840
Martin Marietta Materials, Inc. 210 28,392
MDU Resources Group, Inc. 2,000 57,480
Oil-Dri Corp. of America 2,050 34,235
Patrick Industries, Inc. * 1,880 22,541
Rock of Ages Corp. * 1,170 5,757
U.S. Concrete, Inc. * 360 2,815
United States Lime & Minerals,
Inc. * 100 3,076
Vulcan Materials Co. 1,000 116,480
---------------
392,406
CONSUMER DURABLES 0.2%
- -----------------------------------------------------------------
Arctic Cat, Inc. 13,900 270,911
Universal Electronics, Inc. * 10,789 300,582
Whirlpool Corp. 100 8,491
---------------
579,984
DRUGS & PHARMACEUTICALS 1.8%
- -----------------------------------------------------------------
Dade Behring Holdings, Inc. 1,850 81,123
Geopharma, Inc. * 3,530 15,532
King Pharmaceuticals, Inc. * 135,250 2,660,367
Natural Alternative
International, Inc. * 520 4,170
NBTY, Inc. * 38,430 2,038,327
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Nutraceutical International
Corp. * 11,800 194,700
Perrigo Co. 35,225 622,073
Schiff Nutrition International,
Inc. * 8,650 59,426
Sciele Pharma, Inc. * 12,314 291,596
Theragenics Corp. * 1,480 9,265
---------------
5,976,579
ELECTRIC UTILITIES 1.5%
- -----------------------------------------------------------------
Alliant Energy Corp. 2,300 103,086
Central Vermont Public Service
Corp. 200 5,764
CH Energy Group, Inc. 900 43,821
Northeast Utilities 66,293 2,172,421
OGE Energy Corp. 100 3,880
Pinnacle West Capital Corp. 23,500 1,133,875
Portland General Electric Co. 1,500 43,800
Puget Energy, Inc. 510 13,097
Unisource Energy Corp. 1,740 65,337
Unitil Corp. 1,100 29,887
Westar Energy, Inc. 41,500 1,142,080
---------------
4,757,048
FINANCIAL INVESTMENTS 1.4%
- -----------------------------------------------------------------
Aaron Rents, Inc. 8,890 235,052
Ampal-American Israel Corp.,
Class A * 1,860 8,165
California First National
Bancorp 3,243 42,645
Electro Rent Corp. * 4,474 64,426
Enstar Group Ltd. * 130 12,823
ePlus, Inc. * 3,652 38,894
Jackson Hewitt Tax Service,
Inc. 18,034 580,334
KMG America Corp. * 22,520 104,268
Macrovision Corp. * 15,892 398,095
PICO Holdings, Inc. * 6,277 268,091
SRS Labs, Inc. * 4,120 57,392
Trinity Industries, Inc. 57,330 2,403,273
United Rentals, Inc. * 7,752 213,180
UTEK Corp. 2,750 36,300
Willis Lease Finance Corp. * 6,630 68,355
---------------
4,531,293
FOREST PRODUCTS & PAPER 0.1%
- -----------------------------------------------------------------
CSS Industries, Inc. 390 14,617
Lydall, Inc. * 14,960 237,715
Nashua Corp. * 220 1,958
Packaging Corp. of America 2,200 53,680
---------------
307,970
FURNITURE & HOUSEHOLD ITEMS 1.7%
- -----------------------------------------------------------------
A.T. Cross Co., Class A * 300 2,640
Acuity Brands, Inc. 200 10,888
AEP Industries, Inc. * 4,064 174,752
American Biltrite, Inc. * 1,940 18,061
AZZ, Inc. * 4,380 183,960
Bassett Furniture Industries,
Inc. 4,350 64,032
Channell Commercial Corp. * 6,023 23,972
Chase Corp. 1,600 52,016
Chromcraft Revington, Inc. * 6,140 59,067
Communications Systems, Inc. 4,200 43,596
Craftmade International, Inc. 410 6,187
GameTech International, Inc. * 1,160 14,175
</Table>
See financial notes.
Laudus Funds Annual Report 117
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Genlyte Group, Inc. * 3,190 225,054
Herman Miller, Inc. 19,438 650,979
Hooker Furniture Corp. 3,279 65,744
JAKKS Pacific, Inc. * 16,891 403,695
K2, Inc. * 42,600 515,034
La-Z-Boy, Inc. 44,600 552,148
Mity Enterprises, Inc. * 564 10,772
Movado Group, Inc. 15,420 454,119
National Presto Industries,
Inc. 1,320 81,365
Preformed Line Products Co. 500 18,495
RC2 Corp. * 3,590 145,000
Steelcase, Inc., Class A 74,100 1,473,849
Thomas & Betts Corp. * 4,154 202,798
Tredegar Corp. 860 19,599
Virco Manufacturing Corp. * 1,310 8,843
---------------
5,480,840
GAS & OTHER PUBLIC UTILITIES 0.4%
- -----------------------------------------------------------------
Artesian Resources Corp., Class
A 645 13,287
Florida Public Utilities Co. 1,800 22,320
Industrial Services of America,
Inc. * 770 5,120
Middlesex Water Co. 590 10,850
Nicor, Inc. 9,330 451,759
SJW Corp. 8,380 339,222
Waste Industries USA, Inc. 5,030 138,174
WGL Holdings, Inc. 4,760 152,225
---------------
1,132,957
GOVERNMENT AIRCRAFT & DEFENSE 0.1%
- -----------------------------------------------------------------
Armor Holdings, Inc. * 2,920 196,603
Herley Industries, Inc. * 132 2,062
---------------
198,665
HEALTH CARE & HOSPITAL 1.4%
- -----------------------------------------------------------------
Almost Family, Inc. * 3,800 94,620
Amedisys, Inc. * 1,400 45,402
American Shared Hospital
Services 3,400 20,060
Gentiva Health Services, Inc. * 13,845 279,254
Hanger Orthopedic Group, Inc. * 18,400 214,728
Health Net, Inc. * 3,236 174,129
Humana, Inc. * 44,600 2,587,692
IntegraMed America, Inc. * 4,925 73,629
Laboratory Corp. of America
Holdings * 2 145
Manor Care, Inc. 3,132 170,256
MedCath Corp. * 8,901 242,997
MEDTOX Scientific, Inc. * 3,190 58,696
National Dentex Corp. * 6,019 84,748
National Healthcare Corp. 790 40,274
NovaMed, Inc. * 14,098 91,355
RehabCare Group, Inc. * 80 1,270
Res-Care, Inc. * 20,969 366,957
Stratagene Corp. * 1,220 9,906
---------------
4,556,118
INFORMATION & SERVICES 5.2%
- -----------------------------------------------------------------
Ablest, Inc. * 2,100 15,509
ABM Industries, Inc. 2,680 70,725
Albany Molecular Research, Inc.
* 23,350 229,998
Barrett Business Services, Inc. 7,320 168,726
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Bioanalytical Systems, Inc. * 1,250 8,413
Carriage Services, Inc. * 1,770 14,319
Cass Information Systems, Inc. 990 33,422
CBIZ, Inc. * 1,030 7,313
CDI Corp. 12,579 363,785
CompuDyne Corp. * 2,460 14,932
Convergys Corp. * 39,390 1,000,900
CPI Corp. 5,570 292,481
Ecology & Environment, Inc. 3,030 35,996
Exponent, Inc. * 14,600 291,270
Forrester Research, Inc. * 8,458 239,869
GP Strategies Corp. * 12,690 115,479
IAC/InterActive Corp. * 25,400 957,834
ICT Group, Inc. * 1,395 24,413
Infinity Pharmaceuticals, Inc. * 6,150 74,046
Kelly Services, Inc., Class A 17,600 566,720
Kendle International, Inc. * 12,687 450,642
Kforce, Inc. * 30,300 417,231
Layne Christensen Co. * 4,740 172,631
Manpower, Inc. 1,940 143,114
Metal Management, Inc. 20,258 935,920
Midas, Inc. * 6,520 140,636
Monro Muffler Brake, Inc. 10,520 369,252
MPS Group, Inc. * 80,390 1,137,518
National Medical Health Card
Systems, Inc. * 1,930 29,857
National Technical Systems, Inc.
* 2,370 14,386
Nobel Learning Communities, Inc.
* 40 606
PAREXEL International Corp. * 23,700 852,489
PDI, Inc. * 13,870 132,042
RCM Technologies, Inc. * 12,100 86,273
Refac Optical Group * 140 837
Spherion Corp. * 47,730 420,979
SRI/Surgical Express, Inc. * 100 504
Stewart Enterprises, Inc., Class
A 95,353 768,545
TeleTech Holdings, Inc. * 29,570 1,084,923
The Dun & Bradstreet Corp. 24,580 2,241,696
The Geo Group, Inc. * 6,360 288,235
URS Corp. * 45,300 1,929,327
Viad Corp. 6,550 252,830
Volt Information Sciences, Inc.
* 12,000 314,280
VSE Corp. 2,395 98,578
---------------
16,809,481
INSTRUMENTS 4.6%
- -----------------------------------------------------------------
1-800 CONTACTS, Inc. * 370 6,216
Aetrium, Inc. * 1,200 4,464
Allied Healthcare Products, Inc.
* 1,942 11,759
Angeion Corp. * 2,596 38,161
Astro-Med, Inc. 3,420 37,620
Atrion Corp. 280 25,710
Bio-Rad Laboratories, Inc.,
Class A * 14,590 1,018,966
Bruker BioSciences Corp. * 33,708 354,608
Cardiac Science Corp. * 8,408 76,933
Cholestech Corp. * 5,360 92,406
Coherent, Inc. * 24,710 784,295
CyberOptics Corp. * 460 6,417
Datascope Corp. 9,504 343,950
Edwards Lifesciences Corp. * 800 40,560
Enpath Medical, Inc. * 210 2,100
</Table>
See financial notes.
118 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Esterline Technologies Corp. * 22,800 936,396
FEI Co. * 14,924 538,159
Frequency Electronics, Inc. 6,910 75,457
Hurco Cos., Inc. * 6,570 281,524
Immucor, Inc. * 47,064 1,385,094
Input/Output, Inc. * 42,320 583,170
IntriCon Corp. * 850 5,015
K-Tron International, Inc. * 2,300 164,979
Keithley Instruments, Inc. 11,400 174,306
Kewaunee Scientific Corp. 1,840 19,596
Mesa Laboratories, Inc. 100 1,896
MOCON, Inc. 4,900 63,014
New Brunswick Scientific Co.,
Inc. * 520 4,196
O.I. Corp. 1,200 13,770
Oakley, Inc. 22,330 449,726
Orthofix International N.V. * 7,332 374,299
Perceptron, Inc. * 6,170 55,530
PerkinElmer, Inc. 101,550 2,459,541
Schmitt Industries, Inc. * 769 5,860
Sonic Innovations, Inc. * 19,730 166,719
Span-America Medical Systems,
Inc. 2,600 41,366
Teleflex, Inc. 34,930 2,377,685
Tollgrade Communications, Inc. * 13,886 174,408
Varian, Inc. * 1,740 101,372
Viasys Healthcare, Inc. * 20,700 703,593
Vicon Industries, Inc. * 80 796
Waters Corp. * 13,560 786,480
Zoll Medical Corp. * 1,080 28,782
Zygo Corp. * 17,250 276,172
---------------
15,093,066
INSURANCE 7.5%
- -----------------------------------------------------------------
Alleghany Corp. * 51 19,054
American Equity Investment Life
Holding Co. 9,072 119,115
American Financial Group, Inc. 46,080 1,568,563
American National Insurance Co. 3,081 394,152
American Safety Insurance
Holdings Ltd. * 5,000 95,300
Arch Capital Group Ltd. * 34,769 2,371,593
Aspen Insurance Holdings Ltd. 67,172 1,760,578
CNA Financial Corp. * 44,530 1,918,798
Crawford & Co., Class B 10,750 62,350
Endurance Specialty Holdings
Ltd. 59,994 2,144,186
Everest Re Group Ltd. 13,700 1,317,529
FPIC Insurance Group, Inc. * 9,000 402,030
Hallmark Financial Services,
Inc. * 880 10,595
HCC Insurance Holdings, Inc. 73,291 2,257,363
Horace Mann Educators Corp. 900 18,495
IPC Holdings Ltd. 56,652 1,634,410
Kansas City Life Insurance Co. 310 13,950
Max Re Capital Ltd. 11,650 296,842
Meadowbrook Insurance Group,
Inc. * 1,120 12,309
Mercer Insurance Group, Inc. 1,890 37,592
MGIC Investment Corp. 560 32,995
National Western Life Insurance
Co., Class A * 950 232,560
NYMAGIC, Inc. 2,290 93,547
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Old Republic International
Corp. 11,750 259,910
PartnerRe Ltd. 35,400 2,426,316
Presidential Life Corp. 855 16,861
Radian Group, Inc. 22,300 1,223,824
Reinsurance Group of America,
Inc. 23,700 1,367,964
RenaissanceRe Holdings Ltd. 35,546 1,782,276
RTW, Inc. * 100 817
Unico American Corp. * 2,900 36,743
United America Indemnity Ltd.,
Class A * 11,055 256,476
Wesco Financial Corp. 600 276,000
---------------
24,461,093
INTEGRATED OIL COMPANIES 0.0%
- -----------------------------------------------------------------
Marathon Oil Corp. 113 11,168
IT HARDWARE 6.6%
- -----------------------------------------------------------------
American Technical Ceramics
Corp. * 4,470 62,088
AMIS Holdings, Inc. * 2,100 22,995
Amtech Systems, Inc. * 1,680 12,231
Avici Systems, Inc. * 2,910 33,232
Avocent Corp. * 17,501 472,002
AVX Corp. 45,095 685,444
Axcelis Technologies, Inc. * 10,841 82,825
CTS Corp. 25,780 356,280
Cymer, Inc. * 30,613 1,271,970
Digi International, Inc. * 20,507 260,439
EMS Technologies, Inc. * 14,519 279,781
Emulex Corp. * 6,380 116,690
Espey Manufacturing &
Electronics Corp. 1,200 23,580
Exar Corp. * 27,676 366,430
Flextronics International Ltd. * 3,450 37,743
Globecomm Systems, Inc. * 5,700 60,990
Harmonic, Inc. * 520 5,106
Harris Corp. 1,035 52,733
Imation Corp. 820 33,112
Integrated Device Technology,
Inc. * 148,697 2,292,908
International Rectifier Corp. * 55,440 2,118,363
L-3 Communications Holdings,
Inc. 40 3,499
Lattice Semiconductor Corp. * 39,446 230,759
LSI Logic Corp. * 263,491 2,750,846
MEMC Electronic Materials, Inc.
* 11,000 666,380
Merix Corp. * 21,500 176,730
Merrimac Industries, Inc. * 800 7,712
Micron Technology, Inc. * 192 2,319
MKS Instruments, Inc. * 35,200 898,304
Novellus Systems, Inc. * 50,071 1,603,274
Oplink Communications, Inc. * 15,759 283,189
Orbital Sciences Corp. * 54,400 1,019,456
Performance Technologies, Inc. * 3 15
Pericom Semiconductor Corp. * 7,205 70,465
RF Micro Devices, Inc. * 172,285 1,073,336
Rudolph Technologies, Inc. * 22,641 394,859
Semitool, Inc. * 21,370 277,810
SonicWALL, Inc. * 57,264 478,727
Spectrum Control, Inc. * 7,900 97,170
Standard Microsystems Corp. * 4,421 135,017
</Table>
See financial notes.
Laudus Funds Annual Report 119
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Symmetricom, Inc. * 17,210 142,843
Technitrol, Inc. 5,410 141,688
Tekelec * 4,963 73,998
Trans Lux Corp. 1,200 8,820
TriQuint Semiconductor, Inc. * 118,468 592,340
Vishay Intertechnology, Inc. * 107,390 1,501,312
White Electronic Designs Corp. * 5,599 37,289
---------------
21,315,099
LAND & WATER TRANSPORTATION 2.0%
- -----------------------------------------------------------------
B & H Ocean Carriers Ltd. * 6,070 111,081
Covenant Transport, Inc., Class
A * 2,455 27,054
Frozen Food Express Industries,
Inc. 343 2,854
GulfMark Offshore, Inc. * 16,175 706,039
Hub Group, Inc., Class A * 13,238 383,770
P.A.M. Transportation Services,
Inc. * 5,368 110,688
Pacer International, Inc. 31,551 849,984
Royal Caribbean Cruises Ltd. 1,620 68,299
Ryder System, Inc. 44,070 2,174,414
Saia, Inc. * 14,144 335,920
SEACOR Holdings, Inc. * 12,830 1,262,472
Trico Marine Services, Inc. * 6,336 236,079
U.S. Xpress Enterprises, Inc.,
Class A * 9,369 161,709
---------------
6,430,363
MAINFRAME & MINICOMPUTERS 0.0%
- -----------------------------------------------------------------
Omnicell, Inc. * 3,900 81,588
METAL PRODUCTS & MACHINERY 4.0%
- -----------------------------------------------------------------
Acme United Corp. 360 5,004
AGCO Corp. * 73,980 2,735,041
Allied Motion Technologies, Inc.
* 4,871 31,126
Astec Industries, Inc. * 16,047 645,892
Asyst Technologies, Inc. * 29,209 205,339
Bonso Electronic International,
Inc. 2,830 11,575
Electro Scientific Industries,
Inc. * 14,944 287,522
EnPro Industries, Inc. * 20,400 735,420
Evans & Sutherland Computer
Corp. * 2,600 8,190
FSI International, Inc. * 33,200 148,404
Gehl Co. * 11,100 281,718
Gerber Scientific, Inc. * 21,619 229,377
Goodman Global, Inc. * 920 16,210
Hardinge, Inc. 3,900 102,024
Kadant, Inc. * 14,100 357,576
Kennametal, Inc. 19,760 1,335,974
Lifetime Brands, Inc. 11,064 231,127
Lincoln Electric Holdings, Inc. 500 29,780
Material Sciences Corp. * 15,780 157,484
MFRI, Inc. * 100 1,854
Newport Corp. * 36,797 602,367
NN, Inc. 10,089 126,012
P & F Industries, Inc., Class A
* 700 8,764
Q.E.P. Co., Inc. * 2,240 13,462
Regal Beloit Corp. 14,620 678,076
Robbins & Myers, Inc. 6,290 234,554
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SPX Corp. 4,740 332,748
Standex International Corp. 6,700 191,017
Tennant Co. 6,400 201,536
Terex Corp. * 16,966 1,217,480
The L.S. Starrett Co., Class A 160 2,880
Twin Disc, Inc. 540 23,058
Varian Semiconductor Equipment
Associates, Inc. * 4,002 213,627
Veeco Instruments, Inc. * 29,700 579,150
Velcro Industries N.V. 100 1,729
Wabtec Corp. 1,100 37,939
Watts Water Technologies, Inc.,
Class A 26,089 992,165
---------------
13,013,201
MISCELLANEOUS FINANCE 2.5%
- -----------------------------------------------------------------
A.G. Edwards, Inc. 44,700 3,092,346
Chicago Mercantile Exchange
Holdings, Inc., Class A 259 137,907
Cohen & Steers, Inc. 7,876 339,298
Knight Capital Group, Inc.,
Class A * 98,800 1,564,992
Raymond James Financial, Inc. 70,300 2,092,128
SEI Investments Co. 100 6,023
SWS Group, Inc. 19,365 480,446
Value Line, Inc. 300 14,340
Waddell & Reed Financial, Inc.,
Class A 12,020 280,306
---------------
8,007,786
OIL & COAL RESOURCES 1.0%
- -----------------------------------------------------------------
Callon Petroleum Co. * 18,044 244,857
Mariner Energy, Inc. * 53,010 1,014,081
PrimeEnergy, Corp. * 202 11,748
Rosetta Resources, Inc. * 16,190 332,543
Teton Energy Corp. * 2,700 13,068
Unit Corp. * 35,117 1,776,569
VAALCO Energy, Inc. * 710 3,678
---------------
3,396,544
OIL DISTRIBUTION 0.8%
- -----------------------------------------------------------------
Adams Resources & Energy, Inc. 3,383 124,021
Holly Corp. 780 46,254
Tesoro Corp. 18,525 1,860,466
Western Refining, Inc. 16,120 629,002
World Fuel Services Corp. 980 45,335
---------------
2,705,078
OIL DRILLING & SERVICES 3.2%
- -----------------------------------------------------------------
Basic Energy Services, Inc. * 7,620 177,546
Bronco Drilling Co., Inc. * 14,900 246,893
Dawson Geophysical Co. * 1,570 77,762
ENSCO International, Inc. 64,360 3,501,184
Global Industries Ltd. * 9,420 172,292
Helmerich & Payne, Inc. 16,615 504,099
Rowan Cos., Inc. 26,937 874,645
Superior Energy Services, Inc. * 65,690 2,264,334
Tidewater, Inc. 46,300 2,712,254
---------------
10,531,009
</Table>
See financial notes.
120 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.7%
- -----------------------------------------------------------------
Baldwin Technology Co., Inc.,
Class A * 15,900 79,500
Brocade Communications Systems,
Inc. * 78,602 748,291
Concord Camera Corp. * 1,080 5,044
Komag, Inc. * 24,200 792,066
Printronix, Inc. 1,150 15,928
STEC, Inc. * 42,749 300,953
VeriFone Holdings, Inc. * 13,150 482,999
---------------
2,424,781
PUBLISHING, BROADCASTING & CINEMA 1.4%
- -----------------------------------------------------------------
Alloy, Inc. * 5,330 63,320
American Greetings Corp., Class
A 24,320 564,467
Bowne & Co., Inc. 8,700 136,851
Champion Industries, Inc. 1,540 12,720
Consolidated Graphics, Inc. * 9,900 733,095
Franklin Covey Co. * 19,150 151,285
Media General, Inc., Class A 11,940 455,630
Monster Worldwide, Inc. * 4,748 224,913
Paxar Corp. * 26,590 763,133
Regent Communications, Inc. * 4,481 14,429
Saga Communications, Inc., Class
A * 18,780 182,729
Scholastic Corp. * 31,991 994,920
Source Interlink Cos., Inc. * 33,301 223,450
The Standard Register Co. 410 5,187
Tufco Technologies, Inc. * 221 1,806
---------------
4,527,935
REAL ESTATE DEVELOPMENT 1.0%
- -----------------------------------------------------------------
AMREP Corp. * 1,130 87,293
Avatar Holdings, Inc. * 3,864 276,044
Griffin Land & Nurseries, Inc. * 710 25,205
ILX Resorts, Inc. 1,900 17,670
J.W. Mays, Inc. * 2,600 55,900
Patriot Transportation Holding,
Inc. * 673 60,308
Service Corp. International 212,145 2,516,040
Stratus Properties, Inc. * 460 15,465
The Intergroup Corp. * 330 6,575
United Capital Corp. * 720 24,559
Wellsford Real Properties, Inc.
* 2,360 18,443
---------------
3,103,502
REAL ESTATE INVESTMENT TRUSTS 6.7%
- -----------------------------------------------------------------
American Campus Communities,
Inc. 1,930 58,460
American First Apartment
Investors, Inc. 410 8,319
Ashford Hospitality Trust 52,760 629,954
Associated Estates Realty Corp. 1,790 25,221
CBL & Associates Properties,
Inc. 53,423 2,395,487
Cedar Shopping Centers, Inc. 24,350 394,470
Eagle Hospitality Properties
Trust, Inc. 16,710 186,317
Extra Space Storage, Inc. 43,230 818,776
Franklin Street Properties
Corp. 44,272 849,137
Gladstone Commercial Corp. 660 13,233
Highland Hospitality Corp. 35,361 629,426
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Home Properties, Inc. 4,280 226,027
Hospitality Properties Trust 19,330 904,644
HRPT Properties Trust 181,806 2,236,214
Income Opportunity Realty
Investors * 590 3,540
Innkeepers USA Trust 16,207 263,850
iStar Financial, Inc. 57,487 2,692,116
Kite Realty Group Trust 16,000 319,200
LaSalle Hotel Properties 10,030 464,991
Lexington Realty Trust 44,546 941,257
LTC Properties, Inc. 9,840 254,954
Medical Properties Trust, Inc. 32,230 473,459
Mission West Properties, Inc. 10,440 150,962
Monmouth Capital Corp. 3,830 21,180
Monmouth Real Estate Investment
Corp., Class A 18,189 156,789
National Health Investors, Inc. 776 24,320
National Retail Properties,
Inc. 42,020 1,016,464
One Liberty Properties, Inc. 4,810 109,716
Ramco-Gershenson Properties
Trust 8,490 303,178
Republic Property Trust 14,980 172,120
Roberts Realty Investors, Inc. * 1,000 7,900
Spirit Finance Corp. 88,843 1,323,761
Strategic Hotel & Resorts, Inc. 56,210 1,285,523
Sunstone Hotel Investors, Inc. 50,390 1,373,631
Supertel Hospitality, Inc. 11,680 89,118
Universal Health Realty Income
Trust 80 2,860
Urstadt Biddle Properties, Inc.,
Class A 25,375 496,335
Winston Hotels, Inc. * 21,600 324,648
Winthrop Realty Trust 34,430 227,582
---------------
21,875,139
RESTAURANTS, HOTELS & THEATERS 2.6%
- -----------------------------------------------------------------
Analogic Corp. 4,300 270,384
Avalon Holdings Corp., Class A * 100 797
Back Yard Burgers, Inc. * 570 3,158
Benihana, Inc., Class A * 8,454 239,586
Bob Evans Farms, Inc. 17,743 655,604
Brinker International, Inc. 12,300 402,210
Burger King Holdings, Inc. 22,490 485,784
Canterbury Park Holding Corp. * 3,900 55,185
CBRL Group, Inc. 23,469 1,086,615
CEC Entertainment, Inc. * 8,900 369,706
Champps Entertainment, Inc. * 290 1,641
Churchill Downs, Inc. 370 16,794
Dover Motorsports, Inc. 4,700 24,675
Famous Dave's of America, Inc. * 110 1,988
Friendly Ice Cream Corp. * 5,910 87,882
Frisch's Restaurants, Inc. 4,500 168,750
Interstate Hotels & Resorts,
Inc. * 30,000 189,300
J. Alexander's Corp. 1,290 14,255
Jack in the Box, Inc. * 1,950 134,803
Live Nation, Inc. * 56,800 1,253,008
Marcus Corp. 19,640 456,826
Max & Erma's Restaurants, Inc. * 2,300 20,700
McCormick & Schmick's Seafood
Restaurants, Inc. * 12,200 327,082
Mexican Restaurants, Inc. * 2,543 24,387
Nathan's Famous, Inc. * 450 6,750
</Table>
See financial notes.
Laudus Funds Annual Report 121
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
O'Charley's, Inc. * 21,040 405,862
Red Lion Hotels Corp. * 19,400 241,336
Rubio's Restaurants, Inc. * 10 114
Silverleaf Resorts, Inc. * 6,500 30,160
Speedway Motorsports, Inc. 5,780 223,975
Star Buffet, Inc. 2,700 22,545
The Steak n Shake Co. * 26,000 436,020
Trump Entertainment Resorts,
Inc. * 624 11,276
WMS Industries, Inc. * 18,031 707,536
---------------
8,376,694
RETAIL 5.0%
- -----------------------------------------------------------------
1-800-FLOWERS.COM, Inc., Class A
* 25,266 196,569
Arden Group, Inc., Class A 772 103,062
Asbury Automotive Group, Inc. 890 25,142
AutoNation, Inc. * 55,600 1,180,944
Big Lots, Inc. * 85,280 2,667,558
Cabela's, Inc. * 610 15,134
Cache, Inc. * 4,680 83,070
Cash America International,
Inc. 10,280 421,480
Charlotte Russe Holding, Inc. * 10,795 311,652
Charming Shoppes, Inc. * 88,658 1,148,121
Collegiate Pacific, Inc. 9,370 73,086
Cost-U-Less, Inc. * 2,570 23,104
Deb Shops, Inc. 770 20,852
Dillard's, Inc., Class A 300 9,819
Dollar Tree Stores, Inc. * 1,249 47,762
EZCORP, Inc., Class A * 16,710 246,138
Finlay Enterprises, Inc. * 1,000 5,810
First Cash Financial Services,
Inc. * 4,580 102,042
Gottschalks, Inc. * 6,970 99,462
GSI Commerce, Inc. * 9,809 221,585
Hastings Entertainment, Inc. * 3,280 20,008
Haverty Furniture Cos., Inc. 20,790 291,060
Insight Enterprises, Inc. * 8,860 159,303
Jennifer Convertibles, Inc. * 1,640 7,642
Kirkland's, Inc. * 16,368 81,349
Longs Drug Stores Corp. 8,550 441,522
Nordstrom, Inc. 170 9,000
OfficeMax, Inc. 48,840 2,575,822
PC Connection, Inc. * 515 7,365
PC Mall, Inc. * 520 5,184
Priceline.com, Inc. * 7,700 410,102
Restoration Hardware, Inc. * 30,471 199,890
REX Stores Corp. * 7,150 116,974
Ruddick Corp. 440 13,235
Rush Enterprises, Inc., Class A
* 3,123 59,993
Rush Enterprises, Inc., Class B
* 6,430 116,447
Shoe Carnival, Inc. * 6,420 213,786
Shoe Pavilion, Inc. * 8,630 53,506
Spartan Stores, Inc. 15,320 410,576
Sport Chalet, Inc., Class A * 5,940 64,687
Sport Chalet, Inc., Class B * 1,000 10,795
Systemax, Inc. * 5,352 100,243
The Bon-Ton Stores, Inc. 6,700 376,808
The Cato Corp., Class A 27,720 648,371
The Great Atlantic & Pacific Tea
Co., Inc. * 18,870 626,107
The Men's Wearhouse, Inc. 34,200 1,609,110
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Trans World Entertainment Corp.
* 31,520 179,034
Village Super Market, Inc.,
Class A 1,500 143,235
Weis Markets, Inc. 6,040 269,988
Zones, Inc. * 9,120 93,480
---------------
16,317,014
SOAPS & COSMETICS 0.0%
- -----------------------------------------------------------------
Parlux Fragrances, Inc. * 12,870 71,815
The Estee Lauder Cos., Inc.,
Class A 1,550 75,717
---------------
147,532
SOFTWARE 6.7%
- -----------------------------------------------------------------
American Software, Inc., Class A 7,000 56,350
Aspen Technology, Inc. * 47,283 614,679
Black Box Corp. 13,196 482,182
BMC Software, Inc. * 107,210 3,300,996
Cadence Design Systems, Inc. * 21,973 462,751
Captaris, Inc. * 12,620 73,070
CIBER, Inc. * 47,484 373,699
Cognizant Technology Solutions
Corp., Class A * 17,591 1,552,758
Computer Task Group, Inc. * 7,655 34,524
CSP, Inc. * 1,220 11,261
Dynamics Research Corp. * 7,190 81,966
Edgewater Technology, Inc. * 9,580 80,855
Emdeon Corp. * 179,832 2,720,858
Goldleaf Financial Solutions,
Inc. * 3,600 23,688
Harris Interactive, Inc. * 52,060 313,922
Inforte Corp. * 7,170 24,880
INX, Inc. * 140 1,427
Lawson Software, Inc. * 105,403 852,710
Lightbridge, Inc. * 21,531 378,300
MapInfo Corp. * 110 2,214
Mentor Graphics Corp. * 69,500 1,135,630
Moldflow Corp. * 9,900 148,797
Move, Inc. * 9,840 54,514
Ness Technologies, Inc. * 19,403 247,970
NetManage, Inc. * 70 368
NetScout Systems, Inc. * 21,070 190,683
PC-Tel, Inc. * 23,600 240,012
Perot Systems Corp., Class A * 7,360 131,523
Saba Software, Inc. * 6,050 39,597
SAVVIS, Inc. * 28,926 1,384,977
SPSS, Inc. * 17,074 616,371
Sybase, Inc. * 75,340 1,904,595
Synopsys, Inc. * 90,934 2,385,199
Taleo Corp., Class A * 14,053 232,999
TechTeam Global, Inc. * 4,670 58,375
THQ, Inc. * 32,334 1,105,499
TSR, Inc. 3,200 13,504
Tyler Technologies, Inc. * 902 11,455
Versant Corp. * 290 4,916
Vignette Corp. * 18,260 339,088
---------------
21,689,162
TEXTILES & APPAREL 2.2%
- -----------------------------------------------------------------
Culp, Inc. * 12,300 87,084
Cutter & Buck, Inc. 9,500 112,575
Decorator Industries, Inc. 40 280
</Table>
See financial notes.
122 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
G-III Apparel Group Ltd. * 7,880 150,114
Interface, Inc., Class A 16,350 261,436
Jaclyn, Inc. * 460 5,189
LaCrosse Footwear, Inc. * 2,884 44,414
Liz Claiborne, Inc. 23,223 995,106
Perry Ellis International, Inc.
* 9,631 308,096
Phillips-Van Heusen Corp. 47,510 2,793,588
Polo Ralph Lauren Corp. 2,310 203,626
R.G. Barry Corp. * 310 3,230
Skechers U.S.A., Inc., Class A * 14,870 499,186
Stride Rite Corp. 18,370 282,714
The Dixie Group, Inc. * 5,730 68,932
The Gymboree Corp. * 30,377 1,217,206
Weyco Group, Inc. 2,423 62,950
---------------
7,095,726
WHOLESALE 2.5%
- -----------------------------------------------------------------
Anixter International, Inc. * 100 6,594
Arrow Electronics, Inc. * 3,850 145,337
Avnet, Inc. * 99,567 3,598,351
Bell Microproducts, Inc. * 29,223 187,027
Brown Shoe Co., Inc. 16,185 679,770
Coast Distribution System, Inc. 1,700 13,175
Delta Apparel, Inc. 4,880 84,912
Educational Development Corp. 3,300 25,773
En Pointe Technologies, Inc. * 2,100 7,161
Huttig Building Products, Inc. * 20,400 123,420
IKON Office Solutions, Inc. 200 2,874
Industrial Distribution Group,
Inc. * 3,810 47,587
Kaman Corp. 490 11,422
Keystone Automotive Industries,
Inc. * 8,240 277,688
Lawson Products, Inc. 800 30,304
Man Sang Holdings, Inc. * 2,220 13,320
NACCO Industries, Inc., Class A 150 20,612
Nu Horizons Electronics Corp. * 18,005 189,593
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Nu Skin Enterprises, Inc., Class
A 23,729 392,003
Park-Ohio Holdings Corp. * 2,677 49,524
Performance Food Group Co. * 6,521 201,303
Richardson Electronics Ltd. 18,081 168,877
TESSCO Technologies, Inc. * 1,245 33,852
Traffix, Inc. 565 3,130
W.W. Grainger, Inc. 23,600 1,822,864
---------------
8,136,473
---------------
TOTAL COMMON STOCK (COST $247,794,675) 302,181,168
---------------
</Table>
<Table>
<Caption>
SECURITY FACE AMOUNT VALUE
RATE, MATURITY DATE ($) ($)
SHORT-TERM INVESTMENT (A) 5.6% OF NET ASSETS
REPURCHASE AGREEMENT 5.6%
- -----------------------------------------------------------------
Custodian Trust Company, dated
03/30/07, due 4/02/07 at 5.10%
with a maturity value of
$18,122,658 (fully
collateralized by U.S.
Treasury Bond with a value of
$18,610,050) 18,114,959 18,114,959
---------------
TOTAL SHORT-TERM INVESTMENT
(COST $18,114,959) 18,114,959
- -----------------------------------------------------------------
END OF INVESTMENTS.
</Table>
At 03/31/07 the tax basis cost of the fund's investments was $266,602,429 and
the unrealized gains and losses were $57,848,904 and ($4,155,206), respectively,
with a net unrealized appreciation of $53,693,698.
* Non-income producing security.
(a) All long positions are pledged as collateral for securities sold short.
See financial notes.
Laudus Funds Annual Report 123
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
SHORT SALES (93.5)% OF NET ASSETS
AGRICULTURE, FOOD & BEVERAGE 0.6%
- -----------------------------------------------------------------
Cagle's, Inc., Class A * 1,760 13,024
Chiquita Brands International,
Inc. 37,700 528,554
Cuisine Solutions, Inc. * 1,900 13,718
Del Monte Foods Co. 1,620 18,598
Farmer Brothers Co. 7,400 167,980
McCormick & Co., Inc. 700 26,964
Pilgrim's Pride Corp., Class B 2,380 78,992
Sanderson Farms, Inc. 16,600 615,196
Tyson Foods, Inc., Class A 17,910 347,633
---------------
1,810,659
AIRLINES 0.3%
- -----------------------------------------------------------------
JetBlue Airways Corp. * 98,400 1,132,584
AUTOS 1.2%
- -----------------------------------------------------------------
Accuride Corp. * 560 8,176
Commercial Vehicle Group, Inc. * 20,825 423,045
Gentex Corp. 120,300 1,954,875
Proliance International, Inc. * 13,000 49,140
Tenneco, Inc. * 38,956 991,820
Wabash National Corp. 27,530 424,512
---------------
3,851,568
BANKS & CREDIT INSTITUTIONS 6.6%
- -----------------------------------------------------------------
Accredited Home Lenders Holding
Co. * 21,000 194,670
Astoria Financial Corp. 79,500 2,113,905
Capitol Federal Financial 16,876 638,082
Cash Systems, Inc. * 13,490 79,861
Centerline Holding Co. * 720 13,932
Citizens Banking Corp. 51,853 1,149,062
Commerce Bancorp, Inc. 35,450 1,183,321
Encore Capital Group, Inc. * 2,790 27,733
Flagstar Bancorp, Inc. 560 6,692
IndyMac Bancorp, Inc. 52,000 1,666,600
Investors Bancorp, Inc. * 500 7,220
Kearny Financial Corp. 16,156 232,323
Municipal Mortgage & Equity,
L.L.C. 25,044 713,754
Nelnet, Inc., Class A 18,900 453,033
New York Community Bancorp, Inc. 170,460 2,998,391
Pacific Capital Bancorp 23,243 746,565
Popular, Inc. 145,200 2,404,512
Southern Community Financial
Corp. 63 646
Sovereign Bancorp, Inc. 125,288 3,187,327
UCBH Holdings, Inc. 122 2,272
Valley National Bancorp 88,310 2,229,828
Wauwatosa Holdings, Inc. * 10,179 177,929
Webster Financial Corp. 23 1,104
Westamerica Bancorp 24,670 1,188,354
Yardville National Bancorp 4,804 174,433
---------------
21,591,549
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
BASIC MINERALS & METALS 1.9%
- -----------------------------------------------------------------
American Superconductor Corp. * 11,200 150,864
Century Aluminum Co. * 9,680 453,799
Dynamic Materials Corp. 12,200 399,184
Lone Star Technologies, Inc. * 27,400 1,809,222
Meridian Gold, Inc. * 85,200 2,175,156
Olin Corp. 66,910 1,133,455
Titanium Metals Corp. * 721 25,876
---------------
6,147,556
BIOTECHNOLOGY 4.1%
- -----------------------------------------------------------------
Alexion Pharmaceuticals, Inc. * 32,198 1,392,242
Altus Pharmaceuticals, Inc. * 7,300 111,106
ARIAD Pharmaceuticals, Inc. * 42,200 189,478
ArQule, Inc. * 38,696 288,672
CV Therapeutics, Inc. * 40,000 314,800
Cypress Bioscience, Inc. * 29,387 223,341
CYTOGEN Corp. * 2,393 4,978
Dyax Corp. * 22,556 92,931
Encysive Pharmaceuticals, Inc. * 54,364 147,326
Geron Corp. * 43,693 305,851
Human Genome Sciences, Inc. * 117,350 1,246,257
Idenix Pharmaceuticals, Inc. * 100 730
ImClone Systems, Inc. * 52,763 2,151,148
Keryx Biopharmaceuticals, Inc. * 36,770 386,820
Kosan Biosciences, Inc. * 8,170 44,935
Medarex, Inc. * 106,961 1,384,075
Myriad Genetics, Inc. * 34,200 1,178,532
Neurocrine Biosciences, Inc. * 35,400 442,500
Onyx Pharmaceuticals, Inc. * 27,600 685,584
Progenics Pharmaceuticals, Inc. * 9,544 226,002
Seattle Genetics, Inc. * 17,000 139,230
Vertex Pharmaceuticals, Inc. * 79,698 2,234,732
---------------
13,191,270
CELLULAR & WIRELESS 1.0%
- -----------------------------------------------------------------
Centennial Communications Corp. * 23,600 194,228
Dobson Communications Corp.,
Class A * 143,254 1,230,552
Leap Wireless International, Inc.
* 27,168 1,792,544
Rural Cellular Corp. * 14,600 174,616
---------------
3,391,940
CHEMICALS & RUBBER 0.9%
- -----------------------------------------------------------------
American Vanguard Corp. 17,600 300,784
BioSphere Medical, Inc. * 19,597 144,234
Calgon Carbon Corp. * 30,500 253,455
Chemtura Corp. 400 4,372
Georgia Gulf Corp. 33,400 541,414
Hexcel Corp. * 84,210 1,671,569
Valhi, Inc. 1,510 19,932
Westlake Chemical Corp. 3,790 102,898
---------------
3,038,658
COMMERCIAL AIRCRAFT & COMPONENTS 0.0%
- -----------------------------------------------------------------
CPI Aerostructures, Inc. * 700 4,802
COMMUNICATIONS UTILITIES 1.2%
- -----------------------------------------------------------------
Crown Media Holdings, Inc., Class
A * 4,799 25,579
EarthLink, Inc. * 127,500 937,125
</Table>
See financial notes.
124 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
EchoStar Communications Corp.,
Class A * 14,735 639,941
iPCS, Inc. * 8,800 428,610
j2 Global Communications, Inc. * 7,652 212,113
SBA Communications Corp., Class A
* 17,960 530,718
Sohu.com, Inc. * 20,100 430,743
Virgin Media, Inc. 20,897 527,649
Windstream Corp. 8,540 125,453
---------------
3,857,931
CONSTRUCTION & HOMEBUILDING 2.4%
- -----------------------------------------------------------------
California Coastal Communities,
Inc. * 1,476 29,948
Centex Corp. 49,634 2,073,709
KB Home 53,500 2,282,845
M.D.C. Holdings, Inc. 31,810 1,529,107
Pulte Homes, Inc. 28,888 764,376
Sterling Construction Co., Inc. * 1,500 28,590
The Ryland Group, Inc. 14,970 631,584
Toll Brothers, Inc. * 20,600 564,028
---------------
7,904,187
CONSTRUCTION MATERIALS 0.3%
- -----------------------------------------------------------------
Headwaters, Inc. * 40,600 887,110
Nanophase Technologies Corp. * 7,600 44,612
---------------
931,722
CONSUMER DURABLES 0.9%
- -----------------------------------------------------------------
Brunswick Corp. 78,000 2,484,300
Fleetwood Enterprises, Inc. * 62,700 495,957
Marine Products Corp. 3,820 36,557
---------------
3,016,814
DRUGS & PHARMACEUTICALS 2.3%
- -----------------------------------------------------------------
Adams Respiratory Therapeutics,
Inc. * 23,800 800,394
Adolor Corp. * 23,500 205,625
Alkermes, Inc. * 9,060 139,886
Amylin Pharmaceuticals, Inc. * 49,000 1,830,640
Atherogenics, Inc. * 7,800 21,918
Bioenvision, Inc. * 29,700 121,473
Cytokinetics, Inc. * 42 292
Dendreon Corp. (b) * 19,600 253,428
DepoMed, Inc. * 100 357
Enzon Pharmaceuticals, Inc. * 41,310 336,677
Indevus Pharmaceuticals, Inc. * 1,800 12,726
Inspire Pharmaceuticals, Inc. * 16,700 95,190
Isis Pharmaceuticals, Inc. * 27,176 251,922
Martek Biosciences Corp. * 8,370 172,589
Metabasis Therapeutics, Inc. * 19,960 146,706
MGI Pharma, Inc. * 1,513 33,997
Nektar Therapeutics * 4,618 60,311
Neurogen Corp. * 10,560 68,640
NitroMed, Inc. * 5,700 17,784
NPS Pharmaceuticals, Inc. * 25,300 85,767
Panacos Pharmaceuticals, Inc. * 2,000 9,260
PDL BioPharma, Inc. * 2,200 47,740
Penwest Pharmaceuticals Co. * 16,735 168,689
Pharmion Corp. * 16,071 422,507
Repros Therapeutics, Inc. * 8,500 81,023
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Rigel Pharmaceuticals, Inc. * 19,899 216,103
ViroPharma, Inc. * 61,321 879,956
Xenoport, Inc. * 18,059 503,124
ZymoGenetics, Inc. * 31,927 496,784
---------------
7,481,508
ELECTRIC UTILITIES 0.3%
- -----------------------------------------------------------------
Dynegy, Inc., Class A * 110,620 1,024,341
Environmental Power Corp. * 9,380 65,660
---------------
1,090,001
FINANCIAL INVESTMENTS 0.7%
- -----------------------------------------------------------------
InterDigital Communications Corp.
* 45,455 1,439,560
Marlin Business Services, Inc. * 292 6,389
Mitcham Industries, Inc. * 9,595 140,567
Williams Scotsman International,
Inc. * 29,100 572,106
Winmark Corp. * 116 2,320
---------------
2,160,942
FOREST PRODUCTS & PAPER 2.1%
- -----------------------------------------------------------------
Deltic Timber Corp. 9,190 440,752
Louisiana-Pacific Corp. 94,620 1,898,077
Pope & Talbot, Inc. * 4,670 31,523
Rayonier, Inc. 58,290 2,506,470
Smurfit-Stone Container Corp. * 164,428 1,851,459
---------------
6,728,281
FURNITURE & HOUSEHOLD ITEMS 1.5%
- -----------------------------------------------------------------
Bally Technologies, Inc. * 46,400 1,094,112
Fiberstars, Inc. * 12,600 71,190
Kinetic Concepts, Inc. * 20,933 1,060,047
Newell Rubbermaid, Inc. 68,214 2,120,773
Omnova Solutions, Inc. * 9,230 50,570
Progressive Gaming International
Corp. * 30,400 136,800
Russ Berrie and Co., Inc. * 10,730 151,293
Sealy Corp. 3,900 68,172
---------------
4,752,957
GAS & OTHER PUBLIC UTILITIES 0.1%
- -----------------------------------------------------------------
American Ecology Corp. 10,102 194,060
Cadiz, Inc. * 410 10,509
TRC Cos., Inc. * 1,480 14,933
---------------
219,502
GOVERNMENT AIRCRAFT & DEFENSE 0.0%
- -----------------------------------------------------------------
Innovative Solutions & Support,
Inc. * 2,846 72,061
HEALTH CARE & HOSPITAL 0.9%
- -----------------------------------------------------------------
Advocat, Inc. * 5,060 64,193
Array BioPharma, Inc. * 38,000 482,600
Enzo Biochem, Inc. * 23,600 355,888
Health Management Associates,
Inc., Class A 67,142 729,833
HealthTronics, Inc. * 10,500 56,213
Nighthawk Radiology Holdings,
Inc. * 7,000 127,330
</Table>
See financial notes.
Laudus Funds Annual Report 125
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Psychiatric Solutions, Inc. * 15,776 635,931
Tenet Healthcare Corp. * 81,700 525,331
VistaCare, Inc., Class A * 7,500 65,250
---------------
3,042,569
INFORMATION & SERVICES 5.3%
- -----------------------------------------------------------------
Arbinet-thexchange, Inc. * 2,900 18,328
Arena Pharmaceuticals, Inc. * 58,700 637,482
Asset Acceptance Capital Corp. * 2,360 36,509
BearingPoint, Inc. * 173,850 1,331,691
Career Education Corp. * 86,600 2,641,300
ChoicePoint, Inc. * 50,300 1,882,729
Corinthian Colleges, Inc. * 60,548 832,535
deCODE genetics, Inc. * 43,200 157,680
DynCorp International, Inc.,
Class A * 1,310 19,768
Emeritus Corp. * 5,160 174,150
Euronet Worldwide, Inc. * 24,601 660,783
Evergreen Energy, Inc. * 50,860 334,150
Exelixis, Inc. * 83,970 834,662
Global Cash Access Holdings, Inc.
* 39,130 653,080
Iron Mountain, Inc. * 37,695 984,970
Jupitermedia Corp. * 19,300 127,766
Maxygen, Inc. * 27,910 311,197
Nuvelo, Inc. * 46,200 170,016
PeopleSupport, Inc. * 4,858 55,624
Rentech, Inc. * 77,700 243,978
Senomyx, Inc. * 18,750 232,125
Strayer Education, Inc. 10,732 1,341,500
Syntroleum Corp. * 11,500 35,880
The Advisory Board Co. * 16,900 855,478
The Corporate Executive Board
Co. 27,500 2,088,900
Universal Technical Institute,
Inc. * 21,300 491,604
UTI Worldwide, Inc. 6,400 157,312
---------------
17,311,197
INSTRUMENTS 4.1%
- -----------------------------------------------------------------
ATS Medical, Inc. * 500 1,030
Bausch & Lomb, Inc. 38,720 1,980,915
Caliper Life Sciences, Inc. * 2,700 15,255
Cantel Medical Corp. * 10,490 161,441
CAS Medical Systems, Inc. * 900 6,300
Cepheid, Inc. * 51,709 614,303
Clinical Data, Inc. * 81 1,681
Cyberonics, Inc. * 17,700 332,406
Daxor Corp. * 200 2,650
Dexcom, Inc. * 16,849 132,433
Endologix, Inc. * 28,030 110,158
I-Flow Corp. * 22,151 326,506
Intuitive Surgical, Inc. * 24,700 3,002,779
LoJack Corp. * 19,900 377,702
Luminex Corp. * 19,070 261,640
Measurement Specialties, Inc. * 13,493 304,402
Mentor Corp. 33,200 1,527,200
Millipore Corp. * 38,400 2,782,848
NMT Medical, Inc. * 8,260 112,336
OraSure Technologies, Inc. * 47,500 349,125
Photon Dynamics, Inc. * 18,500 233,285
RAE Systems, Inc. * 9,600 27,552
Regeneration Technologies, Inc. * 30,559 221,553
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
STAAR Surgical Co. * 8,486 46,758
Synergetics USA, Inc. * 7,510 26,886
ThermoGenesis Corp. * 28,700 104,468
Varian Medical Systems, Inc. * 2,700 128,763
Vnus Medical Technologies * 15,800 158,316
---------------
13,350,691
INSURANCE 2.3%
- -----------------------------------------------------------------
Brown & Brown, Inc. 91,300 2,469,665
First Acceptance Corp. * 17,940 187,832
United Fire & Casualty Co. 117 4,110
White Mountains Insurance Group
Ltd. 3,811 2,158,932
Willis Group Holdings Ltd. 64,990 2,572,304
---------------
7,392,843
IT HARDWARE 7.2%
- -----------------------------------------------------------------
ADTRAN, Inc. 53,875 1,311,856
Advanced Micro Devices, Inc. * 95,020 1,240,961
Altera Corp. * 142,166 2,841,898
Bookham, Inc. * 25,300 57,431
California Micro Devices Corp. * 210 983
Carrier Access Corp. * 14,785 75,551
Comarco, Inc. * 7,730 70,343
DDi Corp. * 19,068 130,425
EFJ, Inc. * 17,500 93,450
Energy Conversion Devices, Inc. * 30,600 1,069,164
Foundry Networks, Inc. * 110,656 1,501,602
Ikanos Communications, Inc. * 20,600 160,062
Intervoice, Inc. * 38,200 253,648
Itron, Inc. * 22,490 1,462,750
IXYS Corp. * 27,504 281,366
KLA-Tencor Corp. 30,700 1,636,924
Kulicke and Soffa Industries,
Inc. * 52,049 481,453
Leadis Technology, Inc. * 13,400 53,600
Metalink Ltd. * 2,600 17,524
Microchip Technology, Inc. 49,091 1,744,203
Nam Tai Electronics, Inc. 22,494 291,297
Nanometrics, Inc. * 17,985 120,500
National Semiconductor Corp. 6,790 163,911
Netlogic Microsystems, Inc. * 100 2,662
Novatel Wireless, Inc. * 2,813 45,121
O2Micro International Ltd. -- ADR
* 26,910 212,589
OmniVision Technologies, Inc. * 33,300 431,568
Plexus Corp. * 44,600 764,890
Power-One, Inc. * 68,360 391,019
Powerwave Technologies, Inc. * 80,000 455,200
Rackable Systems, Inc. * 26,829 455,288
Rambus, Inc. * 81,915 1,740,694
RELM Wireless Corp. * 360 1,440
Sigmatel, Inc. * 31,300 98,282
Silicon Laboratories, Inc. * 10,600 317,152
Sparton Corp. * 1,000 8,160
Staktek Holdings, Inc. * 16,070 52,228
Synaptics, Inc. * 22,780 582,712
Teradyne, Inc. * 156,400 2,586,856
Universal Display Corp. * 4,800 72,432
Virage Logic Corp. * 10,521 76,488
Vyyo, Inc. * 6,500 53,365
Xilinx, Inc. 1,940 49,916
---------------
23,458,964
</Table>
See financial notes.
126 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
LAND & WATER TRANSPORTATION 2.2%
- -----------------------------------------------------------------
Arkansas Best Corp. 1,780 63,279
Con-way, Inc. 40,800 2,033,472
Forward Air Corp. 12,800 420,864
Genesee & Wyoming, Inc., Class A
* 34,600 920,706
Heartland Express, Inc. 43,995 698,641
Landstar System, Inc. 1,617 74,123
Marten Transport Ltd. * 1,500 23,820
Quality Distribution, Inc. * 9,332 80,722
Rural/Metro Corp. * 23,200 175,160
Sirva, Inc. * 23,300 83,181
The Greenbrier Cos., Inc. 11,380 303,846
Trailer Bridge, Inc. * 12,900 113,391
USA Truck, Inc. * 6,283 97,638
YRC Worldwide, Inc. * 51,402 2,067,388
---------------
7,156,231
MAINFRAME & MINICOMPUTERS 0.5%
- -----------------------------------------------------------------
Palm, Inc. * 88,500 1,604,505
METAL PRODUCTS & MACHINERY 4.4%
- -----------------------------------------------------------------
Actuant Corp., Class A 26,600 1,351,546
Blount International, Inc. * 35,340 439,983
Briggs & Stratton Corp. 44,950 1,386,707
Bucyrus International, Inc.,
Class A 206 10,609
Columbus McKinnon Corp. * 17,300 387,347
Drew Industries, Inc. * 12,900 369,972
Environmental Tectonics Corp. * 5,200 19,968
Flow International Corp. * 6,196 66,545
Freightcar America, Inc. 11,200 539,504
Joy Global, Inc. 42,642 1,829,342
Omega Flex, Inc. * 1,810 40,852
Pentair, Inc. 72,900 2,271,564
Plug Power, Inc. * 36,700 115,972
The Black & Decker Corp. 33,800 2,758,756
Ultralife Batteries, Inc. * 12,800 138,240
Zebra Technologies Corp., Class A
* 64,000 2,471,040
---------------
14,197,947
MISCELLANEOUS FINANCE 2.4%
- -----------------------------------------------------------------
Calamos Asset Management, Inc.,
Class A 20,963 467,894
E*TRADE Financial Corp. * 92,728 1,967,688
GAMCO Investors, Inc., Class A 90 3,900
Jefferies Group, Inc. 88,790 2,570,471
Nasdaq Stock Market, Inc. * 70,906 2,085,345
optionsXpress Holdings, Inc. 1,865 43,902
Sanders Morris Harris Group,
Inc. 13,300 141,645
Stifel Financial Corp. * 70 3,101
Thomas Weisel Partners Group,
Inc. * 7,400 140,748
W.P. Stewart & Co., Ltd. 45,400 457,178
---------------
7,881,872
OIL & COAL RESOURCES 2.9%
- -----------------------------------------------------------------
Atlas America, Inc. * 7,595 429,042
Carrizo Oil & Gas, Inc. * 3,092 108,096
Clayton Williams Energy, Inc. * 5,627 159,638
CREDO Petroleum Corp. * 160 2,181
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Delta Petroleum Corp. * 48,000 1,102,080
Double Eagle Petroleum Co. * 3,900 70,239
Edge Petroleum Corp. * 18,600 232,872
Encore Acquisition Co. * 30,521 738,303
Foundation Coal Holdings, Inc. 8,040 276,094
FX Energy, Inc. * 35,300 267,574
Infinity Energy Resources, Inc. * 350 1,186
Massey Energy Co. 17,300 415,027
Pogo Producing Co. 51,600 2,481,960
Quicksilver Resources, Inc. * 44,300 1,761,811
Southwestern Energy Co. * 19,700 807,306
Warren Resources, Inc. * 42,646 555,677
---------------
9,409,086
OIL DISTRIBUTION 1.3%
- -----------------------------------------------------------------
Alon USA Energy, Inc. 1,855 67,151
Cheniere Energy, Inc. * 42,400 1,320,760
Kinder Morgan Management, LLC * 55,218 2,829,370
---------------
4,217,281
OIL DRILLING & SERVICES 0.8%
- -----------------------------------------------------------------
Parker Drilling Co. * 2,130 20,001
Patterson-UTI Energy, Inc. 106,587 2,391,812
TGC Industries, Inc. * 17,100 147,231
---------------
2,559,044
PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6%
- -----------------------------------------------------------------
Ampex Corp., Class A * 580 11,467
Avid Technology, Inc. * 23,600 823,168
Dot Hill Systems Corp. * 6,120 22,338
Echelon Corp. * 24,800 261,392
FalconStor Software, Inc. * 139 1,448
Immersion Corp. * 25,550 230,461
Intermec, Inc. * 4,910 109,689
Lexmark International, Inc.,
Class A * 5,770 337,314
Mobility Electronics, Inc. * 20,500 63,755
X-Rite, Inc. 7,890 102,176
---------------
1,963,208
PUBLISHING, BROADCASTING & CINEMA 3.0%
- -----------------------------------------------------------------
Acco Brands Corp. * 6,640 159,958
Central European Media
Enterprises Ltd., Class A * 339 30,001
CKX, Inc. * 20,900 231,990
DreamWorks Animation SKG, Inc.,
Class A * 10,232 312,895
Nexstar Broadcasting Group, Inc.,
Class A * 10,262 98,618
R.H. Donnelley Corp. * 40,050 2,839,144
Sun-Times Media Group, Inc.,
Class A 41,418 205,433
The Interpublic Group of Cos.,
Inc. * 189,280 2,330,037
The New York Times Co., Class A 61,000 1,434,110
XM Satellite Radio Holdings,
Inc., Class A * 156,034 2,015,959
Young Broadcasting, Inc., Class A
* 3,146 12,710
---------------
9,670,855
</Table>
See financial notes.
Laudus Funds Annual Report 127
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
REAL ESTATE DEVELOPMENT 0.5%
- -----------------------------------------------------------------
Consolidated-Tomoka Land Co. 5,500 414,975
Forest City Enterprises, Inc.,
Class A 11,780 779,600
Levitt Corp., Class A 16,800 156,408
Tejon Ranch Co. * 4,700 222,310
The St. Joe Co. 1,000 52,310
---------------
1,625,603
REAL ESTATE INVESTMENT TRUSTS 8.2%
- -----------------------------------------------------------------
Alexandria Real Estate Equities,
Inc. 8,480 851,137
AMB Property Corp. 14,200 834,818
Apartment Investment & Management
Co., Class A 27,949 1,612,378
BRE Properties, Class A 39,709 2,507,623
Camden Property Trust 36,240 2,548,034
Developers Diversified Realty
Corp. 48,850 3,072,665
EastGroup Properties, Inc. 1,960 100,019
Essex Property Trust, Inc. 86 11,135
FelCor Lodging Trust, Inc. 8,230 213,733
First Industrial Realty Trust,
Inc. 13,443 608,968
General Growth Properties, Inc. 840 54,239
Glimcher Realty Trust 32,440 876,529
Kilroy Realty Corp. 25,580 1,886,525
Plum Creek Timber Co., Inc. 74,800 2,948,616
Regency Centers Corp. 32,000 2,673,600
UDR, Inc. 86,114 2,636,811
Ventas, Inc. 51,600 2,173,908
Washington Real Estate Investment
Trust 31,100 1,163,762
---------------
26,774,500
RESTAURANTS, HOTELS & THEATERS 3.1%
- -----------------------------------------------------------------
AMERCO * 9,141 639,779
Applebee's International, Inc. 94 2,329
Boyd Gaming Corp. 17,230 820,837
Buca, Inc. * 12,779 70,284
Isle of Capri Casinos, Inc. * 15,880 406,846
Magna Entertainment Corp., Class
A * 15,200 55,328
MoneyGram International, Inc. 74,095 2,056,877
Nevada Gold & Casinos, Inc. * 11,200 22,512
P.F. Chang's China Bistro, Inc. * 15,300 640,764
Peet's Coffee & Tea, Inc. * 8,570 236,703
Red Robin Gourmet Burgers, Inc. * 10,556 409,784
Regal Entertainment Group, Class
A 60,450 1,201,142
Ruth's Chris Steak House, Inc. * 5,900 120,124
Scientific Games, Corp., Class A
* 63,200 2,074,856
Six Flags, Inc. * 45,170 271,472
Texas Roadhouse, Inc., Class A * 13,918 198,331
The Cheesecake Factory, Inc. * 20,381 543,154
Triarc Cos., Inc., Class B 12,140 208,687
Westwood One, Inc. 8,630 59,288
---------------
10,039,097
RETAIL 5.0%
- -----------------------------------------------------------------
99 Cents Only Stores * 37,610 553,995
Advance Auto Parts, Inc. 200 7,710
Amazon.com, Inc. * 69,000 2,745,510
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Borders Group, Inc. 56,400 1,151,688
Celebrate Express, Inc. * 5,900 52,333
Chico's FAS, Inc. * 12,800 312,704
Design Within Reach, Inc. * 5,000 28,700
Dollar General Corp. 27,000 571,050
Guitar Center, Inc. * 7,400 333,888
MarineMax, Inc. * 800 18,532
New York & Co., Inc. * 8,800 138,952
Pacific Sunwear of California,
Inc. * 65,200 1,358,116
PetMed Express, Inc. * 18,600 220,410
Pier 1 Imports, Inc. 84,600 584,586
The Finish Line, Inc., Class A 38,400 483,840
The Pantry, Inc. * 21,700 981,274
The Pep Boys-Manny, Moe & Jack 51,800 988,862
Tiffany & Co. 48,621 2,211,283
Tractor Supply Co. * 9,500 489,250
United Retail Group, Inc. * 14,100 169,482
Urban Outfitters, Inc. * 91,100 2,415,061
Whole Foods Market, Inc. 5,974 267,934
---------------
16,085,160
SOFTWARE 7.0%
- -----------------------------------------------------------------
Accelrys, Inc. * 1,710 10,910
Activision, Inc. * 161,640 3,061,462
Affiliated Computer Services,
Inc., Class A * 2,600 153,088
Aptimus, Inc. * 5,800 19,720
Astea International, Inc. * 1,500 8,370
Autodesk, Inc. * 65,305 2,455,468
Blackboard, Inc. * 754 25,357
Citrix Systems, Inc. * 180 5,765
Cogent, Inc. * 34,380 462,411
Computer Programs and Systems,
Inc. 9,100 244,062
Concur Technologies, Inc. * 31,700 553,482
Emageon, Inc. * 14,000 154,000
eResearch Technology, Inc. * 33,400 262,524
Global Payments, Inc. 8,400 286,104
Internet Capital Group, Inc. * 3,640 38,948
Kronos, Inc. * 28,080 1,502,280
Mercury Computer Systems, Inc. * 17,300 239,951
NAVTEQ Corp. * 74,600 2,573,700
Net 1 UEPS Technologies, Inc. * 45,179 1,124,053
Online Resources Corp. * 2,467 28,296
Opsware, Inc. * 3,300 23,925
PlanetOut, Inc. * 14,500 49,300
Q-Med, Inc. * 15,286 67,717
Red Hat, Inc. * 6,020 138,039
RightNow Technologies, Inc. * 15,390 252,088
Salesforce.com, Inc. * 30,230 1,294,449
SM&A * 1,329 9,436
SRA International, Inc., Class A
* 24,500 596,820
Streamline Health Solutions * 10,100 42,622
SupportSoft, Inc. * 12,600 71,064
Take-Two Interactive Software,
Inc. * 61,500 1,238,610
The BISYS Group, Inc. * 105,761 1,212,021
Transaction Systems Architects,
Inc. * 36,400 1,178,996
Unisys Corp. * 273 2,301
VeriSign, Inc. * 115,907 2,911,584
</Table>
See financial notes.
128 Laudus Funds Annual Report
LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
Visicu, Inc. * 7,800 60,840
Websense, Inc. * 9,510 218,635
WebSideStory, Inc. * 17,800 230,510
---------------
22,808,908
TEXTILES & APPAREL 1.1%
- -----------------------------------------------------------------
Ashworth, Inc. * 14,494 109,720
K-Swiss, Inc., Class A 24,100 651,182
Phoenix Footwear Group, Inc. * 1,780 8,099
The Timberland Co., Class A * 47,800 1,244,234
Under Armour, Inc. * 19,400 995,220
Volcom, Inc. * 11,756 403,936
---------------
3,412,391
WHOLESALE 2.3%
- -----------------------------------------------------------------
BlueLinx Holdings, Inc. 10,800 113,312
Brightpoint, Inc. * 49,100 561,704
Central European Distribution
Corp. * 28,700 835,457
</Table>
<Table>
<Caption>
NUMBER OF VALUE
SECURITY SHARES ($)
H&E Equipment Services, Inc. * 12,000 258,000
Lazare Kaplan International, Inc.
* 8,740 70,444
Nash Finch Co. 12 413
Owens & Minor, Inc. 990 36,363
Patterson Cos., Inc. * 71,100 2,523,339
UAP Holding Corp. 33,679 870,602
WESCO International, Inc. * 36,360 2,282,681
---------------
7,552,315
---------------
TOTAL SHORT SALES
(PROCEEDS $305,578,183) 303,890,759
- -----------------------------------------------------------------
END OF SHORT SALE POSITIONS.
</Table>
* Non-income producing security.
(b) Fair-valued by Management.
ADR -- American Depositary Receipt
See financial notes.
Laudus Funds Annual Report 129
Financial Statements
Statement of Assets and Liabilities as of 3/31/07
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG
U.S. LARGE U.S. LARGE U.S. LARGE
CAPITALIZATION CAPITALIZATION CAPITALIZATION
FUND GROWTH FUND VALUE FUND
---------------- ---------------- ----------------
ASSETS:
Total investments, at cost(1)............................... $ 92,244,139 $69,070,731 $5,574,417
============ =========== ==========
Investments, at value(1).................................... $104,326,475 $77,114,283 $6,576,131
Repurchase agreements, at amortized cost.................... 40,000 -- --
------------ ----------- ----------
Total Investments........................................ 104,366,475 77,114,283 6,576,131
------------ ----------- ----------
Deposits with broker and custodian bank for securities sold
short....................................................... -- -- --
Collateral invested for securities on loan.................. -- 6,243,025 --
Cash........................................................ 3,767 -- --
Foreign currency, at value(2)............................... -- -- --
Unrealized gain on foreign currency contracts............... -- -- --
Dividends and interest receivable........................... 91,651 68,376 8,973
Receivable for fund shares sold............................. 68,267 86,600 1,989
Receivable for securities sold short........................ -- -- --
Receivable for investments sold............................. 1,605,088 2,486,146 1,629,254
Reclaims receivable......................................... -- -- --
Receivable from Adviser..................................... -- -- 9,423
Prepaid expenses............................................ 5,509 3,271 418
------------ ----------- ----------
Total Assets............................................. 106,140,757 86,001,701 8,226,188
------------ ----------- ----------
LIABILITIES:
Securities sold short, proceeds............................. $ -- $ -- $ --
============ =========== ==========
Securities sold short....................................... -- -- --
Unrealized loss on foreign currency contracts............... -- -- --
Payable to custodian........................................ -- 1,229,310 1,557,904
Payable for fund shares redeemed............................ 21,733 35,750 --
Payable for cover securities sold short..................... -- -- --
Payable for investments purchased........................... 999,755 678,439 48,437
Collateral held for securities on loan...................... -- 6,243,025 --
Accrued expenses and other liabilities:
Trustees' retirement plan.................................. 4,728 1,237 157
Dividends payable on securities sold short................. -- -- --
Adviser fees............................................... 74,236 48,880 --
Transfer agent fees........................................ 1,510 1,305 1,277
Distribution and shareholder service fees.................. 2,982 560 108
Trustees' fees............................................. 810 439 570
Administration and fund accounting fee..................... 4,731 3,624 3,091
Other accrued expenses..................................... 35,725 36,274 15,895
------------ ----------- ----------
Total Liabilities........................................ 1,146,210 8,278,843 1,627,439
------------ ----------- ----------
NET ASSETS.................................................. $104,994,547 $77,722,858 $6,598,749
============ =========== ==========
NET ASSETS CONSIST OF:
Capital..................................................... $ 86,887,795 $71,710,252 $5,056,253
Undistributed net investment income/(loss).................. 163,419 61,427 20,127
Accumulated net realized gains/(losses) on investments...... 5,820,997 (2,092,373) 520,655
Net unrealized appreciation/(depreciation) on investments... 12,122,336 8,043,552 1,001,714
------------ ----------- ----------
NET ASSETS.................................................. $104,994,547 $77,722,858 $6,598,749
============ =========== ==========
INSTITUTIONAL SHARES:
Net Assets.................................................. $ 94,921,017 $75,481,115 $6,058,297
Shares Outstanding.......................................... 7,187,870 7,729,953 475,434
Net Asset Value, Offering Price and Redemption Price per
Share....................................................... $ 13.21 $ 9.76 $ 12.74
============ =========== ==========
ADVISER SHARES:
Net Assets.................................................. $ -- $ -- $ --
Shares Outstanding.......................................... -- -- --
Net Asset Value, Offering Price and Redemption Price per
Share....................................................... $ -- $ -- $ --
============ =========== ==========
INVESTOR SHARES:
Net Assets.................................................. $ 10,073,530 $ 2,241,743 $ 540,452
Shares Outstanding.......................................... 762,330 228,090 42,557
Net Asset Value, Offering Price and Redemption Price per
Share....................................................... $ 13.21 $ 9.83 $ 12.70
============ =========== ==========
</Table>
(1) Includes securities on loan for Laudus Rosenberg U.S. Large Capitalization
Growth Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S.
Small Capitalization Fund and Laudus Rosenberg International Small
Capitalization Fund of $6,102,606, $70,971,484, $88,385,432 and $139,234,977
respectively.
(2) Foreign currency at cost for Laudus Rosenberg International Equity Fund,
Laudus Rosenberg International Discovery Fund, Laudus Rosenberg
International Small Capitalization Fund, and Laudus Rosenberg Global
Long/Short Equity Fund was $1,110,333, $1,137,755, $13,156,595, and
$5,030,634, respectively.
See the accompanying notes to the financial statements.
130 Laudus Funds Annual Report
Financial Statements--Statement of Assets and Liabilities continued
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
LAUDUS ROSENBERG INTERNATIONAL U.S. LARGE/MID
LAUDUS ROSENBERG U.S. SMALL LAUDUS ROSENBERG LAUDUS ROSENBERG SMALL CAPITALIZATION
U.S. DISCOVERY CAPITALIZATION INTERNATIONAL INTERNATIONAL CAPITALIZATION LONG/SHORT
FUND FUND EQUITY FUND DISCOVERY FUND FUND EQUITY FUND
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 768,555,449 $ 768,397,335 $107,410,263 $61,530,505 $1,563,357,595 $16,586,992
============== ============== ============ =========== ============== ===========
$ 928,439,355 $1,010,613,511 $127,031,334 $68,779,730 $1,873,438,314 $18,495,591
7,521,000 501,000 -- 983,000 33,108,000 692,469
-------------- -------------- ------------ ----------- -------------- -----------
935,960,355 1,011,114,511 127,031,334 69,762,730 1,906,546,314 19,188,060
-------------- -------------- ------------ ----------- -------------- -----------
-- -- -- -- -- 18,463,415
72,805,635 90,803,224 -- -- 146,492,602 --
1,156,595 946 -- 3,665 343 --
-- -- 1,112,978 1,139,637 13,214,467 --
-- -- -- -- -- --
813,622 1,049,340 579,658 239,979 6,018,382 52,932
1,080,632 1,755,383 351,829 118,010 4,098,902 127,073
-- -- -- -- -- --
7,649,034 16,062,374 6,414,290 864,631 20,628,120 659,257
-- -- 22,810 4,432 193,294 --
-- -- -- -- -- --
50,946 62,319 5,873 2,195 86,703 1,508
-------------- -------------- ------------ ----------- -------------- -----------
1,019,516,819 1,120,848,097 135,518,772 72,135,279 2,097,279,127 38,492,245
-------------- -------------- ------------ ----------- -------------- -----------
$ -- $ -- $ -- $ -- $ -- $18,328,050
============== ============== ============ =========== ============== ===========
-- -- -- -- -- $18,323,387
-- -- 2,517 -- -- --
-- -- 5,057,050 -- -- --
340,033 947,939 989 37,837 1,482,592 14,812
-- -- -- -- -- --
10,179,892 9,798,597 464,793 1,289,285 16,039,517 753,103
72,805,635 90,803,224 -- -- 146,492,602 --
38,727 117,362 3,214 395 69,896 2,317
-- -- -- -- -- 23,079
710,939 806,596 125,947 36,071 1,515,097 10,387
6,129 6,541 1,469 1,342 15,751 1,851
85,356 162,926 18,368 10,758 308,775 1,499
1,034 1,305 623 579 1,180 599
7,009 7,483 6,309 5,939 12,926 3,218
112,156 166,483 28,439 8,475 349,123 34,735
-------------- -------------- ------------ ----------- -------------- -----------
84,286,910 102,818,456 5,709,718 1,390,681 166,287,459 19,168,987
-------------- -------------- ------------ ----------- -------------- -----------
$ 935,229,909 $1,018,029,641 $129,809,054 $70,744,598 $1,930,991,668 $19,323,258
============== ============== ============ =========== ============== ===========
$ 749,201,862 $ 720,292,467 $105,155,093 $59,702,610 $1,473,923,391 $18,431,312
(24,032) (57,016) 327,367 245,660 9,402,286 153,264
18,647,173 55,077,014 4,699,984 2,560,867 104,396,692 (1,867,049)
167,404,906 242,717,176 19,626,610 8,235,461 343,269,299 2,605,731
-------------- -------------- ------------ ----------- -------------- -----------
$ 935,229,909 $1,018,029,641 $129,809,054 $70,744,598 $1,930,991,668 $19,323,258
============== ============== ============ =========== ============== ===========
$ 718,185,259 $ 699,920,974 $ 68,398,249 $19,173,027 $1,048,829,039 $10,175,728
36,264,729 55,689,888 5,036,378 1,591,624 46,265,419 838,115
$ 19.80 $ 12.57 $ 13.58 $ 12.05 $ 22.67 $ 12.14
============== ============== ============ =========== ============== ===========
$ -- $ 48,923,481 $ -- $ -- $ -- $ --
-- 3,962,805 -- -- -- --
$ -- $ 12.35 $ -- $ -- $ -- $ --
============== ============== ============ =========== ============== ===========
$ 217,044,650 $ 269,185,186 $ 61,410,805 $51,571,571 $ 882,162,629 $ 9,147,530
11,081,982 22,020,508 4,534,827 4,285,090 39,416,530 750,454
$ 19.59 $ 12.22 $ 13.54 $ 12.04 $ 22.38 $ 12.19
============== ============== ============ =========== ============== ===========
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
GLOBAL LONG/SHORT VALUE LONG/SHORT
EQUITY FUND EQUITY FUND
----------------- ----------------
$18,233,114 $265,909,634
=========== ============
$19,881,016 $302,181,168
1,180,359 18,114,959
----------- ------------
21,061,375 320,296,127
----------- ------------
14,388,573 303,267,401
-- --
-- --
5,110,977 --
2,964 --
69,871 736,235
57,573 1,513,576
143,715 7,237,339
512,068 6,782,988
24,248 --
-- --
444 15,655
----------- ------------
41,371,808 639,849,321
----------- ------------
$18,939,163 $305,578,183
=========== ============
19,721,130 303,890,759
86,567 --
185,166 --
37,210 666,279
220,981 5,111,573
341,145 4,317,495
-- --
2,163 14,677
39,826 329,120
27,838 409,038
1,607 3,800
2,129 22,517
581 829
9,164 6,548
36,235 81,572
----------- ------------
20,711,742 314,854,207
----------- ------------
$20,660,066 $324,995,114
=========== ============
$19,104,531 $353,049,909
228,620 1,212,644
(716,263) (85,341,356)
2,043,178 56,073,917
----------- ------------
$20,660,066 $324,995,114
=========== ============
$17,004,700 $260,595,548
1,390,939 24,247,756
$ 12.23 $ 10.75
=========== ============
$ -- $ --
-- --
$ -- $ --
=========== ============
$ 3,655,366 $ 64,399,566
301,533 6,059,779
$ 12.12 $ 10.63
=========== ============
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 131
Financial Statements
Statement of Operations for the year ended 3/31/07
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG
U.S. LARGE U.S. LARGE U.S. LARGE LAUDUS ROSENBERG
CAPITALIZATION CAPITALIZATION CAPITALIZATION U.S. DISCOVERY
FUND GROWTH FUND VALUE FUND FUND
---------------- ---------------- ---------------- ----------------
INVESTMENT INCOME:
Dividends(1)................................... $ 1,682,443 $ 710,278 $ 162,609 $10,000,622
Interest....................................... 60,263 38,531 3,290 455,646
Securities lending............................. -- 6,024 -- 280,700
----------- ----------- --------- -----------
Total investment income........................ 1,742,706 754,833 165,899 10,736,968
----------- ----------- --------- -----------
EXPENSES:
Adviser fees................................... 722,534 440,259 56,360 8,486,860
Distribution and shareholder service fees
(Investor Shares)............................ 25,202 5,029 1,070 639,781
Service fees (Adviser Shares).................. -- -- -- --
Professional fees.............................. 49,520 42,238 20,944 116,882
Custodian fees................................. 35,009 11,408 4,491 69,104
Overdraft charges.............................. 7,430 228 115 31,452
Fund accounting and administration fees........ 37,669 41,366 34,363 73,088
Registration and filing fees................... 42,295 45,848 38,789 93,966
Sub-accounting fees (Investor Shares).......... 12,409 2,430 606 334,405
Shareholder report fee......................... 17,318 10,867 1,218 152,242
Transfer agent fees............................ 19,490 16,108 15,644 107,785
Trustees' fees................................. 4,877 6,252 4,196 17,143
Trustees' retirement plan...................... 609 363 48 6,012
Recouped by adviser............................ 32,605 2,112 74 --
Dividend expense for securities sold short..... -- -- -- --
Other expenses................................. 4,548 1,426 1,492 19,883
----------- ----------- --------- -----------
Total expenses before custody credits and
waivers/reimbursements..................... 1,011,515 625,934 179,410 10,148,603
Less custody credits......................... (19) (17) (18) (109)
Less expenses waived/reimbursed by the
Adviser(2)................................. (20,097) (38,530) (103,613) (26,377)
----------- ----------- --------- -----------
Net expenses................................. 991,399 587,387 75,779 10,122,117
----------- ----------- --------- -----------
NET INVESTMENT INCOME.......................... 751,307 167,446 90,120 614,851
----------- ----------- --------- -----------
REALIZED AND UNREALIZED GAINS/(LOSSES) ON
INVESTMENTS
Net realized gains/(losses) on securities and
foreign currency transactions................ 6,522,821 (1,019,951) 667,997 42,825,956
Net realized losses on securities sold short... -- -- -- --
Change in unrealized
appreciation/(depreciation) on investments... 3,731,397 4,581,034 206,286 4,928,724
----------- ----------- --------- -----------
NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON
INVESTMENTS.................................. 10,254,218 3,561,083 874,283 47,754,680
----------- ----------- --------- -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS... $11,005,525 $ 3,728,529 $ 964,403 $48,369,531
=========== =========== ========= ===========
</Table>
(*) For the period May 31, 2006 (commencement of operations) through March 31,
2007.
(1) Net of foreign withholding tax for Laudus Rosenberg U.S. Large
Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus
Rosenberg International Discovery Fund, Laudus Rosenberg International Small
Capitalization Fund, and Laudus Rosenberg Global Long/ Short Equity Fund was
$27, $181,187 $92,569, $2,875,885, and $31,711, respectively.
(2) Includes reimbursement of sub-accounting fees on Investor Shares.
See the accompanying notes to the financial statements.
132 Laudus Funds Annual Report
Financial Statements--Statement of Operations continued
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
LAUDUS ROSENBERG INTERNATIONAL U.S. LARGE/MID LAUDUS ROSENBERG
U.S. SMALL LAUDUS ROSENBERG LAUDUS ROSENBERG SMALL CAPITALIZATION GLOBAL
CAPITALIZATION INTERNATIONAL INTERNATIONAL CAPITALIZATION LONG/SHORT LONG/SHORT
FUND EQUITY FUND DISCOVERY FUND* FUND EQUITY FUND EQUITY FUND
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
$ 11,159,907 $ 2,565,865 $ 1,059,707 $ 35,156,979 $ 409,507 $ 502,158
399,149 98,619 65,443 916,148 1,364,595 1,042,744
540,021 -- -- 1,345,979 -- --
------------- ----------- ----------- ------------ ----------- -----------
12,099,077 2,664,484 1,125,150 37,419,106 1,774,102 1,544,902
------------- ----------- ----------- ------------ ----------- -----------
10,332,828 864,393 469,113 15,538,325 278,672 494,486
713,458 128,048 85,588 1,985,119 29,269 18,981
121,370 -- -- -- -- --
112,757 55,149 22,449 181,293 48,738 43,824
86,628 101,792 154,750 1,018,370 16,605 31,021
47,855 160 1,200 61,073 -- --
38,333 75,362 55,300 199,030 34,000 106,103
54,517 45,657 31,981 136,737 39,189 31,541
295,039 57,383 49,656 927,368 12,934 8,250
189,541 19,071 7,563 263,703 4,073 1,257
81,069 21,588 15,200 259,456 25,075 19,571
28,423 6,215 7,477 29,242 6,239 4,582
7,365 629 349 10,103 182 216
-- 216,860 22 -- 5,160 11,774
-- -- -- -- 400,088 470,253
(61,671) (40,232) 4,053 20,284 1,285 (353)
------------- ----------- ----------- ------------ ----------- -----------
12,047,512 1,552,075 904,701 20,630,103 901,509 1,241,506
(554) (12) (4,288) (2,684) -- --
-- (35,568) (167,493) -- (120,745) (92,459)
------------- ----------- ----------- ------------ ----------- -----------
12,046,958 1,516,495 732,920 20,627,419 780,764 1,149,047
------------- ----------- ----------- ------------ ----------- -----------
52,119 1,147,989 392,230 16,791,687 993,338 395,855
------------- ----------- ----------- ------------ ----------- -----------
150,336,455 6,877,363 2,870,405 208,560,905 3,242,455 917,421
-- -- -- -- (2,648,980) (87,831)
(145,392,179) 11,549,757 8,235,461 82,283,173 (363,200) (1,068,460)
------------- ----------- ----------- ------------ ----------- -----------
4,944,276 18,427,120 11,105,866 290,844,078 230,275 (238,870)
------------- ----------- ----------- ------------ ----------- -----------
$ 4,996,395 $19,575,109 $11,498,096 $307,635,765 $ 1,223,613 $ 156,985
============= =========== =========== ============ =========== ===========
<Caption>
LAUDUS ROSENBERG
VALUE
LONG/SHORT
EQUITY FUND
----------------
$ 2,725,914
13,692,103
--
------------
16,418,017
------------
4,327,917
168,325
--
68,970
89,785
--
73,836
79,128
59,341
49,859
55,876
11,908
1,818
24,328
3,813,316
385
------------
8,824,792
--
(2,516)
------------
8,822,276
------------
7,595,741
------------
17,740,743
(38,074,847)
22,006,563
------------
1,672,459
------------
$ 9,268,200
============
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 133
Financial Statements
Statement of Changes in Net Assets
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
U.S. LARGE U.S. LARGE
CAPITALIZATION FUND CAPITALIZATION GROWTH FUND
---------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006 2007 2006
------------ ------------ ------------ -----------
OPERATIONS:
Net investment income/(loss).............................. $ 751,307 $ 360,927 $ 167,446 $ 48,395
Net realized gains/(losses) from investments.............. 6,522,821 4,948,673 (1,019,951) 27,807
Change in unrealized appreciation/(depreciation) from
investments............................................. 3,731,397 1,301,859 4,581,034 2,884,447
------------ ------------ ------------ -----------
Change in net assets resulting from operations.......... 11,005,525 6,611,459 3,728,529 2,960,649
------------ ------------ ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Institutional Shares.................................... (668,604) (303,600) (135,787) (22,348)
Adviser Shares.......................................... -- -- -- --
Investor Shares......................................... (40,997) (42,138) -- --
------------ ------------ ------------ -----------
(709,601) (345,738) (135,787) (22,348)
------------ ------------ ------------ -----------
Net realized gains on investments
Institutional Shares.................................... (3,045,475) (3,529,019) -- --
Adviser Shares.......................................... -- -- -- --
Investor Shares......................................... (320,576) (668,587) -- --
------------ ------------ ------------ -----------
(3,366,051) (4,197,606) -- --
------------ ------------ ------------ -----------
Return of capital
Institutional Shares.................................... -- -- -- --
Adviser Shares.......................................... -- -- -- --
Investor Shares......................................... -- -- -- --
------------ ------------ ------------ -----------
-- -- -- --
------------ ------------ ------------ -----------
Change in net assets resulting from distributions....... (4,075,652) (4,543,344) (135,787) (23,348)
------------ ------------ ------------ -----------
CAPITAL TRANSACTIONS:
Proceeds from shares issued
Institutional Shares.................................... 58,578,093 26,291,073 36,913,996 39,279,438
Adviser Shares.......................................... -- -- -- --
Investor Shares......................................... 2,449,618 8,190,489 1,064,127 673,860
------------ ------------ ------------ -----------
61,027,711 34,481,562 37,978,123 39,953,298
------------ ------------ ------------ -----------
Distributions reinvested
Institutional Shares.................................... 2,813,571 3,546,531 54,198 23,347
Adviser Shares.......................................... -- -- -- --
Investor Shares......................................... 344,240 706,567 -- --
------------ ------------ ------------ -----------
3,157,811 4,253,098 54,198 23,347
------------ ------------ ------------ -----------
Value of shares redeemed
Institutional Shares(1)................................. (27,058,789) (21,993,309) (9,389,918) (2,637,973)
Adviser Shares.......................................... -- -- -- --
Investor Shares......................................... (3,384,025) (1,832,689) (747,706) (989,955)
------------ ------------ ------------ -----------
(30,442,814) (23,825,998) (10,137,624) (3,627,928)
------------ ------------ ------------ -----------
Change in net assets from capital transactions.......... 33,742,708 14,908,662 27,894,697 36,348,717
------------ ------------ ------------ -----------
Change in net assets........................................ 40,672,581 16,976,777 31,487,439 39,286,018
NET ASSETS:
Beginning of period....................................... 64,321,966 47,345,189 46,235,419 6,949,401
------------ ------------ ------------ -----------
End of period............................................. $104,994,547 $ 64,321,966 $ 77,722,858 $46,235,419
============ ============ ============ ===========
Undistributed net investment income/(loss).................. $ 163,419 $ 121,713 $ 61,427 $ 29,768
============ ============ ============ ===========
</Table>
* For the period May 2, 2005 (commencement of operations) through March 31,
2006.
(1) Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Discovery
Fund included $37,419,391 for shares redeemed in-kind during the year ended
March 31, 2006.
(2) This amount reflects a portion of the distribution made from realized gains
which for tax purposes are reclassified as a return of capital.
See the accompanying notes to the financial statements.
134 Laudus Funds Annual Report
Financial Statements--Statements of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG
U.S. LARGE LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG
CAPITALIZATION VALUE FUND U.S. DISCOVERY FUND U.S. SMALL CAPITALIZATION FUND INTERNATIONAL EQUITY FUND
-------------------------- ----------------------------- ------------------------------- --------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006* 2007 2006 2007 2006 2007 2006
----------- ------------ ------------- ------------- -------------- -------------- ------------ -----------
$ 90,120 $ 99,135 $ 614,851 $ 194,636 $ 52,119 $ (963,291) $ 1,147,989 $ 379,616
667,997 184,484 42,825,956 11,893,542 150,336,455 129,828,692 6,877,363 2,216,620
206,286 795,428 4,928,724 127,182,922 (145,392,179) 88,529,661 11,549,757 4,491,113
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
964,403 1,079,047 48,369,531 139,271,100 4,996,395 217,395,062 19,575,109 7,087,349
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(148,373) (10,558) (1,053,017) -- -- -- (627,740) (199,844)
-- -- -- -- -- -- -- --
(10,519) -- -- -- -- -- (408,740) (113,876)
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(158,892) (10,558) (1,053,017) -- -- -- (1,036,480) (313,720)
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(276,428) (33,243) (17,334,529) (4,990,426) (95,202,915) (112,927,744) (1,295,067) --
-- -- -- -- (5,940,043) (5,842,269) -- --
(21,234) (599) (5,813,751) (2,263,795) (33,618,626) (38,754,189) (1,092,235) --
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(297,662) (33,842) (23,148,280) (7,254,221) (134,761,584) (157,524,202) (2,387,302) --
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
-- -- -- (5,003,953)(2) -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- (2,269,931)(2) -- -- -- --
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
-- -- -- (7,273,884) -- -- -- --
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(456,554) (44,400) (24,201,297) (14,528,105) (134,761,584) (157,524,202) (3,423,782) (313,720)
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
321,271 5,730,362 168,801,668 419,607,853 118,380,094 117,465,558 48,370,879 2,808,525
-- -- -- -- 14,915,237 15,001,645 -- --
702,787 203,857 71,671,762 224,972,095 59,760,279 53,810,720 48,191,782 8,369,324
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
1,024,058 5,934,219 240,473,430 644,579,948 193,055,610 186,277,923 96,562,661 11,177,849
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
419,345 43,801 17,849,454 9,736,549 88,113,447 105,856,770 746,719 199,754
-- -- -- -- 4,445,580 4,545,331 -- --
28,972 599 5,684,793 4,524,500 27,639,151 32,837,156 1,436,598 113,797
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
448,317 44,400 23,534,247 14,261,049 120,198,178 143,239,257 2,183,317 313,551
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(1,857,508) (101,212) (164,345,008) (97,053,288) (334,677,200) (297,001,646) (11,984,261) (1,250,508)
-- -- -- -- (14,904,487) (12,610,680) -- --
(363,352) (72,669) (146,485,470) (43,374,609) (96,464,540) (86,444,438) (13,615,518) (5,088,188)
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(2,220,860) (173,881) (310,830,478) (140,427,897) (446,046,227) (396,056,764) (25,599,779) (6,338,696)
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(748,485) 5,804,738 (46,822,801) 518,413,100 (132,792,439) (66,539,584) 73,146,199 5,152,704
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
(240,636) 6,839,385 (22,654,567) 643,156,095 (262,557,628) (6,668,724) 89,297,526 11,926,333
6,839,385 -- 957,884,476 314,728,381 1,280,587,269 1,287,255,993 40,511,528 28,585,195
----------- ---------- ------------- ------------- -------------- -------------- ------------ -----------
$ 6,598,749 $6,839,385 $ 935,229,909 $ 957,884,476 $1,018,029,641 $1,280,587,269 $129,809,054 $40,511,528
=========== ========== ============= ============= ============== ============== ============ ===========
$ 20,127 $ 88,899 $ (24,032) $ (32,005) $ (57,016) $ (137,207) $ 327,367 $ 84,630
=========== ========== ============= ============= ============== ============== ============ ===========
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 135
Financial Statements
Statement of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
INTERNATIONAL INTERNATIONAL SMALL
DISCOVERY FUND CAPITALIZATION FUND
---------------- --------------------------------
PERIOD ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31,
2007** 2007 2006
---------------- -------------- --------------
OPERATIONS:
Net investment income/(loss).............................. $ 392,230 $ 16,791,687 $ 5,554,481
Net realized gains/(losses) from investments.............. 2,870,405 208,560,905 102,872,084
Change in unrealized appreciation/(depreciation) from
investments............................................. 8,235,461 82,283,173 185,695,003
------------ -------------- --------------
Change in net assets resulting from operations.......... 11,498,096 307,635,765 294,121,568
------------ -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Institutional Shares.................................... (109,953) (14,345,867) (1,827,823)
Adviser Shares.......................................... -- -- --
Investor Shares......................................... (233,195) (10,736,773) (1,346,742)
------------ -------------- --------------
(343,148) (25,082,640) (3,174,565)
------------ -------------- --------------
Net realized gains on investments
Institutional Shares.................................... (30,335) (79,486,024) (20,302,476)
Adviser Shares.......................................... -- -- --
Investor Shares......................................... (82,625) (74,164,191) (31,601,336)
------------ -------------- --------------
(112,960) (153,650,215) (51,903,812)
------------ -------------- --------------
Return of capital
Institutional Shares.................................... -- -- --
Adviser Shares.......................................... -- -- --
Investor Shares......................................... -- -- --
------------ -------------- --------------
-- -- --
------------ -------------- --------------
Change in net assets resulting from distributions....... (456,108) (178,732,855) (55,078,377)
------------ -------------- --------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued
Institutional Shares.................................... 18,758,287 430,184,421 426,872,058
Adviser Shares.......................................... -- -- --
Investor Shares......................................... 53,586,133 215,540,881 492,233,451
------------ -------------- --------------
72,344,420 645,725,302 919,105,509
------------ -------------- --------------
Distributions reinvested
Institutional Shares.................................... 118,690 77,822,309 21,387,217
Adviser Shares.......................................... -- -- --
Investor Shares......................................... 281,821 72,673,365 31,911,673
------------ -------------- --------------
400,511 150,495,674 53,298,890
------------ -------------- --------------
Value of shares redeemed
Institutional Shares.................................... (2,722,783) (226,039,438) (123,787,707)
Adviser Shares.......................................... -- -- --
Investor Shares......................................... (10,319,538) (270,496,667) (211,668,183)
------------ -------------- --------------
(13,042,321) (496,536,105) (335,455,890)
------------ -------------- --------------
Change in net assets from capital transactions.......... 59,702,610 299,684,871 636,948,509
------------ -------------- --------------
Change in net assets........................................ 70,744,598 428,587,781 875,991,700
NET ASSETS:
Beginning of period....................................... -- 1,502,403,887 626,412,187
------------ -------------- --------------
End of period............................................. $ 70,744,598 $1,930,991,668 $1,502,403,887
============ ============== ==============
Undistributed net investment income/(loss).................. $ 245,660 $ 9,402,286 $ 4,390,201
============ ============== ==============
</Table>
** For the period May 31, 2006 (commencement of operations) through March 31,
2007.
See the accompanying notes to the financial statements.
136 Laudus Funds Annual Report
Financial Statements--Statements of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG
U.S. LARGE/MID CAPITALIZATION LAUDUS ROSENBERG LAUDUS ROSENBERG
LONG/SHORT EQUITY FUND GLOBAL LONG/SHORT EQUITY FUND VALUE LONG/SHORT EQUITY FUND
----------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006 2007 2006 2007 2006
------------- ------------- -------------- ------------- ------------- ------------
$ 993,338 $ 557,508 $ 395,855 $ 90,873 $ 7,595,741 $ 2,691,459
593,475 2,128,670 829,590 1,626,336 (20,334,104) (4,800,032)
(363,200) (1,069,485) (1,068,460) 108,253 22,006,563 7,375,303
------------ ------------ ------------ ----------- ------------- ------------
1,223,613 1,616,693 156,985 1,825,462 9,268,200 5,266,730
------------ ------------ ------------ ----------- ------------- ------------
(606,556) (251,087) (519,119) (200,738) (5,816,661) (1,577,788)
-- -- -- -- -- --
(404,695) (135,244) (72,914) (69,731) (1,317,915) (362,192)
------------ ------------ ------------ ----------- ------------- ------------
(1,011,251) (386,331) (592,033) (270,469) (7,134,576) (1,939,980)
------------ ------------ ------------ ----------- ------------- ------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------------ ------------ ------------ ----------- ------------- ------------
-- -- -- -- -- --
------------ ------------ ------------ ----------- ------------- ------------
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
------------ ------------ ------------ ----------- ------------- ------------
-- -- -- -- -- --
------------ ------------ ------------ ----------- ------------- ------------
(1,011,251) (386,331) (592,033) (270,469) (7,134,576) (1,939,980)
------------ ------------ ------------ ----------- ------------- ------------
4,377,140 9,306,425 8,649,114 14,201,601 145,201,890 111,120,458
-- -- -- -- -- --
6,488,812 7,010,365 3,276,912 9,096,950 29,892,979 45,167,332
------------ ------------ ------------ ----------- ------------- ------------
10,865,952 16,316,790 11,926,026 23,298,551 175,094,869 156,287,790
------------ ------------ ------------ ----------- ------------- ------------
596,728 251,087 515,345 200,606 5,200,711 1,550,181
-- -- -- -- -- --
378,487 133,900 68,086 69,446 1,166,200 342,604
------------ ------------ ------------ ----------- ------------- ------------
975,215 384,987 583,431 270,052 6,366,911 1,892,785
------------ ------------ ------------ ----------- ------------- ------------
(14,443,250) (3,189,183) (20,143,179) (2,435,287) (80,914,601) (28,990,015)
-- -- -- -- -- --
(9,554,813) (8,611,151) (10,409,599) (4,783,293) (29,975,740) (18,131,133)
------------ ------------ ------------ ----------- ------------- ------------
(23,998,063) (11,800,334) (30,552,778) (7,218,580) (110,890,341) (47,121,148)
------------ ------------ ------------ ----------- ------------- ------------
(12,156,896) 4,901,443 (18,043,321) 16,350,023 70,571,439 111,059,427
------------ ------------ ------------ ----------- ------------- ------------
(11,944,534) 6,131,805 (18,478,369) 17,905,016 72,705,063 114,386,177
31,267,792 25,135,987 39,138,435 21,233,419 252,290,051 137,903,874
------------ ------------ ------------ ----------- ------------- ------------
$ 19,323,258 $ 31,267,792 $ 20,660,066 $39,138,435 $ 324,995,114 $252,290,051
============ ============ ============ =========== ============= ============
$ 153,264 $ 171,177 $ 228,620 $ (347,272) $ 1,212,644 $ 751,479
============ ============ ============ =========== ============= ============
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 137
Financial Statements
Statement of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG
U.S. LARGE U.S. LARGE CAPITALIZATION U.S. LARGE CAPITALIZATION
CAPITALIZATION FUND GROWTH FUND VALUE FUND
------------------------ -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006 2007 2006 2007 2006*
---------- ---------- ----------- ----------- ---------- ------------
SHARES SOLD:
Institutional.......................... 4,683,826 2,130,792 3,933,323 4,453,595 26,453 568,445
Adviser................................ -- -- -- -- -- --
Investor............................... 196,259 666,482 114,333 74,734 56,943 18,680
---------- ---------- ---------- --------- -------- -------
4,880,085 2,797,274 4,047,656 4,528,329 83,396 587,125
---------- ---------- ---------- --------- -------- -------
ISSUED UPON REINVESTMENT OF
DISTRIBUTIONS:
Institutional.......................... 214,123 296,038 5,570 2,583 33,361 3,900
Adviser................................ -- -- -- -- -- --
Investor............................... 26,158 58,881 -- -- 2,311 53
---------- ---------- ---------- --------- -------- -------
240,281 354,919 5,570 2,583 35,672 3,953
---------- ---------- ---------- --------- -------- -------
SHARES REDEEMED:
Institutional(1)....................... (2,106,330) (1,810,387) (1,005,648) (285,643) (147,151) (9,574)
Adviser................................ -- -- -- -- -- --
Investor............................... (271,271) (150,073) (80,219) (113,020) (28,940) (6,490)
---------- ---------- ---------- --------- -------- -------
(2,377,601) (1,960,460) (1,085,867) (398,663) (176,091) (16,064)
---------- ---------- ---------- --------- -------- -------
CHANGE IN SHARES:
Institutional.......................... 2,791,619 616,443 2,933,245 4,170,535 (87,337) 562,771
Adviser................................ -- -- -- -- -- --
Investor............................... (48,854) 575,290 34,114 (38,286) 30,314 12,243
---------- ---------- ---------- --------- -------- -------
2,742,765 1,191,733 2,967,359 4,132,249 (57,023) 575,014
========== ========== ========== ========= ======== =======
</Table>
* For the period May 2, 2005 (commencement of operations) through March 31,
2006.
** For the period May 31, 2006 (commencement of operations) through March 31,
2007.
(1) Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Discovery
Fund included 2,459,060 for shares redeemed in-kind during the year ended
March 31, 2006.
See the accompanying notes to the financial statements.
138 Laudus Funds Annual Report
Financial Statements--Statements of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG INTERNATIONAL
U.S. DISCOVERY FUND U.S. SMALL CAPITALIZATION FUND INTERNATIONAL EQUITY FUND DISCOVERY FUND
------------------------ ------------------------------- ------------------------- ----------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006 2007 2006 2007 2006 2007**
----------- ---------- -------------- -------------- ----------- ----------- ----------------
8,954,963 24,316,701 9,025,809 8,625,498 4,057,376 267,947 1,838,230
-- -- 1,173,536 1,104,116 -- -- --
3,821,131 13,483,409 4,688,425 4,038,568 3,942,327 789,417 5,240,229
----------- ---------- ----------- ----------- ---------- --------- ----------
12,776,094 37,800,110 14,887,770 13,768,182 7,999,703 1,057,364 7,078,459
----------- ---------- ----------- ----------- ---------- --------- ----------
931,114 561,184 7,100,197 8,328,621 57,930 18,564 10,560
-- -- 364,392 362,178 -- -- --
299,515 262,747 2,288,009 2,637,523 111,624 10,586 25,073
----------- ---------- ----------- ----------- ---------- --------- ----------
1,230,629 823,931 9,752,598 11,328,322 169,554 29,150 35,633
----------- ---------- ----------- ----------- ---------- --------- ----------
(8,657,298) (5,907,480) (25,741,760) (21,868,787) (917,509) (119,864) (257,166)
-- -- (1,172,771) (940,102) -- -- --
(7,948,553) (2,505,790) (7,593,651) (6,436,504) (1,117,813) (500,810) (980,212)
----------- ---------- ----------- ----------- ---------- --------- ----------
(16,605,851) (8,413,270) (34,508,182) (29,245,393) (2,035,322) (620,674) (1,237,378)
----------- ---------- ----------- ----------- ---------- --------- ----------
1,228,779 18,970,405 (9,615,754) (4,914,668) 3,197,797 166,647 1,591,624
-- -- 365,157 526,192 -- -- --
(3,827,907) 11,240,366 (617,217) 239,587 2,936,138 299,193 4,285,090
----------- ---------- ----------- ----------- ---------- --------- ----------
(2,599,128) 30,210,771 (9,867,814) (4,148,889) 6,133,935 465,840 5,876,714
=========== ========== =========== =========== ========== ========= ==========
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 139
Financial Statements
Statement of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
INTERNATIONAL SMALL U.S. LARGE/MID CAPITALIZATION
CAPITALIZATION FUND LONG/SHORT EQUITY FUND
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006 2007 2006
----------- ----------- ----------- -----------
SHARES SOLD:
Institutional.......................................... 20,193,658 22,977,000 358,962 788,858
Investor............................................... 10,203,670 27,951,465 528,308 595,036
----------- ----------- ---------- ----------
30,397,328 50,928,465 887,270 1,383,894
----------- ----------- ---------- ----------
ISSUED UPON REINVESTMENT OF DISTRIBUTIONS:
Institutional.......................................... 3,719,996 1,162,349 49,603 21,479
Investor............................................... 3,514,186 1,752,426 31,306 11,415
----------- ----------- ---------- ----------
7,234,182 2,914,775 80,909 32,894
----------- ----------- ---------- ----------
SHARES REDEEMED:
Institutional.......................................... (10,934,748) (6,873,202) (1,185,354) (272,078)
Investor............................................... (13,086,640) (12,177,417) (779,458) (754,930)
----------- ----------- ---------- ----------
(24,021,388) (19,050,619) (1,964,812) (1,027,008)
----------- ----------- ---------- ----------
CHANGE IN SHARES:
Institutional.......................................... 12,978,906 17,266,147 (776,789) 538,259
Investor............................................... 631,216 17,526,474 (219,844) (148,479)
----------- ----------- ---------- ----------
13,610,122 34,792,621 (996,633) 389,780
=========== =========== ========== ==========
</Table>
See the accompanying notes to the financial statements.
140 Laudus Funds Annual Report
Financial Statements--Statements of Changes in Net Assets continued
<Table>
<Caption>
LAUDUS ROSENBERG LAUDUS ROSENBERG
GLOBAL LONG/SHORT VALUE LONG/SHORT
EQUITY FUND EQUITY FUND
---------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2007 2006 2007 2006
---------- ---------- ----------- ----------
707,333 1,182,558 13,615,380 10,562,660
270,497 769,500 2,806,789 4,340,766
---------- --------- ----------- ----------
977,830 1,952,058 16,422,169 14,903,426
---------- --------- ----------- ----------
42,981 16,773 497,676 147,076
5,722 5,875 112,676 32,848
---------- --------- ----------- ----------
48,703 22,648 610,352 179,924
---------- --------- ----------- ----------
(1,657,449) (204,380) (7,619,121) (2,752,771)
(868,009) (412,483) (2,836,891) (1,752,709)
---------- --------- ----------- ----------
(2,525,458) (616,863) (10,456,012) (4,505,480)
---------- --------- ----------- ----------
(907,135) 994,951 6,493,935 7,956,965
(591,790) 362,892 82,574 2,620,905
---------- --------- ----------- ----------
(1,498,925) 1,357,843 6,576,509 10,577,870
========== ========= =========== ==========
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 141
Financial Statements
Financial Highlights as of 3/31/07
<Table>
<Caption>
INVESTMENT ACTIVITIES
-------------------------------------------
NET ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED FROM
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT
OF PERIOD INCOME/(LOSS) ON INVESTMENTS ACTIVITIES
--------- ------------- -------------- ----------
INSTITUTIONAL SHARES
U.S. LARGE CAPITALIZATION FUND
For the year ended March 31, 2007.................... $12.35 $ 0.10(6) $ 1.27 $ 1.37
For the year ended March 31, 2006.................... 11.79 0.10(6) 1.62 1.72
For the year ended March 31, 2005.................... 10.92 0.11(6) 0.94 1.05
For the year ended March 31, 2004.................... 8.28 0.06(6) 2.62 2.68
June 19, 2002 to March 31, 2003(1)................... 10.00 0.05(6) (1.73) (1.68)
U.S. LARGE CAPITALIZATION GROWTH FUND
For the year ended March 31, 2007.................... 9.26 0.03(6) 0.49 0.52
For the year ended March 31, 2006.................... 8.07 0.02(6) 1.18 1.20
For the year ended March 31, 2005.................... 7.84 0.04(6) 0.23 0.27
For the year ended March 31, 2004.................... 5.95 0.06(6) 1.89 1.95
For the year ended March 31, 2003.................... 7.77 0.07(6) (1.83) (1.76)
U.S. LARGE CAPITALIZATION VALUE FUND
For the year ended March 31, 2007.................... 11.89 0.15(6) 1.45 1.60
May 2, 2005 to March 31, 2006(1)..................... 10.00 0.18(6) 1.79 1.97
U.S. DISCOVERY FUND
For the year ended March 31, 2007.................... 19.23 0.03 1.05 1.08
For the year ended March 31, 2006.................... 15.96 0.02 3.58 3.60
For the year ended March 31, 2005.................... 14.71 0.03(6) 1.44 1.47
For the year ended March 31, 2004.................... 9.55 0.06(6) 5.26 5.32
For the year ended March 31, 2003.................... 11.10 0.04(6) (1.57) (1.53)
U.S. SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... 14.07 0.02 0.11 0.13
For the year ended March 31, 2006.................... 13.50 --(7) 2.43 2.43
For the year ended March 31, 2005.................... 13.82 0.03(6) 1.27 1.30
For the year ended March 31, 2004.................... 8.98 0.05 5.03 5.08
For the year ended March 31, 2003.................... 11.18 0.03(6) (1.93) (1.90)
INTERNATIONAL EQUITY FUND
For the year ended March 31, 2007.................... 11.80 0.07 2.08 2.15
For the year ended March 31, 2006.................... 9.63 0.14 2.15 2.29
For the year ended March 31, 2005.................... 8.46 0.09(6) 1.12 1.21
For the year ended March 31, 2004.................... 5.56 0.08(6) 2.90 2.98
For the year ended March 31, 2003.................... 7.09 0.08(6) (1.55) (1.47)
INTERNATIONAL DISCOVERY FUND
May 31, 2006 to March 31, 2007(1).................... 10.00 0.09(6) 2.06 2.15
INTERNATIONAL SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... 20.97 0.26 3.90 4.16
For the year ended March 31, 2006.................... 16.89 0.13 4.95 5.08
For the year ended March 31, 2005.................... 13.94 0.08(6) 3.53 3.61
For the year ended March 31, 2004.................... 7.92 0.07(6) 6.04 6.11
For the year ended March 31, 2003.................... 8.48 0.09(6) (0.56) (0.47)
U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... 12.08 0.60 --(7) 0.60
For the year ended March 31, 2006.................... 11.44 0.25 0.58 0.83
For the year ended March 31, 2005.................... 10.80 (0.01)(6) 0.65 0.64
For the year ended March 31, 2004.................... 11.51 (0.06)(6) (0.65) (0.71)
For the year ended March 31, 2003.................... 10.22 --(6),(7) 1.31 1.31
GLOBAL LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... 12.31 0.15(6) 0.06 0.21
For the year ended March 31, 2006.................... 11.62 0.05(6) 0.75 0.80
For the year ended March 31, 2005.................... 11.30 (0.12)(6) 0.44 0.32
For the year ended March 31, 2004.................... 11.87 (0.12)(6) (0.45) (0.57)
For the year ended March 31, 2003.................... 10.15 (0.03)(6) 1.73 1.70
VALUE LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... 10.66 0.24 0.09 0.33
For the year ended March 31, 2006.................... 10.51 0.16(6) 0.09 0.25
For the year ended March 31, 2005.................... 9.87 (0.03)(6) 0.67 0.64
For the year ended March 31, 2004.................... 10.48 (0.05)(6) (0.56) (0.61)
For the year ended March 31, 2003.................... 8.96 (0.02)(6) 1.54 1.52
<Caption>
LESS DISTRIBUTIONS FROM
------------------------
NET
NET REALIZED
INVESTMENT GAINS ON RETURN OF TOTAL
INCOME INVESTMENTS CAPITAL DIVIDENDS
---------- ----------- --------- ---------
INSTITUTIONAL SHARES
U.S. LARGE CAPITALIZATION FUND
For the year ended March 31, 2007.................... $(0.09) $(0.42) $ -- $(0.51)
For the year ended March 31, 2006.................... (0.09) (1.07) -- (1.16)
For the year ended March 31, 2005.................... (0.09) (0.09) -- (0.18)
For the year ended March 31, 2004.................... (0.04) -- -- (0.04)
June 19, 2002 to March 31, 2003(1)................... (0.04) -- -- (0.04)
U.S. LARGE CAPITALIZATION GROWTH FUND
For the year ended March 31, 2007.................... (0.02) -- -- (0.02)
For the year ended March 31, 2006.................... (0.01) -- -- (0.01)
For the year ended March 31, 2005.................... (0.04) -- -- (0.04)
For the year ended March 31, 2004.................... (0.06) -- -- (0.06)
For the year ended March 31, 2003.................... (0.06) -- -- (0.06)
U.S. LARGE CAPITALIZATION VALUE FUND
For the year ended March 31, 2007.................... (0.26) (0.49) -- (0.75)
May 2, 2005 to March 31, 2006(1)..................... (0.02) (0.06) -- (0.08)
U.S. DISCOVERY FUND
For the year ended March 31, 2007.................... (0.03) (0.48) -- (0.51)
For the year ended March 31, 2006.................... -- (0.16) (0.17) (0.33)
For the year ended March 31, 2005.................... (0.04) (0.18) -- (0.22)
For the year ended March 31, 2004.................... (0.04) (0.12) -- (0.16)
For the year ended March 31, 2003.................... (0.02) -- -- (0.02)
U.S. SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... -- (1.63) -- (1.63)
For the year ended March 31, 2006.................... -- (1.86) -- (1.86)
For the year ended March 31, 2005.................... (0.03) (1.59) -- (1.62)
For the year ended March 31, 2004.................... (0.04) (0.20) -- (0.24)
For the year ended March 31, 2003.................... (0.03) (0.27) -- (0.30)
INTERNATIONAL EQUITY FUND
For the year ended March 31, 2007.................... (0.12) (0.25) -- (0.37)
For the year ended March 31, 2006.................... (0.12) -- -- (0.12)
For the year ended March 31, 2005.................... (0.04) -- -- (0.04)
For the year ended March 31, 2004.................... (0.08) -- -- (0.08)
For the year ended March 31, 2003.................... (0.07) -- -- (0.07)
INTERNATIONAL DISCOVERY FUND
May 31, 2006 to March 31, 2007(1).................... (0.08) (0.02) -- (0.10)
INTERNATIONAL SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... (0.38) (2.08) -- (2.46)
For the year ended March 31, 2006.................... (0.08) (0.92) -- (1.00)
For the year ended March 31, 2005.................... (0.04) (0.62) -- (0.66)
For the year ended March 31, 2004.................... (0.09) -- -- (0.09)
For the year ended March 31, 2003.................... (0.11) -- -- (0.11)
U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... (0.54) -- -- (0.54)
For the year ended March 31, 2006.................... (0.19) -- -- (0.19)
For the year ended March 31, 2005.................... -- -- -- --
For the year ended March 31, 2004.................... -- -- -- --
For the year ended March 31, 2003.................... (0.03) -- -- (0.03)
GLOBAL LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... (0.29) -- -- (0.29)
For the year ended March 31, 2006.................... (0.11) -- -- (0.11)
For the year ended March 31, 2005.................... -- -- -- --
For the year ended March 31, 2004.................... -- -- -- --
For the year ended March 31, 2003.................... -- -- -- --
VALUE LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... (0.24) -- -- (0.24)
For the year ended March 31, 2006.................... (0.10) -- -- (0.10)
For the year ended March 31, 2005.................... -- -- -- --
For the year ended March 31, 2004.................... -- -- -- --
For the year ended March 31, 2003.................... -- -- -- --
</Table>
(1) From the commencement of operations.
(2) Not annualized for periods less than one year.
(3) Annualized for periods less than one year.
(4) Includes interest expense and dividend expense on securities sold short.
(5) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(6) Calculated based on the average shares outstanding during the period.
(7) Amount less than $0.005.
(8) Exclusive of nonrecurring account fees, extraordinary expenses, interest
expense, and dividends on securities sold short.
(9) The ratios of Expenses before Waivers/Reimbursements and Expenses Net of
Waivers/Reimbursements have been adjusted from 3.57% and 2.78%,
respectively, to more appropriately reflect expenses incurred for the
period.
(10) The ratio of net operating expenses for the Laudus Rosenberg U.S. Large
Capitalization Fund would have been 0.99% if overdraft expenses had not
been included.
See the accompanying notes to the financial statements.
142 Laudus Funds Annual Report
Financial Statements--Financial Highlights continued
<Table>
<Caption>
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------------
NET ASSET NET ASSETS, NET INVESTMENT
VALUE, END OF INCOME/(LOSS) NET EXPENSES EXPENSES
REDEMPTION END OF TOTAL PERIOD OF WAIVERS/ BEFORE WAIVERS/ NET OF WAIVERS/
FEES PERIOD RETURN(2) (000'S) REIMBURSEMENTS(3) REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(4)
---------- --------- --------- ----------- ----------------- --------------------- ---------------------
$ --(7) $13.21 11.10% $ 94,921 0.81% 1.01% 1.00%
-- 12.35 14.90 54,296 0.80 1.14 1.01
-- 11.79 9.66 44,559 0.96 1.23 0.99
--(7) 10.92 32.33 44,301 0.62 1.47 1.00
-- 8.28 (16.78) 14,479 0.80 2.73 0.99
--(7) 9.76 5.62 75,481 0.30 1.05 0.99
-- 9.26 14.85 44,426 0.27 1.34 0.99
--(7) 8.07 3.42 5,056 0.53 2.34 0.99
--(7) 7.84 32.84 5,006 0.80 2.59 0.80
-- 5.95 (22.68) 3,418 1.03 4.55 0.75
--(7) 12.74 13.55 6,058 1.22 2.37 0.99
-- 11.89 19.83 6,694 1.82 2.41 0.49
--(7) 19.80 5.71 718,185 0.17 0.97 0.97
-- 19.23 22.80 673,599 0.15 1.09 1.09
--(7) 15.96 9.98 256,444 0.23 1.20 1.14
--(7) 14.71 55.90 98,077 0.49 1.46 1.14
-- 9.55 (13.83) 18,589 0.38 3.71 1.15
--(7) 12.57 1.11 699,921 0.10 0.95 0.95
-- 14.07 19.46 918,813 0.02 1.04 1.04
--(7) 13.50 9.36 948,225 0.20 1.09 1.09
--(7) 13.82 56.83 954,275 0.45 1.13 1.13
-- 8.98 (17.10) 487,020 0.33 1.29 1.15
--(7) 13.58 18.37 68,398 1.09 1.34 1.34
-- 11.80 23.86 21,688 1.34 1.96 1.34
--(7) 9.63 14.36 16,094 0.96 2.69 1.34
0.01 8.46 53.81 9,914 1.12 4.32 1.35
0.01 5.56 (20.66) 6,368 1.24 5.30 1.35
--(7) 12.05 21.90 19,173 1.06 1.64 1.34
--(7) 22.67 20.82 1,048,829 1.21 1.10 1.10
-- 20.97 30.90 698,064 0.85 1.25 1.25
--(7) 16.89 26.52 270,646 0.50 1.55 1.49
--(7) 13.94 77.37 70,382 0.65 1.94 1.47
0.02 7.92 (5.36) 20,562 1.09 2.60 1.50
--(7) 12.14 4.98 10,176 3.68 3.07 2.67
-- 12.08 7.29 19,512 2.50 3.01 2.71
--(7) 11.44 5.93 12,312 (0.13) 3.23 2.94
--(7) 10.80 (6.17) 20,404 (0.57) 3.22 2.82
0.01 11.51 12.90 26,736 0.01 3.59 2.67
--(7) 12.23 1.77 17,005 1.27 3.68 3.40
-- 12.31 6.91 28,279 0.42 3.31 3.06
-- 11.62 2.83 15,140 (1.04) 4.38 3.82
--(7) 11.30 (4.80) 12,527 (1.11) 3.69(9) 2.91(9)
0.02 11.87 16.95 13,491 (0.28) 4.04 2.50
--(7) 10.75 3.19 260,596 2.70 2.99 2.99
-- 10.66 2.41 189,254 1.51 2.89 2.89
--(7) 10.51 6.48 102,974 (0.28) 3.04 2.98
--(7) 9.87 (5.82) 95,541 (0.46) 2.88 2.77
-- 10.48 16.96 92,356 (0.15) 2.72 2.42
<Caption>
RATIOS/SUPPLEMENTAL DATA
---------------------------------
EXPENSES PORTFOLIO
NET OF WAIVERS/ TURNOVER
REIMBURSEMENTS(3),(8) RATE(5)
--------------------- ---------
1.00%(10) 144.21%
0.99 144.32
0.99 127.89
1.00 141.5
0.99 100.79
0.99 70.73
0.99 78.70
0.99 77.81
0.80 177.43
0.75 68.73
0.99 107.77
0.49 81.30
0.97 85.69
1.09 88.63
1.14 62.60
1.14 93.08
1.15 98.65
0.95 76.00
1.04 69.26
1.09 68.09
1.13 75.65
1.15 70.83
1.34 64.19
1.34 59.40
1.34 52.06
1.35 107.02
1.35 138.85
1.34 105.81
1.10 91.82
1.25 101.86
1.49 59.70
1.47 102.50
1.50 129.34
1.24 168.86
1.24 212.62
1.24 180.14
1.25 189.35
1.25 185.66
1.99 233.95
1.99 178.43
1.99 152.24
1.81 175.85
1.50 189.09
1.66 139.74
1.74 121.80
1.74 111.19
1.75 76.36
1.74 209.95
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 143
Financial Statements
Financial Highlights as of 3/31/07
<Table>
<Caption>
INVESTMENT ACTIVITIES
-------------------------------------------
NET ASSET NET REALIZED TOTAL
VALUE, NET AND UNREALIZED FROM
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT
OF PERIOD INCOME/(LOSS) ON INVESTMENTS ACTIVITIES
--------- ------------- -------------- ----------
ADVISER SHARES
U.S. SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... $13.88 $(0.02) $ 0.12 $ 0.10
For the year ended March 31, 2006.................... 13.38 (0.02) 2.38 2.36
For the year ended March 31, 2005.................... 13.71 --(6),(7) 1.26 1.26
For the year ended March 31, 2004.................... 8.91 0.02 5.00 5.02
For the year ended March 31, 2003.................... 11.12 0.01(6) (1.93) (1.92)
INVESTOR SHARES
U.S. LARGE CAPITALIZATION FUND
For the year ended March 31, 2007.................... 12.36 0.07(6) 1.25 1.32
For the year ended March 31, 2006.................... 11.81 0.06(6) 1.63 1.69
For the year ended March 31, 2005.................... 10.96 0.08(6) 0.93 1.01
For the year ended March 31, 2004.................... 8.31 0.02(6) 2.63 2.65
July 31, 2002 to March 31, 2003(1)................... 8.88 0.05(6) (0.62) (0.57)
U.S. LARGE CAPITALIZATION GROWTH FUND
For the year ended March 31, 2007.................... 9.33 --(6),(7) 0.50 0.50
For the year ended March 31, 2006.................... 8.15 (0.01)(6) 1.19 1.18
For the year ended March 31, 2005.................... 7.92 0.02(6) 0.23 0.25
August 15, 2003 to March 31, 2004(1)................. 6.95 0.09(6) 0.92 1.01
U.S. LARGE CAPITALIZATION VALUE FUND
For the year ended March 31, 2007.................... 11.87 0.11(6) 1.45 1.56
May 2, 2005 to March 31, 2006(1)..................... 10.00 0.13(6) 1.80 1.93
U.S. DISCOVERY FUND
For the year ended March 31, 2007.................... 19.07 (0.06) 1.06 1.00
For the year ended March 31, 2006.................... 15.88 (0.03) 3.55 3.52
For the year ended March 31, 2005.................... 14.66 (0.05)(6) 1.47 1.42
For the year ended March 31, 2004.................... 9.53 0.01(6) 5.24 5.25
For the year ended March 31, 2003.................... 11.08 0.02(6) (1.57) (1.55)
U.S. SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... 13.77 (0.03) 0.11 0.08
For the year ended March 31, 2006.................... 13.30 (0.04) 2.37 2.33
For the year ended March 31, 2005.................... 13.65 (0.02)(6) 1.26 1.24
For the year ended March 31, 2004.................... 8.88 0.01 4.98 4.99
For the year ended March 31, 2003.................... 11.08 --(6),(7) (1.92) (1.92)
INTERNATIONAL EQUITY FUND
For the year ended March 31, 2007.................... 11.77 0.14 1.97 2.11
For the year ended March 31, 2006.................... 9.61 0.10 2.14 2.24
For the year ended March 31, 2005.................... 8.47 0.06(6) 1.11 1.17
For the year ended March 31, 2004.................... 5.57 0.03(6) 2.93 2.96
For the year ended March 31, 2003.................... 7.05 0.07(6) (1.54) (1.47)
INTERNATIONAL DISCOVERY FUND
May 31, 2006 to March 31, 2007(1).................... 10.00 0.06(6) 2.06 2.12
INTERNATIONAL SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... 20.74 0.20 3.82 4.02
For the year ended March 31, 2006.................... 16.73 0.08 4.89 4.97
For the year ended March 31, 2005.................... 13.83 0.03(6) 3.51 3.54
For the year ended March 31, 2004.................... 7.87 0.03(6) 6.01 6.04
For the year ended March 31, 2003.................... 8.43 0.08(6) (0.57) (0.49)
U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... 12.12 0.50 0.05 0.55
For the year ended March 31, 2006.................... 11.46 0.22 0.59 0.81
For the year ended March 31, 2005.................... 10.86 (0.04)(6) 0.64 0.60
For the year ended March 31, 2004.................... 11.61 (0.10)(6) (0.65) (0.75)
For the year ended March 31, 2003.................... 10.34 (0.05)(6) 1.33 1.28
GLOBAL LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... 12.16 0.12(6) 0.05 0.17
For the year ended March 31, 2006.................... 11.49 0.01(6) 0.74 0.75
For the year ended March 31, 2005.................... 11.21 (0.17)(6) 0.43 0.26
For the year ended March 31, 2004.................... 11.81 (0.17)(6) (0.43) (0.60)
For the year ended March 31, 2003.................... 10.13 (0.09)(6) 1.75 1.66
VALUE LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... 10.55 0.26 0.03 0.29
For the year ended March 31, 2006.................... 10.41 0.12(6) 0.10 0.22
For the year ended March 31, 2005.................... 9.81 (0.06)(6) 0.66 0.60
For the year ended March 31, 2004.................... 10.43 (0.09)(6) (0.53) (0.62)
For the year ended March 31, 2003.................... 8.95 (0.05)(6) 1.53 1.48
<Caption>
LESS DISTRIBUTIONS FROM
------------------------
NET
NET REALIZED
INVESTMENT GAINS ON RETURN OF TOTAL
INCOME INVESTMENTS CAPITAL DIVIDENDS
---------- ----------- --------- ---------
ADVISER SHARES
U.S. SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... $ -- $(1.63) $ -- $(1.63)
For the year ended March 31, 2006.................... -- (1.86) -- (1.86)
For the year ended March 31, 2005.................... -- (1.59) -- (1.59)
For the year ended March 31, 2004.................... (0.02) (0.20) -- (0.22)
For the year ended March 31, 2003.................... (0.02) (0.27) -- (0.29)
INVESTOR SHARES
U.S. LARGE CAPITALIZATION FUND
For the year ended March 31, 2007.................... (0.05) (0.42) -- (0.47)
For the year ended March 31, 2006.................... (0.07) (1.07) -- (1.14)
For the year ended March 31, 2005.................... (0.07) (0.09) -- (0.16)
For the year ended March 31, 2004.................... -- -- -- --
July 31, 2002 to March 31, 2003(1)................... -- -- -- --
U.S. LARGE CAPITALIZATION GROWTH FUND
For the year ended March 31, 2007.................... -- -- -- --
For the year ended March 31, 2006.................... -- -- -- --
For the year ended March 31, 2005.................... (0.02) -- -- (0.02)
August 15, 2003 to March 31, 2004(1)................. (0.04) -- -- (0.04)
U.S. LARGE CAPITALIZATION VALUE FUND
For the year ended March 31, 2007.................... (0.24) (0.49) -- (0.73)
May 2, 2005 to March 31, 2006(1)..................... -- (0.06) -- (0.06)
U.S. DISCOVERY FUND
For the year ended March 31, 2007.................... -- (0.48) -- (0.48)
For the year ended March 31, 2006.................... -- (0.16) (0.17) (0.33)
For the year ended March 31, 2005.................... (0.02) (0.18) -- (0.20)
For the year ended March 31, 2004.................... -- (0.12) -- (0.12)
For the year ended March 31, 2003.................... -- -- -- --
U.S. SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... -- (1.63) -- (1.63)
For the year ended March 31, 2006.................... -- (1.86) -- (1.86)
For the year ended March 31, 2005.................... -- (1.59) -- (1.59)
For the year ended March 31, 2004.................... (0.02) (0.20) -- (0.22)
For the year ended March 31, 2003.................... (0.01) (0.27) -- (0.28)
INTERNATIONAL EQUITY FUND
For the year ended March 31, 2007.................... (0.09) (0.25) -- (0.34)
For the year ended March 31, 2006.................... (0.08) -- -- (0.08)
For the year ended March 31, 2005.................... (0.03) -- -- (0.03)
For the year ended March 31, 2004.................... (0.08) -- -- (0.08)
For the year ended March 31, 2003.................... (0.02) -- -- (0.02)
INTERNATIONAL DISCOVERY FUND
May 31, 2006 to March 31, 2007(1).................... (0.06) (0.02) -- (0.08)
INTERNATIONAL SMALL CAPITALIZATION FUND
For the year ended March 31, 2007.................... (0.30) (2.08) -- (2.38)
For the year ended March 31, 2006.................... (0.04) (0.92) -- (0.96)
For the year ended March 31, 2005.................... (0.02) (0.62) -- (0.64)
For the year ended March 31, 2004.................... (0.08) -- -- (0.08)
For the year ended March 31, 2003.................... (0.09) -- -- (0.09)
U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... (0.49) -- -- (0.49)
For the year ended March 31, 2006.................... (0.15) -- -- (0.15)
For the year ended March 31, 2005.................... -- -- -- --
For the year ended March 31, 2004.................... -- -- -- --
For the year ended March 31, 2003.................... (0.02) -- -- (0.02)
GLOBAL LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... (0.21) -- -- (0.21)
For the year ended March 31, 2006.................... (0.08) -- -- (0.08)
For the year ended March 31, 2005.................... -- -- -- --
For the year ended March 31, 2004.................... -- -- -- --
For the year ended March 31, 2003.................... -- -- -- --
VALUE LONG/SHORT EQUITY FUND
For the year ended March 31, 2007.................... (0.21) -- -- (0.21)
For the year ended March 31, 2006.................... (0.08) -- -- (0.08)
For the year ended March 31, 2005.................... -- -- -- --
For the year ended March 31, 2004.................... -- -- -- --
For the year ended March 31, 2003.................... -- -- -- --
</Table>
(1) From the commencement of operations.
(2) Not annualized for periods less than one year.
(3) Annualized for periods less than one year.
(4) Includes interest expense and dividend expense on securities sold short.
(5) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(6) Calculated based on the average shares outstanding during the period.
(7) Amount less than $0.005.
(8) Exclusive of nonrecurring account fees, extraordinary expenses, interest
expense, and dividends on securities sold short.
(9) The ratios of Expenses before Waivers/Reimbursements and Expenses Net of
Waivers/Reimbursements have been adjusted from 3.89% and 3.11%,
respectively, to more appropriately reflect expenses incurred for the
period.
(10) The ratio of net operating expenses for the Laudus U.S. Large
Capitalization Fund would have been 1.29% if overdraft expenses had not
been included.
See the accompanying notes to the financial statements.
144 Laudus Funds Annual Report
Financial Statements--Financial Highlights continued
<Table>
<Caption>
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------------------
NET ASSET NET ASSETS, NET INVESTMENT
VALUE, END OF INCOME/(LOSS) NET EXPENSES EXPENSES
REDEMPTION END OF TOTAL PERIOD OF WAIVERS/ BEFORE WAIVERS/ NET OF WAIVERS/
FEES PERIOD RETURN(2) (000'S) REIMBURSEMENTS(3) REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(4)
---------- --------- --------- ----------- ----------------- --------------------- ---------------------
$ --(7) $12.35 0.90% $ 48,923 (0.14)% 1.20% 1.20%
-- 13.88 19.09 49,952 (0.24) 1.32 1.32
--(7) 13.38 9.12 41,104 (0.01) 1.31 1.31
--(7) 13.71 56.53 44,059 0.19 1.40 1.40
-- 8.91 (17.35) 25,973 0.07 1.54 1.40
--(7) 13.21 10.69 10,074 0.52 1.38 1.30
-- 12.36 14.57 10,026 0.50 1.52 1.34
-- 11.81 9.22 2,786 0.69 1.58 1.35
--(7) 10.96 31.89 590 0.24 1.51 1.25
-- 8.31 (6.42) 666 0.87 3.05 1.25
--(7) 9.83 5.36 2,242 (0.01) 1.43 1.29
-- 9.33 14.48 1,810 (0.12) 1.91 1.33
--(7) 8.15 3.14 1,894 0.21 2.68 1.32
--(7) 7.92 14.50 1,479 1.12 2.72 1.11
-- 12.70 13.22 540 0.90 2.75 1.29
-- 11.87 19.33 145 1.31 2.78 0.96
--(7) 19.59 5.34 217,045 (0.21) 1.35 1.34
-- 19.07 22.40 284,285 (0.20) 1.43 1.43
--(7) 15.88 9.70 58,284 (0.30) 1.55 1.49
--(7) 14.66 55.22 2,581 0.04 1.63 1.40
-- 9.53 (13.99) 104 0.20 6.18 1.40
--(7) 12.22 0.75 269,185 (0.25) 1.30 1.30
-- 13.77 18.98 311,822 (0.33) 1.39 1.39
--(7) 13.30 9.00 297,927 (0.15) 1.43 1.43
--(7) 13.65 56.40 272,481 0.11 1.47 1.47
-- 8.88 (17.42) 136,293 (0.02) 1.63 1.49
--(7) 13.54 18.08 61,411 1.17 1.71 1.64
-- 11.77 23.41 18,824 1.02 2.33 1.72
--(7) 9.61 13.79 12,491 0.65 2.96 1.72
0.02 8.47 53.61 2,881 0.45 4.46 1.59
0.01 5.57 (20.73) 17 1.06 5.27 1.60
--(7) 12.04 21.62 51,572 0.75 2.03 1.64
--(7) 22.38 20.35 882,163 0.87 1.47 1.47
-- 20.74 30.48 804,340 0.42 1.60 1.60
--(7) 16.73 26.16 355,766 0.20 1.88 1.83
--(7) 13.83 76.91 82,780 0.28 2.18 1.75
0.02 7.87 (5.53) 16,834 0.99 2.93 1.78
0.01 12.19 4.68 9,148 3.40 3.46 2.98
-- 12.12 7.09 11,755 2.14 3.31 3.02
--(7) 11.46 5.52 12,824 (0.33) 3.55 3.26
--(7) 10.86 (6.46) 8,693 (0.93) 3.51 3.12
0.01 11.61 12.49 16,251 (0.45) 3.91 3.07
--(7) 12.12 1.45 3,655 0.98 4.04 3.78
-- 12.16 6.58 10,859 0.10 3.68 3.41
0.02 11.49 2.50 6,094 (1.57) 4.80 4.27
--(7) 11.21 (5.08) 8,533 (1.50) 4.01(9) 3.23(9)
0.02 11.81 16.58 9,474 (0.80) 4.42 2.92
--(7) 10.63 2.81 64,400 2.41 3.28 3.28
-- 10.55 2.08 63,036 1.17 3.22 3.22
--(7) 10.41 6.12 34,930 (0.55) 3.37 3.30
--(7) 9.81 (5.94) 34,081 (0.90) 3.18 3.06
-- 10.43 16.54 38,473 (0.43) 2.97 2.69
<Caption>
RATIOS/SUPPLEMENTAL DATA
---------------------------------
EXPENSES PORTFOLIO
NET OF WAIVERS/ TURNOVER
REIMBURSEMENTS(3),(8) RATE(5)
--------------------- ---------
1.20% 76.00%
1.32 69.26
1.31 68.09
1.40 75.65
1.40 70.83
1.30(10) 144.21
1.33 144.32
1.35 127.89
1.25 141.50
1.25 100.79
1.29 70.73
1.33 78.70
1.32 77.81
1.39 177.43
1.29 107.77
0.96 81.30
1.34 85.69
1.43 88.63
1.49 62.60
1.40 93.08
1.40 98.65
1.30 76.00
1.39 69.26
1.43 68.09
1.47 75.65
1.49 70.83
1.64 64.19
1.72 59.40
1.72 52.06
1.59 107.02
1.60 138.85
1.64 105.81
1.47 91.82
1.60 101.86
1.83 59.70
1.75 102.50
1.78 129.34
1.54 168.86
1.59 212.62
1.61 180.14
1.55 189.35
1.54 185.66
2.29 233.95
2.29 178.43
2.34 152.24
2.14 175.85
1.80 189.09
1.99 139.74
2.06 121.80
2.06 111.19
2.05 76.36
2.02 209.95
</Table>
See the accompanying notes to the financial statements.
Laudus Funds Annual Report 145
Financial Statements
Notes to Financial Statements as of 3/31/07
1. ORGANIZATION.
Laudus Trust, (the "Trust") was established as a Massachusetts business trust
under the laws of Massachusetts on April 1, 1988. The Trust is an open-end
diversified management investment company consisting of twelve portfolios,
eleven of which were operational, as of March 31, 2007 (individually, a "Fund"
and collectively the "Funds");
Laudus Rosenberg U.S. Large Capitalization Fund,
Laudus Rosenberg U.S. Large Capitalization Growth
Fund,
Laudus Rosenberg U.S. Large Capitalization Value Fund,
Laudus Rosenberg U.S. Discovery Fund,
Laudus Rosenberg U.S. Small Capitalization Fund,
Laudus Rosenberg International Equity Fund,
Laudus Rosenberg International Discovery Fund,
Laudus Rosenberg International Small Capitalization
Fund,
Laudus Rosenberg U.S. Large/Mid Capitalization
Long/Short Equity Fund,
Laudus Rosenberg Global Long/Short Equity Fund, Laudus Rosenberg Value
Long/Short Equity Fund.
As of March 31, 2007, the Laudus Rosenberg U.S. Long/Short Equity Fund was not
operational. As of October 15, 2004 and May 1, 2006 the Laudus Rosenberg U.S.
Small Capitalization Fund and the Laudus Rosenberg U.S. Discovery Fund,
respectively, were closed to new investors. The Laudus Rosenberg International
Small Capitalization Fund closed to new investors on December 31, 2005, and as
of May 31, 2007, the Fund will close to all investors, except the Fund will
continue to offer shares to certain qualified retirement plans and through
reinvestment of dividends and capital gains. As of May 31, 2006, the Laudus
Rosenberg International Discovery Fund commenced operation.
Each Fund is authorized to issue an unlimited number of Institutional Shares and
Investor Shares of no par value, and the Laudus Rosenberg U.S. Small
Capitalization Fund is also authorized to issue an unlimited number of Adviser
Shares of no par value. Each class of shares generally has identical rights and
preferences, except that each class is subject to different eligibility
conditions, bears different distribution and sub-transfer agent expenses, and
has separate voting rights on matters pertaining solely to that class of shares.
Under the Funds' organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts with their vendors and others that provide for general
indemnifications. The Funds' maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Funds.
However, based on experience, the Funds expect that risk of loss to be remote.
2. SIGNIFICANT ACCOUNTING POLICIES.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual amounts could differ from those estimates. The
following is a summary of significant accounting policies followed by the Trust
in the preparation of its financial statements.
SECURITY VALUATION
Each Fund uses approved pricing services to provide values for its portfolio
securities. Current market values are generally determined by the approved
pricing services as follows: securities traded on stock exchanges are valued at
the last-quoted sales price on the exchange on which such securities are
primarily traded (closing values), or, lacking any sales, at the mean between
the bid and ask prices; securities traded in the over-the-counter market are
valued at the last sales price that day, or, if there are no sales that day, at
the mean between the bid and ask prices. In addition, securities that are
primarily traded on foreign exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges with these
values then translated into U.S. dollars at the current exchange rate.
Securities may be fair valued pursuant to procedures approved by the Funds'
Board of Trustees when approved pricing services do not provide a value for a
security, a furnished price appears manifestly incorrect or events occur prior
to the close of the New York Stock Exchange that materially affect the furnished
price.
Other investment companies are valued at their respective net asset values as
determined by those funds, in
146 Laudus Trust Annual Report
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
accordance with the Investment Company Act of 1940 for a given day.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME
Changes in holdings of portfolio securities are reflected no later than on the
first business day following the trade date. However, for financial reporting
purposes, portfolio security transactions are reported on trade date. Net
realized gains or losses from sales of securities are determined on the specific
identification cost method. Interest income and expenses are recognized on the
accrual basis. Dividend income, less foreign taxes withheld, (if any) and
dividend expenses are recorded on the ex-dividend date. Interest income is
recorded as earned.
FOREIGN CURRENCY TRANSACTIONS
The accounting records of the Funds are maintained in U.S. dollars. All monetary
items denominated in foreign currencies are translated to U.S. dollars based
upon the prevailing exchange rate at the close of each business day. Net
realized gains and losses on foreign currency transactions represent net gains
and losses from currency gains and losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amount of net investment income accrued and the U.S. dollar amount actually
received. Further, the effects of changes in foreign currency exchange rates on
investments in securities are not segregated in the Statement of Operations from
the effects of changes in market prices of those securities, but are included
with the net realized gain or loss and unrealized appreciation or depreciation
on investments.
FORWARD FOREIGN CURRENCY CONTRACTS
Forward foreign currency contracts are valued at the daily exchange rate of the
underlying currency. The forward foreign currency contracts are adjusted by the
daily exchange rate of the underlying currency and any gains or losses are
recorded for financial statement purposes as unrealized appreciation or
depreciation until the contractual settlement date. Gains or losses from the
purchase or sale of forward foreign currency contracts are recorded as realized
on the settlement date.
FOREIGN SECURITIES
The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International
Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, and
Laudus Rosenberg Global Long/Short Equity Fund pursue their respective
objectives by investing in foreign securities. Investments in securities of
foreign issuers involve certain risks that are less significant for investments
in securities of U.S. issuers. These include risks of adverse changes in foreign
economic, political, regulatory and other conditions, and changes in currency
exchange rates or exchange control regulations (including currency blockage).
The Funds may be unable to obtain and enforce judgments against foreign
entities, and issuers of foreign securities are subject to different, and often
less comprehensive, accounting, reporting and disclosure requirements than
domestic issuers. Also, the securities of some foreign companies may be less
liquid and at times more volatile than securities of comparable U.S. companies.
REAL ESTATE INVESTMENT TRUSTS
Several Funds may own shares of real estate investment trusts ("REITs") which
report information on the source of their distributions annually. Certain
distributions received from REITs during the year, which are known to be a
return of capital, are recorded as a reduction to the cost of the individual
REIT.
REPURCHASE AGREEMENTS
In a repurchase agreement, a Fund buys a security from another party (usually a
financial institution) with the agreement that the security will be sold back in
the future. The date, price and other conditions are all specified when the
agreement is created.
The Funds' repurchase agreements are currently fully collateralized by U.S.
Government Securities. All collateral is held by the Funds' Custodian (or, with
tri-party agreements, the agent's bank) and is monitored daily to ensure that
its market value is at least equal to the repurchase price under the agreement.
SHORT SALES
The Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund,
Laudus Rosenberg Global Long/Short Equity Fund and Laudus Rosenberg Value
Long/Short Equity Fund are authorized to engage in short sales. Short sales are
transactions in which a Fund sells a security it does not own, in anticipation
of a decline in the market value of that security. To complete such a
transaction, the Fund must borrow the security to
Laudus Trust Annual Report 147
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
deliver to the buyer upon the short sale; the Fund is then obligated to replace
the security borrowed by purchasing the security at current market value
sometime in the future. The Fund will incur a loss if the price of the security
increases between the date of the short sale and the date on which the Fund
replaces the borrowed security. The Fund will realize a gain if the price of the
security declines between those dates. The potential for losses associated with
short positions is much greater than the original value of the securities sold
short and may exceed the market value of securities sold short recorded in the
Statement of Assets and Liabilities. Until the Fund replaces the borrowed
security, the Fund will maintain a segregated account at the Custodian Bank with
cash, U.S. Government Securities and/or securities held long by the portfolio to
sufficiently cover its short position on a daily basis. The collateral for the
securities sold short includes the Deposits with Broker and Custodian Bank as
shown in the Statement of Assets and Liabilities and the securities held long as
shown in the Statement of Portfolio Investments. Interest accrued or dividends
paid on Securities Sold Short are recorded as an expense on the Fund's records.
SECURITIES LENDING
Under the Securities Lending Program, securities held by the Laudus Rosenberg
U.S. Large Capitalization Growth Fund, the Laudus Rosenberg U.S. Discovery Fund,
the Laudus Rosenberg U.S. Small Capitalization Fund and the Laudus Rosenberg
International Small Capitalization Fund are loaned by State Street Corporation,
as agent, to certain brokers (the "Borrowers"). The Borrowers provide cash or
U.S. Government securities as collateral against loans in an amount at least
equal to 100% of the market value of the loaned securities.
The cash collateral of securities loaned is invested in high quality, short-term
investments such as money market funds and U.S. government securities. The
investments of collateral are marked-to-market daily and the value of the
collateral must be at least 100% of the market value of the loan securities each
day.
At March 31, 2007, the following Funds had collateral and loans outstanding of:
<Table>
<Caption>
Value of
Value of Loaned
Collateral Securities
- -------------------------------------------------------------
Laudus Rosenberg U.S. Large
Capitalization Growth Fund.... $ 6,243,025 $ 6,102,606
Laudus Rosenberg U.S. Discovery
Fund.......................... 72,805,635 70,971,484
Laudus Rosenberg U.S. Small
Capitalization Fund........... 90,803,224 88,385,432
Laudus Rosenberg International
Small Capitalization Fund..... 146,492,602 139,234,977
</Table>
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION
Expenses directly attributable to a Fund are charged to that Fund; expenses not
directly attributable to a Fund are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on another
reasonable basis. Expenses specific to a class are charged to that class.
Expenses other than class specific expenses are allocated daily to each class
based upon the proportion of relative net assets or another reasonable basis.
The investment income and expenses of the Fund (other than class specific
expenses charged to a class) and realized and unrealized gains and losses on
investments of the Fund are allocated to each class of shares based upon
relative net assets on the date income is earned, or expenses and
realized/unrealized gains and losses are incurred.
DISTRIBUTIONS
Distributions to shareholders are recorded on the ex-dividend date.
Distributions are made annually on a tax basis, which may differ from
distribution amounts determined under accounting principles generally accepted
in the United States of America. These differences are primarily due to
differing treatments for foreign currency transactions, REITs, and wash sales
for book and tax purposes.
FEDERAL INCOME TAXES
It is the Funds' policy to comply with the requirements of the Internal Revenue
Code under Subchapter M, applicable to regulated investments companies, and to
distribute substantially all of its taxable income, including any net realized
gain on investments, to its shareholders. Therefore, no provisions are made for
federal income taxes.
148 Laudus Trust Annual Report
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
CUSTODY CREDIT
Each fund has an arrangement with its custodian bank under which the fund
receives a credit for its uninvested cash balance to offset its custody fees and
accounting fees. The credit amounts are disclosed in the Statement of Operations
as a reduction to the Funds' total expenses.
NEW ACCOUNTING STANDARDS
Financial Accounting Standards Board Interpretation (FIN) No. 48 -- Accounting
for Uncertainty in Income Taxes -- an Interpretation of SFAS No. 109, was issued
in July 2006 and is effective for fiscal years beginning after December 15,
2006. A Fund with a fiscal year ending March 31 will implement FIN 48 no later
than September 28, 2007, and it will apply to all open tax years. This
Interpretation provides new requirements for the recognition, measurement, and
disclosure in the financial statements of a tax position taken or expected to be
taken in a tax return when there is uncertainty about whether that tax position
will ultimately be sustained. We have not yet completed our evaluation of the
impact, if any, of adopting FIN 48 on the Funds' financial statements.
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
(SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in accordance with generally accepted accounting principles
and expands disclosure about fair value measurements. SFAS No. 157 is effective
for fiscal years beginning after November 15, 2007. Management is currently
evaluating the impact the adoption of SFAS No. 157 will have on the Funds'
financial statement disclosures.
3. MANAGEMENT, ADMINISTRATION, FUND ACCOUNTING, DISTRIBUTION AND SHAREHOLDER
SERVICE AGREEMENTS.
The Trust's Board of Trustees oversees the general conduct of the Trust and the
Funds.
Charles Schwab Investment Management, Inc. ("CSIM" or the "Manager") is the
investment adviser of the Funds and manages the Funds' business, subject to the
supervision of the Board of Trustees. AXA Rosenberg Investment Management LLC
("AXA Rosenberg"), the Funds' sub-adviser, provides day-to-day portfolio
management services to the Funds, subject to the supervision of CSIM.
The Funds pay CSIM an advisory fee for these services on a monthly basis.
CSIM -- and not the Funds -- pays a portion of the advisory fees it receives to
AXA Rosenberg in return for its services.
The table below sets forth the advisory fee rates payable to CSIM by each Fund.
<Table>
<Caption>
Agreement Rate*
- -------------------------------------------------------------------
Laudus Rosenberg U.S. Large
Capitalization Fund........... 1st $1 billion-0.75%
$1 billion to $2 billion-0.70%
Over $2 billion-0.675%
Laudus Rosenberg U.S. Large
Capitalization Growth Fund.... 1st $1 billion-0.75%
$1 billion to $2 billion-0.70%
Over $2 billion-0.675%
Laudus Rosenberg U.S. Large
Capitalization Value Fund..... 1st $1 billion-0.75%
$1 billion to $2 billion-0.70%
Over $2 billion-0.675%
Laudus Rosenberg U.S. Discovery
Fund.......................... 1st $1 billion-0.90%
Over $1 billion-0.85%
Laudus Rosenberg U.S. Small
Capitalization Fund........... 0.90%
Laudus Rosenberg International
Equity Fund................... 1st $1 billion-0.85%
$1 billion to $2 billion-0.80%
Over $2 billion-0.775%
Laudus Rosenberg International
Discovery Fund................ 1st $1 billion-1.00%
Over $1 billion-0.95%
Laudus Rosenberg International
Small Capitalization Fund..... 1st $500 million-1.00%
Over $500 million-0.95%
Laudus Rosenberg U.S. Large/Mid
Capitalization Long/Short
Equity Fund................... 1st $500 million-1.00%
Over $500 million-0.95%
Laudus Rosenberg Global Long/
Short Equity Fund............. 1st $500 million-1.50%
Over $500 million-1.45%
Laudus Rosenberg Value Long/
Short Equity Fund............. 1st $500 million-1.50%
Over $500 million-1.45%
</Table>
* The advisory fee payable to CSIM varies based on fund assets.
The Funds may, from time to time, execute portfolio trades with affiliated
brokers/dealers. For the period ended March 31, 2007, the Funds paid no
brokerage fees on the execution of portfolio trades with affiliated
brokers/dealers.
CSIM has contractually agreed, until at least July 30, 2009, to waive its
management fee and bear certain expenses and fees of each Fund. As such, CSIM
further
Laudus Trust Annual Report 149
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
agrees to reimburse the Funds to limit the annual expenses, exclusive of
nonrecurring account fees, fees on securities transactions such as exchange
fees, dividends and interest on securities sold short, service fees, interest
(overdraft charges), taxes brokerage commissions, other expenditures which are
capitalized in accordance with generally accepted accounting principles, and
other extraordinary expenses not incurred in the ordinary course of the Fund's
business as follows:
<Table>
<Caption>
Institutional Investor
Shares Shares
- ---------------------------------------------------------------
Laudus Rosenberg U.S. Large
Capitalization Fund............. 0.99% 1.29%
Laudus Rosenberg U.S. Large
Capitalization Growth Fund...... 0.99% 1.29%
Laudus Rosenberg U.S. Large
Capitalization Value Fund....... 0.99% 1.29%
Laudus Rosenberg U.S. Discovery
Fund............................ 1.14% 1.44%
Laudus Rosenberg U.S. Small
Capitalization Fund**........... 1.14% 1.44%
Laudus Rosenberg International
Equity Fund..................... 1.34% 1.64%
Laudus Rosenberg International
Discovery Fund.................. 1.34% 1.65%
Laudus Rosenberg International
Small Capitalization Fund....... 1.49% 1.79%
Laudus Rosenberg U.S. Large/Mid
Capitalization Long/Short Equity
Fund............................ 1.24% 1.54%
Laudus Rosenberg Global Long/
Short Equity Fund............... 1.99% 2.29%
Laudus Rosenberg Value Long/Short
Equity Fund..................... 1.74% 2.04%
</Table>
** There is no Expense Limit for Adviser Shares of the Laudus Rosenberg U.S.
Small Capitalization Fund.
Any amounts waived or reimbursed in a particular fiscal year will be subject to
repayment through the next two fiscal years, to the extent that the repayment
will not cause the Fund's net expenses to exceed the current limit (as stated in
CSIM's contractual undertaking) during the respective year. As of March 31,
2007, the balance of recoupable expenses is as follows:
<Table>
<Caption>
Expires Expires
3/31/08 3/31/09
- -------------------------------------------------------------
Laudus Rosenberg U.S. Large
Capitalization Fund................... $ 70,081 $ 7,039
Laudus Rosenberg U.S. Large
Capitalization Growth Fund............ 76,630 36,418
Laudus Rosenberg U.S. Large
Capitalization Value Fund............. 105,744 103,539
Laudus Rosenberg U.S. Discovery Fund.... 2,314 26,377
Laudus Rosenberg U.S. Small
Capitalization Fund................... -- --
Laudus Rosenberg International Equity
Fund.................................. 197,117 31,150
Laudus Rosenberg International Discovery
Fund.................................. -- 167,471
Laudus Rosenberg International Small
Capitalization Fund................... -- --
Laudus Rosenberg U.S. Large/Mid
Capitalization Long/Short Equity
Fund.................................. 70,537 115,585
Laudus Rosenberg Global Long/Short
Equity Fund........................... 71,341 80,685
Laudus Rosenberg Value Long/Short Equity
Fund.................................. 3,296 2,516
</Table>
Effective October 1, 2005, State Street Bank & Trust Company serves as the
Trust's administrator and assisted the Trust in all aspects of its
administration and operation. Prior to October 1, 2005, BISYS Fund Services
Ohio, Inc. ("BISYS") performed these services.
Effective October 1, 2005, State Street Bank & Trust Company also serves as the
Trust's fund accountant. Prior to October 1, 2005, BISYS performed these
services.
Effective October 10, 2005, Boston Financial Data Services, Inc. performs
transfer agent services. Prior to October 10, 2005, BISYS performed these
services.
The Trust has a Distribution and Shareholder Service Plan with respect to its
Investor Shares pursuant to Rule 12b-1 under the 1940 Act. The Investor Shares
of the Fund are sold on a continuous basis by the Trust's Distributor. Effective
October 1, 2005, ALPS Distributors, Inc. serves as the Distributor. Prior to
October 1, 2005, Laudus Distributor, Inc. served as the Distributor. Under the
Distribution and Shareholder Services Plan, the Funds pay distribution and
shareholder servicing fees in connection with the sale and servicing of the
Investor Shares. The annual Distribution and Shareholder Service Fee consists of
up to 0.25% of the
150 Laudus Trust Annual Report
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
respective average daily net assets of the Investor Shares. In addition, the
Trustees have authorized each Fund to pay up to 0.15% of its average daily net
assets attributable to Investor Shares for sub-transfer agent and sub-
accounting services in connection with such shares.
Various service organizations act as servicing agents of the Adviser Shares of
the Laudus Rosenberg U.S. Small Capitalization Fund. Such shares are subject to
an annual Service Fee of up to 0.25% of the average daily net assets
attributable to such shares in accordance with a Service Plan adopted by the
Trust. In addition, the Trustees have authorized the Fund to pay up to 0.05% of
its average daily net assets attributable to Adviser Shares for the transfer and
sub-accounting services in connection with such shares.
The Board of Trustees may include people who are officers and/or directors of
other fund families affiliated to the investment adviser. Federal securities law
limits the percentage of the "interested persons" who may serve on a trust's
board, and the Laudus Funds are in compliance with these limitations. The Funds
did not pay any of the interested persons for their services as trustees, but
did pay non-interested persons (independent trustees), as noted in each Fund's
Statement of Operations.
In addition, a retirement plan has been instituted for all of the Independent
Trustees of the Trust. Under the terms of the Retirement Plan, upon retirement
or other termination from service from the Trust (other than termination for
cause), a retiring Independent Trustee who has served as Independent Trustee for
at least five years shall be paid a lump sum cash payment (the "Retirement
Payment"). The Retirement Payment shall be equal to $10,000 for each year that
the Trustee has served as an Independent Trustee of the Trust, including years
of service prior to the adoption of the Retirement Plan. However, beginning
April 1, 2005, each Independent Trustee is permitted to make a one-time election
to have the $10,000 attributable to service for the coming year adjusted up or
down at the end of each subsequent year based on the unweighted average
performance of Institutional Shares of each Fund of the Trust. Each Independent
Trustee also was given the opportunity to make a one-time election to have
previously accrued benefits fluctuate beginning April 1, 2005, based on
performance of the Funds as described in the previous sentence. As a result, the
amount of the Retirement Payment payable to any Independent Trustee may increase
or decrease based upon performance of the Funds. The portion of the total
Retirement Payment owed to an Independent Trustee upon his or her retirement
that is payable by any Fund will be determined based on the relative net assets
of the Funds of the Trust. The Trust did not pay any pension or retirement
benefits for its Trustees.
At a regular board meeting held on September 29, 2006, the Trustees voted to
close the Retirement Plan to new participants, including the Independent
Trustees first elected by shareholder vote on June 26, 2006 and to freeze the
account balance of each participant who was a participant prior to June 26, 2006
(a "Current Participant"). However, each Current Participant shall receive a
one-half credit under the Retirement Plan for service during the plan year
ending March 31, 2007 and the previously accrued benefits for which an
Independent Trustee had previously elected to have adjusted for performance of
the Funds would continue to be adjusted for performance as provided under the
Retirement Plan. All other terms of the Retirement Plan, including without
limitation provisions relating to vesting and payment upon termination of
service, remain in effect.
4. REDEMPTION FEE.
For the Funds, certain shares purchased that were redeemed or exchanged in less
than 30 days, are assessed a fee of 2% of the current net asset value of the
shares. The fee, which is applied to shares redeemed or exchanged in the order
in which they are purchased, is retained by the Fund and is intended to limit
short-term trading in the Funds, or to the extent short-term trading persists,
to impose the costs of that activity on the shareholders who engage in it. Such
amounts are net of the value of shares redeemed on the Statement of
Laudus Trust Annual Report 151
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
Changes in Net Assets. For the period ended March 31, 2007, redemption fees
assessed were as follows:
<Table>
<Caption>
Redemption
Fees
- ------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization
Fund......................................... $ 2,002
Laudus Rosenberg U.S. Large Capitalization
Growth Fund.................................. 1,118
Laudus Rosenberg U.S. Large Capitalization
Value Fund................................... 358
Laudus Rosenberg U.S. Discovery Fund........... 60,262
Laudus Rosenberg U.S. Small Capitalization
Fund......................................... 30,427
Laudus Rosenberg International Equity Fund..... 20,146
Laudus Rosenberg International Discovery
Fund......................................... 20,436
Laudus Rosenberg International Small
Capitalization Fund.......................... 102,195
Laudus Rosenberg U.S. Large/Mid Capitalization
Long/Short Equity Fund....................... 8,813
Laudus Rosenberg Global Long/Short Equity
Fund......................................... 1,500
Laudus Rosenberg Value Long/Short Equity
Fund......................................... 36,207
</Table>
5. SECURITY PURCHASES AND SALES.
For the period ended March 31, 2007, purchases and sales of securities
(excluding short-term securities) were as follows:
<Table>
<Caption>
Purchases Sales
- --------------------------------------------------------------
Laudus Rosenberg U.S. Large
Capitalization Fund........ $ 166,713,030 $ 135,564,031
Laudus Rosenberg U.S. Large
Capitalization Growth
Fund....................... 69,507,024 41,293,300
Laudus Rosenberg U.S. Large
Capitalization Value
Fund....................... 7,872,004 8,788,390
Laudus Rosenberg U.S.
Discovery Fund............. 799,150,566 863,399,111
Laudus Rosenberg U.S. Small
Capitalization Fund........ 864,087,665 1,136,902,326
Laudus Rosenberg
International Equity
Fund....................... 132,786,001 62,417,269
Laudus Rosenberg
International Discovery
Fund....................... 115,105,472 56,702,618
Laudus Rosenberg
International Small
Capitalization Fund........ 1,604,016,672 1,459,986,676
Laudus Rosenberg U.S. Large/
Mid Capitalization
Long/Short Equity Fund..... 71,898,196 44,154,762
Laudus Rosenberg Global Long/
Short Equity Fund.......... 120,045,201 71,599,183
Laudus Rosenberg Value Long/
Short Equity Fund.......... 735,865,426 377,164,377
</Table>
6. LINE OF CREDIT
The custodian has established a loan agreement for a maximum amount of 10% of
total net assets for the Laudus Rosenberg Value Long/Short Equity Fund for
temporary purposes. In addition, the Laudus Rosenberg U.S. Large Capitalization
Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg
U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund,
Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International
Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg
International Small Capitalization Fund had access to an uncommitted line of
credit up to a maximum of $100,000,000, as established by the Funds' custodian.
Interest is calculated based on the market rates at the time of borrowing. There
were no borrowings on the line of credit for the period ended March 31, 2007.
152 Laudus Trust Annual Report
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
7. FEDERAL INCOME TAXES.
RECLASSIFICATIONS
Permanent book and tax basis differences may result in reclassifications to
capital accounts and other accounts as required. Such adjustments have no impact
on net assets or the results of operations. As of March 31, 2007, the funds made
the following reclassifications:
<Table>
<Caption>
Accumulated
Net Realized
Gains/(Losses)
on
Accumulated Investments
Net Investment and Securities
Income/(Loss) Sold Short Paid In Capital
- ---------------------------------------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. $ -- $ -- $ --
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... -- -- --
Laudus Rosenberg U.S. Large Capitalization Value Fund....... -- -- --
Laudus Rosenberg U.S. Discovery Fund........................ 446,139 (446,139) --
Laudus Rosenberg U.S. Small Capitalization Fund............. 28,072 -- (28,072)
Laudus Rosenberg International Equity Fund.................. 131,228 357,161 (488,389)
Laudus Rosenberg International Discovery Fund............... 196,578 (196,578) --
Laudus Rosenberg International Small Capitalization Fund.... 13,303,038 (13,303,038) --
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... -- -- --
Laudus Rosenberg Global Long/Short Equity Fund.............. 772,070 (772,070) --
Laudus Rosenberg Value Long/Short Equity Fund............... -- -- --
</Table>
The tax character of distributions paid during the fiscal year ended March 31,
2007 was as follows:
<Table>
<Caption>
Ordinary Long-Term Total
Income Capital Gains Distributions Paid
- --------------------------------------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. $ 1,126,178 $ 2,949,474 $ 4,075,652
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 135,787 -- 135,787
Laudus Rosenberg U.S. Large Capitalization Value Fund....... 318,229 138,325 456,554
Laudus Rosenberg U.S. Discovery Fund........................ 606,878 23,594,419 24,201,297
Laudus Rosenberg U.S. Small Capitalization Fund............. -- 134,761,584 134,761,584
Laudus Rosenberg International Equity Fund.................. 1,036,481 2,387,301 3,423,782
Laudus Rosenberg International Discovery Fund............... 456,108 -- 456,108
Laudus Rosenberg International Small Capitalization Fund.... 94,586,998 84,145,857 178,732,855
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... 1,011,251 -- 1,011,251
Laudus Rosenberg Global Long/Short Equity Fund.............. 592,033 -- 592,033
Laudus Rosenberg Value Long/Short Equity Fund............... 7,134,576 -- 7,134,576
</Table>
Laudus Trust Annual Report 153
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
The tax character of distributions paid during the fiscal year ended March 31,
2006 was as follows:
<Table>
<Caption>
Ordinary Long-Term Total Taxable Return of Total
Income Capital Gains Distributions Capital Distributions Paid
- ----------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization
Fund....................................... $ 794,781 $ 3,748,563 $ 4,543,344 $ -- $ 4,543,344
Laudus Rosenberg U.S. Large Capitalization
Growth Fund................................ 23,348 -- 23,348 -- 23,348
Laudus Rosenberg U.S. Large Capitalization
Value Fund................................. 44,078 322 44,400 -- 44,400
Laudus Rosenberg U.S. Discovery Fund......... -- 7,254,221 7,254,221 7,273,884 14,528,105
Laudus Rosenberg U.S. Small Capitalization
Fund....................................... 2,130,940 155,393,262 157,524,202 -- 157,524,202
Laudus Rosenberg International Equity Fund... 313,720 -- 313,720 -- 313,720
Laudus Rosenberg International Discovery
Fund....................................... -- -- -- -- --
Laudus Rosenberg International Small
Capitalization Fund........................ 27,375,525 27,702,852 55,078,377 -- 55,078,377
Laudus Rosenberg U.S. Large/Mid
Capitalization
Long/Short Equity Fund..................... 386,331 -- 386,331 -- 386,331
Laudus Rosenberg Global Long/Short Equity
Fund....................................... 270,469 -- 270,469 -- 270,469
Laudus Rosenberg Value Long/Short Equity
Fund....................................... 1,939,980 -- 1,939,980 -- 1,939,980
</Table>
As of March 31, 2007, the following is the net capital loss carry forward, which
is available to offset future realized gains.
<Table>
<Caption>
Expires
----------------------------------------------------------------------------------------------
2008 2009 2010 2011 2012 2013 2014 2015
- -----------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large
Capitalization Fund......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
Laudus Rosenberg U.S. Large
Capitalization Growth
Fund........................ -- -- 148,863 451,611 -- 193,612 -- 883,199
Laudus Rosenberg U.S. Large
Capitalization Value Fund... -- -- -- -- -- -- -- --
Laudus Rosenberg U.S.
Discovery Fund.............. -- -- -- -- -- -- -- --
Laudus Rosenberg U.S. Small
Capitalization Fund......... -- -- -- -- -- -- -- --
Laudus Rosenberg
International Equity Fund... -- -- -- -- -- -- -- --
Laudus Rosenberg
International Discovery
Fund........................ -- -- -- -- -- -- -- --
Laudus Rosenberg
International Small
Capitalization Fund......... -- -- -- -- -- -- -- --
Laudus Rosenberg U.S. Large/
Mid Capitalization
Long/Short Equity Fund...... -- -- -- -- 1,387,824 385,118 -- --
Laudus Rosenberg Global
Long/Short Equity Fund...... -- -- -- -- 430,603 177,288 -- --
Laudus Rosenberg Value Long/
Short Equity Fund........... 26,836,920 11,040,106 -- -- 20,890,232 -- -- 13,099,020
<Caption>
Expires
-----------
Total
- -----------------------------
Laudus Rosenberg U.S. Large
Capitalization Fund......... $ --
Laudus Rosenberg U.S. Large
Capitalization Growth
Fund........................ 1,677,285
Laudus Rosenberg U.S. Large
Capitalization Value Fund... --
Laudus Rosenberg U.S.
Discovery Fund.............. --
Laudus Rosenberg U.S. Small
Capitalization Fund......... --
Laudus Rosenberg
International Equity Fund... --
Laudus Rosenberg
International Discovery
Fund........................ --
Laudus Rosenberg
International Small
Capitalization Fund......... --
Laudus Rosenberg U.S. Large/
Mid Capitalization
Long/Short Equity Fund...... 1,772,942
Laudus Rosenberg Global
Long/Short Equity Fund...... 607,891
Laudus Rosenberg Value Long/
Short Equity Fund........... 71,866,278
</Table>
154 Laudus Trust Annual Report
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
Net losses incurred after October 31 and within the taxable year are deemed to
arise on the first business day of the Funds' next taxable year. For the year
ended March 31, 2007, the Funds deferred to April 1, 2007 post October losses
of:
<Table>
<Caption>
Capital Losses Currency Losses
- ----------------------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. $ -- $ --
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... -- --
Laudus Rosenberg U.S. Large Capitalization Value Fund....... -- --
Laudus Rosenberg U.S. Discovery Fund........................ -- --
Laudus Rosenberg U.S. Small Capitalization Fund............. -- --
Laudus Rosenberg International Equity Fund.................. -- --
Laudus Rosenberg International Discovery Fund............... -- --
Laudus Rosenberg International Small Capitalization Fund.... -- --
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... -- --
Laudus Rosenberg Global Long/Short Equity Fund.............. -- --
Laudus Rosenberg Value Long/Short Equity Fund............... 12,782,282 --
</Table>
The funds utilized capital loss carryforward during the year end March 31, 2007
in the amount of:
<Table>
<Caption>
Capital Losses
Utilized
- -----------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. $ --
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... --
Laudus Rosenberg U.S. Large Capitalization Value Fund....... --
Laudus Rosenberg U.S. Discovery Fund........................ --
Laudus Rosenberg U.S. Small Capitalization Fund............. --
Laudus Rosenberg International Equity Fund.................. 7,313
Laudus Rosenberg International Discovery Fund............... --
Laudus Rosenberg International Small Capitalization Fund.... --
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... 514,914
Laudus Rosenberg Global Long/Short Equity Fund.............. 182,043
Laudus Rosenberg Value Long/Short Equity Fund............... --
</Table>
As of March 31, 2007, the components of distributable
earnings/accumulated(losses) on a tax basis were as follows:
<Table>
<Caption>
Undistributed
Undistributed Long-Term Accumulated Net
Ordinary Capital Capital and Unrealized
Income Gains Other Losses Appreciation
- -------------------------------------------------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. $ 2,773,625 $ 3,442,906 $ (4,727) $ 11,894,948
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 62,663 -- (1,678,522) 7,628,463
Laudus Rosenberg U.S. Large Capitalization Value Fund....... 136,488 421,928 (157) 984,236
Laudus Rosenberg U.S. Discovery Fund........................ -- 19,075,466 734 166,951,847
Laudus Rosenberg U.S. Small Capitalization Fund............. 42,653 55,524,544 (68,868) 242,238,845
Laudus Rosenberg International Equity Fund.................. 3,985,898 1,661,491 (3,214) 19,009,785
Laudus Rosenberg International Discovery Fund............... 3,207,951 -- (395) 7,834,432
Laudus Rosenberg International Small Capitalization Fund.... 66,689,898 61,723,853 (69,897) 328,724,421
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... 155,581 -- (1,775,258) 2,511,623
Laudus Rosenberg Global Long/Short Equity Fund.............. 198,506 -- (610,054) 1,967,082
Laudus Rosenberg Value Long/Short Equity Fund............... 1,227,321 -- (84,663,237) 55,381,122
</Table>
Laudus Trust Annual Report 155
Financial Statements--Notes to Financial Statements as of 3/31/07 continued
The difference between book basis and tax basis unrealized
appreciation/(depreciation) is attributable primarily to: tax deferral of losses
on wash sales, the realization for tax purposes of unrealized gains/(losses) on
certain derivative instruments, and unrealized gains/(losses) on investments in
passive foreign investment companies.
OTHER TAX INFORMATION (UNAUDITED)
For corporate shareholders, the following percentage of the total ordinary
income dividends paid during the fiscal year ended March 31, 2007, qualify for
the corporate dividends received deduction for the following Funds:
<Table>
<Caption>
Dividends
Received Deduction
- --------------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. 58.13%
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 100.00%
Laudus Rosenberg U.S. Large Capitalization Value Fund....... 48.31%
Laudus Rosenberg U.S. Discovery Fund........................ 100.00%
Laudus Rosenberg U.S. Small Capitalization Fund............. --%
Laudus Rosenberg International Equity Fund.................. --%
Laudus Rosenberg International Discovery Fund............... --%
Laudus Rosenberg International Small Capitalization Fund.... --%
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... 42.20%
Laudus Rosenberg Global Long/Short Equity Fund.............. 19.52%
Laudus Rosenberg Value Long/Short Equity Fund............... 25.49%
</Table>
The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International
Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, and
Laudus Rosenberg Global Long/Short Equity Fund may elect to pass on the benefits
of the foreign tax credit $176,045, $82,881 $2,702,844 and $31,481 respectively,
to its shareholders for the year ended March 31, 2007.
For the fiscal year March 31, 2007, certain dividends paid by the Funds may be
subject to maximum tax rate of 15% as provided by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The Funds intend to designate the maximum allowable
as taxed at a maximum rate of 15%. Complete information will be reported in
conjunction with your 2007 Form 1099-DIV.
For the year ended March 31, 2007, the Funds designate the following amounts of
qualified dividend income:
<Table>
<Caption>
Qualified
Dividend Income
- -----------------------------------------------------------------------------
Laudus Rosenberg U.S. Large Capitalization Fund............. $ 1,635,997
Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 167,858
Laudus Rosenberg U.S. Large Capitalization Value Fund....... 157,566
Laudus Rosenberg U.S. Discovery Fund........................ 606,878
Laudus Rosenberg U.S. Small Capitalization Fund............. --
Laudus Rosenberg International Equity Fund.................. 2,437,829
Laudus Rosenberg International Discovery Fund............... 852,775
Laudus Rosenberg International Small Capitalization Fund.... 33,175,895
Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short
Equity Fund............................................... 386,642
Laudus Rosenberg Global Long/Short Equity Fund.............. 467,677
Laudus Rosenberg Value Long/Short Equity Fund............... 1,899,088
</Table>
156 Laudus Trust Annual Report
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Laudus Trust
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments and schedules of securities sold short,
and the related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg
U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Large
Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus
Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity
Fund, Laudus Rosenberg International Small Capitalization Fund, Laudus Rosenberg
International Discovery Fund, Laudus Rosenberg U.S. Large/Mid Capitalization
Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund, and
Laudus Rosenberg Value Long/ Short Equity Fund (the "Funds") at March 31, 2007,
the results of each of their operations for the period then ended, and the
changes in each of their net assets and the financial highlights for each of the
periods presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 2007 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
May 18, 2007
Laudus Trust Annual Report 157
Trustees and Officers
The tables below provide information about the trustees and officers for the
Laudus Trust, which includes the funds covered in this report. The "Fund
Complex" includes The Charles Schwab Family of Funds, Schwab Investments, Schwab
Capital Trust, Schwab Annuity Portfolios, Laudus Trust, Laudus Variable
Insurance Trust, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and
Excelsior Funds Trust. As of March 31, 2007, the Fund Complex included 95 funds.
At a meeting of the Board held on September 28-29, 2006, the Trustees voted to
adopt a retirement policy for all independent trustees that requires an
independent trustee to retire no later than December 31st of the year in which
he or she reaches age seventy-two.
The address for all trustees and officers is 101 Montgomery Street, San
Francisco, CA 94104. You can find more information about the trustees and
officers in the Statement of Additional Information, which is available free by
calling 1-866-452-8387.
<Table>
<Caption>
INDEPENDENT TRUSTEES
- ---------------------------------------------------------------------------------------------------------------------
Name, Number of
Year of Birth, Portfolios in
(Term of Office and Principal Occupation(s) Fund Complex
Length of Time Served) During the Past Five Years Overseen Other Directorships
- ---------------------------------------------------------------------------------------------------------------------
Mariann Byerwalter Chairman of JDN Corporate Advisory 95 Board 1 - Director, Redwood Trust,
1960 LLC. From 1996 to 2001, Vice Inc. Board 2 - Director, PMI Group,
(Trustee of Laudus Trust President for Business Affairs and Inc.
since 2004) Chief Financial Officer of Stanford
University, and in 2001, Special
Advisor to the President of Stanford
University.
- ---------------------------------------------------------------------------------------------------------------------
William A. Hasler Retired. Dean Emeritus of the Haas 95 Board 1 - Director, Aphton
1941 School of Business, University of Corporation. Board 2 - Director,
(Trustee of Laudus Trust California, Berkeley. Until February Mission West Properties. Board
since 2004) 2004, Co-Chief Executive Officer, 3 - Director, TOUSA. Board
Aphton Corp. (bio-pharmaceuticals). 4 - Director, Harris-Stratex
Networks. Board 5 - Director,
Genitope Corp. Board 6 - Director,
Solectron Corporation where he is
also Non-Executive Chairman. Board
7 - Director, Ditech Communications
Corporation.
- ---------------------------------------------------------------------------------------------------------------------
Nils Hakansson Sylvan C. Coleman Professor of 38 None.
1937 Finance and Accounting Emeritus, Haas
(Trustee of Laudus Trust School of Business, University of
since June 1998) California Berkeley, since 2003. From
July 1977 to January 2003, Sylvan C.
Coleman Professor of Finance and
Accounting, Haas School of Business,
University of California, Berkeley
(higher education).
- ---------------------------------------------------------------------------------------------------------------------
Rodman L. Drake Co-Founder of Baringo Capital LLC 38 Board 1 - Director and Chairman,
1943 (since 2002); President, Continuation Hyperion Total Return Fund, Inc. and
(Trustee of Laudus Trust Investments Group, Inc. (from 1997 to Hyperion Strategic Mortgage Income
since June 2006) 2001). Fund Inc. Board 2 - Director, Jackson
Hewitt Tax Service Inc. Board 3 -
Director, Student Loan Corporation.
Board 4 - Celgene Corp.
- ---------------------------------------------------------------------------------------------------------------------
Morrill Melton Hall, Jr. Chairman (since 1984) and Chief 38 None.
1944 Executive Officer (since 1991),
(Trustee of Laudus Trust Comprehensive Health Services, Inc.
since June 2006) (health care management and
administration).
- ---------------------------------------------------------------------------------------------------------------------
</Table>
158 Laudus Trust Annual Report
Trustees and Officers continued
<Table>
<Caption>
INDEPENDENT TRUSTEES
- ---------------------------------------------------------------------------------------------------------------------
Name, Number of
Year of Birth, Portfolios in
(Term of Office and Principal Occupation(s) Fund Complex
Length of Time Served) During the Past Five Years Overseen Other Directorships
- ---------------------------------------------------------------------------------------------------------------------
Jonathan Piel Cable television producer and website 38 None.
1938 designer; Editor, Scientific American
(Trustee of Laudus Trust (1984-1986), and Vice President,
since June 2006) Scientific American Inc.,
(1986-1994); Director, National
Institute of Social Sciences; Member,
Advisory Board, The Stone Age
Institute, Bloomington, Indiana.
- ---------------------------------------------------------------------------------------------------------------------
John D. Collins Retired. Consultant, KPMG, LLP (from 38 Board 1 - Director, Mrs. Fields
1938 July 1999 to June 2000); Partner, Famous Brands LLC.
(Trustee of Laudus Trust KPMG, LLP (from March 1962 to June
since June 2006) 1999).
</Table>
Laudus Trust Annual Report 159
Trustees and Officers continued
<Table>
<Caption>
INTERESTED TRUSTEES
- ---------------------------------------------------------------------------------------------------------------------
Name, Number of
Year of Birth, Portfolios in
(Term of Office and Principal Occupation(s) Fund Complex
Length of Time Served) During the Past Five Years Overseen Other Directorships
- ---------------------------------------------------------------------------------------------------------------------
Randall W. Merk(1) Executive Vice President, Charles 95 None.
1954 Schwab & Co., Inc. (2002-present);
(Trustee of Laudus Trust President, Schwab Financial Products,
since June 2006) Charles Schwab & Co., Inc. (2002-
present); Director, Charles Schwab
Asset Management (Ireland) Limited;
Director, Charles Schwab Bank, N.A.
(since 2006). Prior to September
2002, President and Chief Investment
Officer, American Century Investment
Management, and Director, American
Century Companies, Inc.
</Table>
160 Laudus Trust Annual Report
Trustees and Officers continued
<Table>
<Caption>
OFFICERS
- -------------------------------------------------------------------------------------------------------------------
Name,
Year of Birth,
(Term of Office and
Length of Time Served)(2) Position with the Trust Principal Occupation(s)
- -------------------------------------------------------------------------------------------------------------------
Evelyn Dilsaver, 1955 President & Chief President, Chief Executive Officer, and Director, Charles
(Officer of Laudus Trust Executive Officer Schwab Investment Management, Inc.; Executive Vice
since 09/05) President, Charles Schwab & Co., Inc.; President and Chief
Executive Officer, The Charles Schwab Family of Funds,
Schwab Investments, Schwab Capital Trust, and Schwab Annuity
Portfolios; President, Excelsior Funds Inc., Excelsior
Tax-Exempt Funds, Inc., and Excelsior Funds Trust;
President, Mutual Fund Division, UST Advisers, Inc. From
June 2003 to July 2004, Senior Vice President, Asset
Management Products and Services, Charles Schwab & Co., Inc.
Prior to June 2003, Executive Vice President, Chief
Financial Officer, and Chief Administrative Officer, U.S.
Trust, a subsidiary of The Charles Schwab Corporation.
- -------------------------------------------------------------------------------------------------------------------
George Pereira, 1964 Chief Financial Officer Senior Vice President and Chief Financial Officer, Charles
(Officer of Laudus Trust Schwab Investment Management, Inc.; Treasurer and Principal
since 06/06) Financial Officer, The Charles Schwab Family of Funds,
Schwab Investments, Schwab Capital Trust, and Schwab Annuity
Portfolios; Treasurer, Chief Financial Officer and Chief
Accounting Officer, Excelsior Funds Inc., Excelsior
Tax-Exempt Funds, Inc., and Excelsior Funds Trust; Chief
Financial Officer, Mutual Fund Division, UST Advisors, Inc.;
Director, Charles Schwab Worldwide Funds, PLC and Charles
Schwab Asset Management (Ireland) Limited. From December
1999 to November 2004, Sr. Vice President, Financial
Reporting, Charles Schwab & Co., Inc.
- -------------------------------------------------------------------------------------------------------------------
Jeffrey M. Mortimer, 1963 Vice President & Chief Senior Vice President and Chief Investment
(Officer of Laudus Trust Investment Officer Officer - Equities, Charles Schwab Investment Management,
since 06/04) Inc., and The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, and Schwab Annuity
Portfolios. Prior to May 2004; Vice President and Sr.
Portfolio Manager, Charles Schwab Investment Management,
Inc.
- -------------------------------------------------------------------------------------------------------------------
Catherine MacGregor, 1964 Chief Legal Officer & Vice President, Charles Schwab & Co., Inc. and Charles
(Officer of Laudus Trust Vice President Schwab Investment Management, Inc.; since 2006, Chief
since 12/05) Counsel, Laudus Trust and Laudus Variable Insurance Trust;
Vice President, The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, and Schwab Annuity
Portfolios; until July 2005, Senior Associate, Paul Hastings
Janofsky & Walker LLP.
- -------------------------------------------------------------------------------------------------------------------
Randall Fillmore, 1960 Chief Compliance Senior Vice President and Chief Compliance Officer, Charles
(Officer of Laudus Trust Officer Schwab Investment Management, Inc; Senior Vice President,
since 09/04) Charles Schwab & Co., Inc.; Chief Compliance Officer, The
Charles Schwab Family of Funds, Schwab Investments, Schwab
Capital Trust, and Schwab Annuity Portfolios; Chief
Compliance Officer, Excelsior Funds, Inc., Excelsior
Tax-Exempt Funds, Inc., and Excelsior Funds Trust. From 2002
to 2003, Vice President, Charles Schwab & Co., Inc. and
Charles Schwab Investment Management, Inc. From 2000 to
2002, Vice President, Internal Audit, Charles Schwab & Co.,
Inc.
- -------------------------------------------------------------------------------------------------------------------
</Table>
Laudus Trust Annual Report 161
Trustees and Officers continued
<Table>
<Caption>
OFFICERS
- -------------------------------------------------------------------------------------------------------------------
Name,
Year of Birth,
(Term of Office and
Length of Time Served)(2) Position with the Trust Principal Occupation(s)
- -------------------------------------------------------------------------------------------------------------------
Daniel Kern, 1961 Vice President Vice President, Investment Operations, Charles Schwab
(Officer of Laudus Trust Investment Management, Inc.; Assistant Treasurer, The
since 03/04) Charles Schwab Family of Funds, Schwab Investments, Schwab
Capital Trust, and Schwab Annuity Portfolios. Until
September 2005, Assistant Treasurer, Laudus Trust and Laudus
Variable Insurance Trust. Until December 2004, Vice
President, Internal Audit, Charles Schwab Corporation. Prior
to January 2003, Managing Director and Principal, Montgomery
Asset Management.
- -------------------------------------------------------------------------------------------------------------------
Bill Thomas, 1962 Vice President Senior Vice President, Distribution, Charles Schwab
(Officer of Laudus Trust Investment Management, Inc. Until May 2000, Managing
since 06/04) Director, Scudder Kemper Investments
- -------------------------------------------------------------------------------------------------------------------
Michael Haydel, 1972 Vice President & AML Vice President, Asset Management Client Services, Charles
(Officer of Laudus Trust Officer Schwab & Co., Inc. Until March 2004, Director, Charles
since 06/05) Schwab & Co., Inc.
- -------------------------------------------------------------------------------------------------------------------
Aleda Anderson, 1966 Vice President Vice President, Distribution Services, Charles Schwab
(Officer of Laudus Trust Investment Management, Inc.; until December 2005, Director,
since 06/06) Asset Management Strategic Alliances, Charles Schwab & Co.,
Inc.; until 2001, Research Associate, Office of Corporate
Counsel, Charles Schwab & Co., Inc.
- -------------------------------------------------------------------------------------------------------------------
Cathy Sabo, 1964 Vice President Vice President, Compliance, Charles Schwab Investment,
(Officer of Laudus Trust Management, Inc.; Vice President, Schwab Funds; until
since 12/05) September 2004, Vice President, Client, Sales & Services
Controls, Charles Schwab & Co., Inc.
</Table>
(1) In addition to his employment with the investment adviser or an affiliate,
Mr. Merk owns stock of The Charles Schwab Corporation. Mr. Merk is
Interested Trustees because he is an employee of Schwab and U.S. Trust,
respectively.
(2) The President, Treasurer and Secretary hold office until their respective
successors are chosen and qualified or until he or she sooner dies, resigns,
is removed or becomes disqualified. Each other officer serves at the
pleasure of the Board.
162 Laudus Trust Annual Report
Definitions, Terms and Other Information
90 DAY T-BILL is a short-term discounted, government debt instrument of 90 days
or less, issued in $10,000 denominations that pay its face value at maturity.
The government issues Treasury bills weekly.
ALPHA is a measure of a fund's risk-adjusted return. Alpha can be used to
directly measure the value added or subtracted by a fund's manager. It is
calculated by measuring the difference between a fund's actual returns and its
expected performance given its level of market risk as measured by beta.
BETA is a measure of the volatility of a stock relative to the overall market. A
beta of less than one indicates lower historical risk than the market; a beta of
more than one indicates higher historical risk than the market.
GDP, OR GROSS DOMESTIC PRODUCT, is the market value of the goods and services
produced by labor and property in the United States.
THE S&P/CITIGROUP GLOBAL EX US BROAD MARKET INDEX (BMI) $2-$10 BILLION CAP RANGE
is an absolute size benchmark that divides the investable region into
capitalization bands of between $2 billion and $10 billion. It is a subset of
the Broad Market Index (BMI), which includes companies in approximately 52
developed and emerging markets with more than $100 million of free float
capitalization.
THE S&P/CITIGROUP WORLD EX US EXTENDED MARKET INDEX (EMI) is a float-adjusted
index which measures the performance of small companies (approximately the
bottom 20% by market capitalization) in 25 developed equity markets.
THE STANDARD & POOR'S 500(R) (S&P 500) INDEX is an unmanaged index measuring
large-cap U.S. stock market performance, and includes a representative sample of
leading companies in leading industries.
THE RUSSELL 1000(R) GROWTH INDEX measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth values.
THE RUSSELL 1000(R) VALUE INDEX measures the performance of those Russell 1000
companies with lower valuation ratios such as price-to-book and
price-to-earnings ratios.
THE RUSSELL 2000(R) INDEX measures the performance of the 2,000 smallest
companies in the Russell 3000(R) Index, and represents approximately 8% of the
total market capitalization of the Russell 3000(R) Index.
THE RUSSELL 2500(TM) INDEX measures the performance of the 2,500 smallest
companies in the Russell 3000(R) Index, and represents approximately 16% of the
total market capitalization of the Russell 3000(R) Index.
THE RUSSELL 3000(R) GROWTH INDEX measures the performance of those Russell 3000
Index companies with higher price-to-book ratios and higher forecasted growth
values. The stocks in this index are also members of either the Russell 1000
Growth or the Russell 2000 Growth indexes.
THE RUSSELL 3000(R) VALUE INDEX measures the performance of those Russell 3000
Index companies with lower price-to-book ratios and lower forecasted growth
values. The stocks in this index are also members of either the Russell 1000
Value or the Russell 2000 Value indexes.
PRICE TO EARNINGS RATIO is the price of a stock divided by its historical
earnings per share.
PRICE TO BOOK RATIO compares the stock's market value to the value of the total
assets less the total liabilities.
PRICE TO CASH FLOW RATIO is the price of a stock dividend by its reported cash
flow per share.
RELATIVE STRENGTH is the rate that a stock falls relative to other stocks in a
falling market or rises relative to other stocks in a rising market.
RETURN ON EQUITY represents the amount earned on a company's common stock
investment for a given period, calculated by dividing common stock equity into
net income for the period after preferred stock dividends but before common
stock dividends.
TRADING ACTIVITY is one of several risk factors commonly used to attribute a
portfolio's return relative to its benchmark. Specifically, trading activity
measures a stock's trailing 12 month trading volume relative to its total shares
outstanding. It measures how actively traded a stock has been in the last 12
months.
Proxy Voting
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request by visiting www.laudus.com, the Securities and Exchange
Commission's website at www.sec.gov, or by contacting Laudus Funds at
866.452.8387.
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge, upon request by visiting www.laudus.com, or the Securities and
Exchange Commission's website at www.sec.gov.
Quarterly Disclosure of Portfolio Holdings
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at www.sec.gov and may be reviewed and copied
at the SEC's Public Reference Room in Washington, DC. Call 1-800-SEC-0330 for
information on the operation of the Public Reference Room. The information filed
on a fund's most recent Form N-Q is also available at www.laudus.com.
Laudus Trust Annual Report 163
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(LAUDUS FUNDS LOGO)
COMMAND PERFORMANCE(TM)
MANAGER
Charles Schwab Investment Management, Inc.
101 Montgomery Street
San Francisco, California 94104
SHAREHOLDER SERVICES
1.866.452.8387 Investment Professionals
1.800.447.3332 Individual Investors
www.laudus.com
This report is for the information of the shareholders of the Laudus Trust.
Its use in connection with any offering of the Trust's shares is authorized only
in case of concurrent or prior
delivery of the current prospectus.
REG 34765-04
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.
(a) (1) Disclose that the registrant's board of directors has determined that
the registrant either:
(i) Has at least one audit committee financial expert serving on its
audit committee; or
(ii) Does not have an audit committee financial expert serving on
its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit committee
financial expert and whether that person is "independent." In order to be
considered "independent" for purposes of this Item, a member of an audit
committee may not, other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or other
compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as defined
in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an audit committee
financial expert.
3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS NILS H. HAKANSSON, WHO IS
"INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Below are the aggregate fees billed for each of the last two fiscal years
for professional services rendered by the principal accountant for the audit of
Registrant's annual financial statements or services that are normally provided
by the accountant in connection with statutory and regulatory filings or
engagements.
Audit Fees
2007: $294,785 2006: $259,290
(b) Below are the aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are reasonably
related to the performance of the audit of Registrant's financial statements and
are not reported under paragraph (a) above.
Audit-Related Fees
For services rendered to Registrant:
2007: NONE 2006: $20,000
Nature of these services: Agreed upon services in regards to service
provider conversion.
In each of the last two fiscal years there were no "Audit-Related Fees"
required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X.
(c) Below are the aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax compliance,
tax advice, and tax planning.
Tax Fees
For services rendered to Registrant:
2007: $82,845 2006: $67,980
Nature of these services: preparation and review of tax returns.
In each of the last two fiscal years there were no "Tax Fees" required to
be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) Below are the aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other than the
services reported in paragraphs (a) through (c) above.
All Other Fees
For services rendered to Registrant:
2007: $20,000 2006: $18,462
Nature of these services: non-audit services related to the
requirements of Section 15(c) of the
Investment Company Act of 1940, such as
evaluation of the Profitability Analysis
System.
In each of the last two fiscal years there were no "All Other Fees"
required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X.
(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.
2007: $169,975 2006: $106,442
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.
2007: $4,221,564 2006: $4,029,138
(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, Evelyn Dilsaver and Registrant's Principal Financial Officer,
George Pereira, have concluded that Registrant's disclosure controls and
procedures are: (i) reasonably designed to ensure that information required to
be disclosed in this report is appropriately communicated to Registrant's
officers to allow timely decisions regarding disclosures required in this
report; (ii) reasonably designed to ensure that information required to be
disclosed in this report is recorded, processed, summarized and reported in a
timely manner; and (iii) are effective in achieving the goals described in (i)
and (ii) above.
(b) During the second fiscal quarter of the period covered by this report,
there have been no changes in Registrant's internal control over financial
reporting that the above officers believe to have materially affected, or
to be reasonably likely to materially affect, Registrant's internal control
over financial reporting.
ITEM 12: EXHIBITS.
(a)(1) Registrant's code of ethics (that is the subject of the disclosure
required by Item 2(a)) is attached.
(2) Separate certifications for Registrant's principal executive officer
and principal financial officer, as required by Rule 30a-2(a) under the
1940 Act, are attached.
(3) Not applicable.
(b) A certification for Registrant's principal executive officer and principal
financial officer, as required by Rule 30a-2(b) under the 1940 Act, is
attached. This certification is being furnished to the Securities and
Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not
being filed as part of the Form N-CSR with the Commission.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant ) The Laudus Trust
By: /s/ Evelyn Dilsaver
---------------------------------------
Evelyn Dilsaver
President and Chief Executive Officer
Date: May 18, 2007
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/ Evelyn Dilsaver
-----------------------
Evelyn Dilsaver
President and Chief Executive Officer
Date: May 18, 2007
By: /s/ George Pereira
-----------------------
George Pereira
Principal Financial Officer
Date: May 18, 2007