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Purchases

$199,271,624

$109,097,913

Laudus Mondrian Funds

In This Report



Performance at a Glance		2

From the President		3

The Investment Environment		4

Laudus Mondrian International Equity Fund		6

Laudus Mondrian Global Equity Fund		9

Laudus Mondrian Emerging Markets Fund		12

Laudus Mondrian International Fixed Income Fund		15

Fund Expenses		18

Financial Statements		19

Financial Notes		47

Report of Independent Registered Public Accounting Firm		58

Other Federal Tax Information		59

Results of Proxy Voting		60

Trustees and Officers		61

Glossary		64

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: ALPS Distributors, Inc.

The industry/sector classification of the funds’ portfolio holdings uses the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard & Poor’s. GICS is a service mark of MSCI and S&P and has been licensed for use by CSIM and certain affiliates. Charles Schwab & Co, Inc. and ALPS Distributors, Inc. are unaffiliated entities.

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.laudus.com.


Total Return for the Report Period


Laudus Mondrian International Equity Fund

Investor Shares (Ticker Symbol: LIEQX)			40.53%
Select Shares^® (Ticker Symbol: LIEFX)			40.68%
Institutional Shares (Ticker Symbol: LIEIX)			40.90%
Benchmark: MSCI EAFE^® Index (Net)			54.44%

Performance Details			pages 6-8



Laudus Mondrian Global Equity Fund

Investor Shares (Ticker Symbol: LGEQX)			44.94%
Select Shares^® (Ticker Symbol: LGESX)			45.43%
Institutional Shares (Ticker Symbol: LGEVX)			45.49%
Benchmark: MSCI World^® Index (Net)			52.37%

Performance Details			pages 9-11



Laudus Mondrian Emerging Markets Fund

Investor Shares (Ticker Symbol: LEMIX)			66.74%
Select Shares^® (Ticker Symbol: LEMSX)			66.91%
Institutional Shares (Ticker Symbol: LEMNX)			67.27%
Benchmark: MSCI Emerging Markets Index (Net)			81.08%

Performance Details			pages 12-14



Laudus Mondrian International Fixed Income Fund (Ticker Symbol: LIFNX)*			12.85%

Citigroup non-U.S. Dollar World Government Bond Index			8.41%

Performance Details			pages 15-17

All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Redemption fees charged on shares sold or exchanged 30 days or less after purchasing them may affect share level returns.

Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Funds’ returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Funds’ performance relative to the indices may be affected by fair-value pricing, see financial note 2 for more information.

There are risks associated with investing in securities of foreign issuers, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements. Investing in emerging markets accentuates these risks. Investments in emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries.

Bond funds are subject to increased risk of loss of principal during periods of volatile interest rates.

Please see prospectus for further detail and investor eligibility requirements.


*	On July 27, 2009, the Investor Share class, Select Share class and Institutional Share class of the Fund were combined into a single class of shares of the Fund. The performance and financial history of the fund is that of the Fund’s former Institutional Shares. Accordingly, the past performance shown is that of the Fund’s former Institutional Shares.

2 Laudus Mondrian Funds

From the President

Jeffrey Mortimer is President, CEO, and CIO of Laudus Funds and SVP of Charles Schwab Investment Management, Inc. He joined the firm in 1997 and has held a variety of executive positions at Schwab.

Dear Shareholder,

Last year we reported that the financial markets had been “besieged with volatility and turmoil” in the wake of what was described as a global economic recession. For the current 12-month reporting period that ended March 31, 2010, many of the major international and domestic equity indices have begun to show signs of recovery and rose more than 50%. While this is welcomed news, central banks in several countries, including the United States, continue to closely monitor financial markets, liquidity, monetary exchange rates, interest rates, and inflation, in their ongoing efforts to stabilize local and global markets.

The advent of 2010 brought in modestly encouraging news about the U.S. economy as unemployment numbers remained at just under 10%, according to the Bureau of Labor Statistics, and consumer spending increased slightly. Likewise, capital spending by businesses in the United States showed signs of improvement, and the Federal Reserve began to withdraw some of its monetary support programs. On the international scene, market returns also rose with emerging markets performing better than those in developed countries. In less-than-encouraging news, residential and non-residential real estate markets here in the United States and in many other countries still reported depressed prices, high inventories, restraints on lending, and an overall hesitancy to initiate new building projects.

During the period, international equity markets performed slightly better than domestic equity markets. Within the international equity markets, small-cap stocks outperformed large-cap stocks and value outpaced growth. On the domestic side, small-cap stocks also outperformed large-cap stocks and small-cap value outpaced small-cap growth.

For the Mondrian Funds, this improved environment in the domestic and international equity markets was reflected in positive fund returns ranging between 12% and 67%. You can read about the performance of the Funds and the comparative indices in the “Manager’s Discussion and Analysis” on the following pages.

The Laudus Mondrian Funds are sub-advised by Mondrian Investment Partners Limited, a London-based institutional investment manager. Founded in 1990, Mondrian is renowned for its international expertise and its adherence to a consistent value-oriented investment philosophy. Mondrian manages more than $64 billion in assets (as of December 31, 2009) for some of the world’s largest companies and public retirement plans.

In closing, I would remind you that should you have any questions about the Funds we are available to answer them at 1-800-447-3332.

Thank you for investing with us.

Sincerely,

Laudus Mondrian Funds 3

The Investment Environment

In a strong reversal from the 12-month period that ended March 31, 2009, the past 12 months produced significant positive returns and high volatility in global capital markets. Nearly all major equity indices gained more than 50%. Generally speaking, the international equity markets fared slightly better than the U.S. markets, while fixed income underperformed both. Commodity indices also had substantial gains, but they were less than the gains seen in equity markets. Globally, as occurred in the previous 12 months, gains were highly synchronized and exhibited a pattern that is often seen during a period of strong gains across global capital markets.

In the United States, large-cap stocks gained about 50% for the period, with a modest spread between growth-and value-style equities, as value outperformed growth by about 4%. U.S. small-cap stocks outperformed U.S. large-cap stocks and gained about 63%. U.S. small-cap value stocks outperformed their growth counterparts and added approximately 65%, while the growth stocks returned about 60%. Internationally, the results were slightly better. International large-cap stocks were up about 55% for the period, but did not do as well as international small-cap stocks, which gained nearly 70%. Similar to the United States, international value stocks outperformed growth stocks, with value gaining about 59% and growth gaining approximately 51%.

What caused these strong returns, especially during the relatively short period of 12 months? In essence, the credit crisis that began in the summer of 2007 and dominated the capital markets through early 2009 appeared to be ending for many investors. Government central banks around the globe lowered interest rates to very low levels, and for the most part, have kept them there. They have also used other tools to help the global financial system maintain sufficient liquidity, such as buying distressed debt from private banks and supporting housing markets by intervening in mortgage markets. As investors gauged the positive impacts of these and other interventions on the capital markets, they shifted from selling securities to buying them.

Economic fundamentals also began showing signs of growth. While the U.S. economy continued to shrink early in the reporting period, the government reported that it began growing again during the period of July 1 through December 31, 2009. According to the Bureau of Labor Statistics, the U.S. unemployment rate, while remaining stubbornly high at 9.7% at the close of the period, nevertheless stopped going up. Furthermore, the report for March 2010, the final month of the reporting period, showed employment gains of 162,000 jobs in the United States, the most since May 2007. Several measures of global manufacturing also gained during the latter half of the reporting period.

From a global perspective, sectors that are generally considered to be cyclical in their growth—meaning that they are more sensitive to a broad level of economic activity—led the markets. The Financials sector gained nearly 80%, as investor confidence returned to the area that had led the global downturn. Materials, up about 79%, and Industrials, up nearly 70%, were also strong during the period. Consumer Discretionary stocks, also considered cyclical in nature, rounded out the top four, posting a gain of more than 65%. Lagging among the sectors were the more defensive, less economically sensitive groups, Utilities, up about 28%, and Telecommunications Services, which gained about 30%. Health Care, also considered defensive, was up about 36%.

Among major developed economies, Australia and Canada performed the best during the period, gaining more than 70% in U.S. dollar terms. Several European countries, notably Sweden, the Netherlands, and Norway, posted similar rates of returns during the period. The United States did slightly worse, gaining about 51%. The United Kingdom, Germany, and France all gained more than 50% and performed roughly in line with the United States. Japan, up about 38%, was a relative laggard among major developed economies. It is important to note that over the entire reporting period, the U.S. dollar lost ground against several major currencies, which boosted the returns for U.S. dollar-based investors in the major developed markets. Emerging markets as a group performed even better than developed markets, gaining about 80% for the 12-month period. A few emerging markets such as India, Russia, and Brazil gained more than 100%.

4 Laudus Mondrian Funds

Laudus Mondrian International Equity Fund

The Laudus Mondrian International Equity Fund Investor Shares returned 40.53% for the 12-month period, while its comparative index, the MSCI EAFE Index returned 54.44%. Equity markets rebounded strongly during the period as economic indicators began to stabilize.

Despite strong absolute returns, the Fund underperformed its index. In Europe, the positive contribution from an underweight to Greece was more than offset by the Fund’s avoidance of the Swedish, Norwegian, and Danish markets. Sweden, up about 90%, Norway, gaining over 70%, and Denmark, also up about 70%, were among the stronger performing markets in Europe during the period. In the Pacific region, Taiwan and Singapore led returns. The Fund benefited from its overweight to Singapore and from its overweight to the Singapore dollar, as well as its allocation to Taiwan. The Fund’s overweight to the Australian dollar also contributed positively.

Stock selection restrained returns because positive selection in Finland was offset by weak selection in France, the United Kingdom (U.K.), Taiwan, and Japan. The Financials Sector rebounded strongly during the period and rose about 70% in the index. While the Fund’s underweight to Financials detracted, stock selection was positive for returns. For example, in the European region, UniCredit and Banco Santander gained 100% and more. In Singapore, United Overseas Bank and Overseas-Chinese Bank also were up very strongly. Additionally, Wharf Holdings in Hong Kong gained more than 130%.

UPM-Kymmene, the Finnish paper company, was the best performing stock for the Fund. The stock increased 142%. Wesfarmers, the Australian conglomerate, was also a strong performer.

The more defensive sectors, such as Telecommunication Services, Health Care, and Consumer Staples were relatively weak for the Fund, gaining about 26%, 37%, and 52%, respectively. Within the Telecommunication Services Sector, KDDI in Japan, France Telecom, and Deutsche Telekon underperformed broader sector returns. In the Health Care Sector, GlaxoSmithKline and Takeda Pharmaceuticals in Japan were also weak. In contrast, Novartis in Switzerland outperformed the sector. Japanese holdings in the Consumer Staples Sector, such as Seven & i Holdings and Kao Corporation, suffered from a weak domestic economy.

Greece had the best performing equity market during the first half of the period in developed Europe. The Greek equity market was heavily weighted towards financial stocks, which had solid performance from April through the end of September 2009. However, in the second half of the period, Greece became the worst performer in the MSCI EAFE Index as news about its sovereign debt risk intensified. Ireland had the worst performing equity market in the MSCI EAFE Index for the entire period and the Irish government implemented several fiscal austerity measures during the period. The U.K. equity market rose 58%, reflecting improvements in economic indicators, but also acknowledging that their AAA sovereign debt rating was downgraded by Standard & Poor’s.

In the Asia-Pacific region, strong growth in China helped the equity markets in Singapore and Hong Kong; they were up 88% and 65%, respectively, in the index. Australia also performed well in the MSCI EAFE equity market, up 87%. Japan had the worst performing major equity market in the region, up only 38%.

Materials was the best performer for the index, rising about 84%. Commodity prices were generally strong, driven by Chinese demand. As financial market stresses abated, financial stocks generated the second highest return, up about 71%. Positive economic data on consumption and consumer sentiment helped to lift the Consumer Discretionary and Consumer Staples Sectors by 54% and 55% respectively. Stronger labor markets in some economies also helped. Health Care was one of the weaker defensive sectors, up only 37%, partly due to struggles around the passage of health-care reform in the United States. Other defensive sectors were also underperformers. The Telecommunication Services Sector was up 32% and Utilities managed to return only about 27%.

As of 3/31/10:

Fund Characteristics


Number of Companies¹		36
Weighted Average Market Cap ($ x 1,000,000)		$62,451
Price/Earnings Ratio (P/E)		16.78
Price/Book Ratio (P/B)		1.61
Portfolio Turnover (One year trailing)		14%

Fund Overview


	Investor Shares	Select Shares	Institutional Shares


Initial Investment	$100	$50,000	$500,000
Inception Date	6/16/2008	6/16/2008	6/16/2008
Total Net Assets ($ x 1,000)	$403	$458	$85,424
Ticker Symbol	LIEQX	LIEFX	LIEIX
Cusip	51855Q614	51855Q564	51855Q580
NAV	$7.52	$7.53	$7.54

Manager views and portfolio holdings may have changed since the report date.


¹		Short-term investments are not included.

6 Laudus Mondrian Funds

Laudus Mondrian International Equity Fund

Performance Summary as of 3/31/10

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.

June 16, 2008 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

June 16, 2008 – March 31, 2010
Performance of a Hypothetical
$50,000 Investment in Select Shares¹

June 16, 2008 – March 31, 2010
Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 Year			Since Inception

Investor Shares (6/16/08)		40.53	%		-13.66	%
Select Shares (6/16/08)		40.68	%		-13.48	%
Institutional Shares (6/16/08)		40.90	%		-13.39	%
MSCI EAFE Index^®(Net)*		54.44	%		-10.63	%

Fund Expense Ratios²: Investor Shares: Net 1.40%; Gross 2.78% / Select Shares: Net 1.12%; Gross 3.10% /

Institutional Shares: Net 1.05%; Gross 2.11%

All figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.


*		The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE^®) Index (Net) 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. This series approximates the minimum possible dividend reinvestment. Investors cannot invest directly in any index and index figures do not include trading and management costs.
¹		Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.

Laudus Mondrian Funds 7

Laudus Mondrian International Equity Fund

Performance Summary as of 3/31/10 continued

Country Weightings % of Investments


Japan		21.3%
United Kingdom		20.5%
France		14.7%
Australia		8.3%
Spain		7.2%
Switzerland		6.4%
Singapore		5.9%
Germany		4.8%
Taiwan		2.5%
Other Countries		8.4%
Total		100.0%

Sector Weightings % of Equities


Financials		19.2%
Telecommunication Services		17.5%
Consumer Staples		17.0%
Energy		12.1%
Health Care		12.0%
Utilities		7.8%
Information Technology		6.1%
Consumer Discretionary		4.8%
Industrials		2.5%
Materials		1.0%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Novartis AG - Reg’d.		4.2%
BP plc		4.1%
Unilever plc		4.0%
Royal Dutch Shell plc, Class A		4.0%
GlaxoSmithKline plc		3.9%
Total S.A.		3.7%
Takeda Pharmaceutical Co., Ltd.		3.5%
CANON, Inc.		3.5%
Carrefour S.A.		3.5%
Kao Corp.		3.5%
Total		37.9%


¹		This list is not a recommendation of any security by the investment adviser.

8 Laudus Mondrian Funds

Laudus Mondrian Global Equity Fund

The Laudus Mondrian Global Equity Fund Investor Shares returned 44.94% for the 12-month period that ended March 31, 2010, while its comparative index, the MSCI World (Net) Index returned 52.37%. Index returns were positive across all developed markets with many showing 70% increases or more and Australia reporting an increase of 86.7%. The smallest gain was recorded by Greece, up 24.1%, which was lower than the country’s earlier highs that pre-dated Greece’s announcement that it could not meet its debt obligations. The Fund underperformed partly as a result of its allocation to more defensive sectors, which was partially offset by positive stock selection.

With its long-term, dividend-discount methodology, Mondrian seeks to avoid being influenced by what can prove to have short-term effects on stock returns. This valuation process led the Fund to more defensive stocks, which resulted in overweights to the Consumer Staples, Health Care, and Telecommunications Services Sectors. All three of these sectors had lower returns than the overall index, and the Fund’s overweight to them detracted from the Fund’s relative performance, despite positive stock selection in the Consumer Discretionary and Telecommunications Services Sectors. The strongest performance was recorded by CBS, which rose by more than 250% and outpaced the Consumer Discretionary Sector return of about 62%. However, stock selection was negative among Health Care stocks; for example, the Japanese pharmaceutical firm Astellas returned about 23%, compared with about 35% overall for the sector.

Stocks in the Financials Sector delivered the strongest performance with an increase of nearly 77% in the index. The Fund’s underweight in Financials hurt performance, even though several of the Fund’s holdings in Financials exceeded the sector’s return. For example, the Fund’s holding in Bank of America reported an increase of more than 150% for the period. Similarly, the Materials, Industrials, and Consumer Discretionary Sectors also reported strong returns for the period, but the Fund was underweight these sectors, too, and that also detracted from Fund performance.

During the 12-month period, all developed markets performed well as they rebounded from the recent lows associated with the global credit crisis. The Fund’s underexposure to some of the best-performing countries—such as Canada, Hong Kong and Sweden—hurt returns. This was partly offset by overweighting Australia, Singapore, Spain, and the United Kingdom (U.K.). Stock selection was also weak, particularly in France, Spain, and the U.K. For example, the Fund’s holding in France Telecom was up about 14% compared to the overall return of about 50% for France. Likewise, Telefonica was up about 26% compared to Spain’s gain of about 50%, and GlaxoSmithKline rose nearly 30% compared with the U.K.’s return of about 58%. On the positive side, Italy’s UniCredit rose about 122% compared to the country’s market gain of around 48%.

As of 3/31/10:

Fund Characteristics


Number of Companies¹		55
Weighted Average Market Cap ($ x 1,000,000)		$80,425
Price/Earnings Ratio (P/E)		16.99
Price/Book Ratio (P/B)		1.73
Portfolio Turnover (One year trailing)		22%

Fund Overview


	Investor Shares	Select Shares	Institutional Shares


Initial Investment	$100	$50,000	$500,000
Inception Date	6/16/2008	6/16/2008	6/16/2008
Total Net Assets ($ x 1,000)	$80	$182	$4,132
Ticker Symbol	LGEQX	LGESX	LGEVX
Cusip	51855Q598	51855Q556	51855Q572
NAV	$8.05	$8.06	$8.06

Manager views and portfolio holdings may have changed since the report date.


¹		Short-term investments are not included.

Laudus Mondrian Funds 9

Laudus Mondrian Global Equity Fund

Performance Summary as of 3/31/10

June 16, 2008 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

June 16, 2008 – March 31, 2010
Performance of a Hypothetical
$50,000 Investment in Select Shares¹

June 16, 2008 – March 31, 2010
Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 Year			Since Inception

Investor Shares (6/16/08)		44.94	%		-8.66	%
Select Shares (6/16/08)		45.43	%		-8.42	%
Institutional Shares (6/16/08)		45.49	%		-8.38	%
MSCI World^® Index (Net)*		52.37	%		-8.64	%

Fund Expense Ratios²: Investor Shares: Net 1.40%; Gross 4.43% / Select Shares: Net 1.12%; Gross 4.27% /

Institutional Shares: Net 1.05%; Gross 4.08%

The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.


*		The Morgan Stanley Capital International World Index (Net) is a free float-adjusted market capitalization index that is designed to measure global developed markets equity performance. This series approximates the minimum possible dividend reinvestment. Investors cannot invest directly in any index and index figures do not include trading and management costs.
¹		Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.

10 Laudus Mondrian Funds

Laudus Mondrian Global Equity Fund

Performance Summary as of 3/31/10 continued

Country Weightings % of Investments


United States		38.6%
United Kingdom		15.5%
France		10.4%
Japan		9.9%
Switzerland		4.8%
Germany		4.0%
Australia		3.9%
Spain		3.1%
Singapore		2.7%
Netherlands		2.6%
Other Countries		4.5%
Total		100.0%

Sector Weightings % of Equities


Health Care		17.3%
Consumer Staples		15.2%
Telecommunication Services		15.0%
Financials		13.5%
Energy		12.0%
Industrials		7.0%
Consumer Discretionary		5.7%
Information Technology		5.6%
Utilities		4.9%
Materials		3.8%
Total		100.0%

Top Equity Holdings % of Net Assets¹


BP plc		3.3%
Novartis AG - Reg’d		3.1%
GlaxoSmithKline plc		3.1%
Total S.A.		3.0%
Chevron Corp.		2.9%
Merck & Co., Inc.		2.7%
Royal Dutch Shell plc, A Shares		2.6%
Unilever plc		2.6%
H.J. Heinz Co.		2.6%
Carrefour S.A.		2.5%
Total		28.4%


¹		This list is not a recommendation of any security by the investment adviser.

Laudus Mondrian Funds 11

Laudus Mondrian Emerging Markets Fund

The Laudus Mondrian Emerging Markets Fund Investor Shares returned 66.74% for the 12-month period, while its comparative index, the MSCI Emerging Markets Index (Net), returned 81.08%. Index returns were positive across all regions for the period. The Fund’s emphasis on selecting defensive stocks was the primary detractor from the Fund’s relative performance.

Emerging markets recorded extraordinary returns for the 12-month period considering that the prospects for most economies had deteriorated sharply in the latter half of 2008. Governments in many countries reacted in an unprecedented manner by establishing monetary policies that supported financial institutions and markets alike. Markets that seemed to have suffered the most in 2008 rebounded in 2009.

On a sector-specific level, returns in the MSCI Emerging Markets Index were most positive in Consumer Discretionary (particularly Autos), Financials, and Materials. The more defensive sectors such as Telecommunication Services, Utilities, and Health Care—while all producing substantial positive returns—underperformed the index. The Fund had a large weighting in Telecommunications, which held back returns.

Factors that detracted from the Fund’s relative performance included its positioning in Brazil, India, and Egypt, as well as the Fund’s cautious stock selection in Taiwan. On the other hand, the Fund’s underweight to Israel and its overweight to Colombia contributed to the Fund’s relative performance. Currency movements increased U.S. dollar returns as most emerging market currencies appreciated relative to the U.S. dollar.

During the period, the Fund sought to increase its exposure to U.S. consumption in certain markets, while at the same time reducing its exposure to export-driven and cyclical names. During the period, the Fund’s process for determining valuations became more complex as stock prices rose rapidly. When this happens, there is always a chance that a correction could follow the rapid rise in prices. On balance though, the Fund continues to be managed in a way that acknowledges that most emerging markets and economies are situated for long-term growth. Consequently, the Fund remains focused on investments that combine attractive valuations with downside protection characteristics.

As of 3/31/10:

Fund Characteristics


Number of Companies¹		43
Weighted Average Market Cap ($ x 1,000,000)		$30,970
Price/Earnings Ratio (P/E)		12.22
Price/Book Ratio (P/B)		2.34
Portfolio Turnover (One year trailing)		44%

Fund Overview


	Investor Shares	Select Shares	Institutional Shares


Initial Investment	$100	$50,000	$500,000
Inception Date	11/2/2007	11/2/2007	11/2/2007
Total Net Assets ($ x 1,000)	$9,437	$4,531	$90,486
Ticker Symbol	LEMIX	LEMSX	LEMNX
Cusip	51855Q648	51855Q630	51855Q622
NAV	$8.79	$8.80	$8.80

Manager views and portfolio holdings may have changed since the report date.


¹		Short-term investments are not included.

12 Laudus Mondrian Funds

Laudus Mondrian Emerging Markets Fund

Performance Summary as of 3/31/10

November 2, 2007 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

November 2, 2007 – March 31, 2010
Performance of a Hypothetical
$50,000 Investment in Select Shares¹

November 2, 2007 – March 31, 2010
Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 Year			Since Inception

Investor Shares (11/2/07)		66.74	%		-4.31	%
Select Shares (11/2/07)		66.91	%		-4.04	%
Institutional Shares (11/2/07)		67.27	%		-4.00	%
MSCI Emerging Markets Index (Net)*		81.08	%		-8.27	%

Fund Expense Ratios²: Investor Shares: Net 1.80%; Gross 2.46% / Select Shares: Net 1.52%; Gross 2.23% /

Institutional Shares: Net 1.45%; Gross 2.13%

The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.


*		The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. Investors cannot invest directly in any index and index figures do not include trading and management costs.
¹		Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.

Laudus Mondrian Funds 13

Laudus Mondrian Emerging Markets Fund

Performance Summary as of 3/31/10 continued

Country Weightings % of Investments


China		20.6%
Brazil		13.4%
Taiwan		12.5%
Republic of Korea		7.1%
South Africa		7.0%
India		6.8%
Turkey		5.3%
Czech Republic		4.6%
Russia		3.6%
Chile		2.8%
Indonesia		2.7%
Thailand		2.6%
Other Countries		11.0%
Total		100.0%

Sector Weightings % of Equities


Financials		23.7%
Telecommunication Services		15.2%
Energy		14.4%
Information Technology		14.0%
Consumer Staples		10.7%
Utilities		9.7%
Industrials		8.5%
Materials		2.3%
Consumer Discretionary		1.5%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Redecard S.A.		4.2%
China Construction Bank Corp., Class H		3.9%
Taiwan Semiconductor Manufacturing Co., Ltd.		3.9%
KT&G Corp.		3.6%
Industrial & Commercial Bank of China Ltd., Class H		3.4%
Tupras-Turkiye Petrol Rafinerileri A/S		3.0%
Chunghwa Telecom Co., Ltd. ADR		2.9%
Enersis S.A. ADR		2.8%
China Mobile Ltd.		2.8%
Asustek Computer, Inc.		2.8%
Total		33.3%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability, fluctuations in currency and exchange rates, and an increased risk of price volatility associated with less uniformity in accounting and reporting requirements. Investing in emerging markets accentuates these risks. Investments in emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries.


¹		This list is not a recommendation of any security by the investment adviser.

14 Laudus Mondrian Funds

Laudus Mondrian International Fixed Income Fund

The Laudus Mondrian International Fixed Income Fund returned 12.85% for the 12-month period that ended March 31, 2010, while its comparative index, the Citigroup non-U.S. Dollar World Government Bond Index, returned 8.41% in U.S. dollar non-hedged terms.

The movement of global government bond yields varied during the period. Intermediate-term yields, for bonds typically maturing in seven to ten years, rose in countries like the United Kingdom (U.K.) on increased worries about inflation, and in Australia where economic growth was strong and where unemployment improved slightly in late 2009. Intermediate-term yields fell in core Eurozone countries. Economic data indicated that economic growth was weak in the Eurozone compared to other developed markets and that growth could remain lethargic in the near term.

Major developed markets currencies appreciated against the U.S. dollar, led by the Australian dollar, which outperformed. Australia’s central bank increased interest rates several times during the 12-month period. The Fund benefited from its overweight to Australia and Poland. Currency gains in Poland contributed to the country’s outperformance, while concerns about inflation remained minimal. Corporate bond spreads continued to contract, especially in the Financials Sector, and the Fund’s modest allocation to corporate bonds helped performance. In contrast, the Fund’s underweight to Canada detracted from relative performance; during the period, the Canadian dollar rose in response to solid economic growth.

As of 3/31/10:

Fund Characteristics


Number of Issues¹		58
Average Maturity		7.33
Modified Duration		5.84
Portfolio Turnover (One year trailing)		67%

Fund Overview


		Fund


Initial Investment		$100
Inception Date		11/2/2007
Total Net Assets ($ x 1,000)		$279,274
Ticker Symbol		LIFNX
Cusip		51855Q655
NAV		$11.20

Manager views and portfolio holdings may have changed since the report date.


¹		Short-term investments are not included.

Laudus Mondrian Funds 15

Laudus Mondrian International Fixed Income Fund

Performance Summary as of 3/31/10

November 2, 2007 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment^1,3

Average Annual Total Returns^1,3


Fund and Inception Date	1 Year			Since Inception

Fund: Laudus Mondrian International Fixed Income Fund (11/2/07)		12.85	%		8.26	%
Citigroup non-U.S. Dollar World Government Bond Index*		8.41	%		5.65	%

Fund Expense Ratios²: Net 0.75%; Gross 0.87%

The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.


*		The Citigroup non-US Dollar World Government Bond Index measures the total rate of return performance for the government bonds of 23 countries, excluding the U.S., with a remaining maturity of at least one year. Investors cannot invest directly in any index and index figures do not include trading and management costs.
¹		Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
²		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.
³		On July 27, 2009, the Investor Share class, Select Share class and Institutional Share class of the fund were combined into a single class of shares of the fund. The performance and financial history of the fund is that of the fund’s former Institutional Shares. Accordingly, the past performance shown is that of the fund’s former Institutional Shares.

16 Laudus Mondrian Funds

Laudus Mondrian International Fixed Income Fund

Performance Summary as of 3/31/10 continued

Country Weightings % of Investments


Japan		11.6%
Australia		10.3%
France*		6.9%
Italy*		6.9%
Belgium		4.8%
Finland		4.4%
Spain*		4.4%
Netherlands*		4.3%
Austria		4.2%
Poland		4.1%
Slovenia		3.9%
Norway*		3.8%
Germany*		3.6%
Ireland		3.5%
United Kingdom		3.4%
Other Countries		3.4%
Supranational**		16.5%
Total		100.0%

Currency Weightings % of Investments


Japanese Yen		39.6%
Euro***		27.2%
Australian Dollar****		13.9%
British Pound***		13.1%
Polish Zloty		4.1%
United States Dollar		2.1%
Other Currencies		0.0%
Total		100.0%

Sector Weightings % of Investments


Government Bonds		59.7%
Supranational		16.5%
Government Agency Obligations		11.9%
Corporate Bonds		7.6%
Securitized		2.9%
Other Investment Companies		1.4%
Total		100.0%

Top Issuers % of Net Assets¹


Australia Government Bond		10.1%
Japan Government Ten Year Bond		7.0%
Italy Government International Bond		5.5%
Belgium Government Bond		4.7%
Nordic Investment Bank		4.4%
France Government Bond OAT		4.3%
Finland Government Bond		4.3%
Instituto de Credito Oficial		4.3%
European Investment Bank		4.3%
Austria Government Bond		4.1%
Total		53.0%


*		Country weights include issues via Samurai Yen bonds issued in Japan by non-Japanese entities.
**		Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others. Bonds are issued and held in Japanese Yen and Australian Dollar.
***		Total exposure includes a cross currency hedge of approximately 13% out of Euros and into UK Sterling.
****		3.6% of Australian Dollar exposure is via an Australian Dollar denominated Supranational bond.
¹		This list is not a recommendation of any security by the investment adviser.

Laudus Mondrian Funds 17

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, 2009 and held through March 31, 2010.

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 or share class’ actual expense ratio 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.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 10/1/09		at 3/31/10		10/1/09–3/31/10



Laudus Mondrian International Equity Fund
Investor Shares
Actual Return		1.40%	$	1,000	$	1,002.70	$	6.99
Hypothetical 5% Return		1.40%	$	1,000	$	1,017.95	$	7.04
Select Shares
Actual Return		1.12%	$	1,000	$	1,004.30	$	5.60
Hypothetical 5% Return		1.12%	$	1,000	$	1,019.35	$	5.64
Institutional Shares
Actual Return		1.05%	$	1,000	$	1,004.60	$	5.25
Hypothetical 5% Return		1.05%	$	1,000	$	1,019.70	$	5.29


Laudus Mondrian Global Equity Fund
Investor Shares
Actual Return		1.41%	$	1,000	$	1,040.80	$	7.17
Hypothetical 5% Return		1.41%	$	1,000	$	1,017.90	$	7.09
Select Shares
Actual Return		1.12%	$	1,000	$	1,041.70	$	5.70
Hypothetical 5% Return		1.12%	$	1,000	$	1,019.35	$	5.64
Institutional Shares
Actual Return		1.06%	$	1,000	$	1,042.10	$	5.40
Hypothetical 5% Return		1.06%	$	1,000	$	1,019.65	$	5.34


Laudus Mondrian Emerging Markets Fund
Investor Shares
Actual Return		1.81%	$	1,000	$	1,069.40	$	9.34
Hypothetical 5% Return		1.81%	$	1,000	$	1,015.91	$	9.10
Select Shares
Actual Return		1.53%	$	1,000	$	1,071.20	$	7.90
Hypothetical 5% Return		1.53%	$	1,000	$	1,017.30	$	7.70
Institutional Shares
Actual Return		1.46%	$	1,000	$	1,071.60	$	7.54
Hypothetical 5% Return		1.46%	$	1,000	$	1,017.65	$	7.34


Laudus Mondrian International Fixed Income Fund
Actual Return		0.76%	$	1,000	$	981.80	$	3.76
Hypothetical 5% Return		0.76%	$	1,000	$	1,021.14	$	3.83


¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights, which covers a 12-month period.

²	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year.

18 Laudus Mondrian Funds

Laudus Mondrian International Equity Fund

Financial Statements

Financial Highlights


	4/1/09–			6/17/08¹–
Investor Shares	3/31/10			3/31/09


Per-Share Data ($)

Net asset value at beginning of period		5.43			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.18	²		0.07
Net realized and unrealized gains (losses)		2.02			(4.59	)

Total from investment operations		2.20			(4.52	)
Less distributions:
Distributions from net investment income		(0.11	)		(0.05	)
Distributions from net realized gains		—			(0.00	)³

Total distributions		(0.11	)		(0.05	)

Net asset value at end of period		7.52			5.43

Total return (%)		40.53			(45.31	)⁴

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.40			1.39	^5,6
Gross operating expenses		1.60			2.78	⁵
Net investment income (loss)		2.47			2.46	⁵
Portfolio turnover rate		14			8	⁴
Net assets, end of period ($ x 1,000)		403			168


	4/1/09–			6/17/08¹–
Select Shares	3/31/10			3/31/09


Per-Share Data ($)

Net asset value at beginning of period		5.44			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.18	²		0.12
Net realized and unrealized gains (losses)		2.03			(4.63	)

Total from investment operations		2.21			(4.51	)
Less distributions:
Distributions from net investment income		(0.12	)		(0.05	)
Distributions from net realized gains		—			(0.00	)³

Total distributions		(0.12	)		(0.05	)

Net asset value at end of period		7.53			5.44

Total return (%)		40.68			(45.16	)⁴

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.12			1.12	⁵
Gross operating expenses		1.31			3.10	⁵
Net investment income (loss)		2.43			2.22	⁵
Portfolio turnover rate		14			8	⁴
Net assets, end of period ($ x 1,000)		458			90

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Distribution from realized gains is less than 0.01.

⁴ Not annualized.

⁵ Annualized.

⁶ The ratio of net operating expenses would have been 1.40% for the Investor Shares, if custody credits had not been included.

See financial notes 19

Laudus Mondrian International Equity Fund

Financial Highlights continued


	4/1/09–			6/17/08¹–
Institutional Shares	3/31/10			3/31/09


Per-Share Data ($)

Net asset value at beginning of period		5.44			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.21	²		0.08
Net realized and unrealized gains (losses)		2.02			(4.59	)

Total from investment operations		2.23			(4.51	)
Less distributions:
Distributions from net investment income		(0.13	)		(0.05	)
Distributions from net realized gains		—			(0.00	)³

Total distributions		(0.13	)		(0.05	)

Net asset value at end of period		7.54			5.44

Total return (%)		40.90			(45.15	)⁴

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.05			1.05	⁵
Gross operating expenses		1.24			2.11	⁵
Net investment income (loss)		2.90			2.52	⁵
Portfolio turnover rate		14			8	⁴
Net assets, end of period ($ x 1,000)		85,424			18,694

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Distribution from realized gains is less than 0.01.

⁴ Not annualized.

⁵ Annualized.

20 See financial notes

Laudus Mondrian International Equity Fund

Portfolio Holdings as of March 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

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 Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.

Cost

Value

Holdings by Category

($)

.4%

Common Stock

77,011,085

83,988,654

.2%

Other Investment Company

1,923,271

.6%

Total Investments

78,934,356

85,911,925

.4%

Other Assets and Liabilities, Net

373,177

100

.0%

Net Assets

86,285,102


	Number		Value
Security	of Shares		($)

Common Stock 97.4% of net assets

Australia 8.3%


Food & Staples Retailing 2.7%
Wesfarmers Ltd.		78,447		2,285,845


Insurance 2.7%
QBE Insurance Group Ltd.		122,463		2,337,815


Telecommunication Services 2.9%
Telstra Corp., Ltd.		914,205		2,506,691

				7,130,351

Finland 1.0%


Materials 1.0%
UPM-Kymmene Oyj		65,097		863,185

France 14.7%


Banks 1.8%
Societe Generale		25,303		1,588,007


Capital Goods 2.4%
Compagnie de Saint-Gobain		43,135		2,071,499


Energy 3.7%
Total S.A.		54,567		3,166,954


Food & Staples Retailing 3.5%
Carrefour S.A.		62,790		3,025,367


Telecommunication Services 3.3%
France Telecom S.A.		117,599		2,816,812

				12,668,639

Germany 4.8%


Telecommunication Services 1.5%
Deutsche Telekom AG - Reg’d		95,313		1,288,031


Utilities 3.3%
RWE AG		32,150		2,852,094

				4,140,125

Hong Kong 1.4%


Utilities 1.4%
Hongkong Electric Holdings Ltd.		205,000		1,215,861

Italy 1.8%


Banks 1.8%
Intesa Sanpaolo *		422,719		1,574,233

Japan 21.2%


Automobiles & Components 2.8%
Toyota Motor Corp.		59,500		2,392,456


Food & Staples Retailing 2.9%
Seven & i Holdings Co., Ltd.		103,400		2,501,356


Household & Personal Products 3.5%
Kao Corp.		117,600		2,982,525


Insurance 2.5%
Tokio Marine Holdings, Inc.		75,900		2,139,708


Pharmaceuticals, Biotechnology & Life Sciences 3.5%
Takeda Pharmaceutical Co., Ltd.		69,300		3,051,552


Technology Hardware & Equipment 3.5%
CANON, Inc.		65,700		3,038,969


Telecommunication Services 2.5%
KDDI Corp.		423		2,189,791

				18,296,357

Netherlands 1.9%


Media 1.9%
Reed Elsevier N.V.		136,684		1,658,773

Singapore 5.9%


Banks 4.2%
Oversea-Chinese Banking Corp., Ltd.		303,864		1,888,431
United Overseas Bank Ltd.		125,000		1,712,937

				3,601,368


Telecommunication Services 1.7%
Singapore Telecommunications Ltd.		645,000		1,459,020

				5,060,388

Spain 7.1%


Banks 1.7%
Banco Santander S.A.		107,644		1,427,790


Telecommunication Services 2.5%
Telefonica S.A.		92,913		2,201,528

See financial notes 21

Laudus Mondrian International Equity Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Utilities 2.9%
Iberdrola S.A.		297,871		2,522,271

				6,151,589

Switzerland 6.4%


Insurance 2.2%
Zurich Financial Services AG		7,468		1,915,493


Pharmaceuticals, Biotechnology & Life Sciences 4.2%
Novartis AG - Reg’d		66,411		3,592,431

				5,507,924

Taiwan 2.5%


Semiconductors & Semiconductor Equipment 2.5%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		1,085,154		2,102,746

United Kingdom 20.4%


Energy 8.1%
BP plc		375,258		3,551,873
Royal Dutch Shell plc, Class A		118,448		3,425,326

				6,977,199


Food, Beverage & Tobacco 4.0%
Unilever plc		118,312		3,463,541


Insurance 1.8%
Aviva plc		260,588		1,522,317


Pharmaceuticals, Biotechnology & Life Sciences 3.9%
GlaxoSmithKline plc		176,667		3,391,079


Telecommunication Services 2.6%
Vodafone Group plc		979,001		2,264,347

				17,618,483

Total Common Stock (Cost $77,011,085)				83,988,654




Other Investment Company 2.2% of net assets

United States 2.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		1,923,271		1,923,271

Total Other Investment Company (Cost $1,923,271)				1,923,271



End of Investments.

At 03/31/10, the tax basis cost of the fund’s investments was $79,299,004 and the unrealized appreciation and depreciation were $7,313,915 and ($700,994), respectively, with a net unrealized appreciation of $6,612,921.

At 03/31/10, the values of certain foreign securities held by the fund aggregating $82,772,793 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.


Reg’d —		Registered
ADR —		American Depositary Receipt

22 See financial notes

Laudus Mondrian International Equity Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $78,934,356)		$85,911,925
Foreign currency, at value (cost $155,285)		155,035
Receivables:
Investments sold		80,461
Dividends		298,816
Fund shares sold		118,830
Foreign tax reclaims		35,316
Interest		137
Prepaid expenses	+	1,629

Total assets		86,602,149

Liabilities

Payables:
Investments bought		254,293
Investment adviser fees		5,251
Trustee’s retirement plan		596
Distribution and shareholder services fees		82
Accrued expenses	+	56,825

Total liabilities		317,047

Net Assets

Total assets		86,602,149
Total liabilities	−	317,047

Net assets		$86,285,102

Net Assets by Source
Capital received from investors		79,068,487
Net investment income not yet distributed		605,281
Net realized capital losses		(364,648	)
Net unrealized capital gains		6,975,982

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$403,089		53,603			$7.52
Select Shares	$457,590		60,758			$7.53
Institutional Shares	$85,424,423		11,326,849			$7.54

See financial notes 23

Laudus Mondrian International Equity Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends (net of foreign withholding taxes of $198,141)		$2,463,144
Interest	+	3,869

Total investment income		2,467,013

Expenses

Investment adviser fees		531,005
Professional fees		56,670
Accounting and administration fees		52,086
Transfer agent fees		45,777
Custodian fees		35,593
Registration fees		24,204
Trustees’ fees		11,345
Shareholder reports		4,257
Distribution and shareholder services fees (Investor Shares )		794
Sub-Accounting fees:
Investor Shares		437
Select Shares		258
Interest expense		75
Other expenses	+	11,548

Total expenses		774,049
Expense reduction by adviser	−	117,504

Net expenses	−	656,545

Net investment income		1,810,468

Realized and Unrealized Gains (Losses)

Net realized gains on investments		344,822
Net realized gains on foreign currency transactions	+	4,795

Net realized gains		349,617
Net unrealized gains on investments		12,348,761
Net unrealized losses on foreign currency translations	+	(3,013	)

Net unrealized gains	+	12,345,748

Net realized and unrealized gains		12,695,365

Net increase in net assets resulting from operations		$14,505,833

24 See financial notes

Laudus Mondrian International Equity Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10			*6/17/08-3/31/09**
Net investment income		$1,810,468		$251,091
Net realized gains (losses)		349,617		(639,660	)
Net unrealized gains (losses)	+	12,345,748		(5,369,766	)

Increase (Decrease) in net assets from operations		14,505,833		(5,758,335	)

Distributions to Shareholders

Distributions from net investment income
Investor Shares		7,398		591
Select Shares		7,351		1,300
Institutional Shares	+	1,335,069		173,024

Total distributions from net investment income		$1,349,818		$174,915


Distributions from net realized gains
Investor Shares		—		25
Select Shares		—		51
Institutional Shares	+	—		6,444

Total distributions from net realized gains		$—		$6,520

Total distributions		$1,349,818		$181,435

Transactions in Fund Shares


		4/1/09-3/31/10					*6/17/08-3/31/09**
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			51,524		$374,672			32,887		$227,554
Select Shares			50,770		362,976			38,195		329,781
Institutional Shares	+		9,108,053		62,739,667			3,424,157		24,406,571

Total shares sold			9,210,347		$63,477,315			3,495,239		$24,963,906


Shares Reinvested
Investor Shares			950		$7,197			92		$616
Select Shares			861		6,539			203		1,351
Institutional Shares	+		39,447		299,800			12,699		84,704

Total shares reinvested			41,258		$313,536			12,994		$86,671


Shares Redeemed
Investor Shares			(29,708	)	($222,012	)		(2,142	)	($14,629	)
Select Shares			(7,379	)	(41,398	)		(21,892	)	(142,072	)
Institutional Shares	+		(1,256,943	)	(9,349,540	)		(564	)	(2,920	)

Total shares redeemed			(1,294,030	)	($9,612,950	)		(24,598	)	($159,621	)

Net transactions in fund shares			7,957,575		$54,177,901			3,483,635		$24,890,956

Shares Outstanding and Net Assets

		4/1/09-3/31/10					*6/17/08-3/31/09**
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			3,483,635		$18,951,186			—		$—
Total increase	+		7,957,575		67,333,916			3,483,635		18,951,186

End of period			11,441,210		$86,285,102			3,483,635		$18,951,186


Net investment income not yet distributed					$605,281					$117,444


*		Commencement of operations.

See financial notes 25

Laudus Mondrian Global Equity Fund

Financial Statements

Financial Highlights


	4/1/09–			6/17/08¹–
Investor Shares	3/31/10			3/31/09


Per-Share Data ($)

Net asset value at beginning of period		5.68			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.17	²		0.17
Net realized and unrealized gains (losses)		2.38			(4.27	)

Total from investment operations		2.55			(4.10	)
Less distributions:
Distributions from net investment income		(0.18	)		(0.22	)

Net asset value at end of period		8.05			5.68

Total return (%)		44.94			(41.35	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.39			1.40	⁴
Gross operating expenses		5.30			4.43	⁴
Net investment income (loss)		2.30			2.63	⁴
Portfolio turnover rate		22			14	³
Net assets, end of period ($ x 1,000)		80			34


	4/1/09–			6/17/08¹–
Select Shares	3/31/10			3/31/09


Per-Share Data ($)

Net asset value at beginning of period		5.68			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.19	²		0.16
Net realized and unrealized gains (losses)		2.39			(4.25	)

Total from investment operations		2.58			(4.09	)
Less distributions:
Distributions from net investment income		(0.20	)		(0.23	)

Net asset value at end of period		8.06			5.68

Total return (%)		45.43			(41.27	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.11			1.12	⁴
Gross operating expenses		5.13			4.27	⁴
Net investment income (loss)		2.59			2.89	⁴
Portfolio turnover rate		22			14	³
Net assets, end of period ($ x 1,000)		182			33

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ Annualized.

26 See financial notes

Laudus Mondrian Global Equity Fund

Financial Highlights continued


	4/1/09–			6/17/08¹–
Institutional Shares	3/31/10			3/31/09


Per-Share Data ($)

Net asset value at beginning of period		5.68			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.20	²		0.16
Net realized and unrealized gains (losses)		2.38			(4.25	)

Total from investment operations		2.58			(4.09	)
Less distributions:
Distributions from net investment income		(0.20	)		(0.23	)

Net asset value at end of period		8.06			5.68

Total return (%)		45.49			(41.25	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.03			1.05	⁴
Gross operating expenses		4.96			4.08	⁴
Net investment income (loss)		2.68			2.74	⁴
Portfolio turnover rate		22			14	³
Net assets, end of period ($ x 1,000)		4,132			2,840

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ Annualized.

See financial notes 27

Laudus Mondrian Global Equity Fund

Portfolio Holdings as of March 31, 2010

Cost

Value

Holdings by Category

($)

.6%

Common Stock

4,902,098

4,330,965

.7%

Other Investment Company

75,850

100

.3%

Total Investments

4,977,948

4,406,815

.3)%

Other Assets and Liabilities, Net

(13,456

)

100

.0%

Net Assets

4,393,359


	Number		Value
Security	of Shares		($)

Common Stock 98.6% of net assets

Australia 3.9%


Insurance 1.1%
QBE Insurance Group Ltd.		2,560		48,871


Materials 1.2%
Amcor Ltd.		9,273		54,343


Telecommunication Services 1.6%
Telstra Corp., Ltd.		24,896		68,263

				171,477

Canada 1.7%


Telecommunication Services 1.7%
BCE, Inc.		2,600		76,414

France 10.5%


Banks 2.0%
Societe Generale		1,427		89,558


Capital Goods 1.1%
Vinci S.A.		781		45,977


Energy 3.0%
Total S.A.		2,301		133,545


Food & Staples Retailing 2.6%
Carrefour S.A.		2,320		111,783


Telecommunication Services 1.8%
France Telecom S.A.		3,282		78,613

				459,476

Germany 4.0%


Telecommunication Services 1.9%
Deutsche Telekom AG - Reg’d		6,079		82,150


Utilities 2.1%
RWE AG		1,051		93,236

				175,386

Italy 1.2%


Banks 1.2%
UniCredit S.p.A. *		17,493		51,579

Japan 9.9%


Food & Staples Retailing 1.4%
Seven & i Holdings Co., Ltd.		2,600		62,897


Insurance 1.3%
Tokio Marine Holdings, Inc.		2,100		59,201


Materials 1.0%
Nitto Denko Corp.		1,100		42,716


Pharmaceuticals, Biotechnology & Life Sciences 3.1%
Astellas Pharma, Inc.		1,600		57,957
Takeda Pharmaceutical Co., Ltd.		1,800		79,261

				137,218


Technology Hardware & Equipment 2.2%
Canon, Inc.		2,100		97,136


Transportation 0.9%
West Japan Railway Co.		11		37,900

				437,068

Netherlands 2.6%


Diversified Financials 1.7%
ING Groep N.V. CVA *		7,488		74,188


Media 0.9%
Reed Elsevier N.V.		3,221		39,089

				113,277

Singapore 2.7%


Banks 0.9%
Oversea-Chinese Banking Corp., Ltd.		6,494		40,358


Capital Goods 0.6%
Singapore Technologies Engineering Ltd.		11,000		25,046


Telecommunication Services 1.2%
Singapore Telecommunications Ltd.		24,000		54,289

				119,693

Spain 3.1%


Telecommunication Services 0.9%
Telefonica S.A.		1,555		36,845


Utilities 2.2%
Iberdrola S.A.		11,585		98,098

				134,943

28 See financial notes

Laudus Mondrian Global Equity Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Switzerland 4.8%


Insurance 1.6%
Zurich Financial Services AG		277		71,049


Pharmaceuticals, Biotechnology & Life Sciences 3.2%
Novartis AG - Reg’d		2,552		138,047

				209,096

Taiwan 1.6%


Semiconductors & Semiconductor Equipment 1.6%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		37,184		72,053

United Kingdom 15.6%


Consumer Services 1.1%
Compass Group plc		6,191		49,424


Energy 5.9%
BP plc		15,112		143,037
Royal Dutch Shell plc, Class A		3,972		114,864

				257,901


Food, Beverage & Tobacco 2.6%
Unilever plc		3,918		114,698


Insurance 0.6%
Aviva plc		4,511		26,353


Pharmaceuticals, Biotechnology & Life Sciences 3.1%
GlaxoSmithKline plc		6,994		134,248


Telecommunication Services 2.3%
Vodafone Group plc		44,174		102,171

				684,795

United States 37.0%


Banks 1.2%
Wells Fargo & Co.		1,755		54,616


Capital Goods 4.5%
3M Co.		1,100		91,927
General Electric Co.		5,700		103,740

				195,667


Diversified Financials 1.6%
Bank of America Corp.		3,950		70,507


Energy 2.9%
Chevron Corp.		1,700		128,911


Food & Staples Retailing 2.0%
Wal-Mart Stores, Inc.		1,600		88,960


Food, Beverage & Tobacco 6.4%
ConAgra Foods, Inc.		3,800		95,266
General Mills, Inc.		1,000		70,790
H.J. Heinz Co.		2,500		114,025

				280,081


Materials 1.5%
Alcoa, Inc.		4,700		66,928


Media 1.2%
CBS Corp., Class B - Non Voting Shares		3,900		54,366


Pharmaceuticals, Biotechnology & Life Sciences 7.8%
Johnson & Johnson		1,700		110,840
Merck & Co., Inc.		3,200		119,520
Pfizer, Inc.		6,465		110,875

				341,235


Retailing 2.3%
Genuine Parts Co.		2,400		101,376


Software & Services 1.7%
Microsoft Corp.		2,500		73,175


Telecommunication Services 3.4%
AT&T, Inc.		2,900		74,936
Verizon Communications, Inc.		2,400		74,448

				149,384


Utilities 0.5%
Edison International		600		20,502

				1,625,708

Total Common Stock (Cost $4,902,098)				4,330,965




Other Investment Company 1.7% of net assets

United States 1.7%
State Street Institutional Liquid Reserves Fund - Institutional Class		75,850		75,850

Total Other Investment Company (Cost $75,850)				75,850



End of Investments.

At 03/31/10, the tax basis cost of the fund’s investments was $4,977,964 and the unrealized appreciation and depreciation were $166,045 and ($737,194), respectively, with a net unrealized depreciation of ($571,149).

At 03/31/10, the values of certain foreign securities held by the fund aggregating $2,628,843 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.


CVA —		Dutch Certificate
Reg’d —		Registered
ADR —		American Depositary Receipt

See financial notes 29

Laudus Mondrian Global Equity Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $4,977,948)		$4,406,815
Foreign currency, at value (cost $12,175)		12,246
Receivables:
Investments sold		22,549
Dividends		13,735
Foreign tax reclaims		1,726
Fund shares sold		150
Interest		8
Prepaid expenses	+	106

Total assets		4,457,335

Liabilities

Payables:
Investments bought		20,688
Investment adviser fees		200
Trustee’s retirement plan		41
Trustees’ fees		17
Distribution and shareholder services fees		16
Accrued expenses	+	43,014

Total liabilities		63,976

Net Assets

Total assets		4,457,335
Total liabilities	−	63,976

Net assets		$4,393,359

Net Assets by Source
Capital received from investors		5,336,816
Net investment income not yet distributed		26,164
Net realized capital losses		(398,517	)
Net unrealized capital losses		(571,104	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$79,537		9,883			$8.05
Select Shares	$182,082		22,590			$8.06
Institutional Shares	$4,131,740		512,648			$8.06

30 See financial notes

Laudus Mondrian Global Equity Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends (net of foreign withholding taxes of $8,672)		$146,383
Interest	+	173

Total investment income		146,556

Expenses

Investment adviser fees		33,617
Accounting and administration fees		51,038
Professional fees		48,767
Transfer agent fees		25,993
Registration fees		23,189
Trustees’ fees		6,719
Custodian fees		3,235
Sub-Accounting fees:
Investor Shares		87
Select Shares		114
Distribution and shareholder services fees (Investor Shares )		141
Shareholder reports		86
Interest expense		1
Other expenses	+	3,797

Total expenses		196,784
Expense reduction by adviser	−	155,764

Net expenses	−	41,020

Net investment income		105,536

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(111,919	)
Net realized gains on foreign currency transactions	+	928

Net realized losses		(110,991	)
Net unrealized gains on investments		1,364,950
Net unrealized losses on foreign currency translations	+	(166	)

Net unrealized gains	+	1,364,784

Net realized and unrealized gains		1,253,793

Net increase in net assets resulting from operations		$1,359,329

See financial notes 31

Laudus Mondrian Global Equity Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10				*6/17/08-3/31/09**
Net investment income		$105,536			$82,068
Net realized losses		(110,991	)		(223,624	)
Net unrealized gains (losses)	+	1,364,784			(1,935,888	)

Increase (Decrease) in net assets from operations		1,359,329			(2,077,444	)

Distributions to Shareholders

Distributions from net investment income
Investor Shares		1,454			918
Select Shares		4,347			1,239
Institutional Shares	+	100,300			117,100

Total distributions from net investment income		$106,101			$119,257

Transactions in Fund Shares


		4/1/09-3/31/10					*6/17/08-3/31/09**
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			5,771		$42,376			7,553		$60,839
Select Shares			16,313		100,000			5,549		51,715
Institutional Shares	+		—		—			500,003		5,000,030

Total shares sold			22,084		$142,376			513,105		$5,112,584


Shares Reinvested
Investor Shares			174		$1,379			111		$756
Select Shares			548		4,347			182		1,239
Institutional Shares	+		12,648		100,300			—		—

Total shares reinvested			13,370		$106,026			293		$1,995


Shares Redeemed
Investor Shares			(2,103	)	($15,198	)		(1,623	)	($10,909	)
Select Shares			—		—			(2	)	(19	)
Institutional Shares	+		—		—			(3	)	(23	)

Total shares redeemed			(2,103	)	($15,198	)		(1,628	)	($10,951	)

Net transactions in fund shares			33,351		$233,204			511,770		$5,103,628

Shares Outstanding and Net Assets

		4/1/09-3/31/10					*6/17/08-3/31/09**
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			511,770		$2,906,927			—		$—
Total increase	+		33,351		1,486,432			511,770		2,906,927

End of period			545,121		$4,393,359			511,770		$2,906,927


Net investment income not yet distributed					$26,164					$25,801


*		Commencement of operations.

32 See financial notes

Laudus Mondrian Emerging Markets Fund

Financial Statements

Financial Highlights


	4/1/09–			4/1/08–			11/2/07¹–
Investor Shares	3/31/10			3/31/09			3/31/08


Per-Share Data ($)

Net asset value at beginning of period		5.33			9.29			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.09	²		0.11			0.02
Net realized and unrealized gains (losses)		3.46			(4.01	)		(0.72	)

Total from investment operations		3.55			(3.90	)		(0.70	)
Less distributions:
Distributions from net investment income		(0.09	)		(0.06	)		(0.01	)

Net asset value at end of period		8.79			5.33			9.29

Total return (%)		66.74			(42.02	)		(6.98	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.81	⁴		1.80			1.82	^5,6
Gross operating expenses		2.08			2.46			2.79	⁵
Net investment income (loss)		1.17			1.54			0.89	⁵
Portfolio turnover rate		44			52			49	³
Net assets, end of period ($ x 1,000)		9,437			1,927			1,937


	4/1/09–			4/1/08–			11/2/07¹–
Select Shares	3/31/10			3/31/09			3/31/08


Per-Share Data ($)

Net asset value at beginning of period		5.34			9.31			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.10	²		0.08			0.02
Net realized and unrealized gains (losses)		3.47			(3.97	)		(0.70	)

Total from investment operations		3.57			(3.89	)		(0.68	)
Less distributions:
Distributions from net investment income		(0.11	)		(0.08	)		(0.01	)

Net asset value at end of period		8.80			5.34			9.31

Total return (%)		66.91			(41.82	)		(6.75	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.53	⁷		1.52			1.54	^5,8
Gross operating expenses		1.78			2.23			2.74	⁵
Net investment income (loss)		1.17			1.70			0.69	⁵
Portfolio turnover rate		44			52			49	³
Net assets, end of period ($ x 1,000)		4,531			559			760

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ The ratio of net operating expenses would have been 1.80% if certain non-routine expenses (proxy expense) had not been incurred.

⁵ Annualized.

⁶ The ratio of net operating expenses would have been 1.80%, if interest expense had not been included.

⁷ The ratio of net operating expenses would have been 1.52% if certain non-routine expenses (proxy expense) had not been incurred.

⁸ The ratio of net operating expenses would have been 1.52%, if interest expense had not been included.

See financial notes 33

Laudus Mondrian Emerging Markets Fund

Financial Highlights continued


	4/1/09–			4/1/08–			11/2/07¹–
Institutional Shares	3/31/10			3/31/09			3/31/08


Per-Share Data ($)

Net asset value at beginning of period		5.33			9.29			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.14	²		0.10			0.02
Net realized and unrealized gains (losses)		3.44			(3.98	)		(0.71	)

Total from investment operations		3.58			(3.88	)		(0.69	)
Less distributions:
Distributions from net investment income		(0.11	)		(0.08	)		(0.02	)

Net asset value at end of period		8.80			5.33			9.29

Total return (%)		67.27			(41.78	)		(6.94	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.46	⁴		1.45			1.47	^5,6
Gross operating expenses		1.70			2.13			2.62	⁵
Net investment income (loss)		1.79			1.94			0.59	⁵
Portfolio turnover rate		44			52			49	³
Net assets, end of period ($ x 1,000)		90,486			25,234			19,414

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ The ratio of net operating expenses would have been 1.45% if certain non-routine expenses (proxy expense) had not been incurred.

⁵ Annualized.

⁶ The ratio of net operating expenses would have been 1.45%, if interest expense had not been included.

34 See financial notes

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings as of March 31, 2010


				Cost		Value
Holdings by Category				($)		($)

	93	.9%	Common Stock		86,654,058		98,047,464
	3	.3%	Preferred Stock		2,383,732		3,412,534
	1	.2%	Other Investment Company		1,270,832		1,270,832


	98	.4%	Total Investments		90,308,622		102,730,830
	1	.6%	Other Assets and Liabilities, Net				1,723,448


	100	.0%	Net Assets				104,454,278


	Number		Value
Security	of Shares		($)

Common Stock 93.9% of net assets

Brazil 11.3%


Materials 2.3%
Vale S.A. ADR		85,800		2,381,808


Software & Services 4.2%
Redecard S.A.		238,000		4,403,070


Transportation 2.6%
Companhia de Concessoes Rodoviarias		125,200		2,780,189


Utilities 2.2%
CPFL Energia S.A. ADR		37,100		2,260,874

				11,825,941

Chile 2.8%


Utilities 2.8%
Enersis S.A. ADR		145,400		2,906,546

China 20.3%


Banks 7.3%
China Construction Bank Corp., Class H		4,980,000		4,071,325
Industrial & Commercial Bank of China Ltd., Class H		4,691,000		3,568,812

				7,640,137


Capital Goods 1.8%
Beijing Enterprises Holdings Ltd.		270,000		1,875,451


Food, Beverage & Tobacco 2.5%
China Yurun Food Group Ltd.		871,000		2,658,428


Household & Personal Products 2.1%
Hengan International Group Co., Ltd.		288,500		2,150,687


Telecommunication Services 2.8%
China Mobile Ltd.		301,000		2,894,545


Transportation 3.8%
China Merchants Holdings International Co., Ltd.		542,000		1,991,445
China Shipping Development Co., Ltd., Class H		1,210,000		1,971,263

				3,962,708

				21,181,956

Columbia 2.3%


Banks 2.3%
Bancolombia S.A. ADR		53,600		2,447,376

Czech Republic 4.5%


Banks 2.6%
Komercni Banka A/S		13,492		2,744,714


Utilities 1.9%
CEZ A/S		41,030		1,944,091

				4,688,805

Egypt 0.2%


Telecommunication Services 0.2%
Telecom Egypt		70,074		216,897

India 6.7%


Banks 2.4%
Axis Bank Ltd.		96,487		2,515,454


Diversified Financials 2.1%
Rural Electrification Corp., Ltd. *		377,387		2,117,804


Telecommunication Services 2.2%
Bharti Airtel Ltd.		331,293		2,313,518

				6,946,776

Indonesia 2.6%


Utilities 2.6%
PT Perusahaan Gas Negara		5,886,500		2,743,342

Kazahkstan 2.2%


Energy 2.2%
KazMunaiGas Exploration Production GDR		91,270		2,251,631

Malaysia 2.2%


Telecommunication Services 2.2%
Maxis Berhad		1,383,500		2,264,834

See financial notes 35

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Philippines 2.3%


Telecommunication Services 2.3%
Philippine Long Distance Telephone Co. ADR		45,800		2,440,224

Poland 0.4%


Banks 0.4%
Bank Pekao S.A. *		6,689		388,906

Republic of Korea 5.6%


Banks 1.9%
KB Financial Group, Inc. *		35,297		1,699,924
KB Financial Group, Inc. ADR *		6,250		299,750

				1,999,674


Food, Beverage & Tobacco 3.7%
KT&G Corp.		68,789		3,805,452

				5,805,126

Russia 3.6%


Energy 3.6%
Gazprom ADR		82,150		1,928,061
LUKOIL ADR		32,000		1,814,400

				3,742,461

South Africa 6.8%


Diversified Financials 2.0%
African Bank Investments Ltd.		430,599		2,103,174


Energy 2.6%
Sasol		66,971		2,775,664


Food, Beverage & Tobacco 2.2%
Tiger Brands Ltd.		90,516		2,274,666

				7,153,504

Taiwan 12.3%


Banks 0.1%
Chinatrust Financial Holding Co., Ltd.		197,327		111,928


Semiconductors & Semiconductor Equipment 6.6%
MediaTek, Inc.		163,550		2,838,658
Taiwan Semiconductor Manufacturing Co., Ltd.		2,089,719		4,049,332

				6,887,990


Technology Hardware & Equipment 2.7%
Asustek Computer, Inc.		1,659,069		2,889,071


Telecommunication Services 2.9%
Chunghwa Telecom Co., Ltd. ADR		154,102		2,994,202

				12,883,191

Thailand 2.6%


Energy 2.6%
PTT PCL		334,300		2,708,724

Turkey 5.2%


Banks 0.1%
Turkiye Garanti Bankasi A/S		23,959		112,317


Energy 3.0%
Tupras-Turkiye Petrol Rafinerileri A/S		136,090		3,091,243


Telecommunication Services 2.1%
Turkcell Iletisim Hizmetleri A/S		371,331		2,247,664

				5,451,224

Total Common Stock (Cost $86,654,058)				98,047,464




Preferred Stock 3.3% of net assets

Brazil 1.8%


Banks 1.8%
Itausa - Investimentos Itau S.A.		276,144		1,891,323

Republic of Korea 1.5%


Automobiles & Components 1.5%
Hyundai Motor Co.		41,070		1,521,211

Total Preferred Stock (Cost $2,383,732)				3,412,534




Other Investment Company 1.2% of net assets

United States 1.2%
State Street Institutional Liquid Reserves Fund - Institutional Class		1,270,832		1,270,832

Total Other Investment Company (Cost $1,270,832)				1,270,832



End of Investments.

At 03/31/10, the tax basis cost of the fund’s investments was $93,171,827 and the unrealized appreciation and depreciation were $10,301,445 and ($742,442) respectively, with a net unrealized appreciation of $9,559,003.

At 03/31/10, the values of certain foreign securities held by the fund aggregating $65,686,986 were adjusted from their closing market values following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt

36 See financial notes

Laudus Mondrian Emerging Markets Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $90,308,622)		$102,730,830
Foreign currency, at value (cost $1,662,561)		1,666,744
Receivables:
Investments sold		725,381
Fund shares sold		680,842
Dividends		285,326
Foreign tax reclaims		249
Interest		204
Prepaid expenses	+	1,848

Total assets		106,091,424

Liabilities

Payables:
Investments bought		1,410,404
Fund shares redeemed		84,676
Investment adviser fees		7,358
Distribution and shareholder services fees		1,996
Trustees’ fees		490
Accrued expenses	+	132,222

Total liabilities		1,637,146

Net Assets

Total assets		106,091,424
Total liabilities	−	1,637,146

Net assets		$104,454,278

Net Assets by Source
Capital received from investors		98,423,997
Net investment income not yet distributed		81,040
Net realized capital losses		(6,418,086	)
Net unrealized capital gains		12,367,327

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$9,436,843		1,073,961			$8.79
Select Shares	$4,531,279		514,849			$8.80
Institutional Shares	$90,486,156		10,285,636			$8.80

See financial notes 37

Laudus Mondrian Emerging Markets Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends (net of foreign withholding taxes of $218,074)		$2,158,001
Interest	+	5,174

Total investment income		2,163,175

Expenses

Investment adviser fees		810,598
Custodian fees		104,238
Professional fees		57,670
Accounting and administration fees		49,162
Registration fees		36,300
Transfer agent fees		31,096
Distribution and shareholder services fees (Investor Shares )		17,403
Shareholder reports		11,817
Trustees’ fees		11,678
Sub-Accounting fees:
Investor Shares		9,634
Select Shares		1,933
Interest expense		291
Other expenses	+	33,925

Total expenses		1,175,745
Expense reduction by adviser	−	166,130
Custody credits	−	7

Net expenses	−	1,009,608

Net investment income		1,153,567

Realized and Unrealized Gains (Losses)

Net realized gains on investments		140,958
Net realized losses on foreign currency transactions	+	(63,289	)

Net realized gains		77,669
Net unrealized gains on investments		23,736,499
Net unrealized gains on foreign currency translations	+	6,897

Net unrealized gains	+	23,743,396

Net realized and unrealized gains		23,821,065

Net increase in net assets resulting from operations		$24,974,632

38 See financial notes

Laudus Mondrian Emerging Markets Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10			4/1/08-3/31/09
Net investment income		$1,153,567		$503,769
Net realized gains (losses)		77,669		(5,856,065	)
Net unrealized gains (losses)	+	23,743,396		(11,236,403	)

Increase (Decrease) in net assets from operations		24,974,632		(16,588,699	)

Distributions to Shareholders

Distributions from net investment income
Investor Shares		99,099		27,359
Select Shares		45,364		14,482
Institutional Shares	+	924,199		331,693

Total distributions from net investment income		$1,068,662		$373,534

Transactions in Fund Shares


		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			1,152,477		$8,887,479			613,995		$4,874,466
Select Shares			602,229		4,964,897			256,716		1,613,030
Institutional Shares	+		6,024,244		47,508,182			3,669,648		25,898,356

Total shares sold			7,778,950		$61,360,558			4,540,359		$32,385,852


Shares Reinvested
Investor Shares			9,692		$81,609			4,795		$26,132
Select Shares			4,950		41,731			2,510		13,678
Institutional Shares	+		5,603		47,231			35,677		194,084

Total shares reinvested			20,245		$170,571			42,982		$233,894


Shares Redeemed
Investor Shares			(449,546	)	($3,638,090	)		(465,969	)	($2,619,733	)
Select Shares			(197,123	)	(1,576,529	)		(236,046	)	(1,396,739	)
Institutional Shares	+		(476,176	)	(3,489,305	)		(1,062,185	)	(6,030,105	)

Total shares redeemed			(1,122,845	)	($8,703,924	)		(1,764,200	)	($10,046,577	)

Net transactions in fund shares			6,676,350		$52,827,205			2,819,141		$22,573,169

Shares Outstanding and Net Assets

		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			5,198,096		$27,721,103			2,378,955		$22,110,167
Total increase	+		6,676,350		76,733,175			2,819,141		5,610,936

End of period			11,874,446		$104,454,278			5,198,096		$27,721,103


Net investment income not yet distributed					$81,040					$59,424

See financial notes 39

Laudus Mondrian International Fixed Income Fund

Financial Statements

Financial Highlights


	4/1/09–			4/1/08–			11/2/07²–
	3/31/10¹			3/31/09			3/31/08


Per-Share Data ($)

Net asset value at beginning of period		10.32			11.29			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.26			0.27			0.07
Net realized and unrealized gains (losses)		1.06			(0.86	)		1.27

Total from investment operations		1.32			(0.59	)		1.34
Less distributions:
Distributions from net investment income		(0.42	)		(0.38	)		(0.05	)
Distributions from net realized gains		(0.02	)		—			—

Total distributions		(0.44	)		(0.38	)		(0.05	)

Net asset value at end of period		11.20			10.32			11.29

Total return (%)		12.85			(5.40	)		13.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.76	⁴		0.75			0.75	⁵
Gross operating expenses		0.79			0.87			1.23	⁵
Net investment income (loss)		2.42			2.24			1.98	⁵
Portfolio turnover rate		67			92			1	³
Net assets, end of period ($ x 1,000)		279,274			64,562			52,214

¹ Effective July 27, 2009, all outstanding Investor Shares and Select Shares were converted into Institutional Shares. The figures in the Financial Highlights reflect only the remaining share class.

² Commencement of operations.

³ Not annualized.

⁴ The ratio of net operating expenses would have been 0.75% if certain non-routine expenses (proxy expense) had not been incurred.

⁵ Annualized.

40 See financial notes

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings as of March 31, 2010

This section shows all the securities in the fund’s portfolio and their values as of the report date.

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 Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The schedule of portfolio holdings filed on a fund’s most recent Form N-Q is also available by visiting the Fund’s website at www.laudus.com.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.


				Cost		Value
Holdings by Category				($)		($)

	58	.5%	Government Bonds		163,764,350		163,513,229
	11	.7%	Government Agency Obligations		31,993,765		32,633,469
	7	.5%	Corporate Bonds		21,561,779		20,815,747
	2	.8%	Securitized		7,633,434		7,927,206
	16	.2%	Supranational		45,150,763		45,272,195
	1	.4%	Other Investment Company		3,783,574		3,783,574


	98	.1%	Total Investments		273,887,665		273,945,420
	1	.9%	Other Assets and Liabilities, Net				5,328,316


	100	.0%	Net Assets				279,273,736


Security	Face Amount		Value
Rate, Maturity Date	(local currency)		($)

Government Bonds 58.5% of net assets

Australia 10.1%
Australia Government Bond
6.50%, 05/15/13 (AUD)		4,300,000		4,084,278
6.00%, 02/15/17 (AUD)		2,700,000		2,528,447
5.25%, 03/15/19 (AUD)		12,000,000		10,663,927
5.75%, 05/15/21 (AUD)		12,000,000		10,979,647

				28,256,299

Austria 4.1%
Austria Government Bond
3.50%, 07/15/15 (EUR)		2,200,000		3,121,346
6.25%, 07/15/27 (EUR)		4,800,000		8,329,191

				11,450,537

Belgium 4.7%
Belgium Government Bond
4.25%, 09/28/13 (EUR)		3,900,000		5,717,790
5.50%, 09/28/17 (EUR)		3,300,000		5,198,655
5.50%, 03/28/28 (EUR)		1,350,000		2,173,815

				13,090,260

Finland 4.3%
Finland Government Bond
5.38%, 07/04/13 (EUR)		8,000,000		12,091,542

France 4.3%
France Government Bond OAT
4.00%, 04/25/14 (EUR)		4,800,000		6,994,595
5.75%, 10/25/32 (EUR)		3,000,000		5,119,110

				12,113,705

Germany 1.0%
Bundesrepublik Deutschland
4.75%, 07/04/34 (EUR)		1,800,000		2,768,741

Greece 1.7%
Hellenic Republic Government Bond
4.50%, 05/20/14 (EUR)		1,900,000		2,419,909
4.60%, 07/20/18 (EUR)		2,000,000		2,399,079

				4,818,988

Ireland 3.1%
Ireland Government Bond
4.00%, 01/15/14 (EUR)		1,900,000		2,676,615
4.50%, 10/18/18 (EUR)		4,300,000		5,977,274

				8,653,889

Italy 6.8%
Italy Government International Bond
2.75%, 06/15/10 (EUR)		2,200,000		2,984,654
4.75%, 02/01/13 (EUR)		2,400,000		3,504,757
4.25%, 08/01/14 (EUR)		3,600,000		5,229,172
4.50%, 02/01/18 (EUR)		1,400,000		2,038,566
4.00%, 02/01/37 (EUR)		1,400,000		1,707,059
Republic of Italy
5.50%, 12/15/14 (JPY)		275,000,000		3,447,889

				18,912,097

Japan 7.3%
Japan Government Ten Year Bond
1.10%, 09/20/12 (JPY)		540,000,000		5,900,255
0.90%, 06/20/13 (JPY)		155,000,000		1,689,215
1.60%, 09/20/13 (JPY)		550,000,000		6,138,339
2.00%, 03/20/16 (JPY)		510,000,000		5,863,025
Japan Government Thirty Year Bond
2.40%, 12/20/34 (JPY)		65,000,000		714,105

				20,304,939

Netherlands 3.2%
Netherlands Government Bond
4.25%, 07/15/13 (EUR)		6,100,000		8,945,937

See financial notes 41

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings continued


Security	Face Amount		Value
Rate, Maturity Date	(local currency)		($)

Poland 4.0%
Poland Government Bond
5.25%, 04/25/13 (PLN)		2,600,000		927,771
5.00%, 10/24/13 (PLN)		3,300,000		1,164,291
6.25%, 10/24/15 (PLN)		5,800,000		2,139,862
5.50%, 10/25/19 (PLN)		3,700,000		1,298,320
5.75%, 09/23/22 (PLN)		16,300,000		5,766,860

				11,297,104

Slovenia 3.9%
Slovenia Government Bond
4.38%, 02/06/19 (EUR)		7,600,000		10,809,191

Total Government Bonds (Cost $163,764,350)				163,513,229




Government Agency Obligations 11.7% of net assets

Germany 2.5%
Bayerische Landesbank
1.40%, 04/22/13 (JPY)		400,000,000		4,332,031
Kreditanstalt fuer Wiederaufbau
2.05%, 02/16/26 (JPY)		250,000,000		2,695,216

				7,027,247

Japan 4.1%
Development Bank of Japan
1.75%, 03/17/17 (JPY)		550,000,000		6,178,190
Japan Finance Org. for Municipal Enterprises
1.55%, 02/21/12 (JPY)		350,000,000		3,829,046
1.35%, 11/26/13 (JPY)		120,000,000		1,326,577

				11,333,813

Netherlands 0.8%
Bank Nederlandse Gemeenten
1.85%, 11/07/16 (JPY)		200,000,000		2,224,944

Spain 4.3%
Instituto de Credito Oficial
1.50%, 09/20/12 (JPY)		1,100,000,000		12,047,465

Total Government Agency Obligations (Cost $31,993,765)				32,633,469




Corporate Bonds 7.5% of net assets

Netherlands 0.3%
ING Bank N.V.
6.13%, 05/29/10 (EUR) (a)(b)		490,000		724,758

Norway 3.8%
Eksportfinans ASA
1.80%, 06/21/10 (JPY)		555,000,000		5,949,191
1.60%, 03/20/14 (JPY)		410,000,000		4,525,253

				10,474,444

United Kingdom 3.3%
HSBC Holdings plc
6.25%, 03/19/18 (EUR)		500,000		766,138
Lloyds TSB Bank plc
5.63%, 03/05/13 (EUR) (a)(b)		1,200,000		1,617,145
Royal Bank of Scotland plc
5.38%, 09/30/19 (EUR)		1,830,000		2,469,913
SL Finance plc
6.38%, 07/12/10 (EUR) (a)(b)		2,200,000		3,047,203
Standard Chartered Bank
5.88%, 09/26/17 (EUR)		900,000		1,326,312

				9,226,711

United States 0.1%
Zurich Finance (USA), Inc.
4.50%, 06/15/10 (EUR) (a)(b)		280,000		389,834

Total Corporate Bonds (Cost $21,561,779)				20,815,747




Securitized 2.8% of net assets

France 2.5%
Dexia Municipal Agency
1.55%, 10/31/13 (JPY)		640,000,000		6,898,350

Ireland 0.3%
Depfa ACS Bank
1.65%, 12/20/16 (JPY)		110,000,000		1,028,856

Total Securitized (Cost $7,633,434)				7,927,206




Supranational 16.2% of net assets
Asian Development Bank
2.35%, 06/21/27 (JPY)		990,000,000		10,991,774
European Investment Bank
1.40%, 06/20/17 (JPY)		615,000,000		6,755,639
1.90%, 01/26/26 (JPY)		500,000,000		5,199,904
Inter-American Development Bank
6.00%, 05/25/16 (AUD)		11,000,000		9,981,581
Nordic Investment Bank
1.70%, 04/27/17 (JPY)		1,100,000,000		12,343,297

Total Supranational (Cost $45,150,763)				45,272,195

42 See financial notes

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Other Investment Company 1.4% of net assets

United States 1.4%
State Street Institutional Liquid Reserves Fund - Institutional Class (USD)		3,783,574		3,783,574

Total Other Investment Company (Cost $3,783,574)				3,783,574



End of Investments.

At 03/31/10 the tax basis cost of the fund’s investments was $273,986,821, and the unrealized appreciation and depreciation were $5,856,370 and ($5,897,771), respectively, with a net depreciation of ($41,401).


(a)		Variable-rate security.
(b)		Callable security.


AUD —		Australian Dollar
EUR —		euro Currency
JPY —		Japanese Yen
PLN —		Polish Zloty
USD —		U.S. Dollar

In addition to the above, the fund held the following at 03/31/10:

Amount of

Currency to be

Unrealized

Expiration Date

Received

Delivered

Gains / Losses

Forward Foreign Currency Contract

04/30/2010

GBP

24,140,000

EUR

27,564,889

(604,393

)

See financial notes 43

Laudus Mondrian International Fixed Income Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $273,887,665)		$273,945,420
Foreign currency, at value (cost $135,570)		135,370
Receivables:
Interest		3,959,346
Fund shares sold		2,104,995
Prepaid expenses	+	4,363

Total assets		280,149,494

Liabilities

Payables:
Fund shares redeemed		136,243
Investment adviser fees		10,788
Trustee’s retirement plan		1,237
Trustees’ fees		28
Unrealized losses on forward foreign currency contracts		604,393
Accrued expenses	+	123,069

Total liabilities		875,758

Net Assets

Total assets		280,149,494
Total liabilities	−	875,758

Net assets		$279,273,736

Net Assets by Source
Capital received from investors		277,905,979
Net investment income not yet distributed		1,827,371
Net realized capital gains		200,339
Net unrealized capital losses		(659,953	)

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$279,273,736

24,943,932

$11.20

44 See financial notes

Laudus Mondrian International Fixed Income Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Interest		$6,117,281

Expenses

Investment adviser fees		1,151,594
Professional fees		73,882
Custodian fees		72,714
Accounting and administration fees		50,471
Registration fees		46,761
Shareholder reports		43,805
Transfer agent fees		30,198
Trustees’ fees		21,432
Interest expense		799
Other expenses	+	48,002

Total expenses		1,539,658
Expense reduction by adviser	−	79,404
Custody credits	−	1

Net expenses	−	1,460,253

Net investment income		4,657,028

Realized and Unrealized Gains (Losses)

Net realized gains on investments		2,620,409
Net realized gains on foreign currency transactions	+	1,466,692

Net realized gains		4,087,101
Net unrealized gains on investments		4,588,115
Net unrealized losses on foreign currency translations	+	(655,813	)

Net unrealized gains	+	3,932,302

Net realized and unrealized gains		8,019,403

Net increase in net assets resulting from operations		$12,676,431

See financial notes 45

Laudus Mondrian International Fixed Income Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10			4/1/08-3/31/09
Net investment income		$4,657,028		$2,104,328
Net realized gains		4,087,101		2,224,735
Net unrealized gains (losses)	+	3,932,302		(10,540,784	)

Increase (Decrease) in net assets from operations		12,676,431		(6,211,721	)

Distributions to Shareholders¹

Distributions from net investment income
Investor Shares		296,594		695,407
Select Shares		379,959		797,217
Institutional Shares	+	6,527,952		1,848,694

Total distributions from net investment income		$7,204,505		$3,341,318

Distributions from net realized gains	+	535,755		—


Total distributions		$7,740,260		$3,341,318

Transactions in Fund Shares¹


		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			157,853		$1,716,559			1,307,895		$14,146,538
Select Shares			488,763		5,339,839			1,372,544		14,711,236
Institutional Shares	+		22,417,931		255,065,619			4,716,167		49,917,667

Total shares sold			23,064,547		$262,122,017			7,396,606		$78,775,441


Shares Reinvested
Investor Shares			24,202		$263,794			58,064		$636,596
Select Shares			29,472		321,250			62,740		686,296
Institutional Shares	+		320,127		3,656,459			119,135		1,302,489

Total shares reinvested			373,801		$4,241,503			239,939		$2,625,381


Shares Redeemed
Investor Shares			(2,128,989	)	($23,661,558	)		(850,555	)	($8,879,908	)
Select Shares			(2,847,078	)	(31,627,976	)		(885,184	)	(9,266,453	)
Institutional Shares	+		(4,052,269	)	(45,433,721	)		(3,202,902	)	(33,443,875	)

Total shares redeemed			(9,028,336	)	($100,723,255	)		(4,938,641	)	($51,590,236	)

Net transactions in fund shares			14,410,012		$165,640,265			2,697,904		$29,810,586

Shares Outstanding and Net Assets

		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			10,533,920		$108,697,300			7,836,016		$88,439,753
Total increase	+		14,410,012		170,576,436			2,697,904		20,257,547

End of period			24,943,932		$279,273,736			10,533,920		$108,697,300


Net investment income not yet distributed					$1,827,371					$1,015,851


¹		Effective July 27, 2009, all outstanding Investor Shares (1,996,021 shares valued at $22,234,870) and Select Shares (2,638,198 shares valued at $29,374,492) were converted into Institutional Shares.

46 See financial notes

Laudus Mondrian Funds

Financial Notes

1. Business Structure of the Funds:

Each of the Laudus Mondrian Funds in this report is a series of Laudus Trust, (the “Trust”), an open-end management investment company. The Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the Funds in the Trust including the Funds discussed in this report, which are highlighted (individually each such highlighted portfolio, a “Fund” and collectively, the “Funds”):



Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund		Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund Laudus Growth Investors U.S. Large Capitalization Growth Fund

The Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund commenced operations on November 2, 2007. The Laudus Mondrian International Equity Fund and the Laudus Mondrian Global Equity Fund commenced operations on June 17, 2008.

Each Fund except, Laudus Mondrian International Fixed Income Fund, offers three share classes: Investor Shares, Select Shares and Institutional Shares. Effective July 27, 2009, all outstanding Investor Shares and Select Shares of the Laudus Mondrian International Fixed Income Fund were converted into Institutional Shares and the Fund no longer offers separate share classes. Immediately after and as a result of the conversion, each shareholder of the Investor Shares and Select Shares became an owner of Institutional Shares of the Fund.

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 separate voting rights on matters pertaining solely to that class of shares.

Each Fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each Fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the Funds use in their preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

The Funds value the securities in their portfolios every business day. The Funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the fund pursuant to the procedures.

	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):


	•	International fair valuation: The Board of Trustees has adopted procedures to fair value foreign securities that trade in markets that close prior to when the fund values their holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, each fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the net asset value of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its index or benchmark. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board of Trustees regularly reviews fair value determinations made by the fund pursuant to these procedures.

	•	Futures and Forwards Contracts: valued at their settlement prices as of the close of their exchanges (for futures) or at a value based on that day’s exchange rates (for forwards).

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying Funds: valued at their respective net asset values as determined by the underlying Fund in accordance with the 1940 Act for a given day.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements).

The Funds adopted the authoritative guidance under GAAP on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly. Accordingly, if the Fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The guidance establishes three levels of the fair value hierarchy as follows:


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The Funds do not adjust the quoted price for such investments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted prices.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the Funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):


	•	Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the Funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the Funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2010:

Laudus Mondrian International Equity Fund


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$—		$82,772,793		$—		$82,772,793
Hong Kong(a)		1,215,861		—		—		1,215,861
Other Investment Company		1,923,271		—		—		1,923,271

Total		$3,139,132		$82,772,793		$—		$85,911,925


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Holdings.

Laudus Mondrian Global Equity Fund


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$—		$2,628,843		$—		$2,628,843
Canada(a)
Telecommunication Services		76,414		—		—		76,414
United States(a)		1,625,708						1,625,708
Other Investment Company		75,850		—		—		75,850

Total		$1,777,972		$2,628,843		$—		$4,406,815


*		The fund had no Other Financial Investments.
(a)		As categorized in Portfolio Holdings.

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Laudus Mondrian Emerging Markets Fund


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$—		$48,771,410		$—		$48,771,410
Brazil(a)		11,825,941		—		—		11,825,941
Chile(a)		2,906,546		—		—		2,906,546
Columbia(a)		2,447,376		—		—		2,447,376
Kazahkstan(a)		2,251,631		—		—		2,251,631
Malaysia(a)		2,264,834		—		—		2,264,834
Philippines(a)		2,440,224		—		—		2,440,224
Republic of Korea(a)		—		3,805,452		—		3,805,452
Banks		299,750		1,699,924		—		1,999,674
Russia(a)		3,742,461		—		—		3,742,461
Taiwan(a)		—		9,888,989		—		9,888,989
Telecommunication Services		2,994,202		—		—		2,994,202
Thailand(a)		2,708,724		—		—		2,708,724
Preferred Stock
Brazil(a)		1,891,323		—		—		1,891,323
Republic of Korea(a)		—		1,521,211		—		1,521,211
Other Investment Company		1,270,832		—		—		1,270,832

Total		$37,043,844		$65,686,986		$—		$102,730,830


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Investments.

Laudus Mondrian International Fixed Income Fund

Assets Valuation Input


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Government Bonds(a)		$—		$163,513,229		$—		$163,513,229
Government Agency Obligations(a)		—		32,633,469		—		32,633,469
Corporate Bonds(a)		—		20,815,747		—		20,815,747
Securitized(a)		—		7,927,206		—		7,927,206
Supranational(a)		—		45,272,195		—		45,272,195
Other Investment Company		3,783,574		—		—		3,783,574

Total		$3,783,574		$270,161,846		$—		$273,945,420

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Liabilities Valuation Input

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total

Other Financial Instruments*

Forward Foreign Currency Contracts

$(604,393

)

$—

$(604,393

)


*		Forward Foreign Currency contracts are not included in Investments and are valued at unrealized appreciation or depreciation.
(a)		As categorized in Portfolio Holdings.

(b) Portfolio Investments:

Delayed-Delivery: The Funds may buy securities on a delayed-delivery basis. In these transactions, a Fund agrees to buy a security for a stated price, with settlement generally occurring within two weeks. If the security’s value falls before settlement occurs, the Fund could end up paying more for the security than its market value at the time of settlement. The Funds have set aside sufficient securities as collateral for those securities bought on a delayed-delivery basis.

Derivatives: The Funds may invest in futures contracts to reduce the effects of uninvested cash on performance or for other reasons. Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date.

Because futures contracts carry inherent risks, a Fund must give the broker a deposit of cash and/or securities (the “initial margin”) whenever it enters into the futures contract. The amount of the deposit may vary from one contract to another, but it is generally a percentage of the contract amount. Subsequent payments (“variation margin”) are made or received by a Fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses until the contract is closed, at which time the gains and losses are realized. Futures are traded publicly on exchanges, and their market value changes daily.

The Funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards are similar to futures except that they are not publicly traded, but are agreements directly between two parties. The accounting for Forwards is treated similar to that of futures contracts in that gains and losses are accounted for as unrealized gains or losses until the contract settles and such amounts are accounted for as realized.

Repurchase Agreements: The Funds may enter into repurchase agreements. In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that it 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 fully collateralized by cash, U.S. government securities, U.S. government agency securities or other 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.

(c) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. The Funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

exchange rates from the fluctuation in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the Funds on the sale of securities in certain foreign countries are subject to non-U.S. taxes. The Funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a Fund closes out a futures or forwards position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly. A Fund records the daily change in market value of futures, and also the change in the amount of margin deposit required (“due to/from broker”).

(d) Investment Income:

Interest income is recorded as it accrues. If a Fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes the discount or premium from the current date up to maturity. The Fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. If the security is callable (meaning that the issuer has the option to pay it off before its maturity date), then the Fund amortizes the premium to the security’s call date and price, rather than the maturity date and price. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the Funds record certain foreign security dividends on the day they learn of the ex-dividend date.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.

(e) Expenses:

Expenses that are specific to a Fund are charged directly to the Fund. Expenses that are common to all Funds within the Trust generally are allocated among the Funds in proportion to their average daily net assets.

For Funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The Funds make distributions from net investment income and net realized capital gains, if any, once a year with the exception of Laudus Mondrian International Fixed Income Fund which pays quarterly dividends.

(g) Custody Credit:

Certain Funds have an arrangement with their custodian bank, State Street Bank and Trust Company, under which the Funds receive a credit for their uninvested cash balance to offset their custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to the Funds’ operating expenses.

(h) Accounting Estimates:

The accounting policies described in this report conform to accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, Fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.

(i) Federal Income Taxes:

The Funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the Funds distribute substantially all of their net investment income and realized net capital gains, if any, to their respective shareholders each year. As long as a Fund meets the tax requirements, it is not required to pay federal income tax.

Laudus Mondrian Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(j) Indemnification:

Under the Funds’ organizational documents, the 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 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 the risk of loss to be remote.

3. Risk factors:

Investing in the Funds may involve certain risks, as described in the Funds’ prospectus, including, but not limited to, those described below:

The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. In addition, the equity market tends to move in cycles which may cause stock prices to fall over short or extended periods of time.

Stocks of large-size companies tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of mid- or small-size companies, for instance — the Fund’s performance also will lag those investments.

A Fund may also be subject to additional risk because it invests primarily in the stocks of companies with small and mid-sized market capitalizations, which tend to be less liquid and more volatile than stocks of companies with larger market capitalizations. These companies may also have limited product lines, markets or financial resources or may depend on a few key employees. In addition, small and mid cap stocks tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of large-size companies, for instance — the Fund’s performance also will lag those investments.

Investments in securities of foreign issuers involve certain risks that are more significant than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. The securities of some foreign companies may be less liquid and at times more volatile than securities of comparable U.S. companies. A Fund with foreign investments may also experience more rapid or extreme changes in value than a Fund that invests solely in securities of U.S. companies because the securities markets of many foreign countries are relatively small, with a limited number of companies representing a small number of industries.

Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with the Fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

Bond prices generally fall when interest rates rise. Bonds with longer maturities tend to be more sensitive to this risk. Fund performance also could be affected if an issuer or guarantor of a bond held by the Fund fails to make timely principal or interest payments or otherwise honor its obligations. Lower-quality bonds are considered speculative with respect to its issuer’s ability to make timely payments or otherwise honor its obligations. In addition, prices of lower-quality bonds tend to be more volatile than those of investment-grade bonds, and may fall based on bad news about the issuer, an industry or the overall economy.

Laudus Mondrian Funds

Financial Notes (continued)

3. Risk factors (continued):

Also, bonds of foreign issuers may be more volatile than those of comparable bonds from U.S. issuers, for reasons ranging from limited issuer information to the risk of political upheaval.

Please refer to the Funds’ prospectus for a more complete description of the principal risks of investing in the Funds.

A Fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments and could cause a fund to lose more than the principal amount invested. In addition, investments in derivatives may involve leverage, which means a small percentage of assets invested in derivatives can have a disproportionately larger impact on a Fund.

4. Affiliates and Affiliated Transactions:

The Trust’s Board of Trustees oversees the general conduct of the Trust and the Funds.

Charles Schwab Investment Management, Inc. (“CSIM” or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each Fund’s investment adviser pursuant to an Investment Advisory and Sub-Advisory Agreement (“Advisory Agreement”) between it and the Trust. Mondrian Investment Partners Limited (“Mondrian”), the Funds’ sub-adviser, provides day-to-day portfolio management services to the Funds, subject to the supervision of CSIM.

For its advisory services to each Fund, CSIM is entitled to receive an annual fee, payable monthly, based on the Funds’ average daily net assets described as follows.


	First $1 billion		Over $1 billion

Laudus Mondrian International Equity Fund		0.85%		0.80%
Laudus Mondrian Global Equity Fund		0.85%		0.80%
Laudus Mondrian Emerging Markets Fund		1.20%		1.15%
Laudus Mondrian International Fixed Income Fund		0.60%		0.60%

CSIM (not the Funds) pays a portion of the management fees it receives to Mondrian in return for its services.

CSIM has contractually agreed, until at least July 30, 2012, to waive a portion of its management fee and bear certain expenses of each Fund. As such, CSIM further 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 Funds’ business as follows:

Laudus Mondrian

International

Global

Emerging

International Fixed

Equity Fund

Markets Fund

Income Fund*

Investor Shares

1.40%

1.80%

n/a

Select Shares

1.12%

1.52%

n/a

Institutional Shares

1.05%

1.45%

0.75%


*		Prior to May 5, 2009, the expense limitations were 1.10% and 0.82% for the Investor and Select Shares respectively. Effective May 5, 2009, no further fees were assessed under the Distribution and Shareholder Services Plan or for sub-accounting and sub-transfer agency services on the Investor and Select Shares, which made the expense limitation on these two share classes 0.75%. Effective July 27, 2009, all Investor and Select Shares of the Fund were converted to Institutional Shares.

Laudus Mondrian Funds

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

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 Funds’ net expenses to exceed the current limit (as stated in CSIM’s contractual undertaking) during the respective year. As of March 31, 2010, the balance of recoupable expenses is as follows:

Laudus Mondrian

International

Global

Emerging

International Fixed

Expire Date

Equity Fund

Markets Fund

Income Fund

March 31, 2011

$106,871

$90,576

$180,441

$143,612

March 31, 2012

117,504

155,764

166,130

79,404

5. Other Shareholders Services

Boston Financial Data Services, Inc. (“BFDS”) provides the transfer agent services to the Funds, and receives transfer agent fees from the Funds as shown in the Statement of Operations.

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 Funds are sold on a continuous basis by the Trust’s distributor-ALPS Distributors, Inc. 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 respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to reimburse, out of the Investor and Select Class assets of the Funds, financial intermediaries that provide sub-accounting and sub-transfer agency services in connection with Investor or Select Class shares of the Funds an amount up to 0.15% of the average daily net assets of that class on an annual basis.

6. Board of Trustees

Trustees may include people who are officers and/or directors of the investment adviser or Charles Schwab & Co., Inc. (“Schwab”). Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted in each Fund’s Statement of Operations.

Until September 2006, a Retirement Plan existed for the independent trustees. After the termination of the Retirement Plan, the previously accrued and unpaid benefits continue to be adjusted by performance of the Funds. As a result, the amount of the Retirement Payable to any independent trustee may increase or decrease based on the performance of the Funds.

7. Borrowing from Banks:

The Funds have access to custodian overdraft facilities and to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Bank and Trust Company. Interest is calculated based on the market rates at the time of borrowing.

There were no borrowings from the line of credit by the Funds during the period. However, the Funds utilized their overdraft facility and incurred interest expense, which is disclosed in the Statement of Operations. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

8. Purchases and Sales of Investment Securities:

For the period ended March 31, 2010, purchases and sales of securities (excluding short-term obligations) were as follows:


	Purchases		Sales

Laudus Mondrian International Equity Fund		$61,470,525		$8,623,679
Laudus Mondrian Global Equity Fund		1,123,298		830,485
Laudus Mondrian Emerging Markets Fund		79,448,296		28,716,986
Laudus Mondrian International Fixed Income Fund		282,969,593		124,972,819

Laudus Mondrian Funds

Financial Notes (continued)

9. Redemption Fee:

The Funds charge a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against the redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current and prior periods are:


	Current Period		Prior Period
	(4/1/09-3/31/10)		(4/1/08-3/31/09)

Laudus Mondrian International Equity Fund		$84		$48
Laudus Mondrian Global Equity Fund		37		5
Laudus Mondrian Emerging Markets Fund		5,219		1,968
Laudus Mondrian International Fixed Income Fund		8,691		9,018

10. Federal Income Taxes:

As of March 31, 2010, the components of distributable earnings on a tax-basis were as follows:


	Laudus Mondrian			Laudus Mondrian			Laudus Mondrian			Laudus Mondrian
	International			Global			Emerging			International Fixed
	Equity Fund			Equity Fund			Markets Fund			Income Fund

Undistributed ordinary income		$605,092			$26,205			$132,748			$1,462,772
Undistributed long-term capital gains		—			—			—			60,938
Unrealized appreciation on investments		7,313,915			166,045			10,301,445			5,856,370
Unrealized depreciation on investments		(700,994	)		(737,194	)		(742,442	)		(5,897,771	)
Other unrealized appreciation/ (depreciation)		(802	)		29			(67,626	)		(113,314	)
Net unrealized appreciation/ (depreciation)		$6,612,119			$(571,120	)		$9,491,377			$(154,715	)

The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales.

Capital loss carry forwards may be used to offset future realized capital gains for federal income tax purposes. As of March 31, 2010, the following funds had capital loss carry forwards available to offset net capital gains before the expiration dates:


	Laudus Mondrian		Laudus Mondrian		Laudus Mondrian		Laudus Mondrian
	International		Global		Emerging		International Fixed
Expire Date	Equity Fund		Equity Fund		Markets Fund		Income Fund

March 31, 2017	$	—		$4,137		$1,445,702	$	—
March 31, 2018		—		331,513		1,735,422		—

Total		—		335,650		3,181,124		—

For tax purposes, realized net capital losses, incurred after October 31, may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2010, the Funds had aggregate deferred realized net capital losses and capital losses utilized as follows:


	Laudus Mondrian		Laudus Mondrian		Laudus Mondrian		Laudus Mondrian
	International		Global		Emerging		International Fixed
	Equity Fund		Equity Fund		Markets Fund		Income Fund

Capital losses deferred		$—		$62,852		$412,211		$—
Currency losses deferred		—		—		—		—
Capital losses utilized		—		—		—		—

Laudus Mondrian Funds

Financial Notes (continued)

10. Federal Income Taxes (continued):

The tax-basis components of distributions paid during the current and prior periods were:


	Laudus Mondrian		Laudus Mondrian		Laudus Mondrian		Laudus Mondrian
	International		Global		Emerging		International Fixed
	Equity Fund		Equity Fund		Markets Fund		Income Fund

Current period distributions
Ordinary income		$1,349,818		$106,101		$1,068,662		$7,386,006
Long-term capital gains		—		—		—		354,254
Return of capital		—		—		—		—

Prior period distributions
Ordinary income		$181,435		$119,257		$373,534		$3,341,318
Long-term capital gains		—		—		—		—
Return of capital		—		—		—		—

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses; capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities; paydowns on fixed-income securities; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Funds for financial reporting purposes. The Funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

The permanent book and tax basis differences may result in reclassifications between capital accounts and other accounts as required. The adjustments will have no impact on net assets or the results of operations. As of March 31, 2010, the Funds made the following reclassifications:


	Laudus Mondrian			Laudus Mondrian			Laudus Mondrian			Laudus Mondrian
	International			Global			Emerging			International Fixed
	Equity Fund			Equity Fund			Markets Fund			Income Fund

Capital shares		$(358	)		$—			$—			$—
Undistributed net investment income		27,187			928			(63,289	)		3,358,997
Net realized capital gains/losses		(26,829	)		(928	)		63,289			(3,358,997	)

As of March 31, 2010, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and state purpose, four years from the date of filing), as applicable to the Funds, and has determined that no provision for income tax is required in the Funds’ financial statement. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2010, the Funds did not incur any interest or penalties. The Laudus Mondrian Emerging Markets Fund and Laudus Mondrian International fixed Income Fund are not subject to examination by U.S. federal and state tax authorities before tax year 2007. The Laudus Mondrian International Equity Fund and Laudus Mondrian Global Equity Fund are not subject to examination by U.S. federal and state authorities before tax year 2008.

11. Subsequent Events:

Management has determined there are no subsequent events or transactions that would have materially impacted the financial statements as presented.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Laudus Mondrian International Equity Fund

Laudus Mondrian Global Equity Fund

Laudus Mondrian Emerging Markets Fund

Laudus Mondrian International Fixed Income Fund

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, 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 Mondrian International Equity Fund, Laudus Mondrian Global Equity Fund, Laudus Mondrian Emerging Markets Fund, and Laudus Mondrian International Fixed Income Fund (four of the portfolios constituting Laudus Trust, hereafter referred to as the “Funds”) at March 31, 2010, the results of each of their operations for the year then ended, 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 audit 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

May 17, 2010

Other Federal Tax Information (unaudited)

The Funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the year ended March 31, 2010, and the respective foreign source income on the Funds were as follows:


	Foreign Tax		Foreign Source
	Credit		Income

Laudus Mondrian International Equity Fund		198,141		2,661,284
Laudus Mondrian Global Equity Fund		8,672		109,097
Laudus Mondrian Emerging Markets Fund		218,074		2,376,075
Laudus Mondrian International Fixed Income Fund		—		—

For corporate shareholders, the following percentage of the funds dividend distributions paid during the fiscal year ended March 31, 2010, qualify for the corporate dividends received deductions:


	Percentage

Laudus Mondrian International Equity Fund		—
Laudus Mondrian Global Equity Fund		39
Laudus Mondrian Emerging Markets Fund		—
Laudus Mondrian International Fixed Income Fund		—

For the fiscal year ended March 31, 2010, the Funds designate the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2011 via IRS form 1099 of the amounts for use in preparing their 2009 income tax return.


Laudus Mondrian International Equity Fund			1,525,925
Laudus Mondrian Global Equity Fund			108,566
Laudus Mondrian Emerging Markets Fund			1,286,736
Laudus Mondrian International Fixed Income Fund			—

For the fiscal year ended March 31, 2010, the Funds hereby designate the following amounts as capital gain dividends:


Laudus Mondrian International Equity Fund			—
Laudus Mondrian Global Equity Fund			—
Laudus Mondrian Emerging Markets Fund			—
Laudus Mondrian International Fixed Income Fund			354,254

Trustees and Officers

The tables below give 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 Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 85 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-800-435-4000.

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Mariann Byerwalter 1960 Trustee (Trustee of Laudus Trust since 2004.)	Chairman of JDN Corporate Advisory LLC.	77	Director, Redwood Trust, Inc. (1998 – present) Director, PMI Group Inc. (2001 – 2009) Director, Excelsior Funds (2006 – 2007)


John F. Cogan 1947 Trustee (Trustee of Laudus Trust since 2010.)	Senior Fellow: The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research; Professor of Public Policy, Stanford University (Sept. 1994 – present).	77	Director, Gilead Sciences, Inc. (2005 – present) Director, Monaco Coach Corporation (2005 – 2009)


William A. Hasler 1941 Trustee (Trustee of Laudus Trust since 2004.)	Dean Emeritus, Haas School of Business, University of California, Berkeley (July 1998 – present).	77	Director, Ditech Networks Corporation (1997 – present) Director, TOUSA (1998 – present) Director, Mission West Properties (1998 – present) Director, Globalstar, Inc. (2009 – present) Director, Harris-Stratex Networks (2001 – present) Director, Aphton Corp. (1991 – 2007) Director, Solectron Corporation (1998 – 2007) Director, Genitope Corporation (2000 – 2009) Director, Excelsior Funds (2006 – 2007)


Gerald B. Smith 1950 Trustee (Trustee of Laudus Trust since 2010.)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (1990 – present).	77	Lead Independent Director, Board of Cooper Industries (2002 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – present) Director, Oneok, Inc (2009 – present)


Donald R. Stephens 1938 Trustee (Trustee of Laudus Trust since 2010.)	Managing Partner, D.R. Stephens & Company (investments) (1973 – present).	77	None


Joseph H. Wender 1944 Trustee (Trustee of Laudus Trust since 2010.)	Senior Consultant, Goldman Sachs & Co., Inc. (Jan. 2008-present); Partner, Colgin Partners, LLC (vineyards) (February 1998 – present); Senior Director, Chairman of the Finance Committee, GSC Group (July 2005 – Dec. 2007); General Partner, Goldman Sachs & Co., Inc. (Oct. 1982 – June 2005).	77	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

Independent Trustees (continued)


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Michael W. Wilsey 1943 Trustee (Trustee of Laudus Trust since 2010.)	Chairman and Chief Executive Officer, Wilsey Bennett, Inc. (real estate investment and management, and other investments).	77	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Charles R. Schwab²1937 Chairman and Trustee (Chairman and Trustee of Laudus Trust since 2010.)	Founded Charles Schwab & Co., Inc. in 1971 and became Chairman in 1978. Since 1986, Chairman and Director, The Charles Schwab Corporation. Since 1989, Director, Charles Schwab Investment Management, Inc., and appointed as Chairman in 1991. Since 1996, Chairman and Chief Executive Officer, Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. Since 1999, Director and Chief Executive Officer, Schwab Holdings, Inc. Since 2003, Chairman, Charles Schwab Bank, N. A.; Through June 2007, Director, U.S. Trust Company, N. A., U.S. Trust Corporation, United States Trust Company of New York. Until October 2008, Chief Executive Officer, The Charles Schwab Corporation, and the Charles Schwab & Co., Inc.	77	None


Walter W. Bettinger II²1960 Trustee (Trustee of Laudus Trust since 2010.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., principal underwriter to the Funds, and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	85	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

George Pereira 1964 Treasurer and Chief Financial Officer (Officer of Laudus Trust since 2006.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc. (November 2004 – present); Treasurer and Principal Financial Officer, Schwab Funds and Schwab ETFs (2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (Sept. 2002 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Jeffrey Mortimer 1963 President, Chief Executive Officer and Chief Investment Officer (President and CEO since 2008, CIO since 2004.)		Senior Vice President and Chief Investment Officer, Charles Schwab Investment Management, Inc. and Schwab Funds (2004 – present); Senior Vice President and Chief Investment Officer, Schwab ETFs (2009 – present).


Koji E. Felton 1961 Vice President and Assistant Clerk (Officer of Laudus Trust since 2010.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc. (July 2000 – present); Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. (June 1998 – present); Secretary and Chief Legal Officer, Schwab Funds (Nov. 1998 – present); Secretary and Chief Legal Officer, Schwab ETFs (Oct. 2009 – present); Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Catherine MacGregor 1964 Chief Legal Officer, Vice President and Clerk (Officer of Laudus Trust since 2005.)		Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President, Schwab Funds (2005 – present), Vice President of Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Laudus Trust since 2005)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. (2004 – present); Vice President, Schwab Funds (2005 – present); Vice President, Schwab ETFs (Oct. 2009 – present).


¹		Trustees remain in office until they resign, retire or are removed by shareholder vote. The Laudus Funds retirement policy requires that independent trustees elected after January 1, 2000 retire at age 72 or after 20 years of service as a trustee, whichever comes first, provided that any trustee who serves on both Schwab Funds and Laudus Funds retires from both boards when first required to retire by either board. Independent trustees elected prior to January 1, 2000 will retire on the following schedule: Messrs. Stephens and Wilsey will retire on December 31, 2010.
²		Messrs. Schwab and Bettinger are Interested Trustees because they are employees of Schwab and/or the investment adviser. In addition to their employment with Schwab and/or the investment adviser, Messrs. Schwab and Bettinger also own stock of The Charles Schwab Corporation.
³		The President, Treasurer and Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

AAA Debt Rating is a grade given to high-quality investment grade bonds that indicates their credit quality. Private independent rating services such as Standard & Poor’s, Moody’s and Fitch provide these evaluations of a bond issuer’s financial strength, or its ability to pay a bond’s principal and interest in a timely fashion.

The Citigroup non-U.S. Dollar World Government Bond Index measures the total rate of return performance for the government bonds of 23 countries, excluding the U.S., with a remaining maturity of at least one year.

The MSCI EAFE Index^® (Net) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada. This series approximates the minimum possible dividend reinvestment.

The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment.

The MSCI World^® Index (Net) is a free float-adjusted market capitalization index that is designed to measure global developed markets equity performance. This series approximates the minimum possible dividend reinvestment.

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 divided by its reported cash flow per share.

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.

The Russell 1000^® Index measures the performance of the 1000 largest companies in the Russell 3000^® Index, and represents approximately 92% of the total market capitalization of the Russell 3000^® Index.

The Russell 2500^tm Index measures the performance of the 2,500 smallest companies in the Russell 3000^® Index, and represents approximately 16% of the total market capitalization of the Russell 3000^® Index.

Sovereign debt refers to debt issued by a national government within a given country and denominated in a foreign currency.

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, or 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.

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.

How We Collect Information About You

We collect personal information about you in a number of ways.


•	APPLICATION AND REGISTRATION INFORMATION.

We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.


•	TRANSACTION AND EXPERIENCE INFORMATION.

Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.


•	WEBSITE USAGE.

When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please click the Privacy link on our website.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:


•	to help us process transactions for your account;

•	when we use other companies to provide services for us, such as printing and mailing your account statements;

•	when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control)

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Contact Us

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Laudus Funds^® direct investors: 1-800-447-3332

In This Report



Performance at a Glance		2

From the President		3

The Investment Environment		4

Laudus Rosenberg U.S. Large Capitalization Fund		6

Laudus Rosenberg U.S. Discovery Fund		8

Laudus Rosenberg International Discovery Fund		10

Laudus Rosenberg International Small Capitalization Fund		13

Fund Expenses		16

Financial Statements		17

Financial Notes		63

Report of Independent Registered Public Accounting Firm		77

Other Federal Tax Information		78

Results of Proxy Voting		79

Approval of Amended Subadviser Agreement		80

Trustees and Officers		81

Glossary		84

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: ALPS Distributors, Inc.

Performance at a Glance


Total Return for the Report Period


Laudus Rosenberg U.S. Large Capitalization Fund¹

Investor Shares (Ticker Symbol: AXLVX)			40.70%
Select Shares (Ticker Symbol: AXLIX)			41.26%
Benchmark: Russell 1000^® Index			51.60%

Performance Details			pages 6-7



Laudus Rosenberg U.S. Discovery Fund (Ticker Symbol: RDISX)^1,2,3			53.48%

Russell 2500^tm Index			65.71%

Performance Details			pages 8-9



Laudus Rosenberg International Discovery Fund^1,4

Investor Shares (Ticker Symbol: LIDIX)			58.12%
Select Shares (Ticker Symbol: LIDSX)			58.75%
Benchmark: S&P Global ex-U.S. BMI $2-10 Billion Cap Range			68.37%

Performance Details			pages 10-12



Laudus Rosenberg International Small Capitalization Fund^1,4

Investor Shares (Ticker Symbol: RISIX)			55.44%
Select Shares (Ticker Symbol: ICSIX)			56.01%
Benchmark: S&P Developed ex-U.S. SmallCap Index			69.53%

Performance Details			pages 13-15

Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Small-company stocks are subject to greater volatility than other asset categories.

Small- and mid-capitalization funds typically carry additional risk since small- and mid-capitalization companies generally have a higher risk of failure.

Please see prospectus for further detail and investor eligibility requirements.


¹	On April 30, 2010, each of the Laudus Rosenberg Funds closed to all shareholders. Please see the prospectus supplement dated April 30, 2010 in the back of this annual report for additional information.

²	On November 19, 2009, the Investor Share class and Select Share class of the Fund were combined into a single class of shares of the Fund. The performance and financial history of the fund are that of the Fund’s former Select Shares. Accordingly, the past performance shown is that of the Fund’s former Select Shares.

³	On November 19, 2009, the Laudus Rosenberg U.S. Small Capitalization Fund merged into the Fund.

⁴	The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.

2 Laudus Rosenberg Funds

From the President

Dear Shareholder,

The Board of Trustees of the Laudus Trust, after careful deliberation, decided on April 28, 2010, that it was in the best interest of the Funds’ shareholders to close and liquidate the Laudus Rosenberg Funds. Each of the Laudus Rosenberg Funds closed to all investors at the close of business on April 30, 2010. Each Fund expects to redeem all of its outstanding shares on or shortly after July 30, 2010, and to distribute the proceeds to the Fund’s shareholders. Also effective on April 30, 2010, each Fund waived its redemption fee.

Laudus Funds will continue to work with AXA Rosenberg to understand the effect of its recently-disclosed coding error and its impact, if any, on the Laudus Rosenberg Funds. Additional material information, as it becomes available, will be posted on the Funds’ website at www.laudus.com. You can also reference the prospectus supplement in the back of this annual report about the closure and liquidation of the Laudus Rosenberg Funds.

As is our custom with annual reports, you can read about the performance of the Funds for the 12-month period that ended March 31, 2010, in the “Manager’s Discussion and Analysis” section and about the Investment Environment during the same period.

If you have any questions about the closure and liquidation of the Funds, we are available to talk with you at the numbers listed below.

Shareholders with Schwab accounts: 1-800-435-4000

Advisors and intermediaries: 1-866-452-8387

All other shareholders: 1-800-447-3332

Sincerely,

Laudus Rosenberg Funds 3

The Investment Environment

4 Laudus Rosenberg Funds

Laudus Rosenberg U.S. Large Capitalization Fund

The Laudus Rosenberg U.S. Large Capitalization Fund Investor Shares returned 40.70% for the fiscal year that ended March 31, 2010, while its comparative index, the Russell 1000 Index (the index) returned 51.60%. Although Fund performance followed the general trajectory of the market’s recovery during the 12-month period, it underperformed due to poor stock selection, and to a lesser extent, from the Fund’s allocation across sectors.

The biggest drag came from the Information Technology Sector, where the Fund’s stocks significantly underperformed those of the index. Stock selection within Consumer Discretionary, Financials, and Industrials—the index’s three strongest-performing sectors for the period—also detracted, as did stock selection within the Health Care and Energy Sectors.

Stock selection within Consumer Staples contributed positively. From a sector allocation perspective, the Fund’s more defensive positioning—compared to the index—also worked against it for the period; its overweighting of Health Care and Consumer Staples detracted, as did its underweighting in Industrials and Financials. The Fund’s underweighting of Energy and Telecommunication Services added some relative value.

From a market capitalization perspective, absolute performance for the period was strongest among the portfolio’s smaller companies (those with market capitalization under $10 billion); the Fund’s relative overweights to those companies also contributed positively. Stock selection among those companies, however, detracted. And while the Fund’s overweight to the largest companies in its investment universe (market capitalization above $150 billion) detracted, its stock selection among those companies contributed positively.

From a Price-to-Earnings (P/E) perspective, the largest contribution to the Fund’s absolute performance came from stocks with P/Es between 30 and 35. However, the Fund’s stock selection across most other P/E ranges detracted from relative performance, especially among lower-P/E stocks. It’s important to note that the index’s stocks with negative P/Es, that is, stocks of firms that lost money during the last 12 months, posted the highest returns across all P/E ranges; the Fund typically underweights these stocks because of their unattractive valuations.

The picture was slightly different from a Price/Book (P/B) perspective. Although the Fund’s overweight to the lowest-P/B stocks contributed notably, stock selection among those stocks detracted significantly. Across other ranges, stock selection contributed in some instances and detracted in others. The highest-P/B stocks—to which the Fund was overweighted—were the weakest performers for the reporting period, and the Fund’s stock selection among those companies dragged further on relative returns.

As of 3/31/10:

Fund Characteristics


Number of Securities		153
Avg. Market Capitalization ($Wtd. x 1,000,000)		$64,663
Portfolio Turnover (One year trailing)		145%
Price to Earnings (P/E)		17.32
Price/Book Ratio (P/B)		2.08
Price to Cash Flow		9.81
Beta		1.17
Return on Equity		29.48%
Five-Year Earnings Growth		5.10%

Fund Overview


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	7/31/2002	6/19/2002
Total Net Assets ($ x 1,000)	$6,707	$94,149
Ticker Symbol	AXLVX	AXLIX
Cusip	51855Q853	51855Q101
NAV	$8.90	$8.88

Manager views and portfolio holdings may have changed since the report date.

6 Laudus Rosenberg Funds

Laudus Rosenberg U.S. Large Capitalization Fund

Performance Summary as of 3/31/10

July 31, 2002 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

June 19, 2002 – March 31, 2010
Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 Year			5 Years			Since Inception

Investor Shares (7/31/02)		40.70	%		0.78	%		4.50	%
Select Shares (6/19/02)		41.26	%		1.10	%		3.18	%
Russell 1000^® Index*		51.60	%		2.31	%		(7/31/02) 5.82%
								(6/19/02) 4.06%

Fund Expense Ratios²: Investor Shares: Net 1.14%; Gross 1.39% / Select Shares: Net 0.84%; Gross 0.99%

Sector Weightings % of Equities


Information Technology		20.8%
Health Care		15.9%
Consumer Discretionary		14.8%
Consumer Staples		14.1%
Financials		11.0%
Industrials		8.4%
Energy		7.5%
Materials		4.4%
Utilities		2.2%
Telecommunication Services		0.9%
Total		100.0%

Top Equity Holdings % of Net Assets³


International Business Machines Corp.		4.4%
Philip Morris International, Inc.		4.1%
Microsoft Corp.		3.9%
ConocoPhillips		3.5%
Hewlett-Packard Co.		3.4%
Pfizer, Inc.		3.2%
The Home Depot, Inc.		3.0%
CVS Caremark Corp.		2.9%
Bristol-Myers Squibb Co.		2.7%
JPMorgan Chase & Co.		2.5%
Total		33.6%


*		Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, and represents approximately 92% of the total market capitalization of the Russell 3000^® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs.
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. Performance results less than one year are not annualized.
²		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.
³		This list is not a recommendation of any security by the investment adviser.

Laudus Rosenberg Funds 7

Laudus Rosenberg U.S. Discovery Fund

The Laudus Rosenberg U.S. Discovery Fund returned 53.48% for the fiscal year that ended March 31, 2010, while its comparative index, the Russell 2500 Index (the index) returned 65.71%. Although Fund performance followed the general trajectory of the market’s recovery during the 12-month period, it underperformed due to poor stock selection, and to a lesser extent, from the Fund’s allocation across sectors.

The biggest drag came from the Consumer Discretionary Sector, where the Fund’s stocks significantly underperformed those of the index. Stock selection within Consumer Staples, Health Care, Information Technology, Materials, and Industrials also detracted. Only stock selection within the Telecommunications Services and Energy Sectors contributed positively.

From a sector allocation perspective, the Fund’s underweight to Energy hurt relative performance, as did its overweighting of Health Care and Consumer Staples stocks. Mitigating those drags to some extent, however, were positive contributions from the Fund’s overweight to Information Technology and its underweighting of Financials and Utilities.

From a market capitalization perspective, the Fund’s absolute performance for the period was strongest among the portfolio’s smaller companies (under $3 billion market capitalization). On a relative basis, however, the Fund’s stocks in that and most other market-capitalization ranges underperformed those of the index. This was seen especially among companies with market capitalizations between $3 and $5 billion, resulting in a drag on relative returns. Furthermore, even though the Fund gained value from its underweight to those companies, it lost value from other market-capitalization allocations; as a result, its overall allocation across market capitalizations had little net effect.

From a Price-to-Earnings (P/E) perspective, the Fund’s overall allocations also had little net effect. Although the Fund’s underweight to stocks with negative P/Es, that is, P/Es of firms that lost money during the last 12 months, dragged on relative performance, its overweight to the lowest-P/E stocks (12.5 or less) contributed, nearly overcoming the drag. However, the Fund’s stock selection detracted from relative performance across multiple P/E ranges, most notably among stocks with negative and low P/Es. The Fund’s stock selections in the mid- to highest-range of P/Es did add value and mitigated some of the downside.

The picture was slightly different from a Price-to-Book (P/B) standpoint, as the Fund’s allocations across nearly all P/B ranges added value. However, again, the Fund’s stock selection across multiple P/B ranges detracted from relative performance, especially among stocks with P/B values of less than 1.25—by far the index’s strongest performers for the reporting period.

As of 3/31/10:

Fund Characteristics


Number of Securities		353
Avg. Market Capitalization ($Wtd. x 1,000,000)		$2,672
Portfolio Turnover (One year trailing)*		111%
Price to Earnings (P/E)		25.43
Price/Book Ratio (P/B)		1.63
Price to Cash Flow		21.73
Beta		1.4
Return on Equity		7.80%
Five-Year Earnings Growth		7.23%

Fund Overview


		Fund


Initial Investment		$100
Inception Date		9/4/2001
Total Net Assets ($ x 1,000)		$347,029
Ticker Symbol		RDISX
Cusip		51855Q309
NAV		$14.37

Manager views and portfolio holdings may have changed since the report date.


*		Portfolio turnover excludes the impact of investment activity resulting from a merger with another fund (see financial note 12).

8 Laudus Rosenberg Funds

Laudus Rosenberg U.S. Discovery Fund

Performance Summary as of 3/31/10

September 4, 2001 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment^1,2,3

Average Annual Total Returns^1,2,3


Fund and Inception Date	1 Year			5 Years			Since Inception

Fund: Laudus Rosenberg U.S. Discovery Fund (9/4/01)		53.48	%		0.91	%		6.53	%
Russell 2500^tm Index*		65.71	%		4.05	%		9.01	%

Fund Expense Ratios⁴: Net 0.95%; Gross 0.99%

Sector Weightings % of Equities


Information Technology		20.0%
Consumer Discretionary		19.9%
Health Care		15.2%
Financials		13.6%
Materials		11.3%
Industrials		10.3%
Energy		3.5%
Consumer Staples		2.4%
Telecommunication Services		2.1%
Utilities		1.7%
Total		100.0%

Top Equity Holdings % of Net Assets⁵


The Lubrizol Corp.		2.3%
CenturyTel, Inc.		2.0%
The Interpublic Group of Cos., Inc.		2.0%
Eastman Chemical Co.		1.9%
Hasbro, Inc.		1.8%
Omnicare, Inc.		1.8%
Massey Energy Co.		1.6%
Synopsys, Inc.		1.6%
Watson Pharmaceuticals, Inc.		1.5%
RadioShack Corp.		1.5%
Total		18.0%


*		Russell 2500^tm Index measures the performance of the 2,500 smallest companies in the Russell 3000^® Index, and represents approximately 18% of the total market capitalization of the Russell 3000^® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs.
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. Performance results less than one year are not annualized.
²		On November 19, 2009, the Investor Share class and Select Share class of the Fund were combined into a single class of shares of the Fund. The performance and financial history of the fund are that of the Fund’s former Select Shares. Accordingly, the past performance shown is that of the Fund’s former Select Shares.
³		On November 19, 2009, the Laudus Rosenberg U.S. Small Capitalization Fund merged into the Fund.
⁴		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.
⁵		This list is not a recommendation of any security by the investment adviser.

Laudus Rosenberg Funds 9

Laudus Rosenberg International Discovery Fund

The Laudus Rosenberg International Discovery fund Investor Shares returned 58.12% for the fiscal year ended March 31, 2010, while its comparative index, the S&P Global ex U.S. Broad Market Index $2-10 Billion Cap Range (the index) returned 68.37%. The Fund’s underperformance was primarily a result of its stock selection. Allocations added value across some measures, but detracted in others.

On a relative basis, the Fund’s stocks underperformed those of the index across multiple sectors, most notably in Energy, but also in Consumer Staples and Health Care, and to a lesser extent, in Consumer Discretionary and Materials. The Fund’s stocks outperformed the index’s, however, in the Financials, Information Technology, and Telecommunications Services Sectors.

From a sector allocation standpoint, the Fund’s underperformance was primarily the result of its having a more defensive stance than the index: the Fund lost relative value from its overweighting of the Consumer Staples, Telecommunications, and Health Care Sectors. The best returns came from the Materials Sector—up more than 80%. Strong absolute performance also came from the Information Technology, Consumer Discretionary, and Financials Sectors.

From a market capitalization perspective, the Fund’s positioning—overweight smaller companies and underweight larger ones—generally worked in its favor for the reporting period. The Fund’s strongest absolute returns came from the smallest stocks, that is, those with market capitalizations of under $750 million that had posted 100% returns or better, which helped to overcome some of the drag from overall stock selection among these smaller firms. The Fund’s overweight of stocks in the $750 million to $1.5 billion range also contributed to relative performance. However, the Fund’s stock selection across multiple market-capitalization ranges dragged on relative performance.

On a valuation basis, the Fund’s value orientation—with overweights to lower-valuation stocks, measured both by Price/Earnings (P/E) and Price/Book (P/B) values—worked in its favor for the reporting period. However, the Fund’s stocks across most P/E and P/B ranges underperformed those of the index, more than overshadowing the positive contribution from its allocations.

Although regional allocation typically has little net effect on Fund performance, for the reporting period it added modest value as a result of the Fund’s overweight to Africa and the Middle East. The Fund’s overweight to Latin America also added value; it was one of the strongest-performing regions for the 12-month period. The Fund’s stocks in those regions also outperformed those of the index, adding relative value. However, the Fund’s European and Asia Pacific stocks underperformed, most significantly in Japan and the United Kingdom. The Fund’s stock selection among Canadian and Australian companies also detracted from relative performance for the period.

As of 3/31/10:

Fund Characteristics


Number of Securities		496
Avg. Market Capitalization ($Wtd. x 1,000,000)		$5,976
Portfolio Turnover (One year trailing)		132%
Price to Earnings (P/E)		49.17
Price/Book Ratio (P/B)		1.26
Price to Cash Flow		11.15
Beta		1.04
Return on Equity		1.95%
Five-Year Earnings Growth		4.93%

Fund Overview


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	5/31/2006	5/31/2006
Total Net Assets ($ x 1,000)	$33,741	$307,866
Ticker Symbol	LIDIX	LIDSX
Cusip	51855Q697	51855Q689
NAV	$9.42	$9.41

Manager views and portfolio holdings may have changed since the report date.

10 Laudus Rosenberg Funds

Laudus Rosenberg International Discovery Fund

Performance Summary as of 3/31/10

May 31, 2006 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

May 31, 2006 – March 31, 2010
Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 Year			Since Inception

Investor Shares (5/31/06)		58.12	%		0.69	%
Select Shares (5/31/06)		58.75	%		0.99	%
S&P Global ex US BMI $2-10 Billion Cap Range*		68.37	%		2.62	%

Fund Expense Ratios²: Investor Shares: Net 1.65%; Gross 1.86% / Select Shares: Net 1.35%; Gross 1.54%

The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.


*		The S&P 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. Investors cannot invest directly in any index and index figures do not include trading and management costs.
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. Performance results less than one year are not annualized.
²		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.

Laudus Rosenberg Funds 11

Laudus Rosenberg International Discovery Fund

Performance Summary as of 3/31/10 continued

Country Weightings % of Investments


Japan	19.7%


United Kingdom	11.0%


Canada	6.5%


Australia	4.8%


Taiwan	4.4%


Republic of Korea	4.3%


Hong Kong	4.1%


Brazil	3.0%


France	3.0%


India	3.0%


South Africa	2.9%


Other Countries	33.3%


Total	100.0%

Sector Weightings % of Equities


Financials		18.7%
Materials		18.3%
Industrials		16.7%
Consumer Discretionary		16.5%
Information Technology		11.0%
Consumer Staples		4.9%
Energy		4.5%
Utilities		3.4%
Health Care		3.2%
Telecommunication Services		2.8%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Compass Group plc		0.8%
Suncorp.-Metway Ltd.		0.7%
Orica Ltd.		0.7%
TDK Corp.		0.6%
Gold Fields Ltd.		0.6%
Rohm Co., Ltd.		0.6%
NEC Corp.		0.6%
Tatneft ADR		0.6%
Sumitomo Metal Mining Co., Ltd.		0.6%
Sumitomo Chemical Co., Ltd.		0.6%
Total		6.4%


¹		This list is not a recommendation of any security by the investment adviser.

12 Laudus Rosenberg Funds

Laudus Rosenberg International Small Capitalization Fund

The Laudus Rosenberg International Small Capitalization fund Investor Shares returned 55.44% for the fiscal year ended March 31, 2010, while its comparative index, the S&P Developed ex-U.S. Small Cap Index (the index) returned 69.53%. The Fund’s relative underperformance was primarily due to poor stock selection.

Stock selection across multiple sectors detracted from relative returns, most notably among Industrials, Consumer Discretionary, and Consumer Staples, although the Fund’s stocks outperformed in the Information Technology and Health Care Sectors. In terms of sector allocation, the Fund’s overweight to Consumer Staples and underweight to Energy dragged on relative performance. Its underweight to Health Care, Financials, and Utilities added value, as did an overweight to Information Technology.

From a market capitalization perspective, stock selection put a damper on relative performance, primarily among the smallest companies (market capitalization of less than $750 million). The Fund’s allocations across market capitalizations had little net effect: Although its significant overweight of the smallest stocks added relative value, its overweight of the largest ones detracted.

Even though the Fund’s value orientation worked in its favor for the reporting period, weak stock selection across multiple Price-to-Earnings (P/E) and Price-to-Book (P/B) ranges dragged on relative performance. From a P/E perspective, the Fund’s significant overweight to the lowest-P/E stocks contributed to relative performance, as did its allocations across all other P/E ranges. Exceptions included stocks with negative P/Es, that is, P/Es of firms that lost money during the last 12 months, where the Fund’s underweight detracted. Stock selection among the lower-P/E stocks was especially damaging.

From a P/B perspective, the story was similar, with the Fund gaining some relative value from its allocations, especially from its significant overweight to the lowest-P/B stocks and its underweight to the highest. But the Fund’s stock selection detracted across multiple P/B ranges, with only the Fund’s stocks with the highest P/B values outperforming those of the index.

As is typical for this Fund, regional allocation had little net effect on Fund performance. For this period, however, it detracted somewhat due to an underweight to Canada and an overweight (albeit modest) to the Asia Pacific region. Stock selection dragged on relative performance, however, primarily in the Asia Pacific region, but also in Europe and Canada.

As of 3/31/10:

Fund Characteristics


Number of Securities		664
Avg. Market Capitalization ($Wtd. x 1,000,000)		$2,071
Portfolio Turnover (One year trailing)		100%
Price to Earnings (P/E)		24.6
Price/Book Ratio (P/B)		1.01
Price to Cash Flow		11.54
Beta		1.11
Return on Equity		6.45%
Five-Year Earnings Growth		4.49%

Fund Overview


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	10/29/1996	9/23/1996
Total Net Assets ($ x 1,000)	$141,185	$199,576
Ticker Symbol	RISIX	ICSIX
Cusip	51855Q796	51855Q606
NAV	$11.82	$11.94

Manager views and portfolio holdings may have changed since the report date.

Laudus Rosenberg Funds 13

Laudus Rosenberg International Small Capitalization Fund

Performance Summary as of 3/31/10

March 31, 2000 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

March 31, 2000 – March 31, 2010
Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	1 Year			5 Years			10 Years

Investor Shares (10/29/96)		55.44	%		0.84	%		6.38	%
Select Shares (9/23/96)		56.01	%		1.21	%		6.72	%
S&P Developed ex-U.S. SmallCap Index*		69.53	%		5.32	%		6.22	%

Fund Expense Ratios²: Investor Shares: 1.49% / Select Shares: Net 1.11%

The Fund’s performance relative to the index may be affected by fair-value pricing, see financial note 2 for more information.


*		S&P Developed ex-U.S. SmallCap Index is a float-adjusted index which measures the performance of small companies (approximately the bottom 15% by market capitalization) in 25 developed equity markets. Investors cannot invest directly in any index and index figures do not include trading and management costs.
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. Performance results less than one year are not annualized.
²		As stated in the prospectus. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.

14 Laudus Rosenberg Funds

Laudus Rosenberg International Small Capitalization Fund

Performance Summary as of 3/31/10 continued

Country Weightings % of Investments


Japan	19.8%


United Kingdom	15.4%


Switzerland	8.9%


Canada	8.5%


France	7.0%


Australia	5.3%


Germany	5.2%


Spain	4.2%


Republic of Korea	3.7%


Sweden	3.7%


Other Countries	18.3%


Total	100.0%

Sector Weightings % of Equities


Consumer Discretionary		24.0%
Industrials		21.7%
Financials		17.6%
Materials		14.5%
Information Technology		10.4%
Consumer Staples		5.1%
Energy		2.9%
Health Care		2.8%
Telecommunication Services		0.5%
Utilities		0.5%
Total		100.0%

Top Equity Holdings % of Net Assets¹


Lagardere S.C.A.		1.3%
Banco de Sabadell S.A.		1.2%
Baloise Holding AG - Reg’d		1.2%
Swiss Life Holding AG - Reg’d		1.1%
Clariant AG - Reg’d		1.1%
MTU Aero Engines Holding AG		1.1%
Mondi plc		1.0%
Arriva plc		1.0%
Logica plc		1.0%
Sydbank A/S		1.0%
Total		11.0%


¹		This list is not a recommendation of any security by the investment adviser.

Laudus Rosenberg Funds 15

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 10/1/09		at 3/31/10		10/1/09–3/31/10



Laudus Rosenberg U.S. Large Capitalization Fund
Investor Shares
Actual Return		1.15%	$	1,000	$	1,129.50	$	6.11
Hypothetical 5% Return		1.15%	$	1,000	$	1,019.20	$	5.79
Select Shares
Actual Return		0.85%	$	1,000	$	1,131.90	$	4.52
Hypothetical 5% Return		0.85%	$	1,000	$	1,020.69	$	4.28


Laudus Rosenberg U.S. Discovery Fund
Actual Return		0.97%	$	1,000	$	1,163.70	$	5.23
Hypothetical 5% Return		0.97%	$	1,000	$	1,020.09	$	4.89


Laudus Rosenberg International Discovery Fund
Investor Shares
Actual Return		1.66%	$	1,000	$	1,065.90	$	8.55
Hypothetical 5% Return		1.66%	$	1,000	$	1,016.65	$	8.35
Select Shares
Actual Return		1.36%	$	1,000	$	1,067.20	$	7.01
Hypothetical 5% Return		1.36%	$	1,000	$	1,018.15	$	6.84


Laudus Rosenberg International Small Capitalization Fund
Investor Shares
Actual Return		1.68%	$	1,000	$	1,031.40	$	8.51
Hypothetical 5% Return		1.68%	$	1,000	$	1,016.55	$	8.45
Select Shares
Actual Return		1.28%	$	1,000	$	1,032.60	$	6.49
Hypothetical 5% Return		1.28%	$	1,000	$	1,018.55	$	6.44


¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights, which covers a 12-month period.

²	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year.

16 Laudus Rosenberg Funds

Laudus Rosenberg U.S. Large Capitalization Fund

Financial Statements

Financial Highlights


	4/1/09–			4/1/08–			4/1/07–			4/1/06–			4/1/05–
Investor Shares	3/31/10			3/31/09			3/31/08			3/31/07			3/31/06


Per-Share Data ($)

Net asset value at beginning of period		6.39			10.38			13.21			12.36			11.81

Income (loss) from investment operations:
Net investment income (loss)		0.08	¹		0.11	¹		0.06	¹		0.07	¹		0.06	¹
Net realized and unrealized gains (losses)		2.51			(4.01	)		(0.72	)		1.25			1.63

Total from investment operations		2.59			(3.90	)		(0.66	)		1.32			1.69
Less distributions:
Distributions from net investment income		(0.08	)		(0.09	)		(0.06	)		(0.05	)		(0.07	)
Distributions from net realized gains		—			—			(2.11	)		(0.42	)		(1.07	)

Total distributions		(0.08	)		(0.09	)		(2.17	)		(0.47	)		(1.14	)

Net asset value at end of period		8.90			6.39			10.38			13.21			12.36

Total return (%)		40.70			(37.61	)		(6.61	)		10.69			14.57

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.14			1.15			1.31	²		1.30	²		1.33
Gross operating expenses		1.37			1.39			1.40			1.38			1.52
Net investment income (loss)		1.06			1.25			0.45			0.52			0.50
Portfolio turnover rate		145			153	³		166			144			144
Net assets, end of period ($ x 1,000)		6,707			7,951			9,017			10,074			10,026


	4/1/09–			4/1/08–			4/1/07–			4/1/06–			4/1/05–
Select Shares	3/31/10			3/31/09⁴			3/31/08			3/31/07			3/31/06


Per-Share Data ($)

Net asset value at beginning of period		6.37			10.38			13.21			12.35			11.79

Income (loss) from investment operations:
Net investment income (loss)		0.10	¹		0.14	¹		0.10	¹		0.10	¹		0.10	¹
Net realized and unrealized gains (losses)		2.52			(4.02	)		(0.71	)		1.27			1.62

Total from investment operations		2.62			(3.88	)		(0.61	)		1.37			1.72
Less distributions:
Distributions from net investment income		(0.11	)		(0.13	)		(0.11	)		(0.09	)		(0.09	)
Distributions from net realized gains		—			—			(2.11	)		(0.42	)		(1.07	)

Total distributions		(0.11	)		(0.13	)		(2.22	)		(0.51	)		(1.16	)

Net asset value at end of period		8.88			6.37			10.38			13.21			12.35

Total return (%)		41.26			(37.50	)		(6.30	)		11.10			14.90

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.84			0.85	⁵		1.00	⁶		1.00	⁶		1.01
Gross operating expenses		1.03			0.99			1.01			1.01			1.14
Net investment income (loss)		1.32			1.59			0.77			0.81			0.80
Portfolio turnover rate		145			153	³		166			144			144
Net assets, end of period ($ x 1,000)		94,149			52,891			83,783			94,921			54,296

¹ Calculated based on the average shares outstanding during the period.

² The ratio of net operating expenses would have been 1.29%, if interest expense had not been included.

³ Portfolio turnover excludes the impact of investment activity resulting from a merger with another fund.

⁴ Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.

⁵ The ratio of net operating expenses would have been .84%, if interest expense had not been included.

⁶ The ratio of net operating expenses would have been .99%, if interest expense had not been included.

See financial notes 17

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings as of March 31, 2010

Cost

Value

Holdings by Category

($)

.3%

Common Stock

82,660,054

100,139,781

.1%

Other Investment Company

143,931

.4%

Total Investments

82,803,985

100,283,712

.6%

Other Assets and Liabilities, Net

572,718

100

.0%

Net Assets

100,856,430


	Number		Value
Security	of Shares		($)

Common Stock 99.3% of net assets

Automobiles & Components 1.6%
Ford Motor Co. *		38,280		481,180
Johnson Controls, Inc.		23,940		789,780
The Goodyear Tire & Rubber Co. *		19,400		245,216
TRW Automotive Holdings Corp. *		4,796		137,070

				1,653,246

Banks 1.2%
U.S. Bancorp		15,600		403,728
Wells Fargo & Co.		24,600		765,552

				1,169,280

Capital Goods 6.9%
3M Co.		260		21,728
Gardner Denver, Inc.		4,400		193,776
General Electric Co.		83,100		1,512,420
Kennametal, Inc.		6,600		185,592
L-3 Communications Holdings, Inc.		12,500		1,145,375
Masco Corp.		22,641		351,388
Northrop Grumman Corp.		13,670		896,342
Oshkosh Corp. *		7,350		296,499
Owens Corning, Inc. *		3,390		86,242
Raytheon Co.		33,410		1,908,379
The Boeing Co.		3,440		249,779
The Timken Co.		2,700		81,027

				6,928,547

Commercial & Professional Supplies 1.2%
Avery Dennison Corp.		10,600		385,946
Manpower, Inc.		8,700		496,944
R.R. Donnelley & Sons Co.		16,610		354,623

				1,237,513

Consumer Durables & Apparel 2.6%
Coach, Inc.		32,900		1,300,208
Hasbro, Inc.		7,270		278,296
Jones Apparel Group, Inc.		6,600		125,532
Leggett & Platt, Inc.		13,400		289,976
Newell Rubbermaid, Inc.		16,570		251,864
Phillips-Van Heusen Corp.		4,400		252,384
Whirlpool Corp.		890		77,652

				2,575,912

Consumer Services 0.4%
Wyndham Worldwide Corp.		15,600		401,388

Diversified Financials 6.7%
Ameriprise Financial, Inc.		23,300		1,056,888
Capital One Financial Corp.		14,780		612,040
Discover Financial Services		23,200		345,680
JPMorgan Chase & Co.		57,300		2,564,175
Legg Mason, Inc.		1,360		38,991
The Goldman Sachs Group, Inc.		12,566		2,144,137

				6,761,911

Energy 7.5%
Apache Corp.		50		5,075
Chevron Corp.		290		21,991
ConocoPhillips		68,580		3,509,239
El Paso Corp.		30,640		332,138
Exxon Mobil Corp.		20,590		1,379,118
Helmerich & Payne, Inc.		2,460		93,677
Marathon Oil Corp.		47,770		1,511,443
Massey Energy Co.		370		19,347
Oil States International, Inc. *		3,710		168,211
Sunoco, Inc.		1,220		36,246
Teekay Corp.		987		22,444
The Williams Cos., Inc.		19,520		450,912

				7,549,841

Food & Staples Retailing 2.9%
CVS Caremark Corp.		81,100		2,965,016

Food, Beverage & Tobacco 9.2%
Archer-Daniels-Midland Co.		17,550		507,195
ConAgra Foods, Inc.		46,300		1,160,741
Constellation Brands, Inc., Class A *		27,950		459,498
Dr Pepper Snapple Group, Inc.		11,010		387,222
General Mills, Inc.		470		33,271
Lorillard, Inc.		13,920		1,047,341
Philip Morris International, Inc.		78,200		4,078,912
Sara Lee Corp.		74,200		1,033,606
Tyson Foods, Inc., Class A		27,950		535,242

				9,243,028

18 See financial notes

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Health Care Equipment & Services 5.2%
Beckman Coulter, Inc.		2,480		155,744
Boston Scientific Corp. *		26,510		191,402
Cardinal Health, Inc.		13,900		500,817
Community Health Systems, Inc. *		7,700		284,361
Health Management Associates, Inc., Class A *		19,850		170,710
Hill-Rom Holdings, Inc.		5,100		138,771
Hologic, Inc. *		8,783		162,837
Humana, Inc. *		18,100		846,537
McKesson Corp.		1,930		126,840
Omnicare, Inc.		11,200		316,848
UnitedHealth Group, Inc.		39,140		1,278,704
WellPoint, Inc. *		16,180		1,041,668

				5,215,239

Household & Personal Products 1.9%
Avon Products, Inc.		30,960		1,048,615
Nu Skin Enterprises, Inc., Class A		3,700		107,670
The Estee Lauder Cos., Inc., Class A		9,900		642,213
The Procter & Gamble Co.		1,900		120,213

				1,918,711

Insurance 3.0%
Cincinnati Financial Corp.		7,590		219,351
CNA Financial Corp. *		1,430		38,210
Everest Re Group Ltd.		2,190		177,237
Prudential Financial, Inc.		29,000		1,754,500
Unum Group		35,120		869,922

				3,059,220

Materials 4.3%
Cabot Corp.		5,400		164,160
Cytec Industries, Inc.		4,200		196,308
E.I. du Pont de Nemours & Co.		30,650		1,141,406
Eastman Chemical Co.		5,880		374,438
Freeport-McMoRan Copper & Gold, Inc.		8,140		680,016
PPG Industries, Inc.		12,700		830,580
RPM International, Inc.		10,700		228,338
Sealed Air Corp.		11,970		252,328
The Lubrizol Corp.		5,582		511,981

				4,379,555

Media 2.5%
DISH Network Corp., Class A		16,800		349,776
Gannett Co., Inc.		19,400		320,488
The Interpublic Group of Cos., Inc. *		40,700		338,624
The New York Times Co., Class A *		6,780		75,461
The Walt Disney Co.		3,340		116,600
Viacom Inc., Class B *		38,300		1,316,754

				2,517,703

Pharmaceuticals, Biotechnology & Life Sciences 10.6%
Bristol-Myers Squibb Co.		101,300		2,704,710
Eli Lilly & Co.		2,060		74,613
Forest Laboratories, Inc. *		27,800		871,808
Johnson & Johnson		800		52,160
Life Technologies Corp. *		14,200		742,234
Merck & Co., Inc.		60,520		2,260,422
Mylan, Inc. *		24,730		561,618
PerkinElmer, Inc.		9,800		234,220
Pfizer, Inc.		186,000		3,189,900

				10,691,685

Retailing 7.6%
Aeropostale, Inc. *		7,320		211,036
Expedia, Inc.		16,750		418,080
Foot Locker, Inc.		13,380		201,235
Limited Brands, Inc.		29,500		726,290
Office Depot, Inc. *		23,360		186,413
Priceline.com, Inc. *		3,259		831,045
RadioShack Corp.		4,800		108,624
Staples, Inc.		30,381		710,611
Target Corp.		7,010		368,726
The Gap, Inc.		36,880		852,297
The Home Depot, Inc.		92,880		3,004,668
The TJX Cos., Inc.		810		34,441

				7,653,466

Semiconductors & Semiconductor Equipment 2.2%
Advanced Micro Devices, Inc. *		50,200		465,354
Cypress Semiconductor Corp. *		15,200		174,800
Lam Research Corp. *		10,380		387,382
LSI Corp. *		66,400		406,368
Maxim Integrated Products, Inc.		6,192		120,063
Novellus Systems, Inc. *		8,500		212,500
ON Semiconductor Corp. *		11,120		88,960
Teradyne, Inc. *		15,300		170,901
Texas Instruments, Inc.		9,790		239,561

				2,265,889

Software & Services 7.3%
Amdocs Ltd. *		21,300		641,343
Automatic Data Processing, Inc.		13,370		594,564
BMC Software, Inc. *		4,110		156,180
CA, Inc.		40,500		950,535
Cadence Design Systems, Inc. *		590		3,929
Computer Sciences Corp. *		15,900		866,391
IAC/InterActiveCorp *		7,030		159,862
Microsoft Corp.		132,820		3,887,642
Symantec Corp. *		7,520		127,238

				7,387,684

Technology Hardware & Equipment 11.1%
Apple, Inc. *		1,400		328,902
Arrow Electronics, Inc. *		13,500		406,755
Avnet, Inc. *		16,400		492,000
Brocade Communications Systems, Inc. *		2,700		15,417
Cisco Systems, Inc. *		33,160		863,155
Harris Corp.		10,430		495,321
Hewlett-Packard Co.		64,910		3,449,966
Ingram Micro, Inc., Class A *		14,200		249,210

See financial notes 19

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
International Business Machines Corp.		34,700		4,450,275
Lexmark International, Inc., Class A *		6,780		244,622
Molex, Inc.		6,660		138,928
Vishay Intertechnology, Inc. *		9,300		95,139

				11,229,690

Telecommunication Services 0.9%
CenturyTel, Inc.		24,400		865,224

Transportation 0.3%
Continental Airlines, Inc., Class B *		11,500		252,655

Utilities 2.2%
Ameren Corp.		22,600		589,408
MDU Resources Group, Inc.		16,400		353,912
NiSource, Inc.		21,160		334,328
ONEOK, Inc.		9,400		429,110
The AES Corp. *		46,420		510,620

				2,217,378

Total Common Stock (Cost $82,660,054)				100,139,781




Other Investment Company 0.1% of net assets


State Street Institutional Liquid Reserves Fund - Institutional Class		143,931		143,931

Total Other Investment Company (Cost $143,931)				143,931



End of Investments.

At 03/31/10, the tax basis cost of the fund’s investments was $83,405,317 and the unrealized appreciation and depreciation were $17,390,701 and ($512,306), respectively, with a net unrealized appreciation of $16,878,395.


*		Non-income producing security.

20 See financial notes

Laudus Rosenberg U.S. Large Capitalization Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $82,803,985)		$100,283,712
Receivables:
Investments sold		1,147,882
Fund shares sold		209,672
Dividends		182,719
Interest		60
Prepaid expenses	+	1,754

Total assets		101,825,799

Liabilities

Payables:
Investments bought		676,414
Fund shares redeemed		212,615
Investment adviser fees		4,607
Trustee’s retirement plan		1,659
Distribution and shareholder services fees		1,430
Accrued expenses	+	72,644

Total liabilities		969,369

Net Assets

Total assets		101,825,799
Total liabilities	−	969,369

Net assets		$100,856,430

Net Assets by Source
Capital received from investors		111,332,175
Net investment income not yet distributed		269,096
Net realized capital losses		(28,224,568	)
Net unrealized capital gains		17,479,727

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$6,707,368		753,549			$8.90
Select Shares	$94,149,062		10,608,161			$8.88

See financial notes 21

Laudus Rosenberg U.S. Large Capitalization Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends		$2,002,316
Interest	+	2,273

Total investment income		2,004,589

Expenses

Investment adviser fees		693,911
Professional fees		83,140
Transfer agent fees		42,023
Accounting and administration fees		40,736
Registration fees		26,153
Distribution and shareholder services fees (Investor Shares )		16,220
Trustees’ fees		16,220
Custodian fees		14,054
Shareholder reports		13,944
Sub-Accounting fees (Investor Shares )		8,891
Interest expense		1,272
Other expenses	+	20,442

Total expenses		977,006
Expense reduction by adviser	−	173,219
Custody credits	−	9

Net expenses	−	803,778

Net investment income		1,200,811

Realized and Unrealized Gains (Losses)

Net realized gains on investments		5,566,501
Net unrealized gains on investments	+	23,941,562

Net realized and unrealized gains		29,508,063

Net increase in net assets resulting from operations		$30,708,874

22 See financial notes

Laudus Rosenberg U.S. Large Capitalization Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10			4/1/08-3/31/09
Net investment income		$1,200,811		$1,254,011
Net realized gains (losses)		5,566,501		(29,736,001	)
Net unrealized gains (losses)	+	23,941,562		(7,650,246	)

Increase (Decrease) in net assets from operations		30,708,874		(36,132,236	)

Distributions to Shareholders^1,2

Distributions from net investment income
Investor Shares		70,283		73,064
Select Shares	+	1,189,818		1,076,584

Total distributions from net investment income		$1,260,101		$1,149,648

Transactions in Fund Shares^1,2


		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			73,693		$553,729			284,141		$2,506,291
Select Shares	+		6,682,795		47,603,390			3,349,677		28,198,028

Total shares sold			6,756,488		$48,157,119			3,633,818		$30,704,319


Issued in connection with merger
Investor Shares			—		$—			412,246		$2,713,243
Select Shares	+		—		—			1,075,587		7,059,329

Total shares issued in connection with merger			—		$—			1,487,833		$9,772,572


Shares Reinvested
Investor Shares			8,154		$67,104			9,802		$68,616
Select Shares	+		137,432		1,126,943			129,058		899,538

Total shares reinvested			145,586		$1,194,047			138,860		$968,154


Shares Redeemed
Investor Shares			(572,152	)	($4,386,360	)		(330,657	)	($2,967,042	)
Select Shares	+		(4,509,739	)	(34,399,282	)		(4,330,234	)	(33,154,277	)

Total shares redeemed			(5,081,891	)	($38,785,642	)		(4,660,891	)	($36,121,319	)

Net transactions in fund shares			1,820,183		$10,565,524			599,620		$5,323,726

Shares Outstanding and Net Assets

		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			9,541,527		$60,842,133			8,941,907		$92,800,291
Total increase or decrease	+		1,820,183		40,014,297			599,620		(31,958,158	)

End of period			11,361,710		$100,856,430			9,541,527		$60,842,133


Net investment income not yet distributed					$269,096					$328,386


¹		Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.
²		Effective March 26, 2009, all of the assets and liabilities of the Laudus Rosenberg U.S. Large Capitalization Growth Fund were transferred to the Laudus Rosenberg U.S. Large Capitalization Fund.

See financial notes 23

Laudus Rosenberg U.S. Discovery Fund

Financial Statements

Financial Highlights


	4/1/09¹–			4/1/08–			4/1/07–			4/1/06–			4/1/05–
	3/31/10			3/31/09²			3/31/08			3/31/07			3/31/06


Per-Share Data ($)

Net asset value at beginning of period		9.44			16.23			19.80			19.23			15.96

Income (loss) from investment operations:
Net investment income (loss)		0.03	³		0.07	³		0.04			0.03			0.02
Net realized and unrealized gains (losses)		5.00			(6.71	)		(2.13	)		1.05			3.58

Total from investment operations		5.03			(6.64	)		(2.09	)		1.08			3.60
Less distributions:
Distributions from net investment income		(0.10	)		(0.08	)		0.00	⁴		(0.03	)		—
Distributions from net realized gains		—	⁴		(0.07	)		(1.48	)		(0.48	)		(0.16	)
Return of capital		—			—			—			—			(0.17	)

Total distributions		(0.10	)		(0.15	)		(1.48	)		(0.51	)		(0.33	)

Net asset value at end of period		14.37			9.44			16.23			19.80			19.23

Total return (%)		53.48			(40.99	)		(10.98	)		5.71			22.80

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.03	⁵		0.99			0.96			0.97			1.09
Gross operating expenses		1.07			0.99			0.96			0.97			1.09
Net investment income (loss)		0.23			0.53			0.18			0.17			0.15
Portfolio turnover rate		111	⁶		115			74			86			89
Net assets, end of period ($ x 1,000)		347,029			295,568			566,055			718,185			673,599

¹ Effective November 19, 2009, the Investor Share class and the Select Share class were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Select Shares.

² Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.

³ Calculated based on the average shares outstanding during the period.

⁴ Amount less than $0.005.

⁵ Effective August 12, 2009, the net operating expense limitation was lowered. The ratio presented for period ended March 31, 2010 is a blended rate. Please see financial note 4 for more information.

⁶ Portfolio turnover excludes the impact of investment activity resulting from a merger with another fund. (See Financial Note 12)

24 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings as of March 31, 2010


				Cost		Value
Holdings by Category				($)		($)

	99	.1%	Common Stock		284,732,257		343,825,168
	1	.3%	Other Investment Company		4,676,959		4,676,959


	100	.4%	Total Investments		289,409,216		348,502,127
	1	.1%	Collateral Invested for Securities on Loan		3,780,125		3,780,125
	(1	.5)%	Other Assets and Liabilities, Net				(5,252,834	)


	100	.0%	Net Assets				347,029,418


	Number		Value
Security	of Shares		($)

Common Stock 99.1% of net assets

Automobiles & Components 0.3%
Exide Technologies *		61,777		355,218
Hawk Corp., Class A *		400		7,800
Motorcar Parts of America, Inc. *		18,260		118,690
Spartan Motors, Inc.		13,881		77,733
Strattec Security Corp. *		2,368		48,118
The Goodyear Tire & Rubber Co. *		37,900		479,056

				1,086,615

Banks 6.3%
Astoria Financial Corp.		191,600		2,778,200
Banco Latinoamericano de Comercio Exterior, S.A., Class E		92,240		1,324,566
BancorpSouth, Inc.		52,900		1,108,784
Bank of Hawaii Corp.		26,300		1,182,185
BNC Bancorp		2,800		22,176
BOK Financial Corp.		13,499		707,888
Brookline Bancorp, Inc.		16,100		171,304
C&F Financial Corp.		530		10,494
Capitol Federal Financial		7,700		288,442
Century Bancorp Inc., Class A		5,100		97,920
City National Corp.		6,240		336,773
Commerce Bancshares, Inc.		61,156		2,515,958
Community Bank System, Inc.		10,500		239,190
Cullen/Frost Bankers, Inc.		26,139		1,458,556
Federal Agricultural Mortgage Corp., Class C (a)		12,900		146,157
First Financial Bankshares, Inc.		5,400		278,370
First Niagara Financial Group, Inc.		54,000		767,880
FirstMerit Corp.		40,769		879,387
Harleysville National Corp.		81,978		549,253
Hawthorn Bancshares, Inc.		500		6,025
Hopfed Bancorp, Inc.		2,310		28,298
Horizon Bancorp		5,327		102,811
International Bancshares Corp.		18,328		421,361
Jefferson Bancshares, Inc.		100		457
LSB Financial Corp.		1,816		19,050
MutualFirst Financial, Inc.		262		1,742
NB&T Financial Group, Inc.		1,300		23,400
Peoples Bancorp of North Carolina		1,907		11,347
Premier Financial Bancorp, Inc.		10,565		90,119
Prosperity Bancshares, Inc.		23,200		951,200
QCR Holdings, Inc.		3,510		31,239
Republic Bancorp, Inc., Class A		1,998		37,642
Security National Financial Corp., Class A *		651		2,005
Southern Missouri Bancorp, Inc.		540		7,668
SVB Financial Group *		19,800		923,868
TCF Financial Corp.		29,986		477,977
Teche Holding Co.		1,780		58,562
TF Financial Corp.		2,800		53,452
Tompkins Financial Corp.		2,309		84,232
Tree.com, Inc. *		3,441		31,485
UMB Financial Corp.		14,010		568,806
Valley National Bancorp		130,149		2,000,390
Westamerica Bancorp		18,100		1,043,465

				21,840,084

Capital Goods 5.5%
Aircastle Ltd.		60,810		575,871
Alamo Group, Inc.		9,800		195,902
Ampco-Pittsburgh Corp.		810		20,104
Bucyrus International, Inc.		31,920		2,106,401
Crane Co.		82,450		2,926,975
Ducommun, Inc.		14,700		308,847
EnerSys *		354		8,730
EnPro Industries, Inc. *		220		6,398
Esterline Technologies Corp. *		43,400		2,145,262
Federal Signal Corp.		89,430		805,764
Integrated Electrical Services, Inc. *		6,447		36,425
Lawson Products, Inc.		7,500		116,025
Layne Christensen Co. *		22,598		603,592
MFRI, Inc. *		10,900		72,812
Mueller Industries, Inc.		3,310		88,675
Oshkosh Corp. *		90,496		3,650,609
Primoris Services Corp. (a)		10,900		84,366
Regal-Beloit Corp.		840		49,904
SIFCO Industries, Inc.		6,662		113,720
SL Industries, Inc. *		7,572		68,527
The L.S. Starrett Co., Class A		1,052		10,888
Thomas & Betts Corp. *		77,700		3,048,948
Triumph Group, Inc.		26,155		1,833,204
Watts Water Technologies, Inc., Class A		6,710		208,413
Willis Lease Finance Corp. *		7,500		118,350

				19,204,712

Commercial & Professional Supplies 2.2%
A.T. Cross Co., Class A *		1,330		5,533

See financial notes 25

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ATC Technology Corp. *		27,363		469,549
CRA International, Inc. *		13,753		315,219
Deluxe Corp.		95,973		1,863,796
Ecology & Environment, Inc., Class A		5,200		72,904
G & K Services, Inc., Class A		31,912		825,883
Intersections, Inc. *		6,944		28,748
Kelly Services, Inc., Class A *		42,100		701,386
National Technical Systems, Inc.		5,090		27,995
School Specialty, Inc. *		1,570		35,655
Steelcase, Inc., Class A		91,900		594,593
Superior UniForm Group, Inc.		210		2,026
The Standard Register Co.		32,150		172,002
United Stationers, Inc. *		40,445		2,380,188
Virco Mfg. Corp.		2,430		9,258
WCA Waste Corp. *		10,806		55,003

				7,559,738

Consumer Durables & Apparel 6.1%
Flexsteel Industries, Inc.		3,290		44,711
Fossil, Inc. *		65,400		2,468,196
Hasbro, Inc.		160,920		6,160,018
Jarden Corp.		100,918		3,359,560
Phillips-Van Heusen Corp.		86,378		4,954,642
Polaris Industries, Inc.		22,488		1,150,486
R. G. Barry Corp.		12,200		124,440
RC2 Corp. *		9,051		135,493
Sport Supply Group, Inc.		12,170		163,565
Steven Madden Ltd. *		670		32,696
The Timberland Co., Class A *		67,189		1,433,813
Tupperware Brands Corp.		590		28,450
UniFirst Corp.		20,278		1,044,317

				21,100,387

Consumer Services 2.6%
Ark Restaurants Corp.		288		3,928
Bob Evans Farms, Inc.		57,700		1,783,507
Career Education Corp. *		32,779		1,037,128
Carriage Services, Inc. *		886		4,067
Carrols Restaurant Group, Inc. *		21,000		142,800
CEC Entertainment, Inc. *		32,400		1,234,116
CPI Corp.		7,400		102,564
Cracker Barrel Old Country Store, Inc.		40,101		1,859,884
Full House Resorts, Inc. *		1,900		5,453
Jackson Hewitt Tax Service, Inc. (a)*		48,440		96,880
Lincoln Educational Services Corp. *		250		6,325
Red Lion Hotels Corp. *		16,500		119,130
Regis Corp.		85,150		1,590,602
Service Corp. International		88,707		814,330
Town Sports International Holdings, Inc. *		31,690		123,908

				8,924,622

Diversified Financials 0.7%
Advance America Cash Advance Centers, Inc.		34,865		202,914
BGC Partners, Inc., Class A		6,597		40,308
Cash America International, Inc.		5,370		212,008
Dollar Financial Corp. *		38,000		914,280
EZCORP, Inc., Class A *		4,900		100,940
JMP Group, Inc.		12,200		103,700
QC Holdings, Inc.		5,626		29,086
Raymond James Financial, Inc.		31,600		844,984

				2,448,220

Energy 3.5%
Adams Resources & Energy, Inc.		1,350		23,625
Global Industries Ltd. *		3,126		20,069
Green Plains Renewable Energy, Inc. *		12,200		174,094
Helmerich & Payne, Inc.		45,220		1,721,977
International Coal Group, Inc. *		125,870		575,226
Massey Energy Co.		104,670		5,473,194
Oil States International, Inc. *		66,870		3,031,886
Southern Union Co.		46,070		1,168,796

				12,188,867

Food, Beverage & Tobacco 0.1%
Corn Products International, Inc.		6,270		217,318
Golden Enterprises, Inc.		9,940		33,001
Hormel Foods Corp.		1,420		59,654
John B. Sanfilippo & Son, Inc. *		7,402		109,180

				419,153

Health Care Equipment & Services 11.3%
A.D.A.M., Inc. *		1,210		4,840
Amedisys, Inc. (a)*		45,440		2,509,197
AmSurg Corp. *		860		18,567
Anika Therapeutics, Inc. *		2,364		16,855
Capital Senior Living Corp. *		41,412		217,827
Community Health Systems, Inc. *		105,370		3,891,314
CONMED Corp. *		21,862		520,534
Coventry Health Care, Inc. *		169,000		4,177,680
Dynacq Healthcare, Inc. (a)*		4,470		13,187
Gentiva Health Services, Inc. *		5,187		146,688
Hanger Orthopedic Group, Inc. *		32,500		590,850
Health Management Associates, Inc., Class A *		113,840		979,024
Health Net, Inc. *		190,330		4,733,507
Healthspring, Inc. *		35,985		633,336
Invacare Corp.		40,600		1,077,524
inVentiv Health, Inc. *		350		7,861
Inverness Medical Innovations, Inc. *		44,420		1,730,159
Kewaunee Scientific Corp.		3,800		53,219
Kindred Healthcare, Inc. *		69,210		1,249,241
Kinetic Concepts, Inc. *		68,270		3,263,989
LifePoint Hospitals, Inc. *		92,400		3,398,472
MedCath Corp. *		27,700		290,019
Mediware Information Systems, Inc. *		3,500		31,360
National Dentex Corp. *		1,300		12,844
NovaMed, Inc. (a)*		16,541		56,239
Odyssey Healthcare, Inc. *		29,200		528,812
Omnicare, Inc.		215,100		6,085,179
Orthofix International N.V. *		28,523		1,037,667
PharMerica Corp. *		46,157		840,981
Span-America Medical Systems, Inc.		3,500		65,100
STERIS Corp.		8,045		270,795

26 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Universal Health Services, Inc., Class B		24,834		871,425

				39,324,292

Household & Personal Products 2.2%
American Oriental Bioengineering, Inc. (a)*		4,800		19,584
Elizabeth Arden, Inc. *		1,360		24,480
Energizer Holdings, Inc. *		62,750		3,938,190
Herbalife Ltd.		38,194		1,761,507
Nu Skin Enterprises, Inc., Class A		67,600		1,967,160
Revlon, Inc., Class A *		5,000		74,250

				7,785,171

Insurance 3.6%
American Equity Investment Life Holding Co.		88,305		940,448
American Financial Group, Inc.		74,955		2,132,470
American Independence Corp. *		3,000		18,750
Argo Group International Holdings Ltd.		45,200		1,473,068
Aspen Insurance Holdings Ltd.		104,820		3,023,009
Eastern Insurance Holdings, Inc.		773		7,838
National Western Life Insurance Co., Class A		30		5,530
PMA Capital Corp., Class A *		59,700		366,558
Protective Life Corp.		907		19,945
Reinsurance Group of America, Inc.		81,301		4,269,929
Stewart Information Services Corp.		13,491		186,176

				12,443,721

Materials 11.2%
American Pacific Corp. *		700		4,774
Arch Chemicals, Inc.		20,995		722,018
Buckeye Technologies, Inc. *		56,600		740,328
Bway Holding Co. *		310		6,231
Clearwater Paper Corp. *		19,001		935,799
Domtar Corp. *		61,500		3,961,215
Eastman Chemical Co.		100,800		6,418,944
Friedman Industries, Inc.		1,696		9,701
Huntsman Corp.		190,090		2,290,585
Innospec, Inc. *		41,634		472,962
International Flavors & Fragrances, Inc.		66,172		3,154,419
KapStone Paper and Packaging Corp. *		18,871		223,999
Nalco Holding Co.		79,256		1,928,298
NewMarket Corp.		10,500		1,081,395
OM Group, Inc. *		1,890		64,033
PolyOne Corp. *		69,182		708,424
RPM International, Inc.		154,547		3,298,033
Sealed Air Corp.		202,150		4,261,322
Stepan Co.		13,700		765,693
The Lubrizol Corp.		85,700		7,860,404
UFP Technologies, Inc. *		6,750		69,863

				38,978,440

Media 3.3%
AH Belo Corp., Class A *		480		3,442
Alloy, Inc. *		18,400		150,880
Cinemark Holdings, Inc.		2,870		52,636
Daily Journal Corp. *		440		29,383
Fisher Communications, Inc. *		6,730		94,893
Gannett Co., Inc.		115,590		1,909,547
Knology, Inc. *		38,300		514,752
Media General, Inc., Class A (a)*		13,740		113,905
Mediacom Communications Corp., Class A *		4,670		27,786
The Interpublic Group of Cos., Inc. *		815,100		6,781,632
The New York Times Co., Class A *		143,400		1,596,042

				11,274,898

Pharmaceuticals, Biotechnology & Life Sciences 3.8%
Accelrys, Inc. *		49,784		306,669
Cambrex Corp. *		47,495		192,355
Celera Corp. *		48,910		347,261
King Pharmaceuticals, Inc. *		345,900		4,067,784
Martek Biosciences Corp. *		50,600		1,139,006
Neurocrine Biosciences, Inc. *		74,176		189,149
Par Pharmaceutical Cos., Inc. *		56,329		1,396,959
Transcept Pharmaceuticals, Inc. *		8,350		66,383
Watson Pharmaceuticals, Inc. *		128,330		5,360,344

				13,065,910

Real Estate 2.9%
Ashford Hospitality Trust *		38,060		272,890
Cedar Shopping Centers, Inc.		68,200		539,462
Cogdell Spencer, Inc.		38,700		286,380
DCT Industrial Trust, Inc.		334,020		1,746,925
Douglas Emmett, Inc.		211,110		3,244,761
DuPont Fabros Technology, Inc.		23,011		496,808
Education Realty Trust, Inc.		87,400		501,676
HRPT Properties Trust		253,800		1,974,564
J.W. Mays, Inc. *		410		6,896
Mission West Properties, Inc.		32,307		222,272
One Liberty Properties, Inc. *		4,729		78,785
Ramco-Gershenson Properties Trust		44,000		495,440
Transcontinental Realty Investors, Inc. *		1,800		22,536

				9,889,395

Retailing 7.5%
Aeropostale, Inc. *		85,575		2,467,127
AMCON Distributing Co.		461		26,784
Barnes & Noble, Inc. (a)		4,576		98,933
Big Lots, Inc. *		25,670		934,901
Books-A-Million, Inc.		3,362		24,341
Cabela’s, Inc. (a)*		55,600		972,444
Core-Mark Holding Co., Inc. *		11,360		347,730
DSW, Inc., Class A *		11,550		294,872
Foot Locker, Inc.		42,160		634,086
Gaiam, Inc., Class A *		25,000		207,500
GameStop Corp., Class A *		27,800		609,098
Genesco, Inc. *		31,500		976,815
Hastings Entertainment, Inc. *		15,940		70,295

See financial notes 27

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Haverty Furniture Cos., Inc.		27,500		448,800
Jo-Ann Stores, Inc. *		47,500		1,994,050
Jos. A. Bank Clothiers, Inc. *		29,590		1,617,094
Netflix, Inc. *		41,800		3,082,332
Overstock.com, Inc. (a)*		28,678		466,018
RadioShack Corp.		226,920		5,135,200
Rent-A-Center, Inc. *		80,990		1,915,413
Retail Ventures, Inc. *		43,590		414,541
Stage Stores, Inc.		53,790		827,828
Systemax, Inc.		3,300		71,742
The Children’s Place Retail Stores, Inc. *		2,582		115,028
The Finish Line, Inc., Class A		63,057		1,029,090
The Pep Boys - Manny, Moe & Jack		94,019		944,891
West Marine, Inc. *		27,410		297,399

				26,024,352

Semiconductors & Semiconductor Equipment 4.2%
Actel Corp. *		38,400		531,840
Advanced Micro Devices, Inc. *		204,680		1,897,384
Amkor Technology, Inc. *		142,500		1,007,475
Applied Micro Circuits Corp. *		92,454		797,878
CEVA, Inc. *		25,200		293,832
Cirrus Logic, Inc. *		121,182		1,016,717
Cypress Semiconductor Corp. *		161,600		1,858,400
Fairchild Semiconductor International, Inc. *		187,610		1,998,046
FEI Co. *		52,200		1,195,902
Integrated Device Technology, Inc. *		242,000		1,483,460
Integrated Silicon Solutions, Inc. *		23,710		250,140
Kulicke & Soffa Industries, Inc. *		3,297		23,903
LSI Corp. *		322,196		1,971,840
Mindspeed Technologies, Inc. *		32,100		257,121
National Semiconductor Corp.		350		5,058

				14,588,996

Software & Services 8.5%
CACI International, Inc., Class A *		43,237		2,112,127
CIBER, Inc. *		100,600		376,244
Computer Task Group, Inc. *		21,900		158,775
Convergys Corp. *		181,800		2,228,868
CSG Systems International, Inc. *		56,280		1,179,629
Dynamics Research Corp. *		13,400		151,018
EarthLink, Inc.		56,840		485,414
Euronet Worldwide, Inc. *		46,300		853,309
Fair Isaac Corp.		77,200		1,956,248
Internet Gold-Golden Lines Ltd. (a)*		221		7,213
INX, Inc. *		7,235		34,656
JDA Software Group, Inc. *		3,260		90,693
Lawson Software, Inc. *		241,000		1,593,010
Mentor Graphics Corp. *		146,401		1,174,136
ModusLink Global Solutions, Inc. *		2,180		18,377
Ness Technologies, Inc. *		13,465		84,964
Novell, Inc. *		118,900		712,211
Parametric Technology Corp. *		206,000		3,718,300
Progress Software Corp. *		66,433		2,087,989
QAD, Inc.		19,500		102,375
Quest Software, Inc. *		109,900		1,955,121
Reis, Inc. *		11,700		68,503
SonicWALL, Inc. *		99,900		868,131
Stamps.com, Inc. *		3,897		39,360
Synopsys, Inc. *		243,496		5,447,006
TechTeam Global, Inc. *		15,500		104,935
Unisys Corp. *		24,758		863,807
United Online, Inc.		117,400		878,152

				29,350,571

Technology Hardware & Equipment 7.1%
Adaptec, Inc. *		64,880		212,158
Arris Group, Inc. *		126,410		1,518,184
Avnet, Inc. *		167,980		5,039,400
Black Box Corp.		32,600		1,002,776
Brocade Communications Systems, Inc. *		608,363		3,473,753
Comtech Telecommunications Corp. *		16,940		541,911
Concurrent Computer Corp. *		1,290		7,418
CPI International, Inc. *		920		12,199
Cray, Inc. *		52,300		311,185
Electronics for Imaging, Inc. *		16,526		192,197
EMS Technologies, Inc. *		589		9,777
Emulex Corp. *		136,084		1,807,196
Gerber Scientific, Inc. *		37,940		235,607
GTSI Corp. *		11,405		63,298
Insight Enterprises, Inc. *		64,087		920,289
Interphase Corp. *		1,200		3,132
Lexmark International, Inc., Class A *		134,093		4,838,075
Oplink Communications, Inc. *		24,920		462,017
OSI Systems, Inc. *		24,200		678,810
PC Connection, Inc. *		900		5,580
PC Mall, Inc. *		19,300		97,658
Richardson Electronics Ltd.		20,100		159,795
SeaChange International, Inc. *		34,467		247,473
Tech Data Corp. *		63,600		2,664,840
Telular Corp *		1,700		5,168
TESSCO Technologies, Inc.		6,500		152,815
Tollgrade Communications, Inc. *		3,450		21,700
Vicon Industries, Inc. *		7,000		35,700

				24,720,111

Telecommunication Services 2.0%
CenturyTel, Inc.		195,490		6,932,075
Premiere Global Services, Inc. *		1,300		10,738
SureWest Communications *		18,400		158,056

				7,100,869

Transportation 2.5%
Air T., Inc.		2,698		30,676
Alaska Air Group, Inc. *		66,100		2,725,303
AMERCO *		100		5,429
Avis Budget Group, Inc. *		156,000		1,794,000
Continental Airlines, Inc., Class B *		500		10,985
Genco Shipping & Trading Ltd. (a)*		1,364		28,794
International Shipholding Corp.		2,000		58,780
SkyWest, Inc.		104,975		1,499,043
UTI Worldwide, Inc.		156,591		2,398,974

				8,551,984

28 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Utilities 1.7%
American Water Works Co., Inc.		95,370		2,075,251
Northeast Utilities		11,400		315,096
ONEOK, Inc.		78,066		3,563,713

				5,954,060

Total Common Stock (Cost $284,732,257)				343,825,168




Other Investment Company 1.3% of net assets


State Street Institutional Liquid Reserves Fund - Institutional Class		4,676,959		4,676,959

Total Other Investment Company (Cost $4,676,959)				4,676,959



End of Investments.



Collateral Invested for Securities on Loan 1.1% of net assets


State Street Navigator Security Lending Prime Portfolio		3,780,125		3,780,125

Total Collateral Invested for Securities on Loan (Cost $3,780,125)				3,780,125



End of collateral invested for securities on loan.

At 03/31/10, the tax basis cost of the fund’s investments was $290,513,442 and the unrealized appreciation and depreciation were $64,396,117 and ($6,407,432), respectively, with a net unrealized appreciation of $57,988,685.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.

See financial notes 29

Laudus Rosenberg U.S. Discovery Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value including securities on loan of $3,677,453 (cost $289,409,216)		$348,502,127
Collateral invested for securities on loan		3,780,125
Receivables:
Investments sold		1,297,411
Fund shares sold		419,277
Dividends		214,338
Interest		591
Income from securities on loan		35,164
Prepaid expenses	+	18,464

Total assets		354,267,497

Liabilities

Collateral held for securities on loan		3,780,125
Payables:
Investments bought		3,060,191
Fund shares redeemed		133,595
Trustee’s retirement plan		29,350
Investment adviser fees		25,763
Accrued expenses	+	209,055

Total liabilities		7,238,079

Net Assets

Total assets		354,267,497
Total liabilities	−	7,238,079

Net assets		$347,029,418

Net Assets by Source
Capital received from investors		466,296,206
Net investment income not yet distributed		249,382
Net realized capital losses		(178,609,081	)
Net unrealized capital gains		59,092,911

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$347,029,418

24,142,003

$14.37

30 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends (net of foreign withholding taxes of $353)		$3,939,766
Interest		13,940
Securities on loan	+	136,195

Total investment income		4,089,901

Expenses

Investment adviser fees		2,971,633
Transfer agent fees		115,596
Professional fees		91,833
Shareholder reports		89,403
Accounting and administration fees		50,823
Trustees’ fees		36,256
Registration fees		34,137
Sub-Accounting fees (Investor Shares )¹		27,470
Custodian fees		25,614
Distribution and shareholder services fees (Investor Shares )¹		14,881
Interest expense		5,597
Other expenses	+	88,451

Total expenses		3,551,694
Expense reduction by adviser	−	139,635
Custody credits	−	1

Net expenses	−	3,412,058

Net investment income		677,843

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(22,680,659	)
Net unrealized gains on investments	+	166,460,401

Net realized and unrealized gains		143,779,742

Net increase in net assets resulting from operations		$144,457,585


¹		Effective November 19, 2009, all outstanding Investor Shares combined with Select Shares, resulting in a single class of shares of the fund.

See financial notes 31

Laudus Rosenberg U.S. Discovery Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10				4/1/08-3/31/09
Net investment income		$677,843			$2,595,446
Net realized losses		(22,680,659	)		(143,102,701	)
Net unrealized gains (losses)	+	166,460,401			(148,676,585	)

Increase (Decrease) in net assets from operations		144,457,585			(289,183,840	)

Distributions to Shareholders^1,2

Distributions from net investment income
Investor Shares		240,121			158,428
Select Shares	+	1,214,928			2,180,530

Total distributions from net investment income		$1,455,049			$2,338,958


Distributions from net realized gains
Investor Shares		17,386			673,788
Select Shares	+	43,178			2,118,982

Total distributions from net realized gains		$60,564			$2,792,770

Total distributions		$1,515,613			$5,131,728

Transactions in Fund Shares^1,2,3


		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			1,593,370		$16,923,858			3,456,214		$43,031,333
Select Shares	+		9,364,507		113,389,308			12,988,421		160,654,833

Total shares sold			10,957,877		$130,313,166			16,444,635		$203,686,166


Issued in connection with merger
Select Shares	+		13,015,793		161,701,705			—		—

Total shares issued in connection with merger			13,015,793		$161,701,705			—		$—


Shares Reinvested
Investor Shares			20,665		$251,704			82,365		$819,528
Select Shares	+		96,930		1,196,114			416,456		4,197,876

Total shares reinvested			117,595		$1,447,818			498,821		$5,017,404


Shares Redeemed
Investor Shares			(10,428,950	)	($122,712,793	)		(5,347,797	)	($68,027,483	)
Select Shares	+		(29,645,582	)	(344,211,387	)		(16,973,500	)	(204,536,277	)

Total shares redeemed			(40,074,532	)	($466,924,180	)		(22,321,297	)	($272,563,760	)

Net transactions in fund shares			(15,983,267	)	($173,461,491	)		(5,377,841	)	($63,860,190	)

Shares Outstanding and Net Assets

		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			40,125,270		$377,548,937			45,503,111		$735,724,695
Total decrease	+		(15,983,267	)	(30,519,519	)		(5,377,841	)	(358,175,758	)

End of period			24,142,003		$347,029,418			40,125,270		$377,548,937


Net investment income not yet distributed					$249,382					$1,052,127


¹		Effective November 19, 2009, all outstanding Investor Shares (4,973,069 shares valued at $61,027,487) combined with Select Shares resulting in a single class of shares of the fund.
²		Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.
³		Effective November 19, 2009, all the assets and liabilities of the Laudus Rosenberg U.S. Small Capitalization Fund were transferred to the Laudus Rosenberg Discovery Fund.

32 See financial notes

Laudus Rosenberg International Discovery Fund

Financial Statements

Financial Highlights


	4/1/09–			4/1/08–			4/1/07–			5/31/06¹–
Investor Shares	3/31/10			3/31/09			3/31/08			3/31/07


Per-Share Data ($)

Net asset value at beginning of period		6.04			11.43			12.04			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.07	²		0.17	²		0.11	²		0.06	²
Net realized and unrealized gains (losses)		3.43			(5.45	)		(0.16	)		2.06

Total from investment operations		3.50			(5.28	)		(0.05	)		2.12
Less distributions:
Distributions from net investment income		(0.12	)		(0.11	)		(0.10	)		(0.06	)
Distributions from net realized gains		—			—			(0.46	)		(0.02	)

Total distributions		(0.12	)		(0.11	)		(0.56	)		(0.08	)

Net asset value at end of period		9.42			6.04			11.43			12.04

Total return (%)		58.12			(46.33	)		(0.51	)		21.62	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.66	⁴		1.65			1.65			1.64	⁵
Gross operating expenses		1.95			1.86			1.81			2.03	⁵
Net investment income (loss)		0.90			1.90			0.89			0.75	⁵
Portfolio turnover rate		132			159			147			106	³
Net assets, end of period ($ x 1,000)		33,741			34,005			121,930			51,572


	4/1/09–			4/1/08⁶–			4/1/07–			5/31/06¹–
Select Shares	3/31/10			3/31/09			3/31/08			3/31/07


Per-Share Data ($)

Net asset value at beginning of period		6.03			11.45			12.05			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.09	²		0.15	²		0.14	²		0.09	²
Net realized and unrealized gains (losses)		3.44			(5.42	)		(0.16	)		2.06

Total from investment operations		3.53			(5.27	)		(0.02	)		2.15
Less distributions:
Distributions from net investment income		(0.15	)		(0.15	)		(0.12	)		(0.08	)
Distributions from net realized gains		—			—			(0.46	)		(0.02	)

Total distributions		(0.15	)		(0.15	)		(0.58	)		(0.10	)

Net asset value at end of period		9.41			6.03			11.45			12.05

Total return (%)		58.75			(46.20	)		(0.24	)		21.90	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.36	⁷		1.35			1.35			1.34	⁵
Gross operating expenses		1.56			1.54			1.54			1.64	⁵
Net investment income (loss)		1.09			1.87			1.14			1.06	⁵
Portfolio turnover rate		132			159			147			106	³
Net assets, end of period ($ x 1,000)		307,866			182,191			139,643			19,173

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ The ratio of net operating expenses would have been 1.65% if certain non-routine expenses (proxy expense) had not been incurred.

⁵ Annualized.

⁶ Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.

⁷ The ratio of net operating expenses would have been 1.35% if certain non-routine expenses (proxy expense) had not been incurred.

See financial notes 33

Laudus Rosenberg International Discovery Fund

Portfolio Holdings as of March 31, 2010


				Cost		Value
Holdings by Category				($)		($)

	96	.3%	Common Stock		283,574,947		328,981,330
	1	.7%	Preferred Stock		4,934,666		5,844,040
	1	.5%	Other Investment Company		5,003,383		5,003,383


	99	.5%	Total Investments		293,512,996		339,828,753
	0	.5%	Other Assets and Liabilities, Net				1,778,517


	100	.0%	Net Assets				341,607,270


	Number		Value
Security	of Shares		($)

Common Stock 96.3% of net assets

Australia 4.7%


Banks 0.2%
Bank of Queensland Ltd.		74,200		801,409


Capital Goods 0.4%
Leighton Holdings Ltd.		42,809		1,529,030


Commercial & Professional Supplies 0.4%
Brambles Ltd.		51,300		346,048
Downer EDI Ltd.		147,800		1,023,288

				1,369,336


Consumer Services 0.7%
Crown Ltd.		10,800		80,971
Flight Centre Ltd.		28,600		549,696
TABCORP Holdings Ltd.		163,800		1,035,829
Tatts Group Ltd.		292,926		660,793

				2,327,289


Energy 0.1%
Whitehaven Coal Ltd.		112,000		527,803


Food, Beverage & Tobacco 0.4%
Coca-Cola Amatil Ltd.		25,200		259,973
Foster’s Group Ltd.		72,000		349,056
Goodman Fielder Ltd.		498,500		652,763

				1,261,792


Insurance 0.8%
Insurance Australia Group Ltd.		48,700		173,197
Suncorp.-Metway Ltd.		308,700		2,415,940

				2,589,137


Materials 1.2%
Amcor Ltd.		25,400		148,853
Lihir Gold Ltd.		39,500		111,028
Macarthur Coal Ltd.		67,600		870,695
Mount Gibson Iron Ltd. *		297,100		509,052
OneSteel Ltd.		45,500		162,704
Orica Ltd.		91,800		2,253,211

				4,055,543


Media 0.4%
Fairfax Media Ltd.		829,900		1,369,185


Real Estate 0.1%
Stockland		78,000		284,940


Retailing 0.0%
Harvey Norman Holdings Ltd.		3,159		10,472


Utilities 0.0%
AGL Energy Ltd.		4,500		62,008

				16,187,944

Austria 0.7%


Capital Goods 0.1%
Strabag SE		19,200		485,671


Energy 0.3%
OMV AG		30,200		1,132,282


Materials 0.3%
Voestalpine AG		21,224		855,720

				2,473,673

Belgium 1.3%


Food & Staples Retailing 0.2%
Delhaize Group		7,000		561,819


Health Care Equipment & Services 0.1%
Omega Pharma S.A. *		3,400		169,047


Materials 0.5%
Solvay S.A.		16,200		1,663,010
Umicore		2,125		74,126

				1,737,136


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
UCB S.A.		41,600		1,774,808


Real Estate 0.0%
Cofinimmo *		796		112,185

				4,354,995

Brazil 1.3%


Capital Goods 0.3%
Empresa Brasileira de Aeronautica S.A. *		152,900		904,495


Food, Beverage & Tobacco 0.1%
BRF - Brasil Foods S.A.		9,700		261,270


Insurance 0.1%
Porto Seguro S.A.		23,300		235,836


Materials 0.3%
Bradespar S.A.		49,000		1,129,699

34 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Software & Services 0.0%
Redecard S.A.		2,500		46,251


Utilities 0.5%
Companhia de Saneamento Basico do Estado de Sao Paulo		44,300		795,151
Companhia de Saneamento de Minas Gerais - Copasa MG		31,600		456,670
EDP - Energias do Brasil S.A.		32,200		619,248

				1,871,069

				4,448,620

Canada 6.5%


Automobiles & Components 0.4%
Magna International, Inc., Class A *		21,640		1,339,117


Banks 0.5%
Home Capital Group, Inc.		7,000		297,947
National Bank of Canada		26,090		1,588,545

				1,886,492


Capital Goods 0.1%
Bombardier, Inc., Class B		53,400		327,556
SNC-Lavalin Group, Inc.		1,000		48,845

				376,401


Commercial & Professional Supplies 0.0%
Transcontinental, Inc., Class A		3,160		42,407


Diversified Financials 0.1%
IGM Financial, Inc.		6,200		272,259


Energy 0.8%
AltaGas Income Trust		7,600		137,685
Crescent Point Energy Corp.		1,200		46,043
Enerplus Resources Fund		5,610		132,952
Mullen Group Ltd.		21,100		333,229
Nexen, Inc.		28,700		710,118
Penn West Energy Trust		52,600		1,113,992
Petrobank Energy & Resources Ltd. *		4,200		230,005
Provident Energy Trust		16,300		126,465

				2,830,489


Food & Staples Retailing 0.1%
Shoppers Drug Mart Corp.		4,600		197,651


Food, Beverage & Tobacco 0.1%
Maple Leaf Foods, Inc.		28,330		288,140


Insurance 0.5%
Fairfax Financial Holdings Ltd.		2,247		844,907
Power Corp. of Canada		26,500		799,970

				1,644,877


Materials 2.2%
Agnico-Eagle Mines Ltd.		3,200		178,770
Agrium, Inc.		23,200		1,640,549
Canfor Corp. *		39,910		371,338
Eldorado Gold Corp. *		1,300		15,782
First Quantum Minerals Ltd.		14,900		1,226,006
IAMGOLD Corp.		73,200		972,973
Inmet Mining Corp.		14,040		815,734
PAN American Silver Corp.		2,400		55,247
Quadra Mining Ltd. *		400		6,124
Sherritt International Corp.		12,500		99,198
Sino-Forest Corp. *		19,500		382,071
West Fraser Timber Co., Ltd.		15,900		604,753
Yamana Gold, Inc.		129,600		1,282,410

				7,650,955


Media 0.2%
Astral Media, Inc.		6,530		228,886
Corus Entertainment, Inc., Class B		780		15,245
Quebecor, Inc., Class B		12,600		428,994
Shaw Communications, Inc., Class B		1,600		31,680

				704,805


Retailing 0.2%
Canadian Tire Corp., Ltd., Class A		11,820		645,203


Software & Services 0.1%
CGI Group, Inc., Class A *		11,500		172,107


Technology Hardware & Equipment 0.2%
Celestica, Inc. *		59,610		651,475


Telecommunication Services 0.2%
Telus Corp. - Non Voting		24,070		861,226


Transportation 0.5%
Canadian Pacific Railway Ltd.		28,300		1,594,931


Utilities 0.3%
ATCO Ltd., Class I		17,900		897,952
Canadian Utilities Ltd., Class A		3,900		188,539

				1,086,491

				22,245,026

Chile 0.9%


Banks 0.3%
Banco de Chile ADR		12,613		729,788
Corpbanca S.A. ADR		5,100		219,300

				949,088


Food, Beverage & Tobacco 0.1%
Compania Cervecerias Unidas S.A.		1,000		7,470
Compania Cervecerias Unidas S.A. ADR		12,427		466,137
Embotelladora Andina S.A. Series A ADR		1,817		31,797

				505,404


Materials 0.2%
Sociedad Quimica y Minera de Chile S.A. ADR		15,100		564,589


Transportation 0.2%
Lan Airlines S.A. ADR		30,000		529,500


Utilities 0.1%
Enersis S.A. ADR		25,900		517,741

				3,066,322

China 2.0%


Automobiles & Components 0.9%
Chongqing Changan Automobile Co., Ltd., Class B		289,800		255,973
Dongfeng Motor Group Co., Ltd., Class H		791,000		1,282,589
Great Wall Motor Co., Ltd., Class H		211,000		438,358
Jiangling Motors Corp., Ltd., Class B		455,804		794,183

See financial notes 35

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Qingling Motors Co., Ltd., Class H		788,000		213,882

				2,984,985


Capital Goods 0.3%
Baoye Group Co., Ltd., Class H		239,000		173,846
Hangzhou Steam Turbine Co., Ltd., Class B		118,200		266,079
Shanghai Mechanical & Electrical Industry Co., Ltd., Class B		493,840		529,900

				969,825


Energy 0.1%
Yanzhou Coal Mining Co., Ltd., Class H		74,000		178,055


Materials 0.3%
China Bluechemical Ltd., Class H		834,000		543,187
Shandong Chenming Paper Holdings, Ltd., Class B		872,200		653,746

				1,196,933


Technology Hardware & Equipment 0.1%
Great Wall Technology Co., Ltd., Class H		448,000		193,667
Kingboard Laminates Holding Ltd.		49,000		42,684

				236,351


Telecommunication Services 0.1%
China Communications Services Corp., Ltd., Class H		914,000		458,491


Transportation 0.2%
Guangshen Railway Co., Ltd., Class H		804,000		321,624
Zhejiang Expressway Co., Ltd., Class H		356,000		320,997

				642,621

				6,667,261

Columbia 0.2%


Banks 0.2%
Bancolombia S.A. ADR		13,900		634,674

Denmark 1.1%


Food, Beverage & Tobacco 0.8%
Carlsberg A/S, Class B		17,100		1,433,583
Danisco A/S		19,198		1,430,657

				2,864,240


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
H. Lundbeck A/S		45,424		852,507

				3,716,747

Egypt 0.9%


Banks 0.2%
National Societe Generale Bank		90,000		539,492


Materials 0.2%
Ezz Steel *		144,000		548,058


Real Estate 0.2%
Talaat Moustafa Group *		540,000		750,346


Telecommunication Services 0.3%
Telecom Egypt		342,000		1,058,578

				2,896,474

Finland 1.0%


Capital Goods 0.5%
Konecranes Oyj		12,540		370,323
Metso Corp. Oyj		10,400		335,655
Wartsila Corp. Oyj		17,562		889,268

				1,595,246


Materials 0.5%
Huhtamaki Oyj		16,000		174,349
UPM-Kymmene Oyj		118,000		1,564,677

				1,739,026


Real Estate 0.0%
Citycon Oyj		23,954		95,306

				3,429,578

France 3.0%


Automobiles & Components 0.6%
Compagnie Generale des Etablissements Michelin, Class B		15,600		1,148,922
Faurecia *		9,100		182,182
PSA Peugeot Citroen *		23,500		690,379

				2,021,483


Capital Goods 0.1%
Faiveley Transport		423		34,524
Nexans S.A.		274		23,313
Zodiac Aerospace		8,917		438,720

				496,557


Consumer Services 0.4%
Sodexho		24,073		1,435,647


Insurance 0.4%
CNP Assurances		12,993		1,226,172


Materials 0.1%
Rhodia S.A. *		10,106		208,684


Media 0.5%
Lagardere S.C.A.		35,200		1,422,864
M6 Metropole Television		10,183		262,854

				1,685,718


Real Estate 0.2%
Fonciere des Regions		604		66,450
Gecina S.A.		4,600		509,160

				575,610


Software & Services 0.7%
Atos Origin S.A. *		16,800		843,825
Cap Gemini S.A.		35,058		1,723,674

				2,567,499

				10,217,370

Germany 1.8%


Capital Goods 0.3%
MTU Aero Engines Holding AG		16,200		942,301

36 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Rheinmetall AG		159		11,377

				953,678


Health Care Equipment & Services 0.3%
Celesio AG		30,400		971,599


Materials 0.6%
Salzgitter AG		12,000		1,111,867
ThyssenKrupp AG		26,730		916,572

				2,028,439


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG *		66,000		457,080


Software & Services 0.1%
United Internet AG - Reg’d *		18,491		280,571


Transportation 0.4%
Deutsche Lufthansa AG - Reg’d *		80,800		1,339,222

				6,030,589

Greece 0.6%


Food, Beverage & Tobacco 0.3%
Coca Cola Hellenic Bottling Co., S.A.		42,750		1,150,742


Utilities 0.3%
Public Power Corp. S.A. *		56,000		983,541

				2,134,283

Hong Kong 4.1%


Banks 0.1%
Industrial & Commercial Bank of China (Asia) Ltd.		156,000		389,861
The Bank of East Asia Ltd.		29,800		109,430

				499,291


Capital Goods 0.2%
Shanghai Industrial Holdings Ltd.		148,000		677,305


Consumer Durables & Apparel 0.5%
Bosideng International Holdings Ltd.		195,000		43,637
Shenzhou International Group		338,000		487,166
Yue Yuen Industrial Holdings Ltd. (a)(b)		291,500		1,013,685

				1,544,488


Consumer Services 0.1%
The Hongkong & Shanghai Hotels Ltd.		300,500		463,977


Diversified Financials 0.3%
First Pacific Co., Ltd.		1,036,000		670,204
Guoco Group Ltd.		39,000		404,868

				1,075,072


Food, Beverage & Tobacco 0.3%
Chaoda Modern Agriculture (Holdings) Ltd.		938,608		998,819


Materials 0.2%
Fosun International		686,000		547,858


Media 0.1%
Television Broadcasts Ltd.		66,000		319,504


Real Estate 1.5%
Champion Real Estate Investment Trust		174,000		83,065
China Properties Group Ltd. *		532,000		159,297
Chinese Estates Holdings Ltd.		299,000		499,727
Great Eagle Holdings Ltd.		220,000		616,831
Hang Lung Group Ltd.		3,000		15,890
Hongkong Land Holdings Ltd.		53,000		268,324
Hopson Development Holdings Ltd.		124,000		199,897
Hysan Development Co., Ltd.		294,000		849,120
New World China Land Ltd.		1,392,400		496,022
New World Development Co., Ltd.		489,000		954,886
Soho China Ltd.		499,000		282,277
Wheelock & Co., Ltd.		275,000		809,785

				5,235,121


Retailing 0.1%
Esprit Holdings Ltd.		48,905		385,426


Technology Hardware & Equipment 0.2%
Digital China Holdings Ltd.		224,000		377,457
Kingboard Chemical Holdings Ltd.		63,000		286,186
Lenovo Group Ltd.		30,000		20,662

				684,305


Transportation 0.3%
Cathay Pacific Airways Ltd. *		500,000		1,051,737


Utilities 0.2%
Guangdong Investment Ltd.		1,052,000		568,557

				14,051,460

India 3.0%


Automobiles & Components 0.0%
Hero Honda Motors Ltd.		1,700		73,766


Banks 0.7%
Bank of Baroda		34,340		490,141
Bank of India		45,990		347,026
Bank of Maharashtra Ltd.		158,650		176,241
Corporation Bank		11,060		116,960
Dena Bank Ltd.		16,563		28,785
Indian Bank		40,230		156,892
Syndicate Bank		194,280		372,412
UCO Bank		209,530		264,512
Union Bank of India Ltd.		41,730		272,297

				2,225,266


Capital Goods 0.0%
SKF India Ltd.		11,685		90,223


Diversified Financials 0.0%
JM Financial Ltd.		15,386		12,939
Shriram Transport Finance Co., Ltd.		10,420		121,814

				134,753


Energy 0.3%
Bharat Petroleum Corp., Ltd.		22,260		256,341
Cairn India Ltd. *		68,310		463,415
Mangalore Refinery & Petrochemicals Ltd.		82,760		140,136

				859,892


Materials 1.4%
Grasim Industries Ltd.		2,050		128,654
Gujarat Alkalies & Chemicals Ltd.		4,107		11,506
Gujarat Fluorochemicals Ltd.		2,200		6,899
Gujarat Narmada Valley Fertilizers Co., Ltd.		47,990		120,249

See financial notes 37

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Gujarat State Fertilizers & Chemicals Ltd.		30,440		148,984
Hindalco Industries Ltd.		200,690		809,215
Hindustan Zinc Ltd.		27,156		727,353
Steel Authority of India Ltd.		39,790		224,166
Sterlite Industries (India) Ltd.		51,840		979,681
Tata Steel Ltd.		72,300		1,017,148
Ultra Tech Cement Ltd.		17,628		452,677

				4,626,532


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Dr. Reddy’s Laboratories Ltd.		15,000		427,113


Software & Services 0.2%
HCL Technologies Ltd.		80,290		646,190


Utilities 0.3%
Gail India Ltd.		109,260		995,181

				10,078,916

Indonesia 1.3%


Banks 0.6%
PT Bank Mandiri		2,649,500		1,552,964
PT Bank Negara Indonesia (Persero) Tbk		1,861,000		464,121

				2,017,085


Capital Goods 0.3%
PT United Tractors Tbk		633,000		1,273,896


Energy 0.3%
PT Adaro Energy		4,974,000		1,068,590


Materials 0.1%
PT International Nickel Indonesia Tbk (INCO)		454,000		234,967

				4,594,538

Ireland 0.2%


Capital Goods 0.2%
DCC plc		29,400		762,029

Israel 1.2%


Banks 1.0%
First International Bank of Israel Ltd. *		48,000		898,394
Israel Discount Bank Ltd., Class A *		640,000		1,461,110
Mizrahi Tefahot Bank Ltd. *		123,000		1,160,861

				3,520,365


Capital Goods 0.2%
Discount Investment Corp. - Reg’d		24,000		667,897

				4,188,262

Italy 1.7%


Automobiles & Components 0.1%
Fiat S.p.A.		28,000		364,364


Banks 0.0%
Credito Emiliano S.p.A. *		12,094		83,438


Capital Goods 0.5%
C.I.R. S.p.A. - Compagnie Industriali Riunite *		70,000		168,604
Danieli S.p.A. - Officine Meccaniche Danieli & C.		600		16,078
Finmeccanica S.p.A.		108,900		1,453,125

				1,637,807


Consumer Services 0.2%
Autogrill S.p.A. *		62,582		761,632


Materials 0.2%
Italcementi S.p.A.		69,388		802,132


Media 0.3%
Mediaset S.p.A.		110,000		944,656


Transportation 0.1%
Autostrada Torino-Milano S.p.A.		21,972		308,594


Utilities 0.3%
Edison S.p.A.		527,439		803,026

				5,705,649

Japan 19.6%


Automobiles & Components 2.6%
Aisin Seiki Co., Ltd.		2,600		78,073
Daihatsu Motor Co., Ltd.		154,000		1,472,112
Fuji Heavy Industries Ltd. *		310,000		1,608,480
Mazda Motor Corp. *		614,000		1,731,811
NGK SPARK PLUG Co., Ltd.		86,000		1,171,482
Toyota Auto Body Co., Ltd.		60,600		1,037,217
Yamaha Motor Co., Ltd. *		111,300		1,672,028

				8,771,203


Banks 0.5%
Yamaguchi Financial Group, Inc.		145,000		1,588,454


Capital Goods 1.6%
Hankyu Hanshin Holdings, Inc.		9,000		41,742
JTEKT Corp.		140,500		1,663,275
Minebea Co., Ltd.		162,000		986,945
Nippon Sheet Glass Co., Ltd.		254,000		751,226
NTN Corp.		75,000		339,277
Toyota Tsusho Corp.		106,600		1,674,641

				5,457,106


Commercial & Professional Supplies 0.9%
Dai Nippon Printing Co., Ltd.		102,000		1,379,671
Toppan Printing Co., Ltd.		197,000		1,781,698

				3,161,369


Consumer Durables & Apparel 2.5%
Makita Corp.		48,900		1,614,192
NAMCO BANDAI Holdings, Inc.		146,400		1,427,802
Nikon Corp.		38,400		839,540
Sankyo Co., Ltd.		20,700		1,024,759
Sega Sammy Holdings, Inc.		51,200		620,336
Shimano, Inc.		37,800		1,675,595
Yamaha Corp.		98,600		1,274,746

				8,476,970


Diversified Financials 0.4%
Daiwa Securities Group, Inc.		266,000		1,401,998


Energy 0.3%
Nippon Mining Holdings, Inc. (a)(b)		250,000		1,187,498


Food, Beverage & Tobacco 0.7%
MEIJI Holdings Co., Ltd. *		21,600		838,177

38 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Nippon Meat Packers, Inc.		115,000		1,454,932

				2,293,109


Health Care Equipment & Services 0.3%
Medipal Holdings Corp.		92,700		1,099,058


Materials 3.8%
Kaneka Corp.		214,000		1,388,558
Mitsubishi Chemical Holdings Corp.		358,500		1,835,941
Mitsubishi Materials Corp. *		491,000		1,414,319
Mitsui Chemicals, Inc.		496,000		1,503,720
Sumitomo Chemical Co., Ltd.		407,000		1,992,800
Sumitomo Metal Mining Co., Ltd.		135,000		2,008,528
Teijin Ltd.		499,000		1,677,358
Toyo Seikan Kaisha Ltd.		63,700		1,128,766

				12,949,990


Media 0.4%
Hakuhodo Dy Holdings, Inc.		40		2,109
Tokyo Broadcasting System Holdings, Inc.		86,900		1,318,000

				1,320,109


Pharmaceuticals, Biotechnology & Life Sciences 0.9%
Dainippon Sumitomo Pharma Co., Ltd.		155,600		1,427,726
Taisho Pharmaceutical Co., Ltd.		87,000		1,581,059

				3,008,785


Retailing 0.0%
AOYAMA TRADING Co., Ltd.		8,400		138,750


Semiconductors & Semiconductor Equipment 0.6%
Rohm Co., Ltd.		27,500		2,057,672


Software & Services 0.5%
NTT Data Corp.		531		1,770,518


Technology Hardware & Equipment 3.0%
Brother Industries Ltd.		83,300		1,009,001
Konica Minolta Holdings, Inc.		158,000		1,848,024
NEC Corp. *		679,000		2,045,182
Nippon Electric Glass Co., Ltd.		129,000		1,820,826
Seiko Epson Corp.		94,000		1,462,677
Tdk Corp.		31,800		2,119,946

				10,305,656


Transportation 0.6%
All Nippon Airways Co., Ltd.		79,000		225,801
West Japan Railway Co.		545		1,877,749

				2,103,550

				67,091,795

Luxembourg 0.0%


Transportation 0.0%
Stolt-Nielsen S.A.		1,900		31,199

Malaysia 0.9%


Automobiles & Components 0.1%
Proton Holdings Berhad *		198,000		285,619


Banks 0.2%
CIMB Group Holdings Berhad		199,000		857,382


Consumer Services 0.1%
Genting Berhad		180,000		363,646


Materials 0.1%
Titan Chemicals Corp. Berhad *		499,500		188,107


Transportation 0.0%
Malaysia Airports Holdings Berhad		82,000		121,145


Utilities 0.4%
Tenaga Nasional Berhad		537,000		1,319,807

				3,135,706

Mexico 1.4%


Banks 0.0%
Grupo Financiero Banorte S.A.B. de C.V., Class O		4,300		19,073


Capital Goods 0.2%
Alfa S.A.B., Class A		12,800		100,837
Grupo Carso S.A.B de C.V., Series A1		184,200		704,694

				805,531


Food & Staples Retailing 0.0%
Grupo Gigante S.A.B. de C.V., Class B		71,800		110,919


Food, Beverage & Tobacco 0.6%
Coca-Cola Femsa S.A.B. de C.V. (Femsa), Series L		112,300		749,530
Embotelladoras Arca S.A.B. de C.V.		141,400		487,430
Grupo Bimbo S.A.B. de C.V., Series A		41,500		370,567
Grupo Continental S.A.B.		141,900		428,096

				2,035,623


Household & Personal Products 0.3%
Kimberly-Clark de Mexico S.A.B. de C.V., Class A		167,300		945,851


Materials 0.3%
Grupo Mexico S.A.B. de C.V., Series B		281,900		754,925
Grupo Simec S.A. de C.V., Series B *		83,700		241,479

				996,404

				4,913,401

Netherlands 1.4%


Capital Goods 0.3%
Imtech N.V.		26,000		833,702
Koninklijke BAM Groep N.V.		17,287		134,230

				967,932


Commercial & Professional Supplies 0.0%
Randstad Holding N.V. *		3,000		142,466


Food, Beverage & Tobacco 0.2%
CSM *		16,500		512,019
Nutreco Holding N.V.		3,131		197,202

				709,221


Health Care Equipment & Services 0.0%
Mediq N.V.		4,403		81,084


Materials 0.4%
Akzo Nobel N.V.		10,200		580,984
Koninklijke DSM N.V.		14,710		655,326

				1,236,310


Semiconductors & Semiconductor Equipment 0.5%
STMicroelectronics N.V.		171,154		1,698,412

				4,835,425

See financial notes 39

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

New Zealand 0.0%


Transportation 0.0%
Air New Zealand Ltd.		72,900		65,722

Northern Ireland 0.1%


Materials 0.1%
Rexam plc		82,881		368,417

Norway 0.6%


Energy 0.5%
Aker A.S.A., Class A		14,045		388,211
Aker Solutions A.S.A.		69,000		1,083,689
Petroleum Geo-Services A.S.A. *		20,000		262,710
TGS Nopec Geophysical Co., A.S.A. *		2,167		46,107

				1,780,717


Media 0.1%
Schibsted A.S.A. *		9,860		248,973

				2,029,690

Peru 0.1%


Materials 0.1%
Cia de Minas Buenaventura S.A. ADR		6,300		195,111

Philippines 0.1%


Diversified Financials 0.0%
Ayala Corp.		15,000		110,175


Food, Beverage & Tobacco 0.1%
San Miguel Corp., Class B		106,600		173,408

				283,583

Poland 1.2%


Banks 0.1%
Bank Handlowy w Warszawie S.A. *		14,101		394,458
ING Bank Slaski S.A. *		16		4,175

				398,633


Energy 0.4%
Polski Koncern Naftowy Orlen S.A. *		24,000		325,707
Polskie Gornictwo Naftowe I Gazownictwo S.A.		870,000		1,114,973

				1,440,680


Materials 0.5%
KGHM Polska Miedz S.A.		43,200		1,623,617


Real Estate 0.2%
Globe Trade Centre S.A. *		72,000		625,631

				4,088,561

Portugal 0.1%


Utilities 0.1%
EDP - Energias de Portugal S.A.		68,402		271,792

Republic of Korea 4.3%


Banks 0.2%
Hana Financial Group, Inc.		21,530		667,318


Capital Goods 1.5%
CJ Corp.		8,220		489,683
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		46,020		882,667
Doosan Corp.		2,020		229,229
Hyundai Heavy Industries Co., Ltd.		500		104,687
Hyundai Mipo Dockyard Co., Ltd.		870		119,537
LG Corp.		22,520		1,413,749
Samsung C&T Corp.		3,220		173,268
SK Holdings Co., Ltd.		14,860		1,319,965
SK Networks Co., Ltd.		31,930		324,444

				5,057,229


Consumer Durables & Apparel 0.3%
LG Electronics, Inc.		10,110		1,027,739


Diversified Financials 0.2%
Woori Investment & Securities Co., Ltd.		50,680		702,909


Energy 0.2%
GS Holdings		17,350		614,855
SK Energy Co., Ltd.		1,020		109,503

				724,358


Food & Staples Retailing 0.0%
Shinsegae Co., Ltd.		170		80,414


Food, Beverage & Tobacco 0.1%
KT&G Corp.		3,570		197,495


Insurance 0.1%
Samsung Fire & Marine Insurance Co., Ltd.		1,000		160,424


Materials 0.7%
Hanwha Chemical Corp.		42,580		518,901
KISWIRE Ltd.		3,610		130,810
Korea Zinc Co., Ltd.		7,200		1,284,200
LG Chem Ltd.		2,497		530,679
SeAH Holdings Corp.		125		6,773

				2,471,363


Retailing 0.0%
GS Home Shopping, Inc.		1,810		111,465
Lotte Shopping Co., Ltd.		140		40,567

				152,032


Software & Services 0.1%
Nhn Corp. *		1,300		207,003


Technology Hardware & Equipment 0.4%
LG Display Co., Ltd.		41,280		1,458,721


Telecommunication Services 0.5%
KT Corp.		23,840		986,741
LG Telecom Ltd.		103,740		707,814

				1,694,555

				14,601,560

Russia 1.0%


Energy 0.6%
Tatneft ADR *		65,200		2,040,760

40 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.4%
Sistema JSFC - Reg’d GDR *		56,200		1,522,964

				3,563,724

Singapore 1.7%


Banks 0.0%
DBS Group Holdings Ltd.		6,000		61,175


Capital Goods 0.6%
Fraser & Neave Ltd.		198,000		678,254
Keppel Corp., Ltd.		30,000		195,400
SembCorp Industries Ltd.		406,000		1,195,407

				2,069,061


Real Estate 0.3%
UOL Group Ltd.		279,000		776,623
Wheelock Properties (S) Ltd.		86,000		115,982

				892,605


Retailing 0.3%
Jardine Cycle & Carriage Ltd.		56,000		1,174,097


Transportation 0.5%
SIA Engineering Co., Ltd.		380,000		963,592
Singapore Airlines Ltd.		55,000		596,967

				1,560,559

				5,757,497

South Africa 2.9%


Banks 0.5%
Nedbank Group Ltd.		87,000		1,676,316


Capital Goods 0.4%
Aveng Ltd.		227,152		1,171,563
Bidvest Group Ltd.		11,411		213,530
Hosken Consolidated Investments Ltd. *		4,000		42,835

				1,427,928


Consumer Durables & Apparel 0.0%
Steinhoff International Holdings Ltd. *		44,802		122,842


Diversified Financials 0.0%
Investec Ltd.		13,122		112,616


Food, Beverage & Tobacco 0.1%
Pioneer Foods Ltd.		56,000		291,754


Health Care Equipment & Services 0.4%
Medi-Clinic Corp., Ltd.		153,951		572,425
Netcare Ltd. *		336,000		608,252

				1,180,677


Insurance 0.5%
Sanlam Ltd.		454,705		1,549,990


Materials 0.7%
Assore Ltd.		500		52,597
Gold Fields Ltd.		164,000		2,073,580
Harmony Gold Mining Co., Ltd.		42,800		404,400

				2,530,577


Retailing 0.3%
Imperial Holdings Ltd.		66,146		908,134

				9,800,834

South Korea 0.0%


Capital Goods 0.0%
KCC Corp.		300		93,921

Spain 1.5%


Banks 0.8%
Banco de Sabadell S.A.		282,000		1,557,615
Banco Popular Espanol S.A.		38,000		279,480
Bankinter S.A.		111,000		925,132

				2,762,227


Capital Goods 0.5%
Abengoa S.A.		6,482		186,372
Construcciones y Auxiliar de Ferrocarriles S.A.		885		521,045
Fomento de Construcciones y Contratas S.A.		27,300		998,459

				1,705,876


Food, Beverage & Tobacco 0.1%
Ebro Puleva S.A.		21,545		397,015


Insurance 0.1%
Grupo Catalana Occidente S.A.		7,564		153,894

				5,019,012

Sweden 1.8%


Capital Goods 0.1%
NCC AB, B Shares		8,139		141,813
Saab AB, B Shares		12,000		182,463

				324,276


Consumer Durables & Apparel 0.4%
Electrolux AB, B Shares *		63,629		1,457,424


Materials 0.9%
Boliden AB		71,608		1,023,063
Svenska Cellulosa AB, A Shares		10,000		142,800
Svenska Cellulosa AB, B Shares		139,961		1,973,403

				3,139,266


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Meda AB, A Shares		94,848		1,041,271


Real Estate 0.1%
Hufvudstaden AB, A Shares		29,917		255,835

				6,218,072

Switzerland 1.8%


Capital Goods 0.3%
Schindler Holding AG		8,020		705,513
Schindler Holding AG - Reg’d		2,049		177,881

				883,394


Commercial & Professional Supplies 0.0%
Adecco S.A. - Reg’d		300		17,031


Insurance 0.9%
Baloise Holding AG - Reg’d		12,197		1,081,722
Helvetia Patria Holding AG - Reg’d		2,400		844,161
Swiss Life Holding AG - Reg’d *		9,216		1,208,611

				3,134,494

See financial notes 41

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Materials 0.2%
Ems-Chemie Holding AG - Reg’d		637		87,386
Sika AG		300		506,743

				594,129


Real Estate 0.4%
PSP Swiss Property AG - Reg’d *		12,835		824,045
Swiss Prime Site AG - Reg’d *		11,100		695,148

				1,519,193

				6,148,241

Taiwan 4.3%


Banks 0.5%
Mega Financial Holding Co., Ltd.		251,000		145,509
Taishin Financial Holding Co., Ltd. *		1,529,003		621,843
Taiwan Cooperative Bank		1,418,278		857,292

				1,624,644


Capital Goods 0.1%
CTCI Corp.		233,000		243,291


Diversified Financials 0.0%
Fubon Financial Holding Co., Ltd. *		12,000		14,586


Materials 0.2%
China Metal Products Co., Ltd.		102,000		145,881
Formosa Chemicals & Fibre Corp.		189,520		443,550

				589,431


Semiconductors & Semiconductor Equipment 0.9%
Advanced Semiconductor Engineering, Inc.		1,487,000		1,353,067
Powertech Technology, Inc.		42,000		150,035
Siliconware Precision Industries Co.		24,000		28,902
United Microelectronics Corp. *		3,230,000		1,724,720

				3,256,724


Technology Hardware & Equipment 2.6%
Acer, Inc.		438,945		1,296,209
Asustek Computer, Inc.		346,405		603,223
AU Optronics Corp.		1,230,847		1,394,148
Compal Electronics, Inc.		1,385,741		1,813,386
HTC Corp.		23,000		268,706
Lite-On Technology Corp.		841,028		1,115,926
Quanta Computer, Inc.		776,514		1,506,296
Wistron NeWeb Corp.		598,474		1,087,261

				9,085,155

				14,813,831

Thailand 0.8%


Banks 0.4%
Bangkok Bank Public Co., Ltd. NVDR		245,000		994,998
Krung Thai Bank Public Co., Ltd. NVDR		1,067,900		402,349

				1,397,347


Energy 0.0%
Banpu Public Co., Ltd. - Reg’d		7,000		133,592


Materials 0.3%
PTT Chemical Public Co., Ltd. NVDR		50,000		146,758
The Siam Cement Public Co., Ltd. NVDR		115,000		912,648

				1,059,406


Transportation 0.1%
Airports of Thailand Public Co., Ltd. NVDR		116,800		138,005
Thai Airways International Public Co., Ltd. NVDR *		16,000		13,952

				151,957

				2,742,302

Turkey 2.3%


Automobiles & Components 0.2%
Ford Otomotiv Sanayi A/S		90,000		658,441


Banks 0.3%
Turkiye Vakiflar Bankasi T.A.O., Class D *		384,000		1,032,420


Capital Goods 0.4%
Koc Holding A/S *		428,000		1,470,760


Diversified Financials 0.5%
Haci Omer Sabanci Holding A/S		363,111		1,566,963


Energy 0.3%
Tupras-Turkiye Petrol Rafinerileri A/S		49,000		1,113,020


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Eczacibasi Ilac Sanayi ve Ticaret A/S		108,247		200,304


Transportation 0.5%
Turk Hava Yollari Anonim Ortakligi		480,000		1,650,751

				7,692,659

United Kingdom 10.9%


Capital Goods 1.1%
Balfour Beatty plc		224,000		994,877
Carillion plc		100,000		495,649
Charter International plc		16,508		188,031
Meggitt plc		224,245		1,042,100
Melrose plc		297		992
Qinetiq Group plc		189,000		384,512
Travis Perkins plc *		66,500		827,301

				3,933,462


Commercial & Professional Supplies 0.2%
Homeserve plc		5,276		143,319
The Davis Service Group plc		88,000		564,134

				707,453


Consumer Durables & Apparel 0.1%
Persimmon plc *		58,000		410,576


Consumer Services 1.5%
Compass Group plc		339,500		2,710,294
Greene King plc		4,108		27,981
Millennium & Copthorne Hotel plc		74,000		545,353
Mitchells & Butlers plc *		108,000		520,379
Thomas Cook Group plc		308,000		1,261,735
Tui Travel plc		2,000		9,163

				5,074,905


Diversified Financials 1.0%
ICAP plc		170,000		963,676

42 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
London Stock Exchange Group plc		83,200		897,129
Man Group plc		385,488		1,411,113

				3,271,918


Food, Beverage & Tobacco 0.3%
Britvic plc		893		6,278
Tate & Lyle plc		156,000		1,074,712

				1,080,990


Insurance 1.3%
Aviva plc		220,000		1,285,208
Legal & General Group plc		1,374,000		1,832,178
Old Mutual plc *		781,760		1,452,343

				4,569,729


Materials 1.1%
Croda International plc		34,200		486,594
Johnson Matthey plc		41,400		1,099,017
Kazakhmys plc *		64,000		1,479,425
Petropavlovsk plc		120		2,166
Vedanta Resources plc		14,914		627,936

				3,695,138


Media 0.3%
WPP plc		89,505		926,180


Real Estate 0.9%
British Land Co. plc		202,000		1,472,379
Derwent London plc		28,800		597,295
Land Securities Group plc		94,225		968,868

				3,038,542


Retailing 1.2%
Home Retail Group plc		316,000		1,300,137
Inchcape plc *		1,659,000		742,085
Kesa Electricals plc		144,000		277,524
Kingfisher plc		532,000		1,732,154
Sports Direct International *		150,000		244,389

				4,296,289


Software & Services 0.3%
Dimension Data Holdings plc		20,665		28,594
Logica plc		510,000		1,056,453
The Sage Group plc		28,425		103,202

				1,188,249


Telecommunication Services 0.5%
BT Group plc		695,000		1,304,587
COLT Telecom Group S.A. *		160,000		308,662

				1,613,249


Transportation 0.8%
Arriva plc		55,000		611,558
easyJet plc *		128,023		892,496
FirstGroup plc		149,669		815,146
National Express Group plc		81,278		281,868

				2,601,068


Utilities 0.3%
Drax Group plc		43,474		246,706
Severn Trent plc		37,527		680,411

				927,117

				37,334,865

Total Common Stock (Cost $283,574,947)				328,981,330




Preferred Stock 1.7% of net assets

Brazil 1.7%
All America Latina Logistica		11,728		17,641
Braskem S.A., Class A *		77,600		571,195
Centrais Eletricas de Santa Catarina S.A., Class B		7,200		148,951
Companhia de Transmissao de Energia Eletrica Paulista		14,000		368,825
Companhia Energetica de Minas Gerais		37,000		614,187
Companhia Paranaense de Energia-Copel, Class B		45,000		921,332
Confab Industrial S.A.		114,000		303,214
Gerdau S.A.		22,200		360,773
Tele Norte Leste Participacoes S.A.		48,800		864,671
Telecomunicacoes de Sao Paulo S.A.		16,900		365,968
Telemar Norte Leste S.A., Class A		15,000		422,667
Usinas Siderurgicas de Minas Gerais S.A., Class A		12,900		441,908
Vivo Participacoes S.A.		16,300		442,708

Total Preferred Stock (Cost $4,934,666)				5,844,040




Other Investment Company 1.5% of net assets

United States 1.5%
State Street Institutional Liquid Reserves Fund - Institutional Class		5,003,383		5,003,383

Total Other Investment Company (Cost $5,003,383)				5,003,383



End of Investments.

At 03/31/10, the tax basis cost of the fund’s investments was $298,040,306 and the unrealized appreciation and depreciation were $49,285,460 and ($7,497,013), respectively, with a net unrealized appreciation of $41,788,447.

At 03/31/10, the values of certain foreign securities held by the fund aggregating $288,097,517 were adjusted from their closing market values following the guidelines adopted by the fund’s board of trustees.


*		Non-income producing security.
(a)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b)		Illiquid security. At the period end, the value of these amounted to $2,201,183 or 0.6% of net assets.

See financial notes 43

Laudus Rosenberg International Discovery Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $293,512,996)		$339,828,753
Foreign currency, at value (cost $2,824,947)		2,836,465
Receivables:
Investments sold		9,051,374
Dividends		1,451,352
Fund shares sold		409,091
Foreign tax reclaims		76,162
Interest		166
Prepaid expenses	+	7,750

Total assets		353,661,113

Liabilities

Payables:
Investments bought		10,975,840
Foreign capital gains tax expense		399,471
Fund shares redeemed		331,645
Investment adviser fees		30,243
Distribution and shareholder services fees		7,228
Due to custodian		7,062
Trustee’s retirement plan		1,489
Trustees’ fees		8
Accrued expenses	+	300,857

Total liabilities		12,053,843

Net Assets

Total assets		353,661,113
Total liabilities	−	12,053,843

Net assets		$341,607,270

Net Assets by Source
Capital received from investors		421,440,261
Distribution in excess of net investment income		(244,510	)
Net realized capital losses		(125,520,973	)
Net unrealized capital gains		45,932,492

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$33,741,191		3,582,283			$9.42
Select Shares	$307,866,079		32,711,809			$9.41

See financial notes 45

Laudus Rosenberg International Discovery Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends (net of foreign withholding taxes of $672,271)		$7,612,486
Interest	+	15,938

Total investment income		7,628,424

Expenses

Investment adviser fees		3,096,725
Transfer agent fees		978,569
Custodian fees		324,308
Distribution and shareholder services fees (Investor Shares )		96,130
Accounting and administration fees		91,669
Professional fees		84,920
Sub-Accounting fees (Investor Shares )		53,145
Shareholder reports		46,863
Registration fees		43,801
Trustees’ fees		33,711
Interest expense		667
Other expenses	+	121,936

Total expenses		4,972,444
Expense reduction by adviser	−	656,228
Custody credits	−	20

Net expenses	−	4,316,196

Net investment income		3,312,228

Realized and Unrealized Gains (Losses)

Net realized gains on investments		29,256,703
Net realized gains on foreign currency transactions	+	203,839

Net realized gains		29,460,542
Net unrealized gains on investments		97,213,931
Net unrealized gains on foreign currency translations	+	99,049

Net unrealized gains	+	97,312,980

Net realized and unrealized gains		126,773,522

Net increase in net assets resulting from operations		$130,085,750

46 See financial notes

Laudus Rosenberg International Discovery Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10			4/1/08-3/31/09
Net investment income		$3,312,228		$5,024,487
Net realized gains (losses)		29,460,542		(144,694,628	)
Net unrealized gains (losses)	+	97,312,980		(45,108,614	)

Increase (Decrease) in net assets from operations		130,085,750		(184,778,755	)

Distributions to Shareholders¹

Distributions from net investment income
Investor Shares		501,290		887,943
Select Shares	+	5,036,432		4,211,558

Total distributions from net investment income		$5,537,722		$5,099,501

Transactions in Fund Shares¹


		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			368,299		$2,880,539			2,380,148		$24,115,172
Select Shares	+		12,143,455		100,164,444			32,278,723		280,376,112

Total shares sold			12,511,754		$103,044,983			34,658,871		$304,491,284


Shares Reinvested
Investor Shares			49,935		$441,426			85,708		$580,245
Select Shares	+		442,053		3,903,332			549,064		3,711,673

Total shares reinvested			491,988		$4,344,758			634,772		$4,291,918


Shares Redeemed
Investor Shares			(2,469,585	)	($20,779,533	)		(7,502,921	)	($56,218,275	)
Select Shares	+		(10,070,050	)	(85,747,050	)		(14,822,685	)	(108,063,780	)

Total shares redeemed			(12,539,635	)	($106,526,583	)		(22,325,606	)	($164,282,055	)

Net transactions in fund shares			464,107		$863,158			12,968,037		$144,501,147

Shares Outstanding and Net Assets

		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			35,829,985		$216,196,084			22,861,948		$261,573,193
Total increase or decrease	+		464,107		125,411,186			12,968,037		(45,377,109	)

End of period			36,294,092		$341,607,270			35,829,985		$216,196,084


(Distribution in excess of net investment income)/Net investment income not yet distributed					($244,510	)				$816,458


¹		Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.

See financial notes 47

Laudus Rosenberg International Small Capitalization Fund

Financial Statements

Financial Highlights


	4/1/09–			4/1/08–			4/1/07–			4/1/06–			4/1/05–
Investor Shares	3/31/10			3/31/09			3/31/08			3/31/07			3/31/06


Per-Share Data ($)

Net asset value at beginning of period		7.79			16.74			22.38			20.74			16.73

Income (loss) from investment operations:
Net investment income (loss)		0.11	¹		0.32			0.36			0.20			0.08
Net realized and unrealized gains (losses)		4.19			(9.06	)		(2.60	)		3.82			4.89

Total from investment operations		4.30			(8.74	)		(2.24	)		4.02			4.97
Less distributions:
Distributions from net investment income		(0.27	)		(0.21	)		(0.63	)		(0.30	)		(0.04	)
Distributions from net realized gains		—			—			(2.77	)		(2.08	)		(0.92	)

Total distributions		(0.27	)		(0.21	)		(3.40	)		(2.38	)		(0.96	)

Net asset value at end of period		11.82			7.79			16.74			22.38			20.74

Total return (%)		55.44			(52.40	)		(10.27	)		20.35			30.48

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.66			1.49			1.45			1.47			1.60
Gross operating expenses		1.66			1.49			1.45			1.47			1.60
Net investment income (loss)		1.07			2.05			1.55			0.87			0.42
Portfolio turnover rate		100			79			105			92			102
Net assets, end of period ($ x 1,000)		141,185			147,608			523,709			882,163			804,340


	4/1/09–			4/1/08²–			4/1/07–			4/1/06–			4/1/05–
Select Shares	3/31/10			3/31/09			3/31/08			3/31/07			3/31/06


Per-Share Data ($)

Net asset value at beginning of period		7.87			16.97			22.67			20.97			16.89

Income (loss) from investment operations:
Net investment income (loss)		0.15	¹		0.30			0.34			0.26			0.13
Net realized and unrealized gains (losses)		4.24			(9.12	)		(2.55	)		3.90			4.95

Total from investment operations		4.39			(8.82	)		(2.21	)		4.16			5.08
Less distributions:
Distributions from net investment income		(0.32	)		(0.28	)		(0.73	)		(0.38	)		(0.08	)
Distributions from net realized gains		—			—			(2.76	)		(2.08	)		(0.92	)

Total distributions		(0.32	)		(0.28	)		(3.49	)		(2.46	)		(1.00	)

Net asset value at end of period		11.94			7.87			16.97			22.67			20.97

Total return (%)		56.01			(52.20	)		(9.97	)		20.82			30.90

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.26			1.11			1.09			1.10			1.25
Gross operating expenses		1.26			1.11			1.09			1.10			1.25
Net investment income (loss)		1.41			2.39			1.87			1.21			0.85
Portfolio turnover rate		100			79			105			92			102
Net assets, end of period ($ x 1,000)		199,576			195,990			612,703			1,048,829			698,064

¹ Calculated based on the average shares outstanding during the period.

² Effective July 31, 2008, the Institutional Shares class was redesignated as Select Shares.

48 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings as of March 31, 2010


				Cost		Value
Holdings by Category				($)		($)

	96	.4%	Common Stock		305,684,571		328,456,176
	0	.5%	Preferred Stock		1,452,345		1,697,692
		—%	Rights		1,359		33,228


	96	.9%	Total Investments		307,138,275		330,187,096
	5	.2%	Collateral Invested for Securities on Loan		17,719,621		17,719,621
	(2	.1)%	Other Assets and Liabilities, Net				(7,145,637	)


	100	.0%	Net Assets				340,761,080


	Number		Value
Security	of Shares		($)

Common Stock 96.4% of net assets

Australia 5.1%


Banks 0.1%
RHG Ltd. *		285,107		159,608


Capital Goods 0.4%
Boart Longyear Group *		886,300		271,825
Bradken Ltd.		32,578		228,687
Crane Group Ltd.		7,339		60,265
Emeco Holdings Ltd.		616,300		344,818
Hills Industries Ltd.		75,950		183,787
Macmahon Holdings Ltd.		583,800		390,367
NRW Holdings Ltd.		18,209		29,193
RCR Tomlinson Ltd.		6,152		6,791

				1,515,733


Commercial & Professional Supplies 0.7%
Credit Corp. Group Ltd.		32,965		81,714
Decmil Group Ltd. *		53,356		77,802
Downer EDI Ltd.		126,500		875,818
MAC Services Group Ltd.		24,619		59,865
Mineral Resources Ltd.		52,600		358,365
PMP Ltd. *		11,128		7,199
Salmat Ltd.		52,982		206,137
Spotless Group Ltd.		224,117		584,934

				2,251,834


Consumer Durables & Apparel 0.2%
G.U.D. Holdings Ltd.		55,445		471,041
McPherson’s Ltd.		58,438		166,884

				637,925


Consumer Services 0.3%
Flight Centre Ltd.		46,810		899,695


Energy 0.7%
Beach Energy Ltd.		1,086,500		738,075
Centennial Coal Co., Ltd.		254,700		994,085
Whitehaven Coal Ltd.		172,300		811,969

				2,544,129


Food, Beverage & Tobacco 0.3%
Goodman Fielder Ltd.		853,700		1,117,881


Health Care Equipment & Services 0.4%
Australian Pharmaceutical Industries Ltd.		127,865		70,964
Healthscope Ltd. (a)		15,300		62,001
iSOFT Group Ltd. (a)		717,381		371,749
Primary Health Care Ltd.		94,400		385,382
Sigma Pharmaceuticals Ltd.		1,037,200		442,581

				1,332,677


Materials 0.6%
Gunns Ltd.		469,000		206,246
Minara Resources Ltd. *		333,000		287,114
Mount Gibson Iron Ltd. *		614,200		1,052,373
Panoramic Resources Ltd.		181,800		400,005
Resolute Mining Ltd. *		63,900		58,232

				2,003,970


Media 0.4%
Amalgamated Holdings Ltd.		98,998		515,457
Austereo Group Ltd.		205,600		323,047
Photon Group Ltd.		62,600		64,598
Southern Cross Media Group Ltd.		284,523		565,103
Village Roadshow Ltd.		16,942		38,427

				1,506,632


Real Estate 0.3%
AVJennings Ltd. *		10,083		4,436
Charter Hall Retail REIT		774,400		397,545
ING Industrial Fund		1,446,357		589,225

				991,206


Retailing 0.6%
Automotive Holdings Group Ltd.		163,600		390,200
Pacific Brands Ltd. *		903,200		1,097,492
Specialty Fashion Group Ltd.		154,629		215,947
Super Cheap Auto Group Ltd.		60,553		297,318
Thorn Group Ltd.		98,900		101,507

				2,102,464


Software & Services 0.1%
SMS Management & Technology Ltd.		60,917		362,365
UXC Ltd.		164,500		76,873

				439,238

				17,502,992

Austria 0.3%


Real Estate 0.3%
Conwert Immobilien Invest SE		90,421		1,122,487

See financial notes 49

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Belgium 2.1%


Capital Goods 0.0%
Societe Anonyme Belge de Constructions Aeronautques		681		16,271


Food & Staples Retailing 0.9%
Delhaize Group		37,200		2,985,667


Health Care Equipment & Services 0.1%
Omega Pharma S.A. *		8,081		401,786


Materials 0.1%
Solvay S.A.		4,258		437,105


Retailing 1.0%
S.A. D’Ieteren N.V.		6,320		3,196,106

				7,036,935

Bermuda 0.0%


Consumer Durables & Apparel 0.0%
Lerado Group (Holding) Co., Ltd.		42,000		6,491
Tak Sing Alliance Holdings Ltd.		40,000		6,021

				12,512


Materials 0.0%
China Oriental Group Co., Ltd. *		214,000		85,039

				97,551

Canada 8.3%


Automobiles & Components 0.2%
Linamar Corp.		42,140		789,982


Banks 0.2%
Home Capital Group, Inc.		14,100		600,151


Capital Goods 0.0%
Toromont Industries Ltd.		4,500		131,546


Commercial & Professional Supplies 0.3%
Stantec, Inc. *		9,400		244,429
Transcontinental, Inc., Class A		59,400		797,146

				1,041,575


Consumer Services 0.0%
Keystone North America, Inc.		225		7,636


Diversified Financials 0.2%
Dundee Corp., Class A *		56,700		772,636


Energy 1.9%
Advantage Oil & Gas Ltd. *		107,400		727,526
AltaGas Income Trust		38,000		688,426
Bankers Petroleum Ltd. *		10,000		90,189
Enerplus Resources Fund		26,900		637,506
Ensign Energy Services, Inc.		9,800		141,840
Freehold Royalty Trust		31,700		528,724
Mullen Group Ltd.		55,500		876,503
Nuvista Energy Ltd. (a)		68,500		785,728
Paramount Resources Ltd., Class A *		39,200		654,974
Progress Energy Resources Corp. (a)		26,200		303,622
Provident Energy Trust		103,100		799,909
ShawCor Ltd., Class A		13,000		360,183
Trican Well Service Ltd.		800		10,350

				6,605,480


Food & Staples Retailing 0.1%
Alimentation Couche-Tard, Inc., Class B		7,900		143,976


Food, Beverage & Tobacco 0.2%
Maple Leaf Foods, Inc.		62,900		639,745


Health Care Equipment & Services 0.0%
SXC Health Solutions Corp. *		700		47,397


Materials 2.8%
Canfor Corp. *		71,100		661,542
Cascades, Inc.		87,800		705,408
CCL Industries, Inc., Class B		26,030		723,504
FNX Mining Co., Inc. *		9,360		125,058
Gammon Gold, Inc. *		98,600		705,777
Golden Star Resources Ltd. *		54,314		208,026
HudBay Minerals, Inc. *		2,400		30,034
Inmet Mining Corp.		10,600		615,868
Lundin Mining Corp. *		172,070		913,166
Methanex Corp.		5,100		123,527
New Gold, Inc. *		169,300		728,441
Northgate Minerals Corp. *		62,710		188,318
PAN American Silver Corp.		47,300		1,088,834
Quadra Mining Ltd. *		54,700		837,478
Red Back Mining, Inc. *		26,400		539,359
Sherritt International Corp.		74,600		592,011
West Fraser Timber Co., Ltd.		21,100		802,533

				9,588,884


Media 1.0%
Astral Media, Inc.		25,000		876,286
Cogeco Cable, Inc.		18,500		751,913
Corus Entertainment, Inc., Class B		41,300		807,173
Quebecor, Inc., Class B		25,000		851,179

				3,286,551


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Biovail Corp.		11,300		189,029


Real Estate 0.4%
Calloway Real Estate Investment Trust		36,300		758,059
MI Developments, Inc., Class A		55,900		731,464

				1,489,523


Retailing 0.2%
Leon’s Furniture Ltd.		30,010		384,414
RONA, Inc. *		6,200		93,643

				478,057


Software & Services 0.2%
CGI Group, Inc., Class A *		38,200		571,693
MacDonald, Dettwiler & Associates Ltd. *		100		3,717
Open Text Corp. *		4,600		219,345

				794,755


Technology Hardware & Equipment 0.3%
Celestica, Inc. *		89,100		973,770


Utilities 0.2%
ATCO Ltd., Class I		12,300		617,029

				28,197,722

50 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Cayman Islands 0.1%


Materials 0.0%
Xingda International Holdings Ltd.		367,000		203,027


Technology Hardware & Equipment 0.1%
Kingboard Chemical Holdings Ltd.		52,000		236,217

				439,244

China 0.5%


Consumer Durables & Apparel 0.2%
Weiqiao Textile Co., Ltd., Class H		927,000		733,864


Technology Hardware & Equipment 0.0%
Great Wall Technology Co., Ltd., Class H		6,000		2,594


Transportation 0.3%
Sichuan Expressway Co., Ltd., Class H		1,492,000		882,954

				1,619,412

Denmark 1.5%


Banks 1.1%
Ostjydsk Bank A/S *		658		49,163
Sydbank A/S *		131,216		3,510,849

				3,560,012


Capital Goods 0.1%
Schouw & Co., A/S (a)		8,707		201,774


Food, Beverage & Tobacco 0.3%
East Asiatic Co., Ltd. A/S (a)		36,842		1,149,581

				4,911,367

Finland 1.7%


Food, Beverage & Tobacco 0.1%
HKScan Oyj, A Shares		28,755		385,974


Materials 0.7%
Huhtamaki Oyj (a)		209,207		2,279,679


Software & Services 0.9%
Tieto Oyj (a)		141,009		3,264,099

				5,929,752

France 6.8%


Automobiles & Components 1.0%
Montupet *		5,831		30,873
Valeo S.A. *		90,000		3,208,111

				3,238,984


Capital Goods 1.3%
Faiveley Transport		5,523		450,770
Ginger (Groupe Ingenierie Europe)		8,834		213,804
Legrand S.A.		104,800		3,309,448
Lisi		2,915		165,725
Securidev S.A.		356		9,460
Zodiac Aerospace		4,169		205,117

				4,354,324


Commercial & Professional Supplies 0.1%
GL Events S.A.		13,433		359,403


Consumer Durables & Apparel 0.6%
Nexity		56,316		2,213,181


Consumer Services 0.1%
Pierre & Vacances		3,129		235,666


Materials 0.8%
Rhodia S.A. *		129,382		2,671,680


Media 1.7%
Lagardere S.C.A.		107,118		4,329,953
M6 Metropole Television		2,776		71,657
Publicis Groupe		33,300		1,423,159
Spir Communication *		2,944		81,037

				5,905,806


Software & Services 1.1%
Altran Technologies S.A. (a)*		100,575		542,435
Cegid Group		1,598		47,583
ESI Group *		9,000		121,039
GFI Informatique		55,536		227,111
Groupe Steria S.C.A.		86,239		2,671,108
Sopra Group		2,789		199,726

				3,809,002


Technology Hardware & Equipment 0.1%
GEA		1,859		100,347
HF Co.		11,710		245,298

				345,645


Telecommunication Services 0.0%
Afone *		776		7,622

				23,141,313

Germany 4.5%


Banks 0.2%
Aareal Bank AG *		23,492		512,012


Capital Goods 1.6%
Bilfinger Berger AG		19,141		1,275,469
Gildemeister AG		33,066		443,880
MTU Aero Engines Holding AG		61,800		3,594,706
Muehlbauer Holding AG & Co.		5,460		157,815
Westag & Getalit AG		2,631		55,098

				5,526,968


Commercial & Professional Supplies 0.0%
Amadeus Fire AG		5,097		129,424


Food, Beverage & Tobacco 0.1%
Frosta AG		3,380		86,295
Sektkellerei Schloss Wachenheim AG *		21,039		264,556

				350,851


Health Care Equipment & Services 0.7%
Fresenius SE		32,365		2,409,465


Insurance 0.5%
Hannover Rueckversicherung AG - Reg’d *		33,002		1,627,197


Media 0.1%
Advanced Inflight Allianz AG		92,000		342,586

See financial notes 51

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Analytik Jena AG *		23,000		318,416


Semiconductors & Semiconductor Equipment 0.2%
Infineon Technologies AG *		103,078		713,862


Software & Services 0.3%
Bechtle AG		15,839		487,104
REALTECH AG		2,659		29,773
syzygy AG		43,243		210,262
United Internet AG - Reg’d *		26,772		406,222

				1,133,361


Technology Hardware & Equipment 0.6%
ADVA AG Optical Networking *		246,241		1,447,745
Euromicron AG		25,932		638,935

				2,086,680


Transportation 0.1%
D. Logistics AG		131,219		213,242
Sixt AG		1,869		59,679

				272,921

				15,423,743

Greece 0.0%


Banks 0.0%
Bank of Greece		86		5,236

Hong Kong 2.4%


Capital Goods 0.0%
Miramar Hotel & Investment Co., Ltd.		60,000		64,101


Consumer Durables & Apparel 0.3%
Alco Holdings Ltd.		16,000		5,724
Fountain Set (Holdings) Ltd. *		462,000		78,356
Stella International Holdings Ltd.		14,000		28,614
Texwinca Holdings Ltd.		824,000		908,007

				1,020,701


Diversified Financials 0.1%
Allied Group Ltd.		49,291		141,570
Allied Properties (H.K.) Ltd. *		1,128,000		235,142
Sun Hung Kai & Co., Ltd.		15,000		11,836

				388,548


Food, Beverage & Tobacco 0.1%
Pacific Andes Resources Development Ltd. (a)		1,117,000		279,540


Insurance 0.0%
Asia Financial Holdings Ltd.		436,000		170,095


Real Estate 1.0%
Champion Real Estate Investment Trust		946,000		451,609
Great Eagle Holdings Ltd.		298,000		835,525
GZI Real Estate Investment Trust		92,000		39,078
HKR International Ltd.		878,400		364,827
Hon Kwok Land Investment Co., Ltd.		394,000		137,387
Hopson Development Holdings Ltd.		218,000		351,432
New World China Land Ltd.		213,600		76,092
Pacific Century Premium Developments Ltd. *		931,000		347,364
Sinolink Worldwide Holdings Ltd.		2,136,000		362,468
Sunlight Real Estate Investment Trust		20,000		4,942
Wheelock Properties Ltd.		740,000		473,059

				3,443,783


Retailing 0.2%
Aeon Stores (Hong Kong) Co., Ltd.		4,000		6,903
Chow Sang Sang Holdings International Ltd.		164,000		225,832
Dah Chong Hong Holdings Ltd.		250,000		167,837
Wing On Co. International Ltd.		214,500		310,943

				711,515


Technology Hardware & Equipment 0.1%
Digital China Holdings Ltd.		119,000		201,748


Telecommunication Services 0.1%
Asia Satellite Telecommunications Holdings Ltd.		149,000		216,741
Citic 1616 Holdings Ltd.		84,000		28,426

				245,167


Transportation 0.4%
Road King Infrastructure Ltd.		348,000		286,520
Transport International Holdings Ltd.		279,600		972,102

				1,258,622


Utilities 0.1%
Towngas China Co., Ltd.		629,000		303,370

				8,087,190

Ireland 1.8%


Capital Goods 1.0%
DCC plc		134,320		3,481,489


Materials 0.8%
Smurfit Kappa Group plc *		312,644		2,598,347

				6,079,836

Italy 2.2%


Capital Goods 0.9%
Danieli S.p.A. - Officine Meccaniche Danieli & C. (a)		121,268		3,249,633
Irce S.p.A.		12,310		23,017

				3,272,650


Consumer Durables & Apparel 0.7%
Benetton Group S.p.A.		272,984		2,261,772


Consumer Services 0.1%
Autogrill S.p.A. *		24,496		298,120


Health Care Equipment & Services 0.1%
El.En. S.p.A.		15,350		260,224


Materials 0.3%
Cementir Holding S.p.A.		209,188		838,928
Italmobiliare S.p.A. *		2,169		90,396

				929,324


Real Estate 0.0%
Immobiliare Grande Distribuzione		57,664		116,719


Software & Services 0.1%
Buongiorno S.p.A. *		271,816		400,753

52 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Transportation 0.0%
Autostrada Torino-Milano S.p.A.		4,731		66,446

				7,606,008

Japan 19.2%


Automobiles & Components 1.7%
Aichi Machine Industry Co., Ltd.		3,000		12,434
Aisan Industry Co., Ltd.		4,200		38,606
Fuji Oozx, Inc.		1,000		2,971
Fujikura Rubber Ltd.		500		2,072
HI-LEX Corp.		53,200		676,094
Kikuchi Co., Ltd.		300		5,466
NGK SPARK PLUG Co., Ltd.		52,000		708,338
Nihon Plast Co., Ltd.		12,000		55,641
Nippon Seiki Co., Ltd.		38,000		449,836
Nishikawa Rubber Co., Ltd.		3,000		24,067
Nissan Shatai Co., Ltd.		86,000		686,981
Nittan Valve Co., Ltd.		8,300		30,101
Piolax, Inc.		6,100		136,677
SNT Corp.		12,200		34,356
SOFT99 Corp.		29,400		185,086
Suncall Corp.		48,000		217,765
Takata Corp.		27,400		703,492
The Yokohama Rubber Co., Ltd.		33,000		155,715
Tigers Polymer Corp.		8,500		33,263
Tokai Rubber Industries Ltd.		19,100		261,657
Topre Corp.		60,000		477,519
Toyo Tire & Rubber Co., Ltd. *		7,000		16,363
TS Tech Co., Ltd.		32,900		617,607
Univance Corp. *		8,100		22,969
Yachiyo Industry Co., Ltd.		100		959
Yorozu Corp.		14,000		191,546
YUTAKA GIKEN Co., Ltd.		100		2,567

				5,750,148


Banks 1.3%
Aichi Bank Ltd.		15,100		1,221,826
The Bank of Nagoya Ltd.		81,000		329,742
The Chiba Kogyo Bank Ltd. *		49,900		390,957
The Eighteenth Bank Ltd.		186,000		559,995
The Higashi-Nippon Bank Ltd.		356,000		747,203
The Mie Bank Ltd.		79,000		219,094
The San-in Godo Bank Ltd.		94,000		784,589
The Taiko Bank Ltd.		49,000		110,220

				4,363,626


Capital Goods 3.7%
Aichi Electric Co., Ltd.		3,000		7,117
Aida Engineering Ltd.		121,300		506,947
Amano Corp.		44,600		406,407
C-Cube Corp.		43,200		123,435
Chodai Co., Ltd.		15,500		41,465
Chudenko Corp.		55,100		703,500
CTI Engineering Co., Ltd.		19,700		104,367
DAIHEN Corp.		2,000		9,520
Daiwa Industries Ltd.		9,000		45,182
Denkyosha Co., Ltd.		20,000		90,701
Fujikura Ltd.		164,000		946,418
Fujitec Co., Ltd.		127,000		755,322
Fukushima Industries Corp.		14,200		134,802
Furusato Industries Ltd.		23,000		162,150
Futaba Corp.		25,200		498,347
Hino Motors Ltd.		8,000		33,826
Hitachi Metals Techno Ltd.		500		2,070
IHI Transport Machinery Co., Ltd.		42,000		183,104
Inabata & Co., Ltd.		900		4,251
Japan Pulp & Paper Co., Ltd.		126,000		451,810
Kamei Corp.		59,000		292,472
Kanaden Corp.		44,000		233,465
Kawada Technologies, Inc. *		400		6,972
Koatsu Kogyo Co., Ltd.		11,000		21,767
Maeda Corp.		74,000		220,309
Marufuji Sheet Piling Co., Ltd.		29,000		48,430
Minebea Co., Ltd.		104,000		633,594
Mitani Corp.		28,100		164,748
Mitsui Engineering & Shipbuilding Co., Ltd. (a)		249,000		621,501
NEC Networks & System Integration Corp.		22,600		299,741
Nihon Decoluxe Co., Ltd.		4,000		25,885
Nishio Rent All Co., Ltd.		3,700		27,188
Nissei Plastic Industrial Co., Ltd. *		28,700		101,720
Nitta Corp.		700		11,172
Nitto Kogyo Corp.		53,300		557,668
Noritz Corp.		48,800		752,430
NTN Corp.		42,000		189,995
Ohmoto Gumi Co., Ltd.		34,000		114,996
Onoken Co., Ltd.		2,800		25,231
Sansei Yusoki Co., Ltd.		27,000		126,001
Sanso Electric Co., Ltd. *		15,000		31,087
Sanyo Engineering & Construction, Inc.		12,000		41,099
Seibu Electric Industry Co., Ltd.		30,000		117,458
Sekisui Jushi Corp.		15,000		129,824
Senshu Electric Co., Ltd.		13,800		144,797
ShinMaywa Industries Ltd.		173,000		640,811
Solcom Co., Ltd.		1,000		2,642
Sugimoto & Co., Ltd.		2,600		24,490
Sumikin Bussan Corp.		37,000		84,749
Tadano Ltd.		11,000		59,583
Taisei Oncho Co., Ltd.		24,000		91,115
Totech Corp.		18,000		52,895
Toto Ltd.		58,000		395,764
Trinity Industrial Corp.		1,000		3,781
Tsurumi Manufacturing Co., Ltd.		11,000		77,416
Uehara Sei Shoji Co., Ltd.		31,000		117,404
Wakita & Co., Ltd.		56,000		223,517
Yamabiko Corp.		14,000		172,517
Yondenko Corp.		5,000		23,315
Yurtec Corp.		64,000		323,992

				12,444,282


Commercial & Professional Supplies 0.2%
Daiohs Corp.		100		533
FujiStaff Holdings, Inc.		23		3,027
Kawanishi Warehouse Co., Ltd.		7,000		44,288
Kimura Unity Co., Ltd.		700		5,902
Mitsubishi Pencil Co., Ltd.		7,000		104,049
Sohgo Security Services Co., Ltd.		7,400		85,776
Temp Holdings Co., Ltd. (a)		2,000		16,198
Toppan Forms Co., Ltd.		24,700		272,984
Wesco, Inc.		12,600		22,787

				555,544

See financial notes 53

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Consumer Durables & Apparel 2.0%
Charle Co., Ltd.		3,400		11,604
Cleanup Corp.		15,900		131,025
Corona Corp.		27,200		346,278
Fujishoji Co., Ltd.		33		31,773
Fujix Ltd.		11,000		31,298
Funai Electric Co., Ltd.		14,100		594,929
Heiwa Corp.		35,500		365,119
Ichikawa Co., Ltd.		47,000		88,082
Kurabo Industries Ltd.		382,000		649,263
Maruzen Co., Ltd.		10,000		56,234
Mitsui Home Co., Ltd.		4,000		21,914
NAMCO BANDAI Holdings, Inc.		74,600		727,555
Pioneer Corp. *		121,000		444,687
Roland Corp.		43,100		517,571
Sanei-International Co., Ltd.		27,100		368,240
Sega Sammy Holdings, Inc.		67,800		821,460
SRI Sports Ltd.		459		437,555
Tachikawa Corp.		27,600		128,499
Tamron Co., Ltd.		8,700		145,975
The Japan Wool Textile Co., Ltd.		2,000		15,576
Tokyo Style Co., Ltd.		115,000		800,287
Yamato International, Inc.		9,300		34,823
Zojirushi Corp.		44,000		101,190

				6,870,937


Consumer Services 0.3%
Eikoh, Inc.		5,200		22,410
Hurxley Corp.		3,000		20,630
Ichishin Co., Ltd.		16,500		42,641
Nippon Game Card Corp.		113		130,632
Nissin Healthcare Food Service Co., Ltd.		25,600		328,811
Shidax Corp. (a)		52,900		209,469
Shingakukai Co., Ltd.		30,800		106,174

				860,767


Diversified Financials 0.0%
Daiko Clearing Services Corp. (a)		3,400		14,578
IBJ Leasing Co., Ltd.		700		13,984

				28,562


Food & Staples Retailing 0.6%
Allied Hearts Holdings Co., Ltd.		2,000		22,744
Cawachi Ltd.		32,400		621,353
Create S.D. Co., Ltd.		7,100		133,125
Itochu-Shokuhin Co., Ltd.		2,200		69,768
Kato Sangyo Co., Ltd.		10,200		167,390
Kirindo Co., Ltd.		7,300		31,477
Marukyo Corp.		8,000		41,408
Maxvalu Nishinihon Co., Ltd.		6,900		98,208
Okuwa Co., Ltd		2,000		20,156
Satoh & Co., Ltd.		100		948
Shoei Foods Corp.		2,000		11,063
Uny Co., Ltd.		24,500		202,947
Valor Co., Ltd.		84,800		692,530

				2,113,117


Food, Beverage & Tobacco 0.8%
Coca-Cola Central Japan Co., Ltd.		2,900		35,468
Fuji Foods, Inc.		6,000		23,546
MEIJI Holdings Co., Ltd. *		19,100		741,166
Mikuni Coca-Cola Bottling Co., Ltd.		67,300		532,150
Morinaga Milk Industry Co., Ltd.		217,000		854,941
Nichiwa Sangyo Co., Ltd.		32,000		78,427
Nippon Beet Sugar Manufacturing Co., Ltd.		34,000		82,943
Nissin Sugar Manufacturing Co., Ltd.		76,000		167,421
Oriental Yeast Co., Ltd.		12,000		58,154
Sonton Food Industry Co., Ltd.		29,000		218,338

				2,792,554


Health Care Equipment & Services 0.6%
BML, Inc.		31,700		801,108
Fukuda Denshi Co., Ltd. (a)		12,700		293,419
Hitachi Medical Corp.		58,000		495,599
JEOL Ltd.		12,000		46,244
Kawasumi Laboratories, Inc.		4,000		30,140
Medipal Holdings Corp.		2,300		27,269
N.I.C. Corp.		32,500		132,145
Nakanishi, Inc.		100		10,439
Tokiwa Yakuhin Co., Ltd.		12,000		33,640
Vital Ksk Holdings, Inc. *		16,500		107,710

				1,977,713


Household & Personal Products 0.0%
Artnature, Inc.		1,200		9,889


Materials 2.1%
Asahi Industries Co., Ltd.		94		184,372
Chubu Steel Plate Co., Ltd.		52,800		338,908
Japan Pmc		3,600		11,177
Koei Chemical Co., Ltd.		1,000		2,785
Kyoei Steel Ltd.		40,700		859,497
Mitsui Mining & Smelting Co., Ltd. *		264,000		791,981
Nichia Steel Works Ltd.		72,000		196,877
Nihon Kagaku Sangyo Co., Ltd.		16,000		110,657
Nihon Yamamura Glass Co., Ltd.		13,000		43,145
Nippon Shokubai Co., Ltd.		82,000		741,091
Nitto FC Co., Ltd.		6,000		31,665
Osaka Steel Co., Ltd.		41,400		659,876
Sakai Chemical Industry Co., Ltd.		23,000		112,029
SK Kaken Co., Ltd.		2,000		52,786
Sumitomo Bakelite Co., Ltd.		48,000		275,467
Teijin Ltd.		120,000		403,373
Tenma Corp.		41,500		482,651
Toagosei Co., Ltd.		171,000		728,523
Tokyo Tekko Co., Ltd.		50,000		152,467
Toyo Ink Mfg. Co., Ltd.		51,000		229,188
Toyo Kohan Co., Ltd.		114,000		688,832
Yodogawa Steel Works Ltd.		10,000		44,870

				7,142,217


Media 0.7%
Chubu-Nippon Broadcasting Co., Ltd.		800		4,270
Daiichikosho Co., Ltd.		72,800		939,180
RKB Mainichi Broadcasting Corp. (c)		18,000		150,369
SKY Perfect JSAT Holdings, Inc.		38		16,345
Toei Co., Ltd.		96,000		491,439
Tohokushinsha Film Corp.		21,200		124,377
TV Asahi Corp.		382		580,624

				2,306,604


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Nippon Shinyaku Co., Ltd.		1,000		11,338

54 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
Torii Pharmaceutical Co., Ltd.		38,900		763,476

				774,814


Real Estate 0.2%
AIRPORT FACILITIES Co., Ltd.		700		3,852
Heiwa Real Estate Co., Ltd.		6,000		18,056
Keihanshin Real Estate Co., Ltd.		8,500		40,487
Sankyo Frontier Co., Ltd.		37,000		79,502
Tokyu Land Corp.		168,000		643,062

				784,959


Retailing 1.3%
Alpen Co., Ltd.		2,600		41,572
AOKl Holdings, Inc.		57,000		764,404
AOYAMA TRADING Co., Ltd.		65,000		1,073,660
AT-Group Co., Ltd.		20,000		198,992
Belluna Co., Ltd.		77,150		327,633
EDION Corp. (a)		1,400		14,405
Haruyama Trading Co., Ltd.		21,800		100,619
Hikari Furniture Co., Ltd.		1,000		4,728
King Co., Ltd.		38,200		99,734
Kitamura Co., Ltd.		2,100		9,470
Kohnan Shoji Co., Ltd.		40,600		463,579
Ku Holdings Co., Ltd.		5,500		22,144
Mac House Co., Ltd.		8,900		40,646
NAFCO Co., Ltd.		40,100		735,413
Nagahori Corp.		25,000		57,760
Sazaby League Ltd.		32,500		486,531
Tokyo Derica Co., Ltd.		13,100		44,677
Warehouse Co., Ltd.		14,900		55,194

				4,541,161


Semiconductors & Semiconductor Equipment 0.1%
Mimasu Semiconductor Industry Co., Ltd.		1,100		16,449
Sanken Electric Co., Ltd. *		115,000		440,116
UKC Holdings Corp. *		100		1,337

				457,902


Software & Services 1.0%
eAccess Ltd.		1,198		875,730
Fujitsu Broad Solution & Consulting, Inc.		1,500		12,480
NEC Fielding Ltd.		68,100		923,438
Net One Systems Co., Ltd.		603		768,198
Nifty Corp.		223		174,111
So-net Entertainment Corp.		214		533,280

				3,287,237


Technology Hardware & Equipment 1.8%
Brother Industries Ltd.		3,700		44,818
Canon Finetech, Inc.		2,100		36,744
Daishinku Corp.		79,000		378,551
Eizo Nanao Corp.		23,300		575,033
Furuno Electric Co., Ltd.		1,100		5,208
Hagiwara Electric Co., Ltd.		10,300		73,881
Hakuto Co., Ltd.		39,700		386,241
Hosiden Corp.		71,900		942,970
I-O Data Device, Inc.		2,900		14,584
Japan Aviation Electronics Industry Ltd.		65,000		492,639
Japan Digital Laboratory Co., Ltd.		28,100		300,026
Katsuragawa Electric Co., Ltd.		3,000		8,675
Kitagawa Industries Co., Ltd.		9,700		113,575
MACNICA, Inc.		200		3,276
NEC Mobiling Ltd.		3,600		86,511
Nippon Antenna Co., Ltd.		3,200		23,614
OPTEX Co., Ltd.		400		4,816
Riso Kagaku Corp.		45,600		543,505
Ryoyo Electro Corp.		40,600		389,042
Shinko Shoji Co., Ltd.		15,400		133,056
Sumida Corp.		10,100		111,807
Topcon Corp.		4,900		27,125
Toshiba Tec Corp. *		203,000		804,483
Tsuzuki Densan Co., Ltd.		14,300		41,929
Yokogawa Electric Corp.		69,000		602,688

				6,144,797


Transportation 0.5%
Isewan Terminal Service Co., Ltd.		45,000		192,257
Keisei Electric Railway Co., Ltd.		98,000		597,108
Meiko Trans Co., Ltd.		25,000		198,740
Nippon Konpo Unyu Soko Co., Ltd.		16,000		181,252
Seino Holdings Co., Ltd.		93,000		663,220
Tokyo Kisen Co., Ltd.		1,000		4,066

				1,836,643


Utilities 0.1%
Hokuriku Gas Co., Ltd.		5,000		12,675
Keiyo Gas Co., Ltd.		49,000		221,179
Otaki Gas Co., Ltd.		12,000		59,015

				292,869

				65,336,342

Luxembourg 1.1%


Telecommunication Services 0.3%
COLT Telecom Group S.A. *		436,582		842,225


Transportation 0.8%
Stolt-Nielsen S.A.		175,283		2,878,202

				3,720,427

Malaysia 0.0%


Real Estate 0.0%
Rekapacific Berhad (b)(c)*		24,000		—

Netherlands 1.7%


Capital Goods 0.1%
Ballast Nedam N.V. CVA		15,484		280,089


Commercial & Professional Supplies 0.1%
Teleplan International N.V. *		99,301		308,581


Consumer Durables & Apparel 0.1%
Accell Group N.V.		3,624		179,417


Food, Beverage & Tobacco 0.5%
CSM *		53,400		1,657,081


Health Care Equipment & Services 0.0%
Mediq N.V.		5,083		93,606


Materials 0.8%
James Hardie Industries N.V. CDI *		1,600		10,659
Koninklijke DSM N.V. (a)		64,500		2,873,457

				2,884,116

See financial notes 55

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Media 0.0%
DOCdata N.V.		9,279		117,872


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Fornix Biosciences N.V.		14,744		175,175


Retailing 0.0%
Macintosh Retail Group N.V.		723		15,527

				5,711,464

New Zealand 0.2%


Transportation 0.2%
Air New Zealand Ltd.		871,400		785,596

Norway 0.2%


Energy 0.2%
TGS Nopec Geophysical Co., A.S.A. (a)*		27,060		575,753


Software & Services 0.0%
EDB Business Partner A.S.A. *		4,621		14,519

				590,272

Portugal 0.5%


Banks 0.4%
Banif, SGPS, S.A. - Reg’d		810,000		1,236,352


Capital Goods 0.0%
Teixeira Duarte-Engenharia e Construcoes S.A. *		1,786		2,556


Consumer Services 0.0%
Ibersol - SGPS, S.A.		5,875		63,877


Materials 0.0%
Corticeira Amorim, S.A. *		3,256		4,173


Software & Services 0.1%
Novabase, SGPS, S.A. *		52,394		304,294


Telecommunication Services 0.0%
Sonaecom, SGPS, S.A. *		66,550		143,426

				1,754,678

Republic of Korea 3.6%


Automobiles & Components 0.2%
Dong Ah Tire & Rubber Co., Ltd.		22,280		168,774
Halla Climate Control Corp.		36,060		433,326
SL Corp. *		10,920		81,810

				683,910


Banks 0.0%
Jinheung Mutual Savings Bank Co., Ltd.		38,880		138,467


Capital Goods 0.4%
CJ Corp.		9,170		546,276
Daesang Holdings Co., Ltd.		32,890		97,074
Dongbu Corp.		19,030		117,800
Doosan Engineering & Construction Co., Ltd.		28,900		156,902
Gaon Cable Ltd.		170		4,357
Hanshin Construction Co., Ltd.		5,130		61,216
KCC Engineering & Construction Co., Ltd.		5,303		134,047
Kyeryong Construction Industrial Co., Ltd.		5,510		99,049
Ssangyong Engineering & Construction Co., Ltd. *		11,446		77,622

				1,294,343


Consumer Durables & Apparel 0.3%
Kolon Corp.		1,089		29,615
Kolon Industries, Inc. *		2,800		114,826
Sam Kwang Glass Ind. Co., Ltd.		1,610		69,511
Youngone Corp. *		50,072		397,261
Youngone Holdings Co., Ltd.		12,518		337,554

				948,767


Diversified Financials 0.8%
Daishin Securities Co. *		60,560		841,967
Hanwha Securities Co., Ltd. *		59,670		425,022
NH Investment & Securities Co., Ltd. *		14,206		132,951
Shinyoung Securities Co., Ltd. *		12,833		424,338
Tong Yang Securities, Inc. *		60,000		556,264
Woori Investment & Securities Co., Ltd.		7,270		100,832
Yuhwa Securities Co., Ltd. *		10,300		134,782

				2,616,156


Food, Beverage & Tobacco 0.1%
Dongwon F&B Co., Ltd.		2,850		106,695
Namyang Dairy Products Co., Ltd.		530		250,139
Ottogi Corp.		1,223		140,517

				497,351


Household & Personal Products 0.1%
Pacific Corp.		4,183		487,610


Materials 1.3%
Hanwha Chemical Corp.		83,480		1,017,328
KISCO Corp.		5,100		179,278
KISWIRE Ltd.		4,100		148,565
Korea Zinc Co., Ltd.		5,140		916,776
KP Chemical Corp. *		45,700		330,825
KPX Holdings Corp.		3,710		207,231
Moorim Paper Co., Ltd.		3,630		26,724
SeAH Holdings Corp.		1,708		92,552
SeAH Steel Corp.		2,890		96,741
SK Chemicals Co., Ltd.		17,190		802,225
Young Poong Corp.		794		449,123

				4,267,368


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Daewoong Co., Ltd.		1,220		20,685
Green Cross Holdings Corp.		126		10,462
Jeil Pharmaceutical Co.		13,280		110,681

				141,828


Retailing 0.2%
CJ O Shopping Co., Ltd. *		2,880		183,211
Daegu Department Store Co., Ltd. *		10,350		109,733
GS Home Shopping, Inc.		3,840		236,477

				529,421


Technology Hardware & Equipment 0.0%
Daou Data Corp.		34,160		106,232

56 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.1%
LG Telecom Ltd.		52,575		358,717


Transportation 0.0%
Sebang Co., Ltd.		4,020		49,895


Utilities 0.1%
KyungDong City Gas Co., Ltd.		90		3,754
Seoul City Gas Co., Ltd.		1,413		63,038
YESCO Co., Ltd.		6,770		148,390

				215,182

				12,335,247

Singapore 1.5%


Capital Goods 0.5%
Gallant Venture Ltd. *		166,000		28,973
Haw Par Corp., Ltd.		164,000		699,751
Hi-P International Ltd.		274,000		124,224
Hong Leong Asia Ltd.		139,000		450,053
Low Keng Huat (Singapore) Ltd.		606,000		198,938
Tuan Sing Holdings Ltd. *		158,000		27,136

				1,529,075


Consumer Durables & Apparel 0.0%
HTL International Holdings Ltd.		27,000		15,523


Diversified Financials 0.4%
Hong Leong Finance Ltd.		87,000		188,935
Kim Eng Holdings Ltd.		352,513		508,406
UOB-Kay Hian Holdings Ltd.		527,850		637,349

				1,334,690


Food, Beverage & Tobacco 0.1%
Cerebos Pacific Ltd.		27,000		71,192
People’s Food Holdings Ltd. (a)		800,000		339,438

				410,630


Household & Personal Products 0.0%
GP Batteries International Ltd.		6,000		7,626


Real Estate 0.4%
Fortune REIT		19,000		8,731
Mapletree Logistics Trust		445,000		270,148
Singapore Land Ltd.		9,000		43,770
Soilbuild Group Holdings Ltd.		228,000		237,780
Starhill Global REIT		433,000		173,213
UOL Group Ltd.		249,000		693,115
Wheelock Properties (S) Ltd.		31,000		41,807
Wing Tai Holdings Ltd.		8,000		10,331

				1,478,895


Retailing 0.1%
Metro Holdings Ltd.		306,000		180,114


Technology Hardware & Equipment 0.0%
ECS Holdings Ltd.		113,000		53,258
Elec & Eltek International Co., Ltd.		12,000		29,126

				82,384

				5,038,937

South Korea 0.0%


Materials 0.0%
Dongbu Steel Co., Ltd.		4,730		46,203

Spain 4.0%


Banks 1.9%
Banco de Sabadell S.A. (a)		750,203		4,143,714
Banco Pastor S.A. (a)		9,807		56,898
Bankinter S.A.		266,000		2,216,983

				6,417,595


Capital Goods 1.6%
Construcciones y Auxiliar de Ferrocarriles S.A.		3,431		2,020,005
Fomento de Construcciones y Contratas S.A.		93,300		3,412,315

				5,432,320


Insurance 0.3%
Grupo Catalana Occidente S.A.		46,788		951,931


Materials 0.2%
Miquel y Costas & Miquel S.A.		40,750		924,655

				13,726,501

Sweden 3.6%


Capital Goods 1.6%
NCC AB, B Shares		136,076		2,370,972
Saab AB, B Shares		209,615		3,187,251
Trelleborg AB, B Shares		1,967		14,328

				5,572,551


Materials 1.0%
Boliden AB		226,048		3,229,547


Media 0.2%
Eniro AB *		187,059		592,984


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Biotage AB		178,800		185,378


Real Estate 0.2%
Fabege AB (a)		93,182		629,312
Klovern AB *		58,867		213,263

				842,575


Retailing 0.1%
Bilia AB, A Shares *		15,750		187,629


Software & Services 0.2%
Addnode AB		34,730		136,504
Industrial & Financial Systems AB, B Shares		23,779		303,430
Know IT AB		34,319		318,985

				758,919


Technology Hardware & Equipment 0.2%
Nolato AB, Class B (a)		80,049		808,991

				12,178,574

Switzerland 8.6%


Banks 1.0%
Banque Cantonale de Geneve		1,245		282,396
Banque Cantonale Vaudoise - Reg’d		6,679		3,118,146

				3,400,542


Capital Goods 0.4%
Bucher Industries AG - Reg’d		1,140		154,413

See financial notes 57

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
OC Oerlikon Corp. AG - Reg’d (a)*		7,981		271,253
Schindler Holding AG		157		13,811
Schindler Holding AG - Reg’d		2,032		176,405
Swisslog Holding AG - Reg’d		643,677		617,134

				1,233,016


Consumer Durables & Apparel 0.6%
AFG Arbonia-Forster Holding AG *		7,369		176,157
Forbo Holding AG - Reg’d		4,073		1,746,684

				1,922,841


Consumer Services 0.9%
Kuoni Reisen Holding AG - Reg’d		7,960		3,193,309


Diversified Financials 0.1%
Compagnie Financiere Tradition S.A.		2,724		307,892


Insurance 3.1%
Baloise Holding AG - Reg’d		44,800		3,973,202
Helvetia Patria Holding AG - Reg’d		8,459		2,975,316
Swiss Life Holding AG - Reg’d *		28,834		3,781,369

				10,729,887


Materials 1.1%
Clariant AG - Reg’d *		290,000		3,691,512
CPH Chemie & Papier Holding AG - Reg’d		102		157,992

				3,849,504


Real Estate 0.7%
Swiss Prime Site AG - Reg’d *		37,973		2,378,094
Zueblin Immobilien Holding AG - Reg’d *		2,949		13,350

				2,391,444


Retailing 0.2%
Valora Holding AG - Reg’d		2,184		565,752


Technology Hardware & Equipment 0.5%
Ascom Holding AG - Reg’d *		164,877		1,745,414

				29,339,601

United Kingdom 14.9%


Capital Goods 1.5%
Carr’s Milling Industries plc		27,358		188,897
Charter International plc		81,265		925,631
Galliford Try plc		116,734		566,331
Hampson Industries plc		301,124		276,307
Interserve plc		28,536		93,891
Morgan Sindall plc		204,602		1,692,134
Senior plc		190,535		319,207
Travis Perkins plc *		17,274		214,899
WSP Group plc		151,692		669,860

				4,947,157


Commercial & Professional Supplies 0.0%
Hogg Robinson Group plc		212,677		101,662


Consumer Services 2.5%
Millennium & Copthorne Hotel plc		413,000		3,043,658
Thomas Cook Group plc		852,000		3,490,254
William Hill plc		603,473		1,937,991

				8,471,903


Diversified Financials 0.8%
Tullett Prebon plc		483,713		2,564,062


Food, Beverage & Tobacco 0.5%
Britvic plc		230,480		1,620,253


Household & Personal Products 0.0%
Fiberweb plc		127,194		99,313


Insurance 1.0%
Beazley plc		3,920		6,451
Hardy Underwriting Bermuda Ltd.		236,357		1,040,147
Novae Group plc		15,977		71,705
Old Mutual plc *		1,238,774		2,301,377

				3,419,680


Materials 1.4%
DS Smith plc		287,249		587,436
Hill & Smith Holdings plc		115,430		602,321
Mondi plc		506,000		3,552,573

				4,742,330


Media 0.6%
4imprint plc		68,000		162,008
Chime Communications plc		229,025		622,912
Creston plc *		288,000		391,802
Trinity Mirror plc *		312,000		703,772

				1,880,494


Retailing 2.6%
Debenhams plc *		1,804,062		2,068,731
Game Group plc		932,596		1,392,910
HMV Group plc (a)		1,030,000		1,322,650
Home Retail Group plc		840,000		3,456,061
Inchcape plc *		1,655,947		740,719

				8,981,071


Software & Services 1.7%
Computacenter plc		486,681		2,270,574
Logica plc		1,696,000		3,513,225

				5,783,799


Technology Hardware & Equipment 0.1%
Oxford Instruments plc		58,450		238,597
Vislink plc		470,153		175,976

				414,573


Transportation 2.2%
Arriva plc		319,357		3,551,004
Braemar Shipping Services plc		64,440		435,671
Clarkson plc		14,765		194,931
FirstGroup plc		620,000		3,376,724

				7,558,330


Utilities 0.0%
Drax Group plc		18,841		106,919

				50,691,546

Total Common Stock (Cost $305,684,571)				328,456,176




Preferred Stock 0.5% of net assets

Germany 0.5%
Draegerwerk AG & Co. KGAA		16,048		1,117,524

58 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)
ProSiebenSat.1 Media AG		34,400		580,168

Total Preferred Stock (Cost $1,452,345)				1,697,692




Rights 0.0% of net assets

Republic of Korea 0.0%
Hanwha Securities Co., Ltd. (b)(c)*		14,463		31,957

Spain 0.0%
Banco Pastor S.A. *		9,807		1,271

Total Rights (Cost $1,359)				33,228



End of Investments.



Collateral Invested for Securities on Loan 5.2% of net assets


State Street Navigator Security Lending Prime Portfolio		17,719,621		17,719,621

Total Collateral Invested for Securities on Loan (Cost $17,719,621)				17,719,621



End of collateral invested for securities on loan.

At 03/31/10, the tax basis cost of the fund’s investments was $312,709,209 and the unrealized appreciation and depreciation were $42,159,775 and ($24,681,888), respectively, with a net unrealized appreciation of $17,477,887.

At 03/31/10, the values of certain foreign securities held by the fund aggregating $290,645,013 were adjusted from their closing market values 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)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)		Illiquid security. At the period end, the value of these amounted to $182,326 or 0.1% of net assets.


CDI —		CHESS Depositary Interest
CVA —		Dutch Certificate
Reg’d —		Registered
REIT —		Real Estate Investment Trust

See financial notes 59

Laudus Rosenberg International Small Capitalization Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value including securities on loan of $16,838,069 (cost $307,138,275)		$330,187,096
Foreign currency, at value (cost $2,503,469)		2,502,290
Collateral invested for securities on loan		17,719,621
Receivables:
Investments sold		11,318,998
Dividends		1,697,874
Foreign tax reclaims		433,899
Fund shares sold		197,778
Interest		404
Income from securities on loan	+	29,165

Total assets		364,087,125

Liabilities

Collateral held for securities on loan		17,719,621
Payables:
Investments bought		3,339,917
Due to custodian		1,393,652
Fund shares redeemed		270,767
Distribution and shareholder services fees		258,142
Investment adviser fees		28,009
Trustee’s retirement plan		13,749
Accrued expenses	+	302,188

Total liabilities		23,326,045

Net Assets

Total assets		364,087,125
Total liabilities	−	23,326,045

Net assets		$340,761,080

Net Assets by Source
Capital received from investors		717,214,466
Distribution in excess of net investment income		(1,367,761	)
Net realized capital losses		(398,172,446	)
Net unrealized capital gains		23,086,821

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	÷	Outstanding	=	NAV
Investor Shares	$141,185,212		11,948,935			$11.82
Select Shares	$199,575,868		16,718,465			$11.94

60 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Statement of

Operations

For April 1, 2009 through March 31, 2010.



Investment Income

Dividends (net of foreign withholding taxes of $979,491)		$10,656,051
Interest		22,286
Securities on loan	+	42,881

Total investment income		10,721,218

Expenses

Investment adviser fees		3,981,163
Distribution and shareholder services fees (Investor Shares )		412,184
Custodian fees		361,200
Sub-Accounting fees (Investor Shares )		247,310
Accounting and administration fees		107,336
Transfer agent fees		106,545
Professional fees		95,921
Shareholder reports		68,258
Trustees’ fees		44,805
Registration fees		31,540
Interest expense		747
Other expenses	+	205,314

Total expenses	−	5,662,323

Net investment income		5,058,895

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(29,009,819	)
Net realized gains on foreign currency transactions	+	498,622

Net realized losses		(28,511,197	)
Net unrealized gains on investments		196,044,108
Net unrealized gains on foreign currency translations	+	112,848

Net unrealized gains	+	196,156,956

Net realized and unrealized gains		167,645,759

Net increase in net assets resulting from operations		$172,704,654

See financial notes 61

Laudus Rosenberg International Small Capitalization Fund

Statements of

Changes in Net Assets

For the current and prior report periods.



Operations


4/1/09-3/31/10				4/1/08-3/31/09
Net investment income		$5,058,895			$16,288,981
Net realized losses		(28,511,197	)		(287,264,910	)
Net unrealized gains (losses)	+	196,156,956			(218,098,910	)

Increase (Decrease) in net assets from operations		172,704,654			(489,074,839	)

Distributions to Shareholders¹

Distributions from net investment income
Investor Shares		3,764,550			4,469,511
Select Shares	+	6,501,862			7,704,614

Total distributions from net investment income		$10,266,412			$12,174,125

Transactions in Fund Shares¹


		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		VALUE			SHARES		VALUE
Shares Sold
Investor Shares			379,403		$3,993,086			513,126		$6,697,143
Select Shares	+		4,038,062		44,637,997			5,524,993		71,369,166

Total shares sold			4,417,465		$48,631,083			6,038,119		$78,066,309


Shares Reinvested
Investor Shares			290,710		$3,221,071			416,709		$3,817,051
Select Shares	+		498,600		5,574,345			733,865		6,788,252

Total shares reinvested			789,310		$8,795,416			1,150,574		$10,605,303


Shares Redeemed
Investor Shares			(7,675,442	)	($82,841,838	)		(13,266,975	)	($162,910,757	)
Select Shares	+		(12,734,654	)	(139,859,826	)		(17,446,448	)	(217,326,237	)

Total shares redeemed			(20,410,096	)	($222,701,664	)		(30,713,423	)	($380,236,994	)

Net transactions in fund shares			(15,203,321	)	($165,275,165	)		(23,524,730	)	($291,565,382	)

Shares Outstanding and Net Assets

		4/1/09-3/31/10					4/1/08-3/31/09
			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			43,870,721		$343,598,003			67,395,451		$1,136,412,349
Total decrease	+		(15,203,321	)	(2,836,923	)		(23,524,730	)	(792,814,346	)

End of period			28,667,400		$340,761,080			43,870,721		$343,598,003


(Distribution in excess of net investment income)/Net investment income not yet distributed					($1,367,761	)				$275,406


¹		Effective on July 31, 2008, the Institutional shares class was redesignated as Select Shares.

62 See financial notes

Laudus Rosenberg Funds

Financial Notes

1. Business Structure of the Funds:

Each of the Laudus Rosenberg Funds in this report is a series of Laudus Trust (the “Trust”), an open-end management investment company. The Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the Funds in the Trust including the Funds discussed in this report, which are highlighted (individually each such highlighted portfolio, a “Fund” and collectively, the “Funds”):



Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund		Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund Laudus Growth Investors U.S. Large Capitalization Growth Fund

At a meeting on April 28, 2010, the Board of Trustees of the Trust approved the liquidation of each of the Funds (see Financial Note 11). Accordingly, as of close of business on April 30, 2010, each Fund is closed to new investments from all investors. You can also refer to the prospectus supplement in the back of this annual report about the closure and liquidation of the Laudus Rosenberg Funds.

Prior to November 20, 2009, the Laudus Rosenberg U.S. Discovery Fund offered two share classes: Investor Shares and Select Shares. Shares of each class represented an interest in the same portfolio. Effective November 19, 2009, all outstanding Investor Shares of the Laudus Rosenberg U.S. Discovery Fund were converted into Select Shares and the Fund no longer offers separate share classes. Immediately after and as a result of the conversion, each shareholder of the Investor Shares became owners of Select Shares of the Fund.

The Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund are authorized to issue an unlimited number of Investor Shares and Select Shares of no par value. The Laudus Rosenberg U.S. Discovery Fund is authorized to issue an unlimited number of 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, bear different distribution and sub-transfer agent expenses, and separate voting rights on matters pertaining solely to that class of shares.

Each Fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its accounts, each Fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

(a) Security Valuation

The Funds value the securities in their portfolios every business day. The Funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each Fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the fund pursuant to the procedures.

	•	International fair valuation: The Board of Trustees has adopted procedures to fair value foreign securities that trade in markets that close prior to when the fund values their holdings. By fair valuing securities whose prices may have been

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):


		affected by events occurring after the close of trading, each fund seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the net asset value of the fund’s shares, and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a Fund and that of its index or benchmark. Each Fund makes fair value determinations in good faith in accordance with the Fund’s valuation procedures. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a Fund could obtain the fair value assigned to the security upon the sale of such security. The Board of Trustees regularly reviews fair value determinations made by the fund pursuant to these procedures.


	•	Futures and forward contracts: valued at their settlement prices as of the close of their exchanges (for futures) or at a value based on that day’s exchange rates (for forwards).

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values as determined by the underlying Fund in accordance with the 1940 Act for a given day.

The Funds adopted the authoritative guidance under GAAP on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly. Accordingly, if the Funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The guidance establishes three levels of the fair value hierarchy as follows:


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The Funds do not adjust the quoted price for such investments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted prices.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the Funds value their holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the Funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the Funds in estimating the

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.

Laudus Rosenberg U.S. Large Capitalization Fund

Quoted Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total*

Common Stock(a)

$100,139,781

$—

$100,139,781

Other Investment Company

143,931

—

143,931

Total

$100,283,712

$—

$100,283,712


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Holdings.

Laudus Rosenberg U.S. Discovery Fund


	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$343,825,168		$—		$—		$343,825,168
Other Investment Company		4,676,959		—		—		4,676,959

Total		$348,502,127		$—		$—		$348,502,127

Other Financial Instruments
Collateral Invested for Securities on Loan		$3,780,125		$—		$—		$3,780,125


(a)		As categorized in Portfolio Holdings.

Laudus Rosenberg International Discovery Fund


	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$—		$188,891,447		$—		$188,891,447
Brazil(a)		4,448,620		—		—		4,448,620
Canada(a)		22,245,026		—		—		22,245,026
Chile(a)		3,066,322		—		—		3,066,322

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):


	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Columbia(a)		634,674		—		—		634,674
Hong Kong(a)		—		12,506,972		—		12,506,972
Consumer Durables & Apparel		—		530,803		1,013,685		1,544,488
India(a)		—		9,219,024		—		9,219,024
Energy		256,341		603,551		—		859,892
Japan(a)		—		57,427,327		—		57,427,327
Consumer Durables & Apparel		839,540		7,637,430		—		8,476,970
Energy		—		—		1,187,498		1,187,498
Mexico(a)		4,913,401		—		—		4,913,401
Peru(a)		195,111		—		—		195,111
Russia(a)		—		1,522,964		—		1,522,964
Energy		2,040,760		—		—		2,040,760
South Africa(a)		—		8,372,906		—		8,372,906
Capital Goods		42,835		1,385,093		—		1,427,928
Preferred Stock		5,844,040		—		—		5,844,040
Other Investment Company		5,003,383		—		—		5,003,383

Total		$49,530,053		$288,097,517		$2,201,183		$339,828,753


*		The fund had no Other Financial Instruments
(a)		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


			Accrued					Change in						Net
	Balance as of		Discounts		Realized Gain			Unrealized Gain			Net Purchases			Transfers			Balance as of
Investments in Securities	March 31, 2009		(Premiums)		(Loss)			(Loss)			(Sales)			in/(out)			March 31, 2010

Common Stock
Hong Kong		$—		$—		($74,759	)		$395,763			$7,470			$685,211			$1,013,685
Japan		—		—		(122,925	)		(33,598	)		1,344,021			—			1,187,498
Republic of Korea		825,415		—		995,435			646,191			(1,936,361	)		(530,680	)		—
Rights
Finland		5,566		—		(4,040	)		(5,566	)		4,040			—			—
Malaysia		69,818		—		65,154			(69,818	)		(65,154	)		—			—

Total		$900,799		$—		$858,865			$932,972			($645,984	)		$154,531			$2,201,183

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Laudus Rosenberg International Small Capitalization Fund


	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$—		$79,510,503		$—		$79,510,503
Australia(a)		—		16,170,315		—		16,170,315
Health Care Equipment & Services		442,581		890,096		—		1,332,677
Belgium(a)		—		7,020,664		—		7,020,664
Capital Goods		16,271		—		—		16,271
Canada(a)		28,197,722		—		—		28,197,722
France(a)		—		13,996,523				13,996,523
Automobiles & Components		30,873		3,208,111		—		3,238,984
Media		81,037		5,824,769		—		5,905,806
Germany(a)				5,878,043		—		5,878,043
Capital Goods		212,913		5,314,055		—		5,526,968
Commercial & Professional Supplies		129,424		—		—		129,424
Food, Beverage & Tobacco		264,556		86,295		—		350,851
Pharmaceuticals, Biotechnology & Life Sciences		318,416		—		—		318,416
Software & Services		240,035		893,326		—		1,133,361
Technology Hardware & Equipment		1,447,745		638,935		—		2,086,680
Hong Kong(a)		—		6,987,127		—		6,987,127
Diversified Financials		141,570		246,978		—		388,548
Retailing		6,903		704,612		—		711,515
Japan(a)		—		25,432,580		—		25,432,580
Automobiles & Components		27,593		5,722,555		—		5,750,148
Capital Goods		47,652		12,396,630		—		12,444,282
Commercial & Professional Supplies		44,288		511,256		—		555,544
Consumer Durables & Apparel		31,298		6,839,639		—		6,870,937
Materials		52,786		7,089,431		—		7,142,217
Media		150,369		2,156,235		—		2,306,604
Retailing		62,488		4,478,673		—		4,541,161
Utilities		221,179		71,690		—		292,869
Netherlands(a)		—		5,695,937		—		5,695,937
Retailing		15,527		—		—		15,527

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):


	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Portugal(a)		—		1,386,507		—		1,386,507
Consumer Services		63,877		—		—		63,877
Software & Services		304,294		—		—		304,294
Republic of Korea(a)		—		6,264,751				6,264,751
Consumer Durables & Apparel		184,337		764,430		—		948,767
Food, Beverage & Tobacco		250,139		247,212		—		497,351
Materials		656,354		3,611,014		—		4,267,368
Pharmaceuticals, Biotechnology & Life Sciences		110,681		31,147		—		141,828
Utilities		152,144		63,038		—		215,182
Spain(a)		—		12,801,846		—		12,801,846
Materials		924,655		—		—		924,655
United Kingdom(a)		—		32,369,650		—		32,369,650
Capital Goods		2,870,098		2,077,059		—		4,947,157
Commercial & Professional Supplies		101,662		—		—		101,662
Insurance		1,111,852		2,307,828		—		3,419,680
Media		162,008		1,718,486		—		1,880,494
Technology Hardware & Equipment		238,597		175,976		—		414,573
Transportation		194,931		7,363,399		—		7,558,330
Preferred Stock		—		1,697,692		—		1,697,692
Rights
Republic of Korea		—		—		31,957		31,957
Spain		1,271		—		—		1,271

Total		39,510,126		290,645,013		31,957		330,187,096

Other Financial Instruments
Collateral Invested for Securities on Loan		17,719,621		—		—		17,719,621

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


			Accrued					Change in			Net
	Balance as of		Discounts		Realized Gain			Unrealized Gain			Purchases			Net Transfers			Balance as of
Investments in Securities	March 31, 2009		(Premiums)		(Loss)			(Loss)			(Sales)			in/(out)			March 31, 2010

Common Stock
France		$98,649		$—		($148,986	)		$180,314			($129,977	)		$—			$—
Japan		38,541		—		—			5,747			—			(44,288	)		—
Malaysia		—		—		—			—			—			—			—
United Kingdom		—		—		(368,363	)		368,363			—			—			—
Rights
Australia		2,258		—		—			(2,258	)		—			—			—
Republic of Korea		—		—		—			31,957			—			—			31,957

Total		$139,448		$—		($517,349	)		$584,123			($129,977	)		($44,288	)		$31,957


(a)		As categorized in Portfolio Holdings.

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

All net realized and change in unrealized gains (losses) in the tables above are reflected in the accompanying statements of operations. Changes in net unrealized gains (losses) for Level 3 investments held by the Funds at March 31, 2010 are as follows:


Laudus Rosenberg International Discovery Fund			$362,164
Laudus Rosenberg International Small Capitalization Fund			$31,957

(b) Portfolio Investments:

The Funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards are similar to futures except that they are not publicly traded, but are agreements directly between two parties. The accounting for Forwards is treated similar to that of futures contracts in that gains and losses are accounted for as unrealized gains or losses until the contracts settles and such amounts are accounted for as realized.

Real Estate Investment Trusts: Certain 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.

Securities Lending: Under the Securities Lending Program, a Fund (the “Lender”) may make short-term loans of their securities to another party (the “Borrower”) to generate additional revenue from their portfolio. The Borrower provides cash, U.S. government securities or letters of credit as collateral against the 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 registered 2a-7 money market portfolios. The investments of collateral are mark-to-market daily and the value of the collateral must be at least 100% of the market value of the loan securities each day. If the value of the collateral falls below 100%, it will be adjusted the following day.

(c) Security Transactions:

Laudus Rosenberg Funds

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the Funds record certain foreign security dividends on the day they learn of the ex-dividend date.

(e) Expenses:

Expenses that are specific to a Fund are charged directly to the Fund. Expenses that are common to all Funds within the trust generally are allocated among the Funds in proportion to their average daily net assets.

For Funds offering multiple share classes, net investment income, other than class specific expenses, and realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The Funds make distributions from net investment income and net realized capital gains, if any, once a year.

(g) Custody Credit:

(h) Accounting Estimates:

The accounting policies described in this report conform to accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.

(i) Federal Income Taxes:

(j) Indemnification:

Laudus Rosenberg Funds

Financial Notes (continued)

3. Risk factors:

Investing in the Funds may involve certain risks, as described in the Funds’ prospectus, including, but not limited to, those described below:

An investment in any of the Funds involves risks similar to those of investing in common stocks directly. Just as with common stocks, the value of Fund shares may increase or decrease depending on market, economic, political, regulatory and other conditions affecting a Fund’s portfolio. These types of risks may be greater with respect to investments in securities of foreign issuers. Investments in shares of the Funds are, like an investment in common stocks, more volatile and risky than some other forms of investment. This risk is significant for all Funds.

Please refer to the Funds’ prospectus for a more complete description of the principal risks of investing in the Funds.

4. Affiliates and Affiliated Transactions:

The Trust’s Board of Trustees oversees the general conduct of the Trust and the Funds.

Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each Fund’s investment adviser pursuant to an Investment Advisory Agreement (“Advisory Agreement”) between it and the Trust. 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.

Laudus Rosenberg Funds

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

For its advisory services to each Fund, CSIM is entitled to receive an annual fee, payable monthly, based on the Funds’ average daily net assets described as follows:


	Laudus Rosenberg		Laudus Rosenberg		Laudus Rosenberg
	U.S. Large		U.S. Discovery		International
Average daily net assets	Capitalization Fund		Fund		Discovery Fund

First $1 billion		0.75%		0.90%		1.00%
$1 billion to $2 billion		0.70%		0.85%		0.95%
Over $2 billion		0.675%		0.85%		0.95%


	Laudus Rosenberg
	International Small
	Capitalization Fund

First $500 million		1.00%
Over $500 million		0.95%

CSIM (not the Funds) pays a portion of the management fees it receives to AXA Rosenberg in return for its services.


	Investor Shares		Select Shares

Laudus Rosenberg U.S. Large Capitalization Fund		1.14%		0.84%
Laudus Rosenberg U.S. Discovery Fund*		n/a		0.95%
Laudus Rosenberg International Discovery Fund		1.65%		1.35%
Laudus Rosenberg International Small Capitalization Fund		1.79%		1.49%


*		Prior to August 12, 2009, the expense limitation was 1.14% for the Select Shares. Effective, November 19, 2009, the Investor Shares were merged into Select Shares.

Laudus Rosenberg

International

Laudus Rosenberg

U.S. Large

U.S. Discovery

Discovery

International Small

Expiration Date

Capitalization Fund

Fund

Capitalization Fund

March 31, 2011

$126,825

$—

$516,875

$—

March 31, 2012

173,219

139,635

656,228

—

The Funds may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the period ended March 31, 2010, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.

5. Other Shareholders Services:

Boston Financial Data Services, Inc. (“BFDS”) provides the transfer agent services to the Funds, and receives transfer agent fees from the Funds as shown in the Statement of Operations.

Laudus Rosenberg Funds

Financial Notes (continued)

5. Other Shareholders Services (continued):

with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the 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.

Effective August 12, 2009 no further fees were assessed on the Investor Shares for U.S. Discovery Fund for sub-transfer agent and sub-accounting service or under the Distribution and Shareholder Service Plan. Effective November 19, 2009, the Investor Shares of Laudus Rosenberg U.S. Discovery Fund were merged into Select Shares.

6. Board of Trustees:

7. Borrowing from Banks:

8. Purchases and Sales of Investment Securities:

For the period ended March 31, 2010, purchases and sales of securities (excluding short-term securities) were as follows:


	Purchases		Sales

Laudus Rosenberg U.S. Large Capitalization Fund		$143,009,815		$132,242,999
Laudus Rosenberg U.S. Discovery Fund		362,695,613		692,737,918
Laudus Rosenberg International Discovery Fund		393,339,564		393,817,255
Laudus Rosenberg International Small Capitalization Fund		376,924,176		544,105,729

9. Redemption Fee:


	Current Period		Prior Period
	(4/1/09-3/31/10)		(4/1/08-3/31/09)

Laudus Rosenberg U.S. Large Capitalization Fund		$2,151		$7,309
Laudus Rosenberg U.S. Discovery Fund		14,941		18,351
Laudus Rosenberg International Discovery Fund		4,784		17,228
Laudus Rosenberg International Small Capitalization Fund		288		953

Laudus Rosenberg Funds

Financial Notes (continued)

10. Federal Income Tax:

As of March 31, 2010, the components of distributable earnings on a tax-basis were as follows:


	Laudus Rosenberg			Laudus Rosenberg
	U.S. Large			U.S. Discovery
	Capitalization Fund			Fund

Undistributed ordinary income		$270,790			$324,717
Undistributed long-term capital gains		—			—
Unrealized appreciation on investments		17,390,701			64,396,117
Unrealized depreciation on investments		(512,306	)		(6,407,432	)
Other unrealized appreciation/ (depreciation)		—			—
Net unrealized appreciation/ (depreciation)		$16,878,395			$57,988,685


	Laudus Rosenberg			Laudus Rosenberg
	International			International Small
	Discovery Fund			Capitalization Fund

Undistributed ordinary income		$1,426,211			$2,496,305
Undistributed long-term capital gains		—			—
Unrealized appreciation on investments		49,285,460			42,159,775
Unrealized depreciation on investments		(7,497,013	)		(24,681,888	)
Other unrealized appreciation/ (depreciation)		(383,577	)		17,041
Net unrealized appreciation/ (depreciation)		$41,404,870			$17,494,928

The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales and Passive Foreign Investment Companies (“PFIC”).


	Laudus
	Rosenberg						Laudus Rosenberg
	U.S. Large		Laudus Rosenberg		Laudus Rosenberg		International
	Capitalization		U.S. Discovery		International		Small
Expiration Date	Fund		Fund		Discovery Fund		Capitalization

March 31, 2016		$—		$—		$—		$—
March 31, 2017		11,500,509		—		61,437,260		151,052,643
March 31, 2018		16,122,727		177,550,837		61,225,314		238,469,625
Total		$27,623,236		$177,550,837		$122,662,574		$389,522,268

Laudus Rosenberg

International

Laudus Rosenberg

Small

U.S. Large

U.S. Discovery

International

Capitalization

Capitalization Fund

Fund

Discovery Fund

Fund

Capital losses deferred

$—

$6,908,600

Capital losses utilized

—

Laudus Rosenberg Funds

Financial Notes (continued)

10. Federal Income Tax (continued):

Due to the fact that Laudus Rosenberg U.S. Large Capitalization Fund and Laudus Rosenberg U.S. Discovery Fund were previously parties to mergers, and those mergers occurred within two years of their recently announced plan of liquidation, the capital losses acquired at the time of the mergers are limited to zero by operation of Internal Revenue Code 382(c).


Capital Losses Expired Due To Plan of Liquidation:

Laudus Rosenberg U.S. Large Capitalization Fund			$3,763,669
Laudus Rosenberg U.S. Discovery Fund			$129,953,150

The tax-basis components of distributions paid during the current and prior periods were:


							Laudus Rosenberg
	Laudus Rosenberg		Laudus Rosenberg		Laudus Rosenberg		International Small
	U.S. Large		U.S. Discovery		International		Capitalization
	Capitalization Fund		Fund		Discovery Fund		Fund

Current period distributions
Ordinary income		$1,260,101		$1,455,201		$5,537,722		$10,266,412
Long-term capital gains		—		60,412		—		—
Return of capital		—		—		—		—
Prior period distributions
Ordinary income		$1,149,648		$2,338,958		$5,099,501		$12,174,125
Long-term capital gains		—		2,792,770		—		—
Return of capital		—		—		—		—


							Laudus Rosenberg			Laudus Rosenberg
	Laudus Rosenberg			Laudus Rosenberg			International			International Small
	U.S. Large			U.S. Discovery			Discovery			Capitalization
	Capitalization Fund			Fund			Fund			Fund

Capital shares		($3,763,669	)		$691,342			($947	)		($638	)
Undistributed net investment income		—			(25,539	)		1,164,526			3,564,350
Net realized capital gains/losses		3,763,669			(665,803	)		(1,163,579	)		(3,563,712	)

Laudus Rosenberg Funds

Financial Notes (continued)

11. Subsequent Events:

At the meeting held on April 28, 2010, the Board of Trustees of the Trust approved the liquidation of each of the Funds. Accordingly, as of the close of business on April 30, 2010, each Fund is closed to new investments from all investors. Each Fund will redeem all of its outstanding shares on or shortly after July 30, 2010 and distribute the proceeds to the Fund’s shareholders (subject to maintenance of appropriate reserves for liquidation and other expenses). As shareholders redeem shares of the Funds through the liquidation date, the Funds may not be able to continue to invest their assets in accordance with their stated investment policies as a result of the decrease in the Funds’ assets.

Other than the planned liquidation of the Funds as discussed above, management has determined there are no other subsequent events or transactions that would have materially impacted the financial statements as presented.

12. Reorganization:

Under a plan of reorganization adopted by the Trust, all of the assets and liabilities of the Laudus Rosenberg U.S. Small Capitalization Fund were transferred to the Laudus Rosenberg U.S. Discovery Fund. The purpose of the transaction was to combine two funds managed by CSIM with comparable investment objectives and strategies. The reorganization was completed at the close of business on November 19, 2009. The following is a summary of shares outstanding, net assets, net asset value per share issued and unrealized appreciation/ depreciation immediately before and after the reorganization.


	Before Reorganization				After Reorganization
			Laudus Rosenberg		Laudus
	Laudus Rosenberg		U.S. Small		Rosenberg U.S.
	U.S. Discovery Fund		Capitalization Fund		Discovery Fund

Shares
Investor shares		—		8,317,738		—
Select shares		17,263,937		17,905,976		30,279,730
Advisor shares		—		1,193,319		—
Net assets
Investor shares		—		$47,773,040		—
Select shares		$214,478,709		$106,969,963		$376,180,246
Advisor shares		—		$6,958,534		—
Net asset value
Investor shares		—		$5.74		—
Select shares		$12.42		$5.97		$12.42
Advisor shares		—		$5.83		—
Net unrealized appreciation/
(depreciation)		$15,779,199		$5,857,870		$21,637,069
Market value of investments		$213,378,372		$162,349,732		$375,728,104
Cost of investments		$197,599,173		$156,491,861		$354,091,034

The Laudus Rosenberg U.S. Discovery Fund’s pro forma results of operations for the year ended March 31, 2010 are as follows:


Net investment income			$513,829
Net realized/unrealized gain (loss) on investments			$221,654,376

Net increase (decrease) in net assets resulting from operations			$222,168,205

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earning of Laudus Rosenberg U.S. Small Capitalization Fund that have been included in Laudus Rosenberg U.S. Discovery Fund’s Statement of Operations since November 19, 2009.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Laudus Rosenberg U.S. Large Capitalization Fund

Laudus Rosenberg U.S. Discovery Fund

Laudus Rosenberg International Discovery Fund

Laudus Rosenberg International Small Capitalization Fund

In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, 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. Discovery Fund, Laudus Rosenberg International Discovery Fund, and Laudus Rosenberg International Small Capitalization Fund (four of the portfolios constituting Laudus Trust, hereafter referred to as the “Funds”) at March 31, 2010, the results of each of their operations for the year then ended, 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 audit 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

As explained in Note 11 to the financial statements, on April 28, 2010, the Funds’ Board of Trustees voluntarily elected to liquidate each of the Funds.

PricewaterhouseCoopers LLP

San Francisco, California

May 17, 2010

Other Federal Tax Information (unaudited)

For corporate shareholders, the following percentage of the Funds dividends distributions paid during the fiscal year ended March 31, 2010, qualify for the corporate dividends received deduction:


	Dividends
	Received Deduction

Laudus Rosenberg U.S. Large Capitalization Fund		100%
Laudus Rosenberg U.S. Discovery Fund		100%
Laudus Rosenberg International Discovery Fund		—%
Laudus Rosenberg International Small Capitalization Fund		—%

The Funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the year ended March 31, 2010, and the respective foreign source income on the Funds were as follows:


	Foreign Tax		Foreign Source
	Credit		Income

Laudus Rosenberg International Discovery Fund		$659,970		$8,284,757
Laudus Rosenberg International Small Capitalization Fund		934,665		11,635,541


Laudus Rosenberg U.S. Large Capitalization Fund			$1,530,891
Laudus Rosenberg U.S. Discovery Fund			1,779,918
Laudus Rosenberg International Discovery Fund			7,140,241
Laudus Rosenberg International Small Capitalization Fund			11,850,322

For the fiscal year ended March 31, 2010, the Funds hereby designate the following amounts as capital gain dividends:


Laudus Rosenberg U.S. Large Capitalization Fund			$—
Laudus Rosenberg U.S. Discovery Fund			60,412
Laudus Rosenberg International Discovery Fund			—
Laudus Rosenberg International Small Capitalization Fund			—

Results of Proxy Voting:

At a special meeting of shareholders of the Laudus Rosenberg U.S. Small Capitalization Fund held on November 5, 2009, the shareholders approved the reorganization of the Fund into the Laudus Rosenberg U.S. Discovery Fund. The results of the shareholder vote were as follows:


			% of Shares		% of Total
	Shares Voted		Voted		Shares Voted

FOR		22,159,106.69		93.19%		46.97%
AGAINST		318,441.47		1.34%		0.68%
ABSTAIN		280,112.96		1.17%		0.59%
UNINSTRUCTED		1,021,667.00		4.30%		2.17%
TOTAL		23,779,328.12		100.00%		50.41%

At a special meeting of shareholders of the trust held on December 14, 2009, shareholders approved the following proposal: to elect nine trustees to serve on the Board of Trustees of the trust.


	FOR		WITHHELD
	(shares)		(shares)		% FOR

Charles R. Schwab		125,221,372.67		28,690,024.32		81.36%
Walter W. Bettinger, II		145,432,597.43		8,478,799.56		94.49%
Mariann Byerwalter		150,226,122.76		3,685,274.23		97.61%
John F. Cogan		149,359,044.40		4,552,352.59		97.04%
William A. Hasler		140,754,512.11		13,156,884.88		91.45%
Gerald B. Smith		149,347,240.57		4,564,156.42		97.03%
Donald R. Stephens		149,421,888.16		4,489,508.83		97.08%
Joseph H. Wender		149,294,896.88		4,616,500.11		97.00%
Michael W. Wilsey		143,901,543.71		10,009,853.28		93.50%

Approval of Amended Subadviser Agreement

The Board of Trustees (the “Board” or the “Trustees”, as appropriate), including a majority of the trustees who are not “interested” persons as that term is defined in the Investment Company Act of 1940 (the “Independent Trustees”), considered information specifically relating to its consideration of an amended and restated subadviser agreement (“Amended Subadviser Agreement”) among Laudus Trust, Charles Schwab Investment Management, Inc. and AXA Rosenberg Investment Management LLC with respect to the Laudus Rosenberg U.S. Discovery Fund, at a meeting held on February 25, 2010. The Board’s approval of the Amended Subadviser Agreement was based on the review of detailed information with regard to the proposed changes and the consideration and evaluation of a variety of specific factors considered by the Board at the September 17, 2009 Board Meeting. For a detailed summary of the factors considered at the September 17, 2009 meeting, please refer to the Funds’ semiannual report dated September 30, 2009.

Trustees and Officers

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Mariann Byerwalter 1960 Trustee (Trustee of Laudus Trust since 2004.)	Chairman of JDN Corporate Advisory LLC.	77	Director, Redwood Trust, Inc. (1998 – present) Director, PMI Group Inc. (2001 – 2009) Director, Excelsior Funds (2006 – 2007)


John F. Cogan 1947 Trustee (Trustee of Laudus Trust since 2010.)	Senior Fellow: The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research; Professor of Public Policy, Stanford University (Sept. 1994 – present).	77	Director, Gilead Sciences, Inc. (2005 – present) Director, Monaco Coach Corporation (2005 – 2009)


William A. Hasler 1941 Trustee (Trustee of Laudus Trust since 2004.)	Dean Emeritus, Haas School of Business, University of California, Berkeley (July 1998 – present).	77	Director, Ditech Networks Corporation (1997 – present) Director, TOUSA (1998 – present) Director, Mission West Properties (1998 – present) Director, Globalstar, Inc. (2009 – present) Director, Harris-Stratex Networks (2001 – present) Director, Aphton Corp. (1991 – 2007) Director, Solectron Corporation (1998 – 2007) Director, Genitope Corporation (2000 – 2009) Director, Excelsior Funds (2006 – 2007)


Gerald B. Smith 1950 Trustee (Trustee of Laudus Trust since 2010.)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (1990 – present).	77	Lead Independent Director, Board of Cooper Industries (2002 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – present) Director, Oneok, Inc (2009 – present)


Donald R. Stephens 1938 Trustee (Trustee of Laudus Trust since 2010.)	Managing Partner, D.R. Stephens & Company (investments) (1973 – present).	77	None


Joseph H. Wender 1944 Trustee (Trustee of Laudus Trust since 2010.)	Senior Consultant, Goldman Sachs & Co., Inc. (Jan. 2008-present); Partner, Colgin Partners, LLC (vineyards) (February 1998 – present); Senior Director, Chairman of the Finance Committee, GSC Group (July 2005 – Dec. 2007); General Partner, Goldman Sachs & Co., Inc. (Oct. 1982 – June 2005).	77	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

Independent Trustees (continued)


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Michael W. Wilsey 1943 Trustee (Trustee of Laudus Trust since 2010.)	Chairman and Chief Executive Officer, Wilsey Bennett, Inc. (real estate investment and management, and other investments).	77	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Charles R. Schwab²1937 Chairman and Trustee (Chairman and Trustee of Laudus Trust since 2010.)	Founded Charles Schwab & Co., Inc. in 1971 and became Chairman in 1978. Since 1986, Chairman and Director, The Charles Schwab Corporation. Since 1989, Director, Charles Schwab Investment Management, Inc., and appointed as Chairman in 1991. Since 1996, Chairman and Chief Executive Officer, Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. Since 1999, Director and Chief Executive Officer, Schwab Holdings, Inc. Since 2003, Chairman, Charles Schwab Bank, N. A.; Through June 2007, Director, U.S. Trust Company, N. A., U.S. Trust Corporation, United States Trust Company of New York. Until October 2008, Chief Executive Officer, The Charles Schwab Corporation, and the Charles Schwab & Co., Inc.	77	None


Walter W. Bettinger II²1960 Trustee (Trustee of Laudus Trust since 2010.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., principal underwriter to the Funds, and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	85	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

George Pereira 1964 Treasurer and Chief Financial Officer (Officer of Laudus Trust since 2006.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc. (November 2004 – present); Treasurer and Principal Financial Officer, Schwab Funds and Schwab ETFs (2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (Sept. 2002 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Jeffrey Mortimer 1963 President, Chief Executive Officer and Chief Investment Officer (President and CEO since 2008, CIO since 2004.)		Senior Vice President and Chief Investment Officer, Charles Schwab Investment Management, Inc. and Schwab Funds (2004 – present); Senior Vice President and Chief Investment Officer, Schwab ETFs (2009 – present).


Koji E. Felton 1961 Vice President and Assistant Clerk (Officer of Laudus Trust since 2010.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc. (July 2000 – present); Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. (June 1998 – present); Secretary and Chief Legal Officer, Schwab Funds (Nov. 1998 – present); Secretary and Chief Legal Officer, Schwab ETFs (Oct. 2009 – present); Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Catherine MacGregor 1964 Chief Legal Officer, Vice President and Clerk (Officer of Laudus Trust since 2005.)		Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President, Schwab Funds (2005 – present), Vice President of Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Laudus Trust since 2005)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. (2004 – present); Vice President, Schwab Funds (2005 – present); Vice President, Schwab ETFs (Oct. 2009 – present).


¹		Trustees remain in office until they resign, retire or are removed by shareholder vote. The Laudus Funds retirement policy requires that independent trustees elected after January 1, 2000 retire at age 72 or after 20 years of service as a trustee, whichever comes first, provided that any trustee who serves on both Schwab Funds and Laudus Funds retires from both boards when first required to retire by either board. Independent trustees elected prior to January 1, 2000 will retire on the following schedule: Messrs. Stephens and Wilsey will retire on December 31, 2010.
²		Messrs. Schwab and Bettinger are Interested Trustees because they are employees of Schwab and/or the investment adviser. In addition to their employment with Schwab and/or the investment adviser, Messrs. Schwab and Bettinger also own stock of The Charles Schwab Corporation.
³		The President, Treasurer and Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

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.

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 divided by its reported cash flow per share.

The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 1000^® 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^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, and represents approximately 16% of the total market capitalization of the Russell 3000^® Index.

The Russell 3000^® 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 Value or the Russell 2000 Value indexes.

The Russell 3000^® 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.

The S&P Developed ex US SmallCap Index is a float-adjusted index which measures the performance of small companies (approximately the bottom 15% by market capitalization) in 25 developed equity markets.

The S&P 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 Standard & Poor’s 500^® (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.

Proxy Voting

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 availabel 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.

This supplement is not part of the shareholder report.

LAUDUS TRUST
(the “Trust”)

Laudus Rosenberg U.S. Equity Funds
Laudus Rosenberg U.S. Large Capitalization Fund
Laudus Rosenberg U.S. Discovery Fund

Laudus Rosenberg International Equity Funds
Laudus Rosenberg International Discovery Fund
Laudus Rosenberg International Small Capitalization Fund

Supplement dated April 30, 2010 to the
Prospectus dated July 29, 2009, as supplemented
August 12, 2009

This supplement provides new and additional information beyond that contained in the Prospectus and should be read in conjunction with the Prospectus.

At a meeting held on April 28, 2010, the Board of Trustees of the Trust approved the liquidation of each of the Laudus Rosenberg Funds, specifically, the Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund (each, a “Fund”).

Accordingly, effective as of the close of business April 30, 2010 (the “Closing Date”), each Fund is closed to new investment from all investors. All existing investors may continue to receive dividends and/or distributions in the form of additional shares of a Fund. Effective as of the Closing Date, shareholders of other funds of the Trust will not be permitted to exchange any of their shares for shares of a Fund. Each Fund may modify the implementation of these transaction policies to accommodate certain intermediaries’ system requirements.

Each Fund will redeem all of its outstanding shares on or shortly after July 30, 2010 (the “Liquidation Date”), and distribute the proceeds to the Fund’s shareholders (subject to maintenance of appropriate reserves for liquidation and other expenses). Charles Schwab Investment Management, Inc. (the “Adviser”) will continue to monitor the situation with the Funds’ subadviser, AXA Rosenberg Investment Management, LLC, regarding its recently announced computer model coding error to determine what impact, if any, the error may have had on the performance of the Funds. The Funds will seek to preserve any potential rights the Funds’ may have with respect to such error on behalf of the broadest group of shareholders possible. However, there is no guarantee that the Funds will receive any recovery or that the Funds will be able to preserve any such recovery for shareholders who redeem their shares prior to the Liquidation Date. In addition, any potential recovery may be too small to be practicably distributed to shareholders.

Effective immediately, through the Liquidation Date, each Fund will waive its redemption fee.

As shareholders redeem shares of a Fund between the date of this supplement and the Liquidation Date, a Fund may not be able to continue to invest its assets in accordance with its stated investment policies as a result of the decrease in the Fund’s assets. Accordingly, a Fund may not be able to achieve its investment objective and may deviate from its investment policies during the period between the date of this supplement and the Liquidation Date.

As is the case with other redemptions, each shareholder’s redemption, including a mandatory redemption on the Liquidation Date, will constitute a taxable disposition of shares for shareholders who do not hold their shares through tax-advantaged plans. Shareholders should contact their tax advisors to discuss the potential income tax consequences of the liquidation.

A copy of the Funds’ prospectus and this supplement are available on the Funds website www.laudus.com, and the Funds will provide additional information, should it become available, on their website.

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

How We Collect Information About You

We collect personal information about you in a number of ways.


•	APPLICATION AND REGISTRATION INFORMATION.


•	TRANSACTION AND EXPERIENCE INFORMATION.


•	WEBSITE USAGE.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:


•	to help us process transactions for your account;

•	when we use other companies to provide services for us, such as printing and mailing your account statements;

•	when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control)

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Contact Us

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Laudus Funds^® direct investors: 1-800-447-3332

This supplement is not part of the shareholder report.

LAUDUS TRUST
(the “Trust”)

Laudus Growth Investors U.S. Large Cap Growth Fund

Supplement dated May 20, 2010 to the
Prospectus dated October 27, 2009

This supplement provides new and additional information beyond that contained in the Prospectus and should be read in conjunction with the Prospectus.

Effective June 4, 2010, the first paragraph of the “Portfolio management” section on page 9 of the prospectus is deleted in its entirety and replaced with the following:

Lawrence G. Kemp manages the Fund. Mr. Kemp is responsible for managing the portfolio and reviewing the overall composition of the portfolio to ensure its compliance with its stated investment objective and strategies. Mr. Kemp is Head of the U.S. Large Cap Growth Equity portfolio construction team at UBS Global AM. Mr. Kemp is also a managing Director of UBS Global AM and has been an investment professional with the firm since 1992.

PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE

Performance at a Glance


Total Return for the Report Period*


Laudus Growth Investors U.S. Large Cap Growth Fund (Ticker Symbol: LGILX)			30.02%

Russell 1000^® Growth Index			28.74%

Performance Details			pages 4-5

For the period from 6/30/09 through 3/31/10. Effective July 13, 2009, all outstanding Class A, B and C shares of the UBS U.S. Large Cap Growth Fund (the UBS Fund) were converted to Class Y shares, and the UBS Fund’s assets were acquired by the Laudus Growth Investors U.S. Large Cap Growth Fund. The performance and financial history prior to July 13, 2009 are that of the Class Y shares of the predecessor fund.

Fund expenses may have been partially absorbed by CSIM. Without these reductions, the Fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Please see prospectus for further detail and investor eligibility requirements.

2 Laudus Growth Investors U.S. Large Cap Growth Fund

From the President

Dear Shareholder,

On July 13, 2009, the UBS U.S. Large Cap Growth Fund was acquired by the Laudus Growth Investors U.S. Large Cap Growth Fund. Consequently, this annual report covers the nine-month period that ended March 31, 2010. During the period, major international and domestic equity indices showed signs of recovery. While this is welcomed news, central banks in several countries, including the United States, continued to closely monitor financial markets, liquidity, monetary exchange rates, interest rates, and inflation, in their ongoing efforts to stabilize local and global markets.

For the Laudus Growth Investors U.S. Large Cap Growth Fund, these improvements in the equity markets were reflected in the Fund’s return of 30.02% for the reporting period, which was slightly more than the return for its comparative index, the Russell 1000 Growth Index, that returned 28.74%. You can read about the performance of the Fund in the “Manager’s Discussion and Analysis” on the following pages.

UBS Global Asset Management (Americas) Inc. is the subadviser for the Laudus Growth Investors U.S. Large Cap Growth Fund. A global leader in asset management under the umbrella of UBS Global Asset Management (Americas) Inc., Growth Investors is a global growth manager focusing on high-alpha growth strategies, both in the United States and internationally. Growth Investors adheres to a disciplined investment process comprising both quantitative analysis and independent fundamental research, followed by distinct portfolio construction techniques to ensure consistent application of the growth style.

In closing, I would remind you that should you have any questions about the Fund we are available to answer them at 1-800-447-3332.

Thank you for investing with us.

Sincerely,

Laudus Growth Investors U.S. Large Cap Growth Fund 3

Laudus Growth Investors U.S. Large Cap Growth Fund

The Laudus Growth Investors U.S. Large Cap Growth Fund returned 30.02% for the nine-month period that ended March 31, 2010, outperforming its comparative index, the Russell 1000 Growth Index (the index), which returned 28.74%.

Gains remained broad based during the period as equity markets continued to improve from the depressed lows seen a year earlier. On a relative basis, outperformance versus the index during the period was due in equal parts to stock selection and sector allocation. In particular, stock selection within Information Technology, Health Care, and Consumer Discretionary were the main contributors.

Firms within the Information Technology Sector demonstrated resiliency in their ability to maintain profitability and increase revenue during the period. Furthermore, the firms with recurring revenue streams and secular product growth trends were in favor as compared to their more cyclical peers. The Information Technology Sector contains many firms that fit this description and as a result, the Fund’s identification of some of the better performing companies contributed positively to performance. Within Information Technology, an overweight to Apple, MasterCard, Salesforce.com, and Visa were some of the main drivers of the Fund’s outperformance during the period.

Investing in the Health Care Sector during the previous nine months was challenging as efforts to reform health care were underway. During this period, we focused on companies that had dominant positions in the market. Companies such as Alcon, Allergan, and Express Scripts fell into this category and contributed positively to the Fund’s performance.

While stock selection for the Fund in its entirety was positive during the period, there were some detractors. The Financials Sector makes up a relatively small percentage of the Fund’s comparative index; however, concerns about regulation of futures contracts caused two of the Fund’s holdings to lag during the period. Specifically, IntercontinentalExchange and CME Group detracted from Fund performance as fears that futures market regulators would limit trading volumes on energy futures contracts. As portfolio managers, we do not share these fears and have maintained the Fund’s holdings in the companies because, in our view, the future earnings growth is not fully reflected in current share prices.

As of 03/31/10:

Fund Characteristics


Number of Securities		50
Avg. Market Capitalization ($Wtd. x 1,000,000)		$61,564
Portfolio Turnover		72%
Price to Earnings (P/E)		23.15
Price/Book Ratio (P/B)		3.37
Price to Cash Flow		19.71
Beta		1.05
Return on Equity		20.08%
Five-Year Earnings Growth		19.71%

Fund Overview


		Fund


Initial Investment		$100
Inception Date		10/14/1997*
Total Net Assets ($ x 1,000)		$214,872
Ticker Symbol		LGILX
Cusip		51855Q549
NAV		$11.23

Views of UBS Global Asset Management (Americas), Inc. and portfolio holdings may have changed since the report date.


*		Inception date is that of the Fund’s predecessor fund, the Y Class of the UBS U.S. Large Cap Growth Fund.

4 Laudus Growth Investors U.S. Large Cap Growth Fund

Laudus Growth Investors U.S. Large Cap Growth Fund

Performance Summary as of 03/31/10

March 31, 2000 – March 31, 2010
Performance of a Hypothetical
$10,000 Investment^1,2

Average Annual Total Returns^1,2


Fund and Inception Date	6/30/09 – 3/31/10			1 Year			5 Years			10 Years

Fund: Laudus Growth Investors U.S. Large Cap Growth Fund (10/14/97)		30.02	%		52.50	%		7.19	%		-1.60	%
Russell 1000^® Growth Index*		28.74	%		49.75	%		3.42	%		-4.21	%

Fund Expense Ratios³: Net 0.78%; Gross 0.96%

Sector Weightings % of Equities


Information Technology		31.0%
Health Care		18.4%
Consumer Discretionary		16.6%
Industrials		10.9%
Financials		8.9%
Consumer Staples		6.2%
Energy		4.4%
Materials		2.8%
Telecommunication Services		0.8%
Total		100.0%

Top Equity Holdings % of Net Assets⁴


Apple, Inc.		6.8%
Google, Inc., Class A		4.3%
MasterCard, Inc., Class A		4.0%
Visa, Inc., Class A		3.9%
Cisco Systems, Inc.		3.8%
Allergan, Inc.		3.6%
QUALCOMM, Inc.		3.6%
Amazon.com, Inc.		3.3%
McDonald’s Corp.		3.3%
Covidien plc		3.1%
Total		39.7%


*		Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in any index and index figures do not include trading and management costs.
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. Performance results less than one year are not annualized.
²		Effective July 13, 2009, all outstanding Class A, B and C shares of the UBS U.S. Large Cap Growth Fund (the UBS Fund) were converted to Class Y shares, and the UBS Fund’s assets were acquired by the Laudus Growth Investors U.S. Large Cap Growth Fund. The performance and financial history prior to July 13, 2009 are that of the Class Y shares of the predecessor fund.
³		As stated in the prospectus. Net Expenses: Reflects expenses expected to be charged to shareholders through at least 7/30/12. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses: Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the Financial Highlights section of the Financial Statements.
⁴		This list is not a recommendation of any security by the investment adviser.

Laudus Growth Investors U.S. Large Cap Growth Fund 5

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

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 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 actual expense ratio 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.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 10/1/09		at 3/31/10		10/1/09–3/31/10



Laudus Growth Investors U.S. Large Cap Growth Fund
Actual Return		0.79%	$	1,000	$	1,142.90	$	4.22
Hypothetical 5% Return		0.79%	$	1,000	$	1,020.99	$	3.98


¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights.

²	Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year.

6 Laudus Growth Investors U.S. Large Cap Growth Fund

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Statements

Financial Highlights


	7/1/09–			7/1/08–			7/1/07–			7/1/06–			7/1/05–			7/1/04–
	3/31/10¹			6/30/09			6/30/08			6/30/07			6/30/06			6/30/05


Per-Share Data ($)

Net asset value at beginning of period		8.68			11.45			10.94			9.02			8.38			7.85

Income (loss) from investment operations:
Net investment income (loss)		0.01	²		0.03	²		0.01	²		0.04	²		0.01	²		0.02	²
Net realized and unrealized gains (losses)		2.58			(2.80	)		0.59			1.90			0.64			0.51

Total from investment operations		2.59			(2.77	)		0.60			1.94			0.65			0.53
Less distributions:
Distributions from net investment income		(0.04	)		—			(0.01	)		(0.02	)		(0.01	)		—
Distributions from net realized gains		—			—			(0.08	)		—			—			—

Total distributions		(0.04	)		—			(0.09	)		(0.02	)		(0.01	)		—

Net asset value at end of period		11.23			8.68			11.45			10.94			9.02			8.38

Total return (%)		30.02	³		(24.19	)		5.52			21.51			7.72			6.75

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.78	⁴		0.80			0.80			0.80			0.80			0.80
Gross operating expenses		0.99	⁴		1.23			1.21			1.25			2.10			3.01
Net investment income (loss)		0.12	⁴		0.41			0.05			0.35			0.09			0.29
Portfolio turnover rate		72	³		132			102			112			137			145
Net assets, end of period ($ x 1,000)		214,872			54,344			76,175			62,529			4,797			3,078

¹ Effective July 13, 2009, all outstanding Class A, B, and C shares in the UBS U.S. Large Cap Growth Fund (UBS Growth Fund) were converted to Class Y shares, and the UBS Growth Fund’s assets were acquired by Laudus Growth Investors U.S. Large Cap Growth Fund which commenced operations on that day. The Financial Highlights above present the Y Class shares of the UBS Growth Fund prior to the acquisition date of July 13, 2009 and Laudus Growth Investors U.S. Large Cap Growth Fund subsequent to that date. (Note that the UBS Growth Fund had a fiscal year ending June 30 whereas the Laudus Growth Investors U.S. Large Cap Growth Fund has a fiscal year ending March 31).

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ Annualized.

See financial notes 7

Laudus Growth Investors U.S. Large Cap Growth Fund

Portfolio Holdings as of March 31, 2010

Cost

Value

Holdings by Category

($)

.6%

Common Stock

178,526,298

211,834,723

.6%

Other Investment Companies

3,345,290

3,399,309

100

.2%

Total Investments

181,871,588

215,234,032

.2)%

Other Assets and Liabilities, Net

(362,003

)

100

.0%

Net Assets

214,872,029


	Number		Value
Security	of Shares		($)

Common Stock 98.6% of net assets

Capital Goods 6.8%
General Dynamics Corp.		31,900		2,462,680
Illinois Tool Works, Inc.		73,300		3,471,488
Parker Hannifin Corp.		52,100		3,372,954
United Technologies Corp.		72,900		5,366,169

				14,673,291

Commercial & Professional Supplies 1.4%
Verisk Analytics, Inc., Class A *		105,600		2,977,920

Consumer Services 6.5%
DeVry, Inc.		31,400		2,047,280
International Game Technology		256,000		4,723,200
McDonald’s Corp.		107,000		7,139,040

				13,909,520

Diversified Financials 8.8%
BlackRock, Inc.		18,600		4,050,336
CME Group, Inc.		14,800		4,678,428
IntercontinentalExchange, Inc. *		35,100		3,937,518
JPMorgan Chase & Co.		86,800		3,884,300
MSCI, Inc., Class A *		66,600		2,404,260

				18,954,842

Energy 4.3%
Baker Hughes, Inc.		42,400		1,986,016
EOG Resources, Inc.		25,300		2,351,382
Southwestern Energy Co. *		93,800		3,819,536
Suncor Energy, Inc.		34,700		1,129,138

				9,286,072

Food & Staples Retailing 1.6%
Wal-Mart Stores, Inc.		62,100		3,452,760

Food, Beverage & Tobacco 2.2%
Kellogg Co.		89,000		4,755,270

Health Care Equipment & Services 10.8%
Alcon, Inc.		22,400		3,618,944
Covidien plc		132,700		6,672,156
Express Scripts, Inc. *		54,000		5,495,040
Medco Health Solutions, Inc. *		44,800		2,892,288
Zimmer Holdings, Inc. *		76,700		4,540,640

				23,219,068

Household & Personal Products 2.3%
Colgate-Palmolive Co.		38,400		3,273,984
The Procter & Gamble Co.		25,500		1,613,385

				4,887,369

Materials 2.7%
Praxair, Inc.		70,200		5,826,600

Media 2.6%
Comcast Corp., Class A		92,800		1,746,496
Time Warner Cable, Inc.		72,900		3,886,299

				5,632,795

Pharmaceuticals, Biotechnology & Life Sciences 7.4%
Allergan, Inc.		118,500		7,740,420
Amgen, Inc. *		55,800		3,334,608
Johnson & Johnson		31,600		2,060,320
Talecris Biotherapeutics Holdings Corp. *		133,916		2,667,607

				15,802,955

Retailing 7.3%
Amazon.com, Inc. *		52,800		7,166,544
CarMax, Inc. *		51,000		1,281,120
Priceline.com, Inc. *		9,800		2,499,000
The Sherwin-Williams Co.		68,700		4,649,616

				15,596,280

Software & Services 16.4%
Adobe Systems, Inc. *		87,200		3,084,264
Google, Inc., Class A *		16,200		9,185,562
MasterCard, Inc., Class A		33,500		8,509,000
Oracle Corp.		175,900		4,518,871
Red Hat, Inc. *		54,900		1,606,923
Visa, Inc., Class A		92,600		8,429,378

				35,333,998

8 See financial notes

Laudus Growth Investors U.S. Large Cap Growth Fund

Portfolio Holdings continued


	Number		Value
Security	of Shares		($)

Technology Hardware & Equipment 14.1%
Apple, Inc. *		62,400		14,659,632
Cisco Systems, Inc. *		309,700		8,061,491
QUALCOMM, Inc.		182,300		7,654,777

				30,375,900

Telecommunication Services 0.8%
American Tower Corp., Class A *		39,300		1,674,573

Transportation 2.6%
Union Pacific Corp.		74,700		5,475,510

Total Common Stock (Cost $178,526,298)				211,834,723




Other Investment Companies 1.6% of net assets


iShares Russell 1000 Growth Index Fund		20,000		1,039,000
State Street Institutional Liquid Reserves Fund - Institutional Class		2,360,309		2,360,309

Total Other Investment Companies (Cost $3,345,290)				3,399,309



End of Investments.

At 03/31/10, the tax basis cost of the fund’s investments was $184,217,233 and the unrealized appreciation and depreciation were $31,769,772 and ($752,973), respectively, with a net unrealized appreciation of $31,016,799.


*		Non-income producing security.

See financial notes 9

Laudus Growth Investors U.S. Large Cap Growth Fund

Statement of

Assets and Liabilities

As of March 31, 2010.



Assets

Investments, at value (cost $181,871,588)		$215,234,032
Receivables:
Investments sold		4,298,173
Fund shares sold		654,813
Dividends		78,572
Foreign tax reclaims		3,053
Interest		332
Prepaid expenses	+	6,002

Total assets		220,274,977

Liabilities

Payables:
Investments bought		5,190,451
Fund shares redeemed		93,998
Investment adviser fees		6,935
Trustees’ fees		48
Accrued expenses	+	111,516

Total liabilities		5,402,948

Net Assets

Total assets		220,274,977
Total liabilities	−	5,402,948

Net assets		$214,872,029

Net Assets by Source
Capital received from investors		199,351,085
Net investment income not yet distributed		88,405
Net realized capital losses		(17,929,905	)
Net unrealized capital gains		33,362,444

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$214,872,029

19,137,226

$11.23

10 See financial notes

Laudus Growth Investors U.S. Large Cap Growth Fund

Statement of

Operations


		For July 1, 2009		For July 1, 2008
		through		through
		March 31, 2010*		June 30, 2009*

Investment Income

Dividends (net of foreign withholding taxes of $8,272 and $6,278 respectively)			1,040,813		1,066,196
Interest	+		2,864		29,440

Total investment income			1,043,677		1,095,636

Expenses

Investment adviser fees			810,453		692,565
Sub-Accounting and sub-transfer agent fees			115,476		—
Service and distribution fees			—		88,732
Transfer agent fees			65,979		140,296
Shareholder reports			45,346		31,497
Professional fees			40,745		87,266
Registration fees			37,902		31,861
Accounting and administration fees			16,587		—
Custodian and fund accounting fees			—		49,943
Trustees’ fees			8,240		17,048
Custodian fees			7,661		—
Interest expense			611		—
Other expenses	+		20,018		16,146

Total expenses			1,169,018		1,155,354
Expense reduction by adviser	−		257,160		338,574
Custody credits	−		1		—

Net expenses	−		911,857		816,780

Net investment income			131,820		278,856

Realized and Unrealized Gains (Losses)

Net realized gains (losses) on investments			6,682,949		(24,070,731	)
Net realized gains on foreign currency transactions	+		21		—

Net realized gains (losses)			6,682,970		(24,070,731	)
Net unrealized gains (losses) on investments	+		31,942,374		(4,813,074	)

Net realized and unrealized gains (losses)			38,625,344		(28,883,805	)

Net increase (decrease) in net assets resulting from operations			$38,757,164		($28,604,949	)


^*		Effective July 13, 2009, all outstanding Class A, B, and C shares in the UBS U.S. Large Cap Growth Fund (UBS Growth Fund) were converted to Class Y shares, and the UBS Growth Fund’s assets were acquired by Laudus Growth Investors U.S. Large Cap Growth Fund which commenced operations on that day. The Statement of Operations above includes the fiscal year ending June 30, 2009 of the UBS Growth Fund. See Financial Note item 1 for additional information.

See financial notes 11

Laudus Growth Investors U.S. Large Cap Growth Fund

Statements of

Changes in Net Assets

For the current and prior report periods.

Operations


7/1/09-3/31/10*			7/1/08-6/30/09*			7/1/07-6/30/08*
Net investment income (loss)		$131,820		$278,856			($13,862	)
Net realized gains (losses)		6,682,970		(24,070,731	)		891,947
Net unrealized gains (losses)	+	31,942,374		(4,813,074	)		2,571,813

Increase (Decrease) in net assets from operations		38,757,164		(28,604,949	)		3,449,898

Distributions to Shareholders¹

Distributions from net investment income
Class A		50,259		—			—
Class B		—		—			—
Class C		—		—			—
Class Y	+	299,973		—			72,391

Total distributions from net investment income		350,232					72,391
Distributions from net realized gains
Class A		—		—			70,792
Class B		—					9,693
Class C		—		—			15,221
Class Y	+	—		—			454,792

Total distributions from net realized gains		—		—			550,498

Total distributions		$350,232		$—			$622,889

Transactions in Fund Shares¹


		7/1/09-3/31/10					7/1/08-6/30/09					7/1/07-6/30/08
			SHARES		VALUE			SHARES		VALUE			SHARES		VALUE
Shares sold
Class A			236		$1,959			3,042,724		$25,570,504			713,802		$8,049,829
Class B			—		—			46,217		306,125			117,641		1,282,756
Class B converted to Class A			—		—			38,552		321,670			13,732		153,293
Class C			—		—			539,216		3,773,950			219,338		2,384,536
Class Y	+		16,983,931		$162,907,767			3,012,731		30,246,611			3,578,888		41,642,224

Total shares sold			16,984,167		$162,909,726			6,679,440		$60,218,860			4,643,401		$53,512,638
Shares reinvested
Class A			5,360		$42,776			—		$—			6,091		$69,505
Class B			—		—			—		—			865		9,443
Class C			—		—			—		—			1,379		15,058
Class Y	+		32,061		273,426			—		—			45,026		526,357

Total shares reinvested			37,421		$316,202			—		$—			53,361		$620,363
Shares redeemed
Class A			(2,945,996	)	($23,562,231	)		(1,394,928	)	($10,782,023	)		(373,264	)	($4,188,612	)
Class B			(76,268	)	(578,141	)		(49,237	)	(358,469	)		(5,273	)	(53,526	)
Class B converted to Class A			—		—			(40,705	)	(321,670	)		(14,271	)	(153,293	)
Class C			(552,156	)	(4,188,832	)		(267,981	)	(1,967,226	)		(35,903	)	(374,486	)
Class Y	+		(4,137,162	)	(42,606,803	)		(3,404,834	)	(28,444,522	)		(2,688,319	)	(31,027,672	)

Total shares redeemed			(7,711,582	)	($70,936,007	)		(5,157,685	)	($41,873,910	)		(3,117,030	)	($35,797,589	)

Net transactions in fund shares			9,310,006		$92,289,921			1,521,755		$18,344,950			1,579,732		$18,335,412

Shares Outstanding and Net Assets

		7/1/09-3/31/10					7/1/08-6/30/09					7/1/07-6/30/08
			SHARES		NET ASSETS			SHARES		NET ASSETS			SHARES		NET ASSETS
Beginning of period			9,827,220		$84,175,176			8,305,465		$94,435,175			6,725,733		$73,272,754
Total increase or decrease	+		9,310,006		130,696,853			1,521,755		(10,259,999	)		1,579,732		21,162,421

End of period			19,137,226		$214,872,029			9,827,220		$84,175,176			8,305,465		$94,435,175

Net investment income not yet distributed					$88,405					$279,106					$—


^*		Effective July 13, 2009, all outstanding Class A, B, and C shares in the UBS U.S. Large Cap Growth Fund (UBS Growth Fund) were converted to Class Y shares, and the UBS Growth Fund’s assets were acquired by Laudus Growth Investors U.S. Large Cap Growth Fund which commenced operations on that day. The Statement of Changes above present the fiscal year ending June 30, 2009 and June 30, 2008 of the UBS Growth Fund. See Financial Note item 1 for additional information.
¹		Effective July 13, 2009, all outstanding Class A Shares (2,932,035 shares valued at $23,450,301), Class B Shares (76,106 shares valued at $576,853) and Class C Shares (549,985 shares valued at $4,171,940) combined with Class Y Shares, resulting in a single class of shares of the fund.

12 See financial notes

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes

1. Business Structure of the Fund:

Laudus Growth Investors U.S. Large Cap Growth Fund is a series of the Laudus Trust, (the “Trust”), an open-end management investment company. The Trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the Funds in the Trust including the fund discussed in this report, which is highlighted:



Laudus Growth Investors U.S. Large Cap Growth Fund Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund		Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund

Effective July 13, 2009, pursuant to an Agreement and Plan of Reorganization approved by shareholders of the UBS U.S. Large Cap Growth Fund (“UBS Growth Fund”), the assets and liabilities of the UBS Growth Fund were acquired by the Laudus Growth Investors U.S. Large Cap Growth Fund (“Laudus Growth Investors Fund”). Shareholders of the UBS Growth Fund then received shares of the Laudus Growth Investors Fund equal in value to their investment in the UBS Growth Fund.

The Laudus Growth Investors Fund commenced its operations on July 13, 2009.

The Laudus Growth Investors Fund offers one share of class. Prior to the reorganization, the UBS Growth Fund offered four share classes: Class A, Class B, Class C and Class Y. As of July 13, 2009, all outstanding Class A, B and C shares converted into Class Y shares. Immediately after and as a result of the conversion, each shareholder of Class A, B and C became an owner of Class Y shares.

The Fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the Fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the Fund uses in its preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation

The Fund values the securities in its portfolio every business day. The Fund uses the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value the Fund’s securities when market prices are not “readily available” or are unreliable. For example, the Fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The Fund makes fair value determinations in good faith in accordance with the Fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the Fund pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values as determined by the underlying Fund in accordance with the 1940 Act for a given day.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements).

The Fund adopted the authoritative guidance under GAAP on determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly. Accordingly, if the Fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The guidance establishes three levels of the fair value hierarchy as follows:


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The Fund does not adjust the quoted price for such investments, even in situations where the Fund holds a large position and a sale could reasonably impact the quoted prices.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the fund values its holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the Fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the Fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Fund in the absence of market information. Assumptions used by the Fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations.

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

Laudus Growth Investors U.S. Large Cap Growth Fund


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*

Common Stock(a)		$211,834,723		$—		$—		$211,834,723
Other Investment Companies		3,399,309		—		—		3,399,309

Total		$215,234,032		$—		$—		$215,234,032


*		The Fund had no Other Financial Investments.
(a)		As categorized in Portfolio Holdings.

(b) Security Transactions:

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. The Fund does not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuation in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

(c) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the Fund may record certain foreign security dividends on the day it learns of the ex-dividend date.

(d) Expenses:

Expenses that are specific to the Fund are charged directly to the Fund. Expenses that are common to all Funds within the Trust generally are allocated among the Funds in proportion to their average daily net assets.

(e) Distributions to Shareholders:

The Fund makes distributions from net investment income and net realized capital gains, if any, once a year.

(f) Custody Credit:

The Fund has an arrangement with its custodian bank, State Street Bank and Trust Company, under which the Fund receives a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts, if any, are disclosed in the Statement of Operations as a reduction to the Fund’s operating expenses.

(g) Accounting Estimates:

The accounting policies described in this report conform to accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates.

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes (continued)

2. Significant Accounting Policies (continued):

(h) Federal Income Taxes:

The Fund intends to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the Fund distributes substantially all of their net investment income and realized net capital gains, if any, to its respective shareholders each year. As long as the Fund meets the tax requirements, it is not required to pay federal income tax.

(i) Indemnification:

Under the Fund’s organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business the Fund enters into contracts with its vendors and others that provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects the risk of loss to be remote.

3. Risk factors:

Investing in the Fund may involve certain risks, as described in the Fund’s prospectus, including, but not limited to, those described below:

An investment in the Fund involves risks similar to those of investing in common stocks directly. Just as with common stocks, the value of Fund shares may increase or decrease depending on market, economic, political, regulatory and other conditions affecting a Fund’s portfolio. These types of risks may be greater with respect to investments in securities of foreign issuers. Investment in shares of the Fund is, like an investment in common stocks, more volatile and risky than some other forms of investment.

Stocks of large-size companies tend to go in and out of favor based on market and economic conditions. As a result, during a period when these stocks fall behind other types of investments — bonds or stocks of mid- or small-size companies, for instance — the fund’s performance also will lag those investments.

Growth stocks can be volatile for several reasons. Since growth companies usually invest a high portion of their earnings in their business, they may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuers’ future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.

Please refer to the Fund’s prospectus for a more complete description of the principal risks of investing in the Fund.

4. Affiliates and Affiliated Transactions:

The Trust’s Board of Trustees oversees the general conduct of the Trust and the Fund.

Charles Schwab Investment Management, Inc. (“CSIM” or the “Investment Adviser”), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the Fund’s investment adviser pursuant to an Investment Advisory Agreement (“Advisory Agreement”) between it and the Trust. UBS Global Asset Management (Americas) Inc. (“UBS Global AM”), the Fund’s sub-adviser, provides day-to-day portfolio management services to the Fund, subject to the supervision of CSIM.

For its advisory services to the Fund, CSIM is entitled to receive an annual fee, payable monthly, based on the Fund’s average daily net assets described as follows.


Average daily net assets

First $500 million			0.70%
$500 million to $1 billion			0.65%
$1 billion to $1.5 billion			0.60%
$1.5 billion to $2 billion			0.575%
Over $2 billion			0.55%

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes (continued)

4. Affiliates and Affiliated Transactions (continued):

CSIM (not the Fund) pays a portion of the management fees it receives to UBS Global AM in return for its services.

CSIM has contractually agreed, until at least July 30, 2012, to waive a portion of its management fee and bear certain expenses of the Fund. As such, CSIM further agrees to reimburse the Fund to limit the annual expenses to 0.78% of the Fund’s average daily net assets value, 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

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, 2010, the balance of recoupable expenses is $257,160 expiring March 31, 2012.

The Fund may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the period ended March 31, 2010, the Fund paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.

5. Transfer Agent and Shareholders Services:

Boston Financial Data Services, Inc. (“BFDS”) provides the transfer agent services to the Fund, and receives transfer agent fees from the Fund as shown in the Statement of Operations.

The Trust has authorized the Fund to pay up to 0.10% of its average daily net assets attributable to its fund shares for sub-transfer agent and sub-accounting services in connection with such shares.

6. Board of Trustees:

Trustees may include people who are officers and/or directors of the investment adviser or Charles Schwab & Co., Inc. (“Schwab”). Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of the interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted in the Fund’s Statement of Operations.

Until September 2006, a Retirement Plan existed for the independent trustees. After the termination of the Retirement Plan, the previously accrued and unpaid benefits continue to be adjusted by performance of the Fund. As a result, the amount of the Retirement Payable to any independent trustee may increase or decrease based on the performance of the Fund.

7. Borrowing from Banks:

The Fund has access to custodian overdraft facilities and to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Bank and Trust Company. Interest is calculated based on the market rates at the time of borrowing.

There were no borrowings from the line of credit by the Fund during the period. However, the Fund utilized its overdraft facility and incurred interest expense, which is disclosed in the Statement of Operations. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

8. Purchases and Sales of Investment Securities:

For the period ended March 31, 2010, purchases and sales of securities (excluding short-term securities) were as follows:

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes (continued)

9. Redemption Fee:

The Fund charges a 2.00% redemption fee on shares sold or exchanged within 30 days of the original purchase date. Such amounts are netted against the redemption proceeds on the Statement of Changes in Net Assets. Prior to July 13, 2009, the redemption fee was 1% for shares sold or exchanged within 90 days of their purchase date, subject to limited exceptions. The redemption fees charged during the current and prior periods are:


Current Period		Prior Period		Prior Period
(7/1/09-3/31/10)		(7/1/08-6/30/09)		(7/1/07-6/30/08)
	$11,780		$21,887		$4,703

10. Federal Income Taxes:

As of March 31, 2010, the components of distributable earnings on a tax-basis were as follows:


Undistributed ordinary income	$88,406
Undistributed long-term capital gains	—
Unrealized appreciation on investments	31,769,773
Unrealized depreciation on investments	(752,973	)
Other unrealized appreciation/(depreciation)	—

Net unrealized appreciation/(depreciation)	$31,016,800

The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales.

Capital loss carry forwards may be used to offset future realized capital gains, if any for federal income tax purposes. As of March 31, 2010, the fund had capital loss carry forwards available to offset net capital gains before the expiration dates:


Expiration Date

March 31, 2016			$802,768
March 31, 2017			14,781,493

Total			$15,584,261

For tax purposes, realized net capital losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2010, the Fund had aggregate deferred realized net capital losses and capital losses utilized as follows:


Capital losses deferred			$—
Capital losses utilized			6,604,158

Laudus Growth Investors U.S. Large Cap Growth Fund

Financial Notes (continued)

10. Federal Income Taxes (continued):

The tax-basis components of distributions paid during the current and prior periods were:


Current period distributions
Ordinary income	$350,232	*
Long-term capital gains	—
Return of capital	—
Year ended June 30, 2009 distributions**
Ordinary income	$—
Long-term capital gains	—
Return of capital	—
Year ended June 30, 2008 distributions**
Ordinary income	$72,391
Long-term capital gains	550,498
Return of capital	—


*		$279,215 was distributed out of UBS U.S. Large Cap Growth Fund in the current period prior to its acquisition by Laudus Growth Investors Fund.
**		These distributions represent those of the UBS U.S. Large Cap Growth Fund.

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses, short-term capital gains and losses; capital losses related to wash sales, unrealized appreciation of certain investments in non-U.S. securities; paydowns on fixed-income securities; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the Fund for financial reporting purposes. The Fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.


Capital shares	($27,690	)
Undistributed net investment income	27,711
Net realized capital gains/losses	(21	)

As of March 31, 2010, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and state purpose, four years from the date of filing), as applicable to the Fund, and has determined that no provision for income tax is required in the Fund’s financial statement. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended March 31, 2010, the Fund did not incur any interest or penalties. The Fund is not subject to examination by U.S. federal tax authorities and state tax authorities for tax year before 2009.

11. Subsequent Events:

Management has determined there are no subsequent events or transactions that would have materially impacted the financial statements as presented.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of:

Laudus Growth Investors U.S. Large Cap Growth Fund

In our opinion, the accompanying statement of assets and liabilities, including the portfolio holdings, 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 Growth Investors U.S. Large Cap Growth Fund (one of the portfolios constituting Laudus Trust, hereafter referred to as the “Fund”) at March 31, 2010, the results of its operations, the changes in its net assets and the financial highlights for the period then ended, 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 Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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 audit 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 audit, which included confirmation of securities at March 31, 2010 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

The statement of operations for the year ended June 30, 2009, the statement of changes in net assets for each of the two years in the period ended June 30, 2009, and the financial highlights for each of the five years in the period ended June 30, 2009 were audited by other auditors whose report dated August 27, 2009 expressed an unqualified opinion on those statements and financial highlights.

PricewaterhouseCoopers LLP

San Francisco, California

May 17, 2010

Trustees and Officers

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Mariann Byerwalter 1960 Trustee (Trustee of Laudus Trust since 2004.)	Chairman of JDN Corporate Advisory LLC.	77	Director, Redwood Trust, Inc. (1998 – present) Director, PMI Group Inc. (2001 – 2009) Director, Excelsior Funds (2006 – 2007)


John F. Cogan 1947 Trustee (Trustee of Laudus Trust since 2010.)	Senior Fellow: The Hoover Institution at Stanford University (Oct. 1979 – present); Senior Fellow Stanford Institute for Economic Policy Research; Professor of Public Policy, Stanford University (Sept. 1994 – present).	77	Director, Gilead Sciences, Inc. (2005 – present) Director, Monaco Coach Corporation (2005 – 2009)


William A. Hasler 1941 Trustee (Trustee of Laudus Trust since 2004.)	Dean Emeritus, Haas School of Business, University of California, Berkeley (July 1998 – present).	77	Director, Ditech Networks Corporation (1997 – present) Director, TOUSA (1998 – present) Director, Mission West Properties (1998 – present) Director, Globalstar, Inc. (2009 – present) Director, Harris-Stratex Networks (2001 – present) Director, Aphton Corp. (1991 – 2007) Director, Solectron Corporation (1998 – 2007) Director, Genitope Corporation (2000 – 2009) Director, Excelsior Funds (2006 – 2007)


Gerald B. Smith 1950 Trustee (Trustee of Laudus Trust since 2010.)	Chairman, Chief Executive Officer and Founder of Smith Graham & Co. (investment advisors) (1990 – present).	77	Lead Independent Director, Board of Cooper Industries (2002 – present) Director and Chairman of the Audit Committee, Oneok Partners LP (2003 – present) Director, Oneok, Inc (2009 – present)


Donald R. Stephens 1938 Trustee (Trustee of Laudus Trust since 2010.)	Managing Partner, D.R. Stephens & Company (investments) (1973 – present).	77	None


Joseph H. Wender 1944 Trustee (Trustee of Laudus Trust since 2010.)	Senior Consultant, Goldman Sachs & Co., Inc. (Jan. 2008-present); Partner, Colgin Partners, LLC (vineyards) (February 1998 – present); Senior Director, Chairman of the Finance Committee, GSC Group (July 2005 – Dec. 2007); General Partner, Goldman Sachs & Co., Inc. (Oct. 1982 – June 2005).	77	Board Member and Chairman of the Audit Committee, Isis Pharmaceuticals (1994 – present)

Independent Trustees (continued)


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Michael W. Wilsey 1943 Trustee (Trustee of Laudus Trust since 2010.)	Chairman and Chief Executive Officer, Wilsey Bennett, Inc. (real estate investment and management, and other investments).	77	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Charles R. Schwab²1937 Chairman and Trustee (Chairman and Trustee of Laudus Trust since 2010.)	Founded Charles Schwab & Co., Inc. in 1971 and became Chairman in 1978. Since 1986, Chairman and Director, The Charles Schwab Corporation. Since 1989, Director, Charles Schwab Investment Management, Inc., and appointed as Chairman in 1991. Since 1996, Chairman and Chief Executive Officer, Schwab (SIS) Holdings Inc. I and Schwab International Holdings, Inc. Since 1999, Director and Chief Executive Officer, Schwab Holdings, Inc. Since 2003, Chairman, Charles Schwab Bank, N. A.; Through June 2007, Director, U.S. Trust Company, N. A., U.S. Trust Corporation, United States Trust Company of New York. Until October 2008, Chief Executive Officer, The Charles Schwab Corporation, and the Charles Schwab & Co., Inc.	77	None


Walter W. Bettinger II²1960 Trustee (Trustee of Laudus Trust since 2010.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc., principal underwriter to the Funds, and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	85	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

George Pereira 1964 Treasurer and Chief Financial Officer (Officer of Laudus Trust since 2006.)		Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc. (November 2004 – present); Treasurer and Principal Financial Officer, Schwab Funds and Schwab ETFs (2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (Sept. 2002 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Jeffrey Mortimer 1963 President, Chief Executive Officer and Chief Investment Officer (President and CEO since 2008, CIO since 2004.)		Senior Vice President and Chief Investment Officer, Charles Schwab Investment Management, Inc. and Schwab Funds (2004 – present); Senior Vice President and Chief Investment Officer, Schwab ETFs (2009 – present).


Koji E. Felton 1961 Vice President and Assistant Clerk (Officer of Laudus Trust since 2010.)		Senior Vice President, Chief Counsel and Corporate Secretary, Charles Schwab Investment Management, Inc. (July 2000 – present); Senior Vice President and Deputy General Counsel, Charles Schwab & Co., Inc. (June 1998 – present); Secretary and Chief Legal Officer, Schwab Funds (Nov. 1998 – present); Secretary and Chief Legal Officer, Schwab ETFs (Oct. 2009 – present); Chief Legal Officer and Secretary, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Catherine MacGregor 1964 Chief Legal Officer, Vice President and Clerk (Officer of Laudus Trust since 2005.)		Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President, Schwab Funds (2005 – present), Vice President of Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Laudus Trust since 2005)		Vice President, Asset Management Client Services, Charles Schwab & Co., Inc. (2004 – present); Vice President, Schwab Funds (2005 – present); Vice President, Schwab ETFs (Oct. 2009 – present).


¹		Trustees remain in office until they resign, retire or are removed by shareholder vote. The Laudus Funds retirement policy requires that independent trustees elected after January 1, 2000 retire at age 72 or after 20 years of service as a trustee, whichever comes first, provided that any trustee who serves on both Schwab Funds and Laudus Funds retires from both boards when first required to retire by either board. Independent trustees elected prior to January 1, 2000 will retire on the following schedule: Messrs. Stephens and Wilsey will retire on December 31, 2010.
²		Messrs. Schwab and Bettinger are Interested Trustees because they are employees of Schwab and/or the investment adviser. In addition to their employment with Schwab and/or the investment adviser, Messrs. Schwab and Bettinger also own stock of The Charles Schwab Corporation.
³		The President, Treasurer and Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

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.

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 divided by its reported cash flow per share.

Proxy Voting

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2009 is available without charge, upon request by visiting www.ubs.com, or the Securities and Exchange Commission’s website at www.sec.gov. All future proxy vote records will be available at www.laudus.com.

Quarterly Disclosure of Portfolio Holdings

PRIVACY NOTICE
THIS IS NOT PART OF THE SHAREHOLDER REPORT

A Commitment to Your Privacy

Your Privacy Is Not for Sale

We do not and will not sell your personal information to anyone, for any reason.

How We Collect Information About You

We collect personal information about you in a number of ways.


•	APPLICATION AND REGISTRATION INFORMATION.


•	TRANSACTION AND EXPERIENCE INFORMATION.


•	WEBSITE USAGE.

How We Share and Use Your Information

We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:


•	to help us process transactions for your account;

•	when we use other companies to provide services for us, such as printing and mailing your account statements;

•	when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control)

State Laws

We will comply with state laws that apply to the disclosure or use of information about you.

Safeguarding Your Information — Security Is a Partnership

We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.

We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.

We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Contact Us

To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.

Laudus Funds^® direct investors: 1-800-447-3332

Item 2: Code of Ethics.

(a)

Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party.

(c)

During the period covered by the report, no amendments were made to the provisions of this code of ethics.

(d)

During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics.

(f)(1)

Registrant has filed this code of ethics as an exhibit pursuant to Item 11(a)(1) of Form N-CSR.

Item 3: Audit Committee Financial Expert.

Registrant’s Board of Trustees has determined that William Hasler and Mariann Byerwalter, currently serving on its audit committee, are “audit committee financial experts,” as such term is defined in Item 3 of Form N-CSR. Each of these members of Registrant’s audit committee is “independent” under the standards set forth in Item 3 of Form N-CSR.

The designation of each of Mr. Hasler and Ms. Byerwalter as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit committee or Board of Trustees.

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

2010: $211,347 2009: $316,053

(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:

2010: $52,435 2009: 51,540

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:

2010: $109,870 2009: $154,620

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:

2010: NONE 2009: NONE


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.

2010: $162,305 2009: $206,160

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.

2010: NONE 2009: NONE

(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit 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, Jeffrey Mortimer 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/ Jeffrey Mortimer
	Jeffrey Mortimer
	President and Chief Executive Officer

Date: 5/11/2010

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/ Jeffrey Mortimer
	Jeffrey Mortimer
	President and Chief Executive Officer

Date: 5/11/2010



By:	/s/ George Pereira
	George Pereira
	Principal Financial Officer

Date: 5/11/2010


/s/ Jeffrey Mortimer Jeffrey Mortimer		Date: 5/11/2010
President and Chief Executive Officer

/s/ George Pereira		Date: 5/11/2010
George Pereira
Principal Financial Officer

	•		Be fair, empathetic and responsive in serving our shareholders.

	•		Strive relentlessly to innovate what we do and how we do it.

	•		Always earn and be worthy of our shareholders’ trust.

	•		You will act in accordance with applicable laws and regulations and will not tolerate behavior that is otherwise.

	•		You will make public disclosures as required by law and regulation and as deemed appropriate to enable reasonable evaluation of the Laudus Funds.

	•		You will strive to provide an equitable return for our investors.

	•		You will provide products and services designed to help shareholders achieve their financial goals.

	•		You will conduct business fairly, in open competition.

	•		You will not take any action that will violate any applicable law or regulation.

	•		You will adhere to the highest standards of ethical conduct.

	•		You will maintain the confidentiality of all information you obtain in the course of your employment.

	•		You will escalate issues which you reasonably believe may place the Laudus Funds at risk, and report any behavior you reasonably believe is wrong.

	•		You will not abuse or take the Laudus Funds’ assets or use them for your personal gain.

	•		You will not engage in any activities that create a conflict of interest (as defined below) between you and the Laudus Funds.

	•		You will comport yourself publicly in a manner that does not bring discredit on the Laudus Funds.

	•		You will deal fairly with shareholders, colleagues and others.

	•		You will comply with this Code.

	•		Offering or paying bribes or other financial incentives, including offering future employment or contracts for non-audit services;

	•		Providing an auditor with inaccurate or misleading legal analysis;

	•		Threatening to cancel or canceling existing non-audit or audit engagements if the auditor objects to the issuer’s accounting;

	•		Seeking to have a partner removed from the audit engagement because the partner objects to the Laudus Funds’ accounting;

	•		Blackmailing; and

	•		Making physical threats.

	•		If you have a reasonable belief that a violation has occurred, or may occur, you must report the conduct to the Chief Legal Officer.

	•		The Chief Legal Officer will take all appropriate action to investigate any potential violation reported to the Chief Legal Officer and will notify counsel for Laudus Funds independent Trustees (“Trustees”) and counsel for the Laudus Funds of the substance of the potential violation.

	•		If after investigation, the Chief Legal Officer reasonably believes that no violation has occurred, the Chief Legal Officer is not required to take any further action.

	•		Any matter that the Chief Legal Officer believes is a violation will be reported to the Trustees.

	•		If the Trustees concur that a violation has occurred, the Trustees will consider appropriate action, which may include review of, and appropriate modification to, applicable policies and procedures; notification to appropriate personnel of CSIM or its board; notification to appropriate personnel of the Charles Schwab Corporation or its board; or a recommendation to dismiss the Officer.

	•		Read and be familiar with conduct rules outlined in this Code and periodically review them.

	•		Affirm in writing to the Trustees that the Officer has received, read and understands the Code.

	•		Annually affirm to the Trustees that the Officer has complied with the requirements of the Code.

	•		Comply with the conduct standards outlined in this Code in all dealings and actions, including those with shareholders, the public and vendors.

	•		Report in a timely manner to the Chief Legal Officer any conduct that may constitute a violation of the Code, Laudus Funds policies, or laws, rules and regulations.

	•		Raise questions or concerns about conduct issues with your supervisor, the Chief Legal Officer or Chief Compliance Officer, and seek advice when in doubt.

	•		Cooperate with management during fact-finding investigations and comply with any confidentiality rules imposed.

	•		Review the Code annually and recommend any changes.

	•		Review the Officer reports of compliance with the Code.