-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JyGUb2dR5YGicQOAR3ZaJR/l0thWhO7ooShi/McUl1Y0I6HU8TRAkRvVH2sWBlW8 zZbVrDnkleo1PsKsvqzxnQ== 0000950134-07-012308.txt : 20070525 0000950134-07-012308.hdr.sgml : 20070525 20070524194331 ACCESSION NUMBER: 0000950134-07-012308 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070331 FILED AS OF DATE: 20070525 DATE AS OF CHANGE: 20070524 EFFECTIVENESS DATE: 20070525 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAUDUS TRUST CENTRAL INDEX KEY: 0000832545 IRS NUMBER: 680163788 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05547 FILM NUMBER: 07878358 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 800-447-3332 MAIL ADDRESS: STREET 1: 101 MONTGOMERY STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94104 FORMER COMPANY: FORMER CONFORMED NAME: BARR ROSENBERG SERIES TRUST DATE OF NAME CHANGE: 19961003 FORMER COMPANY: FORMER CONFORMED NAME: ROSENBERG SERIES TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ROSENBERG SMALL CAPITALIZATION FUND DATE OF NAME CHANGE: 19881030 0000832545 S000010850 Laudus Rosenberg U.S. Small Capitalization Fund C000030086 Institutional Shares USCIX C000030087 Investor Shares BRSCX C000030088 Advisor Shares LIFUX 0000832545 S000010851 Laudus Rosenberg U.S. Large Capitalization Value Fund C000030089 Investor Shares LCVJX C000030090 Institutional Shares LLCVX 0000832545 S000010852 Laudus Rosenberg U.S. Discovery Fund C000030091 Investor Shares RDIVX C000030092 Institutional Shares RDISX 0000832545 S000010853 Laudus Rosenberg U.S. Large Capitalization Fund C000030093 Investor Shares AXLVX C000030094 Institutional Shares AXLIX 0000832545 S000010854 Laudus Rosenberg U.S. Large Capitalization Growth Fund C000030095 Investor Shares REFIX C000030096 Institutional Shares REDIX 0000832545 S000010855 Laudus Rosenberg International Equity Fund C000030097 Investor Shares RIEIX C000030098 Institutional Shares REQIX 0000832545 S000010856 Laudus Rosenberg International Small Capitalization Fund C000030099 Investor Shares RISIX C000030100 Institutional Shares ICSIX 0000832545 S000010857 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund C000030101 Investor Shares RMNIX C000030102 Institutional Shares SSMNX 0000832545 S000010858 Laudus Rosenberg Value Long/Short Equity Fund C000030103 Investor Shares BRMIX C000030104 Institutional Shares BMNIX 0000832545 S000010859 Laudus Rosenberg Global Long/Short Equity Fund C000030105 Investor Shares RMSIX C000030106 Institutional Shares MSMNX 0000832545 S000010958 Laudus Rosenberg U.S. Long/Short Equity Fund C000030314 Investor Shares C000030315 Institutional Shares 0000832545 S000011328 Laudus Rosenberg International Discovery Fund C000031365 Investor Shares LIDIX C000031366 Institutional Shares LIDSX N-CSR 1 f29507nvcsr.txt FORM N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-05547 The Laudus Trust ----------------------------------------------- (Exact name of registrant as specified in charter) 101 Montgomery Street, San Francisco, California 94104 ------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Evelyn Dilsaver The Laudus Trust ----------------- 101 Montgomery Street, San Francisco, California 94104 ----------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (415) 636-7000 Date of fiscal year end: March 31 Date of reporting period: March 31, 2007 ANNUAL REPORT March 31, 2007 (LAUDUS FUNDS LOGO) COMMAND PERFORMANCE(TM) U.S. EQUITY FUNDS Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Growth Fund Laudus Rosenberg U.S. Large Capitalization Value Fund Laudus Rosenberg U.S. Discovery Fund (closed to new investors) Laudus Rosenberg U.S. Small Capitalization Fund (closed to new investors) INTERNATIONAL EQUITY FUNDS Laudus Rosenberg International Equity Fund Laudus Rosenberg International Discovery Fund Laudus Rosenberg International Small Capitalization Fund (closed) LONG/SHORT EQUITY FUNDS Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund Laudus Rosenberg Global Long/Short Equity Fund Laudus Rosenberg Value Long/Short Equity Fund Each of the Funds is a series of Laudus Trust, which is an open-end management investment company offering diversified portfolios with different investment objectives and strategies. Charles Schwab Investment Management, Inc. is the Adviser to the Funds and AXA Rosenberg Investment Management LLC is the Sub-adviser. Table of Contents 1 PRESIDENT'S MESSAGE 2 MANAGEMENT'S DISCUSSION 13 PERFORMANCE AND FUND FACTS 30 FUND EXPENSES 32 PORTFOLIO HOLDINGS 130 FINANCIAL STATEMENTS AND NOTES 157 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 158 TRUSTEES AND OFFICERS OF LAUDUS TRUST 163 DEFINITIONS, TERMS AND OTHER INFORMATION
Nothing in this report represents a recommendation of a security by the investmentadviser. Portfolio Manager views and portfolio holdings may have changed since the report date. NOTICE ABOUT DUPLICATE MAILINGS In order to reduce expenses of the Laudus Trust incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Laudus Trust may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 800.447.3332. Each of the Funds is a series of the Laudus Trust (the "Trust"), an open-end management investment company offering multiple portfolios with different investment objectives and strategies. Except as explicitly described otherwise, the investment objective and policies of each of the Funds may be changed without shareholder approval. The Funds are advised by Charles Schwab Investment Management, Inc. ("CSIM"). AXA Rosenberg Investment Management LLC ("AXA Rosenberg") acts as Sub-adviser to the Funds. The Funds are distributed by ALPS DISTRIBUTORS, INC. President's Message - -------------------------------------------------------------------------------- (PHOTO OF EVELYN DILSAVER) EVELYN DILSAVER is President and CEO of Laudus Funds. She joined the firm in 1992 and has held a variety of executive positions at Schwab. - -------------------------------------------------------------------------------- Dear Shareholder, I am pleased to present the annual report for the Laudus Rosenberg Funds for the year ended March 31, 2007. With support from investors like you, Laudus Rosenberg Funds assets exceeded $4.6 billion as of this report date. The Laudus Rosenberg Funds are sub-advised by AXA Rosenberg, one of the world's premier equity specialists and institutional money managers. The funds employ the kind of highly consistent investment approach that is a hallmark of institutional-style investing. Since making this distinctive approach to investment management available to investment advisers and individual investors in 2004, the total assets of the Laudus Rosenberg Funds have grown by over 250%. We continue to evaluate opportunities to expand our product offering through funds that leverage this framework. To that end, I'm pleased to report that on May 31, 2006, we launched the Laudus Rosenberg International Discovery Fund which has $71 million in net assets as of the end of the report period. The fund utilizes the same investment discipline used in all of the Laudus Rosenberg Funds and provides international small/mid-cap exposure in developed and emerging markets. In closing, I would like to emphasize that your trust is very important to us and I will do all I can to maintain that trust. Thank you for investing in Laudus Funds. Sincerely, /s/ Evelyn Dilsaver Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 1-800-447-3332. Please read the prospectus carefully before investing. Laudus Trust Annual Report 1 Management's Discussion for the year ended March 31, 2007 U.S. MARKET OVERVIEW U.S. markets over the past twelve months have been struck by sharp bouts of increased volatility. In June 2006 and February 2007, markets corrected sharply following renewed concern of the durability of global economic growth. Worries surrounding the U.S. sub-prime mortgage market, uncertainty regarding the U.S. Federal Reserve Open Market Committee's next move on interest rate levels, and slowing corporate earnings in the U.S. were but a few of the concerns hanging over the markets during the past twelve months. The Open Market Committee raised the federal funds target rate to 5.25% in June 2006, a rate that has remained unchanged since then. The Federal Reserve chairman, in his most recent comments, dampened hopes that the central bank had adopted a softer policy stance by reinforcing inflation concerns and by emphasizing that the Fed would not abandon its bias towards raising interest rates. Macroeconomic data released during Q1 07 painted a somewhat mixed picture for the economy. Weak data on new homes sales and durable good orders heightened investors' fears about a sharp slowdown in economic growth. Although there was an upward revision to fourth quarter 2006 U.S. GDP, most market participants recognize that growth has been below trend for the last three quarters. Corporate earnings are anticipated to be weaker and expectations are for the slowest growth in more than three years, with consensus growth of around 4% versus the past ten quarters of double-digit growth. Continuing signs of a slow down in U.S. housing and the growing trouble in the sub-prime housing mortgage industry weighed on the market in Q1 07. Concerns grew that the steep losses in the securities backed up by sub-prime loans would increase investor risk-aversion and prompt further market losses, threatening an already troubled housing market. Sub-prime mortgages, written on properties for clients with little or no equity, continue to remain vulnerable. A number of mortgage companies, which made these loans, are seeing significant default rates and some have filed for bankruptcy, further heightening market concern. The price of oil rallied as the first quarter came to a close, driven by geo-political issues with Iran, OPEC declining to raise production targets, and renewed growth in energy demand from China -- all of which pushed the price of oil above $65 per barrel. Industrial metals such as copper, tin, and lead, after slipping during the first part of the year, rallied strongly at month-end on news of improving global demand. After a robust 2006, the mergers and acquisition environment continued at a torrid pace in the first quarter and has provided further support to the markets as announced deals in the U.S. reached $439 billion and over $1.1 trillion globally. The dollar weakened against the world's major currencies on persistent domestic economic growth concerns and news that the U.S. was initiating sanctions against selected Chinese industries. Also weighing on the dollar has been a bias towards global monetary tightening this quarter in Japan, India, China, United Kingdom, and Europe, as the dollar has become a less appealing currency relative to higher-yielding peers. U.S. EQUITY FUNDS PERFORMANCE TOTAL RETURNS are for the year ended 3/31/07. For performance details, see pages 13 through 17.
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND(1,2) - ------------------------------------------------------------ AXLIX AXLVX Russell Institutional shares Investor shares 1000 Index 11.10% 10.69% 11.84% LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND(1) - ------------------------------------------------------------ REDIX REFIX Russell 1000 Institutional shares Investor shares Growth Index 5.62% 5.36% 7.06% LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND(1,2) - ------------------------------------------------------------ LLCVX LCVJX Russell 1000 Institutional shares Investor shares Value Index 13.45% 13.22% 16.83% LAUDUS ROSENBERG U.S. DISCOVERY FUND(1,3) (Closed to new investors) - ------------------------------------------------------------ RDISX RDIVX Russell 2500 Institutional shares Investor shares Index 5.71% 5.34% 8.23%
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND(1,3) (Closed to new investors) - --------------------------------------------------------------------- USCIX LIFUX BRSCX Russell 2000 Institutional shares Adviser Investor shares Index 1.11% shares 0.75% 5.91% 0.90%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUS.COM. 2 Laudus Trust Annual Report Management's Discussion continued PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower. Investors cannot invest directly in any index. (1) Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments. (2) Value-based investments are subject to the risk that the broad market may not recognize their value. (3) Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, the Russell 1000(R) Index: the Fund's Investor Shares gained 10.69% versus the benchmark's return of 11.84%. While the Fund's exposure to risk factors provided a positive contribution, it was offset primarily by industry allocation; stock selection had little impact. Among risk factors, the Fund's overweight to earnings variation was its single largest contributor for the year, as the market rewarded companies with more-consistent earnings. Overweights to Book-to-Price and Earnings-to-Price measures -- traditional value factors and reflective of the Fund's value orientation -- also contributed, as the Fund generally held more deeply undervalued stocks than did the benchmark, and value generally outperformed growth for the reporting period. Correspondingly, the Fund's overweight to stocks demonstrating strong short-term growth was its largest drag among risk factors. An overweight to stocks with higher relative strength, an indicator of growth, also detracted. Among industries, the Fund's consistent overweight to Basic Materials & Metals throughout the year was the strongest contributor to performance. Although volatile over the year, Integrated Oil Companies posted a strong one-year return, so the Fund's substantial overweight to the industry contributed notably to returns. An overweight to Miscellaneous Finance, which includes brokerages and capital markets, also contributed for the period. The Fund's substantial underexposure to Construction & Homebuilding, one of the few negatively performing industries for the year, worked in the Fund's favor, contributing slightly as demand weakened and inventories rose. In a year in which most industries in the domestic large-cap universe posted positive returns, it is not surprising that the primary industry detractors from performance came from underweight positions. First among them was the Fund's substantial underexposure to REITs. Although the impact of this position has moderated recently, for the year REITs generally performed well. An underweight to Retail, another double-digit gainer for the year, also dampened performance, as did underweights to Drugs & Pharmaceuticals, Instruments, and Software. LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, the Russell 1000(R) Growth Index: the Fund's Investor Shares gained 5.36% versus the benchmark's return of 7.06%. While stock selection contributed slightly to performance, it was overshadowed by the impact of industry allocation. The Fund's exposure to risk factors had little net effect. Among industries, the Fund's consistent overweight to Basic Materials & Metals throughout the year was the strongest contributor to performance. An overexposure to Miscellaneous Finance, which includes brokerages and capital markets, was the Fund's second-largest industry contributor, as the economy held up well and the industry benefited over the reporting period. Overweights to Government Aircraft & Defense and Chemicals & Rubber -- although volatile over the year -- also contributed. However, in a year in which most industries in the benchmark's universe posted positive returns, it is not surprising that the primary detractors from performance came from underweight positions in positively performing industries, and such positions for the most part overshadowed the gains of the Fund's overweight positions. First among them was the Fund's underweight to the strongly performing Retail industry, which constitutes the largest component in the Fund's benchmark. And although the impact of the Fund's substantial underexposure to REITs has moderated recently, for the year REITs generally performed well, and the position hurt the Fund. The Laudus Trust Annual Report 3 Management's Discussion continued Fund's substantial underweight to Construction & Homebuilding, one of the year's few negatively performing industries, worked in its favor, contributing slightly as the industry declined as housing demand weakened and inventories rose. Among risk factors, the portfolio has more of a value orientation than its benchmark, as evidenced by its overexposures to Book-to-Price and Earnings-to-Price measures -- traditional value factors -- both of which contributed notably, as the Fund generally held more deeply undervalued stocks than did the benchmark. Stocks with more of a value-orientation generally outperformed growth for the reporting period. On the other hand, although the impact of this factor varied from quarter to quarter, the Fund's overexposure to stocks with high relative strength detracted from Fund performance over the year. Because stocks with higher relative strength tend to have better-than-average near-term earnings growth, our Earnings Forecast Model tends to favor such stocks when we find that these expectations are not fully reflected in stock prices; and the market finally rewarded this factor in the first quarter of 2007. The Fund's overweight to stocks demonstrating strong short-term growth also detracted. LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, the Russell 1000(R) Value Index: the Fund's Investor Shares gained 13.22% versus the benchmark's return of 16.83%. The Fund's underperformance was primarily attributable to its industry allocation, although exposure to risk factors and stock selection also detracted. Among industries, the Fund's consistent overweight to Basic Materials & Metals was the strongest contributor to performance. An overexposure to Miscellaneous Finance, which includes brokerages and capital markets, was the Fund's second-largest industry contributor, as the economy held up well and the industry benefited over the reporting period. And although volatile over the year, Oil & Coal Resources posted a positive one-year performance, so the Fund's substantial overweight to the industry also contributed notably. However, in a year in which most industries in the benchmark's universe posted positive returns, it is not surprising that the primary industry detractors from performance came from underweight positions in positively performing industries, and such positions for the most part overshadowed the gains of the Fund's overweight positions. First among them was the Fund's substantial underexposure to Electric Utilities, the third-strongest industry performer for the period, as investors favored the dividend yields paid by these companies. Although the impact of the Fund's substantial underexposure to REITs has moderated recently, for the year REITs, generally performed well; hence, the underweight position hurt the Fund. An underweight to Communications Utilities, the strongest-performing industry for the year, also dampened performance. An overweight to Land & Water Transportation, although posting a slightly positive return for the period, also dragged on performance, as did underweights to Chemicals & Rubber and Integrated Oil Companies. The Fund's substantial underexposure to Construction & Homebuilding, one of the year's few negatively performing industries, worked in its favor, contributing slightly as demand weakened and inventories rose. Among risk factors, the Fund's exposure to companies exhibiting stronger growth characteristics and trading activity than the benchmark represented the two largest detractors from Fund performance for the period. Concurrently, its underexposure to yield also dampened performance, as investors favored predictable dividends while the consensus on the direction of the economy remained elusive. However, the Fund's exposure to more-consistently earning stocks than the benchmark represented its strongest positive contribution among risk factor exposures. In addition, the Fund's overweights to Book-to-Price and Earnings-to-Price measures -- traditional value factors and reflective of the Fund's value orientation -- also contributed, as the Fund generally held more deeply undervalued stocks than did the benchmark, and value generally outperformed growth for the reporting period. LAUDUS ROSENBERG U.S. DISCOVERY FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, the Russell 2500(TM) Index: the Fund's Investor Shares gained 5.34% for the period versus the benchmark's gain of 8.23%. The Fund's underperformance was primarily attributable to stock selection. An example is Illumina Inc., a medical equipment company that produces tools and systems for genetic analysis. Both our Valuation and Earnings Forecast Model found the stock to be attractive, but a patent litigation award against the company late in the year caused its 4 Laudus Trust Annual Report Management's Discussion continued price to fall. In spite of the judgment, we continue to find the stock attractive. However, in other cases, individual stocks did add value. One, supported by the Earnings Forecast Model, was Allegheny Technologies Inc., a specialty steel and materials company that outperformed due to ongoing strong demand for its products from the Aerospace, Defense and Oil & Gas industries. Another was Avnet, Inc., an electronic parts distributor: while our Earnings Forecast Model has been modestly positive on the stock, our Valuation Model showed a much stronger expectation for outperformance. We added to our initial position, established in 2005, when the price fell during the third quarter of 2006. In January of 2007, the company declared positive earnings and guidance, and the stock rallied thru the end of the period. Among industries, the Fund's consistent overweight to Basic Materials & Metals throughout the year was the strongest contributor to performance. Although exhibiting some volatility throughout the year, a substantial overexposure to Insurance stocks also contributed to Fund performance. The Fund's overweight to the strongly performing Textiles and Apparel industry also contributed notably. However, in a year in which most industries in the benchmark's universe posted positive returns, it is not surprising that the primary industry detractors from performance came from underweight positions in positively performing industries, and such positions essentially negated the positives to result in a net zero impact. First among them was the Fund's substantial underexposure to REITs; although the impact has moderated recently, for the year REITs generally performed well, and the underweight position hurt the Fund. An underexposure to Communications Utilities -- the year's strongest performer -- also detracted from performance; the performance of both of those industries are indicative of investors' taste for dividend yield over the year. And while the Fund's underexposure to the poorly performing Construction & Homebuilding detracted only slightly from performance, Construction Materials held up surprisingly well in this environment, posting a double-digit return, and the Fund's underweighting had more of a dampening effect. An underexposure to Publishing, Broadcasting & Cinema also detracted. Among risk factors, while over- and underweightings have not measurably changed during the year, the impact of the Fund's exposures to those risk factors varied substantially. For instance, the Fund's continued higher exposure to traditional value factors compared to the benchmark -- such Book-to-Price and Earnings-to-Price measures -- represented its strongest risk factor contributors for the year. The Fund's overweight to earnings variation contributed as the market rewarded companies with more-consistent earnings. Detracting somewhat, but not nearly enough to overcome the positive risk factor contributors, was the portfolio's heavy overweighting to relative strength, a measure of recent price performance. High-relative-strength stocks tend to have better-than-average near-term earnings growth, but the market did not reward this factor for the reporting period. A slight underexposure to yield, which was rewarded by the market, also detracted from performance. LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND For its fiscal year ended 3/31/07, the Fund posted a slightly positive return but underperformed its benchmark, the Russell 2000(R) Index: the Fund's Investor Shares gained 0.75% versus the benchmark's gain of 5.91%. The Fund's underperformance was primarily attributable to stock selection, although exposures to risk factors compensated somewhat. Industry allocation also detracted. Among underperforming stocks, for example, was Checkpoint Systems, a producer of electronic surveillance and radio frequency tags for retail sales systems. Both our Valuation and Earnings Forecast Models found the stock to be attractive, but it suffered as the company announced weaker earnings in the third quarter of 2006. The stock has rallied from its mid-year lows, and we continued to hold it despite its negative contribution for this fiscal year. Other stocks did contribute positively. CF Industries Holdings, one of North America's largest manufacturers and distributors of nitrogen and phosphate fertilizer products, gained driven by expectations of rising fertilizer prices as a result of farmers gearing up to plant their largest corn crop in 60 years to meet demand from the ethanol industry. When we began building our position last October, both our Valuation and Earnings Forecast Models showed the stock to be a bargain; since its price rose, the Valuation Model has reverted to a near-neutral outlook, but the Earnings Forecast Model continues to find its earnings prospects attractive. In addition, strong stock selection within the Laudus Trust Annual Report 5 Management's Discussion continued Financial sector also contributed, notably by avoiding stocks affected by the sub-prime lending collapse. Among industries, the Fund's consistent overweight to Basic Materials & Metals throughout the year was the strongest contributor to performance; it was the strongest-performing industry for the year. The Fund's overweight to Retail also contributed strongly, as small-cap retailers generally performed well, as did an overweight to the strongly performing Textiles and Apparel industry. Although exhibiting some volatility throughout the year, a substantial overexposure to Insurance companies also contributed to Fund performance, as our models found them attractive; as of the close of the fiscal year, the Fund's overweight in Insurance represented its largest industry overweight. However, in a year in which most industries in the benchmark's universe posted positive returns, it is not surprising that the primary industry detractors from performance came from underweight positions in positively performing industries, and such positions for the most part overshadowed the gains of the Fund's overweight positions. First among them was the Fund's substantial underexposure to REITs; although the impact has moderated recently, for the year, REITs generally performed well, and the underweight position hurt the Fund. An underexposure to Drugs & Pharmaceuticals also dragged on performance. Although the Fund's substantial underweight to Banks & Credit Institutions worked in its favor more recently as it protected the portfolio in large part from the fallout of the sub-prime lending collapse, over the one-year period, the industry posted a positive return, so its exposure detracted from performance. And although underexposed to Construction & Homebuilding, the year's poorest performer as demand weakened and inventories rose, the position dampened Fund performance. Underexposure to double-digit gainers Cars & Trucks and Construction Materials also detracted. Among risk factors, while over- and underweightings have not measurably changed during the year, the impact of the Fund's exposures to those risk factors varied substantially. For instance, the Fund's higher exposure to traditional value factors compared to the benchmark -- such as Book-to-Price and Earnings-to-Price measures -- represented its strongest risk factor contributors for the year. For the year, the Fund's underweight to trading activity also contributed, as did its overweight to earnings variation as the market rewarded companies with more- consistent earnings. Detracting somewhat, but not nearly enough to overcome the positive risk factor contributors, were the portfolio's heavy overweighting to relative strength, a measure of recent price performance. A slight underexposure to yield, which was rewarded by the market as investors sought predictability, also detracted from performance. INTERNATIONAL EQUITY MARKET OVERVIEW The past four quarters witnessed strong market performance for international equities. In spite of market weakness in the second quarter of 2006 and the first quarter of 2007, international markets posted solid returns over the past twelve months. Robust corporate earnings, a record level of global merger & acquisition (M&A) activity, firm global economic growth, along with abundant financial liquidity, all helped propel global markets to multi-year highs. Global markets began the second quarter of 2006 strongly but were sent tumbling in May and June and later in February 2007 only to have markets rebound strongly. Over the past year, a wave of global liquidity has spurred global markets higher, supported by a record period of global M&A deals. Markets shrugged off rising interest rates in Europe and Japan and focused on relatively stable energy prices and continued corporate profit growth. Many commodities, after a multi-year run of price appreciation, retreated from record high levels as supply increased and growth in demand moderated. The dollar was weaker against most major currencies over the past twelve months as monetary tightening in Japan, India, China, United Kingdom, and in Europe has made the dollar a less appealing currency relative to higher yielding peers. After a pullback in the second quarter of 2006, markets regained their footing and pushed ahead to post multi-year highs as the year came to a close. As the first quarter in 2007 unfolded, a deteriorating U.S. housing market and weakness in the sub-prime lending business caused angst for global investors, but markets recovered as the first quarter of 2007 ended. The European Central Bank increased interest rates, but in spite of higher rates, European markets posted strong gains. Helping markets push higher was the record level of announced M&A deals in Europe. Over the course of the year the dollar continued to weaken against the Euro. 6 Laudus Trust Annual Report Management's Discussion continued Business confidence levels of the EU economies have continued to improve as the year progressed. European markets were helped by the Fed's decision to leave rates unchanged in August which translated into significant yield declines in bond markets on both sides of the Atlantic. Japan has begun to show improved economic growth and the Bank of Japan (BOJ) increased interest rates for the first time since 2000. A new government took power this year under Prime Minister Abe. The major story of the year was the BOJ announcing it will terminate its five-year-old "quantitative easing policy". Japanese markets were impacted by the perception that potentially overly tight monetary policy would lead to weakening domestic export prospects and negatively impact the domestic economic recovery. Asia Pacific equity markets posted solid returns over the past twelve months. China passed Great Britain to become the world's fourth largest economy. Australia's predominately materials-focused economy benefited from the continued global demand for raw materials. There were some difficulties in Asia as the Shanghai market pulled back in late February 2007 which caused considerable global market turbulence and put into question how long the global market rally would continue. INTERNATIONAL EQUITY FUNDS PERFORMANCE TOTAL RETURNS are for the year ended 3/31/07 unless indicated otherwise. For performance details, see pages 18 through 23.
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND(1) - ------------------------------------------------- REQIX RIEIX MSCI-EAFE Institutional shares Investor shares Index 18.37% 18.08% 20.69%
LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND(1,2,*) - ---------------------------------------------------- S&P/Citigroup Global ex US Broad Market Index (BMI) $2-$10 LIDSX LIDIX Billion Institutional shares Investor shares Cap Range 21.90% 21.62% 22.73%
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND(1,2) (Closed) - ---------------------------------------------------- S&P/Citigroup World ex US Extended ICSIX RISIX Market Index Institutional shares Investor shares (EMI) 20.82% 20.35% 23.14%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower. Investors cannot invest directly in any index. * Performance is for the period May 31, 2006 (inception date) through March 31, 2007 (Not annualized). (1) There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Investing in emerging markets accentuates these risks. (2) Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND For its fiscal year ended 3/31/07, the Fund posted a strong positive return but underperformed its benchmark, the MSCI EAFE(R) Index: the Fund's Investor Shares gained 18.08% for the one-year period versus the benchmark's gain of 20.69%. Stock selection detracted from performance for the year. Industry allocation also detracted. Exposure to risk factors made a positive contribution; as is typical for this Fund, regional allocation had little net effect. In general, although many of the Fund's overweight positions contributed to performance, it was the Fund's underweight positions that hurt performance most. Among industries, the Fund's consistent overweight to Basic Materials & Metals was the strongest contributor to performance. An overweight to Insurance was the Fund's second-largest industry contributor, whose position in the portfolio was driven by our valuation model. An overweight to Chemicals & Rubber also contributed, another of the stronger industry performers for the period. Overweights in Miscellaneous Finance; Photo-optical, Microcomputers & Office Machines; and Cars & Trucks were also notable positive contributors to Fund performance. Laudus Trust Annual Report 7 Management's Discussion continued But the drag from the Fund's industry underexposures overshadowed the positives. An underweight to Electric Utilities, a strong performer as a result of deregulation in Europe and strong ongoing M&A activity, posting a one-year return that exceeded that of Basic Minerals & Metals, was the largest industry drag on Fund performance. Underweights to Retail and Real Estate Development, also strong performers, also detracted. Although Construction & Homebuilding was weak domestically for the year, internationally the industry held up well, and an underexposure there also hurt the Fund, as did an underexposure to Land & Water Transportation. Risk factors that made the greatest contribution to Fund performance were overweights to Book-to-Price and Earnings-to-Price measures -- traditional value factors that are reflective of the Fund's value orientation. Over the one-year period, value generally outperformed growth in international markets; although the Fund's overexposure in those areas was not extreme, the market rewarded those factors for the period. Detracting was the Fund's slightly higher exposure to volatility (beta) than the benchmark during a period where the market rewarded lower volatility. LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND For the ten-month period since its inception through 3/31/07, the Fund posted a positive return but underperformed its benchmark, the S&P/Citigroup Global ex U.S. Broad Market Index $2 - $10 Billion Cap Range. The Fund's Investor Shares gained 21.62% versus the benchmark's gain of 22.73% for the same period. While exposure to risk factors and industry allocation contributed somewhat, and stock selection had a small positive contribution, as is expected for this Fund, regional exposure had little net effect. Among risk factor exposures, the Fund's greatest contributors to performance were overweights to Book-to-Price and Earnings-to-Price measures -- traditional value factors that are reflective of the Fund's value orientation; over the period, value generally outperformed growth in international markets. Although small, the Fund's underexposure to relative strength, a growth indicator and strongest factor return for the period by a large measure, also contributed. Detracting most was the Fund's exposure to somewhat smaller-sized companies than the benchmark, as well as a slightly higher exposure to volatility (beta) during a period in which the market rewarded lower volatility. In general, the Fund's overweight positions contributed most to performance, although many of the Fund's underweight positions detracted. Among industries, the Fund's consistent overweight to Basic Materials & Metals throughout the year was the strongest contributor to performance. An overweight to Restaurants, Hotels & Theaters was the Fund's second-largest industry contributor, followed by overweights to Airlines; Communications Utilities; Beer, Liquor & Tobacco; and Government Aircraft & Defense, all very strong performers for the period. The largest industry drags on performance were almost entirely attributable to underweight exposures compared to the benchmark, led by an underexposure to Real Estate Development, the strongest-performing industry for the year. Although Construction & Homebuilding was weak domestically for the year, internationally the industry held up well, and an underexposure there hurt the Fund and was the largest industry detractor from performance for the period. Underweights to Retail; Publishing, Broadcasting & Cinema; Land & Water Transportation; Information Services; and Construction Materials were the largest detractors from performance on an industry basis. LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND For its fiscal year ended 3/31/07, the Fund posted a strong positive return but underperformed its benchmark, the S&P/Citigroup World ex U.S. Extended Market Index: the Fund's Investor Shares gained 20.35% versus the benchmark's gain of 23.14%. Exposures to risk factors contributed positively; industry allocation also contributed, although to a lesser degree. As is typical for this Fund, regional exposure had little net effect. Stock selection was the greatest overall detractor. Stock selection dampened performance across holdings in REITs and Miscellaneous Financials (broker/dealers, exchanges and asset managers). For example, one stock that the portfolio did not hold -- Deutsche Bouerse -- performed strongly on activity in publicly traded exchanges. And individual holdings among British Energy companies declined as problems relating to power-generation plants negatively impacted their earnings; an example is British Land Company, which detracted from performance. Some individual stock positions did, however, contribute measurably. In the Materials sector, the Fund's persistent overweight, along with strong stock selection, represents 8 Laudus Trust Annual Report Management's Discussion continued some of the Fund's most notable successes; holdings in Austrian steel/metals producers Bohler-Uddeholm AG and Voestalpine AG both were positive contributors. Metal product manufacturers in Europe performed strongly, where stock selection was rewarded across a large number of holdings. Defense-related and airline picks were also strong; Spanish airline Iberia Lineas and Air France KLM contributed modestly. A long-term holding of French tire-maker Michelin also contributed. Among risk factor exposures, the Fund's greatest contributors to performance were overweights to Book-to-Price and Earnings-to-Price measures -- traditional value factors that are reflective of the Fund's value orientation. Over the one-year period, value generally outperformed growth in international markets. An underexposure to higher-growth companies than the benchmark also added value. Detracting from performance was the Fund's slightly higher exposure to volatility (beta) than the benchmark during a period in which the market rewarded lower volatility. Among industries, in general, it was the Fund's overweight exposures that contributed most to performance, although many of the Fund's underweight positions detracted. The Fund's consistent overweight to Basic Materials & Metals throughout the year was the strongest contributor to performance. An overweight to Restaurants, Hotels & Theaters was the Fund's second-largest industry contributor, followed by an overweight to Insurance, whose position in the portfolio was driven by our valuation model. Also contributing were overweights in Government Aircraft & Defense; Airlines; Beer, Liquor & Tobacco; Cars & Trucks; and Miscellaneous Finance, all very strong performers for the period. The largest industry drags on performance were almost entirely attributable to underweight exposures compared to the benchmark. Although Construction & Homebuilding was weak domestically for the year, internationally the industry held up well, so an underexposure there hurt the Fund and was the largest industry detractor from performance for the period. Underweights to Information Services; Real Estate Development; Publishing, Broadcasting & Cinema; Retail; and Gas & Other Public Utilities all dragged on Fund performance for the year. The only overweight position that notably dragged on performance was in Construction Materials. An underweight to Electric Utilities -- a strong performer as a result of deregulation in Europe and strong ongoing M&A activity -- also detracted. LONG/SHORT EQUITY FUNDS PERFORMANCE While the reward to earnings is the biggest driver of our relative performance over time, our portfolios have exposures to risk characteristics and industries that will also have an impact on performance. These active exposures are a by-product of trading off the return opportunities identified by our stock selection models with the risk of deviating on these dimensions between the Long and Short sides of the portfolios. TOTAL RETURNS are for the year ended 3/31/07. For performance details, see pages 24 through 29.
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND(1) - ------------------------------------------------- SSMNX RMNIX 90-Day T-Bills Institutional shares Investor shares 4.98% 4.68% 5.24% LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND(1,2) - ------------------------------------------------- MSMNX RMSIX 90-Day T-Bills Institutional shares Investor shares 1.77% 1.45% 5.24% LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND(3,4) - ------------------------------------------------- BMNIX BRMIX 90-Day T-Bills Institutional shares Investor shares 3.19% 2.81% 5.24%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of funds typically have a high portfolio turnover that could increase transaction costs and cause short- term capital gains to be realized. While it may be the intent of the Laudus Trust Annual Report 9 Management's Discussion continued Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund may sell a security short by borrowing it from a third party and selling it at the then-current market price. The Fund is obligated to buy the security on a later date so it can return the security to the lender. Short sales involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which the Fund previously sold the security short. Moreover, because the Fund's loss on a short sale arises from increases in the value of the security sold short, the extent of such loss is theoretically unlimited. Since risk in long/short funds relates specifically to the Manager's stock selection techniques and not to any systematic or economy-wide factors, the proper benchmark is an asset that also has the least exposure to systematic influences. 90-day T-bills are such an asset. The full faith and credit of the U.S. government back an investment in 90-day T-bills. T-bills have a fixed rate of return, and investors do not bear the risk of losing their investment. The income received from T-bills is free from state income tax. (1) Mid capitalization stocks typically carry additional risk, since smaller companies generally have higher risk of failure and, historically, their stocks have experienced a greater degree of volatility. (2) There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. (3) Value-based investments are subject to the risk that the broad market may not recognize their value. (4) Small- and mid-capitalization funds typically carry additional risk since small- and mid-capitalization companies generally have a higher risk of failure. LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, 90-day T-bills: the Fund's Investor Shares gained 4.68% versus the benchmark's gain of 5.24% over the same period. Residual stock selection and exposures to risk factors contributed positively, while industry allocation detracted slightly from performance. Among industries, contributing net long positions were generally offset by detracting net short positions, with the net result a small drag on overall Fund performance. The Fund's long-only exposure to Integrated Oil Companies represented its strongest industry contributor; although volatile over the period, the industry posted a strong double-digit gain. A net long exposure to Miscellaneous Finance, which includes brokers and capital markets, was the second-largest industry contributor. A net long position in Basic Minerals & Metals also contributed notably. A net long exposure to Cellular/Wireless also contributed, as did net long exposures to Commercial Aircraft & Components (long-only), Banks & Credit Institutions, and Insurance. The only net short position that contributed notably was in IT Hardware, one of the few negatively performing industries over the reporting period. A substantially net short exposure to Construction & Homebuilding, the year's worst performer protected the Fund from the fallout of declining home prices and rising inventories, resulting in a modest contribution. On the other hand, however, detractors at the industry level overshadowed contributors -- nearly all coming from net short exposures. The largest detractor was the Fund's net short exposure to REITs. The Fund's valuation model has continued to indicate that the industry is overvalued; however, the industry continued to post strong returns for the report period. Net short exposures to Instruments; Software; Soaps & Cosmetics; and Drugs & Pharmaceuticals also worked against it for the year as all posted strong positive returns. A modest net long exposure to Land & Water Transportation, along with a substantial one to Oil Drilling and Services, both worked against the Fund. Among individual holdings, although each has a relatively small impact on overall Fund performance, a long position in Countrywide Financial dragged on the Fund as the company suffered from the fallout of the sub-prime lending collapse. A long holding in credit-card giant Capital One Financial also detracted, as it was caught in the maelstrom due to concerns that the deterioration would spread to auto lending and credit cards -- two large components of Capital One's managed loan portfolio. On the other hand, long positions in AT&T and Apple contributed notably on the backs of improved profits and strong overall performance. The Fund is managed for long-term performance and seeks to outperform its benchmark through various market conditions as a result of superior stock picking. Consistent with the Fund's underlying model, it seeks to capitalize on stocks with both long-term earnings and those with accelerating near-term earnings growth. LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, 90-day T-bills: the Fund's Investor shares gained 1.45% versus the benchmark's gain of 5.24%. While the Fund's exposure to risk factors provided a positive contribution, it was offset by a combination of weak industry allocation 10 Laudus Trust Annual Report Management's Discussion continued and stock selection. As is expected for this Fund, regional allocation had no effect. Although many of the long positions made notable contributions, in a year in which internationally virtually every industry posted a positive return, it was understandably difficult to perform in short positions. For the entire year, the Fund's net long exposure to relative strength, a measure of price momentum relative to the market, was the largest contributor to performance. And although in the most-recent quarter it appeared that value had finally relinquished its stronghold over growth, for the year, value characteristics added value. Therefore, the Fund's higher exposures to traditional value factors compared to the benchmark -- such Book-to-Price and Earnings-to-Price measures -- contributed strongly over the reporting period. And while it added value for the most-recent quarter, a net long exposure to earnings variation -- a measure of the variability of historical earnings -- detracted for the year. Also detracting were the Fund's net long exposures to volatility (beta) and trading activity than the benchmark during a period where the market rewarded lower volatility. Among industries, a net long exposure to Basic Minerals and Metals was the strongest contributor to Fund performance for the year. A substantial net long exposure to Miscellaneous Finance also contributed, as did net longs in Cellular & Wireless; Photo-optical, Microcomputers & Office Machines; Chemicals & Rubber; Government Aircraft & Defense; Beer, Liquor & Tobacco; Integrated Oil Companies; Communications Utilities; and Insurance, all of which posted strong positive returns for the one-year period. Overshadowing the contribution of the Fund's net long positions, however, was a longer and deeper list of net shorts, which, due to the strength of so many industries over the period, dragged down Fund performance. The largest industry detractor was the Fund's net short exposure to Construction & Homebuilding as despite the downturn in the U.S. housing market and its residual fallout, the industry continued to hold up well outside the U.S. Continued net short exposures to Retail, Cars & Trucks, Information Services, Instruments, Real Estate Development and Financial Investments also dampened performance, along with a number of other net short exposures. The Fund largely avoided exposure to the sub-prime lending collapse and its resultant fallout in the U.S., although a position in Countrywide Financial did drag on Fund performance. Among individual stocks, one of the strongest contributors for the period was the portfolio's net long position in Nippon Steel. The stock rose due to an earnings increase, improving economic conditions in Japan and strong worldwide demand for high-grade steel. On the other hand, one of the notable detractors for the period was a long position in Moody's; despite a booming market in the issuance of corporate debt, the company suffered due to questions raised by its inability to have identified factors leading to failing sub-prime lenders, as well as the housing slowdown. The Fund is managed for long-term performance and seeks to outperform its benchmark through various market conditions as a result of superior stock picking. Consistent with the Fund's underlying model, it seeks to capitalize on stocks with both long-term earnings and those with accelerating near-term earnings growth. LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND For its fiscal year ended 3/31/07, the Fund posted a positive return but underperformed its benchmark, 90-day T-bills: the Fund's Investor Shares gained 2.81% versus the benchmark's gain of 5.24%. Exposures to risk factors contributed strongly to the Fund's performance; however, stock selection detracted. Industry exposures contributed only modestly. Several individual holdings did provide notable contributions to Fund performance. Among them were long positions in Allegheny Technologies, a specialist in industrial metals, and steel manufacturer U.S. Steel -- both of which saw robust performance over the period as a result of strong global demand. Contributions attributable to risk-factor exposures varied greatly throughout the year, rotating from quarter to quarter. For instance, the Fund's consistently net long exposure to traditional value factors -- such as Earnings- to-Price and Book-to-Price, indicative of the Fund's value orientation -- were its greatest contributors for the one-year period. A net long exposure to earnings variation also contributed, as the market rewarded stocks with more-consistent earnings. A net short exposure to stocks with high trading activity also added value, as did the Fund's net short exposure to leverage. Detracting somewhat, but not nearly enough to overcome the positive risk factors, were the portfolio's heavy net long exposure to relative strength, a measure of recent price perform- Laudus Trust Annual Report 11 Management's Discussion continued ance. High-relative-strength stocks tend to have better-than-average near-term earnings growth, but the market did not reward this factor for the reporting period. A slight net long exposure to growth characteristics, as our valuation model indicated that growth was well-priced, also detracted as the market failed to reward that factor as well. Among industries, the Fund's substantial net long exposure to Basic Minerals & Metals, the year's second-strongest-performing industry, was the Fund's largest industry contributor to performance. A substantial net long exposure to Insurance also contributed notably, as did a net long exposure to Chemicals & Rubber, another strong performer for the year. Mitigating the positives to some degree was the Fund's net short exposure to Communications Utilities, which posted the strongest return among industries for the year. The next-largest drag on performance came from the Fund's net short exposure to REITs; although its impact has moderated recently, for the year REITs generally performed well, and the position hurt the Fund. Underexposures to Publishing, Broadcasting & Cinema and to Restaurants, Hotels & Theaters also dampened Fund performance. And although detracting somewhat, the Fund's net short exposure to Construction & Homebuilding, the worst-performing industry for the period protected the Fund from further industry fallout. The Fund is managed for long-term performance and seeks to outperform its benchmark through various market conditions as a result of superior stock picking. Consistent with the Fund's underlying model, it seeks to capitalize on stocks with both long-term earnings and those with accelerating near-term earnings growth. 12 Laudus Trust Annual Report Performance and Fund Facts Laudus Rosenberg U.S. Large Capitalization Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES RUSSELL 1000(R) INDEX* -------------------- ---------------------- 6/19/02 50000 50000 3/03 41610 41585 3/04 55063 56714 3/05 60382 60820 3/06 69378 68848 3/07 77079 76999
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES RUSSELL 1000(R) INDEX* --------------- ---------------------- 7/31/02 10000 10000 3/03 9358 9419 3/04 12342 12845 3/05 13480 13775 3/06 15444 15593 3/07 17095 17439
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 3 YEAR INSTITUTIONAL INVESTOR Institutional (6/19/02) 11.10% 11.87% 9.47% n/a Investor (7/31/02) 10.69% 11.47% n/a 12.17% Russell 1000 Index* 11.84% 10.73% 9.44% 12.66%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investors cannot invest directly in any index. * The Russell 1000(R) Index measures the performance of the 1,000 largest companies in the Russell 3000(R) Index, and represents approximately 92% of the total market capitalization of the Russell 3000(R) Index. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ---------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 6/19/02 7/31/02 Total Net Assets ($ x 1,000) $94,921 $10,074 Ticker Symbol AXLIX AXLVX Cusip 51855Q101 51855Q853 NAV $13.21 $13.21 Net Expense Ratio(3) 0.99% 1.29% Gross Expense Ratio(4) 1.14% 1.52%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 187 Avg. Market Capitalization 89,121 ($Wtd. x 1,000,000) Portfolio Turnover (One year trailing) 144% Price to Earnings (P/E) 14.72 Price to Book (P/B) 2.60 Price to Cash Flow 11.48 Beta 1.18 Return on Equity 20.33% Five-Year Earnings Growth 24.84%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - --------------------------------------------------------- Exxon Mobil Corp. 4.4% AT&T Corp. 3.8% Bank of America Corp. 3.7% Cisco Systems, Inc. 2.8% International Business Machines Corp. 2.8% Wachovia Corp. 2.3% Oracle Corp. 2.0% Hewlett-Packard Co. 2.0% The Walt Disney Co. 2.0% McDonald's Corp. 1.9% TOTAL 27.7%
PORTFOLIO COMPOSITION(2) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Financials 21.5 Consumer Discretionary 15.9 Information Technology 15.0 Industrials 10.4 Energy 8.6 Health Care 7.6 Consumer Staples 7.2 Telecommunication Services 4.9 Materials 4.8 Utilities 4.1
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. Laudus Trust Annual Report 13 Performance and Fund Facts Laudus Rosenberg U.S. Large Capitalization Growth Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES RUSSELL 1000(R) GROWTH INDEX* -------------------- ----------------------------- 6/7/00 50000 50000 3/01 38645 31665 3/02 39298 31032 3/03 30385 22725 3/04 40364 30040 3/05 41744 30391 3/06 47943 34384 3/07 50638 36812
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES RUSSELL 1000(R) GROWTH INDEX* --------------- ----------------------------- 8/15/03 10000 10000 3/04 11450 11284 3/05 11810 11415 3/06 13520 12915 3/07 14244 13827
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (6/7/00) 5.62% 5.20% 0.19% n/a Investor (8/15/03) 5.36% n/a n/a 10.24% Russell 1000 Growth Index* 7.06% 3.47% -4.39% 9.35%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investors cannot invest directly in any index. * The Russell 1000 Growth(R) Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ---------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 6/7/00 8/15/03 Total Net Assets ($ x 1,000) $75,481 $2,242 Ticker Symbol REDIX REFIX Cusip 51855Q200 51855Q846 NAV $9.76 $9.83 Net Expense Ratio(3) 0.99% 1.29% Gross Expense Ratio(4) 1.34% 1.91%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 341 Avg. Market Capitalization ($Wtd. x 1,000,000) 66,533 Portfolio Turnover (One year trailing) 71% Price to Earnings (P/E) 19.65 Price to Book (P/B) 4.78 Price to Cash Flow 14.67 Beta 1.15 Return on Equity 29.96% Five-Year Earnings Growth 24.40%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - --------------------------------------------------------- Microsoft Corp. 2.8% Cisco Systems, Inc. 2.7% International Business Machines Corp. 2.2% General Electric Co. 2.0% Johnson & Johnson 1.7% Google, Inc., Class A 1.6% Apple, Inc. 1.2% Wal-Mart Stores, Inc. 1.2% Oracle Corp. 1.2% Intel Corp. 1.2% TOTAL 17.8%
PORTFOLIO COMPOSITION(2) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Information Technology 23.1 Industrials 16.5 Consumer Discretionary 14.4 Health Care 12.3 Consumer Staples 11.2 Financials 10.3 Materials 5.4 Energy 4.4 Utilities 1.5 Telecommunication Services 0.9
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 14 Laudus Trust Annual Report Performance and Fund Facts Laudus Rosenberg U.S. Large Capitalization Value Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES RUSSELL 1000(R) VALUE INDEX* -------------------- ---------------------------- 5/2/05 50000 50000 3/06 59915 57425 3/07 67520 67090
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES RUSSELL 1000(R) VALUE INDEX* --------------- ---------------------------- 5/2/05 10000 10000 3/06 11933 11485 3/07 13538 13418
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR INSTITUTIONAL INVESTOR Institutional (5/02/05) 13.55%** 17.39% n/a Investor (5/02/05) 13.22% n/a 17.01% Russell 1000 Value Index* 16.83% 16.61% 16.61%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Value-based investments are subject to the risk that the broad market may not recognize their value. Investors cannot invest directly in any index. * The Russell 1000 Value(R) Index measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios. ** One year returns presented in the table differs from the return presented in the Financial Highlights. This is a result of the calculation of the Financial Highlights return adhering to GAAP presentation. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ---------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 5/2/05 5/2/05 Total Net Assets ($ x 1,000) $6,058 $540 Ticker Symbol LLCVX LCVJX Cusip 51855Q713 51855Q721 NAV $12.74 $12.70 Net Expense Ratio(3) 0.99% 1.29% Gross Expense Ratio(4) 2.41% 2.78%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 121 Avg. Market Capitalization ($Wtd. x 1,000,000) 101,956 Portfolio Turnover (One year trailing) 108% Price to Earnings (P/E) 12.53 Price to Book (P/B) 2.04 Price to Cash Flow 8.26 Beta 1.23 Return on Equity 18.42% Five-Year Earnings Growth 26.99%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - --------------------------------------------------------- AT & T Corp. 4.5% Bank of America Corp. 4.5% Exxon Mobil Corp. 4.1% Pfizer, Inc. 4.1% Citigroup, Inc. 3.2% ConocoPhillips 3.1% Verizon Communications, Inc. 2.9% JPMorgan Chase & Co. 2.3% McDonald's Corp. 2.1% Merrill Lynch & Co., Inc. 2.0% TOTAL 32.8%
PORTFOLIO COMPOSITION(2) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Financials 31.6 Energy 14.3 Consumer Discretionary 11.2 Telecommunication Services 8.4 Industrials 7.8 Utilities 7.4 Materials 5.8 Consumer Staples 4.7 Health Care 4.7 Information Technology 4.1
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. Laudus Trust Annual Report 15 Performance and Fund Facts Laudus Rosenberg U.S. Discovery Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ----------------------------------------
INSTITUTIONAL SHARES RUSSELL 2500(TM) INDEX* -------------------- ----------------------- 9/4/2001 50000 50000 3/02 55625 54310 3/03 47932 41276 3/04 74726 66301 3/05 82184 71744 3/06 100922 88999 3/07 106686 96323
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ----------------------------------------
INVESTOR SHARES RUSSELL 2500(TM) INDEX* --------------- ----------------------- 10/3/01 10000 10000 3/02 11834 12175 3/03 10178 9253 3/04 15799 14864 3/05 17331 16085 3/06 21214 19953 3/07 22346 21595
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (9/4/01) 5.71% 13.91% 14.57% n/a Investor (10/3/01) 5.34% 13.56% n/a 15.76% Russell 2500(TM) Index* 8.23% 12.15% 12.49% 15.04%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Small and mid-capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * The Russell 2500(R) Index measures the performance of the 2,500 smallest companies in the Russell 3000(R) Index, and represents approximately 16% of the total market capitalization of the Russell 3000(R) Index. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 9/4/01 10/3/01 Total Net Assets ($ x 1,000) $718,185 $217,045 Ticker Symbol RDISX RDIVX Cusip 51855Q309 51855Q838 NAV $19.80 $19.59 Gross Expense Ratio(3) 1.09% 1.43%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 779 Avg. Market Capitalization ($Wtd. x 1,000,000) $2,670 Portfolio Turnover (One year trailing) 86% Price to Earnings (P/E) 16.72 Price to Book (P/B) 2.06 Price to Cash Flow 12.52 Beta 1.27 Return on Equity 13.71% Five-Year Earnings Growth 30.30%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - -------------------------------------------------------- BMC Software, Inc. 1.8% Avnet, Inc. 1.6% A.G. Edwards, Inc. 1.5% Emdeon Corp. 1.2% Tidewater, Inc. 1.1% Big Lots, Inc. 1.1% LSI Logic Corp. 1.1% Northeast Utilities 1.1% MDU Resources Group, Inc. 1.0% FMC Corp. 1.0% TOTAL 12.5%
PORTFOLIO COMPOSITION(2) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Financials 21.8 Information Technology 16.4 Consumer Discretionary 14.9 Industrials 13.3 Materials 8.3 Health Care 7.5 Utilities 6.7 Energy 4.8 Consumer Staples 4.1 Telecommunication Services 2.2
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 16 Laudus Trust Annual Report Performance and Fund Facts Laudus Rosenberg U.S. Small Capitalization Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ---------------------------------------- (LINE GRAPH)
INSTITUTIONAL SHARES RUSSELL 2000(R) INDEX* -------------------- ---------------------- 3/97 59765 52555 3/98 86629 74633 3/99 68818 62498 3/00 90400 85803 3/01 89261 72650 3/02 110612 82806 3/03 91697 60482 3/04 143809 99087 3/05 157269 104448 3/06 187874 131447 3/07 189955 139216
PERFORMANCE OF A HYPOTHETICAL $100,000 INVESTMENT IN ADVISER SHARES(1) - ---------------------------------------- (LINE GRAPH)
ADVISER SHARES RUSSELL 2000(R) INDEX* -------------- ---------------------- 3/97 96748 91790 3/98 139800 130351 3/99 110858 109156 3/00 145228 149860 3/01 143148 126887 3/02 176951 144625 3/03 146245 105620 3/04 228919 173037 3/05 249788 182398 3/06 297473 229548 3/07 300149 243115
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ---------------------------------------- (LINE GRAPH)
INVESTOR SHARES RUSSELL 2000(R) INDEX* --------------- ---------------------- 3/97 10684 9988 3/98 15430 14184 3/99 12229 11878 3/00 16027 16307 3/01 15783 13807 3/02 19493 15737 3/03 16098 11493 3/04 25177 18829 3/05 27443 19847 3/06 32652 24978 3/07 32898 26454
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR 10 YEAR INSTITUTIONAL INVESTOR ADVISER Institutional (2/22/89) 1.11% 11.42% 12.26% 13.83% n/a n/a Adviser (1/21/97) 0.90% 11.15% 11.99% n/a n/a 11.39% Investor (10/22/96) 0.75% 11.03% 11.90% n/a 12.08% n/a Russell 2000(R) Index* 5.91% 10.95% 10.23% 11.08% 9.76% 9.11%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * The Russell 2000(R) Index measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, and represents approximately 8% of the total market capitalization of the Russell 3000(R) Index. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Adviser Investor FUND OVERVIEW(2) Shares Shares Shares - -------------------------------------------------------------- Initial Investment $50,000 $100,000 $2,500 Inception Date 2/22/89 1/21/97 10/22/96 Total Net Assets ($ x $699,921 $48,923 $269,185 1,000) Ticker Symbol USCIX LIFUX BRSCX Cusip 51855Q408 51855Q739 51855Q820 NAV $12.57 $12.35 $12.22 Gross Expense 1.04% 1.32% 1.39% Ratio(3)
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 660 Avg. Market Capitalization ($Wtd. x 1,000,000) 1,175 Portfolio Turnover (One year trailing) 76% Price to Earnings (P/E) 19.08 Price to Book (P/B) 1.91 Price to Cash Flow 12.04 Beta 1.32 Return on Equity 10.85% Five-Year Earnings Growth 29.68%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - -------------------------------------------------------- Delphi Financial Group, Inc., Class A 1.4% Perot Systems Corp., Class A 1.3% TeleTech Holdings, Inc. 1.2% Brown Shoe Co., Inc. 1.2% MPS Group, Inc. 1.2% Knight Capital Group, Inc., Class A 1.1% Regal Beloit Corp. 1.1% Mentor Graphics Corp. 1.1% Imation Corp. 1.0% Woodward Governor Co. 1.0% TOTAL 11.6%
PORTFOLIO COMPOSITION(2) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Financials 21.7 Information Technology 18.1 Industrials 16.9 Consumer Discretionary 15.6 Health Care 8.3 Materials 6.4 Consumer Staples 4.6 Energy 3.8 Utilities 2.8 Telecommunication Services 1.8
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. Laudus Trust Annual Report 17 Performance and Fund Facts Laudus Rosenberg International Equity Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES MSCI-EAFE(R) INDEX* -------------------- ------------------- 6/7/00 50000 50000 3/01 40750 38140 3/02 37343 35005 3/03 29628 26971 3/04 45571 42655 3/05 52115 49258 3/06 64550 61543 3/07 76408 74276
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES MSCI-EAFE(R) INDEX* --------------- ------------------- 12/5/00 10000 10000 3/01 9053 8684 3/02 8254 7970 3/03 6544 6141 3/04 10052 9712 3/05 11438 11215 3/06 14116 14013 3/07 16668 16912
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (6/7/00) 18.37% 15.39% 6.42% n/a Investor (12/5/00) 18.08% 15.09% n/a 8.42% MSCI-EAFE(R) Index* 20.69% 16.24% 5.98% 8.67%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Investors cannot invest directly in any index. * The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI-EAFE(R) Index) Index is a free float-adjusted market capitalization index that is designed to measure market equity performance in 21 developed market countries, excluding the U.S. and Canada. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 6/7/00 12/5/00 Total Net Assets ($ x 1,000) $68,398 $61,411 Ticker Symbol REQIX RIEIX Cusip 51855Q507 51855Q812 NAV $13.58 $13.54 Net Expense Ratio(3) 1.34% 1.64% Gross Expense Ratio(4) 1.96% 2.33%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 387 Avg. Market Capitalization ($Wtd. x 1,000,000) 58,632 Portfolio Turnover (One year trailing) 64% Price to Earnings (P/E) 14.85 Price to Book (P/B) 1.92 Price to Cash Flow 9.08 Beta 1.02 Return on Equity 13.93% Five-Year Earnings Growth 28.31%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - -------------------------------------------------------- Royal Bank of Scotland Group plc 1.9% Royal Dutch Shell plc, Class A 1.7% Banco Santander Central Hispano S.A. 1.6% UBS AG -- Reg'd 1.6% Telefonica S.A. 1.5% DaimlerChrysler AG -- Reg'd 1.5% Nestle S.A. -- Reg'd 1.4% Deutsche Bank AG -- Reg'd 1.3% Fortis 1.3% Bayer AG 1.3% TOTAL 15.1%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 18 Laudus Trust Annual Report Performance and Fund Facts continued Laudus Rosenberg International Equity Fund as of 3/31/07 PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Financials 29.9 Consumer Discretionary 16.8 Materials 12.7 Industrials 8.3 Consumer Staples 7.8 Energy 6.5 Telecommunication Services 6.2 Health Care 4.7 Utilities 3.9 Information Technology 3.2
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ COUNTRY WEIGHTINGS (PIE CHART) Japan 22.4 United Kingdom 22.0 France 10.8 Switzerland 7.6 Germany 7.4 Australia 5.8 Spain 4.7 Italy 3.8 Netherlands 3.8 Sweden 2.1 Hong Kong 1.9 Belgium 1.8 Other Countries 5.9
(1) Portfolio holdings are subject to change and may not represent current or future holdings. Laudus Trust Annual Report 19 Performance and Fund Facts Laudus Rosenberg International Discovery Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
S&P/CITIGROUP GLOBAL EX US INSTITUTIONAL SHARES BMI $2-10 BILL CAP RANGE* -------------------- -------------------------- 5/31/06 50000 50000 3/31/2007 58966 59300
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
S&P/CITIGROUP GLOBAL EX US INVESTOR SHARES BMI $2-10 BILL CAP RANGE* --------------- -------------------------- 5/31/06 10000 10000 3/31/2007 11771 11860
TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR INSTITUTIONAL** INVESTOR** Institutional (5/31/06) n/a 21.90% n/a Investor (5/31/06) n/a n/a 21.62% S&P/Citigroup Global ex US BMI $2-10 Bill Cap Range* n/a 22.73% 22.73%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Investing in emerging markets accentuates these risks. Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * The S&P/Citigroup Global ex US Broad Market Index (BMI) $2 - $10 Bill Cap Range includes companies in approximately 52 developed and emerging markets with more than $100 million of free float capitalization. ** For the period from inception 5/31/06 through 3/31/07. Not annualized. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 5/31/06 5/31/06 Total Net Assets ($ x 1,000) $19,173 $51,572 Ticker Symbol LIDSX LIDIX Cusip 51855Q689 51855Q697 NAV $12.05 $12.04 Net Expense Ratio(3) 1.34% 1.65% Gross Expense Ratio(4) 1.34% 1.74%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 475 Avg. Market Capitalization ($Wtd. x 1,000,000) 6,902 Portfolio Turnover (One year trailing) 106% Price to Earnings (P/E) 16.26 Price to Book (P/B) 1.83 Price to Cash Flow 8.72 Beta 1.01 Return on Equity 12.06% Five-Year Earnings Growth 28.50%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - -------------------------------------------------------- Sumitomo Metal Mining Co., Ltd. 0.7% Compagnie Generale des Etablissements Michelin, 0.7% Class B Suncorp-Metway Ltd. 0.7% Kobe Steel Ltd. 0.7% Cap Gemini S.A. 0.6% Asahi Kasei Corp. 0.6% Infineon Technologies AG 0.6% Saputo, Inc. 0.6% Konica Minolta Holdings, Inc. 0.6% National Bank of Canada 0.6% TOTAL 6.4%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 20 Laudus Trust Annual Report Performance and Fund Facts continued Laudus Rosenberg International Discovery Fund as of 3/31/07 PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Financials 20.0 Materials 19.7 Consumer Discretionary 16.4 Industrials 14.8 Consumer Staples 8.0 Information Technology 6.4 Utilities 5.8 Telecommunication Services 4.3 Energy 3.2 Health Care 1.4
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ COUNTRY WEIGHTINGS (PIE CHART) Japan 21.1 United Kingdom 12.0 France 6.4 Australia 5.6 Canada 5.3 Italy 3.8 Taiwan 3.4 Germany 3.3 Hong Kong 3.2 South Korea 3.0 Switzerland 2.4 South Africa 2.1 India 2.0 Brazil 1.9 Spain 1.8 China 1.8 Poland 1.7 Austria 1.6 Netherlands 1.6 Denmark 1.6 Other Countries 14.4
(1) Portfolio holdings are subject to change and may not represent current or future holdings. Laudus Trust Annual Report 21 Performance and Fund Facts Laudus Rosenberg International Small Capitalization Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
S&P/CITIGROUP WORLD EX US INSTITUTIONAL SHARES EMI * -------------------- ------------------------- 9/23/96 50000 50000 3/97 50650 48865 3/98 51921 52862 3/99 47337 51308 3/00 62503 63735 3/01 55759 50051 3/02 53083 50061 3/03 50238 41766 3/04 89101 73646 3/05 112731 89914 3/06 147565 118642 3/07 178288 146095
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
S&P/CITIGROUP WORLD EX US INVESTOR SHARES EMI* --------------- ------------------------- 10/29/96 10000 10000 3/97 10090 9791 3/98 10314 10592 3/99 9369 10281 3/00 12317 12770 3/01 10952 10029 3/02 10396 10031 3/03 9821 8369 3/04 17375 14756 3/05 21919 18016 3/06 28600 23772 3/07 34420 29273
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR 10 YEARS INSTITUTIONAL INVESTOR Institutional (9/23/96) 20.82% 27.42% 13.41% 12.85% n/a Investor (10/29/96) 20.35% 27.05% 13.06% n/a 12.59% S&P/Citigroup World ex US EMI* 23.14% 23.89% 11.57% 10.73% 10.85%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * S&P/Citigroup World ex US Extended Market Index (EMI) is a float-adjusted index which measures the performance of small companies (approximately the bottom 20% by market capitalization) in 25 developed equity markets. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 9/23/96 10/29/96 Total Net Assets ($ x 1,000) $1,048,829 $882,163 Ticker Symbol ICSIX RISIX Cusip 51855Q606 51855Q796 NAV $22.67 $22.38 Gross Expense Ratio(3) 1.25% 1.60%
FUND CHARACTERISTICS(2) Long - -------------------------------------------------------- Number of Securities 1,119 Avg. Market Capitalization 4,344 ($Wtd. x 1,000,000) Portfolio Turnover 92% (One year trailing) Price to Earnings (P/E) 16.26 Price to Book (P/B) 1.64 Price to Cash Flow 8.79 Beta 1.04 Return on Equity 10.81% Five-Year Earnings Growth 27.14%
TOP EQUITY HOLDINGS(2) % of Net Assets Long - -------------------------------------------------------- Compagnie Generale des Etablissements Michelin, Class B 1.4% Enterprise Inns plc 1.2% Swiss Life Holding -- Reg'd 1.2% Cable & Wireless 1.1% Antofagasta plc 1.1% IFIL -- Investments S.p.A. 1.1% Infineon Technologies AG 1.1% International Power plc 1.0% Friends Provident plc 0.9% Air France-KLM 0.9% TOTAL 11.0%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 22 Laudus Trust Annual Report Performance and Fund Facts continued Laudus Rosenberg International Small Capitalization Fund as of 3/31/07 PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS (PIE CHART) Consumer Discretionary 21.3 Financials 19.6 Industrials 18.4 Materials 17.8 Information Technology 7.7 Consumer Staples 6.6 Utilities 3.5 Telecommunication Services 2.1 Health Care 2.0 Energy 1.0
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ COUNTRY WEIGHTINGS (PIE CHART) United Kingdom 19.3 Japan 17.9 France 10.5 Switzerland 8.4 Canada 6 Italy 4.9 Germany 4.8 Australia 4.4 Netherlands 3.4 South Korea 3.3 Sweden 2.8 Spain 2.3 Finland 2.1 Austria 2 Hong Kong 1.7 Belgium 1.5 Other Countries 4.7
(1) Portfolio holdings are subject to change and may not represent current or future holdings. Laudus Trust Annual Report 23 Performance and Fund Facts Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES 90-DAY T-BILLS -------------------- -------------- 10/19/98 50000 50000 3/99 52570 51005 3/00 57732 53530 3/01 54967 56624 3/02 60024 58351 3/03 67767 59244 3/04 63586 59812 3/05 67356 60925 3/06 72267 63264 3/07 75863 66579
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES 90-DAY T-BILLS --------------- -------------- 11/11/98 10000 10000 3/99 10471 10169 3/00 11454 10672 3/01 10875 11289 3/02 11850 11634 3/03 13330 11812 3/04 12469 11925 3/05 13158 12147 3/06 14091 12613 3/07 14750 13274
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (10/19/98) 4.98% 4.80% 5.06% n/a Investor (11/11/98) 4.68% 4.48% n/a 4.74% 90 day T-bills 5.24% 2.68% 3.45% 3.43%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Mid-capitalization stocks typically carry additional risk, since smaller companies generally have higher risk and volatility. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's performance. AXA Rosenberg attempts to achieve returns for the Fund's shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 10/19/98 11/11/98 Total Net Assets ($ x 1,000) $10,176 $9,148 Ticker Symbol SSMNX RMNIX Cusip 51855Q804 51855Q770 NAV $12.14 $12.19 Net Expense Ratio(3) 1.24% 1.54% Net Expense Ratio(4) (paid by shareholders) 2.69% 2.99% Gross Expense Ratio(5) 3.01% 3.31%
FUND CHARACTERISTICS(2) Long Short - ---------------------------------------------------------- Number of Securities 72.00 65 Avg. Market Capitalization ($Wtd. 56,875 49,181 x 1,000,000) Portfolio Turnover 169% 116% (One year trailing) Price to Earnings (P/E) 15.73 48.62 Price to Book (P/B) 2.68 3.98 Price to Cash Flow 11.34 15.97 Beta 1.20 1.15 Return on Equity 19.59% 8.41% Five-Year Earnings Growth 24.27% 19.81%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Excludes dividend expense on securities sold short, an expense associated with executing this strategy. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Includes dividend expense on securities sold short. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (5) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 24 Laudus Trust Annual Report Performance and Fund Facts continued Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund as of 3/31/07
TOP EQUITY HOLDINGS(1) % of Net Assets Long - --------------------------------------------------------- AT&T Corp. 4.6% The Allstate Corp. 4.2% Union Pacific Corp. 4.2% International Business Machines Corp. 4.1% Bank of America Corp. 3.8% Loews Corp. 3.5% Merrill Lynch & Co., Inc. 3.0% PG&E Corp. 3.0% ACE Ltd. 3.0% Honeywell International, Inc. 2.8% TOTAL 36.2%
TOP EQUITY HOLDINGS(1) % of Net Assets Short - --------------------------------------------------------- Microsoft Corp. 4.2% Yahoo! Inc. 3.9% eBay, Inc. 3.6% The Procter & Gamble Co. 3.5% Intel Corp. 3.4% TXU Corp. 2.9% The Dow Chemical Co. 2.8% Adobe Systems, Inc. 2.7% Amgen, Inc. 2.6% Ford Motor Co. 2.6% TOTAL 32.2%
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS--LONG POSITIONS (PIE CHART) Financials 24.0 Information Technology 22.5 Industrials 13.4 Consumer Discretionary 10.8 Telecommunication Services 7.0 Utilities 6.6 Consumer Staples 4.0 Health Care 4.0 Energy 3.9 Materials 3.8
PORTFOLIO COMPOSITION(1) % of Short Positions - ------------------------------------------------------------ SECTOR WEIGHTINGS--SHORT POSITIONS (PIE CHART) Information Technology 35.6 Financials 20.7 Health Care 9.9 Consumer Discretionary 7.7 Utilities 7.5 Industrials 6.3 Consumer Staples 5.8 Energy 3.6 Materials 2.9
(1) Portfolio holdings are subject to change and may not represent current or future holdings. Laudus Trust Annual Report 25 Performance and Fund Facts Laudus Rosenberg Global Long/Short Equity Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES 90-DAY T-BILLS -------------------- -------------- 9/29/00 50000 50000 3/01 48220 51435 3/02 54108 53004 3/03 63279 53815 3/04 60242 54331 3/05 61946 55342 3/06 66227 57467 3/07 67398 60478
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES 90-DAY T-BILLS --------------- -------------- 8/23/01 10000 10000 3/02 10358 10168 3/03 12076 10324 3/04 11462 10423 3/05 11748 10493 3/06 12521 10895 3/07 12702 11466
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (9/29/00) 1.77% 4.49% 4.70% n/a Investor (8/23/01) 1.45% 4.17% n/a 4.36% 90 day T-bills 5.24% 2.68% 2.97% 2.68%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's performance. AXA Rosenberg attempts to achieve returns for the Fund's shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW (2) Shares Shares - ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 9/29/00 8/23/01 Total Net Assets ($ x 1,000) $17,005 $3,655 Ticker Symbol MSMNX RMSIX Cusip 51855Q879 51855Q754 NAV $12.23 $12.12 Net Expense Ratio(3) 1.99% 2.29% Net Expense Ratio(4) (paid by shareholders) 3.07% 3.37% Gross Expense Ratio(5) 3.31% 3.68%
FUND CHARACTERISTICS(2) Long Short - ---------------------------------------------------------- Number of Securities 413 424 Avg. Market Capitalization ($Wtd. X 1,000,000) 27,366 25,073 Portfolio Turnover 234% 157% (One year trailing) Price to Earnings (P/E) 20.15 26.68 Price to Book (P/B) 2.23 3.31 Price to Cash Flow 10.92 15.53 Beta 1.26 1.12 Return on Equity 12.05% 13.47% Five-Year Earnings Growth 28.08% 27.13%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Excludes dividend expense on securities sold short, an expense associated with executing this strategy. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (4) Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/09. Includes dividend expense on securities sold short. Adviser expects to hold expenses at this level by waiving its management fee and/or bearing other expenses. Please see the prospectus for more information. (5) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 26 Laudus Trust Annual Report Performance and Fund Facts continued Laudus Rosenberg Global Long/Short Equity Fund as of 3/31/07
TOP EQUITY HOLDINGS (1) % of Net Assets Long - ------------------------------------------------------------------------------------ Cisco Systems, Inc. 2.2% Union Pacific Corp. 1.2% Bank of America Corp. 1.1% AT&T Corp. 1.1% International Business Machines Corp. 1.0% J.C. Penney Co., Inc. 0.9% Celgene Corp. 0.9% Merrill Lynch & Co., Inc. 0.9% NII Holdings, Inc. 0.9% Loews Corp. 0.9% TOTAL 11.1%
TOP EQUITY HOLDINGS(1) % of Net Assets Short - ------------------------------------------------------------------------------------ Intel Corp. 1.8% Yahoo! Inc. 1.8% eBay, Inc. 1.7% QUALCOMM, Inc. 1.5% Dell, Inc. 1.5% United Parcel Service, Inc., Class B 1.4% Microsoft Corp. 1.3% Wm. Wrigley Jr. Co. 1.0% Amazon.com, Inc. 0.8% Genentech, Inc. 0.8% TOTAL 13.6%
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS--LONG HOLDINGS (PIE CHART) Consumer Discretionary 22.3 Information Technology 15.9 Industrials 14.6 Financials 13.7 Materials 11.0 Health Care 6.0 Telecommunication Services 5.3 Consumer Staples 4.7 Energy 3.3 Utilities 3.2
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ COUNTRY WEIGHTINGS--LONG HOLDINGS (PIE CHART) United States 50.2 Japan 24.9 United Kingdom 5.5 France 4.2 Switzerland 2.6 Italy 2.5 Germany 2.1 Spain 1.5 Netherlands 1.4 Belgium 1.4 Sweden 1.3 Denmark 0.9 Ireland 0.5 Austria 0.5 Finland 0.5
PORTFOLIO COMPOSITION(1) % of Short Positions - ------------------------------------------------------------ SECTOR WEIGHTINGS--SHORT POSITIONS (PIE CHART) Information Technology 27.3 Industrials 20.9 Financials 15.2 Consumer Discretionary 12.6 Health Care 9.7 Consumer Staples 5.9 Energy 4.1 Utilities 2.2 Materials 2.1
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ COUNTRY WEIGHTINGS--SHORT POSITIONS (PIE CHART) United States 49.8 Japan 25.2 United Kingdom 6.9 France 3.7 Germany 3.1 Switzerland 2.1 Italy 1.9 Spain 1.6 Netherlands 1.3 Sweden 1.2 Norway 1.1 Finland 1.0 Denmark 0.8 Austria 0.3
(1) Portfolio holdings are subject to change and may not represent current or future holdings. Laudus Trust Annual Report 27 Performance and Fund Facts Laudus Rosenberg Value Long/Short Equity Fund as of 3/31/07 PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) - --------------------------------------------- (LINE GRAPH)
INSTITUTIONAL SHARES 90-DAY T-BILLS -------------------- -------------- 12/16/97 50000 50000 3/98 49850 50754 3/99 46206 53180 3/00 39677 55812 3/01 46010 59038 3/02 52235 60839 3/03 61094 61769 3/04 57538 62362 3/05 61266 63522 3/06 62743 65962 3/07 64743 69418
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) - ---------------------------------------- (LINE GRAPH)
INVESTOR SHARES 90-DAY T-BILLS --------------- -------------- 12/18/97 10000 10000 3/98 9960 10147 3/99 9197 10632 3/00 7872 11158 3/01 9091 11803 3/02 10295 12163 3/03 11997 12349 3/04 11284 12468 3/05 11974 12700 3/06 12223 13187 3/07 12566 13879
AVERAGE ANNUAL TOTAL RETURNS(1) - --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (12/16/97) 3.19% 4.39% 2.82% n/a Investor (12/18/97) 2.81% 4.07% n/a 2.49% 90 day T-bills 5.24% 2.68% 3.59% 3.59%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's performance. AXA Rosenberg attempts to achieve returns for the Fund's shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills. Small- and mid-capitalization funds typically carry additional risk since small- and mid-capitalization companies generally have a higher risk of failure. Value-based investments are subject to the risk that the broad market may not recognize their value. (1) Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares - ------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 12/16/97 12/18/97 Total Net Assets ($ x 1,000) $260,596 $64,400 Ticker Symbol BMNIX BRMIX Cusip 51855Q861 51855Q762 NAV $10.75 $10.63 Gross Expense Ratio(3) 1.74% 2.04% Gross Expense Ratio(4) (paid by 2.89% 3.19% shareholders)
FUND CHARACTERISTICS(2) Long Short - ---------------------------------------------------------- Number of Securities 799 472 Avg. Market Capitalization 3,562 3,321 ($Wtd. x 1,000,000) Portfolio Turnover (One year 140% 119% trailing) Price to Earnings (P/E) 17.20 45.27 Price to Book (P/B) 2.04 2.83 Price to Cash Flow 12.77 19.36 Beta 1.35 1.36 Return on Equity 13.15% 6.44% Five-Year Earnings Growth 29.60% 13.82%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Excludes dividend expense on securities sold short, an expense associated with executing this strategy. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. (4) Total Annual Fund Operating Expenses. Provides the expense ratio projected for this Share Class for the period 7/31/06 - 7/31/07. Includes dividend expense on securities sold short, an expense associated with executing this strategy. Actual expenses influenced by total assets and may be reduced based on contractual fee waiver by Adviser. Please see the prospectus for more information. 28 Laudus Trust Annual Report Performance and Fund Facts continued Laudus Rosenberg Value Long/Short Equity Fund as of 3/31/07
TOP EQUITY HOLDINGS(1) % of Net Assets Long - --------------------------------------------------------- United States Steel Corp. 1.3% NII Holdings, Inc. 1.2% Celgene Corp. 1.2% Avnet, Inc. 1.1% Allegheny Technologies, Inc. 1.1% ENSCO International, Inc. 1.1% The Sherwin-Williams Co. 1.1% BMC Software, Inc. 1.0% A.G. Edwards, Inc. 1.0% Phillips-Van Heusen Corp. 0.9% TOTAL 11.0%
TOP EQUITY HOLDINGS(1) % of Net Assets Short - --------------------------------------------------------- Sovereign Bancorp, Inc. 1.0% Developers Diversified Realty Corp. 1.0% Activision, Inc. 1.0% Intuitive Surgical, Inc. 1.0% New York Community Bancorp, Inc. 1.0% Plum Creek Timber Co., Inc. 1.0% VeriSign, Inc. 1.0% Altera Corp. 0.9% R.H. Donnelley Corp. 0.9% Kinder Morgan Management, LLC 0.9% TOTAL 9.7%
PORTFOLIO COMPOSITION(1) % of Investments - ------------------------------------------------------------ SECTOR WEIGHTINGS--LONG HOLDINGS (PIE CHART) Financials 22.5 Information Technology 18.0 Consumer Discretionary 15.8 Industrials 15.1 Health Care 8.8 Energy 6.4 Materials 6.0 Consumer Staples 3.4 Telecommunication Services 2.1 Utilities 1.9
PORTFOLIO COMPOSITION(1) % of Short Positions - ------------------------------------------------------------ SECTOR WEIGHTINGS--SHORT POSITIONS (PIE CHART) Financials 22.3 Consumer Discretionary 20.6 Information Technology 19.4 Health Care 14.3 Industrials 10.7 Energy 6.2 Materials 3.3 Telecommunication Services 1.5 Consumer Staples 1.3 Utilities 0.4
(1) Portfolio holdings are subject to change and may not represent current or future holdings. Laudus Trust Annual Report 29 Disclosure of Fund Expenses (Unaudited) EXAMPLES FOR A $1,000 INVESTMENT As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees; and, ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses. The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the period beginning October 1, 2006 and held through March 31, 2007, unless otherwise noted. ACTUAL RETURN lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value / $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled "Expenses Paid During Period." HYPOTHETICAL RETURN lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund's share classes' actual expense ratios and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.
ENDING BEGINNING ACCOUNT VALUE EXPENSES EXPENSE RATIO(1) ACCOUNT VALUE (NET OF EXPENSES) PAID DURING PERIOD(2) (Annualized) at 10/1/06 at 3/31/07 10/1/06 - 3/31/07 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND Institutional Shares 1.00% Actual Return $1,000 $1,094.18 $ 5.22 Hypothetical 5% Return $1,000 $1,019.95 $ 5.04 Investor Shares 1.31% Actual Return $1,000 $1,091.93 $ 6.83 Hypothetical 5% Return $1,000 $1,018.40 $ 6.59 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND Institutional Shares 0.99% Actual Return $1,000 $1,077.20 $ 5.13 Hypothetical 5% Return $1,000 $1,020.00 $ 4.99 Investor Shares 1.29% Actual Return $1,000 $1,075.50 $ 6.68 Hypothetical 5% Return $1,000 $1,018.50 $ 6.49 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND Institutional Shares 0.99% Actual Return $1,000 $1,097.60 $ 5.18 Hypothetical 5% Return $1,000 $1,020.13 $ 4.99 Investor Shares 1.29% Actual Return $1,000 $1,096.20 $ 6.74 Hypothetical 5% Return $1,000 $1,018.64 $ 6.49 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. DISCOVERY FUND Institutional Shares 0.97% Actual Return $1,000 $1,120.00 $ 5.13 Hypothetical 5% Return $1,000 $1,020.09 $ 4.89 Investor Shares 1.37% Actual Return $1,000 $1,117.90 $ 7.23 Hypothetical 5% Return $1,000 $1,018.10 $ 6.89 - ---------------------------------------------------------------------------------------------------------------------------------
(1) Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. (2) Expenses for each fund or share class are equal to that fund's or share class' annualized expense ratio (net of any expenses waived or reimbursed), multiplied by the average account value for the hypothetical account over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. 30 Laudus Trust Annual Report
ENDING BEGINNING ACCOUNT VALUE EXPENSES EXPENSE RATIO(1) ACCOUNT VALUE (NET OF EXPENSES) PAID DURING PERIOD(2) (Annualized) at 10/1/06 at 3/31/07 10/1/06 - 3/31/07 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND Institutional Shares 0.92% Actual Return $1,000 $1,089.30 $ 4.79 Hypothetical 5% Return $1,000 $1,020.34 $ 4.63 Adviser Shares 1.17% Actual Return $1,000 $1,088.20 $ 6.09 Hypothetical 5% Return $1,000 $1,019.10 $ 5.89 Investor Shares 1.28% Actual Return $1,000 $1,087.30 $ 6.66 Hypothetical 5% Return $1,000 $1,018.55 $ 6.44 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND Institutional Shares 1.34% Actual Return $1,000 $1,154.40 $ 7.20 Hypothetical 5% Return $1,000 $1,018.25 $ 6.74 Investor Shares 1.64% Actual Return $1,000 $1,152.40 $ 8.80 Hypothetical 5% Return $1,000 $1,016.75 $ 8.25 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND Institutional Shares 1.34% Actual Return $1,000 $1,189.20 $ 7.31 Hypothetical 5% Return $1,000 $1,018.25 $ 6.74 Investor Shares 1.64% Actual Return $1,000 $1,187.60 $ 8.94 Hypothetical 5% Return $1,000 $1,016.75 $ 8.25 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND Institutional Shares 1.10% Actual Return $1,000 $1,202.42 $ 6.04 Hypothetical 5% Return $1,000 $1,019.45 $ 5.54 Investor Shares 1.50% Actual Return $1,000 $1,200.05 $ 8.23 Hypothetical 5% Return $1,000 $1,017.45 $ 7.54 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND Institutional Shares 2.59% Actual Return $1,000 $1,036.00 $13.15 Hypothetical 5% Return $1,000 $1,012.02 $12.99 Investor Shares 2.90% Actual Return $1,000 $1,034.80 $14.71 Hypothetical 5% Return $1,000 $1,010.47 $14.54 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND Institutional Shares 3.05% Actual Return $1,000 $1,035.34 $15.48 Hypothetical 5% Return $1,000 $1,009.72 $15.28 Investor Shares 3.36% Actual Return $1,000 $1,033.17 $17.03 Hypothetical 5% Return $1,000 $1,008.18 $16.82 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND Institutional Shares 3.09% Actual Return $1,000 $1,026.10 $15.61 Hypothetical 5% Return $1,000 $1,009.52 $15.48 Investor Shares 3.39% Actual Return $1,000 $1,024.20 $17.11 Hypothetical 5% Return $1,000 $1,008.03 $16.97 - ---------------------------------------------------------------------------------------------------------------------------------
(1) Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. (2) Expenses for each fund or share class are equal to that fund's or share class' annualized expense ratio (net of any expenses waived or reimbursed), multiplied by the average account value for the hypothetical account over the period, multiplied by 182 days of the period, and divided by 365 days of the fiscal year. Laudus Trust Annual Report 31 LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 99.4% COMMON STOCK 92,204,139 104,326,475 --% SHORT-TERM INVESTMENT 40,000 40,000 - ----------------------------------------------------------------- 99.4% TOTAL INVESTMENTS 92,244,139 104,366,475 0.6% OTHER ASSETS AND LIABILITIES 628,072 - ----------------------------------------------------------------- 100.0% NET ASSETS 104,994,547
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 99.4% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 2.9% - ----------------------------------------------------------------- Bunge Ltd. 730 60,020 Campbell Soup Co. 13,400 521,930 Corn Products International, Inc. 3,700 131,683 General Mills, Inc. 17,290 1,006,624 H.J. Heinz Co. 1,140 53,717 Kellogg Co. 14,100 725,163 Seaboard Corp. 127 287,020 The Pepsi Bottling Group, Inc. 8,590 273,935 --------------- 3,060,092 AIRLINES 0.5% - ----------------------------------------------------------------- FedEx Corp. 4,980 535,001 BANKS & CREDIT INSTITUTIONS 7.3% - ----------------------------------------------------------------- Bank of America Corp. 75,420 3,847,929 The Bank of New York Co., Inc. 33,249 1,348,247 The First Marblehead Corp. 460 20,649 Wachovia Corp. 44,000 2,422,200 --------------- 7,639,025 BASIC MINERALS & METALS 3.9% - ----------------------------------------------------------------- Allegheny Technologies, Inc. 5,670 604,932 Chaparral Steel Co. 2,260 131,464 Freeport-McMoran Copper & Gold, Inc., Class B 10,170 673,152 Nucor Corp. 12,091 787,487 Precision Castparts Corp. 7,386 768,513 Reliance Steel & Aluminum Co. 4,000 193,600 Southern Copper Corp. 2,800 200,648 Steel Dynamics, Inc. 3,507 151,503 United States Steel Corp. 6,300 624,771 --------------- 4,136,070 BEER, LIQUOR, & TOBACCO 2.9% - ----------------------------------------------------------------- Altria Group, Inc. 10,874 954,846 Anheuser-Busch Cos., Inc. 32,600 1,644,996 UST, Inc. 7,460 432,531 --------------- 3,032,373 BIOTECHNOLOGY 1.0% - ----------------------------------------------------------------- Celgene Corp. * 19,500 1,022,970 CELLULAR & WIRELESS 0.6% - ----------------------------------------------------------------- NII Holdings, Inc. * 8,300 615,694 CHEMICALS & RUBBER 1.4% - ----------------------------------------------------------------- Cabot Corp. 3,890 185,670 Celanese Corp., Series A 4,600 141,864
NUMBER OF VALUE SECURITY SHARES ($) FMC Corp. 2,260 170,472 Hercules, Inc. * 6,400 125,056 Nalco Holding Co. 6,600 157,740 The Sherwin-Williams Co. 10,980 725,119 --------------- 1,505,921 COMMERCIAL AIRCRAFT & COMPONENTS 0.3% - ----------------------------------------------------------------- Rockwell Collins, Inc. 5,280 353,390 COMMUNICATIONS UTILITIES 5.3% - ----------------------------------------------------------------- AT&T Corp. 100,751 3,972,612 CenturyTel, Inc. 400 18,076 Comcast Corp., Class A * 30,711 796,950 Qwest Communications International, Inc. * 54,691 491,672 The DIRECTV Group, Inc. * 10,150 234,161 --------------- 5,513,471 CONSTRUCTION & HOMEBUILDING 0.0% - ----------------------------------------------------------------- Granite Construction, Inc. 380 20,999 CONSTRUCTION MATERIALS 0.3% - ----------------------------------------------------------------- MDU Resources Group, Inc. 10,547 303,121 CONSUMER DURABLES 0.7% - ----------------------------------------------------------------- Harley-Davidson, Inc. 12,422 729,793 DRUGS & PHARMACEUTICALS 3.6% - ----------------------------------------------------------------- King Pharmaceuticals, Inc. * 7,510 147,722 Merck & Co., Inc. 3,850 170,055 NBTY, Inc. * 3,000 159,120 Pfizer, Inc. 75,732 1,912,990 Schering-Plough Corp. 37,420 954,584 Wyeth 8,440 422,253 --------------- 3,766,724 ELECTRIC UTILITIES 3.8% - ----------------------------------------------------------------- Alliant Energy Corp. 7,060 316,429 Consolidated Edison, Inc. 13,420 685,225 Constellation Energy Group 2,620 227,809 Edison International 13,300 653,429 Exelon Corp. 390 26,797 FPL Group, Inc. 13,100 801,327 Northeast Utilities 9,277 304,007 PG&E Corp. 18,300 883,341 Puget Energy, Inc. 1,580 40,574 Westar Energy, Inc. 2,370 65,223 --------------- 4,004,161 FOREST PRODUCTS & PAPER 1.1% - ----------------------------------------------------------------- 3M Co. 4,559 348,444 International Paper Co. 23,400 851,760 --------------- 1,200,204 FURNITURE & HOUSEHOLD ITEMS 1.5% - ----------------------------------------------------------------- Acuity Brands, Inc. 2,400 130,656 Hasbro, Inc. 9,800 280,476 International Game Technology 16 646 Mattel, Inc. 22,010 606,816 Steelcase, Inc., Class A 4,800 95,472 The Procter & Gamble Co. 7,000 442,120 --------------- 1,556,186
See financial notes. 32 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) GOVERNMENT AIRCRAFT & DEFENSE 2.1% - ----------------------------------------------------------------- Garmin Ltd. 10,121 548,052 General Dynamics Corp. 8,580 655,512 Lockheed Martin Corp. 1,600 155,232 Raytheon Co. 16,950 889,197 --------------- 2,247,993 HEALTH CARE & HOSPITAL 1.0% - ----------------------------------------------------------------- Health Net, Inc. * 6,516 350,626 Humana, Inc. * 9,600 556,992 Laboratory Corp. of America Holdings * 2,560 185,933 Manor Care, Inc. 80 4,349 --------------- 1,097,900 INFORMATION & SERVICES 1.8% - ----------------------------------------------------------------- Accenture Ltd., Class A 25,140 968,896 IAC/InterActive Corp. * 9,262 349,270 Manpower, Inc. 2,590 191,064 Sotheby's 1,060 47,149 The Dun & Bradstreet Corp. 4,080 372,096 --------------- 1,928,475 INSTRUMENTS 3.0% - ----------------------------------------------------------------- Baxter International, Inc. 25,850 1,361,519 Honeywell International, Inc. 18,500 852,110 Johnson & Johnson 5,130 309,134 Mettler-Toledo International, Inc. * 1,070 95,840 PerkinElmer, Inc. 7,700 186,494 Waters Corp. * 6,300 365,400 --------------- 3,170,497 INSURANCE 9.1% - ----------------------------------------------------------------- ACE Ltd. 15,800 901,548 Alleghany Corp. * 326 121,943 American Financial Group, Inc. 5,250 178,710 American International Group, Inc. 2,300 154,606 American National Insurance Co. 440 56,289 Arch Capital Group Ltd. * 4,100 279,661 Aspen Insurance Holdings Ltd. 4,890 128,167 CNA Financial Corp. * 3,040 130,994 Endurance Specialty Holdings Ltd. 3,560 127,234 Everest Re Group Ltd. 3,400 326,978 Loews Corp. 25,200 1,144,836 MetLife, Inc. 21,900 1,382,985 PartnerRe Ltd. 1,380 94,585 Prudential Financial, Inc. 12,214 1,102,436 Radian Group, Inc. 4,800 263,424 Reinsurance Group of America, Inc. 1,870 107,936 The Allstate Corp. 25,500 1,531,530 The Chubb Corp. 3,650 188,596 The Travelers Cos., Inc. * 12,330 638,324 Wesco Financial Corp. 200 92,000 XL Capital Ltd., Class A 8,730 610,751 --------------- 9,563,533 INTEGRATED OIL COMPANIES 5.9% - ----------------------------------------------------------------- Chevron Corp. 7,512 555,588 Exxon Mobil Corp. 61,090 4,609,240
NUMBER OF VALUE SECURITY SHARES ($) Hess Corp. 10,400 576,888 Marathon Oil Corp. 4,840 478,337 --------------- 6,220,053 IT HARDWARE 4.1% - ----------------------------------------------------------------- Amphenol Corp., Class A 5,600 361,592 Cisco Systems, Inc. * 117,942 3,011,059 Harris Corp. 3,600 183,420 LSI Logic Corp. * 11,451 119,548 MEMC Electronic Materials, Inc. * 8,960 542,797 NVIDIA Corp. * 795 22,880 ON Semiconductor Corp. * 1,690 15,075 --------------- 4,256,371 LAND & WATER TRANSPORTATION 1.3% - ----------------------------------------------------------------- Burlington Northern Santa Fe Corp. 430 34,585 CSX Corp. 70 2,804 Seacor Holdings, Inc. * 500 49,200 Union Pacific Corp. 12,270 1,246,018 --------------- 1,332,607 METAL PRODUCTS & MACHINERY 3.8% - ----------------------------------------------------------------- AGCO Corp. * 3,120 115,346 American Standard Cos., Inc. 9,610 509,522 Dover Corp. 7 342 General Electric Co. 49,900 1,764,464 Lincoln Electric Holdings, Inc. 2,110 125,672 Parker Hannifin Corp. 7,000 604,170 SPX Corp. 3,540 248,508 Terex Corp. * 5,714 410,037 The Manitowoc Co., Inc. 1,210 76,871 Varian Semiconductor Equipment Associates, Inc. * 3,013 160,834 --------------- 4,015,766 MISCELLANEOUS FINANCE 4.9% - ----------------------------------------------------------------- A.G. Edwards, Inc. 4,400 304,392 Chicago Mercantile Exchange Holdings, Inc., Class A 334 177,842 Citigroup, Inc. 14,200 729,028 JPMorgan Chase & Co. 37,011 1,790,592 Merrill Lynch & Co., Inc. 24,300 1,984,581 Morgan Stanley 1,434 112,942 --------------- 5,099,377 OIL & COAL RESOURCES 0.3% - ----------------------------------------------------------------- XTO Energy, Inc. 5,530 303,099 OIL DISTRIBUTION 0.3% - ----------------------------------------------------------------- Holly Corp. 2,720 161,296 Tesoro Corp. 1,420 142,611 --------------- 303,907 OIL DRILLING & SERVICES 2.0% - ----------------------------------------------------------------- Diamond Offshore Drilling, Inc. 3,370 272,801 ENSCO International, Inc. 9,000 489,600 GlobalSantaFe Corp. 10,540 650,107 Noble Corp. 3,570 280,888 Superior Energy Services, Inc. * 4,900 168,903 Tidewater, Inc. 3,800 222,604 --------------- 2,084,903
See financial notes. Laudus Funds Annual Report 33 LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 2.1% - ----------------------------------------------------------------- Brocade Communications Systems, Inc. * 7,970 75,874 Hewlett-Packard Co. 51,920 2,084,069 --------------- 2,159,943 PUBLISHING, BROADCASTING & CINEMA 5.9% - ----------------------------------------------------------------- CBS Corp., Class B 25,208 771,113 Gannett Co., Inc. 13,660 768,921 News Corp., Class A 82,749 1,913,157 The Walt Disney Co. 59,627 2,052,957 Time Warner, Inc. 33,333 657,327 --------------- 6,163,475 REAL ESTATE DEVELOPMENT 0.2% - ----------------------------------------------------------------- Service Corp. International 13,490 159,991 REAL ESTATE INVESTMENT TRUSTS 0.1% - ----------------------------------------------------------------- HRPT Properties Trust 12,150 149,445 RESTAURANTS, HOTELS & THEATERS 1.9% - ----------------------------------------------------------------- Burger King Holdings, Inc. 300 6,480 McDonald's Corp. 44,780 2,017,339 --------------- 2,023,819 RETAIL 3.6% - ----------------------------------------------------------------- Abercrombie & Fitch Co., Class A 5,700 431,376 American Eagle Outfitters, Inc. 4,050 121,459 AutoZone, Inc. * 3,340 427,988 Big Lots, Inc. * 6,100 190,808 CVS/Caremark Corp. 1,100 37,554 J.C. Penney Co., Inc. 11,990 985,098 Nordstrom, Inc. 13,140 695,632 OfficeMax, Inc. 4,160 219,398 Safeway, Inc. 9,950 364,568 The Kroger Co. 10,240 289,280 The Men's Wearhouse, Inc. 450 21,173 --------------- 3,784,334 SOAPS & COSMETICS 0.1% - ----------------------------------------------------------------- Avon Products, Inc. 1,640 61,106 The Estee Lauder Cos., Inc., Class A 140 6,839 --------------- 67,945 SOFTWARE 7.0% - ----------------------------------------------------------------- BMC Software, Inc. * 12,160 374,406 Cadence Design Systems, Inc. * 10,750 226,395 Cognizant Technology Solutions Corp., Class A * 7,819 690,183
NUMBER OF VALUE SECURITY SHARES ($) Computer Sciences Corp. * 5,360 279,417 International Business Machines Corp. 30,645 2,888,598 Microsoft Corp. 24,270 676,405 Oracle Corp. * 116,220 2,107,069 Sybase, Inc. * 2,070 52,330 THQ, Inc. * 613 20,958 --------------- 7,315,761 TEXTILES & APPAREL 0.8% - ----------------------------------------------------------------- Coach, Inc. * 3,745 187,437 Guess?, Inc. 2,140 86,649 Liz Claiborne, Inc. 6,260 268,241 Polo Ralph Lauren Corp. 3,447 303,853 --------------- 846,180 WHOLESALE 1.0% - ----------------------------------------------------------------- Anixter International, Inc. * 1,700 112,098 Arrow Electronics, Inc. * 7,170 270,668 Avnet, Inc. * 7,600 274,664 W.W. Grainger, Inc. 4,900 378,476 --------------- 1,035,906 --------------- TOTAL COMMON STOCK (COST $92,204,139) 104,326,475 --------------- FACE SECURITY AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT 0.0% OF NET ASSETS REPURCHASE AGREEMENT 0.0% - ----------------------------------------------------------------- Fixed Income Clearing Corp. dated 03/30/07, due 04/02/07 at 5.00%, with a maturity value of $40,017 (fully collateralized by United States Treasury Note with a value of $44,438.) 40,000 40,000 --------------- TOTAL SHORT-TERM INVESTMENT (COST $40,000) 40,000 - ----------------------------------------------------------------- END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was $92,471,527, and the unrealized appreciation and depreciation were $12,476,310 and ($581,362), respectively, with a net unrealized appreciation of $11,894,948. * Non-income producing security. See financial notes. 34 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 99.2% COMMON STOCK 69,070,731 77,114,283 - ----------------------------------------------------------------- 99.2% TOTAL INVESTMENTS 69,070,731 77,114,283 8.0% COLLATERAL FOR SECURITIES ON LOAN 6,243,025 6,243,025 (7.2)% OTHER ASSETS AND LIABILITIES (5,634,450) - ----------------------------------------------------------------- 100.0% NET ASSETS 77,722,858
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 99.2% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 3.0% - ----------------------------------------------------------------- Campbell Soup Co. (a) 3,100 120,744 General Mills Inc 1,490 86,748 H.J. Heinz Co. 4,100 193,192 Kellogg Co. 3,900 200,577 PepsiCo, Inc. 13,100 832,636 The Coca-Cola Co. 17,300 830,400 The Pepsi Bottling Group, Inc. 2,800 89,292 -------------- 2,353,589 AIRLINES 1.1% - ----------------------------------------------------------------- AMR Corp. (a)* 3,270 99,572 Continental Airlines, Inc., Class B * 2,900 105,531 FedEx Corp. 5,200 558,636 U S Airways Group Inc 2,100 95,508 -------------- 859,247 AUTOS 0.3% - ----------------------------------------------------------------- Autoliv, Inc. 483 27,584 BorgWarner, Inc. (a) 200 15,084 PACCAR, Inc. (a) 3,100 227,540 -------------- 270,208 BANKS & CREDIT INSTITUTIONS 4.1% - ----------------------------------------------------------------- Alliance Data Systems Corp 2,100 129,402 American Express Co. 8,900 501,960 Bank of America Corp. 400 20,408 Deere & Co. 800 86,912 First Marblehead Corp (a) 1,715 76,986 Freddie Mac 2,500 148,725 Harley-Davidson, Inc. (a) 5,600 329,000 Investors Financial Services Corp. 2,100 122,115 Mellon Financial Cor 6,300 271,782 Northern Trust Corp (a) 3,900 234,546 SLM Corp. 2,300 94,070 State Street Corp 5,800 375,550 Synovus Financial Corp (a) 4,700 151,998 The Bank of New York Co., Inc. 2,000 81,100 U.S. Bancorp (a) 500 17,485 Wachovia Corp. 3,400 187,170 Wells Fargo & Co. 9,730 335,004 -------------- 3,164,213 BASIC MINERALS & METALS 1.9% - ----------------------------------------------------------------- Alcoa, Inc. 6,900 233,910 Allegheny Technologies, Inc. 2,000 213,380 Carpenter Technology Corp. (a) 900 108,684
NUMBER OF VALUE SECURITY SHARES ($) Freeport-McMoran Copper & Gold, Inc., Class B 2,900 191,951 Harsco Corp. (a) 2,400 107,664 Newmont Mining Corp. (a) 2,200 92,378 Precision Castparts Corp. 2,700 280,935 Southern Copper Corp. (a) 1,600 114,656 Titanium Metals Corp * 2,800 100,464 -------------- 1,444,022 BEER, LIQUOR, & TOBACCO 1.3% - ----------------------------------------------------------------- Altria Group, Inc. 5,200 456,612 Anheuser-Busch Cos., Inc. 9,300 469,278 UST, Inc. (a) 2,100 121,758 -------------- 1,047,648 BIOTECHNOLOGY 1.8% - ----------------------------------------------------------------- Amgen, Inc. * 9,400 525,272 Celgene Corp. (a)* 7,200 377,712 Genentech, Inc. * 3,400 279,208 Gilead Sciences, Inc. * 3,300 252,450 -------------- 1,434,642 CELLULAR & WIRELESS 0.5% - ----------------------------------------------------------------- NII Holdings, Inc. * 3,200 237,376 Sprint Nextel Corp. 5,100 96,696 U.S. Cellular Corp. * 1,000 73,450 -------------- 407,522 CHEMICALS & RUBBER 3.1% - ----------------------------------------------------------------- Cabot Corp. (a) 1,000 47,730 Celanese Corp., Series A 1,600 49,344 Du Pont De Nemours 12,800 632,704 International Flavors & Fragrances, Inc. (a) 2,300 108,606 Monsanto Co. 9,800 538,608 Nalco Holding Company 3,720 88,908 PPG Industries, Inc. 1,200 84,372 Praxair, Inc. 6,000 377,760 Rohm and Haas Co. 400 20,688 Sigma-Aldrich Corp. 2,200 91,344 The Goodyear Tire & Rubber Co. (a)* 4,800 149,712 The Scotts Miracle-Gro Co., Class A (a) 1,300 57,239 The Sherwin-Williams Co. 2,000 132,080 -------------- 2,379,095 COMMERCIAL AIRCRAFT & COMPONENTS 1.6% - ----------------------------------------------------------------- Goodrich Corp. 2,400 123,552 Rockwell Collins, Inc. 3,400 227,562 The Boeing Co. 9,900 880,209 -------------- 1,231,323 COMMUNICATIONS UTILITIES 3.8% - ----------------------------------------------------------------- American Tower Corp., Class A * 3,200 124,640 Comcast Corp., Class A * 22,350 579,982 Echostar Communications Corp 3,790 164,600 Google, Inc., Class A * 2,700 1,237,032 Level 3 Communications, Inc. * 24,300 148,230 The DIRECTV Group, Inc. 16,500 380,655 Yahoo! Inc. * 10,900 341,061 -------------- 2,976,200
See financial notes. Laudus Funds Annual Report 35 LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) CONSTRUCTION & HOMEBUILDING 0.1% - ----------------------------------------------------------------- Quanta Services Inc 1,900 47,918 CONSTRUCTION MATERIALS 0.5% - ----------------------------------------------------------------- Martin Marietta Materials, Inc. (a) 1,100 148,720 Vulcan Materials Co. 1,900 221,312 -------------- 370,032 DRUGS & PHARMACEUTICALS 4.2% - ----------------------------------------------------------------- Abbott Laboratories 9,400 524,520 Allergan, Inc. 1,200 132,984 Bristol-Myers Squibb Co. 6,900 191,544 Eli Lilly & Co. 5,800 311,518 Forest Laboratories, Inc. * 2,300 118,312 Genzyme Corp. * 1,800 108,036 Merck & Co., Inc. 11,630 513,697 Schering-Plough Corp. 26,100 665,811 Wyeth 13,800 690,414 -------------- 3,256,836 ELECTRIC UTILITIES 1.3% - ----------------------------------------------------------------- Constellation Energy Group 1,100 95,645 Exelon Corp 9,600 659,616 PG&E Corp. 600 28,962 The AES Corp. * 3,500 75,320 TXU Corp. 3,010 192,941 -------------- 1,052,484 FINANCIAL INVESTMENTS 0.2% - ----------------------------------------------------------------- Dolby Laboratories Inc., Class A * 1,500 51,765 Trinity Industries I 2,600 108,992 -------------- 160,757 FOREST PRODUCTS & PAPER 1.5% - ----------------------------------------------------------------- 3M Co. 10,200 779,586 Avery Dennison Corp. 1,460 93,820 Kimberly-Clark Corp. 2,000 136,980 Packaging Corp. of America 3,100 75,640 Sealed Air Corp. (a) 2,800 88,480 -------------- 1,174,506 FURNITURE & HOUSEHOLD ITEMS 1.0% - ----------------------------------------------------------------- Carlisle Cos Inc (a) 2,000 85,860 Ethan Allen Interiors, Inc. (a) 200 7,068 Hillenbrand Industries, Inc. (a) 1,000 59,370 International Game Technology 2,980 120,333 Johnson Controls, Inc. (a) 2,200 208,164 Leggett & Platt, Inc. (a) 2,200 49,874 Pactiv Corp. * 3,400 114,716 Steelcase Inc., Class A (a) 2,260 44,951 Thomas & Betts Corp. * 1,300 63,466 -------------- 753,802 GAS & OTHER PUBLIC UTILITIES 0.3% - ----------------------------------------------------------------- Allied Waste Industries Inc (a) 200 2,518 Waste Management, Inc. 3,200 110,112 Williams Cos., Inc. 3,400 96,764 -------------- 209,394 GOVERNMENT AIRCRAFT & DEFENSE 1.5% - ----------------------------------------------------------------- Alliant Techsystems, Inc. (a)* 500 43,960 Lockheed Martin Corp. 5,950 577,269
NUMBER OF VALUE SECURITY SHARES ($) Northrop Grumman Corp. 1,200 89,064 Raytheon Co. 4,600 241,316 Textron, Inc. 2,300 206,540 -------------- 1,158,149 HEALTH CARE & HOSPITAL 1.4% - ----------------------------------------------------------------- Health Net, Inc. * 2,400 129,144 Humana, Inc. * 3,400 197,268 Manor Care, Inc. (a) 2,100 114,156 UnitedHealth Group, Inc. 10,800 572,076 Vca Antech Inc 3,000 108,930 -------------- 1,121,574 INFORMATION & SERVICES 2.0% - ----------------------------------------------------------------- Caterpillar, Inc. 5,000 335,150 Ceridian Corp. (a)* 3,800 132,392 Convergys Corp. * 200 5,082 Corrections Corp. of America (a)* 1,600 84,496 Expedia, Inc. * 3,100 71,858 Iac Interactivecorp (a) 2,700 101,817 ITT Educational Services, Inc. * 1,400 114,086 Jones Lang LaSalle, Inc. 1,200 125,136 Manpower, Inc. 1,800 132,786 Moody's Corp. (a) 1,670 103,640 Paychex, Inc. (a) 2,000 75,740 The Brink's Co. (a) 1,400 88,830 The Dun & Bradstreet Corp. 1,400 127,680 Total System Services, Inc. (a) 2,400 76,440 URS Corp. * 200 8,518 -------------- 1,583,651 INSTRUMENTS 4.7% - ----------------------------------------------------------------- Agilent Technologies, Inc. * 3,000 101,070 AMETEK, Inc. 2,700 93,258 Baxter International, Inc. 10,600 558,302 Beckman Coulter, Inc. 940 60,057 Becton Dickinson & Co. 1,900 146,091 Boston Scientific Corp. * 8,300 120,682 Dade Behring Holdings, Inc. 2,210 96,908 Danaher Corp. 4,600 328,670 Edwards Lifesciences Corp. (a)* 2,000 101,400 Honeywell International, Inc. 7,200 331,632 Medtronic, Inc. 9,300 456,258 Mettler-Toledo International, Inc. * 1,400 125,398 PerkinElmer, Inc. 2,470 59,823 Roper Industries, Inc. 2,200 120,736 St. Jude Medical, Inc. * 2,300 86,503 Stryker Corp. (a) 5,700 378,024 Thermo Electron Corp. * 1,900 88,825 Trimble Navigation Ltd 3,900 104,676 Waters Corp. * 2,200 127,600 Zimmer Holdings, Inc. * 1,700 145,197 -------------- 3,631,110 INSURANCE 2.4% - ----------------------------------------------------------------- ACE Ltd. 600 34,236 AFLAC, Inc. 3,390 159,533 Ambac Finl Group Inc 900 77,751 American International Group, Inc. 7,400 497,428 Arthur J. Gallagher & Co. (a) 300 8,499 CNA Financial Corp. (a)* 1,500 64,635
See financial notes. 36 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
NUMBER OF VALUE SECURITY SHARES ($) Fidelity National Financial, Inc., Class A (a) 314 7,539 Hanover Insurance Group, Inc. (a) 800 36,896 HCC Insurance Holdings, Inc. 2,300 70,840 Markel Corp. * 200 96,966 Philadelphia Consolidated Holding Corp. * 1,800 79,182 Prudential Financial, Inc. (a) 1,460 131,780 Radian Group, Inc. 300 16,464 Transatlantic Holdings, Inc. 200 13,024 Wellcare Health Plans Inc 1,200 102,300 WellPoint, Inc. * 5,500 446,050 -------------- 1,843,123 INTEGRATED OIL COMPANIES 0.6% - ----------------------------------------------------------------- Exxon Mobil Corp. 6,260 472,317 IT HARDWARE 7.4% - ----------------------------------------------------------------- Agere Systems, Inc. (a)* 5,100 115,362 Amphenol Corp New 2,000 129,140 Applied Materials, Inc. 12,100 221,672 Avaya, Inc. (a)* 401 4,736 Avocent Corp. * 15 404 Avx Corp (a) 300 4,560 Broadcom Corp., Class A * 2,900 93,003 Cisco Systems, Inc. * 80,900 2,065,377 Corning, Inc. * 11,400 259,236 Harris Corp. (a) 2,810 143,169 Integrated Device Technology Inc 3,500 53,970 Intel Corp. 46,800 895,284 International Rectifier Corp. (a)* 1,600 61,136 L-3 Communications Holdings, Inc. 800 69,976 LSI Logic Corp. (a)* 9,900 103,356 MEMC Electronic Materials, Inc. * 3,200 193,856 Molex, Inc. (a) 3,800 107,160 Motorola, Inc. 13,940 246,320 Novellus Systems, Inc. * 1,980 63,400 QUALCOMM, Inc. 12,800 546,048 Texas Instruments, Inc. 11,300 340,130 Vishay Intertechnology, Inc. * 400 5,592 -------------- 5,722,887 LAND & WATER TRANSPORTATION 1.6% - ----------------------------------------------------------------- Burlington Northern Santa Fe Corp. 2,810 226,008 Csx Corp 4,500 180,225 J.B. Hunt Transport Services, Inc. 3,613 94,805 Kansas City Southern * 1,140 40,561 Norfolk Southern Corp. 780 39,468 Ryder System, Inc. 670 33,058 Union Pacific Corp 2,700 274,185 United Parcel Service, Inc., Class B 5,100 357,510 -------------- 1,245,820 MAINFRAME & MINICOMPUTERS 1.8% - ----------------------------------------------------------------- Apple Computer, Inc. * 10,400 966,264 Dell, Inc. * 18,200 422,422 -------------- 1,388,686 METAL PRODUCTS & MACHINERY 6.6% - ----------------------------------------------------------------- Agco Corp 200 7,394 Amer Std Cos Inc 3,600 190,872 Crown Holdings, Inc. * 5,100 124,746
NUMBER OF VALUE SECURITY SHARES ($) Cummins, Inc. 1,000 144,720 Dover Corp. 3,600 175,716 Emerson Electric Co. 12,040 518,804 Energizer Holdings, Inc. (a)* 1,260 107,516 Gardner Denver, Inc. * 1,800 62,730 General Electric Co. 43,600 1,541,696 Illinois Tool Works, Inc. 8,900 459,240 Lincoln Electric Holdings, Inc. (a) 1,590 94,700 Manitowoc Co 2,000 127,060 Pall Corp. 800 30,400 Parker Hannifin Corp (a) 1,500 129,465 Procter & Gamble Co. 4,900 309,484 Snap-On, Inc. 200 9,620 Terex Corp. * 1,700 121,992 The Stanley Works (a) 1,900 105,184 Toro Co (a) 1,700 87,108 United Technologies Corp. 11,500 747,500 -------------- 5,095,947 MISCELLANEOUS FINANCE 3.8% - ----------------------------------------------------------------- A.G. Edwards, Inc. 200 13,836 Ameriprise Financial, Inc. 3,600 205,704 Chicago Mercantile Exchange Holdings, Inc. 700 372,722 Eaton Vance Corp. (a) 3,400 121,176 Franklin Resources, Inc. 3,200 386,656 Intercontinentalexchange Inc 1,400 171,094 Investment Technology Gp Inc New 1,500 58,800 Merrill Lynch & Co., Inc. 3,300 269,511 Morgan Stanley 2,600 204,776 Price T Rowe Group 5,200 245,388 Principal Financial Group In 1,300 77,831 SEI Investments Co. 1,900 114,437 The Goldman Sachs Group, Inc. 3,600 743,868 -------------- 2,985,799 OIL & COAL RESOURCES 0.9% - ----------------------------------------------------------------- Apache Corp. 120 8,484 Equitable Resources Inc 2,700 130,464 Plains Exploration & Production Co. (a)* 2,500 112,850 Unit Corp. (a)* 1,800 91,062 XTO Energy, Inc. 7,147 391,727 -------------- 734,587 OIL DISTRIBUTION 0.3% - ----------------------------------------------------------------- Holly Corp 1,700 100,810 Tesoro Petroleum Corp. 1,100 110,473 -------------- 211,283 OIL DRILLING & SERVICES 2.6% - ----------------------------------------------------------------- Baker Hughes, Inc. (a) 2,200 145,486 Cameron Intl Corp 2,400 150,696 Diamond Offshore Drilling, Inc. 1,650 133,568 ENSCO International, Inc. 3,220 175,168 FMC Technologies, Inc. * 1,800 125,568 Global Industries Ltd. * 3,290 60,174 Halliburton Co. 7,000 222,180 Helmerich & Payne, Inc. (a) 3,500 106,190 National-Oilwell Varco, Inc. * 3,500 272,265 Oceaneering International, Inc. (a)* 2,200 92,664 Pride International, Inc. * 3,210 96,621
See financial notes. Laudus Funds Annual Report 37 LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Smith International, Inc. (a) 4,700 225,835 Superior Energy Services, Inc. * 2,830 97,550 TETRA Technologies, Inc. (a)* 2,700 66,717 Tidewater, Inc. (a) 1,300 76,154 -------------- 2,046,836 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 1.8% - ----------------------------------------------------------------- Diebold, Inc. 2,000 95,420 EMC Corp. * 14,300 198,055 Hewlett-Packard Co. 21,700 871,038 NCR Corp. * 1,700 81,209 Network Appliance, Inc. * 2,700 98,604 VeriFone Holdings, Inc. (a)* 1,800 66,114 -------------- 1,410,440 PUBLISHING, BROADCASTING & CINEMA 2.7% - ----------------------------------------------------------------- McGraw-Hill Cos., Inc. 6,500 408,720 News Corp., Class A 25,200 582,624 Omnicom Group, Inc. 3,300 337,854 Time Warner, Inc. 5,940 117,137 Viacom Inc 4,400 180,884 Walt Disney Co. 13,680 471,002 -------------- 2,098,221 REAL ESTATE INVESTMENT TRUSTS 0.2% - ----------------------------------------------------------------- Simon Property Group, Inc. 900 100,125 Weingarten Realty 760 36,146 -------------- 136,271 RESTAURANTS, HOTELS & THEATERS 1.8% - ----------------------------------------------------------------- Brinker International Inc 3,600 117,720 Burger King Holdings, Inc. (a) 280 6,048 CBRL Group, Inc. (a) 800 37,040 Hilton Hotels Corp. 7,900 284,084 Las Vegas Sands Corp. (a)* 3,000 259,830 MGM MIRAGE * 2,600 180,752 Starbucks Corp. * 6,000 188,160 YUM! Brands, Inc. 5,300 306,128 -------------- 1,379,762 RETAIL 9.1% - ----------------------------------------------------------------- Abercrombie & Fitch Co., Class A 1,800 136,224 American Eagle Outfitters Inc Ne 4,000 119,960 Autozone Inc 1,100 140,954 Best Buy Co., Inc. 2,700 131,544 CarMax, Inc. (a)* 4,400 107,976 Costco Wholesale Corp. (a) 2,400 129,216 CVS Corp. 22,300 761,322 Dick's Sporting Goods, Inc. * 1,390 80,981 Dollar Tree Stores Inc (a) 170 6,501 eBay, Inc. * 8,000 265,200 Federated Department Stores, Inc. 1,900 85,595 GameStop Corp., Class A * 3,400 110,738 Home Depot, Inc. 15,000 551,100 J.C. Penney Co., Inc. 4,500 369,720 Kohl's Corp. * 6,200 474,982 Kroger Co 3,200 90,400
NUMBER OF VALUE SECURITY SHARES ($) Limited Brands Inc 1,310 34,139 Lowe's Cos., Inc. 12,200 384,178 Medco Health Solutions, Inc. * 3,900 282,867 Nordstrom, Inc. 4,700 248,818 RadioShack Corp. (a) 3,457 93,443 Staples, Inc. 5,400 139,536 Target Corp. 12,100 717,046 The Men's Wearhouse, Inc. 1,400 65,870 The TJX Cos., Inc. 8,900 239,944 Wal-Mart Stores, Inc. 20,200 948,390 Walgreen Co. 7,300 334,997 -------------- 7,051,641 SOAPS & COSMETICS 3.4% - ----------------------------------------------------------------- Avon Products, Inc. 8,800 327,888 Church & Dwight Inc (a) 2,100 105,735 Colgate-Palmolive Co. 8,100 540,999 Ecolab, Inc. 3,900 167,700 Johnson & Johnson 22,100 1,331,746 Lauder Estee Cos Inc (a) 2,900 141,665 -------------- 2,615,733 SOFTWARE 8.8% - ----------------------------------------------------------------- Adobe Systems, Inc. * 3,900 162,630 Akamai Technologies, Inc. * 3,000 149,760 Automatic Data Processing, Inc. 3,700 179,080 BMC Software, Inc. * 4,600 141,634 Cadence Design Systems, Inc. * 6,300 132,678 Cognizant Technology Solutions Corp., Class A * 3,000 264,810 DST Systems, Inc. * 1,700 127,840 Electronic Arts, Inc. * 2,300 115,828 Emdeon Corp (a) 7,500 113,475 FactSet Research Systems, Inc. (a) 1,500 94,275 Fair Isaac Corp. (a) 1,500 58,020 First Data Corp. 5,690 153,061 International Business Machines Corp. 18,200 1,715,532 Intuit, Inc. (a)* 7,600 207,936 McAfee, Inc. (a)* 4,100 119,228 Microsoft Corp. 78,200 2,179,434 Oracle Corp. * 50,610 917,559 Synopsys, Inc. (a)* 150 3,935 -------------- 6,836,715 TEXTILES & APPAREL 1.1% - ----------------------------------------------------------------- Coach, Inc. * 7,670 383,884 NIKE, Inc., Class B 3,600 382,536 Polo Ralph Lauren Corp. (a) 1,400 123,410 -------------- 889,830 WHOLESALE 1.1% - ----------------------------------------------------------------- Airgas, Inc. 2,200 92,730 Arrow Electronics, Inc. * 700 26,425 Avnet, Inc. (a)* 2,140 77,339 Cardinal Health, Inc. 2,900 211,555 Copart, Inc. * 2,474 69,297
See financial notes. 38 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND
NUMBER OF VALUE SECURITY SHARES ($) Sysco Corp. (a) 7,900 267,257 W.W. Grainger, Inc. 1,500 115,860 -------------- 860,463 -------------- TOTAL COMMON STOCK (COST $69,070,731) 77,114,283 -------------- - ----------------------------------------------------------------- END OF INVESTMENTS. At 3/31/07 the tax basis cost of the fund's investments was $69,485,820 and the unrealized appreciation and depreciation was $8,466,803 and ($838,340), respectively, with a net unrealized appreciation of $7,628,463.
NUMBER OF VALUE SECURITY SHARES ($) COLLATERAL INVESTED FOR SECURITIES ON LOAN 8.0% OF NET ASSETS State Street Navigator Security Lending Prime Portfolio 6,243,025 6,243,025 - ----------------------------------------------------------------- END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
* Non-income producing security. (a) All or a portion of this security is on loan. See financial notes. Laudus Funds Annual Report 39 LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 99.7% COMMON STOCK 5,574,417 6,576,131 - ----------------------------------------------------------------- 99.7% TOTAL INVESTMENTS 5,574,417 6,576,131 0.3% OTHER ASSETS AND LIABILITIES 22,618 - ----------------------------------------------------------------- 100.0% NET ASSETS 6,598,749
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 99.7% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 1.2% - ----------------------------------------------------------------- General Mills, Inc. 1,090 63,460 The Pepsi Bottling Group, Inc. 500 15,945 ------------- 79,405 AIRLINES 0.2% - ----------------------------------------------------------------- AMR Corp. * 400 12,180 AUTOS 0.6% - ----------------------------------------------------------------- PACCAR, Inc. 500 36,700 BANKS & CREDIT INSTITUTIONS 10.0% - ----------------------------------------------------------------- Bank of America Corp. 5,800 295,916 Comerica, Inc. 650 38,428 Deere & Co. 900 97,776 The Bank of New York Co., Inc. 2,400 97,320 Wachovia Corp. 1,200 66,060 Wells Fargo & Co. 1,900 65,417 ------------- 660,917 BASIC MINERALS & METALS 1.9% - ----------------------------------------------------------------- Freeport-McMoran Copper & Gold, Inc., Class B 400 26,476 Reliance Steel & Aluminum Co. 300 14,520 Steel Dynamics, Inc. 600 25,920 United States Steel Corp. 600 59,502 ------------- 126,418 BEER, LIQUOR, & TOBACCO 1.7% - ----------------------------------------------------------------- Altria Group, Inc. 900 79,029 Loews Corp.-Carolina Group 400 30,244 ------------- 109,273 CHEMICALS & RUBBER 2.6% - ----------------------------------------------------------------- Celanese Corp., Series A 280 8,635 FMC Corp. 216 16,293 Lyondell Chemical Co. 1,000 29,970 The Dow Chemical Co. 2,600 119,236 ------------- 174,134 COMMUNICATIONS UTILITIES 8.8% - ----------------------------------------------------------------- AT&T Corp. 7,600 299,668 CenturyTel, Inc. 390 17,624 Comcast Corp., Class A * 1,075 27,896 Embarq Corp. 700 39,445 Verizon Communications, Inc. 5,100 193,392 ------------- 578,025 CONSTRUCTION MATERIALS 0.3% - ----------------------------------------------------------------- The Mosaic Co. * 800 21,328
NUMBER OF VALUE SECURITY SHARES ($) DRUGS & PHARMACEUTICALS 4.4% - ----------------------------------------------------------------- King Pharmaceuticals, Inc. * 1,100 21,637 Pfizer, Inc. 10,600 267,756 ------------- 289,393 ELECTRIC UTILITIES 7.2% - ----------------------------------------------------------------- Alliant Energy Corp. 600 26,892 American Electric Power Co., Inc. 1,500 73,125 Edison International 1,100 54,043 Entergy Corp. 800 83,936 FPL Group, Inc. 1,400 85,638 Northeast Utilities 450 14,746 Pepco Holdings, Inc. 190 5,514 PG&E Corp. 1,300 62,751 Pinnacle West Capital Corp. 500 24,125 Xcel Energy, Inc. 1,700 41,973 ------------- 472,743 FINANCIAL INVESTMENTS 1.0% - ----------------------------------------------------------------- CIT Group, Inc. 900 47,628 Rent-A-Center, Inc. * 200 5,596 United Rentals, Inc. * 400 11,000 ------------- 64,224 FOREST PRODUCTS & PAPER 0.9% - ----------------------------------------------------------------- International Paper Co. 1,690 61,516 FURNITURE & HOUSEHOLD ITEMS 1.0% - ----------------------------------------------------------------- Hasbro, Inc. 760 21,751 Mattel, Inc. 1,600 44,112 ------------- 65,863 GAS & OTHER PUBLIC UTILITIES 0.4% - ----------------------------------------------------------------- Allied Waste Industries, Inc. * 1,100 13,849 Atmos Energy Corp. 400 12,512 ------------- 26,361 HEALTH CARE & HOSPITAL 0.3% - ----------------------------------------------------------------- Health Net, Inc. * 300 16,143 LifePoint Hospitals, Inc. * 100 3,822 ------------- 19,965 INFORMATION & SERVICES 1.3% - ----------------------------------------------------------------- Convergys Corp. * 700 17,787 Deluxe Corp. 300 10,059 Expedia, Inc. * 600 13,908 IAC/InterActive Corp. * 520 19,609 Manpower, Inc. 300 22,131 ------------- 83,494 INSTRUMENTS 0.3% - ----------------------------------------------------------------- Honeywell International, Inc. 400 18,424 INSURANCE 9.5% - ----------------------------------------------------------------- Alleghany Corp. * 133 49,539 American International Group, Inc. 1,300 87,386 CNA Financial Corp. * 300 12,927 Genworth Financial, Inc., Class A 1,750 61,145 Loews Corp. 1,800 81,774
See financial notes. 40 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND
NUMBER OF VALUE SECURITY SHARES ($) Radian Group, Inc. 320 17,562 The Allstate Corp. 1,900 114,114 The Hartford Financial Services Group, Inc. 1,000 95,580 The Travelers Cos., Inc. 2,100 108,717 ------------- 628,744 INTEGRATED OIL COMPANIES 11.5% - ----------------------------------------------------------------- Chevron Corp. 1,500 110,940 ConocoPhillips 3,000 205,050 Exxon Mobil Corp. 3,600 271,620 Hess Corp. 1,000 55,470 Marathon Oil Corp. 1,200 118,596 ------------- 761,676 IT HARDWARE 0.4% - ----------------------------------------------------------------- Atmel Corp. * 808 4,064 Novellus Systems, Inc. * 380 12,168 Vishay Intertechnology, Inc. * 700 9,786 ------------- 26,018 LAND & WATER TRANSPORTATION 1.3% - ----------------------------------------------------------------- CSX Corp. 800 32,040 Overseas Shipholding Group, Inc. 200 12,520 Ryder System, Inc. 300 14,802 SEACOR Holdings, Inc. * 120 11,808 YRC Worldwide, Inc. * 300 12,066 ------------- 83,236 MAINFRAME & MINICOMPUTERS 0.2% - ----------------------------------------------------------------- Sun Microsystems * 2,700 16,227 METAL PRODUCTS & MACHINERY 5.0% - ----------------------------------------------------------------- AGCO Corp. * 500 18,485 Cummins, Inc. 188 27,207 General Electric Co. 3,600 127,296 Procter & Gamble Co. 1,700 107,372 SPX Corp. 270 18,954 Terex Corp. * 400 28,704 ------------- 328,018 MISCELLANEOUS FINANCE 10.1% - ----------------------------------------------------------------- A.G. Edwards, Inc. 60 4,151 Citigroup, Inc. 4,100 210,494 JPMorgan Chase & Co. 3,200 154,816 Merrill Lynch & Co., Inc. 1,600 130,672 Morgan Stanley 1,300 102,388 The Goldman Sachs Group, Inc. 300 61,989 ------------- 664,510 OIL & COAL RESOURCES 1.3% - ----------------------------------------------------------------- Apache Corp. 1,200 84,840 OIL DISTRIBUTION 0.5% - ----------------------------------------------------------------- Tesoro Corp. 330 33,142 OIL DRILLING & SERVICES 0.5% - ----------------------------------------------------------------- Pride International, Inc. * 300 9,030 Rowan Cos., Inc. 300 9,741 Tidewater, Inc. 300 17,574 ------------- 36,345
NUMBER OF VALUE SECURITY SHARES ($) PUBLISHING, BROADCASTING & CINEMA 3.9% - ----------------------------------------------------------------- CBS Corp., Class B 2,500 76,475 Gannett Co., Inc. 1,000 56,290 Time Warner, Inc. 6,200 122,264 ------------- 255,029 REAL ESTATE DEVELOPMENT 0.3% - ----------------------------------------------------------------- Service Corp. International 1,400 16,604 REAL ESTATE INVESTMENT TRUSTS 0.8% - ----------------------------------------------------------------- Colonial Properties Trust 300 13,701 HRPT Properties Trust 1,000 12,300 iStar Financial, Inc. 600 28,098 ------------- 54,099 RESTAURANTS, HOTELS & THEATERS 2.1% - ----------------------------------------------------------------- CBRL Group, Inc. 104 4,815 McDonald's Corp. 3,000 135,150 ------------- 139,965 RETAIL 4.5% - ----------------------------------------------------------------- Dillard's, Inc., Class A 300 9,819 J.C. Penney Co., Inc. 800 65,728 OfficeMax, Inc. 350 18,459 RadioShack Corp. 210 5,677 Safeway, Inc. 1,700 62,288 Saks, Inc. 100 2,084 Sears Holdings Corp. * 400 72,064 The Kroger Co. 2,161 61,048 ------------- 297,167 SOFTWARE 2.9% - ----------------------------------------------------------------- Cadence Design Systems, Inc. * 500 10,530 Computer Sciences Corp. * 690 35,970 Electronic Data Systems Corp. 1,500 41,520 First American Corp. 400 20,288 International Business Machines Corp. 600 56,556 Sybase, Inc. * 500 12,640 Synopsys, Inc. * 610 16,000 ------------- 193,504 TEXTILES & APPAREL 0.3% - ----------------------------------------------------------------- Liz Claiborne, Inc. 500 21,425 WHOLESALE 0.5% - ----------------------------------------------------------------- Arrow Electronics, Inc. * 550 20,763 Avnet, Inc. * 400 14,456 ------------- 35,219 -------------- TOTAL COMMON STOCK (COST $5,574,417) 6,576,131 -------------- - ----------------------------------------------------------------- END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was $5,591,895, and the unrealized appreciation and depreciation were $1,008,226 and ($23,990), respectively, with a net unrealized appreciation of $984,236. * Non-income producing security. See financial notes. Laudus Funds Annual Report 41 LAUDUS ROSENBERG U.S. DISCOVERY FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 99.3% COMMON STOCK 761,034,449 928,439,355 0.8% SHORT-TERM INVESTMENT 7,521,000 7,521,000 - ----------------------------------------------------------------- 100.1% TOTAL INVESTMENTS 768,555,449 935,960,355 7.8% COLLATERAL INVESTED FOR SECURITIES ON LOAN 72,805,635 72,805,635 (7.9)% OTHER ASSETS AND LIABILITIES (73,536,081) - ----------------------------------------------------------------- 100.0% NET ASSETS 935,229,909
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 99.3% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 1.7% - ----------------------------------------------------------------- Corn Products International, Inc. 118,749 4,226,277 Flowers Foods, Inc. (a) 122,995 3,710,759 Imperial Sugar Co. (a) 4,730 158,597 J & J Snack Foods Corp. 10,871 429,296 Lancaster Colony Corp. 14,462 639,076 Lance, Inc. (a) 26,304 532,393 Omega Protein Corp. * 7,400 51,652 Penford Corp. 12,479 251,327 Ralcorp Holdings, Inc. (a)* 26,810 1,723,883 Seaboard Corp. 1,200 2,712,000 Seneca Foods Corp., Class B * 1,000 28,060 Tasty Baking Co. 22,514 196,547 The Hain Celestial Group, Inc. (a)* 39,507 1,187,976 The Topps Co., Inc. 720 6,998 --------------- 15,854,841 AIRLINES 1.2% - ----------------------------------------------------------------- ABX Air, Inc. 4,149 28,421 AirNet Systems, Inc. * 11,970 38,424 Alaska Air Group, Inc. (a)* 113,932 4,340,809 Pinnacle Airlines Corp. (a)* 12,726 220,032 Republic Airways Holdings, Inc. * 58,174 1,335,675 SkyWest, Inc. (a) 194,541 5,219,535 --------------- 11,182,896 AUTOS 1.0% - ----------------------------------------------------------------- Aftermarket Technology Corp. * 21,412 519,883 Autoliv, Inc. (a) 143,282 8,182,835 Spartan Motors, Inc. (a) 25,401 589,557 Supreme Industries, Inc., Class A 18,670 109,220 --------------- 9,401,495 BANKS & CREDIT INSTITUTIONS 2.4% - ----------------------------------------------------------------- 1st Independence Financial Group, Inc. 98 1,657 Advanta Corp., Class A 9,700 388,776 Advanta Corp., Class B 31,231 1,369,167 American National Bankshares, Inc. 100 2,289 Ameris Bancorp (a) 6,732 164,799 BancFirst Corp. (a) 4,300 199,305 Banco Latinoamericano de Exportaciones, S.A., Class E 6,120 101,837 Banner Corp. (a) 2,998 124,567 Bar Harbor Bankshares 717 23,231 Berkshire Hills Bancorp, Inc. 1,170 39,370
NUMBER OF VALUE SECURITY SHARES ($) Beverly Hills Bancorp, Inc. 42,948 326,405 BNCCorp, Inc. * 1,910 31,420 BOE Financial Services of Virginia, Inc. 100 3,126 Britton & Koontz Capital Corp. 526 9,994 Camco Financial Corp. 100 1,284 Capital Bank Corp. 703 12,127 Carolina Bank Holdings, Inc. * 300 4,800 Carver Bancorp, Inc. 1,400 23,450 Central Bancorp, Inc. 1,000 30,450 Centrue Financial Corp. 4,068 78,797 CFS Bancorp, Inc. (a) 5,162 77,378 Citizens Holdings Co. 700 15,288 Citizens South Banking Corp. 650 8,119 Codorus Valley Bancorp, Inc. 210 3,996 Community Bank Shares of Indiana, Inc. 4,277 92,918 Community Capital Corp. 3,009 60,767 Community Financial Corp. 1,720 20,881 Community Shores Bank Corp. * 1,430 17,689 Community West Bancshares 4,594 72,677 CompuCredit Corp. (a)* 4,730 147,671 Consumer Portfolio Services, Inc. * 3,517 21,630 Cowlitz Bancorp * 1,500 25,500 Delta Financial Corp. (a) 11,568 95,667 Desert Community Bank 1,200 22,800 Dollar Financial Corp. (a)* 49,579 1,254,349 Elmira Savings Bank, FSB 529 14,008 Evans Bancorp, Inc. (a) 940 18,330 Exchange National Bancshares, Inc. 8,042 291,120 Federal Agricultural Mortgage Corp., Class C (a) 27,230 740,656 Fidelity Southern Corp. 2,725 51,884 First Bancorp of Indiana, Inc. 1,455 25,608 First Bancshares, Inc. 960 16,200 First BancTrust Corp. 5,645 66,780 First Capital, Inc. 990 17,800 First Citizens BancShares, Inc., Class A 2,580 518,580 First Defiance Financial Corp. 4,070 116,809 First Federal Bancshares of Arkansas, Inc. 7,300 172,572 First Federal Bankshares, Inc. 2,400 51,480 First Financial Service Corp. 400 11,476 First Franklin Corp. 3,251 56,892 First M&F Corp. 6,200 114,080 First PacTrust Bancorp, Inc. 190 4,903 First Place Financial Corp. 34,952 749,720 First Regional Bancorp (a)* 20,515 609,295 First United Corp. 4,965 111,712 First West Virginia Bancorp, Inc. 3,300 66,825 FNB Corp. of North Carolina 5,628 94,269 FNB Corp. of Virginia (a) 5,596 200,505 FNB Financial Services Corp. 725 11,114 Franklin Bank Corp. (a)* 47,190 843,285 GB&T Bancshares, Inc. 1,420 25,745 Glen Burnie Bancorp 480 8,556 GS Financial Corp. 1,310 26,888 Guaranty Federal Bancshares, Inc. 2,370 69,441 Habersham Bancorp, Inc. 7,400 169,830
See financial notes. 42 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) HF Financial Corp. 5,526 100,849 HMN Financial, Inc. 2,097 70,962 Home Federal Bancorp 1,618 47,278 Hopfed Bancorp, Inc. 675 10,776 Horizon Bancorp 3,511 94,481 Intervest Bancshares Corp. * 10,144 291,133 Irwin Financial Corp. 1,770 32,993 ITLA Capital Corp. 11,140 579,503 Lakeland Financial Corp. (a) 1,065 24,176 Leesport Financial Corp. 4,446 96,123 LSB Bancshares, Inc. (a) 17,500 256,375 LSB Financial Corp. 4,725 124,929 MASSBANK Corp. 10,420 341,776 Meta Financial Group, Inc. 140 4,410 MFB Corp. 2,000 67,200 MidWestOne Financial Group, Inc. 10,600 185,182 Monroe Bancorp 113 1,957 MutualFirst Financial, Inc. 164 3,228 New Hampshire Thrift Bancshares, Inc. 1,200 18,756 Northeast Bancorp 1,200 22,380 Northrim BanCorp, Inc. 1,816 53,663 Northway Financial, Inc. 1,400 45,703 OceanFirst Financial Corp. (a) 8,943 155,161 PAB Bankshares, Inc. 2,510 44,578 Pacific Premier Bancorp, Inc. * 147 1,588 Park Bancorp, Inc. 905 30,883 Parkvale Financial Corp. 9,402 274,632 Peoples Bancorp of North Carolina 10,242 274,486 Peoples Bancorp, Inc. 500 9,793 Peoples BancTrust Co., Inc. 932 17,736 Peoples Community Bancorp, Inc. 1,155 19,612 Pinnacle Bancshares, Inc. 1,600 24,168 Premier Financial Bancorp, Inc. 200 3,254 Provident Financial Holdings, Inc. 12,970 356,934 Republic First Bancorp, Inc. * 19,331 248,983 Royal Bancshares of Pennsylvania, Class A (a) 734 17,433 Shore Bancshares, Inc. (a) 10,911 288,596 Simmons First National Corp., Class A (a) 8,190 246,273 South Street Financial Corp. 133 1,137 Southern Missouri Bancorp, Inc. 100 1,545 Southwest Bancorp, Inc. 17,960 461,392 Sterling Financial Corp. Pennsylvania 10,381 230,458 Team Financial, Inc. 1,050 15,908 Teche Holding Co. 1,000 44,200 TF Financial Corp. 2,600 79,300 the First Marblehead Corp. (a) 123,946 5,563,936 The Washington Savings Bank, F.S.B 9,870 83,895 Timberland Bancorp, Inc. 1,076 37,929 United Bancshares, Inc. 1,140 18,434 United Community Financial Corp. (a) 28,767 317,875 United Security Bancshares, Inc. (a) 972 28,606 Unity Bancorp, Inc. 6,347 75,275 Wainwright Bank & Trust Co. 2,683 34,289
NUMBER OF VALUE SECURITY SHARES ($) Willow Financial Bancorp, Inc. (a) 1,449 18,692 WSFS Financial Corp. 10,177 656,213 WVS Financial Corp. (a) 1,900 32,680 --------------- 22,340,251 BASIC MINERALS & METALS 4.2% - ----------------------------------------------------------------- Allegheny Technologies, Inc. 36,410 3,884,583 Brush Engineered Materials, Inc. (a)* 1,680 81,430 Carpenter Technology Corp. 66,000 7,970,160 Chaparral Steel Co. 72,133 4,195,977 Cleveland-Cliffs, Inc. (a) 510 32,645 Commercial Metals Co. (a) 44,855 1,406,204 CommScope, Inc. (a)* 1,250 53,625 Friedman Industries, Inc. 12,690 117,255 General Cable Corp. (a)* 53,069 2,835,477 Harsco Corp. 71,092 3,189,187 Northwest Pipe Co. * 21,700 864,311 OM Group, Inc. * 54,500 2,435,060 Reliance Steel & Aluminum Co. (a) 105,580 5,110,072 Southern Copper Corp. (a) 1,000 71,660 Steel Dynamics, Inc. (a) 53,716 2,320,531 Superior Essex, Inc. (a)* 43,445 1,506,238 Titanium Metals Corp. * 81,349 2,918,802 --------------- 38,993,217 BEER, LIQUOR, & TOBACCO 0.1% - ----------------------------------------------------------------- Alliance One International, Inc. (a)* 99,240 915,985 MGP Ingredients, Inc. (a) 16,606 338,264 --------------- 1,254,249 BIOTECHNOLOGY 0.1% - ----------------------------------------------------------------- Digene Corp. (a)* 16,518 700,528 Harvard Bioscience, Inc. * 5,680 27,378 --------------- 727,906 CELLULAR & WIRELESS 0.7% - ----------------------------------------------------------------- NII Holdings, Inc. (a)* 88,200 6,542,676 USA Mobility, Inc. (a)* 2,830 56,402 --------------- 6,599,078 CHEMICALS & RUBBER 3.2% - ----------------------------------------------------------------- A. Schulman, Inc. 24,933 587,421 Arch Chemicals, Inc. 52,590 1,641,860 Bairnco Corp. 7,950 106,928 Celanese Corp., Series A 28,130 867,529 CF Industries Holdings, Inc. 130,946 5,047,968 FMC Corp. 127,152 9,591,075 Hercules, Inc. * 113,530 2,218,376 Innospec, Inc. 18,998 1,095,045 Landec Corp. (a)* 52,550 745,159 LSB Industries, Inc. (a)* 39,420 613,769 Nalco Holding Co. (a) 15,000 358,500 NewMarket Corp. 43,630 1,774,432 Pioneer Cos., Inc. * 3,529 97,542 PolyOne Corp. (a)* 62,548 381,543 Stepan Co. (a) 20,720 543,900 Terra Industries, Inc. (a)* 153,988 2,694,790
See financial notes. Laudus Funds Annual Report 43 LAUDUS ROSENBERG U.S. DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) The Scotts Miracle-Gro Co., Class A (a) 20,120 885,884 Tronox, Inc., Class A (a) 13,170 189,648 --------------- 29,441,369 COMMERCIAL AIRCRAFT & COMPONENTS 0.4% - ----------------------------------------------------------------- Ducommun, Inc. * 2,230 57,378 Sequa Corp., Class A (a)* 11,240 1,346,215 Triumph Group, Inc. (a) 35,450 1,961,803 --------------- 3,365,396 COMMUNICATIONS UTILITIES 1.8% - ----------------------------------------------------------------- Alaska Communication Systems Group, Inc. (a) 7,770 114,607 Atlantic Tele-Network, Inc. 4,505 117,716 CenturyTel, Inc. 73,218 3,308,721 CT Communications, Inc. (a) 56,678 1,365,940 D&E Communications, Inc. 38,728 515,857 General Communication, Inc., Class A (a)* 145,010 2,030,140 Gilat Satellite Networks Ltd. * 93,665 772,736 Golden Telecom, Inc. (a) 16,900 935,922 Harris Stratex Networks, Inc., Class A (a)* 509 9,768 HickoryTech Corp. 3,704 25,669 Level 3 Communications, Inc. (a)* 677,055 4,130,035 Mediacom Communications Corp., Class A * 173,991 1,416,287 PAETEC Holding Corp. (a)* 2,882 30,203 Premiere Global Services, Inc. * 3,980 44,656 United Online, Inc. (a) 126,665 1,777,110 --------------- 16,595,367 CONSTRUCTION & HOMEBUILDING 1.3% - ----------------------------------------------------------------- Comfort Systems USA, Inc. 118,521 1,419,882 EMCOR Group, Inc. (a) 82,200 4,848,156 Granite Construction, Inc. (a) 34,230 1,891,550 Horizon Offshore, Inc. * 1,348 19,492 Infrasource Services, Inc. * 13,410 409,407 Insituform Technologies, Inc., Class A (a)* 46,353 963,679 Meadow Valley Corp. * 10,385 134,590 Perini Corp. 68,490 2,524,541 Skyline Corp. 7,960 268,570 U.S. Home Systems, Inc. * 3,095 39,461 --------------- 12,519,328 CONSTRUCTION MATERIALS 1.1% - ----------------------------------------------------------------- Ameron International Corp. 4,430 291,760 Martin Marietta Materials, Inc. 1,070 144,664 MDU Resources Group, Inc. 337,697 9,705,412 Oil-Dri Corp. of America 10,000 167,000 Patrick Industries, Inc. * 14,395 172,596 Rock of Ages Corp. * 1,430 7,036 Texas Industries, Inc. (a) 80 6,042 United States Lime & Minerals, Inc. * 4,400 135,344 --------------- 10,629,854 CONSUMER DURABLES 0.1% - ----------------------------------------------------------------- Universal Electronics, Inc. * 44,109 1,228,877
NUMBER OF VALUE SECURITY SHARES ($) DRUGS & PHARMACEUTICALS 1.9% - ----------------------------------------------------------------- Geopharma, Inc. * 3,710 16,324 King Pharmaceuticals, Inc. (a)* 331,715 6,524,834 Natural Alternative International, Inc. * 16,211 130,012 NBTY, Inc. (a)* 154,015 8,168,955 Nutraceutical International Corp. * 500 8,250 Perrigo Co. (a) 102,609 1,812,075 Schiff Nutrition International, Inc. * 16,960 116,515 Sciele Pharma, Inc. (a) 32,054 759,039 Theragenics Corp. * 1,930 12,082 --------------- 17,548,086 ELECTRIC UTILITIES 4.6% - ----------------------------------------------------------------- Alliant Energy Corp. (a) 210,823 9,449,087 Central Vermont Public Service Corp. 2,820 81,272 CH Energy Group, Inc. (a) 5,376 261,758 Cleco Corp. 121,670 3,142,736 Northeast Utilities (a) 307,247 10,068,484 OGE Energy Corp. 101,090 3,922,292 Pepco Holdings, Inc. 232,550 6,748,601 Pinnacle West Capital Corp. 3,436 165,787 Portland General Electric Co. (a) 5,860 171,112 Puget Energy, Inc. 26,570 682,318 Unisource Energy Corp. 46,280 1,737,814 Unitil Corp. 2,580 70,099 Westar Energy, Inc. (a) 239,343 6,586,719 --------------- 43,088,079 FINANCIAL INVESTMENTS 0.6% - ----------------------------------------------------------------- Aaron Rents, Inc. (a) 13,580 359,055 Ampal-American Israel Corp., Class A * 3,260 14,311 California First National Bancorp 2,138 28,115 Compass Diversified Trust (a) 1,203 20,174 ePlus, Inc. * 17,060 181,689 Jackson Hewitt Tax Service, Inc. 38,728 1,246,267 KMG America Corp. * 2,690 12,455 Marvel Entertainment, Inc. (a)* 1,100 30,525 MVC Capital, Inc. * 340 5,321 PICO Holdings, Inc. (a)* 17,159 732,861 Rent-A-Center, Inc. * 21,081 589,846 SRS Labs, Inc. * 9,758 135,929 Trinity Industries, Inc. (a) 45,542 1,909,121 UTEK Corp. (a) 18,150 239,580 Willis Lease Finance Corp. (a)* 21,670 223,418 --------------- 5,728,667 FOREST PRODUCTS & PAPER 0.1% - ----------------------------------------------------------------- CSS Industries, Inc. 4,100 153,668 Lydall, Inc. * 41,980 667,062 Nashua Corp. * 5,700 50,730 Packaging Corp. of America 5,450 132,980 Rock-Tenn Co., Class A 340 11,288 --------------- 1,015,728 FURNITURE & HOUSEHOLD ITEMS 2.6% - ----------------------------------------------------------------- A.T. Cross Co., Class A * 3,803 33,466 Acuity Brands, Inc. 56,600 3,081,304 AEP Industries, Inc. * 19,703 847,229
See financial notes. 44 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) AZZ, Inc. * 6,530 274,260 Bassett Furniture Industries, Inc. 16,230 238,906 Chase Corp. 1,300 42,263 Communications Systems, Inc. 10,040 104,215 Constar International, Inc. (a)* 31,440 278,244 Ethan Allen Interiors, Inc. (a) 111,939 3,955,924 Flexsteel Industries, Inc. 100 1,534 GameTech International, Inc. * 31,230 381,631 Genlyte Group, Inc. * 1,894 133,622 Griffon Corp. (a)* 93,640 2,317,590 Hasbro, Inc. 620 17,744 Herman Miller, Inc. 76,755 2,570,525 Hillenbrand Industries, Inc. (a) 4,600 273,102 Hooker Furniture Corp. 160 3,208 JAKKS Pacific, Inc. (a)* 71,809 1,716,235 K2, Inc. * 11,580 140,002 La-z-boy, Inc. (a) 102,239 1,265,719 Mity Enterprises, Inc. * 610 11,651 Movado Group, Inc. (a) 61,330 1,806,169 National Presto Industries, Inc. (a) 13,510 832,756 Preformed Line Products Co. (a) 4,200 155,358 RC2 Corp. * 10,300 416,017 Spartech Corp. 10,040 294,574 Steelcase Inc., Class A 96,773 1,924,815 Thomas & Betts Corp. * 16,592 810,021 Tredegar Corp. 800 18,232 UFP Technologies, Inc. * 2,270 10,624 Virco Manufacturing Corp. * 920 6,210 West Pharmaceutical Services, Inc. (a) 3,740 173,648 --------------- 24,136,798 GAS & OTHER PUBLIC UTILITIES 1.1% - ----------------------------------------------------------------- American States Water Co. (a) 9,740 359,114 Artesian Resources Corp., Class A 5,942 122,405 California Water Service Group 14,674 562,308 Clean Harbors, Inc. (a)* 7,403 334,764 Delta Natural Gas Co., Inc. 6,223 155,575 Energy West, Inc. 210 2,992 Florida Public Utilities Co. 8,640 107,136 Industrial Services of America, Inc. (a)* 900 5,985 Nicor, Inc. (a) 108,740 5,265,191 RGC Resources, Inc. 3,037 86,099 SJW Corp. (a) 28,840 1,167,443 Southern Union Co. 9,513 289,100 The Laclede Group, Inc. (a) 21,350 663,558 Waste Industries USA, Inc. (a) 24,567 674,855 WGL Holdings, Inc. (a) 18,750 599,625 --------------- 10,396,150 GOVERNMENT AIRCRAFT & DEFENSE 0.7% - ----------------------------------------------------------------- Armor Holdings, Inc. (a)* 90,824 6,115,180 HEALTH CARE & HOSPITAL 1.7% - ----------------------------------------------------------------- Almost Family, Inc. * 12,800 318,720 Amedisys, Inc. (a)* 30,540 990,412 American Shared Hospital Services 13,430 79,237 AMERIGROUP Corp. * 3,970 120,688 Gentiva Health Services, Inc. * 32,300 651,491 Hanger Orthopedic Group, Inc. * 6,240 72,821
NUMBER OF VALUE SECURITY SHARES ($) IntegraMed America, Inc. * 7,255 108,462 Kindred Healthcare, Inc. (a)* 26,460 867,359 Manor Care, Inc. (a) 164,193 8,925,531 MedCath Corp. * 26,177 714,632 MEDTOX Scientific, Inc. * 17,670 325,128 National Dentex Corp. * 5,840 82,227 National Healthcare Corp. (a) 19,244 981,059 NovaMed, Inc. * 33,749 218,694 Res-Care, Inc. * 67,585 1,182,738 --------------- 15,639,199 INFORMATION & SERVICES 5.6% - ----------------------------------------------------------------- Ablest, Inc. * 1,510 11,151 ABM Industries, Inc. (a) 720 19,001 Bioanalytical Systems, Inc. * 410 2,759 Carriage Services, Inc. (a)* 8,870 71,758 Cass Information Systems, Inc. (a) 112 3,781 CDI Corp. (a) 38,539 1,114,548 Ceridian Corp. * 7,450 259,558 Convergys Corp. * 92,740 2,356,523 Corrections Corp. of America (a)* 144,667 7,639,864 CPI Corp. 20,200 1,060,702 Ecology & Environment, Inc. 4,050 48,114 Exponent, Inc. * 49,520 987,924 Forrester Research, Inc. * 40,484 1,148,126 Gartner, Inc. (a)* 18,350 439,483 ICT Group, Inc. (a)* 21,617 378,298 Jones Lang LaSalle, Inc. (a) 6,467 674,379 Kelly Services, Inc., Class A (a) 69,460 2,236,612 Layne Christensen Co. (a)* 27,595 1,005,010 Metal Management, Inc. 86,840 4,012,008 Monro Muffler Brake, Inc. 26,447 928,290 MPS Group, Inc. * 191,574 2,710,772 National Technical Systems, Inc. * 12,880 78,182 Nobel Learning Communities, Inc. * 16,300 246,782 PAREXEL International Corp. (a)* 82,787 2,977,848 PDI, Inc. * 10,824 103,045 RCM Technologies, Inc. * 10,095 71,977 Schnitzer Steel Industries, Inc., Class A 63,781 2,562,083 Security National Financial Corp., Class A * 1,515 7,196 Spherion Corp. * 157,600 1,390,032 SRI/Surgical Express, Inc. * 8,659 43,641 Stewart Enterprises, Inc., Class A (a) 327,992 2,643,616 TeleTech Holdings, Inc. (a)* 108,755 3,990,221 The Dun & Bradstreet Corp. 55,770 5,086,224 URS Corp. * 115,565 4,921,913 Viad Corp. 14,850 573,210 Volt Information Sciences, Inc. (a)* 37,339 977,908 Westaff, Inc. (a)* 1,580 9,038 --------------- 52,791,577 INSTRUMENTS 5.1% - ----------------------------------------------------------------- 1-800 CONTACTS, Inc. * 640 10,752 Align Technology, Inc. (a)* 8,898 141,122 Allied Healthcare Products, Inc. * 19,700 119,283 Angeion Corp. * 10,614 156,026 Astro-Med, Inc. 8,726 95,986
See financial notes. Laudus Funds Annual Report 45 LAUDUS ROSENBERG U.S. DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Atrion Corp. 1,111 102,012 Bio-Rad Laboratories, Inc., Class A * 11,950 834,588 Bruker BioSciences Corp. * 62,386 656,301 Cholestech Corp. * 5,079 87,562 Coherent, Inc. (a)* 102,561 3,255,286 Data I/O Corp. * 200 712 Datascope Corp. (a) 33,275 1,204,222 Esterline Technologies Corp. (a)* 7,530 309,257 FARO Technologies, Inc. * 7,410 213,927 Fei Co. (a) 43,119 1,554,871 Hurco Cos., Inc. * 16,570 710,024 Immucor, Inc. 160,642 4,727,694 Input/Output, Inc. (a) 143,980 1,984,044 K-Tron International, Inc. * 2,400 172,152 Mesa Laboratories, Inc. 2,188 41,474 Mettler-Toledo International, Inc. * 6,864 614,808 MOCON, Inc. 3,253 41,834 New Brunswick Scientific Co., Inc. * 7,124 57,491 O.I. Corp. 4,685 53,760 Oakley, Inc. 31,259 629,556 Orthofix International N.V. * 8,913 455,009 OSI Systems, Inc. (a)* 16,160 427,270 Perceptron, Inc. * 21,070 189,630 PerkinElmer, Inc. 268,401 6,500,672 Span-America Medical Systems, Inc. 7,600 120,916 Steris Corp. (a) 130,985 3,478,962 Teleflex, Inc. 128,880 8,772,862 Tollgrade Communications, Inc. * 31,031 389,749 Trimble Navigation Ltd. * 42,930 1,152,241 Universal Security Instruments, Inc. (a)* 6,959 239,042 Varian, Inc. * 35,430 2,064,152 Viasys Healthcare, Inc. (a)* 97,900 3,327,621 Vicon Industries, Inc. * 2,890 28,756 Vital Signs, Inc. (a) 9,168 476,553 Waters Corp. * 4,030 233,740 Zoll Medical Corp * 60,998 1,625,597 Zygo Corp. * 39,407 630,906 --------------- 47,888,422 INSURANCE 8.7% - ----------------------------------------------------------------- Alleghany Corp. (a)* 653 243,886 American Equity Investment Life Holding Co. 38,260 502,354 American Financial Group, Inc. 263,059 8,954,528 American National Insurance Co. 15,033 1,923,172 American Physicians Service Group, Inc. * 7,700 135,866 American Safety Insurance Holdings Ltd. * 3,490 66,519 Arch Capital Group Ltd. * 119,186 8,129,677 Argonaut Group, Inc. * 12,667 409,904 Aspen Insurance Holdings Ltd. 230,904 6,051,994 Baldwin & Lyons, Inc., Class B (a) 4,275 108,799 Delphi Financial Group, Inc., Class A 17,699 712,031 Endurance Specialty Holdings Ltd. (a) 182,800 6,533,272
NUMBER OF VALUE SECURITY SHARES ($) FBL Financial Group, Inc., Class A (a) 1,300 50,869 Great American Financial Resources, Inc. 26,160 640,397 Harleysville Group, Inc. (a) 4,070 132,234 HCC Insurance Holdings, Inc. (a) 36,400 1,121,120 Horace Mann Educators Corp. 94,580 1,943,619 Investors Title Co. 2,411 121,346 IPC Holdings Ltd. (a) 78,436 2,262,879 Kansas City Life Insurance Co. (a) 7,343 330,435 Max Re Capital Ltd. 110,101 2,805,373 Meadowbrook Insurance Group, Inc. (a)* 48,311 530,938 Mercer Insurance Group, Inc. 6,190 123,119 National Western Life Insurance Co., Class A * 3,398 831,830 NYMAGIC, Inc. (a) 13,390 546,981 Odyssey Re Holdings Corp. (a) 3,390 133,261 Old Republic International Corp. (a) 154,760 3,423,291 Partnerre Ltd. (a) 109,440 7,501,017 Philadelphia Consolidated Holding Corp. (a)* 114,626 5,042,398 Presidential Life Corp. 42,187 831,928 ProCentury Corp. (a) 36,600 849,120 Radian Group, Inc. 63,642 3,492,673 Reinsurance Group of America, Inc. (a) 96,640 5,578,061 RenaissanceRe Holdings Ltd. (a) 101,076 5,067,951 RTW, Inc. * 1,900 15,523 Selective Insurance Group, Inc. (a) 20,374 518,722 The Midland Co. (a) 5,465 231,825 Unico American Corp. * 10,910 138,230 United America Indemnity Ltd., Class A * 26,483 614,406 Wesco Financial Corp. 2,110 970,600 Zenith National Insurance Corp. (a) 43,815 2,071,135 --------------- 81,693,283 IT HARDWARE 5.0% - ----------------------------------------------------------------- Advanced Energy Industries, Inc. (a)* 78,821 1,658,394 Amtech Systems, Inc. (a)* 3,460 25,189 Aviza Technology, Inc. * 4,884 35,214 Avocent Corp. (a)* 15,873 428,095 AVX Corp. (a) 38,310 582,312 Axcelis Technologies, Inc. (a)* 3,140 23,990 CTS Corp. 51,835 716,360 Cymer, Inc. * 35,067 1,457,034 Digi International, Inc. (a)* 7,050 89,535 EMS Technologies, Inc. * 40,545 781,302 Espey Manufacturing & Electronics Corp. 3,600 70,740 Exar Corp. * 107,321 1,420,930 Globecomm Systems, Inc. * 28,188 301,612 Harmonic, Inc. * 430 4,223 Imation Corp. 110,998 4,482,099 Integrated Device Technology, Inc. * 100,246 1,545,793 inTEST Corp. * 4,286 19,287
See financial notes. 46 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) Kimball International, Inc., Class B (a) 768 14,807 Lattice Semiconductor Corp. * 860 5,031 LSI Logic Corp. (a)* 996,444 10,402,875 Merix Corp. (a)* 4,860 39,949 MKS Instruments, Inc. (a)* 65,943 1,682,865 ON Semiconductor Corp. (a)* 28,827 257,137 Oplink Communications, Inc. * 48,891 878,571 Pericom Semiconductor Corp. (a)* 38,051 372,139 RF Micro Devices, Inc. (a)* 553,980 3,451,295 Rudolph Technologies, Inc. (a)* 73,598 1,283,549 Semitool, Inc. (a)* 76,033 988,429 SonicWALL, Inc. (a)* 202,447 1,692,457 Spectrum Control, Inc. * 31,270 384,621 Standard Microsystems Corp. * 26,903 821,618 Technitrol, Inc. 152,370 3,990,570 Viasat, Inc. (a) 1,820 60,005 Vishay Intertechnology, Inc. (a)* 513,840 7,183,483 White Electronic Designs Corp. * 2,198 14,639 --------------- 47,166,149 LAND & WATER TRANSPORTATION 1.0% - ----------------------------------------------------------------- B & H Ocean Carriers Ltd. * 2,390 43,737 GulfMark Offshore, Inc. * 10,294 449,333 Hub Group, Inc., Class A * 14,316 415,021 International Shipholding Corp. * 1,400 25,704 Pacer International, Inc. (a) 15,112 407,117 Saia, Inc. * 4,276 101,555 SEACOR Holdings, Inc. (a)* 53,626 5,276,799 Trico Marine Services, Inc. (a)* 20,120 749,671 U.S. Xpress Enterprises, Inc., Class A * 28,389 489,994 Werner Enterprises, Inc. (a) 67,702 1,230,145 --------------- 9,189,076 MAINFRAME & MINICOMPUTERS 0.1% - ----------------------------------------------------------------- Omnicell, Inc. * 63,800 1,334,696 METAL PRODUCTS & MACHINERY 3.8% - ----------------------------------------------------------------- AGCO Corp. (a)* 69,895 2,584,018 Allied Motion Technologies, Inc. * 6,681 42,692 Astec Industries, Inc. * 52,700 2,121,175 Baldor Electric Co. (a) 2,800 105,672 Bonso Electronic International, Inc. 11,533 47,170 Brooks Automation, Inc. (a)* 6,050 103,758 Chart Industries, Inc. * 2,593 47,089 Chicago Rivet & Machine Co. 420 9,303 CompX International, Inc. 5,800 93,554 Eastern Co. 13,940 378,889 Electro Scientific Industries, Inc. (a)* 22,909 440,769 EnPro Industries, Inc. * 64,300 2,318,015 Evans & Sutherland Computer Corp. * 6,153 19,382 FSI International, Inc. (a)* 60 268 Gardner Denver, Inc. * 40,940 1,426,759 Gerber Scientific, Inc. (a)* 76,620 812,938 Goodman Global, Inc. (a)* 333 5,867 Hardinge, Inc. 10,201 266,858 Kadant, Inc. * 50,900 1,290,824 Kennametal, Inc. 45,109 3,049,820
NUMBER OF VALUE SECURITY SHARES ($) Key Technology, Inc. * 420 6,636 Lincoln Electric Holdings, Inc. (a) 16,908 1,007,040 Littelfuse, Inc. * 320 12,992 Material Sciences Corp. * 38,892 388,142 MFRI, Inc. * 5,616 104,121 Newport Corp. (a) 14,260 233,436 NN, Inc. (a) 10,609 132,506 Nordson Corp. (a) 1,390 64,579 North American Galvanizing & Coatings, Inc. * 21,162 108,349 P & F Industries, Inc., Class A * 3,250 40,690 Powell Industries, Inc. (a)* 1,720 55,040 Q.E.P. Co., Inc. * 1,679 10,091 Regal Beloit Corp. (a) 76,330 3,540,185 Robbins & Myers, Inc. (a) 39,480 1,472,209 Rofin-Sinar Technologies, Inc. * 720 42,610 RTI International Metals, Inc. (a)* 7,370 670,744 SL Industries, Inc. * 10,470 157,574 SPX Corp. 38,000 2,667,600 Standex International Corp. (a) 16,690 475,832 Tennant Co. 5,920 186,421 The L.S. Starrett Co., Class A 5,020 90,491 The Manitowoc Co., Inc. 10,258 651,691 The Middleby Corp. (a)* 866 114,173 Twin Disc, Inc. 3,360 143,472 Varian Semiconductor Equipment Associates, Inc. (a)* 67,562 3,606,460 Veeco Instruments, Inc. (a) 93,254 1,818,453 Velcro Industries N.V. 17,743 306,776 Watts Water Technologies, Inc., Class A (a) 18,593 707,092 Woodward Governor Co. 26,610 1,095,534 --------------- 35,075,759 MISCELLANEOUS FINANCE 2.7% - ----------------------------------------------------------------- A.G. Edwards, Inc. 199,160 13,777,889 Cohen & Steers, Inc. 2,090 90,037 Knight Capital Group, Inc., Class A (a)* 348,063 5,513,318 Raymond James Financial, Inc. 128,265 3,817,166 SWS Group, Inc. (a) 63,156 1,566,900 Value Line, Inc. (a) 2,407 115,055 --------------- 24,880,365 OIL & COAL RESOURCES 0.6% - ----------------------------------------------------------------- Mariner Energy, Inc. * 183,266 3,505,879 Rosetta Resources, Inc. (a)* 46,922 963,778 Teton Energy Corp. * 99,210 480,176 Unit Corp. (a)* 11,920 603,033 --------------- 5,552,866 OIL DISTRIBUTION 0.7% - ----------------------------------------------------------------- Adams Resources & Energy, Inc. 9,259 339,435 Tesoro Corp. (a) 28,607 2,873,001 Western Refining, Inc. (a) 78,272 3,054,174 World Fuel Services Corp. 13,170 609,244 --------------- 6,875,854 OIL DRILLING & SERVICES 2.5% - ----------------------------------------------------------------- Atwood Oceanics, Inc. * 84,700 4,971,043 Basic Energy Services, Inc. (a)* 15,260 355,558 Dawson Geophysical Co. * 300 14,859
See financial notes. Laudus Funds Annual Report 47 LAUDUS ROSENBERG U.S. DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Global Industries Ltd. * 15,370 281,117 Helmerich & Payne, Inc. 16,980 515,173 Lufkin Industries, Inc. (a) 29,340 1,648,321 Superior Energy Services, Inc. * 137,442 4,737,626 T-3 Energy Services, Inc * 4,800 96,576 Tidewater, Inc. (a) 181,780 10,648,673 W-H Energy Services, Inc. * 2,870 134,144 --------------- 23,403,090 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.8% - ----------------------------------------------------------------- Baldwin Technology Co., Inc., Class A * 43,210 216,050 Key Tronic Corp. (a)* 10,258 42,058 Komag, Inc. (a)* 47,800 1,564,494 Printronix, Inc. 380 5,263 STEC, Inc. (a)* 124,954 879,676 VASCO Data Security International, Inc. * 346 6,183 VeriFone Holdings, Inc. (a)* 139,919 5,139,225 --------------- 7,852,949 PUBLISHING, BROADCASTING & CINEMA 0.4% - ----------------------------------------------------------------- Alloy, Inc. * 1,920 22,810 Bowne & Co., Inc. 21,340 335,678 Champion Industries, Inc. (a) 7,808 64,494 Franklin Covey Co. * 53,390 421,781 Media General, Inc., Class A (a) 8,270 315,583 Regent Communications, Inc. (a)* 12,716 40,946 Scholastic Corp. * 61,124 1,900,956 Source Interlink Cos., Inc. (a)* 46,766 313,800 Tufco Technologies, Inc. * 2,242 18,317 World Wrestling Entertainment, Inc., Class A 4,630 75,469 --------------- 3,509,834 REAL ESTATE DEVELOPMENT 0.4% - ----------------------------------------------------------------- American Spectrum Realty, Inc. * 300 8,106 AMREP Corp. (a)* 4,645 358,826 Avatar Holdings, Inc. (a)* 10,709 765,051 ILX Resorts, Inc. 5,160 47,988 J.W. Mays, Inc. * 500 10,750 Service Corp. International 166,230 1,971,488 Stratus Properties, Inc. * 710 23,870 United Capital Corp. * 8,880 302,897 Wellsford Real Properties, Inc. * 16,610 129,807 --------------- 3,618,783 REAL ESTATE INVESTMENT TRUSTS 6.5% - ----------------------------------------------------------------- American Campus Communities, Inc. (a) 3,710 112,376 American First Apartment Investors, Inc. (a) 1,300 26,377 Ashford Hospitality Trust 145,500 1,737,270 Associated Estates Realty Corp. 57,780 814,120 CBL & Associates Properties, Inc. 110 4,932 Digital Realty Trust, Inc. 7,480 298,452 Eagle Hospitality Properties Trust, Inc. (a) 61,950 690,742 Extra Space Storage, Inc. (a) 159,071 3,012,805 Franklin Street Properties Corp. (a) 20,210 387,628 Gladstone Commercial Corp. 2,710 54,336
NUMBER OF VALUE SECURITY SHARES ($) Highland Hospitality Corp. 158,943 2,829,185 Home Properties, Inc. 26,000 1,373,060 HRPT Properties Trust (a) 655,080 8,057,484 Innkeepers USA Trust 20,575 334,961 iStar Financial, Inc. 87,767 4,110,129 Kite Realty Group Trust (a) 26,350 525,682 Lasalle Hotel Properties (a) 94,270 4,370,357 LTC Properties, Inc. 32,580 844,148 Medical Properties Trust, Inc. (a) 136,000 1,997,840 Mission West Properties, Inc. 33,650 486,579 Monmouth Capital Corp. 3,030 16,756 Monmouth Real Estate Investment Corp., Class A 56,990 491,254 National Retail Properties, Inc. 136,288 3,296,807 Omega Healthcare Investor, Inc. 166,890 2,862,163 One Liberty Properties, Inc. 26,650 607,886 Ramco-Gershenson Properties Trust 18,900 674,919 Republic Property Trust (a) 29,910 343,666 Spirit Finance Corp. 248,567 3,703,648 Strategic Hotel & Resorts, Inc. 204,986 4,688,030 Sunstone Hotel Investors, Inc. 211,391 5,762,519 Supertel Hospitality, Inc. 31,979 244,000 Urstadt Biddle Properties, Inc., Class A 2,780 54,377 Weingarten Realty Investors (a) 79,557 3,783,731 Winston Hotels, Inc. 77,944 1,171,498 Winthrop Realty Trust 122,391 809,005 --------------- 60,578,722 RESTAURANTS, HOTELS & THEATERS 3.1% - ----------------------------------------------------------------- Analogic Corp. 14,289 898,492 Avalon Holdings Corp., Class A * 1,600 12,752 Benihana, Inc. * 7,446 210,350 Bob Evans Farms, Inc. (a) 34,884 1,288,964 Brinker International, Inc. 135,899 4,443,897 Buffalo Wild Wings, Inc. (a)* 2,248 143,198 Burger King Holdings, Inc. 77,770 1,679,832 CBRL Group, Inc. (a) 109,064 5,049,663 CEC Entertainment, Inc. * 6,340 263,364 Churchill Downs, Inc. 1,000 45,390 Dollar Thrifty Automotive Group, Inc. (a)* 760 38,790 Flanigan's Enterprises, Inc. * 931 10,288 Friendly Ice Cream Corp. * 5,860 87,138 Frisch's Restaurants, Inc. (a) 4,660 174,750 Interstate Hotels & Resorts, Inc. * 96,200 607,022 J. Alexander's Corp. 10,580 116,909 Jack in the Box, Inc. * 41,287 2,854,170 Live Nation, Inc. * 182,508 4,026,126 Marcus Corp. 43,460 1,010,880 Mexican Restaurants, Inc. * 8,834 84,718 Nathan's Famous, Inc. * 5,324 79,860 O'Charley's, Inc. * 280 5,401 Red Lion Hotels Corp. * 34,520 429,429 Silverleaf Resorts, Inc. * 49,240 228,474 Speedway Motorsports, Inc. (a) 35,510 1,376,012 Star Buffet, Inc. 3,900 32,565 The Steak n Shake Co. * 4,170 69,931 Vail Resorts, Inc. (a)* 64,440 3,501,025 --------------- 28,769,390
See financial notes. 48 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) RETAIL 6.0% - ----------------------------------------------------------------- 1-800-FLOWERS.COM, Inc., Class A (a)* 80,900 629,402 American Eagle Outfitters, Inc. (a) 88,200 2,645,118 Arden Group, Inc., Class A (a) 220 29,370 Big Lots, Inc. (a)* 339,606 10,622,876 Books-A-Million, Inc. (a) 9,862 140,435 Cabela's, Inc. * 72,470 1,797,981 CarMax, Inc. * 25,160 617,426 Cash America International, Inc. 38,880 1,594,080 Charlotte Russe Holding, Inc. 19,519 563,514 Charming Shoppes, Inc. (a)* 202,581 2,623,424 Collegiate Pacific, Inc. (a) 22,660 176,748 Cost-U-Less, Inc. * 7,770 69,852 Deb Shops, Inc. 3,806 103,067 Dick's Sporting Goods, Inc. * 2,170 126,424 Dillard's, Inc., Class A (a) 89,356 2,924,622 EZCORP, Inc., Class A * 113,106 1,666,051 First Cash Financial Services, Inc. * 30,144 671,608 Gottschalks, Inc. * 22,237 317,322 GSI Commerce, Inc. (a)* 32,139 726,020 Hastings Entertainment, Inc. (a)* 26,860 163,846 Haverty Furniture Cos., Inc. (a) 80,070 1,120,980 Ingles Markets, Inc., Class A 27,765 1,133,923 Insight Enterprises, Inc. (a)* 61,392 1,103,828 Jennifer Convertibles, Inc. * 1,290 6,011 Longs Drug Stores Corp. 105,930 5,470,225 Mothers Work, Inc. (a)* 800 26,512 OfficeMax, Inc. 47,051 2,481,470 PC Connection, Inc. (a)* 200 2,860 PC Mall, Inc. (a)* 32,090 319,937 RadioShack Corp. (a) 14,470 391,124 Restoration Hardware, Inc. (a)* 99,600 653,376 Retail Ventures, Inc. * 23,540 495,517 REX Stores Corp. * 10,920 178,651 Ruddick Corp. (a) 1,380 41,510 Rush Enterprises, Inc., Class A (a)* 11,768 226,063 Rush Enterprises, Inc., Class B * 32,497 588,521 Saks, Inc. * 120,361 2,508,323 Shoe Carnival, Inc. * 29,500 982,350 Shutterfly, Inc. * 6,190 99,288 Spartan Stores, Inc. 79,874 2,140,623 Systemax, Inc. (a)* 19,776 370,405 The Bon-Ton Stores, Inc. (a) 21,200 1,192,288 The Buckle, Inc. (a) 750 26,775 The Cato Corp., Class A (a) 86,060 2,012,943 The Great Atlantic & Pacific Tea Co., Inc. * 59,400 1,970,892 The Men's Wearhouse, Inc. (a) 6,330 297,827 Trans World Entertainment Corp. * 77,740 441,563 Village Super Market, Inc., Class A 1,000 95,490 Weis Markets, Inc. (a) 31,490 1,407,603 Zones, Inc. * 1,110 11,378 --------------- 56,007,442 SOFTWARE 6.8% - ----------------------------------------------------------------- American Software, Inc., Class A 16,950 136,447 Ansoft Corp. (a)* 25,060 792,898
NUMBER OF VALUE SECURITY SHARES ($) Aspen Technology, Inc. 48,660 632,580 Black Box Corp. (a) 47,851 1,748,475 Blackbaud, Inc. (a) 21,552 526,300 BMC Software, Inc. * 543,900 16,746,681 Captaris, Inc. * 56,771 328,704 CIBER, Inc. * 76,840 604,731 Computer Task Group, Inc. * 9,085 40,973 CSP, Inc. * 7,852 72,474 Edgewater Technology, Inc. (a)* 33,993 286,901 Emdeon Corp. (a) 734,728 11,116,435 First American Corp. 103,113 5,229,891 Goldleaf Financial Solutions, Inc. * 8,400 55,272 Harris Interactive, Inc. (a)* 40,688 245,349 HMS Holdings Corp. (a)* 18,264 399,982 Inforte Corp. * 19,069 66,169 Keynote Systems, Inc. * 4,830 64,819 Lawson Software, Inc. (a) 99,063 801,420 Lightbridge, Inc. * 71,447 1,255,324 Mentor Graphics Corp. 5,060 82,680 Moldflow Corp. * 4,594 69,048 Move, Inc. * 10,710 59,333 Ness Technologies, Inc. * 1,832 23,413 NetManage, Inc. * 2,380 12,495 NetScout Systems, Inc. (a)* 23,411 211,870 PC-Tel, Inc. * 43,613 443,544 Perot Systems Corp., Class A * 208,860 3,732,328 SAVVIS, Inc. (a)* 95,731 4,583,600 SPSS, Inc. * 16,620 599,982 Sybase, Inc. * 243,961 6,167,334 Synopsys, Inc. (a)* 207,156 5,433,702 Syntel, Inc. (a) 14,401 498,995 Taleo Corp., Class A (a)* 41,470 687,573 TechTeam Global, Inc. * 1,210 15,125 THQ, Inc. * 360 12,308 TSR, Inc. 4,099 17,298 --------------- 63,802,453 TEXTILES & APPAREL 3.3% - ----------------------------------------------------------------- Crocs, Inc. (a)* 18,447 871,621 Culp, Inc. * 4,260 30,161 Cutter & Buck, Inc. 3,080 36,498 Decorator Industries, Inc. 3,640 25,480 G-III Apparel Group Ltd. * 39,740 757,047 Guess?, Inc. * 148,960 6,031,391 Interface, Inc., Class A 136,925 2,189,431 LaCrosse Footwear, Inc. * 2,350 36,190 Liz Claiborne, Inc. 47,686 2,043,345 Perry Ellis International, Inc. * 26,890 860,211 Phillips-Van Heusen Corp. (a) 133,490 7,849,212 R.G. Barry Corp. * 6,730 70,127 Skechers U.S.A., Inc., Class A * 61,000 2,047,770 Steven Madden Ltd. 71,657 2,092,384 Stride Rite Corp. 105,567 1,624,676 The Gymboree Corp. * 61,560 2,466,709 Weyco Group, Inc. (a) 12,484 324,334 Wolverine World Wide, Inc. 48,120 1,374,788 --------------- 30,731,375 WHOLESALE 3.6% - ----------------------------------------------------------------- Anixter International, Inc. (a) 24,884 1,640,851 Applied Industrial Technologies, Inc. 71,827 1,762,634
See financial notes. Laudus Funds Annual Report 49 LAUDUS ROSENBERG U.S. DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Arrow Electronics, Inc. * 247,291 9,335,235 Avnet, Inc. * 417,640 15,093,510 Brown Shoe Co., Inc. 61,905 2,600,010 Coast Distribution System, Inc. 10,030 77,732 Delta Apparel, Inc. 2,790 48,546 En Pointe Technologies, Inc. * 610 2,080 Huttig Building Products, Inc. * 13,618 82,389 IKON Office Solutions, Inc. 8,800 126,456 Industrial Distribution Group, Inc. * 16,083 200,877 Kaman Corp. 2,762 64,382 Keystone Automotive Industries, Inc. (a)* 7,287 245,572 Lawson Products, Inc. (a) 3,368 127,580 Man Sang Holdings, Inc. * 9,370 56,220 NACCO Industries, Inc., Class A 10,707 1,471,249 Park-Ohio Holdings Corp. (a)* 5,390 99,715 Richardson Electronics Ltd. 51,200 478,208 TESSCO Technologies, Inc. * 13,095 356,053 Traffix, Inc. 8,296 45,960 --------------- 33,915,259 --------------- TOTAL COMMON STOCK (COST $761,034,449) 928,439,355 --------------- SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT 0.8% OF NET ASSETS REPURCHASE AGREEMENT 0.8% - ----------------------------------------------------------------- Fixed Income Clearing Corp. dated 03/30/07, due 04/02/07 at 5.00%, with a maturity value of $7,524,134 (fully collateralized by Federal Home Loan Bank with a value of $7,671,563.) 7,521,000 7,521,000 --------------- TOTAL SHORT-TERM INVESTMENT (COST $7,521,000) 7,521,000 - ----------------------------------------------------------------- END OF INVESTMENTS. At 03/31/07 the tax basis cost of the fund's investments was $769,008,508 and the unrealized appreciation and depreciation were $177,305,903 and ($10,354,056), respectively, with a net unrealized appreciation of $166,951,847.
NUMBER OF VALUE SECURITY SHARES ($) COLLATERAL INVESTED FOR SECURITIES ON LOAN 7.8% OF NET ASSETS State Street Navigator Security Lending Prime Portfolio 72,805,635 72,805,635 - ----------------------------------------------------------------- END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
* Non-income producing security. (a) All or a portion of this security is on loan. See financial notes. 50 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 99.3% COMMON STOCK 767,896,335 1,010,613,511 --% SHORT-TERM INVESTMENT 501,000 501,000 - ----------------------------------------------------------------- 99.3% TOTAL INVESTMENTS 768,397,335 1,011,114,511 8.9% COLLATERAL INVESTED FOR SECURITIES ON LOAN 90,803,224 90,803,224 (8.2)% OTHER ASSETS AND LIABILITIES (83,888,094) - ----------------------------------------------------------------- 100.0% NET ASSETS 1,018,029,641
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 99.3% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 1.9% - ------------------------------------------------------------------ Flowers Foods, Inc. (a) 233,484 7,044,212 Imperial Sugar Co. (a) 11,360 380,901 J & J Snack Foods Corp. (a) 16,508 651,901 National Beverage Corp. (a)* 65,490 1,148,695 Penford Corp. 3,415 68,778 Seaboard Corp. (a) 4,460 10,079,600 Seneca Foods Corp., Class B * 400 11,224 Tasty Baking Co. (a) 470 4,103 ----------------- 19,389,414 AIRLINES 1.8% - ------------------------------------------------------------------ AirNet Systems, Inc. * 36,300 116,523 Alaska Air Group, Inc. (a)* 257,500 9,810,750 Pinnacle Airlines Corp. (a)* 10,710 185,176 Republic Airways Holdings, Inc. (a)* 77,148 1,771,318 SkyWest, Inc. (a) 253,861 6,811,091 ----------------- 18,694,858 AUTOS 0.3% - ------------------------------------------------------------------ Aftermarket Technology Corp. * 95,219 2,311,917 Spartan Motors, Inc. (a) 15,951 370,223 Supreme Industries, Inc., Class A (a) 17,130 100,211 ----------------- 2,782,351 BANKS & CREDIT INSTITUTIONS 4.3% - ------------------------------------------------------------------ 1st Source Corp. 24,681 645,902 Advanta Corp., Class A 148,677 5,958,974 Advanta Corp., Class B 25,735 1,128,222 American Community Bancshares, Inc. 8,100 91,530 Auburn National Bancorp, Inc. 100 2,888 BancFirst Corp. (a) 39,169 1,815,483 Bank of Granite Corp. (a) 953 17,078 BankUnited Financial Corp., Class A (a) 13,517 286,696 Banner Corp. 870 36,149 Berkshire Hills Bancorp, Inc. (a) 3,079 103,608 Beverly Hills Bancorp, Inc. 138,600 1,053,360 BNCCorp, Inc. * 10,667 175,472 BOE Financial Services of Virginia, Inc. 301 9,409 Britton & Koontz Capital Corp. 5,473 103,987 C&F Financial Corp. 180 7,911
NUMBER OF VALUE SECURITY SHARES ($) Camco Financial Corp. 540 6,934 Carrollton Bancorp 100 1,769 Carver Bancorp, Inc. 22,600 378,550 Central Bancorp, Inc. 320 9,744 Centrue Financial Corp. 12,120 234,764 CFS Bancorp, Inc. (a) 24,552 368,034 Codorus Valley Bancorp, Inc. 281 5,347 Community Bank Shares of Indiana, Inc. 1,030 22,377 Community Capital Corp. 3,588 72,460 Community Financial Corp. 4,350 52,809 Community Shores Bank Corp. * 180 2,227 Community West Bancshares 11,100 175,602 CompuCredit Corp. (a)* 45,458 1,419,199 Consumer Portfolio Services, Inc. * 39,625 243,694 Cooperative Bankshares, Inc. 433 7,123 Corus Bankshares, Inc. (a) 49,415 843,020 Cowlitz Bancorp * 36,907 627,419 Crescent Banking Co. 1,473 63,884 Delta Financial Corp. (a) 65,087 538,269 Desert Community Bank 39,358 747,802 Dollar Financial Corp. * 61 1,543 Downey Financial Corp. (a) 120 7,745 ECB Bancorp, Inc. 2,089 69,982 Elmira Savings Bank, FSB 11,999 317,734 Exchange National Bancshares, Inc. 4,080 147,696 Farmers Capital Bank Corp. (a) 1,815 53,325 Federal Agricultural Mortgage Corp., Class C (a) 34,590 940,848 Fidelity Bancorp, Inc. 60 1,116 Fidelity Southern Corp. 9,457 180,061 First Bancorp of Indiana, Inc. 3,391 59,682 First Bancshares, Inc. * 12,121 204,542 First BancTrust Corp. 12,550 148,467 First California Financial Group, Inc. * 13,770 174,190 First Citizens BancShares, Inc., Class A 13,450 2,703,450 First Defiance Financial Corp. 3,756 107,797 First Federal Bancshares of Arkansas, Inc. 14,584 344,766 First Federal Bankshares, Inc. 5,999 128,679 First Financial Service Corp. 109 3,127 First Mariner Bancorp, Inc. * 4,540 69,008 First Place Financial Corp. 70,703 1,516,579 First Regional Bancorp (a)* 22,413 665,666 First West Virginia Bancorp, Inc. 330 6,683 FNB Corp. of North Carolina 9,544 159,862 FNB Corp. of Virginia (a) 700 25,081 Franklin Bank Corp. (a)* 196,222 3,506,487 Glen Burnie Bancorp 360 6,417 Great Pee Dee Bancorp, Inc. 1,560 23,985 Greene County Bancshares, Inc. 108 3,662 GS Financial Corp. 8,660 177,746 Guaranty Federal Bancshares, Inc. 4,019 117,757 Habersham Bancorp, Inc. 25,078 575,540 Hanmi Financial Corp. (a) 722 13,761 HF Financial Corp. 25,416 463,842 Hingham Institution for Savings 9,400 323,830
See financial notes. Laudus Funds Annual Report 51 LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) HMN Financial, Inc. 17,130 579,679 Horizon Bancorp 6,123 164,770 Intervest Bancshares Corp. (a)* 39,259 1,126,733 Irwin Financial Corp. (a) 19,020 354,533 ITLA Capital Corp. 8,108 421,778 Lincoln Bancorp 2,000 37,900 LSB Financial Corp. 4,076 107,769 MASSBANK Corp. 12,262 402,194 Meta Financial Group, Inc. 2,000 63,000 MFB Corp. 3,400 114,240 MidWestOne Financial Group, Inc. 22,442 392,062 Monarch Community Bancorp, Inc. 1,800 21,078 NBT Bancorp, Inc. 9,120 213,682 New Hampshire Thrift Bancshares, Inc. 10,030 156,769 North Central Bancshares, Inc. 300 12,027 North Valley Bancorp 13,096 329,102 Northeast Bancorp 100 1,865 Northway Financial, Inc. 14,700 479,881 OceanFirst Financial Corp. 6,280 108,958 Park Bancorp, Inc. 12,608 430,248 Parkvale Financial Corp. 28,980 846,506 Peoples Bancorp of North Carolina 1,599 42,853 Peoples Bancorp, Inc. 900 17,627 Peoples BancTrust Co., Inc. 14,700 279,741 Peoples Community Bancorp, Inc. 2,700 45,846 Pinnacle Bancshares, Inc. 1,830 27,642 Premier Financial Bancorp, Inc. 2,300 37,421 Princeton National Bancorp, Inc. 157 4,710 Provident Community Bancshares, Inc. 400 8,344 Provident Financial Holdings, Inc. 40,331 1,109,909 QCR Holdings, Inc. (a) 4,225 65,319 Republic First Bancorp, Inc. * 34,597 445,609 Royal Bancshares of Pennsylvania, Class A (a) 209 4,964 Sierra Bancorp (a) 3,090 86,705 Simmons First National Corp., Class A (a) 2,600 78,182 South Street Financial Corp. 393 3,360 Southern Missouri Bancorp, Inc. 12,548 193,867 Southwest Bancorp, Inc. 41,470 1,065,364 Team Financial, Inc. 16,278 246,612 Teche Holding Co. 3,900 172,380 TF Financial Corp. (a) 10,266 313,113 The Washington Savings Bank, F.S.B. 12,850 109,225 Timberland Bancorp, Inc. 20,500 722,625 United Bancshares, Inc. 11,438 184,952 United Community Financial Corp. (a) 25,781 284,880 United Security Bancshares, Inc. (a) 1,180 34,727 Unity Bancorp, Inc. 14,004 166,087 Wainwright Bank & Trust Co. 52,304 668,445 Willow Financial Bancorp, Inc. (a) 5,282 68,138
NUMBER OF VALUE SECURITY SHARES ($) WSFS Financial Corp. 10,204 657,954 WVS Financial Corp. 252 4,334 ----------------- 44,024,061 BASIC MINERALS & METALS 3.0% - ------------------------------------------------------------------ AK Steel Holding Corp. * 37,200 870,108 Brush Engineered Materials, Inc. (a)* 450 21,811 Chaparral Steel Co. 137,722 8,011,289 CommScope, Inc. (a)* 169,600 7,275,840 General Cable Corp. (a)* 49,733 2,657,234 Northwest Pipe Co. * 43,927 1,749,612 OM Group, Inc. (a)* 118,532 5,296,010 Superior Essex, Inc. (a)* 119,549 4,144,764 Synalloy Corp. 1,000 27,920 Universal Stainless & Alloy Products, Inc. * 1,040 49,369 ----------------- 30,103,957 BEER, LIQUOR, & TOBACCO 0.0% - ------------------------------------------------------------------ MGP Ingredients, Inc. (a) 470 9,574 Universal Corp. (a) 300 18,405 ----------------- 27,979 BIOTECHNOLOGY 0.3% - ------------------------------------------------------------------ Applera Corp. -- Celera Group * 68,048 966,282 Digene Corp. (a)* 38,293 1,624,006 Harvard Bioscience, Inc. * 108,142 521,244 ----------------- 3,111,532 CELLULAR & WIRELESS 0.0% - ------------------------------------------------------------------ USA Mobility, Inc. (a) 21,910 436,666 CHEMICALS & RUBBER 2.8% - ------------------------------------------------------------------ A. Schulman, Inc. (a) 323,637 7,624,888 Arch Chemicals, Inc. (a) 150,004 4,683,125 Bairnco Corp. 14,680 197,446 CF Industries Holdings, Inc. (a) 174,494 6,726,744 Hercules, Inc. * 333,590 6,518,348 Innospec, Inc. 25,240 1,454,834 LSB Industries, Inc. (a)* 10,200 158,814 NewMarket Corp. 1,800 73,206 Stepan Co. (a) 20,920 549,150 Terra Industries, Inc. * 5,780 101,150 Tronox, Inc., Class A 26,270 378,288 ----------------- 28,465,993 COMMERCIAL AIRCRAFT & COMPONENTS 0.3% - ------------------------------------------------------------------ Ducommun, Inc. * 11,810 303,871 Sequa Corp., Class A (a)* 11,030 1,321,063 TransDigm Group, Inc. * 370 13,461 Triumph Group, Inc. (a) 28,340 1,568,336 ----------------- 3,206,731 COMMUNICATIONS UTILITIES 2.7% - ------------------------------------------------------------------ Atlantic Tele-Network, Inc. (a) 67,050 1,752,017 CT Communications, Inc. (a) 172,300 4,152,430 D&E Communications, Inc. 50,654 674,711 Gilat Satellite Networks Ltd. * 229,200 1,890,900 Golden Telecom, Inc. 168,629 9,338,674 Mediacom Communications Corp., Class A (a)* 297,967 2,425,451
See financial notes. 52 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) Premiere Global Services, Inc. * 1,620 18,177 United Online, Inc. (a) 517,065 7,254,422 ----------------- 27,506,782 CONSTRUCTION & HOMEBUILDING 1.2% - ------------------------------------------------------------------ Comfort Systems USA, Inc. 164,100 1,965,918 EMCOR Group, Inc. (a)* 2,900 171,042 Horizon Offshore, Inc. (a)* 2,555 36,945 Infrasource Services, Inc. (a)* 7,290 222,564 Insituform Technologies, Inc., Class A (a)* 62,000 1,288,980 Meadow Valley Corp. (a)* 21,781 282,282 Perini Corp. (a)* 227,280 8,377,541 Skyline Corp. 5,230 176,460 U.S. Home Systems, Inc. * 1,465 18,679 ----------------- 12,540,411 CONSTRUCTION MATERIALS 0.4% - ------------------------------------------------------------------ Ameron International Corp. (a) 52,780 3,476,091 Continental Materials Corp. (a)* 6,600 188,430 Oil-Dri Corp. of America 8,475 141,532 Patrick Industries, Inc. * 38,697 463,977 ----------------- 4,270,030 CONSUMER DURABLES 0.3% - ------------------------------------------------------------------ Universal Electronics, Inc. * 110,184 3,069,726 DRUGS & PHARMACEUTICALS 1.8% - ------------------------------------------------------------------ E-Z-EM, Inc. * 13,463 216,485 Geopharma, Inc. * 11,115 48,906 Lifecore Biomedical, Inc. * 10 188 Natural Alternative International, Inc. (a)* 35,826 287,325 NBTY, Inc. (a)* 115,753 6,139,539 Nutraceutical International Corp. * 23,853 393,574 Perrigo Co. (a) 287,668 5,080,217 Schiff Nutrition International, Inc. * 134,150 921,610 Sciele Pharma, Inc. (a)* 213,229 5,049,263 Theragenics Corp. * 6,950 43,507 ----------------- 18,180,614 ELECTRIC UTILITIES 2.3% - ------------------------------------------------------------------ Avista Corp. 95,316 2,309,507 Central Vermont Public Service Corp. 2,560 73,779 CH Energy Group, Inc. 148,449 7,227,982 Cleco Corp. 1,560 40,295 El Paso Electric Co. * 21,110 556,248 Portland General Electric Co. (a) 4,210 122,932 The Empire District Electric Co. 13,010 322,648 UIL Holdings Corp. (a) 76,331 2,648,686 Unisource Energy Corp. (a) 262,613 9,861,118 Unitil Corp. 200 5,434 ----------------- 23,168,629 FINANCIAL INVESTMENTS 1.4% - ------------------------------------------------------------------ Aaron Rents, Inc. (a) 147,045 3,887,870 Ampal-American Israel Corp., Class A * 6,820 29,940
NUMBER OF VALUE SECURITY SHARES ($) California First National Bancorp (a) 36,431 479,068 Compass Diversified Trust 660 11,068 Electro Rent Corp. * 39,645 570,888 Enstar Group Ltd. (a)* 112 11,048 ePlus, Inc. * 30,534 325,187 Iconix Brand Group, Inc. (a)* 24,573 501,289 Jackson Hewitt Tax Service, Inc. 89,046 2,865,500 KMG America Corp. * 56,250 260,437 Macrovision Corp. (a)* 9,669 242,208 MVC Capital, Inc. * 850 13,302 PICO Holdings, Inc. (a)* 51,670 2,206,826 Rent-A-Center, Inc. (a)* 45,052 1,260,555 SRS Labs, Inc. * 32,260 449,382 Willis Lease Finance Corp. * 77,928 803,438 ----------------- 13,918,006 FOREST PRODUCTS & PAPER 0.6% - ------------------------------------------------------------------ American Woodmark Corp. (a) 16,246 597,203 Cenveo, Inc. * 25,470 618,921 CSS Industries, Inc. 4,210 157,791 Lydall, Inc. * 84,410 1,341,275 Nashua Corp. * 2,410 21,449 Rock-Tenn Co., Class A (a) 99,600 3,306,720 ----------------- 6,043,359 FURNITURE & HOUSEHOLD ITEMS 3.5% - ------------------------------------------------------------------ A.T. Cross Co., Class A * 1,040 9,152 Acuity Brands, Inc. (a) 97,590 5,312,800 AEP Industries, Inc. (a)* 16,754 720,422 American Biltrite, Inc. * 19,310 179,776 Bassett Furniture Industries, Inc. 103,716 1,526,700 Chase Corp. 8,700 282,837 Chromcraft Revington, Inc. * 45,690 439,538 Communications Systems, Inc. 59,900 621,762 Constar International, Inc. (a)* 79,440 703,044 Ethan Allen Interiors, Inc. (a) 3,750 132,525 Flexsteel Industries, Inc. 20,710 317,691 GameTech International, Inc. (a)* 13,009 158,970 Genlyte Group, Inc. (a)* 67,043 4,729,884 Griffon Corp. (a)* 187,234 4,634,042 Herman Miller, Inc. 5,770 193,237 Hooker Furniture Corp. (a) 23,269 466,543 JAKKS Pacific, Inc. (a)* 225,800 5,396,620 La-Z-Boy, Inc. (a) 19,570 242,277 Movado Group, Inc. (a) 175,100 5,156,695 National Presto Industries, Inc. 14,390 887,000 Preformed Line Products Co. (a) 965 35,695 RC2 Corp. (a)* 193 7,795 Tredegar Corp. (a) 10,280 234,281 UFP Technologies, Inc. * 2,550 11,934 West Pharmaceutical Services, Inc. (a) 67,873 3,151,343 ----------------- 35,552,563 GAS & OTHER PUBLIC UTILITIES 0.6% - ------------------------------------------------------------------ American States Water Co. (a) 5,880 216,796 Artesian Resources Corp., Class A 6,890 141,934 Delta Natural Gas Co., Inc. 499 12,475 Energy West, Inc. 1,710 24,367 Florida Public Utilities Co. 600 7,440
See financial notes. Laudus Funds Annual Report 53 LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Industrial Services of America, Inc. (a)* 1,807 12,016 RGC Resources, Inc. 2,500 70,875 SJW Corp. (a) 30,240 1,224,115 The Laclede Group, Inc. (a) 72,850 2,264,178 Waste Industries USA, Inc. 43,974 1,207,966 WGL Holdings, Inc. (a) 31,220 998,416 ----------------- 6,180,578 HEALTH CARE & HOSPITAL 1.8% - ------------------------------------------------------------------ Almost Family, Inc. * 36,872 918,113 Amedisys, Inc. * 8,456 274,228 American Shared Hospital Services 47,400 279,660 AMERIGROUP Corp. (a)* 34,550 1,050,320 Gentiva Health Services, Inc. * 64,929 1,309,618 Hanger Orthopedic Group, Inc. * 56,853 663,475 IntegraMed America, Inc. (a)* 27,516 411,364 Kindred Healthcare, Inc. (a)* 113,780 3,729,708 MedCath Corp. * 65,764 1,795,357 MEDTOX Scientific, Inc. * 12,950 238,280 National Dentex Corp. * 49,700 699,776 National Healthcare Corp. (a) 47,557 2,424,456 NovaMed, Inc. * 63,891 414,014 Psychemedics Corp. 28,614 485,007 Res-Care, Inc. (a)* 189,081 3,308,917 Sun Healthcare Group, Inc. * 5,560 68,666 ----------------- 18,070,959 INFORMATION & SERVICES 7.3% - ------------------------------------------------------------------ Ablest, Inc. * 2,560 18,906 Carriage Services, Inc. (a)* 42,150 340,993 CDI Corp. (a) 116,700 3,374,964 CPI Corp. (a) 10,520 552,405 Ecology & Environment, Inc. 25,210 299,495 Exponent, Inc. (a)* 105,200 2,098,740 Forrester Research, Inc. (a)* 28,431 806,303 ICT Group, Inc. (a)* 44,667 781,672 Infinity Pharmaceuticals, Inc. (a)* 2,700 32,508 Kelly Services, Inc., Class A (a) 223,895 7,209,419 Kendle International, Inc. (a)* 117,201 4,162,980 Kforce, Inc. * 7,320 100,796 Layne Christensen Co. (a)* 56,162 2,045,420 Metal Management, Inc. 143,095 6,610,989 Monro Muffler Brake, Inc. 99,882 3,505,858 MPS Group, Inc. (a)* 824,508 11,666,788 National Technical Systems, Inc. * 9,626 58,430 Nobel Learning Communities, Inc. * 4,980 75,397 Parexel International Corp. (a)* 154,283 5,549,560 PDI, Inc. * 26,253 249,929 RCM Technologies, Inc. * 103,793 740,044 Schnitzer Steel Industries, Inc., Class A (a) 175,191 7,037,422 Security National Financial Corp., Class A * 39,411 187,202 Spherion Corp. (a)* 434,213 3,829,759 SRI/Surgical Express, Inc. * 3,322 16,743 Stewart Enterprises, Inc., Class A 113,957 918,493 TeleTech Holdings, Inc. (a)* 332,800 12,210,432
NUMBER OF VALUE SECURITY SHARES ($) The Geo Group, Inc. * 1,230 55,744 Viad Corp. (a) 4,784 184,662 Volt Information Sciences, Inc. (a)* 12,420 325,280 VSE Corp. 8,441 347,432 Westaff, Inc. (a)* 5,840 33,405 ----------------- 75,428,170 INSTRUMENTS 4.4% - ------------------------------------------------------------------ 1-800 CONTACTS, Inc. (a)* 1,397 23,470 Allied Healthcare Products, Inc. * 78,652 476,238 Angeion Corp. (a)* 28,109 413,202 Astro-Med, Inc. 14,800 162,800 Atrion Corp. 12,770 1,172,541 Bio-Rad Laboratories, Inc., Class A * 28,700 2,004,408 Bruker BioSciences Corp. (a)* 159,411 1,677,004 Cardiac Science Corp. * 210 1,922 Cholestech Corp. * 20,314 350,213 Coherent, Inc. (a)* 17,682 561,227 Datascope Corp. (a) 145,114 5,251,676 Enpath Medical, Inc. * 5,964 59,640 Esterline Technologies Corp. (a)* 4,060 166,744 FEI Co. (a)* 152,673 5,505,388 Frequency Electronics, Inc. 1,450 15,834 Hurco Cos., Inc. (a)* 3,190 136,692 II-VI, Inc. (a)* 51,671 1,749,063 Immucor, Inc. (a)* 221,040 6,505,207 Input/Output, Inc. (a)* 100,848 1,389,686 IntriCon Corp. * 14,660 86,494 K-Tron International, Inc. * 25,210 1,808,313 Kewaunee Scientific Corp. 25,868 275,494 Mesa Laboratories, Inc. 1,700 32,224 New Brunswick Scientific Co., Inc. * 51,549 416,000 O.I. Corp. 29,264 335,804 Oakley, Inc. (a) 76,816 1,547,074 Orthofix International N.V. * 3,777 192,816 Perceptron, Inc. * 41,657 374,913 Schmitt Industries, Inc. * 6,864 52,304 Span-America Medical Systems, Inc. 27,300 434,343 Tollgrade Communications, Inc. * 4,094 51,421 Varian, Inc. * 9,496 553,237 Viasys Healthcare, Inc. * 273,560 9,298,304 Vicon Industries, Inc. * 35,120 349,444 Zoll Medical Corp. (a)* 38,504 1,026,132 Zygo Corp. * 5,686 91,033 ----------------- 44,548,305 INSURANCE 8.1% - ------------------------------------------------------------------ Affirmative Insurance Holdings, Inc. 6,333 109,561 American Equity Investment Life Holding Co. (a) 77,852 1,022,197 American Physicians Service Group, Inc. * 22,300 393,483 American Safety Insurance Holdings Ltd. * 76,900 1,465,714 Argonaut Group, Inc. (a)* 53,751 1,739,382 Delphi Financial Group, Inc., Class A 358,125 14,407,369
See financial notes. 54 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) FBL Financial Group, Inc., Class A 42,089 1,646,943 FPIC Insurance Group, Inc. (a)* 83,400 3,725,478 Great American Financial Resources, Inc. (a) 84,200 2,061,216 Hallmark Financial Services, Inc. * 6,562 79,006 Harleysville Group, Inc. (a) 22,319 725,144 Horace Mann Educators Corp. 402,421 8,269,752 IPC Holdings Ltd. (a) 307,576 8,873,568 Kansas City Life Insurance Co. (a) 38,701 1,741,545 LandAmerica Financial Group, Inc. (a) 88,698 6,555,669 Max Re Capital Ltd. 290,910 7,412,387 Meadowbrook Insurance Group, Inc. (a)* 26,950 296,180 Mercer Insurance Group, Inc. 16,687 331,904 National Western Life Insurance Co., Class A * 24,363 5,964,062 NYMAGIC, Inc. (a) 31,310 1,279,013 Ohio Casualty Corp. 950 28,453 Presidential Life Corp. 91,863 1,811,538 RTW, Inc. (a)* 36,000 294,120 SCPIE Holdings, Inc. (a)* 4,300 97,610 Selective Insurance Group, Inc. (a) 102,434 2,607,970 The Midland Co. (a) 5,166 219,142 The Phoenix Cos., Inc. 96,637 1,341,322 Unico American Corp. * 50,686 642,192 United America Indemnity Ltd., Class A * 222,190 5,154,808 Wesco Financial Corp. 3,500 1,610,000 Zenith National Insurance Corp. (a) 11,420 539,823 ----------------- 82,446,551 IT HARDWARE 6.1% - ------------------------------------------------------------------ AMIS Holdings, Inc. * 77,920 853,224 Amtech Systems, Inc. * 18,980 138,174 Avocent Corp. (a)* 99,343 2,679,281 Axcelis Technologies, Inc. (a)* 4 31 CTS Corp. (a) 23,900 330,298 Cymer, Inc. (a)* 40,468 1,681,445 Digi International, Inc. * 106,385 1,351,089 EMS Technologies, Inc. * 133,302 2,568,730 Espey Manufacturing & Electronics Corp. 21,600 424,440 Exar Corp. (a)* 248,117 3,285,069 Globecomm Systems, Inc. * 50,780 543,346 Harmonic, Inc. * 19,801 194,446 Imation Corp. 259,730 10,487,897 inTEST Corp. * 9,170 41,265 Kimball International, Inc., Class B 2,041 39,350 Lattice Semiconductor Corp. * 105,047 614,525 Merix Corp. (a)* 134,189 1,103,034 Merrimac Industries, Inc. * 33,600 323,904 MKS Instruments, Inc. (a)* 282,773 7,216,367 Oplink Communications, Inc. * 76,544 1,375,496 Orbital Sciences Corp. (a)* 40,870 765,904 Pericom Semiconductor Corp. * 80,495 787,241
NUMBER OF VALUE SECURITY SHARES ($) RF Micro Devices, Inc. (a)* 1,169,314 7,284,826 Rudolph Technologies, Inc. (a)* 158,589 2,765,792 Semitool, Inc. (a)* 168,552 2,191,176 SonicWALL, Inc. (a)* 36,309 303,543 Spectrum Control, Inc. * 95,516 1,174,847 Standard Microsystems Corp. (a)* 105,865 3,233,117 Symmetricom, Inc. * 6,220 51,626 Technitrol, Inc. (a) 308,000 8,066,520 TriQuint Semiconductor, Inc. * 23,060 115,300 ViaSat, Inc. (a)* 7,370 242,989 White Electronic Designs Corp. * 450 2,997 ----------------- 62,237,289 LAND & WATER TRANSPORTATION 1.0% - ------------------------------------------------------------------ B & H Ocean Carriers Ltd. * 10,410 190,503 GulfMark Offshore, Inc. (a)* 57,920 2,528,208 Hub Group, Inc., Class A * 119,247 3,456,971 International Shipholding Corp. * 2,310 42,412 Pacer International, Inc. (a) 43,160 1,162,730 Saia, Inc. (a)* 96 2,280 Trico Marine Services, Inc. (a)* 54,658 2,036,557 U.S. Xpress Enterprises, Inc., Class A (a)* 26,075 450,054 Werner Enterprises, Inc. (a) 400 7,268 ----------------- 9,876,983 MAINFRAME & MINICOMPUTERS 0.2% - ------------------------------------------------------------------ Omnicell, Inc. * 121,132 2,534,081 METAL PRODUCTS & MACHINERY 5.1% - ------------------------------------------------------------------ Allied Motion Technologies, Inc. * 44,926 287,077 Astec Industries, Inc. (a)* 20,930 842,432 Bonso Electronic International, Inc. 51,296 209,801 Chicago Rivet & Machine Co. 5,110 113,187 CompX International, Inc. (a) 6,610 106,619 Eastern Co. 1,350 36,693 Electro Scientific Industries, Inc. (a)* 200 3,848 EnPro Industries, Inc. (a)* 209,137 7,539,389 Evans & Sutherland Computer Corp. * 63,701 200,658 EXX, Inc., Class A * 2,200 6,930 Gerber Scientific, Inc. (a)* 141,900 1,505,559 Hardinge, Inc. 85,092 2,226,007 Kadant, Inc. (a)* 57,470 1,457,439 Material Sciences Corp. * 7,310 72,954 MFRI, Inc. * 857 15,889 Newport Corp. (a)* 13,686 224,040 NN, Inc. (a) 9,761 121,915 North American Galvanizing & Coatings, Inc. * 7,500 38,400 P & F Industries, Inc., Class A * 9,350 117,062 Q.E.P. Co., Inc. * 7,748 46,565 Regal Beloit Corp. (a) 239,960 11,129,345 Robbins & Myers, Inc. (a) 21,170 789,429 Rofin-Sinar Technologies, Inc. (a)* 5,702 337,444 RTI International Metals, Inc. (a)* 14,740 1,341,487 Sauer-Danfoss, Inc. (a) 2,760 83,076
See financial notes. Laudus Funds Annual Report 55 LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) SL Industries, Inc. * 35,980 541,499 Standex International Corp. 88,160 2,513,442 Tech/Ops Sevcon, Inc. 300 2,055 The Middleby Corp. (a)* 17,271 2,277,009 Twin Disc, Inc. 63,000 2,690,100 Varian Semiconductor Equipment Associates, Inc. (a)* 310 16,548 Veeco Instruments, Inc. (a)* 255,427 4,980,826 Velcro Industries N.V. 875 15,129 Watts Water Technologies, Inc., Class A 2,270 86,328 Woodward Governor Co. 253,722 10,445,735 ----------------- 52,421,916 MISCELLANEOUS FINANCE 1.7% - ------------------------------------------------------------------ Cohen & Steers, Inc. (a) 35,924 1,547,606 Knight Capital Group, Inc., Class A (a)* 703,373 11,141,428 SWS Group, Inc. (a) 184,828 4,585,583 ----------------- 17,274,617 OIL & COAL RESOURCES 0.5% - ------------------------------------------------------------------ Mariner Energy, Inc. (a)* 211,844 4,052,576 PrimeEnergy, Corp. (a)* 6,800 395,488 Rosetta Resources, Inc. (a)* 19,430 399,092 Teton Energy Corp. * 21,468 103,905 ----------------- 4,951,061 OIL DISTRIBUTION 1.0% - ------------------------------------------------------------------ Adams Resources & Energy, Inc. 32,070 1,175,686 Western Refining, Inc. (a) 229,511 8,955,519 ----------------- 10,131,205 OIL DRILLING & SERVICES 1.7% - ------------------------------------------------------------------ Atwood Oceanics, Inc. (a)* 75,560 4,434,616 Basic Energy Services, Inc. (a)* 119,820 2,791,806 Bronco Drilling Co., Inc. (a)* 16,301 270,108 Dawson Geophysical Co. (a)* 54,968 2,722,565 Global Industries Ltd. (a)* 114,390 2,092,193 Lufkin Industries, Inc. (a) 70,856 3,980,690 Oil States International, Inc. * 31,850 1,022,066 T-3 Energy Services, Inc * 2,535 51,004 W-H Energy Services, Inc. * 3,275 153,074 ----------------- 17,518,122 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.4% - ------------------------------------------------------------------ Baldwin Technology Co., Inc., Class A * 100,427 502,135 Interphase Corp. (a)* 18,740 209,138 Printronix, Inc. 51,505 713,344 STEC, Inc. (a)* 281,460 1,981,479 VASCO Data Security International, Inc. (a)* 16,452 293,997 ----------------- 3,700,093 PUBLISHING, BROADCASTING & CINEMA 1.1% - ------------------------------------------------------------------ Alloy, Inc. * 7,070 83,992 Champion Industries, Inc. 20,690 170,899 Consolidated Graphics, Inc. (a)* 620 45,911 Franklin Covey Co. (a)* 189,350 1,495,865 Media General, Inc., Class A (a) 112,430 4,290,329 Regent Communications, Inc. * 24,014 77,325
NUMBER OF VALUE SECURITY SHARES ($) Scholastic Corp. * 92,658 2,881,664 Source Interlink Cos., Inc. (a)* 260,720 1,749,431 Tufco Technologies, Inc. * 17,915 146,365 ----------------- 10,941,781 REAL ESTATE DEVELOPMENT 0.7% - ------------------------------------------------------------------ AMREP Corp. (a)* 29,256 2,260,026 Avatar Holdings, Inc. (a)* 36,534 2,609,989 ILX Resorts, Inc. 28,300 263,190 J.W. Mays, Inc. * 17,100 367,650 Stratus Properties, Inc. * 1,440 48,413 United Capital Corp. * 7,750 264,353 Wellsford Real Properties, Inc. * 27,053 211,419 ----------------- 6,025,040 REAL ESTATE INVESTMENT TRUSTS 6.3% - ------------------------------------------------------------------ American Campus Communities, Inc. (a) 6,160 186,586 Ashford Hospitality Trust (a) 479,346 5,723,391 Associated Estates Realty Corp. (a) 22,680 319,561 Digital Realty Trust, Inc. (a) 10,611 423,379 Eagle Hospitality Properties Trust, Inc. 41,223 459,636 Extra Space Storage, Inc. (a) 20,210 382,777 Franklin Street Properties Corp. (a) 9,910 190,074 Gladstone Commercial Corp. 3,560 71,378 Highland Hospitality Corp. (a) 461,320 8,211,496 Innkeepers USA Trust 8,910 145,055 LaSalle Hotel Properties (a) 160,671 7,448,708 LTC Properties, Inc. (a) 187,670 4,862,530 Medical Properties Trust, Inc. (a) 122,354 1,797,380 Mission West Properties, Inc. 113,700 1,644,102 Monmouth Capital Corp. 930 5,143 Monmouth Real Estate Investment Corp., Class A 28,300 243,946 National Health Investors, Inc. (a) 99,234 3,109,994 National Retail Properties, Inc. 262,856 6,358,487 One Liberty Properties, Inc. 17,900 408,299 Presidential Realty Corp., Class B 650 4,891 Republic Property Trust 65,310 750,412 Spirit Finance Corp. 355,773 5,301,018 Strategic Hotel & Resorts, Inc. (a) 176,464 4,035,732 Sunstone Hotel Investors, Inc. 301,683 8,223,879 Supertel Hospitality, Inc. 61,059 465,880 Winston Hotels, Inc. * 82,071 1,233,527 Winthrop Realty Trust 268,250 1,773,132 ----------------- 63,780,393 RESTAURANTS, HOTELS & THEATERS 3.3% - ------------------------------------------------------------------ Analogic Corp. 720 45,274 Ark Restaurants Corp. 29,872 1,011,765 Avalon Holdings Corp., Class A * 1,360 10,839 Benihana, Inc. * 10,604 299,563 Benihana, Inc., Class A * 66,609 1,887,699 Bob Evans Farms, Inc. (a) 192,590 7,116,200 Buffalo Wild Wings, Inc. (a)* 2,343 149,249 CBRL Group, Inc. (a) 102,782 4,758,807 CEC Entertainment, Inc. * 1,620 67,295 Churchill Downs, Inc. (a) 1,640 74,440
See financial notes. 56 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) Friendly Ice Cream Corp. (a)* 18,220 270,931 Frisch's Restaurants, Inc. 27,500 1,031,250 Interstate Hotels & Resorts, Inc. * 207,290 1,308,000 J. Alexander's Corp. 28,530 315,256 Live Nation, Inc. (a)* 171,850 3,791,011 Marcus Corp. 141,000 3,279,660 Max & Erma's Restaurants, Inc. * 4,223 38,007 Mexican Restaurants, Inc. * 4,060 38,935 Nathan's Famous, Inc. * 35,277 529,155 Red Lion Hotels Corp. * 570 7,091 Silverleaf Resorts, Inc. * 7,300 33,872 Speedway Motorsports, Inc. 2,050 79,438 Star Buffet, Inc. 8,323 69,497 The Steak n Shake Co. (a)* 75,730 1,269,992 Trump Entertainment Resorts, Inc. (a)* 14 253 Vail Resorts, Inc. (a)* 67,387 3,661,136 WMS Industries, Inc. * 68,113 2,672,754 ----------------- 33,817,369 RETAIL 5.0% - ------------------------------------------------------------------ 1-800-FLOWERS.COM, Inc., Class A (a)* 259,953 2,022,434 Books-A-Million, Inc. (a) 947 13,485 Cabela's, Inc. * 15,850 393,239 Cash America International, Inc. (a) 59,621 2,444,461 Charlotte Russe Holding, Inc. (a)* 86,398 2,494,310 Charming Shoppes, Inc. (a)* 12,036 155,866 Collegiate Pacific, Inc. (a) 45,230 352,794 Cost-U-Less, Inc. * 38,049 342,061 EZCORP, Inc., Class A (a)* 322,473 4,750,027 First Cash Financial Services, Inc. * 12,810 285,407 Gottschalks, Inc. (a)* 35,030 499,878 GSI Commerce, Inc. (a)* 12,767 288,407 Hastings Entertainment, Inc. * 81,590 497,699 Haverty Furniture Cos., Inc. (a) 113,134 1,583,876 Insight Enterprises, Inc. (a)* 186,747 3,357,711 Jennifer Convertibles, Inc. * 9,280 43,245 Longs Drug Stores Corp. (a) 116,293 6,005,371 Mothers Work, Inc. (a)* 3,434 113,803 Restoration Hardware, Inc. (a)* 260,753 1,710,540 Retail Ventures, Inc. (a)* 20,630 434,261 REX Stores Corp. * 51,540 843,194 Ruddick Corp. (a) 15,310 460,525 Rush Enterprises, Inc., Class A (a)* 88,253 1,695,340 Rush Enterprises, Inc., Class B * 12,100 219,131 Shoe Carnival, Inc. * 15,068 501,764 Spartan Stores, Inc. 168,244 4,508,939 Sport Chalet, Inc., Class A * 55,408 603,393 Sport Chalet, Inc., Class B * 4,499 48,567 Stage Stores, Inc. 115,824 2,699,857 Systemax, Inc. (a)* 37,588 704,023 The Bon-Ton Stores, Inc. (a) 51,900 2,918,856 The Great Atlantic & Pacific Tea Co., Inc. (a)* 153,520 5,093,794 Trans World Entertainment Corp. * 34,268 194,642
NUMBER OF VALUE SECURITY SHARES ($) Village Super Market, Inc., Class A (a) 17,092 1,632,115 Weis Markets, Inc. (a) 33,900 1,515,330 ----------------- 51,428,345 SOAPS & COSMETICS 0.0% - ------------------------------------------------------------------ Cascade International, Inc. (a)(b)(c)* 39,200 -- SOFTWARE 7.8% - ------------------------------------------------------------------ Allscripts Healthcare Solutions, Inc. (a)* 153,350 4,111,313 American Software, Inc., Class A (a) 221,600 1,783,880 Ansoft Corp. (a)* 91,080 2,881,771 Aspen Technology, Inc. (a)* 68,100 885,300 Black Box Corp. (a) 168,550 6,158,817 Blackbaud, Inc. (a) 1,116 27,253 Captaris, Inc. (a)* 181,333 1,049,918 CIBER, Inc. (a)* 98,220 772,991 Computer Task Group, Inc. * 61,378 276,815 CSP, Inc. (a)* 19,892 183,603 Edgewater Technology, Inc. (a)* 111,194 938,477 Goldleaf Financial Solutions, Inc. * 18,800 123,704 Harris Interactive, Inc. (a)* 213,300 1,286,199 HMS Holdings Corp. (a)* 926 20,279 Inforte Corp. * 27,245 94,540 Interwoven, Inc. * 2,240 37,856 Keynote Systems, Inc. * 940 12,615 Lawson Software, Inc. (a)* 324,231 2,623,029 Lightbridge, Inc. * 115,724 2,033,271 Mentor Graphics Corp. (a)* 674,800 11,026,232 Moldflow Corp. * 91,950 1,382,008 Move, Inc. * 92,170 510,622 Ness Technologies, Inc. (a)* 21,474 274,438 NetManage, Inc. * 13,856 72,744 NetScout Systems, Inc. (a)* 87,319 790,237 PC-Tel, Inc. * 148,770 1,512,991 Perficient, Inc. (a)* 61,622 1,218,883 Perot Systems Corp., Class A (a)* 715,100 12,778,837 Quality Systems, Inc. (a)* 28,200 1,128,000 Quest Software, Inc. (a)* 350 5,695 SAVVIS, Inc. (a)* 206,304 9,877,836 Smith Micro Software, Inc. (a)* 116,707 2,174,251 SPSS, Inc. (a)* 114,017 4,116,014 Sybase, Inc. (a)* 77,160 1,950,605 Syntel, Inc. (a) 15,749 545,703 Taleo Corp., Class A (a)* 114,580 1,899,736 Technology Solutions Co. * 2,559 19,986 TechTeam Global, Inc. * 21,882 273,525 The TriZetto Group, Inc. (a)* 72,436 1,449,444 THQ, Inc. * 17,056 583,145 TSR, Inc. 51,100 215,642 ----------------- 79,108,205 TEXTILES & APPAREL 3.7% - ------------------------------------------------------------------ Crocs, Inc. * 12,000 567,000 Culp, Inc. * 53,280 377,222 Cutter & Buck, Inc. 6,724 79,679 Deckers Outdoor Corp. * 49,850 3,540,347
See financial notes. Laudus Funds Annual Report 57 LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Decorator Industries, Inc. 710 4,970 G-III Apparel Group Ltd. (a)* 75,640 1,440,942 Guess?, Inc. 244,900 9,916,001 Hallwood Group, Inc. (a)* 1,331 139,090 Interface, Inc., Class A 350,800 5,609,292 LaCrosse Footwear, Inc. * 1,188 18,295 Skechers U.S.A., Inc., Class A * 71,390 2,396,562 Steven Madden Ltd. (a)* 145,039 4,235,139 Stride Rite Corp. (a) 80,480 1,238,587 The Gymboree Corp. * 147,350 5,904,315 UniFirst Corp. (a) 56,860 2,181,718 Weyco Group, Inc. 1,673 43,465 ----------------- 37,692,624 WHOLESALE 2.6% - ------------------------------------------------------------------ Agilysys, Inc. (a) 18,860 423,784 Applied Industrial Technologies, Inc. (a) 16,365 401,597 Bell Microproducts, Inc. (a)* 1,385 8,864 Brown Shoe Co., Inc. (a) 285,870 12,006,540 Coast Distribution System, Inc. 28,890 223,898 Delta Apparel, Inc. 43,940 764,556 Huttig Building Products, Inc. * 10,690 64,675 IKON Office Solutions, Inc. (a) 164,810 2,368,320 Industrial Distribution Group, Inc. * 97,800 1,221,522 Kaman Corp. 9,140 213,053 Lawson Products, Inc. (a) 1,208 45,759 Man Sang Holdings, Inc. * 200 1,200 NACCO Industries, Inc., Class A (a) 46,415 6,377,885 Nu Horizons Electronics Corp. (a)* 41,750 439,627 Nu Skin Enterprises, Inc., Class A (a) 290 4,791 Park-Ohio Holdings Corp. * 600 11,100 Richardson Electronics Ltd. 24,740 231,072 TESSCO Technologies, Inc. * 43,821 1,191,493 Traffix, Inc. 1,160 6,426 ----------------- 26,006,162 ----------------- TOTAL COMMON STOCK (COST $767,896,335) 1,010,613,511 ----------------- SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT 0.0% OF NET ASSETS REPURCHASE AGREEMENT 0.0% - ------------------------------------------------------------------ Fixed Income Clearing Corp. dated 03/30/07, due 04/02/07 at 5.00%, with a maturity value of $501,209 (fully collateralized by Federal National Mortgage Association with a value of $513,825.) 501,000 501,000 ----------------- TOTAL SHORT-TERM INVESTMENT (COST $501,000) 501,000 - ------------------------------------------------------------------ END OF INVESTMENTS. At 03/31/07 the tax basis cost of the fund's investments was $768,875,666 and the unrealized gains and losses were $257,598,744 and ($15,359,899), respectively, with a net unrealized appreciation of $242,238,845. NUMBER OF VALUE SECURITY SHARES ($) COLLATERAL INVESTED FOR SECURITIES ON LOAN 8.9% OF NET ASSETS State Street Navigator Security Lending Prime Portfolio 90,803,224 90,803,224 - ------------------------------------------------------------------ END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
* Non-income producing security. (a) All or a portion of this security is on loan. (b) Fair-valued by management. (c) Bankrupt security/delisted. See financial notes. 58 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 97.9% COMMON STOCK 107,410,263 127,031,334 --% RIGHTS -- -- - ----------------------------------------------------------------- 97.9% TOTAL INVESTMENTS 107,410,263 127,031,334 2.1% OTHER ASSETS AND LIABILITIES 2,777,720 - ----------------------------------------------------------------- 100.0% NET ASSETS 129,809,054
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 97.9% OF NET ASSETS AUSTRALIA 5.7% - ----------------------------------------------------------------- AIRLINES 0.1% Qantas Airways Ltd. 50,100 212,112 BANKS & CREDIT INSTITUTIONS 2.0% Australia and New Zealand Banking Group Ltd. 31,100 746,297 Commonwealth Bank of Australia 18,400 747,085 National Australia Bank Ltd. 26,100 851,181 St. George Bank Ltd. 2,100 59,385 Westpac Banking Corp. 6,800 144,798 --------------- 2,548,746 BASIC MINERALS & METALS 1.5% BHP Billiton Ltd. 22,600 547,438 BlueScope Steel Ltd. 25,300 214,595 Felix Resources Ltd. 8,500 34,291 Independence Group NL 6,100 24,448 Jabiru Metals Ltd. * 5,700 5,714 Jubilee Mines NL 6,700 94,584 Kagara Zinc Ltd. 3,200 13,245 Minara Resources Ltd. 20,200 120,264 Mincor Resources NL 7,600 18,818 OneSteel Ltd. 18,785 78,245 Perilya Ltd. 10,900 31,782 Rio Tinto Ltd. 7,800 496,428 Sally Malay Mining Ltd. * 9,600 30,488 Smorgon Steel Group Ltd. 22,680 37,376 Zinifex Ltd. 20,600 262,185 --------------- 2,009,901 BEER, LIQUOR, & TOBACCO 0.0% Foster's Group Ltd. 6,000 33,192 Lion Nathan Ltd. 2,500 17,879 --------------- 51,071 CELLULAR & WIRELESS 0.3% Telstra Corp., Ltd. 91,000 343,317 CONSTRUCTION & HOMEBUILDING 0.1% Leighton Holdings Ltd. 6,000 162,503 CONSTRUCTION MATERIALS 0.0% Adelaide Brighton Ltd. 5,800 16,069 INFORMATION & SERVICES 0.0% WorleyParsons Ltd. 2,000 44,567
NUMBER OF VALUE SECURITY SHARES ($) INSURANCE 0.3% Insurance Australia Group Ltd. 8,500 40,261 QBE Insurance Group Ltd. 6,900 175,743 Suncorp-Metway Ltd. 7,893 132,532 --------------- 348,536 MISCELLANEOUS FINANCE 0.1% ASX Ltd. 2,500 88,827 OIL DISTRIBUTION 0.0% Caltex Australia Ltd. 700 13,467 PUBLISHING, BROADCASTING & CINEMA 0.1% West Australian Newspapers Holdings Ltd. 6,100 77,013 REAL ESTATE DEVELOPMENT 0.2% Lend Lease Corp., Ltd. 13,700 221,190 REAL ESTATE INVESTMENT TRUSTS 0.2% Westfield Group 15,100 250,918 RESTAURANTS, HOTELS & THEATERS 0.2% Amalgamated Holdings Ltd. 2,575 13,520 TABCORP Holdings Ltd. 17,700 236,094 --------------- 249,614 RETAIL 0.5% Coles Group Ltd. 1,600 21,006 Goodman Fielder Ltd. 39,600 78,158 Woolworths Ltd. 23,800 522,646 --------------- 621,810 WHOLESALE 0.1% Sims Group Ltd. 5,300 99,904 --------------- 7,359,565 AUSTRIA 0.9% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.1% Boehler-Uddeholm AG 164 15,803 Voestalpine AG 1,212 87,944 --------------- 103,747 COMMUNICATIONS UTILITIES 0.4% Telekom Austria AG 20,000 502,548 FOREST PRODUCTS & PAPER 0.0% Mayr-Melnhof Karton AG 103 22,993 REAL ESTATE DEVELOPMENT 0.4% Conwert Immobilien Invest AG * 2,210 48,624 Immofinanz Immobilien Analagen AG * 28,000 450,300 --------------- 498,924 --------------- 1,128,212
See financial notes. Laudus Funds Annual Report 59 LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) BELGIUM 1.8% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 1.3% Fortis 36,400 1,663,599 INSTRUMENTS 0.1% Agfa Gevaert N.V. 8,000 181,099 RESTAURANTS, HOTELS & THEATERS 0.0% S.A. D'Ieteren N.V. 117 48,202 RETAIL 0.4% Delhaize Group 4,800 442,935 --------------- 2,335,835 CHINA 0.1% - ----------------------------------------------------------------- MISCELLANEOUS FINANCE 0.1% BOC Hong Kong (Holdings) Ltd. 32,000 77,431 DENMARK 0.9% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.7% Danske Bank A/S 19,477 902,914 BEER, LIQUOR, & TOBACCO 0.2% Carlsberg A/S 2,418 262,692 --------------- 1,165,606 FINLAND 1.0% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.2% Outokumpu Oyj 7,200 247,829 CHEMICALS & RUBBER 0.1% Kemira Oyj 8,967 205,225 FOREST PRODUCTS & PAPER 0.4% UPM-Kymmene Oyj 21,692 554,090 IT HARDWARE 0.3% Elcoteq Network Corp., Class A 1,600 16,873 Nokia Oyj 14,291 329,294 --------------- 346,167 --------------- 1,353,311 FRANCE 10.6% - ----------------------------------------------------------------- AIRLINES 0.3% Air France-KLM 8,400 384,202 AUTOS 1.2% PSA Peugeot Citroen 9,600 676,885 Renault S.A. 7,300 855,546 Societe Fonciere Financiere et de Participations (FFP) 270 74,252 --------------- 1,606,683 BANKS & CREDIT INSTITUTIONS 1.1% BNP Paribas 11,800 1,234,223 Societe Generale 1,000 172,909 --------------- 1,407,132 BASIC MINERALS & METALS 0.0% Nexans S.A. 280 37,259 CELLULAR & WIRELESS 1.1% Vivendi 36,000 1,467,221
NUMBER OF VALUE SECURITY SHARES ($) CHEMICALS & RUBBER 0.6% Compagnie Generale des Etablissements Michelin, Class B 6,600 729,717 COMMUNICATIONS UTILITIES 0.6% France Telecom S.A. 28,800 763,168 CONSTRUCTION MATERIALS 0.9% Ciments Francais S.A. 417 88,758 Compagnie de Saint-Gobain 10,400 1,021,092 --------------- 1,109,850 DRUGS & PHARMACEUTICALS 1.2% Sanofi-Aventis 18,566 1,615,505 INSURANCE 0.3% CNP Assurances 3,456 404,434 INTEGRATED OIL COMPANIES 0.5% Total S.A. 8,700 607,790 IT HARDWARE 0.5% Alcatel-Lucent 32,000 378,050 STMicroelectronics N.V. 12,423 239,209 --------------- 617,259 METAL PRODUCTS & MACHINERY 0.1% Valeo S.A. 3,200 188,235 MISCELLANEOUS FINANCE 1.0% Credit Agricole S.A. 24,800 969,363 Natixis 12,101 296,218 --------------- 1,265,581 PUBLISHING, BROADCASTING & CINEMA 0.0% Havas S.A. 1,726 9,984 REAL ESTATE DEVELOPMENT 0.0% Fonciere des Regions 66 12,409 Nexity 142 12,201 --------------- 24,610 RESTAURANTS, HOTELS & THEATERS 0.5% Club Mediterranee S.A. * 3,000 176,378 Pierre & Vacances 800 110,253 Sodexho Alliance S.A. 4,800 352,257 --------------- 638,888 SOFTWARE 0.2% Atos Origin S.A. * 2,217 149,250 Cap Gemini S.A. 900 68,502 --------------- 217,752 TEXTILES & APPAREL 0.5% Christian Dior S.A. 5,400 658,431 --------------- 13,753,701 GERMANY 7.2% - ----------------------------------------------------------------- AUTOS 1.6% DaimlerChrysler AG -- Reg'd 23,400 1,914,475 Volkswagen AG 1,105 165,835 --------------- 2,080,310 BASIC MINERALS & METALS 0.3% ThyssenKrupp AG 8,700 431,861
See financial notes. 60 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) CHEMICALS & RUBBER 2.0% BASF AG 5,000 562,635 Bayer AG 25,877 1,656,824 Lanxess * 6,000 310,414 --------------- 2,529,873 DRUGS & PHARMACEUTICALS 0.1% Altana AG 1,200 78,053 ELECTRIC UTILITIES 1.0% E.ON AG 9,846 1,340,374 GOVERNMENT AIRCRAFT & DEFENSE 0.0% Rheinmetall AG 129 12,042 INSURANCE 0.2% Allianz AG -- Reg'd 1,400 286,426 IT HARDWARE 0.5% Infineon Technologies AG * 41,000 638,478 METAL PRODUCTS & MACHINERY 0.2% Siemens AG -- Reg'd 2,800 299,880 MISCELLANEOUS FINANCE 1.3% Deutsche Bank AG -- Reg'd 12,500 1,683,167 --------------- 9,380,464 GREECE 0.4% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.2% Coca Cola Hellenic Bottling Co., S.A. 7,358 310,542 BANKS & CREDIT INSTITUTIONS 0.1% Bank of Greece 479 62,696 COMMUNICATIONS UTILITIES 0.1% Hellenic Telecommunications Organization S.A. (OTE) * 4,500 122,748 --------------- 495,986 HONG KONG 1.8% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.2% Hang Seng Bank Ltd. 15,600 221,616 BASIC MINERALS & METALS 0.0% China Oriental Group Co., Ltd. 110,000 36,356 COMMUNICATIONS UTILITIES 0.1% PCCW Ltd. 157,000 94,179 ELECTRIC UTILITIES 0.3% CLP Holdings Ltd. 54,500 398,093 Hongkong Electric Holdings Ltd. 5,500 28,200 --------------- 426,293 LAND & WATER TRANSPORTATION 0.0% Transport International Holdings Ltd. 400 2,171 MISCELLANEOUS FINANCE 0.2% Guoco Group Ltd. 10,000 140,569 Jardine Strategic Holdings Ltd. 11,000 141,247 --------------- 281,816 REAL ESTATE DEVELOPMENT 0.9% Cheung Kong (Holdings) Ltd. 24,000 303,414 Great Eagle Holdings Ltd. 14,000 47,305
NUMBER OF VALUE SECURITY SHARES ($) Hang Lung Group Ltd. 37,000 130,683 Hang Lung Properties Ltd. 78,000 216,547 Henderson Investment Ltd. 1,909 3,892 Henderson Land Development Co., Ltd. 28,000 163,265 Hopson Development Holdings Ltd. 12,000 30,007 Kerry Properties Ltd. 23,500 120,524 New World Development Co., Ltd. 3,000 6,775 Pacific Century Premium Developments Ltd. 115,000 36,347 Swire Pacific Ltd. 2,500 28,041 Wheelock & Co., Ltd. 61,000 136,840 Wheelock Properties (S) Ltd. 5,000 5,279 --------------- 1,228,919 RETAIL 0.1% Esprit Holdings Ltd. 6,500 76,167 --------------- 2,367,517 IRELAND 0.8% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% Kerry Group plc 2,342 65,463 BANKS & CREDIT INSTITUTIONS 0.7% Allied Irish Banks plc (AIB) 31,500 932,438 --------------- 997,901 ITALY 3.7% - ----------------------------------------------------------------- AUTOS 0.6% Fiat S.p.A. * 31,327 794,082 BANKS & CREDIT INSTITUTIONS 0.2% UniCredito Italiano S.p.A. 24,000 228,534 CHEMICALS & RUBBER 0.2% Pirelli & C. S.p.A. * 200,000 221,193 COMMUNICATIONS UTILITIES 0.1% Telecom Italia S.p.A. 30,000 85,714 CONSTRUCTION MATERIALS 0.2% Italcementi S.p.A. 7,252 217,792 Italmobiliare S.p.A. 743 86,034 --------------- 303,826 ELECTRIC UTILITIES 0.9% C.I.R. S.p.A. -- Compagnie Industriali Riunite 3,549 14,154 Edison S.p.A. 53,969 156,474 Enel S.p.A. 96,194 1,030,186 --------------- 1,200,814 FOREST PRODUCTS & PAPER 0.1% IFIL-Investments S.p.A. 17,323 169,778 GAS & OTHER PUBLIC UTILITIES 0.0% Iride S.p.A. 15,770 53,418 GOVERNMENT AIRCRAFT & DEFENSE 0.5% Finmeccanica S.p.A. 19,200 577,143 INTEGRATED OIL COMPANIES 0.6% Eni S.p.A. 24,500 797,277
See financial notes. Laudus Funds Annual Report 61 LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) METAL PRODUCTS & MACHINERY 0.1% Danieli S.p.A. -- Officine Meccanishe Danieli & C. 4,353 102,550 PUBLISHING, BROADCASTING & CINEMA 0.1% Mondadori (Arnoldo) Editore S.p.A. 16,000 167,376 REAL ESTATE DEVELOPMENT 0.1% Immobiliare Lombarda S.p.A. * 429,535 127,308 --------------- 4,829,013 JAPAN 21.9% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.0% Mikuni Coca-Cola Bottling Co., Ltd. 1,700 17,769 AIRLINES 0.0% Japan Airlines Corp. * 3,000 6,233 AUTOS 3.5% Fuji Heavy Industries Ltd. 40,000 207,164 Futaba Industrial Co., Ltd. 1,500 36,278 HI-LEX Corp. 400 6,556 Honda Motor Co., Ltd. 30,100 1,048,854 Kanto Auto Works Ltd. 3,700 46,904 Kawasaki Heavy Industries Ltd. 22,000 92,803 Mazda Motor Corp. 6,000 33,087 Mitsuba Corp. 3,000 23,447 Nissan Motor Co., Ltd. 77,200 824,758 Nissan Shatai Co., Ltd. 9,000 45,737 Suzuki Motor Corp. 10,900 282,087 Topre Corp. 2,600 23,650 Toyota Auto Body Co., Ltd. 5,700 107,069 Toyota Motor Corp. 22,400 1,434,516 Yamaha Motor Co., Ltd. 11,800 329,580 --------------- 4,542,490 BANKS & CREDIT INSTITUTIONS 0.6% Daishi Bank Ltd. 10,000 42,256 Kagoshima Bank Ltd. 2,000 14,535 Mizuho Financial Group, Inc. 74 475,352 Orient Corp. * 1,000 1,699 San-in Godo Bank Ltd. 3,000 28,343 Shiga Bank Ltd. 5,000 34,628 Takefuji Corp. 3,500 140,172 The Eighteenth Bank Ltd. 11,000 51,304 The Mie Bank Ltd. 7,000 34,572 --------------- 822,861 BASIC MINERALS & METALS 2.1% JFE Holdings, Inc. 10,900 643,613 Kobe Steel Ltd. 117,000 470,145 Maruichi Steel Tube Ltd. 3,900 120,946 Nakayama Steel Works Ltd. 5,000 19,218 Nippon Steel Corp. 118,000 828,613 Nisshin Steel Co., Ltd. 43,000 184,814 Osaka Steel Co., Ltd. 1,700 32,503 Sumitomo Electric Industries Ltd. 3,100 46,957 Sumitomo Metal Mining Co., Ltd. 14,000 269,191 Tokyo Steel Manufacturing Co., Ltd. 700 10,297 Yodogawa Steel Works Ltd. 8,000 49,202 --------------- 2,675,499
NUMBER OF VALUE SECURITY SHARES ($) BEER, LIQUOR, & TOBACCO 1.0% Asahi Breweries Ltd. 22,600 361,980 Japan Tobacco, Inc. 103 504,938 Kirin Brewery Co., Ltd. 28,000 404,164 --------------- 1,271,082 CELLULAR & WIRELESS 0.8% KDDI Corp. 98 779,596 NTT DoCoMo, Inc. 131 241,330 --------------- 1,020,926 CHEMICALS & RUBBER 1.5% Bridgestone Corp. 21,600 429,249 Dainippon Ink & Chemicals, Inc. 47,000 186,177 Kaneka Corp. 21,000 199,787 Mitsubishi Chemical Holdings Corp. 12,500 106,228 Mitsui Chemicals, Inc. 14,000 121,991 Sakai Chemical Industry Co., Ltd. 3,000 21,595 Sumitomo Chemical Co., Ltd. 48,000 361,718 Teijin Ltd. 51,000 286,642 Toagosei Co., Ltd. 14,000 58,075 Tosoh Corp. 36,000 185,427 --------------- 1,956,889 COMMUNICATIONS UTILITIES 0.6% Nippon Telegraph & Telephone Corp. (NTT) 150 792,359 Rakuten, Inc. 58 27,485 --------------- 819,844 CONSTRUCTION & HOMEBUILDING 0.0% Maeda Corp. 2,000 7,275 Nippo Corp. 1,000 7,755 --------------- 15,030 CONSTRUCTION MATERIALS 0.0% Asahi Glass Co., Ltd. 1,000 14,032 Maeda Road Construction Co., Ltd. 5,000 39,411 --------------- 53,443 CONSUMER DURABLES 0.8% Matsushita Electric Industrial Co., Ltd. 49,000 987,568 DRUGS & PHARMACEUTICALS 1.0% Astellas Pharma, Inc. 13,600 584,559 Cawachi Ltd. 1,300 35,161 Daiichi Sankyo Co., Ltd. 10,500 321,352 Dainippon Sumitomo Pharma Co., Ltd. 4,000 42,690 Kaken Pharmaceutical Co., Ltd. 5,000 40,679 Nippon Shinyaku Co., Ltd. 3,000 25,277 Ono Pharmaceutical Co., Ltd. 1,300 72,747 Taisho Pharmaceutical Co., Ltd. 9,000 164,930 Torii Pharmaceutical Co., Ltd. 1,200 20,242 --------------- 1,307,637 ELECTRIC UTILITIES 0.6% Hokkaido Electric Power Co., Inc. 9,300 246,742 Kyushu Electric Power Co., Inc. 13,400 380,880 The Chugoku Electric Power Co., Inc. 7,500 167,619 --------------- 795,241
See financial notes. 62 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) FINANCIAL INVESTMENTS 0.6% Mitsubishi UFJ Financial Group, Inc. 67 754,870 FURNITURE & HOUSEHOLD ITEMS 0.3% Sankyo Co., Ltd. 5,400 236,724 Sumitomo Bakelite Co., Ltd. 14,000 100,939 --------------- 337,663 GAS & OTHER PUBLIC UTILITIES 0.4% Osaka Gas Co., Ltd. 93,000 360,332 Tokyo Gas Co., Ltd. 19,000 105,603 --------------- 465,935 GOVERNMENT AIRCRAFT & DEFENSE 0.0% Mitsui Engineering & Shipbuilding Co., Ltd. 3,000 12,665 INFORMATION & SERVICES 0.0% Autobacs Seven Co., Ltd. 300 10,721 TKC Corp. 700 12,217 --------------- 22,938 INSTRUMENTS 0.0% Hitachi Medical Corp. 2,000 20,389 INSURANCE 0.9% Millea Holdings, Inc. 9,200 339,021 Mitsui Sumitomo Insurance Co., Ltd. 42,000 525,161 Nissay Dowa General Insurance Co., Ltd. 1,000 6,349 Sompo Japan Insurance, Inc. 28,000 347,733 --------------- 1,218,264 IT HARDWARE 0.5% Alps Electric Co., Ltd. 4,500 52,548 Brother Industries Ltd. 4,000 54,009 Dainippon Screen Mfg. Co., Ltd. 16,000 120,619 Japan Aviation Electronics Industry Ltd. 6,000 74,690 Seiko Epson Corp. 7,700 226,085 Sumitomo Wiring Systems Ltd. 2,000 45,408 Toshiba Tec Corp. 16,000 95,567 --------------- 668,926 LAND & WATER TRANSPORTATION 0.4% Nankai Electric Railway Co., Ltd. 1,000 3,366 Nippon Konpo Unyu Soko Co., Ltd. 4,000 55,877 Seino Transportation Co., Ltd. 12,000 113,079 West Japan Railway Co. 75 345,700 --------------- 518,022 METAL PRODUCTS & MACHINERY 1.0% Bosch Corp. 23,000 103,988 Fuji Machine Manufacturing Co., Ltd. 2,400 38,865 Heiwa Corp. 2,200 27,156 Hitachi Construction Machinery Co., Ltd. 2,300 61,955 Hitachi Ltd. 28,000 217,637 Mitsubishi Heavy Industries Ltd. 97,000 625,497 Sega Sammy Holdings, Inc. 6,400 149,174 Sekisui Jushi Corp. 3,000 23,589 Toyo Seikan Kaisha Ltd. 3,000 60,266 --------------- 1,308,127
NUMBER OF VALUE SECURITY SHARES ($) MISCELLANEOUS FINANCE 1.2% Daiwa Securities Group, Inc. 38,000 456,664 Mitsubishi UFJ Securities Co., Ltd. 28,000 318,107 Nikko Cordial Corp. 25,500 362,178 Okasan Holdings, Inc. 11,000 85,498 Shinko Securities Co., Ltd. 2,000 10,081 Shinsei Bank Ltd. 70,000 334,720 --------------- 1,567,248 OIL DISTRIBUTION 0.3% Cosmo Oil Co., Ltd. 13,000 54,270 Nippon Mining Holdings, Inc. 43,000 368,544 --------------- 422,814 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 1.1% Eizo Nanao Corp. 800 26,387 Fuji Photo Film Co., Ltd. 14,000 572,641 Konica Minolta Holdings, Inc. 28,000 366,846 NEC Corp. 72,000 384,833 Riso Kagaku Corp. 600 12,147 --------------- 1,362,854 PUBLISHING, BROADCASTING & CINEMA 0.6% Dai Nippon Printing Co., Ltd. 22,000 345,288 Fuji Television Network, Inc. 29 67,046 Hakuhodo DY Holdings, Inc. 1,310 91,459 Toppan Printing Co., Ltd. 29,000 302,074 --------------- 805,867 REAL ESTATE DEVELOPMENT 0.6% Hankyu Hanshin Holdings, Inc. 60,000 362,540 Iida Home Max 1,800 31,690 Sekisui House Ltd. 23,000 357,110 Towa Real Estate Development Co., Ltd. * 2,000 10,779 --------------- 762,119 RESTAURANTS, HOTELS & THEATERS 0.0% Fields Corp. 20 32,158 H.I.S. Co., Ltd. 700 20,086 --------------- 52,244 RETAIL 0.2% Aichi Toyota Motor Co., Ltd. 2,000 38,922 AOKI Holdings, Inc. 1,000 19,036 Aoyama Trading Co., Ltd. 4,100 129,830 Daiichikosho Co., Ltd. 2,800 31,592 --------------- 219,380 SOFTWARE 0.3% Fujitsu Business Systems Ltd. 200 3,105 Fujitsu Ltd. 56,000 371,554 --------------- 374,659
See financial notes. Laudus Funds Annual Report 63 LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) TEXTILES & APPAREL 0.1% Japan Wool Textile Co., Ltd. 3,000 26,218 Kurabo Industries Ltd. 9,000 24,925 Onward Kashiyama Co., Ltd. 8,000 110,967 Tokyo Style Co., Ltd. 1,000 10,931 --------------- 173,041 TRADING COMPANY 0.8% Mitsubishi Corp. 34,900 805,670 Sojitz Corp. 47,100 195,721 --------------- 1,001,391 WHOLESALE 0.1% Kamei Corp. 2,000 15,642 Ryosan Co., Ltd. 1,900 48,757 Trusco Nakayama Corp. 300 6,063 --------------- 70,462 --------------- 28,432,390 NETHERLANDS 3.7% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 1.3% CSM N.V. 2,474 88,499 Unilever N.V. 53,200 1,553,772 --------------- 1,642,271 BANKS & CREDIT INSTITUTIONS 0.4% ABN AMRO Holding N.V. 5,500 236,985 ING Groep N.V. 6,000 253,842 --------------- 490,827 BASIC MINERALS & METALS 0.0% Mittal Steel Co. N.V. 250 13,391 CHEMICALS & RUBBER 0.5% Akzo Nobel N.V. 9,321 708,014 FURNITURE & HOUSEHOLD ITEMS 0.0% Hunter Douglas N.V. 135 11,911 INFORMATION & SERVICES 1.1% Koninklijke (Royal) Philips Electronics N.V. 36,336 1,384,972 OIL & COAL RESOURCES 0.3% Koninklijke DSM N.V. 10,400 466,714 WHOLESALE 0.1% Buhrmann N.V. 6,000 80,587 Univar N.V. 316 17,658 --------------- 98,245 --------------- 4,816,345 NEW ZEALAND 0.0% - ----------------------------------------------------------------- AIRLINES 0.0% Air New Zealand Ltd. 21,500 35,884 NORWAY 0.3% - ----------------------------------------------------------------- INTEGRATED OIL COMPANIES 0.3% Statoil A.S.A. 16,100 434,711
NUMBER OF VALUE SECURITY SHARES ($) PORTUGAL 0.4% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.2% Banco Espirito Santo, S.A. (BES) Reg'd 16,000 305,802 ELECTRIC UTILITIES 0.2% EDP -- Energias de Portugal, S.A. 40,745 219,410 --------------- 525,212 SINGAPORE 1.0% - ----------------------------------------------------------------- AIRLINES 0.2% Singapore Airlines Ltd. 22,000 240,026 AUTOS 0.1% Jardine Cycle & Carriage Ltd. 13,000 101,576 CELLULAR & WIRELESS 0.0% MobileOne Ltd. 5,000 7,227 COMMERCIAL AIRCRAFT & COMPONENTS 0.1% Singapore Technologies Engineering Ltd. (ST Engg) 34,000 74,261 ELECTRIC UTILITIES 0.1% SembCorp Industries Ltd. 39,000 130,754 FINANCIAL INVESTMENTS 0.0% Kim Eng Holdings Ltd. 12,000 12,625 LAND & WATER TRANSPORTATION 0.0% K1 Ventures Ltd. * 112,000 24,318 MISCELLANEOUS FINANCE 0.3% DBS Group Holdings Ltd. 30,000 422,199 REAL ESTATE DEVELOPMENT 0.2% Fraser & Neave Ltd. 16,000 53,678 Guocoland Ltd. 24,000 66,467 Ho Bee Investment Ltd. 33,000 49,109 Wheelock Properties (S) Ltd. 24,000 51,081 Wing Tai Holdings Ltd. 32,000 66,770 --------------- 287,105 RESTAURANTS, HOTELS & THEATERS 0.0% Hotel Plaza Ltd. 12,000 18,242 --------------- 1,318,333 SPAIN 4.6% - ----------------------------------------------------------------- AIRLINES 0.2% Iberia Lineas Aereas de Espana S.A. 44,277 236,807 BANKS & CREDIT INSTITUTIONS 1.9% Banco Bilbao Vizcaya Argentaria S.A. 10,400 255,376 Banco Santander Central Hispano S.A. 119,000 2,124,401 --------------- 2,379,777 COMMUNICATIONS UTILITIES 1.5% Telefonica S.A. 89,100 1,973,099 INTEGRATED OIL COMPANIES 0.8% Repsol YPF S.A. 31,800 1,071,553
See financial notes. 64 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) RESTAURANTS, HOTELS & THEATERS 0.2% Sol Melia S.A. 11,512 277,123 --------------- 5,938,359 SWEDEN 2.1% - ----------------------------------------------------------------- AIRLINES 0.1% SAS AB * 6,702 123,399 AUTOS 0.9% Volvo AB 13,500 1,140,552 BASIC MINERALS & METALS 0.3% Boliden AB 16,817 371,442 CELLULAR & WIRELESS 0.7% TeliaSonera AB 102,000 884,910 COMMUNICATIONS UTILITIES 0.1% Tele2 AB, Class B 12,000 197,090 --------------- 2,717,393 SWITZERLAND 7.4% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 1.4% Nestle S.A. -- Reg'd 4,500 1,753,553 AIRLINES 0.0% Swissair Group (a) (b) 30 -- AUTOS 0.1% Rieter Holding AG -- Reg'd 360 179,774 BANKS & CREDIT INSTITUTIONS 0.2% Banque Cantonale Vaudoise (BCV) -- Reg'd 417 198,167 BASIC MINERALS & METALS 0.0% Georg Fischer AG -- Reg'd. * 65 47,029 CHEMICALS & RUBBER 0.4% Ciba Specialty Chemicals AG -- Reg'd 5,600 369,729 Clariant AG -- Reg'd * 8,690 149,476 --------------- 519,205 COMMUNICATIONS UTILITIES 0.0% Swisscom AG -- Reg'd 132 47,790 CONSTRUCTION MATERIALS 0.7% Holcim Ltd. -- Reg'd 8,600 865,303 DRUGS & PHARMACEUTICALS 1.2% Novartis AG -- Reg'd 15,600 871,510 Roche Holdings AG 4,000 710,545 --------------- 1,582,055 INSURANCE 1.5% Baloise Holding AG -- Reg'd 1,200 125,302 Swiss Life Holding -- Reg'd * 1,760 442,911 Zurich Financial Services AG -- Reg'd 4,800 1,388,044 --------------- 1,956,257 METAL PRODUCTS & MACHINERY 0.1% Bucher Industries AG -- Reg'd 840 113,441
NUMBER OF VALUE SECURITY SHARES ($) MISCELLANEOUS FINANCE 1.8% Credit Suisse Group -- Reg'd 4,181 300,985 UBS AG -- Reg'd 33,900 2,021,522 --------------- 2,322,507 RETAIL 0.0% Charles Vogele Holding AG * 107 11,740 --------------- 9,596,821 UNITED KINGDOM 21.6% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 1.3% Tate & Lyle plc 30,100 341,432 Unilever plc 43,199 1,304,613 --------------- 1,646,045 AUTOS 0.3% GKN plc 49,951 374,657 BANKS & CREDIT INSTITUTIONS 4.3% Barclays plc 20,800 294,939 HBOS plc 71,798 1,484,373 HSBC Holdings plc 61,200 1,071,688 Lloyds TSB Group plc 17,000 187,765 Royal Bank of Scotland Group plc 63,300 2,478,099 --------------- 5,516,864 BASIC MINERALS & METALS 1.7% Anglo American plc 29,400 1,552,536 Kazakhmys plc 20,561 475,671 Rio Tinto plc 3,200 182,732 --------------- 2,210,939 BEER, LIQUOR, & TOBACCO 1.2% Imperial Tobacco Group plc 23,000 1,031,574 Scottish & Newcastle plc 46,000 544,835 --------------- 1,576,409 CELLULAR & WIRELESS 0.8% Vodafone Group plc 406,000 1,085,588 CONSTRUCTION MATERIALS 0.0% Cookson Group plc 2,518 30,812 DRUGS & PHARMACEUTICALS 1.1% AstraZeneca plc 5,400 291,109 GlaxoSmithKline plc 42,000 1,159,335 --------------- 1,450,444 ELECTRIC UTILITIES 0.3% British Energy Group plc * 33,000 316,903 International Power plc 1,319 10,310 --------------- 327,213 FURNITURE & HOUSEHOLD ITEMS 0.4% Smiths Group plc 27,775 561,475 GAS & OTHER PUBLIC UTILITIES 0.1% United Utilities plc 4,665 69,506 GOVERNMENT AIRCRAFT & DEFENSE 0.8% BAE Systems plc 116,789 1,058,686
See financial notes. Laudus Funds Annual Report 65 LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) INSURANCE 2.8% Aviva plc 82,600 1,220,490 Brit Insurance Holdings plc 8,632 54,774 Friends Provident plc 105,000 398,199 Old Mutual plc 234,000 757,913 Prudential plc 87,000 1,229,355 --------------- 3,660,731 INTEGRATED OIL COMPANIES 3.8% BP plc 96,427 1,042,251 Royal Dutch Shell plc, Class A 67,600 2,248,983 Royal Dutch Shell plc, Class B 47,400 1,576,959 --------------- 4,868,193 MISCELLANEOUS FINANCE 0.9% Investec plc 22,253 288,469 Legal & General Group plc 288,000 904,000 --------------- 1,192,469 PUBLISHING, BROADCASTING & CINEMA 0.2% Trinity Mirror plc 17,257 180,290 WPP Group plc 5,099 77,422 --------------- 257,712 REAL ESTATE DEVELOPMENT 0.0% Enterprise Inns plc 3,057 40,293 RESTAURANTS, HOTELS & THEATERS 1.3% Compass Group plc 116,000 776,940 Greene King plc 2,686 58,301 Luminar plc 877 13,029 Millennium & Copthorne Hotel plc 8,198 109,804 Punch Taverns plc 14,800 363,438 Whitbread plc * 2,684 99,940 William Hill plc 25,200 315,724 --------------- 1,737,176 RETAIL 0.2% Tesco plc 23,000 201,288 SOFTWARE 0.1% LogicaCMG plc 29,901 104,844 --------------- 27,971,344 -------------- TOTAL COMMON STOCK (COST $107,410,263) 127,031,334 --------------
NUMBER OF VALUE SECURITY SHARES ($) RIGHTS 0.0% OF NET ASSETS AUSTRIA 0.0% - ----------------------------------------------------------------- Conwert Immobilien Invest AG * -- 567 ----------- -- TOTAL RIGHTS (COST $--) - ----------------------------------------------------------------- END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was $108,029,605, and the unrealized appreciation and depreciation were $20,615,086 and ($1,613,357), respectively, with a net unrealized appreciation of $19,001,729. At 03/31/07, the prices of certain foreign securities held by the fund aggregating $125,471,106 were adjusted from their closing market prices following the guidelines adopted by the fund's Board of Trustees.
AMOUNT AMOUNT OF OF UNREALIZED CURRENCY CURRENCY CURRENCY CURRENCY GAINS / EXPIRATION TO BE TO BE TO BE TO BE LOSSES DATE RECEIVED RECEIVED DELIVERED DELIVERED ($) FORWARD FOREIGN CURRENCY CONTRACT 1.2% OF NET ASSETS 04/04/2007 USD 1,533,625 JPY 180,891,000 (2,517)
* Non-income producing security. (a) Bankrupt security/delisted. (b) Fair-valued by Management. See financial notes. 66 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 95.7% COMMON STOCK 59,606,638 67,724,126 1.5% PREFERRED STOCK 940,867 1,045,029 --% RIGHTS -- 10,575 1.4% SHORT-TERM INVESTMENT 983,000 983,000 - ----------------------------------------------------------------- 98.6% TOTAL INVESTMENTS 61,530,505 69,762,730 1.4% OTHER ASSETS AND LIABILITIES 981,868 - ----------------------------------------------------------------- 100.0% NET ASSETS 70,744,598
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 95.7% OF NET ASSETS ARGENTINA 0.2% - ----------------------------------------------------------------- COMMUNICATIONS UTILITIES 0.2% Telecom Argentina S.A. ADR * 4,100 87,494 Telefonica de Argentina S.A. ADR 1,300 24,570 -------------- 112,064 -------------- 112,064 AUSTRALIA 5.4% - ----------------------------------------------------------------- AIRLINES 0.2% Qantas Airways Ltd. 35,400 149,876 BANKS & CREDIT INSTITUTIONS 0.9% St. George Bank Ltd. 5,800 164,016 Suncorp-Metway Ltd. 26,879 451,327 -------------- 615,343 BASIC MINERALS & METALS 0.8% BlueScope Steel Ltd. 24,700 209,505 Jubilee Mines NL 4,800 67,762 Minara Resources Ltd. 14,100 83,947 OneSteel Ltd. 5,100 21,243 Zinifex Ltd. 16,500 210,002 -------------- 592,459 BEER, LIQUOR, & TOBACCO 0.6% Foster's Group Ltd. 64,500 356,819 Lion Nathan Ltd. 9,100 65,078 -------------- 421,897 CHEMICALS & RUBBER 0.3% Orica Ltd. 10,600 217,018 CONSTRUCTION & HOMEBUILDING 0.2% Leighton Holdings Ltd. 5,000 135,419 CONSTRUCTION MATERIALS 0.3% Adelaide Brighton Ltd. 20,500 56,796 Boral Ltd. 23,000 153,121 -------------- 209,917 FOREST PRODUCTS & PAPER 0.0% PaperlinX Ltd. 1,500 5,049 FURNITURE & HOUSEHOLD ITEMS 0.3% Amcor Ltd. 29,300 178,635 INFORMATION & SERVICES 0.0% WorleyParsons Ltd. 700 15,599
NUMBER OF VALUE SECURITY SHARES ($) INSURANCE 0.4% Insurance Australia Group Ltd. 60,000 284,194 MISCELLANEOUS FINANCE 0.3% ASX Ltd. 6,300 223,843 OIL DISTRIBUTION 0.0% Caltex Australia Ltd. 900 17,315 PUBLISHING, BROADCASTING & CINEMA 0.1% West Australian Newspapers Holdings Ltd. 6,200 78,276 REAL ESTATE DEVELOPMENT 0.3% Lend Lease Corp., Ltd. 13,900 224,419 RESTAURANTS, HOTELS & THEATERS 0.2% TABCORP Holdings Ltd. 9,800 130,719 RETAIL 0.3% Coles Group Ltd. 10,500 137,850 Goodman Fielder Ltd. 19,500 38,487 -------------- 176,337 TEXTILES & APPAREL 0.1% Pacific Brands Ltd. 20,600 51,093 WHOLESALE 0.1% Sims Group Ltd. 5,300 99,904 -------------- 3,827,312 AUSTRIA 1.6% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.9% Boehler-Uddeholm AG 2,800 269,811 Voestalpine AG 4,800 348,291 -------------- 618,102 REAL ESTATE DEVELOPMENT 0.7% Conwert Immobilien Invest AG * 2,500 55,005 Immofinanz Immobilien Analagen AG * 20,000 321,643 Meinl European Land Ltd. * 4,800 133,562 -------------- 510,210 -------------- 1,128,312 BELGIUM 1.1% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.1% Umicore 400 71,398 INSTRUMENTS 0.3% Agfa Gevaert N.V. 8,000 181,099 REAL ESTATE DEVELOPMENT 0.1% Cofinimmo 400 83,377 RESTAURANTS, HOTELS & THEATERS 0.1% S.A. D'Ieteren N.V. 210 86,516 RETAIL 0.5% Delhaize Group 4,200 387,568 -------------- 809,958 BRAZIL 0.5% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.1% Companhia Siderurgica Nacional S.A. (CSN) 1,700 73,312 Sider Paulista Cos. 600 34,918 -------------- 108,230
See financial notes. Laudus Funds Annual Report 67 LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) BEER, LIQUOR, & TOBACCO 0.1% Souza Cruz S.A. 3,400 68,485 CHEMICALS & RUBBER 0.1% Copesul-Companhia Petroquinica do Sul 2,600 45,746 COMMERCIAL AIRCRAFT & COMPONENTS 0.1% Empresa Brasileira de Aeronautica S.A. (Embraer) 3,400 38,764 GAS & OTHER PUBLIC UTILITIES 0.1% Companhia de Saneamento Basico do Estado de Sao Paulo * 668,000 89,648 -------------- 350,873 CANADA 5.1% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.6% Saputo, Inc. 10,200 408,000 BANKS & CREDIT INSTITUTIONS 0.6% National Bank of Canada 7,500 405,890 BASIC MINERALS & METALS 1.1% Agnico-Eagle Mines Ltd. 2,060 72,854 Aur Resources, Inc. 1,050 22,100 Gerdau Ameristeel Corp. 2,700 31,993 Inmet Mining Corp. 4,400 242,010 IPSCO, Inc. 872 114,466 Sherritt International Corp. 3,940 56,788 Teck Cominco Ltd., Class B 2,950 205,670 -------------- 745,881 CHEMICALS & RUBBER 0.5% Methanex Corp. 7,904 176,154 Potash Corp. of Saskatchewan, Inc. 1,000 159,463 -------------- 335,617 COMMERCIAL AIRCRAFT & COMPONENTS 0.0% ACE Aviation Holdings, Inc., Class A * 1,300 34,299 COMMUNICATIONS UTILITIES 0.3% Telus Corp. 3,850 192,150 DRUGS & PHARMACEUTICALS 0.1% Biovail Corp. 3,980 87,046 ELECTRIC UTILITIES 0.5% ATCO Ltd., Class I 2,210 89,970 Canadian Utilities Ltd. 7,900 291,297 -------------- 381,267 GOVERNMENT AIRCRAFT & DEFENSE 0.1% Bombardier, Inc. * 16,100 64,986 INSURANCE 0.1% Industrial Alliance Insurance and Financial Services, Inc. 3,322 102,178 IT HARDWARE 0.4% Celestica, Inc. * 1,500 9,160 Nortel Networks Corp. * 11,899 285,184 -------------- 294,344 OIL & COAL RESOURCES 0.1% Talisman Energy, Inc. 5,000 87,743 OIL DRILLING & SERVICES 0.2% Trican Well Service Ltd. 5,450 107,867
NUMBER OF VALUE SECURITY SHARES ($) PUBLISHING, BROADCASTING & CINEMA 0.1% CanWest Global Communications Corp. * 2,500 23,950 Corus Entertainment, Inc., Class B 1,000 38,155 -------------- 62,105 REAL ESTATE DEVELOPMENT 0.2% MI Developments, Inc., Class A 4,300 160,752 RETAIL 0.2% Alimentation Couche-Tard, Inc., Class B 945 19,760 Sobeys, Inc. 3,920 123,932 -------------- 143,692 -------------- 3,613,817 CHILE 0.5% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% Embotelladora Andina S.A. Series A ADR 1,817 32,506 Embotelladora Andina S.A. Series B ADR 2,000 39,000 -------------- 71,506 AIRLINES 0.1% Lan Airlines S.A. ADR 1,527 105,210 BANKS & CREDIT INSTITUTIONS 0.1% Banco de Chile ADR 1,800 88,848 BEER, LIQUOR, & TOBACCO 0.1% Compania Cervecerias Unidas S.A. ADR 2,000 62,840 ELECTRIC UTILITIES 0.1% Empresa Nacional de Electricidad S.A. ADR 697 27,978 Enersis S.A. ADR 1,600 26,064 -------------- 54,042 INSURANCE 0.0% Administradora de Fondos de Pensiones Provida S.A. ADR 266 6,836 -------------- 389,282 CHINA 1.8% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.5% Aluminum Corp. of China Ltd., Class H 158,000 163,870 Angang Steel Co., Ltd., Class H 50,000 86,463 Jiangxi Copper Co., Ltd., Class H 81,000 97,254 -------------- 347,587 BEER, LIQUOR, & TOBACCO 0.1% Beijing Enterprise Holdings Ltd. 26,000 66,077 DRUGS & PHARMACEUTICALS 0.1% Shanghai Industrial Holdings Ltd. 31,000 71,329 ELECTRIC UTILITIES 0.1% Datang International Power Generation Co., Ltd., Class H 62,000 58,487 INSURANCE 0.1% PICC Property & Casualty Co., Ltd., Class H * 134,000 76,399
See financial notes. 68 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) LAND & WATER TRANSPORTATION 0.4% China COSCO Holdings Co., Ltd., Class H 117,000 114,561 China International Marine Containers (Group) Co., Ltd., Class B 40,800 89,448 Sinotrans Ltd., Class H 168,000 66,936 -------------- 270,945 OIL & COAL RESOURCES 0.1% Yanzhou Coal Mining Co., Ltd., Class H 108,000 103,570 REAL ESTATE DEVELOPMENT 0.1% Guangzhou Investment Co., Ltd. 250,000 61,189 SOFTWARE 0.1% Lenovo Group Ltd. 222,000 81,007 TEXTILES & APPAREL 0.1% Weiqiao Textile Co., Ltd., Class H 45,000 65,029 WHOLESALE 0.1% TPV Technology Ltd. 78,000 49,698 -------------- 1,251,317 DENMARK 1.5% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.3% Danisco A/S 3,000 235,352 BEER, LIQUOR, & TOBACCO 0.4% Carlsberg A/S, Class B 2,700 293,329 DRUGS & PHARMACEUTICALS 0.2% H. Lundbeck A/S 6,793 158,147 INSURANCE 0.3% Codan A/S (The Codan Group) 2,000 188,937 METAL PRODUCTS & MACHINERY 0.3% Vestas Wind Systems A/S * 3,600 200,681 -------------- 1,076,446 EGYPT 0.1% - ----------------------------------------------------------------- CELLULAR & WIRELESS 0.1% Egyptian Co. for Mobile Services 1,800 49,754 FINLAND 1.1% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.4% Outokumpu Oyj 8,000 275,366 FOREST PRODUCTS & PAPER 0.1% Stora Enso Oyj, Class R 2,394 41,580 UPM-Kymmene Oyj 600 15,326 -------------- 56,906 INSURANCE 0.2% Sampo Oyj, Class A 5,500 167,599 RETAIL 0.4% Kesko Oyj, Class B 5,100 273,094 -------------- 772,965 FRANCE 6.2% - ----------------------------------------------------------------- AIRLINES 0.5% Air France-KLM 8,000 365,907
NUMBER OF VALUE SECURITY SHARES ($) AUTOS 0.3% PSA Peugeot Citroen 2,400 169,221 Societe Fonciere Financiere et de Participations (FFP) 232 63,802 -------------- 233,023 BASIC MINERALS & METALS 0.2% Eramet 63 13,188 Nexans S.A. 1,000 133,068 -------------- 146,256 CHEMICALS & RUBBER 0.7% Compagnie Generale des Etablissements Michelin, Class B 4,200 464,365 COMMUNICATIONS UTILITIES 0.6% Eutelsat Communications * 4,800 108,810 Publicis Groupe 6,800 328,235 -------------- 437,045 CONSTRUCTION MATERIALS 0.3% Ciments Francais S.A. 1,120 238,390 GOVERNMENT AIRCRAFT & DEFENSE 0.4% Thales S.A. 4,400 256,555 INSURANCE 0.3% CNP Assurances 1,600 187,238 LAND & WATER TRANSPORTATION 0.0% Financiere de l'Odet 24 11,037 MISCELLANEOUS FINANCE 0.2% Natixis 5,400 132,186 PUBLISHING, BROADCASTING & CINEMA 0.6% Havas S.A. 24,000 138,834 Thomson 15,300 294,754 -------------- 433,588 REAL ESTATE DEVELOPMENT 0.4% Fonciere des Regions 900 169,209 Nexity 1,200 103,109 -------------- 272,318 RESTAURANTS, HOTELS & THEATERS 0.5% Sodexho Alliance S.A. 5,100 374,272 SOFTWARE 1.0% Atos Origin S.A. * 3,600 242,354 Cap Gemini S.A. 5,700 433,847 -------------- 676,201 TEXTILES & APPAREL 0.2% Christian Dior S.A. 1,306 159,243 -------------- 4,387,624 GERMANY 3.2% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.3% ThyssenKrupp AG 4,800 238,268 CHEMICALS & RUBBER 0.4% Lanxess * 5,100 263,852 COMMERCIAL AIRCRAFT & COMPONENTS 0.2% MTU Aero Engines Holding AG 2,349 141,178 ELECTRIC UTILITIES 0.0% MVV Energie AG 292 11,078
See financial notes. Laudus Funds Annual Report 69 LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) INFORMATION & SERVICES 0.4% TUI AG 11,802 291,766 INSURANCE 0.3% AMB Generali Holding AG 1,264 197,778 IT HARDWARE 0.6% Infineon Technologies AG * 27,000 420,461 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.2% Heidelberger Druckmaschinen AG 3,809 174,872 RETAIL 0.4% KarstadtQuelle AG * 7,000 257,414 WHOLESALE 0.4% GEA Group AG 10,677 296,444 -------------- 2,293,111 GREECE 0.6% - ----------------------------------------------------------------- COMMUNICATIONS UTILITIES 0.3% Hellenic Telecommunications Organization S.A. (OTE) * 6,000 163,664 ELECTRIC UTILITIES 0.3% Public Power Corp. S.A. (PPC) 8,497 208,229 OIL DISTRIBUTION 0.0% Hellenic Petroleum S.A. 1,462 20,759 -------------- 392,652 HONG KONG 3.1% - ----------------------------------------------------------------- AIRLINES 0.1% Cathay Pacific Airways Ltd. 31,000 78,985 ELECTRIC UTILITIES 0.3% CLP Holdings Ltd. 3,500 25,565 Hongkong Electric Holdings Ltd. 28,500 146,125 -------------- 171,690 GAS & OTHER PUBLIC UTILITIES 0.1% Guangdong Investment Ltd. 132,000 70,250 IT HARDWARE 0.1% Vtech Holdings Ltd. 9,000 64,760 LAND & WATER TRANSPORTATION 0.0% Transport International Holdings Ltd. 2,400 13,022 MISCELLANEOUS FINANCE 0.2% Guoco Group Ltd. 8,000 112,455 Jardine Strategic Holdings Ltd. 4,000 51,363 -------------- 163,818 REAL ESTATE DEVELOPMENT 2.1% Citic Pacific Ltd. 44,000 162,375 Great Eagle Holdings Ltd. 20,000 67,579 Hang Lung Group Ltd. 46,000 162,471 Hang Lung Properties Ltd. 47,000 130,483 Henderson Investment Ltd. 24,000 48,931 Henderson Land Development Co., Ltd. 31,000 180,758 Hongkong Land Holdings Ltd. 9,000 41,800 Hopewell Holdings Ltd. 29,000 112,929 Hopson Development Holdings Ltd. 30,000 75,019 Kerry Properties Ltd. 27,500 141,038 New World Development Co., Ltd. 76,000 171,646
NUMBER OF VALUE SECURITY SHARES ($) The Wharf Holdings Ltd. 26,000 96,089 Wheelock & Co., Ltd. 54,000 121,137 -------------- 1,512,255 RESTAURANTS, HOTELS & THEATERS 0.1% Hongkong & Shanghai Hotels Ltd. 25,500 40,217 Shangri-La Asia Ltd. 22,000 54,471 -------------- 94,688 RETAIL 0.1% Dairy Farm International Holdings Ltd. 6,300 24,570 Esprit Holdings Ltd. 2,500 29,295 -------------- 53,865 -------------- 2,223,333 HUNGARY 0.3% - ----------------------------------------------------------------- COMMUNICATIONS UTILITIES 0.3% Magyar Telekom Nyrt 42,000 211,137 INDIA 2.0% - ----------------------------------------------------------------- AUTOS 0.3% Maruti Udyog Ltd. 4,580 85,007 Tata Motors Ltd. 6,230 103,600 -------------- 188,607 BANKS & CREDIT INSTITUTIONS 0.1% Bajaj Auto Ltd. 780 43,433 Bank of India 12,220 46,831 -------------- 90,264 BASIC MINERALS & METALS 0.6% Hindalco Industries Ltd. 20,600 61,631 Hindustan Zinc Ltd. 6,280 81,277 National Aluminium Co., Ltd. 4,960 26,528 Steel Authority Of India Ltd. 34,990 91,962 Sterlite Industries (India) Ltd. 7,830 83,687 Tata Steel Ltd. 7,960 82,195 -------------- 427,280 CONSTRUCTION MATERIALS 0.2% ACC Ltd. 3,070 51,568 Grasim Industries Ltd. 1,270 61,263 Ultra Tech Cement Ltd. 2,230 39,221 -------------- 152,052 CONSUMER DURABLES 0.0% Hero Honda Motors Ltd. 600 9,555 FINANCIAL INVESTMENTS 0.2% Mahindra & Mahindra Ltd. 5,810 103,662 METAL PRODUCTS & MACHINERY 0.2% Bharat Heavy Electricals Ltd. 2,120 109,674 Larsen & Toubro Ltd. GDR 1,500 54,750 -------------- 164,424 OIL & COAL RESOURCES 0.0% Neyveli Lignite Corp., Ltd. * 1,470 1,689 OIL DISTRIBUTION 0.2% Gail India Ltd. 9,980 60,325 Mangalore Refinery & Petrochemicals Ltd. 74,800 58,175 -------------- 118,500
See financial notes. 70 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) RESTAURANTS, HOTELS & THEATERS 0.0% Indian Hotels Co., Ltd. 4,623 15,243 SOFTWARE 0.2% HCL Technologies Ltd. 10,260 68,522 Satyam Computer Services Ltd. 4,720 50,626 -------------- 119,148 -------------- 1,390,424 INDONESIA 0.7% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% PT Astra Agro Lestari Tbk. 41,000 56,414 BANKS & CREDIT INSTITUTIONS 0.2% PT Bank Central Asia Tbk. 199,000 110,733 BASIC MINERALS & METALS 0.1% PT International Nickel Indonesia Tbk. (INCO) 16,000 94,967 BEER, LIQUOR, & TOBACCO 0.1% PT Hanjaya Mandala Sampoerna Tbk 23,000 33,011 CONSTRUCTION MATERIALS 0.1% PT Bank Rakyat Indonesia 185,000 101,778 WHOLESALE 0.1% PT Astra International Tbk 47,000 67,676 -------------- 464,579 IRELAND 0.6% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.3% Kerry Group plc, Class A 9,000 251,566 PUBLISHING, BROADCASTING & CINEMA 0.3% Independent News & Media plc 45,000 204,949 -------------- 456,515 ISRAEL 1.3% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 1.1% Bank Hapoalim B.M. 55,000 263,650 Bank Leumi Le-Israel 70,000 251,290 First International Bank Of Israel Ltd. (FIBI) * 6,000 74,025 Israel Discount Bank, Series A * 44,000 92,469 Mizrahi Tefahot Bank Ltd. 9,000 66,602 -------------- 748,036 COMMUNICATIONS UTILITIES 0.1% Bezeq Israeli Telecommunication Corp., Ltd. 48,000 73,902 INSURANCE 0.1% Clal Insurance Enterprise Holdings Ltd. 3,000 85,144 -------------- 907,082 ITALY 3.7% - ----------------------------------------------------------------- AUTOS 0.4% Fiat S.p.A 10,000 253,482 BANKS & CREDIT INSTITUTIONS 0.1% Unione di Banche Italiane S.c.p.A 1,400 41,524 CHEMICALS & RUBBER 0.3% Pirelli & C. S.p.A. 211,934 234,392
NUMBER OF VALUE SECURITY SHARES ($) CONSTRUCTION MATERIALS 0.8% Buzzi Unicem S.p.A. 8,400 255,936 Italcementi S.p.A. 9,800 294,313 -------------- 550,249 CONSUMER DURABLES 0.0% Indesit Co. S.p.A. 1,000 21,319 ELECTRIC UTILITIES 0.6% ACEA S.p.A. 10,000 187,583 ASM S.p.A. 33,000 214,264 Cofide S.p.A. -- Compagnia Finanziaria De Benedetti 25,209 43,768 -------------- 445,615 FOREST PRODUCTS & PAPER 0.4% IFIL -- Investments S.p.A. 24,000 235,217 GAS & OTHER PUBLIC UTILITIES 0.1% Hera S.p.A. 2,801 11,817 Iride S.p.A. 21,000 71,134 -------------- 82,951 GOVERNMENT AIRCRAFT & DEFENSE 0.5% Finmeccanica S.p.A. 12,254 368,350 OIL DISTRIBUTION 0.2% ERG S.p.A. 5,513 151,703 PUBLISHING, BROADCASTING & CINEMA 0.2% Mediaset S.p.A. 12,000 131,063 REAL ESTATE DEVELOPMENT 0.1% Immobiliare Grande Distribuzione 8,000 44,423 Immobiliare Lombarda S.p.A. * 134,679 39,917 -------------- 84,340 -------------- 2,600,205 JAPAN 20.5% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.4% Nisshin Seifun Group, Inc. 20,500 208,229 Yamazaki Baking Co., Ltd. 7,000 63,651 -------------- 271,880 AUTOS 2.2% Daihatsu Motor Co., Ltd. 7,000 66,513 Fuji Heavy Industries Ltd. 59,000 305,566 Hino Motors Ltd. 44,000 233,869 Kawasaki Heavy Industries Ltd. 87,000 366,993 Koito Manufacturing Co., Ltd. 9,000 123,207 Mazda Motor Corp. 19,000 104,775 Yamaha Motor Co., Ltd. 11,900 332,373 -------------- 1,533,296 BANKS & CREDIT INSTITUTIONS 0.3% Higo Bank Ltd. 3,000 20,326 Orient Corp. * 24,000 40,783 Yamaguchi Financial Group, Inc. 13,000 174,440 -------------- 235,549 BASIC MINERALS & METALS 2.8% Fujikura Ltd. 27,000 189,576 Kobe Steel Ltd. 114,000 458,089 Maruichi Steel Tube Ltd. 4,400 136,451 Mitsui Mining & Smelting Co., Ltd. 16,000 87,510 Nisshin Steel Co., Ltd. 58,000 249,284
See financial notes. Laudus Funds Annual Report 71 LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Sumitomo Electric Industries Ltd. 21,500 325,668 Sumitomo Metal Mining Co., Ltd. 25,000 480,698 Tokyo Steel Manufacturing Co., Ltd. 5,400 79,436 -------------- 2,006,712 BEER, LIQUOR, & TOBACCO 0.5% Asahi Breweries Ltd. 22,800 365,184 CHEMICALS & RUBBER 2.2% Asahi Kasei Corp. 59,000 427,782 Daicel Chemical Industries Ltd. 4,000 27,213 Dainippon Ink & Chemicals, Inc. 16,000 63,380 Kaneka Corp. 30,000 285,410 Mitsui Chemicals, Inc. 39,000 339,832 Teijin Ltd. 64,000 359,708 Tosoh Corp. 11,000 56,658 -------------- 1,559,983 COMMUNICATIONS UTILITIES 0.0% Rakuten, Inc. 68 32,224 DRUGS & PHARMACEUTICALS 0.7% Ono Pharmaceutical Co., Ltd. 3,500 195,856 Taisho Pharmaceutical Co., Ltd. 16,000 293,209 -------------- 489,065 ELECTRIC UTILITIES 0.4% Hokkaido Electric Power Co., Inc. 2,300 61,022 Kyushu Electric Power Co., Inc. 5,300 150,647 The Chugoku Electric Power Co., Inc. 3,900 87,162 -------------- 298,831 FINANCIAL INVESTMENTS 0.2% Hitachi Capital Corp. 8,800 175,127 FURNITURE & HOUSEHOLD ITEMS 1.3% Kokuyo Co., Ltd. 10,500 138,781 Matsushita Electric Works Ltd. 10,000 114,264 NAMCO BANDAI Holdings, Inc. 20,400 317,219 Sankyo Co., Ltd. 7,100 311,248 Sumitomo Bakelite Co., Ltd. 8,000 57,679 -------------- 939,191 GAS & OTHER PUBLIC UTILITIES 0.5% Osaka Gas Co., Ltd. 89,000 344,833 GOVERNMENT AIRCRAFT & DEFENSE 0.2% Mitsui Engineering & Shipbuilding Co., Ltd. 32,000 135,095 INSTRUMENTS 0.1% Nikon Corp. 5,000 104,941 INSURANCE 0.7% Aioi Insurance Co., Ltd. 51,000 354,421 NIPPONKOA Insurance Co., Ltd. 15,000 128,188 -------------- 482,609 IT HARDWARE 1.1% Alps Electric Co., Ltd. 13,000 151,806 Brother Industries Ltd. 20,000 270,045 Seiko Epson Corp. 11,600 340,595 -------------- 762,446
NUMBER OF VALUE SECURITY SHARES ($) LAND & WATER TRANSPORTATION 0.8% Seino Transportation Co., Ltd. 18,000 169,618 West Japan Railway Co. 79 364,138 -------------- 533,756 MAINFRAME & MINICOMPUTERS 0.4% NEC Corp. 49,000 261,900 METAL PRODUCTS & MACHINERY 0.7% Bosch Corp. 33,000 149,200 Hitachi Construction Machinery Co., Ltd. 6,900 185,865 Sega Sammy Holdings, Inc. 3,200 74,587 Toyo Seikan Kaisha Ltd. 5,600 112,497 -------------- 522,149 MISCELLANEOUS FINANCE 1.0% Mitsubishi UFJ Securities Co., Ltd. 21,000 238,580 Okasan Holdings, Inc. 13,000 101,043 Shinko Securities Co., Ltd. 2,000 10,081 Shinsei Bank Ltd. 71,000 339,502 -------------- 689,206 OIL DISTRIBUTION 0.5% Nippon Mining Holdings, Inc. 37,500 321,405 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6% Konica Minolta Holdings, Inc. * 31,000 406,151 PUBLISHING, BROADCASTING & CINEMA 0.7% Dentsu, Inc. 27 75,280 Fuji Television Network, Inc. 4 9,248 Hakuhodo DY Holdings, Inc. 2,940 205,259 Toppan Printing Co., Ltd. 9,000 93,747 TV Asahi Corp. 73 146,456 -------------- 529,990 REAL ESTATE DEVELOPMENT 1.1% Daito Trust Construction Co., Ltd. 8,000 374,814 Hankyu Hanshin Holdings, Inc. 61,000 368,583 -------------- 743,397 RETAIL 0.5% Aoyama Trading Co., Ltd. 5,300 167,829 FamilyMart Co., Ltd. 7,600 210,976 -------------- 378,805 TEXTILES & APPAREL 0.3% Onward Kashiyama Co., Ltd. 14,000 194,191 TRADING COMPANY 0.3% Sojitz Corp. * 47,300 196,552 -------------- 14,514,468 MALAYSIA 1.2% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% PPB Group Berhad 20,000 36,982 BANKS & CREDIT INSTITUTIONS 0.1% Hong Leong Credit Berhad 11,000 18,275 RHB Capital Berhad 59,000 81,522 -------------- 99,797 CELLULAR & WIRELESS 0.2% Maxis Communications Berhad 35,000 120,346
See financial notes. 72 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) COMMUNICATIONS UTILITIES 0.1% Digi.com Berhad 16,000 86,586 ELECTRIC UTILITIES 0.1% Tenaga Nasional Berhad 24,000 79,150 FINANCIAL INVESTMENTS 0.1% Hong Leong Bank Berhad 27,000 46,794 OIL DISTRIBUTION 0.1% Petronas Dagangan Berhad 24,000 42,657 RESTAURANTS, HOTELS & THEATERS 0.2% Genting Berhad 16,000 183,877 WHOLESALE 0.2% Sime Darby Berhad 58,000 135,521 -------------- 831,710 MEXICO 1.1% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.2% Embotelladoras Arca S.A. 3,900 14,316 Grupo Bimbo S.A. de C.V., Series A 17,300 86,984 Grupo Continental S.A. 6,700 14,446 -------------- 115,746 BANKS & CREDIT INSTITUTIONS 0.2% Grupo Financiero Banorte S.A. de C.V., Class O 35,900 170,422 BASIC MINERALS & METALS 0.3% Grupo Mexico SAB de C.V., Series B 36,700 171,227 Industrias CH S.A., Series B * 12,400 52,338 -------------- 223,565 RETAIL 0.3% Controladora Comercial Mexicana S.A. de C.V. 21,300 60,186 Grupo Carso S.A. de C.V., Series A1 19,100 69,560 Organizacion Soriana S.A.B de C.V., Series B 16,200 48,432 -------------- 178,178 TEXTILES & APPAREL 0.1% Alfa S.A., Series A 14,000 103,355 -------------- 791,266 NETHERLANDS 1.5% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.2% CSM N.V. CVA 4,091 146,342 CHEMICALS & RUBBER 0.6% Koninklijke DSM N.V. 8,784 394,194 FURNITURE & HOUSEHOLD ITEMS 0.2% Hunter Douglas N.V. 2,000 176,463 INFORMATION & SERVICES 0.3% Vedior N.V. CVA 10,400 231,795 WHOLESALE 0.2% Buhrmann N.V. 10,000 134,312 -------------- 1,083,106 NEW ZEALAND 0.1% - ----------------------------------------------------------------- AIRLINES 0.1% Air New Zealand Ltd. 50,000 83,451
NUMBER OF VALUE SECURITY SHARES ($) PHILIPPINES 0.2% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% JG Summit Holding, Inc. 210,000 55,309 BANKS & CREDIT INSTITUTIONS 0.1% Bank of the Philippine Islands 8,000 10,832 Metropolitan Bank & Trust Co. 50,000 64,383 -------------- 75,215 -------------- 130,524 POLAND 1.6% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.3% Bank Handlowy w Warszawie S.A. 6,000 200,161 BASIC MINERALS & METALS 0.4% KGHM Polska Miedz S.A. 8,100 271,052 COMMUNICATIONS UTILITIES 0.3% Telekomunikacja Polska S.A. 31,500 257,761 OIL DISTRIBUTION 0.6% Grupa Lotos S.A. * 6,000 88,079 Polski Koncern Naftowy Orlen S.A. * 20,000 327,217 -------------- 415,296 -------------- 1,144,270 PORTUGAL 0.4% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.4% Banco Espirito Santo, S.A. (BES) Reg'd 16,000 305,802 RUSSIA 0.6% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.2% Mechel ADR 4,900 162,925 COMMUNICATIONS UTILITIES 0.4% Rostelecom ADR 5,000 259,450 OIL & COAL RESOURCES 0.0% Tatneft GDR 300 28,500 -------------- 450,875 SINGAPORE 1.0% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.0% Asia Food & Properties Ltd. 66,000 30,195 AIRLINES 0.2% Singapore Airlines Ltd. 11,000 120,013 AUTOS 0.1% Jardine Cycle & Carriage Ltd. 7,000 54,695 COMMERCIAL AIRCRAFT & COMPONENTS 0.1% Singapore Technologies Engineering Ltd. (ST Engg) 31,000 67,709 ELECTRIC UTILITIES 0.2% Sembcorp Industries Ltd. 43,000 144,164 INSURANCE 0.1% Great Eastern Holding Ltd. 4,000 51,793
See financial notes. Laudus Funds Annual Report 73 LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) REAL ESTATE DEVELOPMENT 0.3% Fraser & Neave Ltd. 41,000 137,551 Wheelock Properties (S) Ltd. 18,000 38,311 Wing Tai Holdings Ltd. 31,000 64,683 -------------- 240,545 -------------- 709,114 SOUTH AFRICA 2.0% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.4% Nedbank Group Ltd. 16,000 309,642 BASIC MINERALS & METALS 0.9% African Rainbow Minerals Ltd. * 12,000 169,670 AngloGold Ashanti Ltd. 1,500 66,799 Harmony Gold Mining Co., Ltd. * 10,558 146,603 Mittal Steel South Africa Ltd. 16,000 260,858 -------------- 643,930 COMMUNICATIONS UTILITIES 0.4% Telkom South Africa Ltd. 14,000 319,605 INSURANCE 0.3% Liberty Group Ltd. 14,000 158,865 Sanlam Ltd. 7,607 20,877 -------------- 179,742 -------------- 1,452,919 SOUTH KOREA 2.9% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% Lotte Confectionery Co., Ltd. 70 89,492 AUTOS 0.0% Hyundai Mobis 240 20,593 BANKS & CREDIT INSTITUTIONS 0.1% Woori Finance Holdings Co., Ltd. 3,760 90,937 BASIC MINERALS & METALS 0.1% Korea Zinc Co., Ltd. 730 77,502 BEER, LIQUOR, & TOBACCO 0.1% KT&G Corp. 990 64,605 CHEMICALS & RUBBER 0.1% Hanwha Chemical Corp. 2,690 41,747 COMMUNICATIONS UTILITIES 0.4% KT Corp. 2,700 120,985 KT Freetel Co., Ltd. 4,360 121,817 LS Cable Ltd. 1,310 57,117 -------------- 299,919 GOVERNMENT AIRCRAFT & DEFENSE 0.8% Hyundai Heavy Industries Co., Ltd. 1,410 280,555 Hyundai Mipo Dockyard Co., Ltd. 570 104,692 Samsung Heavy Industries Co., Ltd. 6,460 171,566 -------------- 556,813 METAL PRODUCTS & MACHINERY 0.3% Doosan Corp. * 1,150 93,817 Doosan Infracore Co., Ltd. 5,090 129,466 -------------- 223,283 OIL DISTRIBUTION 0.5% SK Corp. 3,760 368,259 RETAIL 0.2% Shinsegae Co., Ltd. 220 126,074
NUMBER OF VALUE SECURITY SHARES ($) WHOLESALE 0.2% Hanwha Corp. 2,430 98,579 -------------- 2,057,803 SPAIN 1.8% - ----------------------------------------------------------------- AIRLINES 0.4% Iberia Lineas Aereas de Espana S.A. 54,000 288,809 CONSTRUCTION MATERIALS 0.3% Cementos Portland Valderrivas, S.A. 1,200 181,421 GAS & OTHER PUBLIC UTILITIES 0.4% Enagas, S.A. 11,900 307,219 LAND & WATER TRANSPORTATION 0.2% Altadis, S.A. 2,700 173,169 RESTAURANTS, HOTELS & THEATERS 0.5% NH Hoteles, S.A. 5,600 128,968 Sol Melia, S.A. 8,100 194,987 -------------- 323,955 -------------- 1,274,573 SWEDEN 1.2% - ----------------------------------------------------------------- BASIC MINERALS & METALS 0.5% Boliden AB * 15,000 331,310 COMMUNICATIONS UTILITIES 0.4% Tele2 AB, Class B 18,000 295,635 GOVERNMENT AIRCRAFT & DEFENSE 0.2% Saab AB, Series B 6,000 161,925 REAL ESTATE DEVELOPMENT 0.1% Castellum AB 756 10,920 Kungsleden AB 1,165 20,959 -------------- 31,879 -------------- 820,749 SWITZERLAND 2.3% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.1% Verwaltungs-und Privat-Bank AG 280 68,750 BASIC MINERALS & METALS 0.2% Georg Fischer AG-Reg'd. * 160 115,763 CHEMICALS & RUBBER 0.3% Clariant AG-Reg'd * 13,000 223,612 DRUGS & PHARMACEUTICALS 0.3% Ciba Specialty Chemicals AG-Reg'd 3,300 217,876 ELECTRIC UTILITIES 0.0% Energiedienst Holding AG-Reg'd * 52 26,240 INFORMATION & SERVICES 0.1% Kuoni Reisen Holding AG-Reg'd * 136 81,582 INSURANCE 1.3% Baloise Holding AG-Reg'd 2,800 292,371 Helvetia Holding AG 540 231,947 Swiss Life Holding-Reg'd 1,440 362,382 -------------- 886,700 -------------- 1,620,523 TAIWAN 3.3% - ----------------------------------------------------------------- AUTOS 0.1% China Motor Corp. 48,600 42,642
See financial notes. 74 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND
NUMBER OF VALUE SECURITY SHARES ($) BANKS & CREDIT INSTITUTIONS 0.4% China Development Financial Holding Corp. 392,000 174,538 Hua Nan Financial Holdings Co., Ltd. 189,000 141,359 -------------- 315,897 BASIC MINERALS & METALS 0.1% Walsin Lihwa Corp. * 146,000 74,627 CELLULAR & WIRELESS 0.1% Taiwan Mobile Co., Ltd. 105,000 112,479 CHEMICALS & RUBBER 0.7% Formosa Chemicals & Fibre Corp. 109,730 210,053 Formosa Plastics Corp. 155,000 293,610 -------------- 503,663 COMMUNICATIONS UTILITIES 0.1% Far Eastern Textile Ltd. 3,000 2,574 Far EasTone Telecommunications Co., Ltd. 65,000 73,855 -------------- 76,429 CONSTRUCTION MATERIALS 0.1% Taiwan Cement Corp. 89,000 74,834 IT HARDWARE 0.9% Advanced Semiconductor Engineering, Inc. * 50,000 59,430 Lite-On Technology Corp. 437 563 Nan Ya Plastics Corp. 96,000 179,515 Nanya Technology Corp. 30,000 25,009 Powerchip Semiconductor Corp. 219,119 130,949 ProMOS Technologies, Inc. * 283,000 109,652 Vanguard International Semiconductor Corp. 71,379 60,045 Winbond Electronics Corp. * 190,000 67,301 -------------- 632,464 MAINFRAME & MINICOMPUTERS 0.2% Compal Electronics, Inc. 33,320 28,147 Inventec Co., Ltd. 24,000 19,112 Quanta Computer, Inc. 45,550 69,329 -------------- 116,588 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6% Acer, Inc. 82,460 157,915 Asustek Computer, Inc. 64,000 150,273 Wistron Corp. 59,000 89,249 -------------- 397,437 -------------- 2,347,060 THAILAND 0.8% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.5% Bangkok Bank Public Co., Ltd. 50,000 154,203 Kasikornbank Public Co., Ltd. 60,000 111,285 Krung Thai Bank Public Co., Ltd. 209,000 72,227 -------------- 337,715 CELLULAR & WIRELESS 0.1% Total Access Communication Public Co., Ltd. * 15,000 67,660 OIL & COAL RESOURCES 0.1% Banpu Public Co., Ltd. 7,000 40,035
NUMBER OF VALUE SECURITY SHARES ($) OIL DISTRIBUTION 0.1% PTT Exploration & Production Public Co., Ltd. 36,000 92,545 -------------- 537,955 TURKEY 0.9% - ----------------------------------------------------------------- AUTOS 0.4% Koc Holding A/S * 56,000 250,205 OIL DISTRIBUTION 0.5% Petrol Ofisi A/S 21,000 89,166 Tupras-Turkiye Petrol Rafinerileri A/S 12,000 266,057 -------------- 355,223 -------------- 605,428 UNITED KINGDOM 11.7% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.4% Tate & Lyle plc 23,709 268,937 AUTOS 0.4% GKN plc 38,000 285,018 BANKS & CREDIT INSTITUTIONS 0.0% Intermediate Capital Group plc 58 2,226 BASIC MINERALS & METALS 0.6% Antofagasta plc 24,078 245,758 Kazakhmys plc 8,887 205,597 -------------- 451,355 BEER, LIQUOR, & TOBACCO 0.5% Scottish & Newcastle plc 29,000 343,483 CELLULAR & WIRELESS 0.3% The Carphone Warehouse plc 38,000 208,129 COMMUNICATIONS UTILITIES 0.1% Cable & Wireless 12,000 39,484 COLT Telecom Group S.A. * 18,000 63,172 -------------- 102,656 CONSTRUCTION MATERIALS 0.0% Cookson Group plc 2,523 30,874 ELECTRIC UTILITIES 1.0% British Energy Group plc * 32,000 307,300 Internationall Power plc 49,000 382,993 -------------- 690,293 FOREST PRODUCTS & PAPER 0.1% DS Smith plc 18,000 79,101 FURNITURE & HOUSEHOLD ITEMS 0.5% Smiths Group plc 17,279 349,297 GAS & OTHER PUBLIC UTILITIES 0.6% Kelda Group plc 8,821 163,165 Northumbrian Water Group plc 20,000 122,400 United Utilities plc 11,200 166,875 -------------- 452,440 GOVERNMENT AIRCRAFT & DEFENSE 0.1% Vt Group plc 9,000 87,085 INFORMATION & SERVICES 0.4% Group 4 Securicor plc 63,000 249,361
See financial notes. Laudus Funds Annual Report 75 LAUDUS ROSENBERG INTERNATIONAL DISCOVERY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) INSURANCE 1.5% Amlin plc 32,000 178,208 Brit Insurance Holdings plc 16,000 101,527 Friends Provident plc 84,000 318,559 Old Mutual 48,000 155,469 Resolution plc 24,800 302,586 -------------- 1,056,349 MISCELLANEOUS FINANCE 0.6% Investec plc 19,200 248,893 Legal & General Gp 48,000 150,666 -------------- 399,559 PUBLISHING, BROADCASTING & CINEMA 0.3% Trinity Mirror plc 17,488 182,704 REAL ESTATE DEVELOPMENT 0.6% Enterprise Inns plc 24,579 323,963 Mapeley Ltd. 877 67,046 Minerva plc * 3,000 22,589 Shaftesbury plc 2,766 41,258 -------------- 454,856 REAL ESTATE INVESTMENT TRUSTS 0.6% Brixton plc 14,000 140,231 Hammerson plc 8,322 284,539 -------------- 424,770 RESTAURANTS, HOTELS & THEATERS 2.4% Compass Group 32,000 214,328 Greene King plc 10,800 234,418 Marston's plc 9,838 85,482 Millennium & Copthorne Hotel plc 14,501 194,226 Punch Taverns plc 13,000 319,237 Whitbread plc 9,300 346,290 William Hill plc 21,600 270,620 -------------- 1,664,601 RETAIL 0.2% Alliance Boots plc 3,656 73,909 Pendragon plc 30,000 71,387 -------------- 145,296 SOFTWARE 0.5% Dimension Data Holdings plc 70,583 69,689 Logicacmg 72,921 255,689 -------------- 325,378 -------------- 8,253,768 -------------- TOTAL COMMON STOCK (COST $59,606,638) 67,724,126 -------------- PREFERRED STOCK 1.5% OF NET ASSETS BRAZIL 1.4% - ----------------------------------------------------------------- Acesita S.A. 2,100 74,040 Aracruz Celulose S.A. 21,500 111,554 Brasil Telecom Participacoes S.A. * 1,575,000 14,142 Centrais Eletricas Brasileiras S.A. 1,368,000 29,746 Companhia Brasileira de Petroleo Ipiranga 1,400 17,090 Companhia Energetica de Minas Gerais 1,365,000 66,915
NUMBER OF VALUE SECURITY SHARES ($) Companhia Paranaense de Energia- Copel * 5,964,000 69,473 Elektro-Eletricidade e Servicos S.A. 3,812,000 23,775 Eletropaulo Metropolitana S.A. * 1,116,679 52,032 Gerdau S.A. 4,400 80,641 Tele Norte Leste Participacoes S.A. 11,000 152,429 Telemar Norte Leste S.A. 2,700 55,434 Usinas Siderurgicas de Minas Gerais S.A. 2,900 140,447 Votorantim Celulose e Papel S.A. * 3,800 69,681 -------------- 957,399 COLUMBIA 0.1% - ----------------------------------------------------------------- BanColombia S.A. ADR 3,100 85,839 UNITED KINGDOM 0.0% - ----------------------------------------------------------------- Rolls-Royce Group plc * 888,000 1,791 -------------- TOTAL PREFERRED STOCK (COST $940,867) 1,045,029 -------------- RIGHTS 0.0% OF NET ASSETS Citic Pacific Ltd. (a)* 2,200 -- Conwert Immobilien Invest AG * 2,500 -- Suncorp-Metway Ltd. * 2,466 10,575 -------------- TOTAL RIGHTS (COST $ -- ) 10,575 -------------- FACE SECURITY AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT 1.4% OF NET ASSETS REPURCHASE AGREEMENT 1.4% - ----------------------------------------------------------------- Fixed Income Clearing Corp. dated 03/30/07, due 04/02/07 at 5.00%, with a maturity value of $983,410 (fully collateralized by Federal Home Loan Bank with a value of $1,007,219) 983,000 983,000 -------------- TOTAL SHORT-TERM INVESTMENT (COST $983,000) 983,000 - ----------------------------------------------------------------- END OF INVESTMENTS.
At 03/31/07, the tax basis cost of the fund's investments was $61,931,534 and the unrealized appreciation and depreciation was $9,055,176 and ($1,223,980), respectively, with a net unrealized appreciation of $7,831,196. At 03/31/07, the prices of certain foreign securities held by the fund aggregating $61,619,946 were adjusted from their closing market prices following the guidelines adopted by the fund's Board of Trustees. * Non-income producing security. (a) Fair-valued by Management. ADR -- American Depositary Receipt CVA -- Dutch Certificate GDR -- Global Depositary Receipt See financial notes. 76 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 96.8% COMMON STOCK 1,528,627,990 1,869,932,546 0.1% PREFERRED STOCK 1,621,605 2,433,143 0.1% RIGHTS -- 1,033,254 --% WARRANTS -- 39,371 1.7% SHORT-TERM INVESTMENT 33,108,000 33,108,000 - ----------------------------------------------------------------- 98.7% TOTAL INVESTMENTS 1,563,357,595 1,906,546,314 7.6% COLLATERAL INVESTED FOR SECURITIES ON LOAN 146,492,602 146,492,602 (6.3)% OTHER ASSETS AND LIABILITIES (122,047,248) - ----------------------------------------------------------------- 100.0% NET ASSETS 1,930,991,668
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 96.8% OF NET ASSETS AUSTRALIA 4.3% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.2% ABB Grain Ltd. 269,671 1,683,906 Forest Enterprises Australia Ltd. 291,389 173,221 Futuris Corp., Ltd. 749,505 1,309,016 Ridley Corp., Ltd. 914,900 834,862 ----------------- 4,001,005 BANKS & CREDIT INSTITUTIONS 0.0% Bendigo Bank Ltd. 53,732 738,079 BASIC MINERALS & METALS 1.6% Ausdrill Ltd. 556,300 897,411 BlueScope Steel Ltd. 25,300 214,595 Consolidated Rutile Ltd. 374,075 207,295 Equigold NL 502,059 663,294 Felix Resources Ltd. 351,965 1,419,919 Independence Group NL 362,364 1,452,341 Jabiru Metals Ltd. * 641,876 643,429 Jubilee Mines NL 236,600 3,340,096 Macmahon Holdings Ltd. 1,699,900 1,167,717 Minara Resources Ltd. 540,059 3,215,327 Mincor Resources NL 872,984 2,161,607 Onesteel Ltd. 564,800 2,352,561 Perilya Ltd. 534,800 1,559,359 Portman Ltd. * 106,301 423,304 Sally Malay Mining Ltd. * 585,881 1,860,672 Smorgon Steel Group Ltd. 1,422,508 2,344,259 Sons Of Gwalia Ltd. (a)(b)(c)* 58,024 -- Straits Resources Ltd. 440,822 1,332,798 Zinifex Ltd. 413,900 5,267,874 ----------------- 30,523,858 CHEMICALS & RUBBER 0.2% Incitec Pivot Ltd. 79,900 3,192,598 CONSTRUCTION & HOMEBUILDING 0.1% Leighton Holdings Ltd. 1,800 48,751 Sunland Group Ltd. 643,700 1,746,901 ----------------- 1,795,652 CONSTRUCTION MATERIALS 0.1% Adelaide Brighton Ltd. 670,150 1,856,685
NUMBER OF VALUE SECURITY SHARES ($) FINANCIAL INVESTMENTS 0.0% National Hire Group Ltd. 72,200 93,396 FOREST PRODUCTS & PAPER 0.2% PaperlinX Ltd. 1,123,870 3,782,971 GAS & OTHER PUBLIC UTILITIES 0.1% Hastings Diversified Utilities Fund 49,400 129,060 Transpacific Industries Group Ltd. 243,440 2,118,698 ----------------- 2,247,758 GOVERNMENT AIRCRAFT & DEFENSE 0.0% Austal Ltd. 4,900 12,482 INFORMATION & SERVICES 0.2% Coffey International Ltd. 25,700 81,375 Credit Corp Group Ltd. 3,800 31,442 Monadelphous Group Ltd. 153,684 1,319,547 Programmed Maintenance Services Ltd. 8,200 34,159 WorleyParsons Ltd. 120,300 2,680,723 ----------------- 4,147,246 LAND & WATER TRANSPORTATION 0.0% K & S Corp., Ltd. 4,444 13,941 MISCELLANEOUS FINANCE 0.1% IOOF Holdings Ltd. 224,900 1,811,517 OIL & COAL RESOURCES 0.0% New Hope Corp., Ltd. 480,937 594,457 PUBLISHING, BROADCASTING & CINEMA 0.3% Austereo Group Ltd. 664,205 1,100,235 Seven Network Ltd. 71,500 659,801 Village Roadshow Ltd. 111,739 298,016 West Australian Newspapers Holdings Ltd. 327,870 4,139,384 ----------------- 6,197,436 REAL ESTATE DEVELOPMENT 0.3% Lend Lease Corp., Ltd. 289,500 4,674,055 Port Bouvard Ltd. 103,200 212,546 ----------------- 4,886,601 RESTAURANTS, HOTELS & THEATERS 0.0% Amalgamated Holdings Ltd. 118,887 624,192 RETAIL 0.3% David Jones Ltd. 560,500 2,059,695 Goodman Fielder Ltd. 1,161,814 2,293,046 Just Group Ltd. 277,628 934,285 Specialty Fashion Group Ltd. 60,318 95,298 ----------------- 5,382,324 SOFTWARE 0.1% HPAL Ltd. 325,379 509,877 Iress Market Technology Ltd. 158,276 1,036,201 Oakton Ltd. 47,825 171,898 UXC Ltd. 604,692 845,014 ----------------- 2,562,990 TEXTILES & APPAREL 0.2% Pacific Brands Ltd. 1,157,300 2,870,386
See financial notes. Laudus Funds Annual Report 77 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) WHOLESALE 0.3% Alesco Corp., Ltd. 27,468 277,339 Crane Group Ltd. 108,400 1,436,308 Housewares International Ltd. * 3,353 7,292 Sims Group Ltd. 202,873 3,824,129 ----------------- 5,545,068 ----------------- 82,880,642 AUSTRIA 2.0% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.0% Agrana Beteiligungs AG 2,589 261,187 AIRLINES 0.0% Austrian Airlines/ Osterreichische Luftverkehrs AG * 11,918 172,316 BASIC MINERALS & METALS 1.3% Boehler-uddeholm Ag 118,181 11,388,047 Voestalpine AG (a) 171,519 12,445,533 ----------------- 23,833,580 COMMUNICATIONS UTILITIES 0.1% Telekom Austria AG 66,400 1,668,459 FOREST PRODUCTS & PAPER 0.1% Mayr-Melnhof Karton AG 5,583 1,246,342 REAL ESTATE DEVELOPMENT 0.5% Conwert Immobilien Invest AG * 66,243 1,457,464 Immofinanz Immobilien Analagen AG * 540,000 8,684,363 ----------------- 10,141,827 SOFTWARE 0.0% Brain Force Holding AG 4,740 21,362 S&T System Integration & Technology Distribution AG * 4,341 330,539 ----------------- 351,901 TEXTILES & APPAREL 0.0% Linz Textil Holding AG * 158 35,881 Wolford AG * 2,744 137,310 ----------------- 173,191 WHOLESALE 0.0% Ottakringer Brauerei AG 564 64,444 ----------------- 37,913,247 BELGIUM 1.5% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.0% Sipef N.V. 69 24,397 BASIC MINERALS & METALS 0.1% Bekaert N.V. 6,680 911,818 CHEMICALS & RUBBER 0.2% Solvay Sa 4,258 656,577 Tessenderlo Chemie N.V. 66,754 3,271,856 ----------------- 3,928,433
NUMBER OF VALUE SECURITY SHARES ($) COMMERCIAL AIRCRAFT & COMPONENTS 0.0% Societe Anonyme Belge de Constructions Aeronautques (SABCA) 681 18,194 FINANCIAL INVESTMENTS 0.0% Econocom Group 61,677 659,130 INSTRUMENTS 0.4% Agfa Gevaert N.V. 265,000 5,998,909 Ion Bearn Applications * 39,216 1,144,144 ----------------- 7,143,053 METAL PRODUCTS & MACHINERY 0.0% Jensen Group N.V. * 31,418 255,140 REAL ESTATE DEVELOPMENT 0.3% Cofinimmo 22,600 4,710,782 Compagnie Immobiliere de Belgique S.A. 2,428 154,145 Intervest Offices 7,416 318,723 Wereldhave Belgium 35 3,038 ----------------- 5,186,688 RESTAURANTS, HOTELS & THEATERS 0.2% S.A. D'Ieteren N.V. 8,310 3,423,581 RETAIL 0.3% Brantano Group N.V. 4,261 200,929 Delhaize Group 69,956 6,455,404 ----------------- 6,656,333 SOFTWARE 0.0% Dolmen Computer Applications N.V. 9,172 147,858 WHOLESALE 0.0% SAPEC S.A. 2,737 363,949 ----------------- 28,718,574 CANADA 5.7% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Saputo, Inc. 50,440 2,017,600 AIRLINES 0.1% ACE Aviation Holdings, Inc., Class A * 72,300 1,907,542 Transat A.T., Inc., Class A 17,300 528,066 ----------------- 2,435,608 BANKS & CREDIT INSTITUTIONS 0.1% Laurentian Bank of Canada 60,408 1,747,620 BASIC MINERALS & METALS 1.6% Agnico-Eagle Mines Ltd. 44,060 1,558,224 Algoma Steel, Inc. * 82,100 3,716,367 Aur Resources, Inc. 210,400 4,428,514 FNX Mining Co., Inc. * 100,442 2,201,111 Gerdau Ameristeel Corp. 175,260 2,076,706 Inmet Mining Corp. 136,100 7,485,795 IPSCO, Inc. 26,574 3,488,341 Northgate Minerals Corp. * 70,600 248,889 Sherritt International Corp. 323,821 4,667,286 Teck Cominco Ltd., Class B 38 2,649 Yamana Gold, Inc. 108,493 1,568,426 ----------------- 31,442,308
See financial notes. 78 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) BEER, LIQUOR, & TOBACCO 0.0% Rothmans, Inc. 50 890 BIOTECHNOLOGY 0.1% QLT, Inc. * 203,143 1,580,099 CHEMICALS & RUBBER 0.2% Agrium, Inc. 400 15,366 Methanex Corp. 185,503 4,134,250 ----------------- 4,149,616 COMMUNICATIONS UTILITIES 0.1% Cogeco Cable, Inc. 24,130 864,249 DRUGS & PHARMACEUTICALS 0.1% Angiotech Pharmaceuticals, Inc. * 237,913 1,283,844 Axcan Pharma, Inc. * 57,000 944,487 Patheon, Inc. * 8,375 34,095 ----------------- 2,262,426 ELECTRIC UTILITIES 0.3% ATCO Ltd., Class I 158,900 6,468,861 FOREST PRODUCTS & PAPER 0.1% Canfor Pulp Income Fund 74 912 Cascades, Inc. 137,280 1,385,285 Intertape Polymer Group, Inc. * 133,100 547,618 ----------------- 1,933,815 FURNITURE & HOUSEHOLD ITEMS 0.0% Dorel Industries, Inc., Class B 5,500 178,411 GAS & OTHER PUBLIC UTILITIES 0.0% Newalta Income Fund 28,500 639,121 HEALTH CARE & HOSPITAL 0.0% MDS, Inc. 3,010 56,967 INFORMATION & SERVICES 0.1% FirstService Corp. * 82,978 2,285,579 INSURANCE 0.2% Industrial Alliance Insurance and Financial Services, Inc. 137,289 4,222,722 Kingsway Financial Services, Inc. 12,190 228,173 Northbridge Financial Corp. 1,700 48,210 ----------------- 4,499,105 IT HARDWARE 0.1% Celestica, Inc. * 177,550 1,084,216 METAL PRODUCTS & MACHINERY 0.3% Groupe Laperriere & Verreault, Inc., Class A * 62,361 1,593,460 Husky Injection Molding Systems Ltd. 45,360 302,531 Linamar Corp. 197,584 2,702,340 Martinrea International, Inc. * 101,170 1,301,320 ----------------- 5,899,651 MISCELLANEOUS FINANCE 0.3% Canaccord Capital, Inc. 123,941 2,374,686 Dundee Corp., Class A * 35,770 1,652,329 Dundee Wealth Management, Inc. 135,290 1,857,381 ----------------- 5,884,396
NUMBER OF VALUE SECURITY SHARES ($) OIL & COAL RESOURCES 0.2% Canetic Resources Trust 204,412 2,645,228 OIL DRILLING & SERVICES 0.5% Flint Energy Services Ltd. * 94,071 2,036,236 Real Resources, Inc. * 60,962 516,949 Tesco Corp. * 85,451 2,274,499 Trican Well Service Ltd. 220,400 4,362,183 ----------------- 9,189,867 PUBLISHING, BROADCASTING & CINEMA 0.5% Astral Media, Inc. 940 32,731 CanWest Global Communications Corp. * 160,514 1,537,709 Corus Entertainment, Inc., Class B 119,000 4,540,450 Torstar Corp., Class B 4,283 73,121 Transcontinental, Inc., Class A 215,158 3,982,613 ----------------- 10,166,624 REAL ESTATE DEVELOPMENT 0.0% BPO Properties Ltd. 2,929 175,029 MI Developments, Inc., Class A 900 33,646 ----------------- 208,675 REAL ESTATE INVESTMENT TRUSTS 0.1% Canadian Real Estate Investment Trust 28,290 759,627 Dundee Real Estate Investment Trust 53,483 1,839,130 ----------------- 2,598,757 RETAIL 0.3% Alimentation Couche-Tard, Inc., Class B 10 209 Empire Co., Ltd., Class A 22,500 781,507 Leon's Furniture Ltd. 43,000 1,862,278 Sobeys, Inc. 92,103 2,911,875 ----------------- 5,555,869 SOAPS & COSMETICS 0.1% CCL Industries, Inc., Class B 60,620 1,950,657 SOFTWARE 0.2% CGI Group, Inc. * 20,140 174,099 Open Text Corp. * 148,200 3,297,755 ----------------- 3,471,854 ----------------- 111,218,069 CHINA 0.5% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.0% Industrial and Commercial Bank of China (Asia) Ltd. 8,000 17,481 BASIC MINERALS & METALS 0.0% Jiangxi Copper Co., Ltd., Class H 18,000 21,612 DRUGS & PHARMACEUTICALS 0.1% Shanghai Industrial Holdings Ltd. 692,000 1,592,254 Tong Ren Tang Technologies Co., Ltd., Shares H 77,000 136,140 ----------------- 1,728,394
See financial notes. Laudus Funds Annual Report 79 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) ELECTRIC UTILITIES 0.1% Huadian Power International Co., Shares H 3,224,000 1,153,604 GOVERNMENT AIRCRAFT & DEFENSE 0.0% COSCO International Holdings Ltd. 500,000 262,499 INFORMATION & SERVICES 0.0% Shenzhen Expressway Co., Ltd., Shares H 74,000 46,437 LAND & WATER TRANSPORTATION 0.1% GZI Transportation Ltd. 614,000 359,191 Sichuan Expressway Co., Ltd. 6,015,000 1,354,107 Sinotrans Ltd., Class H 428,000 170,527 ----------------- 1,883,825 METAL PRODUCTS & MACHINERY 0.1% Harbin Power Equipment Co., Ltd. 1,552,000 1,748,741 MISCELLANEOUS FINANCE 0.0% Shenyin Wanguo HK Ltd. 595,000 174,084 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0% Great Wall Technology Co., Ltd., Class H 2,072,000 641,327 SOFTWARE 0.0% Digital China Holdings Ltd. 119,000 46,655 TEXTILES & APPAREL 0.1% Weiqiao Textile Co., Ltd., Class H 927,000 1,339,605 ----------------- 9,064,264 DENMARK 0.6% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Danisco A/S (a) 12,400 972,787 Harboes Bryggeri A/S 315 12,353 Hedegaard A/S 943 103,937 ----------------- 1,089,077 BANKS & CREDIT INSTITUTIONS 0.0% Ostjydsk Bank A/S 982 226,477 BEER, LIQUOR, & TOBACCO 0.4% Carlsberg A/S, Class B (a) 62,697 6,811,431 CONSTRUCTION & HOMEBUILDING 0.0% Ove Arkil Holding A/S 899 169,749 FOREST PRODUCTS & PAPER 0.0% Brodrene Hartmann A/S 4,029 149,523 ITH Industri Invest A/S 245 9,993 ----------------- 159,516 INFORMATION & SERVICES 0.0% Per Aarsleff A/S, Class B 7,416 704,801 LAND & WATER TRANSPORTATION 0.0% DFDS A/S (a) 6,009 808,270 METAL PRODUCTS & MACHINERY 0.0% GPV Industri A/S 4,000 214,012 PUBLISHING, BROADCASTING & CINEMA 0.0% SKAKO Industries A/S 4,500 244,454
NUMBER OF VALUE SECURITY SHARES ($) REAL ESTATE DEVELOPMENT 0.1% Keops A/S (a)* 170,044 644,670 Nordicom A/S 2,455 311,825 ----------------- 956,495 WHOLESALE 0.0% Sanistaal A/S, Class B 4,394 818,238 ----------------- 12,202,520 FINLAND 2.0% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.0% Lannen Tehtaat Oyi (a) 13,978 429,740 AIRLINES 0.2% Finnair Oyj (a) 203,814 3,548,050 BANKS & CREDIT INSTITUTIONS 0.0% OKO Bank plc (OKO Pankki Oyj), Series A (a) 44,596 759,814 BASIC MINERALS & METALS 0.5% Outokumpu Oyj (a) 108,752 3,743,325 Rautaruukki Oyj (a) 127,363 5,934,146 ----------------- 9,677,471 CHEMICALS & RUBBER 0.4% Kemira GrowHow Oyj 74,658 1,008,066 Kemira Oyj (a) 266,797 6,106,107 ----------------- 7,114,173 FINANCIAL INVESTMENTS 0.0% Norvestia Oyj, Class B 18,989 208,607 FOREST PRODUCTS & PAPER 0.1% Huhtamaki Oyj (a) 138,554 2,300,135 INSTRUMENTS 0.1% Larox Oyj (a) 28,589 343,567 Vaisala Oyj, Shares A (a) 18,932 884,655 ----------------- 1,228,222 IT HARDWARE 0.0% Elcoteq Network Corp., Class A (a) 1,894 19,973 Okmetic Oyj * 60,000 307,807 ----------------- 327,780 METAL PRODUCTS & MACHINERY 0.0% Kyro Oyj 2,544 13,767 MISCELLANEOUS FINANCE 0.0% Neomarkka Oyj (a) 21,000 229,178 REAL ESTATE DEVELOPMENT 0.2% Citycon Oyj 169,466 1,329,255 Sponda Oyj (a) 142,677 2,466,296 Technopolis Ojy (a) 52,496 534,091 ----------------- 4,329,642 RETAIL 0.4% Kesko Oyj, Class B (a) 157,604 8,439,344 SOFTWARE 0.1% SysOpen Digia Oyi 11,788 57,212 TietoEnator Oyj (a) 35,014 1,018,890 ----------------- 1,076,102 ----------------- 39,682,025
See financial notes. 80 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) FRANCE 10.2% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Bongrain S.A. 4,174 391,380 Evialis 8,700 418,794 Rougier S.A. 883 192,696 Sucriere de Pithiviers Le Vieil 306 290,325 ----------------- 1,293,195 AIRLINES 0.9% Air France-KLM (a) 370,400 16,941,484 AUTOS 1.0% Plastic Omnium S.A. 6,932 342,806 PSA Peugeot Citroen (a) 169,930 11,981,567 Societe Fonciere Financiere et de Participations (FFP) 25,473 7,005,261 ----------------- 19,329,634 BANKS & CREDIT INSTITUTIONS 0.0% Caisse Regionale du Credit Agricole Mutuel Loire Haute-Loire 815 71,747 BASIC MINERALS & METALS 0.4% Eramet 35,749 7,483,474 CHEMICALS & RUBBER 1.4% Compagnie Generale des Etablissements Michelin, Class B (a) 252,600 27,928,254 Societe Anonyme d'Explosifs et de Produits Chimiques 572 309,085 ----------------- 28,237,339 COMMUNICATIONS UTILITIES 0.2% Avenir Telecom * 14,017 45,028 Net2S * 21,350 90,394 Publicis Groupe (a) 74,400 3,591,273 ----------------- 3,726,695 CONSTRUCTION & HOMEBUILDING 0.0% Compagnie Industrielle et Financiere d' Entreprises 598 158,370 CONSTRUCTION MATERIALS 0.2% Ciments Francais S.A. 15,923 3,389,181 DRUGS & PHARMACEUTICALS 0.0% Boiron S.A. 3,084 85,455 FINANCIAL INVESTMENTS 0.0% IDI 1,217 55,402 Societe Alsacienne et Lorraine de Valeurs d'Entreprises et de Participations 3,835 547,862 ----------------- 603,264 FOREST PRODUCTS & PAPER 0.4% Sequana Capital 236,053 7,173,068 GOVERNMENT AIRCRAFT & DEFENSE 0.3% Beneteau 40,016 4,834,216 Societe Industrielle D'Aviations Latecoere S.A. 6,185 187,140 Thales S.A. (a) 26,800 1,562,651 ----------------- 6,584,007
NUMBER OF VALUE SECURITY SHARES ($) INFORMATION & SERVICES 0.0% A Novo * 102,365 104,828 Ginger * 8,835 262,407 Groupe Crit 4,174 195,120 Groupe Diffusion Plus 85 3,407 Tessi S.A. 3,864 242,113 ----------------- 807,875 INSURANCE 0.5% CNP Assurances (a) 88,100 10,309,784 IT HARDWARE 0.1% Radiall S.A. 3,329 458,459 Wavecom S.A. * 48,792 1,104,013 ----------------- 1,562,472 LAND & WATER TRANSPORTATION 0.1% Financiere de l'Odet 1,700 781,809 Touax 13,000 471,981 ----------------- 1,253,790 METAL PRODUCTS & MACHINERY 0.5% Constructions Industrielles dela Mediterranee S.A. 1,056 179,160 Gevelot 3,516 277,114 Securidev S.A. 356 12,175 Valeo S.A. (a) 155,202 9,129,511 ----------------- 9,597,960 MISCELLANEOUS FINANCE 0.8% ABC Arbitrage 16,943 126,958 Natixis 583,542 14,284,417 Viel et Compagnie 70,040 467,815 ----------------- 14,879,190 PUBLISHING, BROADCASTING & CINEMA 0.3% Havas S.A. (a) 1,149,306 6,648,444 REAL ESTATE DEVELOPMENT 0.8% Fonciere des Murs 83 13,083 Fonciere Des Regions 48,498 9,118,098 Icade Fonciere des Pimonts S.A. 40 9,347 Nexity 71,360 6,131,565 ----------------- 15,272,093 RESTAURANTS, HOTELS & THEATERS 0.8% Club Mediterranee S.A. * 225 13,228 Compagnie des Alpes 2,065 198,614 Groupe Flo * 44,837 627,360 Pierre & Vacances 3,129 431,228 Sodexho Alliance S.A. (a) 185,200 13,591,232 ----------------- 14,861,662 SOFTWARE 1.4% Atos Origin S.A. (a)* 138,685 9,336,350 Cap Gemini S.A. (a) 208,500 15,869,681 Esi Group * 19,800 313,863 GFI Informatique 37,935 362,016 Jet Multimedia 29,279 577,467 Lectra 5,256 44,334 XRT 110,000 228,332 ----------------- 26,732,043
See financial notes. Laudus Funds Annual Report 81 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) WHOLESALE 0.0% Guillin Emballages 400 37,117 ----------------- 197,039,343 GERMANY 4.6% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Frosta AG 10,062 219,862 Suedzucker AG (a) 74,826 1,428,134 ----------------- 1,647,996 AUTOS 0.0% Grammer AG 3,054 94,962 BASIC MINERALS & METALS 0.1% Euromicron AG 1,897 46,518 Leoni AG 1,305 54,052 Norddeutsche Affinerie AG (a) 57,754 1,836,215 ----------------- 1,936,785 BEER, LIQUOR, & TOBACCO 0.0% Sektkellerei Schloss Wachenheim AG 23,575 326,722 CELLULAR & WIRELESS 0.1% Drillisch AG 108,870 1,148,941 Funkwerk AG 12,971 344,529 ----------------- 1,493,470 CHEMICALS & RUBBER 0.6% Lanxess (a)* 217,071 11,230,306 COMMERCIAL AIRCRAFT & COMPONENTS 0.5% MTU Aero Engines Holding AG 147,300 8,852,941 CONSTRUCTION MATERIALS 0.0% Augusta Technologie AG * 18,872 370,337 DRUGS & PHARMACEUTICALS 0.0% Altana AG 8,853 575,840 ELECTRIC UTILITIES 0.2% MVV Energie AG 90,209 3,422,362 FOREST PRODUCTS & PAPER 0.0% Westag & Getalit AG 2,631 68,887 GOVERNMENT AIRCRAFT & DEFENSE 0.1% Rheinmetall AG 26,676 2,490,135 HEALTH CARE & HOSPITAL 0.0% Maternus-Kliniken AG * 5,738 14,564 INFORMATION & SERVICES 0.1% D. Logistics AG (a)* 114,503 286,241 Rucker AG 28,950 329,011 TUI AG (a) 44,952 1,111,292 ----------------- 1,726,544 INSTRUMENTS 0.5% Fresenius AG (a) 119,232 9,653,937 INSURANCE 0.1% AMB Generali Holding AG 2,086 326,396 Wuerttembergische Lebensversicherung AG 32,600 1,846,465 ----------------- 2,172,861
NUMBER OF VALUE SECURITY SHARES ($) IT HARDWARE 1.0% ADCapital AG 498 7,563 Elmos Semiconductor AG * 9,868 110,901 Infineon Technologies AG * 1,302,403 20,281,839 ----------------- 20,400,303 METAL PRODUCTS & MACHINERY 0.3% Duerr AG * 53,317 1,759,948 Gesco AG 8,232 422,900 Gildemeister AG (a) 170,000 2,969,660 ----------------- 5,152,508 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.4% Heidelberger Druckmaschinen AG 163,122 7,488,956 Koenig & Bauer AG 9,040 344,856 ----------------- 7,833,812 RESTAURANTS, HOTELS & THEATERS 0.0% IFA Hotel & Touristik AG * 25,000 335,966 RETAIL 0.3% Hornback Baumarkt Aktiengesellschaft 37,600 2,564,172 KarstadtQuelle AG (a)* 70,682 2,599,216 ----------------- 5,163,388 SOFTWARE 0.1% Bechtle AG 15,839 464,430 ComBOTS AG (a)* 5,459 80,694 Computerlinks AG 16,576 319,566 Mensch + Maschine 7,903 53,860 PC-Ware AG 12,805 228,098 REALTECH AG 13,166 190,828 syzygy AG 37,013 198,253 ----------------- 1,535,729 WHOLESALE 0.1% Herlitz AG * 8,321 36,746 INTERSEROH AG 29,687 1,562,621 ----------------- 1,599,367 ----------------- 88,099,722 GREECE 0.3% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.2% Bank of Greece 26,314 3,444,189 COMMUNICATIONS UTILITIES 0.1% Hellenic Telecommunications Organization S.A. (OTE) * 49,110 1,339,589 RESTAURANTS, HOTELS & THEATERS 0.0% Opap Sa 15,038 571,583 ----------------- 5,355,361 HONG KONG 1.7% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.1% Dah Sing Financial Group 103,200 897,900 Fubon Bank (Hong Kong) Ltd. 108,000 62,612 Liu Chong Hing Bank Ltd. 185,000 487,988 Wing Lung Bank Ltd. 95,200 1,051,340 ----------------- 2,499,840
See financial notes. 82 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) BASIC MINERALS & METALS 0.0% China Oriental Group Co., Ltd. 25,000 8,263 CELLULAR & WIRELESS 0.0% SmarTone Telecommunications Holdings Ltd. 103,000 118,634 CONSUMER DURABLES 0.0% Alco Holdings Ltd. 122,000 63,032 FINANCIAL INVESTMENTS 0.0% Peregrine Investment Holdings Ltd. (b)(c)* 84,000 -- FURNITURE & HOUSEHOLD ITEMS 0.1% Chow Sang Sang Holdings International Ltd. 28,000 18,902 EganaGoldpfeil (Holdings) Ltd. 2,788,000 1,957,869 ----------------- 1,976,771 INFORMATION & SERVICES 0.0% USI Holdings Ltd. (c) 722,727 419,013 Wai Kee Holdings Ltd. 74,000 28,404 ----------------- 447,417 IT HARDWARE 0.2% Moulin Global Eyecare Holdings Ltd. (b)(c)* 268,000 -- Truly International Holdings Ltd. 1,300,760 1,206,392 Vtech Holdings Ltd. 357,000 2,568,790 ----------------- 3,775,182 LAND & WATER TRANSPORTATION 0.2% Jinhui Holdings Ltd. * 939,000 391,246 Transport International Holdings Ltd. 427,200 2,317,968 ----------------- 2,709,214 METAL PRODUCTS & MACHINERY 0.0% Chen Hsong Holdings Ltd. 126,000 81,877 MISCELLANEOUS FINANCE 0.2% Allied Properties (H.K.) Ltd. 404,000 444,344 COL Capital Ltd. 480,000 207,122 Guoco Group Ltd. 268,000 3,767,258 Hongkong Chinese Ltd. 180,000 33,321 ----------------- 4,452,045 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0% Proview International Holdings Ltd. 1,908,000 260,539 PUBLISHING, BROADCASTING & CINEMA 0.1% eSun Holdings Ltd. * 1,710,000 1,359,089 Next Media Ltd. 926,000 318,227 ----------------- 1,677,316 REAL ESTATE DEVELOPMENT 0.6% Allied Group Ltd. 207,600 572,663 Associated International Hotels Ltd. * 4,000 6,149 Chevalier International Holdings Ltd. 356,000 364,421 China Motor Bus Co., Ltd. 4,000 30,689 Coastal Greenland Ltd. 1,268,000 177,908 Goldlion Holdings Ltd. 300,000 62,444 Great Eagle Holdings Ltd. 5,000 16,895
NUMBER OF VALUE SECURITY SHARES ($) HKC Holdings Ltd. 1,574,000 276,643 Hong Kong Ferry (Holdings) Co., Ltd. 294,280 328,320 Hopewell Holdings Ltd. 21,000 81,777 Hopson Development Holdings Ltd. 948,000 2,370,588 Keck Seng Investments 340,000 159,698 Kerry Properties Ltd. 571,000 2,928,468 Lippo Ltd. 21,000 8,289 Melbourne Enterprises Ltd. 2,000 11,609 New World China Land Ltd. 832,400 499,707 Pacific Century Premium Developments Ltd. 1,464,000 462,713 Shanghai Real Estate Ltd. 78,000 19,441 Tai Cheung Holdings Ltd. 1,423,520 871,245 Wheelock Properties (S) Ltd. 1,364,000 1,440,256 Wing On Co. International Ltd. 256,500 425,609 ----------------- 11,115,532 RESTAURANTS, HOTELS & THEATERS 0.1% Harbour Centre Development Ltd. 180,000 317,911 Hongkong & Shanghai Hotels Ltd. 952,192 1,501,740 ----------------- 1,819,651 SOFTWARE 0.0% SUNeVision Holdings Ltd. 1,050,280 145,172 WHOLESALE 0.1% Champion Technology Holdings Ltd. 4,363,582 869,428 Tan Chong International Ltd. 1,236,000 300,557 ----------------- 1,169,985 ----------------- 32,320,470 IRELAND 1.0% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.4% Kerry Group plc, Class A 306,263 8,560,589 IT HARDWARE 0.0% Vislink plc 263,135 507,240 OIL & COAL RESOURCES 0.1% Dragon Oil plc * 314,975 1,110,805 PUBLISHING, BROADCASTING & CINEMA 0.4% Independent News & Media plc (a) 1,603,000 7,300,760 SOFTWARE 0.0% Iona Technologies plc * 29,976 181,366 WHOLESALE 0.1% DCC plc 41,105 1,443,856 ----------------- 19,104,616 ITALY 4.7% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.0% Centrale del Latte di Torino & C S.p.A. 9,679 59,955 La Doria S.p.A. 107,874 352,429 ----------------- 412,384
See financial notes. Laudus Funds Annual Report 83 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) BANKS & CREDIT INSTITUTIONS 0.0% Meliorbanca S.p.A. 28,174 157,939 BASIC MINERALS & METALS 0.0% KME Group * 1,191,104 957,894 CHEMICALS & RUBBER 0.5% Montefibre S.p.A. * 431,574 485,509 Pirelli & C. S.p.A. (a) 8,037,000 8,888,641 ----------------- 9,374,150 CONSTRUCTION & HOMEBUILDING 0.1% Vianini Lavori S.p.A. 134,442 2,054,706 CONSTRUCTION MATERIALS 0.9% Buzzi Unicem S.p.A. (a) 99,221 3,023,121 Italcementi S.p.A. (a) 267,899 8,045,527 Italmobiliare S.p.A. 50,802 5,882,528 ----------------- 16,951,176 ELECTRIC UTILITIES 0.6% ACEA S.p.A. 169,809 3,185,329 C.I.R. S.p.A. -- Compagnie Industriali Riunite (a) 1,620,000 6,460,690 Cofide S.p.A. -- Compagnia Finanziaria De Benedetti 769,882 1,336,666 ----------------- 10,982,685 FOREST PRODUCTS & PAPER 1.1% IFIL -- Investments S.p.A. (a) 2,122,709 20,804,089 FURNITURE & HOUSEHOLD ITEMS 0.0% Targetti Sankey S.p.A. 61,225 499,567 GAS & OTHER PUBLIC UTILITIES 0.2% Acegas-APS S.p.A. 61,646 768,940 ACSM Como S.p.A 47,000 147,472 Iride S.p.A. 666,154 2,256,493 ----------------- 3,172,905 GOVERNMENT AIRCRAFT & DEFENSE 0.5% Finmeccanica S.p.A. (a) 344,800 10,364,533 INFORMATION & SERVICES 0.0% Cam Finanziaria S.p.A. (a) 90,636 202,197 I Grandi Viaggi S.p.A. 88,636 317,166 ----------------- 519,363 INSTRUMENTS 0.0% Gefran S.p.A. 52,276 381,302 INSURANCE 0.0% Ergo Previdenza S.p.A. 7,640 54,653 LAND & WATER TRANSPORTATION 0.0% Autostrade Meridionali S.p.A. 216 9,575 Navigazione Montanari S.p.A. 2,161 11,486 ----------------- 21,061 METAL PRODUCTS & MACHINERY 0.2% Danieli S.p.A. -- Officine Meccanishe Danieli & C. (a) 143,186 3,373,241 MISCELLANEOUS FINANCE 0.0% Mittel S.p.A. 1,230 10,481
NUMBER OF VALUE SECURITY SHARES ($) PUBLISHING, BROADCASTING & CINEMA 0.2% A.S. Roma S.p.A. * 111,113 94,063 Mondadori (Arnoldo) Editore S.p.A. (a) 376,000 3,933,337 Monrif S.p.A. 242,871 387,056 Telecom Italia Media S.p.A. (a) 907,930 394,548 ----------------- 4,809,004 REAL ESTATE DEVELOPMENT 0.1% Beni Stabili S.p.A. (a) 729,001 1,215,357 IPI S.p.A. 9,935 92,949 Vittoria Assicurazioni S.p.A. 4,787 79,294 ----------------- 1,387,600 RETAIL 0.2% Gruppo Coin S.p.A. * 383,923 2,913,065 SOAPS & COSMETICS 0.0% Mirato S.p.A. 32,755 403,955 SOFTWARE 0.1% Banco di Sardegna S.p.A. 1,532 41,712 Digital Bros S.p.A. 2,330 20,938 Engineering Ingegneria Informatica S.p.A. 29,038 1,371,139 ----------------- 1,433,789 ----------------- 91,039,542 JAPAN 17.3% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.8% Coca-Cola Central Japan Co., Ltd. (a) 291 2,260,829 DyDo Drinco, Inc. (a) 46,600 1,900,463 Fuji Oil Co., Ltd. 137,000 1,148,212 Itoham Foods, Inc. 88,000 402,204 Mikuni Coca-Cola Bottling Co., Ltd. 110,500 1,154,992 Morinaga & Co., Ltd. (a) 671,000 1,574,917 Morinaga Milk Industry Co., Ltd. 47,000 231,656 Nichiwa Sangyo Co., Ltd. 17,000 66,840 Nippon Flour Mills Co., Ltd. 574,000 2,316,005 Nisshin Seifun Group, Inc. (a) 241,500 2,453,043 Q.P. 1,000 9,061 Tokatsu Foods Co., Ltd. 36,000 185,714 Yamazaki Baking Co., Ltd. 127,000 1,154,799 Yonekyu Corp. 17,000 172,263 ----------------- 15,030,998 AUTOS 1.0% Aichi Machine Industry Co., Ltd. (a) 331,000 853,033 Calsonic Kansei Corp. (a) 72,000 345,483 Daido Metal Co., Ltd. (a) 37,000 239,212 Fuji Heavy Industries Ltd. 523,000 2,708,665 Futaba Industrial Co., Ltd. (a) 123,200 2,979,635 HI-LEX Corp. 26,700 437,588 Hino Motors Ltd. (a) 152,000 807,911 Kanto Auto Works Ltd. (a) 197,200 2,499,887 Kyokuto Kaihatsu Kogyo Co., Ltd. 66,000 540,111 Mitsuba Corp. 129,000 1,008,236 Nissan Shatai Co., Ltd. 182,000 924,900
See financial notes. 84 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) Pacific Industrial Co., Ltd. 65,000 435,912 Press Kogyo Co., Ltd. 34,000 167,423 Sanden Corp. (a) 275,000 1,201,280 Topre Corp. 129,600 1,178,845 Topy Industries Ltd. 683,000 2,739,395 Unipres Corp. 117,800 869,096 Yorozu Corp. (a) 19,900 280,464 ----------------- 20,217,076 BANKS & CREDIT INSTITUTIONS 1.0% Aichi Bank Ltd. (a) 22,300 2,446,672 Akita Bank Ltd. 250,000 1,277,561 Daishi Bank Ltd. 562,000 2,374,801 Higo Bank Ltd. 29,000 196,487 Hyakugo Bank Ltd. 374,000 2,397,397 Kita-Nippon Bank Ltd. 11,600 516,700 Kyushu-Shinwa Holdings, Inc. * 705,000 1,032,669 Miyazaki Bank Ltd. 21,000 93,186 Orient Corp. (a)* 205,000 348,353 San-in Godo Bank Ltd. 46,000 434,589 Shiga Bank Ltd. 251,000 1,738,312 Shinki Co., Ltd. 86,700 244,654 Taiko Bank Ltd. 71,000 216,344 The Bank of Iwate Ltd. 14,000 807,763 The Chukyo Bank Ltd. 89,000 283,509 The Eighteenth Bank Ltd. 50,000 233,198 The Kumamoto Family Bank Ltd. (c)* 48,000 85,132 The Mie Bank Ltd. 363,000 1,792,811 Toho Bank Ltd. 344,000 1,487,976 Tomato Bank Ltd. 46,000 101,292 Yamagata Bank Ltd. 112,000 595,886 ----------------- 18,705,292 BASIC MINERALS & METALS 2.7% Ahresty Corp. 49,300 1,331,384 Asahi Industries Co., Ltd. 205 447,761 Chubu Steel Plate Co., Ltd. 106,500 1,290,647 Daiki Aluminium Industry Co., Ltd. 167,000 1,142,513 Dowa Mining 391,000 3,956,478 Fujikura Ltd. (a) 333,000 2,338,100 Godo Steel Ltd. (a) 504,000 2,685,200 Hitachi Cable Ltd. (a) 411,000 2,330,869 Mitsui Mining & Smelting Co., Ltd. (a) 446,000 2,439,333 Nakayama Steel Works Ltd. (a) 454,000 1,744,997 Nichia Steel Works Ltd. 154,000 661,716 Nippon Light Metal (a) 1,179,000 3,332,902 Nisshin Steel Co., Ltd. (a) 1,216,000 5,226,365 Osaka Steel Co., Ltd. (a) 128,200 2,451,102 Pacific Metals Co., Ltd. (a) 248,000 3,452,289 Sanyo Special Steel Co., Ltd. (a) 394,000 2,768,506 Showa Electric Wire & Cable Co., Ltd. (a) 261,000 364,403 Sumitomo Pipe & Tube Co., Ltd. 98,000 711,117 The Furukawa Electric Co., Ltd. 1,000 6,078 Tokyo Steel Manufacturing Co., Ltd. (a) 195,400 2,874,399 Tokyo Tekko Co., Ltd. 174,000 1,364,237 Toyo Kohan Co., Ltd. 295,000 1,184,554
NUMBER OF VALUE SECURITY SHARES ($) Yamato Kogyo Co., Ltd. 139,900 4,382,500 Yodogawa Steel Works Ltd. (a) 460,000 2,829,098 ----------------- 51,316,548 BEER, LIQUOR, & TOBACCO 0.2% Asahi Breweries Ltd. 232,400 3,722,313 Mercian Corp. 84,000 225,740 Oenon Holdings, Inc. (a) 112,000 298,089 ----------------- 4,246,142 CHEMICALS & RUBBER 0.9% Adeka Corp. (a) 139,700 1,609,791 Arakawa Chemical Industries Ltd. 18,200 226,343 Atomix Co., Ltd. 3,000 9,445 Daicel Chemical Industries Ltd. (a) 94,000 639,508 Dainippon Ink & Chemicals, Inc. 617,000 2,444,073 Kureha Chemical Industry Co., Ltd. 409,000 2,053,695 Nippon Shokubai Co., Ltd. (a) 5,000 53,828 Sakai Chemical Industry Co., Ltd. 183,000 1,317,272 SOFT99 Corp. 21,000 181,071 Sumitomo Rubber Industries Ltd. 281,700 3,074,764 Teijin Ltd. (a) 454,000 2,551,678 Toagosei Co., Ltd. 137,000 568,305 Tokyo Ohka Kogyo Co., Ltd. (a) 108,300 2,705,569 Tosoh Corp. 2,000 10,302 Toyo Ink Manufacturing Co., Ltd. 198,000 738,685 ----------------- 18,184,329 COMMERCIAL AIRCRAFT & COMPONENTS 0.1% Jalux., Inc. 2,600 48,973 Sumitomo Precision Products Co., Ltd. 197,000 1,109,264 ----------------- 1,158,237 COMMUNICATIONS UTILITIES 0.1% eAccess Ltd. (a) 314 208,550 GMO Internet, Inc. 42,800 347,040 JSAT Corp. (c) 483 1,127,164 ----------------- 1,682,754 CONSTRUCTION & HOMEBUILDING 0.3% C-Cube Corp. 58,700 223,901 Daiichi Kensetu Corp. 25,000 186,589 Hazama Corp. 1,100 1,480 Koatsu Kogyo Co., Ltd. 16,000 51,949 Kodensha Co., Ltd. 8,000 24,812 Maeda Corp. (a) 5,000 18,188 Nippo Corp. (a) 4,000 31,019 Nippon Dentsu Co., Ltd. 12,000 42,212 Nippon Road Co., Ltd. (a) 331,000 640,759 Nishimatsu Construction Co., Ltd. (a) 93,000 300,281 Ohmoto Gumi Co., Ltd. 13,000 82,771 Oki Wintech Co., Ltd. 34,000 148,379 PanaHome Corp. (a) 333,000 2,207,744
See financial notes. Laudus Funds Annual Report 85 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Sanyo Engineering & Construction, Inc. 4,000 19,635 Seibu Electric Industry Co., Ltd. 83,000 436,022 Taisei Oncho Co., Ltd. 45,000 174,410 Taisei Rotec Corp. (a) 191,000 360,929 Techno Ryowa Ltd. 400 3,039 Tsuchiya Home Co., Ltd. 2,700 6,676 Wakachiku Construction Co., Ltd. (a) 9,000 9,432 Yondenko Corp. 63,000 341,957 Yurtec Corp. 43,000 227,323 Zenitaka Corp. 32,000 78,731 ----------------- 5,618,238 CONSTRUCTION MATERIALS 0.3% Maeda Road Construction Co., Ltd. (a) 152,000 1,198,099 Mitani Sekisan Co., Ltd. 1,300 8,692 Nihon Yamamura Glaaa Co., Ltd. 444,000 1,331,752 Sankyo Rikagaku Co., Ltd. 4,000 43,064 Sumitomo Osaka Cement Co., Ltd. 34,000 101,816 Taiheiyo Cement Corp. (a) 594,000 2,615,284 ----------------- 5,298,707 CONSUMER DURABLES 0.0% Tohoku Pioneer Corp. 10,200 146,768 Zojirushi Corp. 2,000 19,168 ----------------- 165,936 DRUGS & PHARMACEUTICALS 0.5% Cawachi Ltd. 69,700 1,885,195 Kaken Pharmaceutical Co., Ltd. (a) 324,000 2,636,018 Kyorin Co., Ltd. (a) 37,000 469,808 Mochida Pharmaceutical Co., Ltd. 7,000 67,309 Nippon Shinyaku Co., Ltd. 174,000 1,466,053 Nissui Pharmaceutical Co., Ltd. 5,000 40,040 Seikagaku Corp. 45,900 490,780 Sumitomo Seika Chemicals Co., Ltd. 215,000 1,220,323 Torii Pharmaceutical Co., Ltd. 91,600 1,545,174 ----------------- 9,820,700 ELECTRIC UTILITIES 0.1% The Okinawa Electric Power Co., Inc. 25,190 1,572,027 FINANCIAL INVESTMENTS 0.2% Gecoss Corp. (a) 64,900 384,227 Hitachi Capital Corp. (a) 116,100 2,310,487 Sankyo Frontier Co., Ltd. 40,000 141,053 Sanyo Electric Credit Co., Ltd. (a) 30,000 819,452 ----------------- 3,655,219 FOREST PRODUCTS & PAPER 0.0% Daio Paper Corp. (a) 5,000 39,953 Nihon Decoluxe Co., Ltd. 2,000 11,880 ----------------- 51,833
NUMBER OF VALUE SECURITY SHARES ($) FURNITURE & HOUSEHOLD ITEMS 0.3% Citizen Watch Co., Ltd. 35,100 328,768 Hodogaya Chemical Co., Ltd. 191,000 655,931 Paramount Bed Co., Ltd. (a) 13,300 261,604 Roland Corp. 62,700 1,443,673 Sumitomo Bakelite Co., Ltd. (a) 324,000 2,336,016 Tachikawa Corp. 60,600 380,120 Toso Co., Ltd. 29,000 88,969 ----------------- 5,495,081 GAS & OTHER PUBLIC UTILITIES 0.0% Keiyo Gas Co., Ltd. 49,000 253,975 Otaki Gas Co., Ltd. 19,000 100,691 ----------------- 354,666 GOVERNMENT AIRCRAFT & DEFENSE 0.2% Mitsui Engineering & Shipbuilding Co., Ltd. (a) 1,037,000 4,377,933 INFORMATION & SERVICES 0.4% Autobacs Seven Co., Ltd. 26,700 954,205 BML, Inc. (a) 25,000 508,597 Chodai Co., Ltd. 20,500 86,537 CTI Engineering Co., Ltd. 53,500 398,209 Eight Consultants Co., Ltd. 8 24,494 Eikoh, Inc. 33,400 139,796 Ichishin Co., Ltd. 24,500 100,024 Itohchu Enex Co., Ltd. 3,300 25,029 Johnan Academic Preparatory Institute, Inc. 27,000 71,098 Keiiyu Co., Ltd. 40,600 280,713 NEC Networks & System Integration Corp. 184,400 2,330,008 Nippon Koei Co., Ltd. (a) 280,000 849,086 Original Engineering Consultants Co., Ltd. 14,000 48,814 Secom Joshinetsu Co., Ltd. 12,000 275,823 TKC Corp. 100,000 1,745,238 Wesco, Inc. 56,700 197,705 ----------------- 8,035,376 INSTRUMENTS 0.2% Fukuda Denshi Co., Ltd. 100 3,522 Furuno Electric Co., Ltd. 16,200 145,609 Hitachi Medical Corp. 102,000 1,039,842 Nipro Corp. (a) 105,000 2,047,094 Shimadzu Corp. 13,000 112,479 ----------------- 3,348,546 INSURANCE 0.1% The Fuji Fire & Marine Insurance Co., Ltd. (a) 484,000 1,989,139 IT HARDWARE 1.0% Alps Electric Co., Ltd. (a) 183,400 2,141,628 Brother Industries Ltd. 250,000 3,375,562 Dainippon Screen Mfg. Co., Ltd. (a) 360,000 2,713,936 Futaba Corp. (a) 81,700 1,944,344 Hitachi Kokusai Electric, Inc. 14,000 161,808 Nippon Antenna Co., Ltd. 17,900 144,099 Pioneer Corp. (a) 47,200 615,218 Shindengen Electric Manufacturing Co., Ltd. 270,000 1,203,624
See financial notes. 86 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) Shinkawa Ltd. 71,100 1,638,963 Tamura Corp. 288,000 1,300,125 Teikoku Tsushin Kogyo Co., Ltd. 4,000 19,356 Toshiba Tec Corp. 626,000 3,739,047 ----------------- 18,997,710 LAND & WATER TRANSPORTATION 0.6% Fukuyama Transporting Co., Ltd. (a) 116,000 468,873 Isewan Terminal Service Co., Ltd. 75,000 470,409 K.R.S. Corp. 7,000 92,801 Kawanishi Warehouse Co., Ltd. 4,000 40,691 Keisei Electric Railway Co., Ltd. (a) 457,000 2,945,445 Meiko Trans Co., Ltd. 26,000 324,786 Nankai Electric Railway Co., Ltd. 122,000 410,637 Nippon Konpo Unyu Soko Co., Ltd. 227,000 3,171,060 Seino Transportation Co., Ltd. 272,000 2,563,119 Tokyo Kisen Co., Ltd. 10,000 75,377 West Japan Railway Co. 383 1,765,375 ----------------- 12,328,573 MAINFRAME & MINICOMPUTERS 0.1% NEC Corp. (a) 255,000 1,362,949 METAL PRODUCTS & MACHINERY 1.4% ABILIT Corp. (a) 2,300 13,297 Aida Engineering Ltd. 17,000 119,033 Asahi Diamond Industrial Co., Ltd. (a) 191,000 1,392,435 Bosch Corp. 547,000 2,473,114 Corona Corp. (a) 49,100 839,844 Ebara Corp. (a) 48,000 226,360 Fuji Electric Holdings Co., Ltd. 523,000 2,418,081 Fuji Machine Manufacturing Co., Ltd. (a) 153,800 2,490,566 Fujitec Co., Ltd. 192,000 1,313,215 Glory Ltd. 38,500 748,296 Hakuto Co., Ltd. 300 4,626 Heiwa Corp. (a) 86,500 1,067,737 Hokkan Holdings, Ltd. 11,000 35,256 Ishikawajima Transportation Machinery Co., Ltd. 18,000 84,089 Kioritz Corp. 247,000 750,360 Komori Corp. 165,000 3,830,710 Nakano Refrigerators Co., Ltd. 2,000 21,512 Nippon Thompson Co., Ltd. 257,000 2,374,805 Nireco Corp. 700 6,470 Nissei Plastic Industrial Co., Ltd. 52,600 341,184 Oiles Corp. 18,480 404,630 Piolax, Inc. 8,800 173,805 Sanso Electric Co., Ltd. 30,000 101,815 Sekisui Jushi Corp. 138,000 1,085,107 ShinMaywa Industries Ltd. 378,000 1,950,945 Sinko Kogyo Co., Ltd. 88,000 350,808 Sintokogio Ltd. 125,500 1,798,446
NUMBER OF VALUE SECURITY SHARES ($) Tsurumi Manufacturing Co., Ltd. 5,000 49,895 Wakita & Co., Ltd. 50,000 376,386 ----------------- 26,842,827 MISCELLANEOUS FINANCE 0.5% Aizawa Securities Co., Ltd. 14,400 121,647 Matsui Securities Co., Ltd. (a) 6,000 52,396 Mito Securities Co., Ltd. 167,000 851,270 Mitsubishi UFJ Securities Co., Ltd. (a) 48,000 545,326 Okasan Holdings, Inc. (a) 261,000 2,028,623 Osaka Securities Finance Co., Ltd. 130,300 569,987 RECRM RESEARCH Co., Ltd. 463 774,529 Shinsei Bank Ltd. 671,000 3,208,534 Takagi Securities Co., Ltd. 56,000 248,767 Toyo Securities Co., Ltd. 198,000 908,768 ----------------- 9,309,847 OIL DISTRIBUTION 0.0% AOC Holdings, Inc. 31,800 516,498 Cosmo Oil Co., Ltd. 29,000 121,063 ----------------- 637,561 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.5% Eizo Nanao Corp. (a) 52,300 1,725,076 Japan Digital Laboratory Co., Ltd. 96,800 1,540,684 Konica Minolta Holdings, Inc. 326,500 4,277,683 Noritsu Koki Co., Ltd. (a) 62,100 1,116,127 Riso Kagaku Corp. (a) 43,600 882,685 Tamron Co., Ltd. 400 8,456 ----------------- 9,550,711 PUBLISHING, BROADCASTING & CINEMA 0.2% Chubu-Nippon Broadcasting Co., Ltd. 300 3,781 Hakuhodo Dy Holdings, Inc. (a) 29,480 2,058,181 Kadokawa Group Holdings, Inc. (a) 74,000 2,414,723 RKB Mainichi Broadcasting Corp. 12,000 106,811 ----------------- 4,583,496 REAL ESTATE DEVELOPMENT 0.6% Airport Facilities Co., Ltd. (a) 180,800 1,140,591 Aoki Marine Co., Ltd. 5,000 17,826 Cosmos Initia Co., Ltd. 59,000 427,693 Cowboy Co., Ltd. 58,000 126,854 Hankyu Hanshin Holdings, Inc. (a) 7,000 42,296 Hosoda Corp. 55,000 263,989 Iida Home Max (a) 40,700 716,544 Japan Airport Terminal Co., Ltd. 231,900 3,372,863 Keihanshin Real Estate Co., Ltd. 45,000 324,415 Meiwa Estate Co., Ltd. (a) 80,900 1,250,092 Nisshin Fudosan Co., Ltd. 68,700 894,352 SUNCITY Co., Ltd. (a) 350 192,447 Takara Leben Co., Ltd. 60,200 850,214 The Sankei Building Co., Ltd. 1,600 15,322
See financial notes. Laudus Funds Annual Report 87 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Towa Real Estate Development Co., Ltd. (a)* 371,500 2,002,218 Yuraku Real Estate Co., Ltd. 93,000 542,414 ----------------- 12,180,130 RESTAURANTS, HOTELS & THEATERS 0.5% BMB Corp. 40,100 163,376 Daisyo Corp. 71,900 932,750 Fields Corp. 848 1,363,494 Friendly Corp. 5,000 21,848 Gourmet Kineya Co., Ltd. 45,000 366,209 H.I.S. Co., Ltd. 95,700 2,746,104 Matsuya Foods Co., Ltd. 4,300 58,834 Royal Holdings Co., Ltd. (a) 143,400 1,807,107 Shidax Corp. 1,144 1,065,471 Tokyo Dome Corp. (a) 42,000 227,418 ----------------- 8,752,611 RETAIL 0.9% Aichi Toyota Motor Co., Ltd. 20,000 389,215 AOKI Holdings, Inc. 85,600 1,629,467 Aoyama Trading Co., Ltd. 103,600 3,280,585 Blue Grass Co., Ltd. 12,600 148,481 Chiyoda Co., Ltd. (a) 17,500 428,161 Daiichikosho Co., Ltd. 200,000 2,256,583 Daiwa Co., Ltd. 96,000 228,401 Haruyama Trading Co., Ltd. (a) 21,900 209,953 Heiwado Co., Ltd. 142,600 2,225,332 Izumiya Co., Ltd. 313,000 2,411,935 Jeans Mate Corp. 24,400 240,425 Kasumi Co., Ltd. 92,000 507,248 Maxvalu Nishinihon Co., Ltd. 8,900 116,703 Ministop Co., Ltd. 10,200 176,213 Okuwa Co., Ltd. 121,000 1,719,983 Poplar Co., Ltd. 2,300 18,684 Uny Co., Ltd. (a) 156,000 2,136,046 ----------------- 18,123,415 SOAPS & COSMETICS 0.0% ADERANS Co., Ltd. 85 2,061 SOFTWARE 0.1% Daikoku Denki Co., Ltd. 7,600 137,942 Fujitsu Business Systems Ltd. 76,900 1,193,975 Japan Process Development Co., Ltd. 9,600 83,399 TIS, Inc. (a) 33,900 803,028 ----------------- 2,218,344 TEXTILES & APPAREL 0.5% Fuji Corp. 11,000 110,290 Fujix Ltd. 9,000 51,064 Ichikawa Co., Ltd. 79,000 352,092 Japan Wool Textile Co., Ltd. 235,000 2,053,772 Jichodo Co., Ltd. 6,000 60,676 King Co., Ltd. 45,000 162,141 Kurabo Industries Ltd. (a) 790,000 2,187,865 Morishita Co., Ltd. 7,000 73,956 Nisshinbo Industries, Inc. (a) 14,000 174,777 Onward Kashiyama Co., Ltd. 85,000 1,179,019 Sazaby, Inc. 29,500 801,465 Tokyo Style Co., Ltd. 250,000 2,732,698 ----------------- 9,939,815
NUMBER OF VALUE SECURITY SHARES ($) TRADING COMPANY 0.2% Sojitz Corp. (a)* 1,086,700 4,515,700 WHOLESALE 0.8% Daiwabo Information System Co., Ltd. 2,500 34,296 Denkyosha Co., Ltd. 17,000 144,117 Fujitsu Devices, Inc. 1,000 13,625 Inabata & Co., Ltd. 18,900 151,580 Japan Pulp & Paper Co., Ltd. (a) 506,000 1,972,295 Kamei Corp. 93,000 727,337 Kanaden Corp. 91,000 590,677 Kato Sangyo Co., Ltd. 52,900 696,788 Kojima Co., Ltd. (a) 80,400 684,810 Macnica, Inc. 37,700 1,112,587 Mitani Corp. 10,200 126,478 Mitsuuroko Co., Ltd. 65,000 458,732 Nagahori Corp. 57,000 225,768 Nagase & Co., Ltd. 97,000 1,218,904 Onoken Co., Ltd. 57,300 821,038 Ryoden Trading Co., Ltd. 159,000 1,319,868 Ryosan Co., Ltd. (a) 107,400 2,756,065 Sanshin Electronics Co., Ltd. 6,200 77,819 Senshu Electric Co., Ltd. 200 5,006 Shinko Shoji Co., Ltd. 200 3,913 Sinanen Co., Ltd. 93,000 471,555 TEN ARROWS Co., Ltd. 6,700 43,933 Tokiwa Yakuhin Co., Ltd. 10,000 43,633 Totech Corp. 25,000 220,440 Trusco Nakayama Corp. (a) 13,900 280,939 Tsuzuki Densan Co., Ltd. 22,500 109,976 Uchida Yoko Co., Ltd. 108,000 513,854 Uehara Sei Shoji Co., Ltd. 38,000 190,065 ----------------- 15,016,098 ----------------- 334,686,625 MALAYSIA 0.0% - ------------------------------------------------------------------ REAL ESTATE DEVELOPMENT 0.0% Rekapacific Berhad (b)(c)* 24,000 -- NETHERLANDS 3.3% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.5% CSM N.V. 182,800 6,539,067 Koninklijke Wessanen N.V. (a) 220,026 3,324,987 ----------------- 9,864,054 BANKS & CREDIT INSTITUTIONS 0.1% Kas Bank N.V. 54,000 1,734,773 BASIC MINERALS & METALS 0.0% Draka Holding N.V. (a)* 3,500 127,673 CHEMICALS & RUBBER 0.8% Koninklijke DSM N.V. (a) 333,748 14,977,383 FOREST PRODUCTS & PAPER 0.0% Crown Van Gelder N.V. 9,758 243,898 FURNITURE & HOUSEHOLD ITEMS 0.4% Hunter Douglas N.V. 86,303 7,614,645 INFORMATION & SERVICES 0.5% Vedior N.V. 462,902 10,317,157
See financial notes. 88 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) IT HARDWARE 0.2% ASM International N.V. * 155,564 3,466,268 METAL PRODUCTS & MACHINERY 0.0% BE Semiconductor Industries N.V. (a)* 70,783 467,342 Koninklijke Nedschroef Holding N.V. 5,084 396,282 ----------------- 863,624 MISCELLANEOUS FINANCE 0.0% Van der Moolen Holding N.V. (a) 86,141 461,666 PUBLISHING, BROADCASTING & CINEMA 0.0% DOCdata N.V. 26,000 228,523 REAL ESTATE DEVELOPMENT 0.2% Nieuwe Steen Investments N.V. 117,818 3,473,090 RETAIL 0.0% Macintosh Retail Group N.V. 1,291 52,068 Stern Groep N.V. 6,200 332,173 ----------------- 384,241 SOFTWARE 0.2% Getronics N.V. (a) 354,000 3,250,552 WHOLESALE 0.4% Buhrmann N.V. (a) 301,000 4,042,789 Univar N.V. 55,609 3,107,345 ----------------- 7,150,134 ----------------- 64,157,681 NEW ZEALAND 0.2% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.0% AFFCO Holdings Ltd. 887,761 241,483 Sanford Ltd. 17,957 62,059 ----------------- 303,542 AIRLINES 0.1% Air New Zealand Ltd. 494,885 825,975 LAND & WATER TRANSPORTATION 0.1% Mainfreight Ltd. 201,682 1,052,171 Tourism Holdings Ltd. 217,789 360,428 ----------------- 1,412,599 RESTAURANTS, HOTELS & THEATERS 0.0% Millennium & Capthorne Hotels New Zealand Ltd. 1,147,522 635,054 RETAIL 0.0% Hallenstein Glasson Holdings Ltd. 52,084 186,213 ----------------- 3,363,383 NORWAY 0.5% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.0% Sparebanken Vest 7,022 226,880 GOVERNMENT AIRCRAFT & DEFENSE 0.3% Aker Yards A/S (a) 262,000 4,525,936 Kongsberg Gruppen A/S 55,613 1,694,923 ----------------- 6,220,859
NUMBER OF VALUE SECURITY SHARES ($) LAND & WATER TRANSPORTATION 0.2% Fosen Trafikklag A.S.A. 187 20,459 Stolt-Nielsen S.A. (a) 94,184 2,766,659 ----------------- 2,787,118 MISCELLANEOUS FINANCE 0.0% Skiens Aktiemolle A.S.A. 8,622 177,311 ----------------- 9,412,168 PORTUGAL 0.4% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.4% Banco Espirito Santo, S.A. (BES) Reg'd 403,298 7,708,075 FOREST PRODUCTS & PAPER 0.0% Corticeira Amorim S.A. 7,338 20,532 REAL ESTATE DEVELOPMENT 0.0% Teixeira Duarte -- Engenharia Construcoes S.A. 45,792 165,408 RESTAURANTS, HOTELS & THEATERS 0.0% Ibersol SGPS S.A. 35,747 496,627 ----------------- 8,390,642 SINGAPORE 1.0% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Asia Food & Properties Ltd. 2,182,000 998,263 Cerebos Pacific Ltd. 32,000 69,917 Golden Agri-Resources Ltd. 702,180 813,999 ----------------- 1,882,179 AUTOS 0.1% Jardine Cycle & Carriage Ltd. 286,000 2,234,664 FINANCIAL INVESTMENTS 0.1% Chuan Hup Holdings Ltd. 129,000 28,854 Kim Eng Holdings Ltd. 1,121,513 1,179,884 Metro Holdings Ltd. 1,734,000 982,304 ----------------- 2,191,042 FURNITURE & HOUSEHOLD ITEMS 0.0% HTL International Holdings Ltd. 667,000 398,895 IT HARDWARE 0.0% Elec & Eltek International Co., Ltd. 37,000 95,982 STATS ChipPAC Ltd. * 361,000 434,588 WBL Corp., Ltd. 19,160 58,208 ----------------- 588,778 LAND & WATER TRANSPORTATION 0.1% K1 Ventures Ltd. * 5,665,000 1,230,027 Neptune Orient Lines Ltd. 24,000 51,199 SBS Transit Ltd. 128,500 243,310 Singapore Shipping Corp., Ltd. 613,000 153,474 ----------------- 1,678,010 METAL PRODUCTS & MACHINERY 0.0% Amtek Engineering Ltd. 148,120 66,937 Kingboard Copper Foil Holdings Ltd. 293,000 83,721 ----------------- 150,658
See financial notes. Laudus Funds Annual Report 89 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) MISCELLANEOUS FINANCE 0.1% G.K. Goh Holdings Ltd. 496,083 343,088 UOB-Kay Hian Holdings Ltd. 1,457,850 1,477,589 ----------------- 1,820,677 OIL DISTRIBUTION 0.0% Singapore Petroleum Co., Ltd. 141,000 448,970 REAL ESTATE DEVELOPMENT 0.4% Bonvests Holdings Ltd. 7,000 9,166 China Merchants Holdings Pacific Ltd. 10,000 5,327 Guocoland Ltd. 422,000 1,168,714 Haw Par Corp., Ltd. 210,000 993,356 Ho Bee Investment Ltd. 1,003,000 1,492,620 MCL Land Ltd. 23,000 40,166 UOL Group Ltd. 75,000 251,924 Wheelock Properties (S) Ltd. 253,000 538,476 Wing Tai Holdings Ltd. 1,028,000 2,144,970 ----------------- 6,644,719 RESTAURANTS, HOTELS & THEATERS 0.1% Hotel Grand Central Ltd. 133,000 90,196 Hotel Plaza Ltd. 402,000 611,118 Low Keng Huat (Singapore) Ltd. 335,000 475,780 Stamford Land Corp., Ltd. 660,000 178,126 ----------------- 1,355,220 ----------------- 19,393,812 SOUTH KOREA 3.2% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.2% Dongwon F&B Co., Ltd. 8,173 536,874 Lotte Confectionery Co., Ltd. 2,111 2,698,833 Namyang Dairy Products Co., Ltd. 655 575,899 Nong Shim Holdings Co., Ltd. 790 65,419 Ottogi Corp. 30 2,807 Samyang Corp. 1,178 72,642 Samyang Genex Co., Ltd. 6,570 652,949 TS Corp. 7,400 277,928 ----------------- 4,883,351 AIRLINES 0.0% Korea Airport Service Co., Ltd. 12,910 676,272 BANKS & CREDIT INSTITUTIONS 0.3% Daegu Bank 143,280 2,595,218 Pusan Bank 290,160 4,303,462 ----------------- 6,898,680 BASIC MINERALS & METALS 0.2% KISWIRE Ltd. 27,650 876,209 Korea Iron & Steel Co., Ltd. 17,020 697,588 Korea Zinc Co., Ltd. 27,950 2,967,374 ----------------- 4,541,171
NUMBER OF VALUE SECURITY SHARES ($) CHEMICALS & RUBBER 0.2% Cheil Industries, Inc. 59,880 2,398,112 Honam Petrochemical Corp. 4,780 413,273 Korea Kumho Petrochemical Co., Ltd. (KKPC) 23,260 809,659 Korean Petrochemical Industrial Co., Ltd. 3,550 163,765 ----------------- 3,784,809 COMMUNICATIONS UTILITIES 0.3% LG Dacom Corp. 31,980 753,984 LG Telecom Ltd. * 180,580 2,046,341 LS Cable Ltd. 62,330 2,717,652 ----------------- 5,517,977 CONSTRUCTION & HOMEBUILDING 0.2% Kolon Engineering & Construction Co., Ltd. 8,510 139,564 Kyeryong Construction Industrial Co., Ltd. 17,170 695,181 Poonglim Industrial Co., Ltd. 52,010 399,053 Sam Whan Corp. 30,140 754,911 Sambu Construction Co., Ltd. 28,810 1,068,069 Sungjee Construction Co., Ltd. 19,410 411,034 Sungwon Corp. * 51,270 272,096 ----------------- 3,739,908 CONSTRUCTION MATERIALS 0.1% Asia Cement Co., Ltd. 19,410 1,031,569 Hyundai Cement Co., Ltd. 10,980 411,983 ----------------- 1,443,552 DRUGS & PHARMACEUTICALS 0.1% Choongwae Pharma Corp. 5,150 223,760 Daewoong Co., Ltd. 13,880 354,292 Handok Pharmaceuticals Co., Ltd. 3,970 67,671 Il Dong Pharmaceutical Co., Ltd. 31,993 1,322,840 Ilsung Pharmaceuticals Co., Ltd. 2,155 207,263 ----------------- 2,175,826 ELECTRIC UTILITIES 0.0% YESCO Co., Ltd. 3,580 111,495 FINANCIAL INVESTMENTS 0.0% Green Cross Holdings Corp. 5,182 377,303 GAS & OTHER PUBLIC UTILITIES 0.1% E1 Corp. 11,680 693,118 KyungDong City Gas Co., Ltd. 410 15,184 Pusan City Gas Co., Ltd. 3,000 69,670 Samchully Co., Ltd. 7,900 1,152,166 Seoul City Gas Co., Ltd. 8,380 615,831 ----------------- 2,545,969 GOVERNMENT AIRCRAFT & DEFENSE 0.2% Hyundai Mipo Dockyard Co., Ltd. 19,630 3,605,462 INFORMATION & SERVICES 0.1% KCC Engineering & Construction Co., Ltd. 22,562 981,661
See financial notes. 90 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) INSTRUMENTS 0.1% INTOPS Co., Ltd. 33,570 985,431 INSURANCE 0.2% First Fire & Marine Insurance Co., Ltd. * 107,530 546,771 Korean Reinsurance Co. 199,501 2,612,550 ----------------- 3,159,321 IT HARDWARE 0.0% Sam Young Electronics Co., Ltd. 13,930 118,930 LAND & WATER TRANSPORTATION 0.0% Korea Line Corp. 7,860 501,395 Sebang Co., Ltd. 2,220 23,509 ----------------- 524,904 METAL PRODUCTS & MACHINERY 0.3% Doosan Corp. * 48,940 3,992,512 SFA Engineering Corp. 29,719 1,105,170 ----------------- 5,097,682 MISCELLANEOUS FINANCE 0.1% Shinyoung Securities Co., Ltd. 21,540 1,085,242 OIL DISTRIBUTION 0.0% Daesung Industrial Co., Ltd. 4,200 396,429 PUBLISHING, BROADCASTING & CINEMA 0.0% Daekyo Co., Ltd. 60 5,140 REAL ESTATE DEVELOPMENT 0.1% Halla Engineering & Construction Corp. 52,450 1,221,273 RESTAURANTS, HOTELS & THEATERS 0.0% Paradise Co., Ltd. 179,342 690,960 RETAIL 0.0% GS Home Shopping, Inc. 4,000 290,152 SOAPS & COSMETICS 0.1% Pacific Corp. 9,180 1,347,881 SOFTWARE 0.1% Daou Technology Inc. 122,640 1,038,275 TEXTILES & APPAREL 0.0% Ilshin Spinning Co., Ltd. 1,547 85,177 WHOLESALE 0.2% Dong Ah Tire & Rubber Co., Ltd. 6,440 37,354 Hanwha Corp. 88,360 3,584,546 Youngone Corp. 31,770 167,407 ----------------- 3,789,307 ----------------- 61,119,540 SPAIN 2.2% - ------------------------------------------------------------------ AIRLINES 0.5% Iberia Lineas Aereas de Espana S.A. (a) 1,914,000 10,236,672 CONSTRUCTION MATERIALS 0.5% Cementos Portland Valderrivas S.A. (a) 58,285 8,811,793 ELECTRIC UTILITIES 0.1% Union Fenosa SA 13,159 711,864
NUMBER OF VALUE SECURITY SHARES ($) FOREST PRODUCTS & PAPER 0.0% Iberpapel Gestion S.A. 10,870 298,981 GAS & OTHER PUBLIC UTILITIES 0.1% Enagas S.A. (a) 83,803 2,163,516 INSTRUMENTS 0.0% Indo Internacional S.A. 24,259 322,768 METAL PRODUCTS & MACHINERY 0.2% Construcciones y Auxiliar de Ferrocarriles S.A. 10,053 3,049,277 PUBLISHING, BROADCASTING & CINEMA 0.1% Gestevision Telecinco S.A. (a) 70,056 2,030,818 RESTAURANTS, HOTELS & THEATERS 0.7% NH Hoteles S.A. (a)* 279,000 6,425,335 Sol Melia S.A. 321,503 7,739,380 ----------------- 14,164,715 TEXTILES & APPAREL 0.0% Tavex Algodonera S.A. (a) 103,292 473,850 WHOLESALE 0.0% Unipapel S.A. 11,036 361,752 ----------------- 42,626,006 SWEDEN 2.7% - ------------------------------------------------------------------ AIRLINES 0.4% SAS AB (a)* 360,000 6,628,431 AUTOS 0.2% Haldex AB 7,858 189,283 Trelleborg AB 133,524 3,477,812 ----------------- 3,667,095 BASIC MINERALS & METALS 0.5% Boliden AB (a)* 426,062 9,410,566 Profilgruppen AB 3,615 42,487 ----------------- 9,453,053 CELLULAR & WIRELESS 0.0% Partnertech AB 6,597 107,981 CHEMICALS & RUBBER 0.0% Geveko AB 10,708 463,848 COMMUNICATIONS UTILITIES 0.5% Tele2 AB, Class B (a) 510,000 8,376,322 FINANCIAL INVESTMENTS 0.0% Havsfrun AB, Shares B 7,429 38,620 Novestra AB 66,151 150,017 ----------------- 188,637 FOREST PRODUCTS & PAPER 0.0% Rorvik Timber AB, Shares B * 4,599 38,105 GOVERNMENT AIRCRAFT & DEFENSE 0.3% Saab AB, Series B 213,000 5,748,334 LAND & WATER TRANSPORTATION 0.0% Rederi AB Transatlantic 65,778 490,060 METAL PRODUCTS & MACHINERY 0.0% AB Traction, Shares B 10,017 110,628 Midway Holdings AB 472 5,521 ----------------- 116,149
See financial notes. Laudus Funds Annual Report 91 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) MISCELLANEOUS FINANCE 0.0% Svolder AB 12,946 148,428 REAL ESTATE DEVELOPMENT 0.8% Castellum AB 433,187 6,257,106 Fabege AB 226,337 5,683,063 HEBA Fastighets AB 600 17,486 Home Properties AB 3,078 43,464 Hufvudstaden AB, Shares A 10,124 115,988 Kungsleden AB 189,491 3,409,114 Lennart Wallenstam Byggnads AB 3,434 73,512 ----------------- 15,599,733 RESTAURANTS, HOTELS & THEATERS 0.0% Cherryforetagen AB * 4,292 26,671 SOFTWARE 0.0% Addnode AB * 34,730 146,250 IBS AB * 4,816 17,337 Observer AB * 14,464 65,764 ----------------- 229,351 WHOLESALE 0.0% OEM International AB 10,977 330,131 ----------------- 51,612,329 SWITZERLAND 8.1% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Emmi AG -- Reg'd 15,116 1,930,557 Groupe Minoteries S.A. 844 169,985 ----------------- 2,100,542 AUTOS 0.3% Rieter Holding AG -- Reg'd 10,153 5,070,111 BANKS & CREDIT INSTITUTIONS 0.6% Banque Cantonale de Geneve 8,832 2,150,080 Banque Cantonale Vaudoise (BCV) -- Reg'd 10,365 4,925,658 Graubunder Kantonalbank 913 806,398 Verwaltungs-und Privat-Bank AG 16,145 3,964,166 ----------------- 11,846,302 BASIC MINERALS & METALS 0.4% Georg Fischer AG -- Reg'd. * 10,560 7,640,385 UMS Schweizerische Metallwerke Holding AG * 18,631 415,167 ----------------- 8,055,552 CHEMICALS & RUBBER 0.5% Clariant AG -- Reg'd * 518,000 8,910,063 COMMUNICATIONS UTILITIES 0.1% Ascom Holding AG 39,850 695,972 Mobilezone Holding AG 129,000 784,249 ----------------- 1,480,221 CONSTRUCTION MATERIALS 0.2% Forbo Holding AG -- Reg'd * 7,335 3,265,045 sia Abrasives Holding AG -- Reg'd 43 16,583 Vetropack Holding S.A. 546 750,834 ----------------- 4,032,462
NUMBER OF VALUE SECURITY SHARES ($) DRUGS & PHARMACEUTICALS 0.6% Ciba Specialty Chemicals AG -- Reg'd 133,899 8,840,425 Schweizerhall Holding AG 10,924 1,708,069 Siegfried Holding AG 8,385 1,235,292 ----------------- 11,783,786 ELECTRIC UTILITIES 0.4% Elektrizitaets-Gesellschaft Laufenburg AG 4,178 4,843,243 Energiedienst Holding AG -- Reg'd * 4,536 2,288,941 Romande Energie Holding S.A. 331 488,594 ----------------- 7,620,778 FOREST PRODUCTS & PAPER 0.1% CPH Chemie & Papier Holding AG 102 226,639 Harwanne Compagnie de participations industielles et financieres S.A. 1,710 429,270 Industrieholding Cham AG 2,117 801,399 ----------------- 1,457,308 FURNITURE & HOUSEHOLD ITEMS 0.2% Daetwyler Holding AG 445 2,653,191 Swatch Group 1,993 528,002 ----------------- 3,181,193 INFORMATION & SERVICES 0.2% Kuoni Reisen Holding AG -- Reg'd * 6,591 3,953,740 INSTRUMENTS 0.1% Carlo Gavazzi Holding AG * 2,007 453,439 Comet Holding AG 2,000 472,781 Inficon Holding AG 8,287 1,347,527 ----------------- 2,273,747 INSURANCE 2.5% Baloise Holding AG, Reg'd 145,000 15,140,642 Helvetia Holding AG 18,857 8,099,663 Schweiz Natl-Vers-Ges 3,206 2,509,099 Swiss Life Holding -- Reg'd 88,320 22,226,097 Vaudoise Assurances Holding S.A. -- Reg'd 4,741 857,532 ----------------- 48,833,033 IT HARDWARE 0.1% Huber & Suhner AG 11,243 2,335,223 Schaffner Holding AG * 660 124,666 SEZ Holding AG * 6,476 215,095 ----------------- 2,674,984 LAND & WATER TRANSPORTATION 0.0% Jungfraubahn Holding AG 19,849 771,270 METAL PRODUCTS & MACHINERY 0.5% Bucher Industries AG -- Reg'd 31,196 4,212,997 Conzzeta Holding AG 1,075 2,084,188 Feintool International Holding AG (a) 1,932 763,489 Phoenix Mecano AG 560 268,206
See financial notes. 92 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) Tornos S.A. * 45,000 674,260 WMH Walter Meier AG, Class A -- Reg'd 4,831 845,961 ----------------- 8,849,101 REAL ESTATE DEVELOPMENT 0.7% Allreal Holding AG -- Reg'd 12,408 1,584,359 Flughafen Zuerich AG -- Reg'd 13,588 5,267,897 Intershop Holdings AG 6,982 1,805,830 LO Holding Lausanne-Ouchy S.A. 181 177,427 MCH Messe Schweiz Holdings AG 1,293 643,487 Pax-Anlage AG 60 38,469 PSP Swiss Property AG * 37,600 2,292,204 Zueblin Immobilien Holding AG * 84,889 877,119 ----------------- 12,686,792 RETAIL 0.1% Charles Vogele Holding AG * 20,648 2,265,549 SOFTWARE 0.0% Crealogix Holding AG * 137 10,665 Kardex AG * 17,835 756,442 ----------------- 767,107 WHOLESALE 0.4% Also Holding -- Reg'd 15,840 877,838 Bobst Group AG 60,400 3,697,260 Eichhof Holding AG 420 692,890 Metraux Services Holding AG 1,633 295,574 Valora Holding AG 11,250 3,213,772 ----------------- 8,777,334 ----------------- 157,390,975 UNITED KINGDOM 18.7% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.9% Anglo-Eastern Plantations plc 24,668 151,566 Carr's Milling Industries plc 27,358 292,294 Nichols plc 53,309 322,203 Robert Wiseman Dairies plc 38,319 346,113 Tate & Lyle plc 1,407,761 15,968,571 Uniq plc 35,866 135,747 ----------------- 17,216,494 AUTOS 0.6% GKN plc 1,565,681 11,743,364 BANKS & CREDIT INSTITUTIONS 0.1% Hitachi Capital UK plc 93,010 416,105 Intermediate Capital Group plc 123 4,720 Kensington Group plc 69,366 909,881 NETeller plc (a)(c)* 184,264 538,633 ----------------- 1,869,339 BASIC MINERALS & METALS 1.5% Antofagasta plc 2,069,037 21,118,136 Avocet Mining plc * 288,000 713,964 Bodycote International plc 842,812 5,153,290 Castings plc 97,863 519,965 Golden Prospect plc 380,000 461,828 ----------------- 27,967,183
NUMBER OF VALUE SECURITY SHARES ($) CHEMICALS & RUBBER 0.0% Elementis plc 372,704 659,216 COMMERCIAL AIRCRAFT & COMPONENTS 0.3% Meggitt plc 676,101 3,968,197 Rolls-Royce Group plc * 29,895 291,606 Senior plc 641,343 1,019,118 ----------------- 5,278,921 COMMUNICATIONS UTILITIES 1.3% Cable & Wireless 6,651,000 21,883,989 COLT Telecom Group S.A. (a)* 325,917 1,143,821 Eckoh Technologies plc * 960,000 193,636 Kingston Communications (Hull) plc 1,165,693 1,791,512 Thus Group plc 1,622 5,890 ----------------- 25,018,848 CONSTRUCTION MATERIALS 0.2% Cookson Group plc 288,257 3,527,375 DRUGS & PHARMACEUTICALS 0.0% Goldshield Group plc 67,220 226,047 ELECTRIC UTILITIES 1.8% British Energy Group plc * 1,670,000 16,037,227 International Power plc 2,339,058 18,282,492 ----------------- 34,319,719 FOREST PRODUCTS & PAPER 0.1% DS Smith plc 366,234 1,609,410 FURNITURE & HOUSEHOLD ITEMS 0.4% British Polythene Industries plc 28,873 285,555 Carclo plc 184,000 396,483 F.W. Thorpe plc 35,881 446,598 Galiform plc * 1,789,736 5,485,407 Volex Group plc * 78,379 223,645 ----------------- 6,837,688 GAS & OTHER PUBLIC UTILITIES 0.0% Shanks Group plc 33,280 175,945 GOVERNMENT AIRCRAFT & DEFENSE 0.2% Chemring Group plc 228 8,350 E2V Technologies plc 25,620 195,688 Trafficmaster plc * 252,362 339,715 Vt Group plc 398,329 3,854,255 ----------------- 4,398,008 INFORMATION & SERVICES 1.0% AMEC plc 659,095 6,890,142 Anite Group plc 866,101 1,395,786 Christie Group plc 52,243 258,558 Communisis plc 397,462 500,573 Creston plc 114,869 412,234 Glotel plc 132,000 155,995 Group 4 Securicor plc 492,718 1,950,236 Harvey Nash Group plc * 189,717 280,926 Interior Services Group plc 90,000 561,449 Keller Group plc 194,073 3,524,431 Macfarlane Group plc 19,235 11,514 Management Consulting Group plc 416,977 379,943 Metnor Group plc 44,000 363,659 MICE Group plc 648,992 308,462
See financial notes. Laudus Funds Annual Report 93 LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Next Fifteen Communications plc 156,902 293,835 Nord Anglia Education plc * 127,950 807,377 Opsec Security Group plc * 82,113 150,250 Tenon Group plc 416,000 521,635 Tribal Group plc 133,542 320,764 Waterman Group plc 104,000 375,544 ----------------- 19,463,313 INSTRUMENTS 0.0% Dialight plc 108,000 443,996 Oxford Instruments plc 69,597 339,131 ----------------- 783,127 INSURANCE 2.2% Brit Insurance Holdings plc 854,898 5,424,712 Chaucer Holdings plc 873,000 1,620,962 Friends Provident plc 4,614,802 17,501,047 Old Mutual plc 4,101,000 13,282,902 Resolution plc 437,600 5,339,181 ----------------- 43,168,804 IT HARDWARE 0.1% Filtronic plc (a) 197,424 521,129 TT electronics plc 292,356 1,378,634 Zetex plc 338,707 598,481 ----------------- 2,498,244 LAND & WATER TRANSPORTATION 0.0% Braemar Seascope Group plc 64,440 513,508 Clarkson plc 14,765 281,836 Ocean Wilsons Holdings Ltd. 1,461 23,198 ----------------- 818,542 MAINFRAME & MINICOMPUTERS 0.0% Psion plc 37,934 126,156 METAL PRODUCTS & MACHINERY 0.1% Alumasc Group plc 90,871 394,594 Delta plc 131,334 354,049 Eleco plc 126,539 240,636 Trifast plc 275,125 436,227 Wagon plc 103,148 273,648 ----------------- 1,699,154 MISCELLANEOUS FINANCE 0.6% Investec plc 960,029 12,445,008 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0% Laird Group plc 9,678 104,105 PUBLISHING, BROADCASTING & CINEMA 0.5% Media Square plc 269,519 53,037 Trinity Mirror plc 846,058 8,839,082 ----------------- 8,892,119 REAL ESTATE DEVELOPMENT 1.9% Enterprise Inns plc 1,696,800 22,364,631 Mapeley Ltd. 53,750 4,109,133 Minerva plc * 465,052 3,501,695 Rugby Estates plc 11,400 136,548 Shaftesbury plc 396,550 5,915,093 Warner Estate Holdings plc 29,632 472,732 ----------------- 36,499,832
NUMBER OF VALUE SECURITY SHARES ($) REAL ESTATE INVESTMENT TRUSTS 0.5% British Land Co Plc 99,748 3,008,762 Brixton plc 706,000 7,071,620 ----------------- 10,080,382 RESTAURANTS, HOTELS & THEATERS 3.1% Compass Group plc 1,828,000 12,243,505 Greene King plc 351,631 7,632,291 Luminar plc 1,176 17,472 Marston's plc 532,800 4,629,482 Millennium & Copthorne Hotel plc 618,628 8,285,883 Punch Taverns plc 144,500 3,548,436 Regent Inns plc * 369,770 792,757 Sportech plc * 1,777,556 550,929 Ultimate Leisure Group plc 90,000 336,502 Whitbread plc 342,568 12,755,693 William Hill plc 757,600 9,491,752 ----------------- 60,284,702 RETAIL 0.2% Alliance Boots plc 51,392 1,038,936 Amstrad plc 136,313 386,894 Jacques Vert plc * 281,723 127,509 Jessops plc 214,138 63,198 John David Group plc 122,000 1,050,940 Smiths News plc 198,961 544,460 Woolworths Group plc 607,322 367,308 ----------------- 3,579,245 SOAPS & COSMETICS 0.1% McBride plc 241,592 1,137,090 SOFTWARE 0.9% Alphameric plc 356,395 346,523 Computacenter plc 436,666 2,394,652 Dimension Data Holdings plc 3,734,795 3,687,486 Horizon Technology Group plc * 77,652 118,044 Intec Telecom Systems plc * 1,048,000 867,451 InTechnology plc * 350,000 268,696 Kewill Systems plc * 16,027 24,916 Logica CMG plc 2,044,910 7,170,237 Microgen plc 200,943 201,094 Morse plc 434,485 793,013 Northgate Information Solutions plc 494,987 809,242 RM plc 39,188 146,713 ----------------- 16,828,067 TEXTILES & APPAREL 0.0% Alexon Group plc 88,568 363,427 Low & Bonar plc 45,358 124,961 Marchpole Holdings plc 7,895 25,891 ----------------- 514,279 WHOLESALE 0.1% Acal plc 82,250 648,960 Dawson Holdings plc 194,763 413,925 Fayrewood plc 71,615 147,442 James Latham plc 72,000 320,208 ----------------- 1,530,535 ----------------- 361,300,261
See financial notes. 94 Laudus Funds Annual Report LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND
NUMBER OF VALUE SECURITY SHARES ($) UNITED STATES 0.1% - ------------------------------------------------------------------ FOREST PRODUCTS & PAPER 0.1% Domtar Corp. * 202,200 1,840,729 ------------------ TOTAL COMMON STOCK (COST $1,528,627,990) 1,869,932,546 ------------------ PREFERRED STOCK 0.1% OF NET ASSETS AUSTRIA 0.0% - ------------------------------------------------------------------ MIBA AG 1,600 242,804 GERMANY 0.1% - ------------------------------------------------------------------ Jungheinrich AG (a) 47,379 1,728,156 Villeroy & Boch AG (a) 17,648 351,729 ----------------- 2,079,885 UNITED KINGDOM 0.0% - ------------------------------------------------------------------ Rolls-Royce Group plc * 54,759,999 110,454 ----------------- TOTAL PREFERRED STOCK (COST $1,621,605) 2,433,143 RIGHTS 0.1% OF NET ASSETS AUSTRIA 0.0% - ------------------------------------------------------------------ Conwert Immobilien Invest AG * 66,243 -- BELGIUM 0.0% - ------------------------------------------------------------------ Carrieres Unies Porphyre * 11 -- JAPAN 0.0% - ------------------------------------------------------------------ Dowa Mining * 391,000 198,586 SWEDEN 0.0% - ------------------------------------------------------------------ Fabege Ab * 226,337 174,425 UNITED KINGDOM 0.1% - ------------------------------------------------------------------ Meggit plc * 338,050 660,243 ----------------- TOTAL RIGHTS (COST $ -- ) 1,033,254 WARRANTS 0.0% OF NET ASSETS HONG KONG 0.0% - ------------------------------------------------------------------ Champion Technology Holdings Ltd. * 992,339 39,371 ----------------- TOTAL WARRANTS (COST $ -- ) 39,371 SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT 1.7% OF NET ASSETS REPURCHASE AGREEMENT 1.7% - ------------------------------------------------------------------ Fixed Income Clearing Corp. dated 03/30/07, due 04/02/07 at 5.00%, with a maturity value of $33,121,795 (fully collateralized by Federal Home Loan Bank with a value of $33,770,531.) 33,108,000 33,108,000 ----------------- TOTAL SHORT-TERM INVESTMENT (COST $33,108,000) 33,108,000 - ------------------------------------------------------------------ END OF INVESTMENTS. At 03/31/07 the tax basis cost of the fund's investments was $1,577,902,473 and the unrealized appreciation and depreciation were $365,059,527 and ($36,415,686), respectively, with a net unrealized appreciation of $328,643,841. NUMBER OF VALUE SECURITY SHARES ($) COLLATERAL INVESTED FOR SECURITIES ON LOAN 7.6% OF NET ASSETS State Street Navigator Security Lending Prime Portfolio 146,492,602 146,492,602 - ------------------------------------------------------------------ END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN.
At 03/31/07, the prices of certain foreign securities held by the fund aggregating $1,709,168,468 were adjusted from their closing market prices following the guidelines adopted by the fund's board of trustees. * Non-income producing security. (a) All or a portion of this security is on loan. (b) Bankrupt security/delisted. (c) Fair-valued by Management. See financial notes. Laudus Funds Annual Report 95 LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST/PROCEEDS VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 95.7% COMMON STOCK 15,894,523 18,495,591 3.6% SHORT-TERM INVESTMENT 692,469 692,469 - ----------------------------------------------------------------- 99.3% TOTAL INVESTMENTS 16,586,992 19,188,060 (94.8)% SHORT SALES (18,328,050) (18,323,387) 95.5% DEPOSITS WITH BROKER AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT 18,463,415 18,463,415 0.0% OTHER ASSETS AND LIABILITIES (4,830) - ----------------------------------------------------------------- 100.0% NET ASSETS 19,323,258
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK (A) 95.7% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 2.7% - ----------------------------------------------------------------- General Mills, Inc. 3,300 192,126 Kellogg Co. 4,800 246,864 The Pepsi Bottling Group, Inc. 2,850 90,887 -------------- 529,877 AIRLINES 0.6% - ----------------------------------------------------------------- FedEx Corp. 1,000 107,430 BANKS & CREDIT INSTITUTIONS 6.4% - ----------------------------------------------------------------- Bank of America Corp. 14,500 739,790 Comerica, Inc. 3,400 201,008 Harley-Davidson, Inc. 4,800 282,000 Northern Trust Corp. 200 12,028 -------------- 1,234,826 BASIC MINERALS & METALS 2.2% - ----------------------------------------------------------------- Allegheny Technologies, Inc. 200 21,338 Nucor Corp. 6,060 394,688 -------------- 416,026 BIOTECHNOLOGY 2.0% - ----------------------------------------------------------------- Celgene Corp. * 7,500 393,450 CELLULAR & WIRELESS 1.7% - ----------------------------------------------------------------- NII Holdings, Inc. * 4,470 331,585 CHEMICALS & RUBBER 1.5% - ----------------------------------------------------------------- The Sherwin-Williams Co. 4,500 297,180 COMMUNICATIONS UTILITIES 5.5% - ----------------------------------------------------------------- AT&T Corp. 22,700 895,061 Google, Inc., Class A * 205 93,923 Level 3 Communications, Inc. * 10,900 66,490 -------------- 1,055,474 ELECTRIC UTILITIES 6.3% - ----------------------------------------------------------------- Consolidated Edison, Inc. 4,500 229,770 Edison International 8,250 405,323 PG&E Corp. 12,100 584,067 -------------- 1,219,160
NUMBER OF VALUE SECURITY SHARES ($) FOREST PRODUCTS & PAPER 1.5% - ----------------------------------------------------------------- 3M Co. 110 8,407 International Paper Co. 7,920 288,288 -------------- 296,695 HEALTH CARE & HOSPITAL 1.1% - ----------------------------------------------------------------- Health Net, Inc. * 200 10,762 Humana, Inc. * 3,400 197,268 -------------- 208,030 INFORMATION & SERVICES 2.6% - ----------------------------------------------------------------- Accenture Ltd., Class A 7,530 290,206 Manpower, Inc. 1,360 100,327 The Dun & Bradstreet Corp. 1,295 118,104 -------------- 508,637 INSTRUMENTS 3.5% - ----------------------------------------------------------------- Honeywell International, Inc. 11,800 543,508 Waters Corp. * 2,300 133,400 -------------- 676,908 INSURANCE 11.9% - ----------------------------------------------------------------- ACE Ltd. 10,200 582,012 Everest Re Group Ltd. 1,800 173,106 Loews Corp. 15,000 681,450 The Allstate Corp. 13,620 818,017 The Chubb Corp. 600 31,002 XL Capital Ltd., Class A 200 13,992 -------------- 2,299,579 INTEGRATED OIL COMPANIES 1.6% - ----------------------------------------------------------------- Exxon Mobil Corp. 3,920 295,764 Hess Corp. 400 22,188 -------------- 317,952 IT HARDWARE 7.6% - ----------------------------------------------------------------- Amphenol Corp., Class A 1,900 122,683 Avaya, Inc. * 11,400 134,634 Cisco Systems, Inc. * 17,800 454,434 Flextronics International Ltd. * 4,700 51,418 Harris Corp. 2,710 138,074 L-3 Communications Holdings, Inc. 2,500 218,675 MEMC Electronic Materials, Inc. * 5,600 339,248 -------------- 1,459,166 LAND & WATER TRANSPORTATION 4.2% - ----------------------------------------------------------------- Union Pacific Corp. 7,900 802,245 MAINFRAME & MINICOMPUTERS 1.1% - ----------------------------------------------------------------- Apple, Inc. * 2,290 212,764 METAL PRODUCTS & MACHINERY 1.8% - ----------------------------------------------------------------- Parker Hannifin Corp. 3,740 322,799 Terex Corp. * 400 28,704 -------------- 351,503 MISCELLANEOUS FINANCE 4.7% - ----------------------------------------------------------------- Chicago Mercantile Exchange Holdings, Inc., Class A 616 327,995 Merrill Lynch & Co., Inc. 7,200 588,024 -------------- 916,019
See financial notes. 96 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) OIL & COAL RESOURCES 0.9% - ----------------------------------------------------------------- XTO Energy, Inc. 3,300 180,873 OIL DRILLING & SERVICES 1.1% - ----------------------------------------------------------------- ENSCO International, Inc. 3,100 168,640 Noble Corp. 620 48,782 -------------- 217,422 PUBLISHING, BROADCASTING & CINEMA 1.0% - ----------------------------------------------------------------- CBS Corp., Class B 6,050 185,070 RESTAURANTS, HOTELS & THEATERS 1.2% - ----------------------------------------------------------------- McDonald's Corp. 3,960 178,398 Yum! Brands, Inc. 800 46,208 -------------- 224,606 RETAIL 6.8% - ----------------------------------------------------------------- Abercrombie & Fitch Co., Class A 2,900 219,472 American Eagle Outfitters, Inc. 3,600 107,964 AutoZone, Inc. * 1,900 243,466 CarMax, Inc. * 1,000 24,540 CVS/Caremark Corp. 980 33,457 Federated Department Stores, Inc. 3,100 139,655 J.C. Penney Co., Inc. 4,035 331,515 Nordstrom, Inc. 4,140 219,172 -------------- 1,319,241 SOAPS & COSMETICS 0.9% - ----------------------------------------------------------------- The Clorox Co. 2,790 177,695 SOFTWARE 12.1% - ----------------------------------------------------------------- BMC Software, Inc. * 8,400 258,636 Cadence Design Systems, Inc. * 5,953 125,370 Cognizant Technology Solutions Corp., Class A * 4,593 405,424 Computer Sciences Corp. * 4,600 239,798
NUMBER OF VALUE SECURITY SHARES ($) International Business Machines Corp. 8,300 782,358 > Intuit, Inc. * 7,100 194,256 Oracle Corp. * 18,000 326,340 -------------- 2,332,182 WHOLESALE 1.2% - ----------------------------------------------------------------- W.W. Grainger, Inc. 2,900 223,996 -------------- TOTAL COMMON STOCK (COST $15,894,523) 18,495,591 -------------- FACE AMOUNT VALUE SECURITY ($) ($) SHORT-TERM INVESTMENT (A) 3.6% OF NET ASSETS REPURCHASE AGREEMENT 3.6% - ----------------------------------------------------------------- Custodian Trust Company, dated 03/30/07, due 04/02/07 at 5.10% with a maturity value of $692,763 (fully collateralized by U.S. Treasury Bond with a value of $718,285) 692,469 692,469 -------------- TOTAL SHORT-TERM INVESTMENT (COST $692,469) 692,469 - ----------------------------------------------------------------- END OF INVESTMENTS.
At 3/31/07 the tax basis cost of the fund's investments was $16,681,100 and the unrealized appreciation and depreciation was $2,622,567 and ($115,607), respectively, with a net unrealized appreciation of $2,506,960. * Non-income producing security. (a) All long positions are pledged as collateral for securities sold short. See financial notes. Laudus Funds Annual Report 97 LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) SHORT SALES 94.8% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 3.1% - ----------------------------------------------------------------- PepsiCo, Inc. 4,200 266,952 Wm. Wrigley Jr. Co. 6,375 324,679 -------------- 591,631 BANKS & CREDIT INSTITUTIONS 6.8% - ----------------------------------------------------------------- American Express Co. 5,100 287,640 Commerce Bancorp, Inc. 6,800 226,984 Fifth Third Bancorp 1,440 55,714 Ford Motor Co. 63,600 501,804 Sovereign Bancorp, Inc. 9,800 249,312 -------------- 1,321,454 BIOTECHNOLOGY 3.2% - ----------------------------------------------------------------- Amgen, Inc. * 9,000 502,920 Genentech, Inc. * 1,400 114,968 -------------- 617,888 CHEMICALS & RUBBER 2.8% - ----------------------------------------------------------------- The Dow Chemical Co. 11,720 537,479 COMMUNICATIONS UTILITIES 3.9% - ----------------------------------------------------------------- Virgin Media, Inc. 190 4,797 Yahoo! Inc. * 24,200 757,218 -------------- 762,015 CONSTRUCTION & HOMEBUILDING 0.7% - ----------------------------------------------------------------- Pulte Homes, Inc. 5,130 135,740 DRUGS & PHARMACEUTICALS 3.3% - ----------------------------------------------------------------- Allergan, Inc. 2,200 243,804 Eli Lilly and Co. 7,500 402,825 -------------- 646,629 ELECTRIC UTILITIES 7.1% - ----------------------------------------------------------------- CenterPoint Energy, Inc. 5,410 97,055 Dominion Resources, Inc. 3,580 317,797 Duke Energy Corp. 19,000 385,510 The AES Corp. * 1,060 22,811 TXU Corp. 8,600 551,260 -------------- 1,374,433 FURNITURE & HOUSEHOLD ITEMS 0.9% - ----------------------------------------------------------------- Newell Rubbermaid, Inc. 5,700 177,213 HEALTH CARE & HOSPITAL 1.0% - ----------------------------------------------------------------- UnitedHealth Group, Inc. 3,700 195,989 INFORMATION & SERVICES 1.1% - ----------------------------------------------------------------- Apollo Group, Inc., Class A * 4,900 215,110 INSTRUMENTS 1.9% - ----------------------------------------------------------------- Medtronic, Inc. 4,000 196,240 St. Jude Medical, Inc. * 4,300 161,723 -------------- 357,963 INSURANCE 2.6% - ----------------------------------------------------------------- The Progressive Corp. 22,800 497,496
NUMBER OF VALUE SECURITY SHARES ($) IT HARDWARE 13.0% - ----------------------------------------------------------------- Advanced Micro Devices, Inc. * 490 6,399 Altera Corp. * 12,800 255,872 Analog Devices, Inc. 10,100 348,349 Broadcom Corp., Class A * 4,030 129,242 Intel Corp. 34,400 658,072 KLA-Tencor Corp. 6,600 351,912 Linear Technology Corp. 12,400 391,716 Maxim Integrated Products, Inc. 1,100 32,340 QUALCOMM, Inc. 7,300 311,418 Xilinx, Inc. 1,200 30,876 -------------- 2,516,196 LAND & WATER TRANSPORTATION 2.6% - ----------------------------------------------------------------- United Parcel Service, Inc., Class B 7,020 492,102 MAINFRAME & MINICOMPUTERS 1.6% - ----------------------------------------------------------------- Dell, Inc. * 13,700 317,977 METAL PRODUCTS & MACHINERY 3.5% - ----------------------------------------------------------------- The Procter & Gamble Co. 10,600 669,496 MISCELLANEOUS FINANCE 2.6% - ----------------------------------------------------------------- E*TRADE Financial Corp. * 5,180 109,919 Legg Mason, Inc. 4,200 395,682 -------------- 505,601 OIL & COAL RESOURCES 3.4% - ----------------------------------------------------------------- EOG Resources, Inc. 3,000 214,020 Southwestern Energy Co. * 5,400 221,292 Ultra Petroleum Corp. * 4,200 223,146 -------------- 658,458 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.0% - ----------------------------------------------------------------- Lexmark International, Inc., Class A * 100 5,846 PUBLISHING, BROADCASTING & CINEMA 0.6% - ----------------------------------------------------------------- The Interpublic Group of Cos., Inc. * 9,000 110,790 REAL ESTATE INVESTMENT TRUSTS 7.6% - ----------------------------------------------------------------- Boston Properties, Inc. 2,600 305,240 Equity Residential 9,500 458,185 General Growth Properties, Inc. 6,700 432,619 Plum Creek Timber Co., Inc. 6,800 268,056 -------------- 1,464,100 RESTAURANTS, HOTELS & THEATERS 1.2% - ----------------------------------------------------------------- Starbucks Corp. * 7,500 235,200 RETAIL 8.7% - ----------------------------------------------------------------- Amazon.com, Inc. * 11,050 439,680 Bed, Bath & Beyond, Inc. * 1,901 76,363 Costco Wholesale Corp. 3,500 188,440 eBay, Inc. * 21,020 696,813 The Home Depot, Inc. 450 16,533 Walgreen Co. 900 41,301 Whole Foods Market, Inc. 4,860 217,971 -------------- 1,677,101
See financial notes. 98 Laudus Funds Annual Report LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) SOAPS & COSMETICS 0.1% - ----------------------------------------------------------------- Johnson & Johnson 300 18,078 SOFTWARE 11.5% - ----------------------------------------------------------------- Adobe Systems, Inc. * 12,400 517,080 Autodesk, Inc. * 6,200 233,120 Citrix Systems, Inc. * 2,940 94,168 Electronic Arts, Inc. * 8,500 428,060 Microsoft Corp. 29,300 816,591 VeriSign, Inc. * 5,270 132,383 -------------- 2,221,402 -------------- TOTAL SHORT SALES (PROCEEDS $18,328,050) 18,323,387 - ----------------------------------------------------------------- END OF SHORT SALE POSITIONS.
* Non-income producing security. See financial notes. Laudus Funds Annual Report 99 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST/PROCEEDS VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 96.2% COMMON STOCK 17,051,955 19,874,593 --% PREFERRED STOCK 800 836 0.1% RIGHTS -- 5,587 5.7% SHORT-TERM INVESTMENT 1,180,359 1,180,359 - ----------------------------------------------------------------- 102.0% TOTAL INVESTMENTS 18,233,114 21,061,375 (95.5)% SHORT SALES (18,939,163) (19,721,130) 69.6% DEPOSITS WITH BROKER AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT 14,388,573 14,388,573 23.9% OTHER ASSETS AND LIABILITIES 4,931,248 - ----------------------------------------------------------------- 100.0% NET ASSETS 20,660,066
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK (A) 96.2% OF NET ASSETS AUSTRIA 0.5% - ------------------------------------------------------------------ COMMUNICATIONS UTILITIES 0.1% Telekom Austria AG 400 10,051 METAL PRODUCTS & MACHINERY 0.1% Andritz AG 80 20,066 REAL ESTATE DEVELOPMENT 0.3% Immofinanz Immobilien Analagen AG * 3,600 57,896 Meinl European Land Ltd. * 400 11,130 -------------- 69,026 -------------- 99,143 BELGIUM 1.3% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.2% Fortis 1,200 54,779 BASIC MINERALS & METALS 0.2% Umicore 200 35,699 INSTRUMENTS 0.3% Agfa Gevaert N.V. 2,450 55,462 RESTAURANTS, HOTELS & THEATERS 0.3% S.A. D'Ieteren N.V. 160 65,917 RETAIL 0.3% Delhaize Group 645 59,519 -------------- 271,376 DENMARK 0.9% - ------------------------------------------------------------------ BANKS & CREDIT INSTITUTIONS 0.3% Danske Bank A/S 1,100 50,994 BEER, LIQUOR, & TOBACCO 0.2% Carlsberg A/S, Class B 400 43,456 METAL PRODUCTS & MACHINERY 0.4% Vestas Wind Systems A/S * 1,500 83,617 -------------- 178,067 FINLAND 0.5% - ------------------------------------------------------------------ BASIC MINERALS & METALS 0.3% Outokumpu Oyj 1,500 51,631 CHEMICALS & RUBBER 0.2% Kemira Oyj 1,800 41,196 -------------- 92,827
NUMBER OF VALUE SECURITY SHARES ($) FRANCE 4.0% - ------------------------------------------------------------------ AIRLINES 0.3% Air France-KLM 1,200 54,886 AUTOS 0.4% PSA Peugeot Citroen 996 70,227 Societe Fonciere Financiere et de Participations (FFP) 81 22,275 -------------- 92,502 CHEMICALS & RUBBER 0.1% Compagnie Generale des Etablissements Michelin, Class B 120 13,268 COMMUNICATIONS UTILITIES 0.3% Publicis Groupe 1,200 57,924 CONSTRUCTION MATERIALS 0.3% Compagnie de Saint-Gobain 660 64,800 GOVERNMENT AIRCRAFT & DEFENSE 0.3% Beneteau 134 16,188 Thales S.A. 900 52,477 -------------- 68,665 INSURANCE 0.2% CNP Assurances 400 46,809 LAND & WATER TRANSPORTATION 0.1% Financiere de l'Odet 26 11,957 METAL PRODUCTS & MACHINERY 0.2% Valeo S.A. 600 35,294 MISCELLANEOUS FINANCE 0.3% Natixis 2,400 58,749 PUBLISHING, BROADCASTING & CINEMA 0.3% Havas S.A. 6,000 34,708 Thomson 2,000 38,530 -------------- 73,238 REAL ESTATE DEVELOPMENT 0.2% Nexity 400 34,370 RESTAURANTS, HOTELS & THEATERS 0.2% Sodexho Alliance S.A. 690 50,637 SOFTWARE 0.5% Atos Origin S.A. * 800 53,857 Cap Gemini S.A. 600 45,668 -------------- 99,525 TEXTILES & APPAREL 0.3% Christian Dior S.A. 600 73,159 -------------- 835,783 GERMANY 2.0% - ------------------------------------------------------------------ AUTOS 0.4% Bayerische Motoren Werke (BMW) AG 900 53,095 Volkswagen AG 136 20,410 -------------- 73,505 BASIC MINERALS & METALS 0.3% ThyssenKrupp AG 1,313 65,176 CHEMICALS & RUBBER 0.2% Lanxess * 900 46,562
See financial notes. 100 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) COMMERCIAL AIRCRAFT & COMPONENTS 0.2% MTU Aero Engines Holding AG 800 48,081 ELECTRIC UTILITIES 0.2% MVV Energie AG 1,000 37,938 IT HARDWARE 0.3% Infineon Technologies AG * 3,600 56,062 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.1% Heidelberger Druckmaschinen AG 600 27,546 RETAIL 0.2% KarstadtQuelle AG * 1,100 40,451 WHOLESALE 0.1% GEA Group AG 600 16,659 -------------- 411,980 IRELAND 0.5% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.2% Kerry Group plc, Class A 1,800 50,313 CONSTRUCTION MATERIALS 0.3% CRH plc 1,200 51,459 -------------- 101,772 ITALY 2.4% - ------------------------------------------------------------------ AUTOS 0.4% Fiat S.p.A. * 3,000 76,044 CHEMICALS & RUBBER 0.2% Pirelli & C. S.p.A. 36,000 39,815 CONSTRUCTION MATERIALS 0.4% Buzzi Unicem S.p.A. 1,995 60,785 Italcementi S.p.A. 700 21,022 -------------- 81,807 CONSUMER DURABLES 0.1% Indesit Co. S.p.A. 1,000 21,319 ELECTRIC UTILITIES 0.4% ACEA S.p.A. 2,000 37,517 C.I.R. S.p.A.-Compagnie Industriali Riunite 12,000 47,857 -------------- 85,374 FOREST PRODUCTS & PAPER 0.3% IFIL-Investments S.p.A. 6,000 58,804 GOVERNMENT AIRCRAFT & DEFENSE 0.2% Finmeccanica S.p.A. 1,800 54,107 OIL DISTRIBUTION 0.2% ERG S.p.A. 1,600 44,028 REAL ESTATE DEVELOPMENT 0.2% Risanamento S.p.A. 4,000 42,019 -------------- 503,317 JAPAN 23.9% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% Yamazaki Baking Co., Ltd. 3,000 27,279 AUTOS 1.7% Fuji Heavy Industries Ltd. 19,000 98,403 Kawasaki Heavy Industries Ltd. 23,000 97,021 Mazda Motor Corp. 10,000 55,145
NUMBER OF VALUE SECURITY SHARES ($) Toyota Auto Body Co., Ltd. 700 13,149 Yamaha Motor Co., Ltd. 2,900 80,998 -------------- 344,716 BANKS & CREDIT INSTITUTIONS 0.3% Hyakugo Bank Ltd. 7,000 44,871 Shiga Bank Ltd. 2,000 13,851 -------------- 58,722 BASIC MINERALS & METALS 2.6% Fujikura Ltd. 7,000 49,149 Hitachi Cable Ltd. 7,000 39,698 JFE Holdings, Inc. 1,600 94,475 Kobe Steel Ltd. 23,000 92,422 Nippon Steel Corp. 17,000 119,377 Nisshin Steel Co., Ltd. 27,000 116,046 Tokyo Steel Manufacturing Co., Ltd. 2,000 29,421 -------------- 540,588 BEER, LIQUOR, & TOBACCO 1.4% Asahi Breweries Ltd. 4,300 68,872 Japan Tobacco, Inc. 26 127,460 Kirin Brewery Co., Ltd. 6,000 86,607 -------------- 282,939 CELLULAR & WIRELESS 0.5% KDDI Corp. 12 95,461 CHEMICALS & RUBBER 3.1% Daicel Chemical Industries Ltd. 11,000 74,836 Dainippon Ink & Chemicals, Inc. 23,000 91,108 Kaneka Corp. 8,000 76,109 Mitsubishi Chemical Holdings Corp. * 13,000 110,477 Mitsubishi Gas Chemical Co., Inc. 6,000 57,321 Sumitomo Chemical Co., Ltd. 16,000 120,573 Teijin Ltd. 21,000 118,029 -------------- 648,453 COMMUNICATIONS UTILITIES 0.5% Nippon Telegraph & Telephone Corp. (NTT) 21 110,930 CONSTRUCTION MATERIALS 0.1% Asahi Glass Co., Ltd. 2,000 28,064 CONSUMER DURABLES 0.5% Matsushita Electric Industrial Co., Ltd. 5,000 100,772 DRUGS & PHARMACEUTICALS 0.6% Taisho Pharmaceutical Co., Ltd. 7,000 128,279 ELECTRIC UTILITIES 0.3% Hokkaido Electric Power Co., Inc. 2,100 55,716 The Chugoku Electric Power Co., Inc. 700 15,644 -------------- 71,360 FURNITURE & HOUSEHOLD ITEMS 0.5% Matsushita Electric Works Ltd. 2,000 22,853 Sankyo Co., Ltd. 1,800 78,908 -------------- 101,761 GAS & OTHER PUBLIC UTILITIES 0.5% Osaka Gas Co., Ltd. 24,000 92,989
See financial notes. Laudus Funds Annual Report 101 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) INSURANCE 1.1% Aioi Insurance Co., Ltd. 9,000 62,545 Mitsui Sumitomo Insurance Co., Ltd. 5,000 62,519 Sompo Japan Insurance Inc. 8,000 99,352 -------------- 224,416 IT HARDWARE 0.7% Dainippon Screen Mfg. Co., Ltd. 5,000 37,694 Futaba Corp. 1,100 26,178 Seiko Epson Corp. 2,000 58,723 Toshiba Tec Corp. 5,000 29,865 -------------- 152,460 LAND & WATER TRANSPORTATION 0.8% Seino Transportation Co., Ltd. 7,000 65,963 West Japan Railway Co. 21 96,796 -------------- 162,759 MAINFRAME & MINICOMPUTERS 0.5% NEC Corp. 19,000 101,553 METAL PRODUCTS & MACHINERY 1.9% Bosch Corp. 5,000 22,606 Fuji Electric Holdings Co., Ltd. 10,000 46,235 Heiwa Corp. 1,800 22,219 Hitachi Ltd. 16,000 124,364 Mitsubishi Heavy Industries Ltd. 19,000 122,520 Sega Sammy Holdings, Inc. 2,400 55,940 -------------- 393,884 MISCELLANEOUS FINANCE 1.1% Daiwa Securities Group, Inc. 10,000 120,174 Mitsubishi UFJ Securities Co., Ltd. * 2,000 22,722 Shinsei Bank Ltd. 19,000 90,853 -------------- 233,749 OIL DISTRIBUTION 0.2% Cosmo Oil Co., Ltd. 8,000 33,397 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 1.3% Fuji Photo Film Co., Ltd. 3,100 126,799 Konica Minolta Holdings, Inc. 9,500 124,466 Noritsu Koki Co., Ltd. 700 12,581 -------------- 263,846 PUBLISHING, BROADCASTING & CINEMA 1.5% Dai Nippon Printing Co., Ltd. 7,000 109,864 Dentsu, Inc. 20 55,763 Hakuhodo DY Holdings, Inc. 650 45,381 Nippon Television Network Corp. 90 14,826 Toppan Printing Co., Ltd. 7,000 72,914 TV Asahi Corp. 5 10,031 -------------- 308,779 REAL ESTATE DEVELOPMENT 0.6% Sekisui House Ltd. 8,000 124,212 SOFTWARE 0.4% Fujitsu Ltd. 14,000 92,888 TEXTILES & APPAREL 0.6% Onward Kashiyama Co., Ltd. 6,000 83,225 Tokyo Style Co., Ltd. 3,000 32,792 -------------- 116,017
NUMBER OF VALUE SECURITY SHARES ($) TRADING COMPANY 0.5% Mitsubishi Corp. 4,400 101,575 -------------- 4,941,848 NETHERLANDS 1.4% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.1% CSM N.V. 800 28,617 CHEMICALS & RUBBER 0.2% Koninklijke DSM N.V. 900 40,389 FURNITURE & HOUSEHOLD ITEMS 0.2% Hunter Douglas N.V. 408 35,999 INFORMATION & SERVICES 0.3% Koninklijke BAM Groep N.V. 244 5,784 Vedior N.V. 2,100 46,805 -------------- 52,589 INSTRUMENTS 0.4% Koninklijke (Royal) Philips Electronics N.V. 2,000 76,231 Orthofix International N.V. * 300 15,315 -------------- 91,546 OIL DRILLING & SERVICES 0.1% Schlumberger Ltd. 130 8,983 WHOLESALE 0.1% Buhrmann N.V. 2,000 26,862 -------------- 284,985 SPAIN 1.4% - ------------------------------------------------------------------ AIRLINES 0.2% Iberia Lineas Aereas de Espana S.A. 8,000 42,786 CONSTRUCTION MATERIALS 0.2% Cementos Portland Valderrivas S.A. 300 45,355 GAS & OTHER PUBLIC UTILITIES 0.2% Enagas S.A. 1,800 46,470 INTEGRATED OIL COMPANIES 0.4% Repsol YPF S.A. 2,400 80,872 RESTAURANTS, HOTELS & THEATERS 0.4% NH Hoteles S.A. * 1,600 36,848 Sol Melia S.A. 1,642 39,527 -------------- 76,375 -------------- 291,858 SWEDEN 1.3% - ------------------------------------------------------------------ AIRLINES 0.2% SAS AB * 2,000 36,825 AUTOS 0.2% Volvo AB 600 50,691 BASIC MINERALS & METALS 0.3% Boliden AB * 2,500 55,218 CELLULAR & WIRELESS 0.3% TeliaSonera AB 6,000 52,053 COMMUNICATIONS UTILITIES 0.3% Tele2 AB, Class B 4,000 65,697 -------------- 260,484
See financial notes. 102 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) SWITZERLAND 2.5% - ------------------------------------------------------------------ AUTOS 0.3% Rieter Holding AG -- Reg'd 105 52,434 CHEMICALS & RUBBER 0.2% Clariant AG -- Reg'd * 2,000 34,402 CONSTRUCTION MATERIALS 0.3% Holcim Ltd. -- Reg'd 608 61,175 DRUGS & PHARMACEUTICALS 0.2% Ciba Specialty Chemicals AG -- Reg'd 612 40,406 ELECTRIC UTILITIES 0.3% Elektrizitaets-Gesellschaft Laufenburg AG 21 24,344 Motor-Columbus Ltd. 5 42,176 -------------- 66,520 INSURANCE 1.0% Baloise Holding AG, Reg'd 408 42,602 Helvetia Holding AG 120 51,544 Swiss Life Holding -- Reg'd * 240 60,397 Zurich Financial Services AG -- Reg'd 210 60,727 -------------- 215,270 REAL ESTATE DEVELOPMENT 0.2% PSP Swiss Property AG * 800 48,770 -------------- 518,977 UNITED KINGDOM 5.3% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 0.2% Tate & Lyle plc 3,150 35,731 AUTOS 0.1% GKN plc 4,000 30,002 BASIC MINERALS & METALS 0.2% Kazakhmys plc 2,000 46,269 CELLULAR & WIRELESS 0.2% The Carphone Warehouse Group plc 6,000 32,863 COMMUNICATIONS UTILITIES 0.3% Cable & Wireless 12,000 39,484 COLT Telecom Group S.A. * 9,000 31,586 -------------- 71,070 CONSTRUCTION MATERIALS 0.1% Cookson Group plc 2,205 26,982 ELECTRIC UTILITIES 0.2% International Power plc 6,000 46,897 FURNITURE & HOUSEHOLD ITEMS 0.3% Smiths Group plc 3,000 60,645 GOVERNMENT AIRCRAFT & DEFENSE 0.4% BAE Systems plc 8,000 72,520 INFORMATION & SERVICES 0.2% Group 4 Securicor plc 9,000 35,623 INSURANCE 1.0% Aviva plc 4,900 72,402 Brit Insurance Holdings plc 4,000 25,382 Friends Provident plc 9,120 34,586 Old Mutual plc 63 204 Prudential plc 4,800 67,827 -------------- 200,401
NUMBER OF VALUE SECURITY SHARES ($) MISCELLANEOUS FINANCE 0.3% Legal & General Group plc 18,000 56,500 PUBLISHING, BROADCASTING & CINEMA 0.6% Aegis Group plc 12,000 35,360 Trinity Mirror plc 2,100 21,940 WPP Group plc 3,921 59,535 -------------- 116,835 REAL ESTATE INVESTMENT TRUSTS 0.1% Brixton plc 3,000 30,049 RESTAURANTS, HOTELS & THEATERS 0.8% Compass Group plc 10,000 66,978 Greene King plc 1,400 30,387 Millennium & Copthorne Hotel plc 3,000 40,182 William Hill plc 2,574 32,249 -------------- 169,796 RETAIL 0.1% Alliance Boots plc 1,458 29,475 SOFTWARE 0.2% Logica CMG plc 9,000 31,557 -------------- 1,093,215 UNITED STATES 48.3% - ------------------------------------------------------------------ AGRICULTURE, FOOD & BEVERAGE 1.1% Bunge Ltd. 340 27,955 Cal-Maine Foods, Inc. 400 5,380 Campbell Soup Co. 2,190 85,301 H.J. Heinz Co. 210 9,895 Kellogg Co. 1,100 56,573 Overhill Farms, Inc. * 300 2,127 The Coca-Cola Co. 960 46,080 The Pepsi Bottling Group, Inc. 80 2,551 -------------- 235,862 AIRLINES 0.5% Alaska Air Group, Inc. * 33 1,257 AMR Corp. * 1,300 39,585 FedEx Corp. 500 53,715 Midwest Air Group, Inc. * 400 5,404 Pinnacle Airlines Corp. * 400 6,916 -------------- 106,877 AUTOS 0.3% General Motors Corp. 1,600 49,024 Spartan Motors, Inc. 400 9,284 -------------- 58,308 BANKS & CREDIT INSTITUTIONS 1.5% Bank of America Corp. 4,600 234,692 Dollar Financial Corp. * 500 12,650 The Bank of New York Co., Inc. 390 15,814 The First Marblehead Corp. 900 40,401 -------------- 303,557 BASIC MINERALS & METALS 0.2% Allegheny Technologies, Inc. 100 10,669 Brush Engineered Materials, Inc. * 300 14,541 General Cable Corp. * 140 7,480 -------------- 32,690
See financial notes. Laudus Funds Annual Report 103 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) BEER, LIQUOR, & TOBACCO 0.3% Anheuser-Busch Cos., Inc. 1,400 70,644 BIOTECHNOLOGY 1.6% Celgene Corp. * 3,600 188,856 Gilead Sciences, Inc. * 1,800 137,700 -------------- 326,556 CELLULAR & WIRELESS 0.9% NII Holdings, Inc. * 2,400 178,032 CHEMICALS & RUBBER 1.1% Albemarle Corp. 900 37,206 Hercules, Inc. * 1,400 27,356 LSB Industries, Inc. * 300 4,671 Monsanto Co. 2,100 115,416 PPG Industries, Inc. 476 33,468 -------------- 218,117 COMMERCIAL AIRCRAFT & COMPONENTS 0.1% Ladish Co., Inc. * 300 11,292 The Boeing Co. 180 16,004 -------------- 27,296 COMMUNICATIONS UTILITIES 3.7% American Tower Corp., Class A * 2,300 89,585 AT&T Corp. 5,510 217,259 Comcast Corp., Class A * 6,536 169,609 Knology, Inc. * 500 7,915 Level 3 Communications, Inc. * 2,201 13,426 Qwest Communications International, Inc. * 16,300 146,537 The DIRECTV Group, Inc. * 5,600 129,192 The Knot, Inc. 18 388 -------------- 773,911 CONSTRUCTION & HOMEBUILDING 0.0% U.S. Home Systems, Inc. * 200 2,550 CONSUMER DURABLES 0.4% Harley-Davidson, Inc. 1,300 76,375 Syntax-Brillian Corp. * 100 840 Universal Electronics, Inc. * 200 5,572 -------------- 82,787 DRUGS & PHARMACEUTICALS 1.2% Abbott Laboratories 1,400 78,120 Allergan, Inc. 600 66,492 Bradley Pharmaceuticals, Inc. * 300 5,757 NBTY, Inc. * 670 35,537 Pfizer, Inc. 2,400 60,624 -------------- 246,530 ELECTRIC UTILITIES 1.3% Consolidated Edison, Inc. 1,500 76,590 Edison International 3,300 162,129 ITC Holdings Corp. 500 21,645 -------------- 260,364 FINANCIAL INVESTMENTS 0.1% Iconix Brand Group, Inc. * 100 2,040 NexCen Brands, Inc. * 800 7,936 SRS Labs, Inc. * 230 3,204 -------------- 13,180
NUMBER OF VALUE SECURITY SHARES ($) FOREST PRODUCTS & PAPER 0.7% Cenveo, Inc. * 900 21,870 International Paper Co. 3,400 123,760 -------------- 145,630 FURNITURE & HOUSEHOLD ITEMS 0.3% AZZ, Inc. * 200 8,400 Fossil, Inc. * 800 21,176 GameTech International, Inc. * 400 4,888 Hasbro, Inc. 770 22,037 Virco Manufacturing Corp. * 300 2,025 -------------- 58,526 GAS & OTHER PUBLIC UTILITIES 0.4% Hanover Compressor Co. * 7 156 The Williams Cos., Inc. 2,900 82,534 -------------- 82,690 GOVERNMENT AIRCRAFT & DEFENSE 0.1% Garmin Ltd. 200 10,830 Smith & Wesson Holding Corp. * 700 9,163 -------------- 19,993 HEALTH CARE & HOSPITAL 0.4% Almost Family, Inc. * 200 4,980 AMERIGROUP Corp. * 670 20,368 Brookdale Senior Living, Inc. 100 4,466 Health Net, Inc. * 3 161 Humana, Inc. * 900 52,218 MEDTOX Scientific, Inc. * 200 3,680 Sun Healthcare Group, Inc. * 320 3,952 -------------- 89,825 INFORMATION & SERVICES 1.1% Accenture Ltd., Class A 1,100 42,394 Arbitron, Inc. 400 18,780 Cass Information Systems, Inc. 160 5,402 Corrections Corp. of America * 700 36,967 CPI Corp. 300 15,753 Manpower, Inc. 100 7,377 Parexel International Corp. * 500 17,985 Rainmaker Systems, Inc. * 400 3,360 Standard Parking Corp. * 300 10,611 The Dun & Bradstreet Corp. 543 49,522 The Geo Group, Inc. * 200 9,064 Thomas Group, Inc. 200 2,384 Volt Information Sciences, Inc. * 450 11,785 -------------- 231,384 INSTRUMENTS 1.2% Align Technology, Inc. * 1,000 15,860 Angeion Corp. * 200 2,940 Baxter International, Inc. 2,100 110,607 Bovie Medical Corp. * 400 2,840 Bruker BioSciences Corp. * 1,600 16,832 Cholestech Corp. * 200 3,448 Faro Technologies, Inc. * 300 8,661 FEI Co. 470 16,948 II-VI, Inc. * 437 14,792 K-Tron International, Inc. * 150 10,760 NumereX Corp, Class A * 400 4,076
See financial notes. 104 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) Waters Corp. * 740 42,920 Zoll Medical Corp. * 300 7,995 -------------- 258,679 INSURANCE 3.1% ACE Ltd. 3,100 176,886 Ambassadors International, Inc. 300 13,842 CorVel Corp. * 300 9,075 Everest Re Group Ltd. 500 48,085 Genworth Financial, Inc., Class A 2,600 90,844 Loews Corp. 3,900 177,177 The Allstate Corp. 1,290 77,477 Tower Group, Inc. 400 12,888 Wellcare Health Plans, Inc. * 500 42,625 -------------- 648,899 INTEGRATED OIL COMPANIES 0.2% Hess Corp. 820 45,485 IT HARDWARE 4.5% Agere Systems, Inc. * 1,600 36,192 Amphenol Corp., Class A 1,200 77,484 Anadigics, Inc. * 900 10,638 Avaya, Inc. * 1,060 12,519 Avici Systems, Inc. * 300 3,426 Aviza Technology, Inc. * 300 2,163 Cisco Systems, Inc. * 17,930 457,753 Comtech Group, Inc. * 500 8,740 Globecomm Systems, Inc. * 300 3,210 Harmonic, Inc. * 1,200 11,784 Harris Corp. 866 44,123 Harris Stratex Networks, Inc., Class A * 450 8,635 L-3 Communications Holdings, Inc. 700 61,229 MEMC Electronic Materials, Inc. * 2,600 157,508 Novellus Systems, Inc. * 1,000 32,020 Simclar, Inc. * 200 1,212 SonicWALL, Inc. * 1,100 9,196 -------------- 937,832 LAND & WATER TRANSPORTATION 1.2% Union Pacific Corp. 2,380 241,689 MAINFRAME & MINICOMPUTERS 1.3% Apple, Inc. * 1,500 139,365 Cray, Inc. * 500 6,895 Omnicell, Inc. * 500 10,460 Sun Microsystems * 17,000 102,170 -------------- 258,890 METAL PRODUCTS & MACHINERY 2.0% AGCO Corp. * 1,000 36,970 American Standard Cos., Inc. 1,200 63,624 Energizer Holdings, Inc. * 100 8,533 Key Technology, Inc. * 200 3,160 MFRI, Inc. * 200 3,708 Parker Hannifin Corp. 1,140 98,393 PG&E Corp. 1,750 84,473 Robbins & Myers, Inc. 300 11,187 Terex Corp. * 500 35,880 The Middleby Corp. * 160 21,094
NUMBER OF VALUE SECURITY SHARES ($) Varian Semiconductor Equipment Associates, Inc. * 600 32,028 Zoltek Cos., Inc. * 400 13,972 -------------- 413,022 MISCELLANEOUS FINANCE 1.8% Chicago Mercantile Exchange Holdings, Inc., Class A 240 127,791 Cohen & Steers, Inc. 600 25,848 Diamond Hill Investment Group * 200 19,502 International Assets Holding Corp. * 300 8,379 Merrill Lynch & Co., Inc. 2,200 179,674 U.S. Global Investors, Inc., Class A * 420 10,819 -------------- 372,013 OIL & COAL RESOURCES 0.4% Equitable Resources, Inc. 200 9,664 XTO Energy, Inc. 1,200 65,772 -------------- 75,436 OIL DISTRIBUTION 0.2% Holly Corp. 600 35,580 OIL DRILLING & SERVICES 1.4% Dawson Geophysical Co. * 150 7,429 ENSCO International, Inc. 1,000 54,400 GlobalSantaFe Corp. 1,200 74,016 McDermott International, Inc. * 700 34,286 Noble Corp. 70 5,508 Omni Energy Services Corp. * 300 3,054 Transocean, Inc. * 1,400 114,380 -------------- 293,073 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6% Brocade Communications Systems, Inc. * 3,000 28,560 EMC Corp. * 900 12,465 Hauppauge Digital, Inc. * 300 2,049 Interphase Corp. * 200 2,232 Lexmark International, Inc., Class A * 300 17,538 Pitney Bowes, Inc. 1,300 59,007 Stec, Inc. * 900 6,336 VASCO Data Security International, Inc. * 280 5,004 -------------- 133,191 PUBLISHING, BROADCASTING & CINEMA 1.3% CBS Corp., Class B 3,000 91,770 Gannett Co., Inc. 860 48,409 Lamar Advertising Co., Class A * 500 31,485 News Corp., Class A 2,904 67,141 The Walt Disney Co. 600 20,658 Triple Crown Media, Inc. * 200 1,678 -------------- 261,141 REAL ESTATE DEVELOPMENT 0.1% AMREP Corp. * 200 15,450 REAL ESTATE INVESTMENT TRUSTS 0.1% Public Storage, Inc. 200 18,934 RESTAURANTS, HOTELS & THEATERS 0.5% McDonald's Corp. 2,500 112,625
See financial notes. Laudus Funds Annual Report 105 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) RETAIL 5.1% Abercrombie & Fitch Co., Class A 1,204 91,119 American Eagle Outfitters, Inc. 1,600 47,984 AutoZone, Inc. * 1,000 128,140 Big Lots, Inc. * 1,000 31,280 Charlotte Russe Holding, Inc. * 500 14,435 Federated Department Stores, Inc. 1,200 54,060 J.C. Penney Co., Inc. 2,300 188,968 Kohl's Corp. * 1,100 84,271 Medco Health Solutions, Inc. * 1,500 108,795 Nordstrom, Inc. 2,667 141,191 OfficeMax, Inc. 700 36,918 PC Mall, Inc. * 300 2,991 Priceline.com, Inc. * 500 26,630 PriceSmart, Inc. * 500 7,680 Sears Holdings Corp. * 300 54,048 Spartan Stores, Inc. 400 10,720 The Bon-Ton Stores, Inc. 300 16,872 -------------- 1,046,102 SOFTWARE 5.3% Akamai Technologies, Inc. * 900 44,928 Allscripts Healthcare Solutions, Inc. * 800 21,448 BMC Software, Inc. * 2,500 76,975 Cadence Design Systems, Inc. * 1,800 37,908 Captaris, Inc. * 400 2,316 Cognizant Technology Solutions Corp., Class A * 1,500 132,405 Computer Sciences Corp. * 1,000 52,130 Datalink Corp. * 300 2,349 GSE Systems, Inc. * 300 1,905 i2 Technologies, Inc. * 500 12,000 Internap Network Services Corp. * 600 9,450 International Business Machines Corp. 2,280 214,913 Internet Gold-Golden Lines Ltd. * 400 5,008 Interwoven, Inc. * 700 11,830 Intuit, Inc. * 4,100 112,176 McAfee, Inc. * 1,200 34,896 Mentor Graphics Corp. * 1,200 19,608 Microsoft Corp. 2,200 61,314 NEON Communications Group, Inc. * 600 2,814 Nuance Communications, Inc. * 1,600 24,496 Oracle Corp. * 9,670 175,317 Scientific Learning Corp. * 300 2,292 Smith Micro Software, Inc. * 500 9,315 Taleo Corp., Class A * 400 6,632 THQ, Inc. * 800 27,352 Versant Corp. * 200 3,390 -------------- 1,105,167 TEXTILES & APPAREL 0.5% Deckers Outdoor Corp. * 300 21,306 G-III Apparel Group Ltd. * 220 4,191 Guess?, Inc. 800 32,392 Interface, Inc., Class A 800 12,792 Maidenform Brands, Inc. * 400 9,228 R.G. Barry Corp. * 200 2,084 The Gymboree Corp. * 500 20,035 -------------- 102,028
NUMBER OF VALUE SECURITY SHARES ($) WHOLESALE 0.2% En Pointe Technologies, Inc. * 200 682 KSW, Inc. * 100 640 TESSCO Technologies, Inc. * 200 5,438 The Aristotle Corp. * 300 3,036 W.W. Grainger, Inc. 500 38,620 -------------- 48,416 -------------- 9,988,961 -------------- TOTAL COMMON STOCK (COST $17,051,955) 19,874,593 -------------- PREFERRED STOCK (A) 0.0% OF NET ASSETS UNITED KINGDOM 0.0% - ------------------------------------------------------------------ COMMERCIAL AIRCRAFT & COMPONENTS 0.0% Rolls-Royce Group plc * 414,400 836 -------------- TOTAL PREFERRED STOCK (COST $800) 836 -------------- RIGHTS (A) 0.1% OF NET ASSETS JAPAN 0.1% - ------------------------------------------------------------------ BASIC MINERALS & METALS 0.1% Dowa Mining * 11,000 5,587 -------------- TOTAL RIGHTS (COST $--) 5,587 - ------------------------------------------------------------------ FACE SECURITY AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT (A) 5.7% OF NET ASSETS REPURCHASE AGREEMENT 5.7% - ------------------------------------------------------------------ Custodian Trust Company, dated 03/30/07, due 04/02/07 at 5.10%, with a maturity value of $1,180,861 (fully collateralized by U.S. Treasury Bill with a value of $1,232,904) 1,180,359 1,180,359 -------------- TOTAL SHORT-TERM INVESTMENT (COST $1,180,359) 1,180,359 - ------------------------------------------------------------------ END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was $18,392,812, and the unrealized appreciation and depreciation were $2,920,437 and ($251,874), respectively, with a net unrealized appreciation of $2,668,563. At 03/31/07, the prices of certain foreign securities held by the fund aggregating ($48,235) were adjusted from their closing market prices following the guidelines adopted by the fund's board of trustees. * Non-income producing security. (a) All long positions are pledged as collateral for securities sold short. See financial notes. 106 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
AMOUNT OF AMOUNT OF UNREALIZED CURRENCY CURRENCY CURRENCY CURRENCY GAINS / EXPIRATION TO BE TO BE TO BE TO BE LOSSES DATE RECEIVED RECEIVED DELIVERED DELIVERED ($) FORWARD FOREIGN CURRENCY CONTRACTS 07/19/2007 JPY 182,027,000 USD 1,566,561 2,964 07/19/2007 USD 5,981,804 JPY 695,057,000 (86,567) ------- (83,603)
See financial notes. Laudus Funds Annual Report 107 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) SHORT SALES 95.5% OF NET ASSETS AUSTRIA 0.3% - ----------------------------------------------------------------- ELECTRIC UTILITIES 0.1% Oesterreichische Elektrizitaetswirtschafts AG 600 26,952 INSURANCE 0.2% UNIQA Versicherungen AG 900 30,047 -------------- 56,999 DENMARK 0.8% - ----------------------------------------------------------------- CONSTRUCTION MATERIALS 0.2% FLSmidth & Co. A/S 600 40,540 DRUGS & PHARMACEUTICALS 0.4% Alk-Abello A/S 200 36,991 Genmab A/S * 800 48,855 -------------- 85,846 LAND & WATER TRANSPORTATION 0.2% DSV A/S 200 34,864 -------------- 161,250 FINLAND 0.9% - ----------------------------------------------------------------- CHEMICALS & RUBBER 0.1% Nokian Renkaat Oyj 840 23,075 CONSTRUCTION & HOMEBUILDING 0.4% Kone Oyj 800 45,678 YIT Oyj 1,200 41,521 -------------- 87,199 LAND & WATER TRANSPORTATION 0.1% Cargotec Corp. 388 23,462 METAL PRODUCTS & MACHINERY 0.1% Wartsila Oyj Abp, Class B 420 26,079 RETAIL 0.2% Stockmann Oyj Abp, Share B 800 34,923 -------------- 194,738 FRANCE 3.6% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.3% Groupe Danone 417 68,227 CHEMICALS & RUBBER 0.3% Air Liquide S.A. 273 66,440 CONSTRUCTION & HOMEBUILDING 0.4% Technip S.A. 300 21,826 Vinci S.A. 400 62,374 -------------- 84,200 INFORMATION & SERVICES 0.2% Financiere Marc de Lacharriere S.A. 430 39,712 INSTRUMENTS 0.2% Neopost S.A. 300 42,980 INSURANCE 0.4% April Group 600 31,373 Euler Hermes S.A. 312 43,937 -------------- 75,310
NUMBER OF VALUE SECURITY SHARES ($) IT HARDWARE 0.2% Silicon-On-Insulator Technologies (SOITEC) * 1,400 33,523 OIL DRILLING & SERVICES 0.2% Bourbon S.A. 600 42,019 RETAIL 0.2% Casino Guichard Perrachon S.A. 400 40,550 SOAPS & COSMETICS 0.4% L'Oreal S.A. 703 76,785 TEXTILES & APPAREL 0.2% Hermes International 370 51,166 WHOLESALE 0.6% Essilor International S.A. 600 69,019 Pinault-Printemps-Redoute S.A. 300 48,164 -------------- 117,183 -------------- 738,095 GERMANY 3.0% - ----------------------------------------------------------------- AIRLINES 0.1% Fraport AG 243 17,823 BANKS & CREDIT INSTITUTIONS 0.4% Hypo Real Estate Holding AG 668 42,636 IKB Deutsche Industriebank AG 880 35,158 -------------- 77,794 CONSUMER DURABLES 0.2% Rational AG 210 40,729 FOREST PRODUCTS & PAPER 0.1% Pfleiderer AG 800 23,242 FURNITURE & HOUSEHOLD ITEMS 0.2% Bijou Brigitte Modische Accessoires AG 180 41,815 INSURANCE 0.1% MLP AG 1,200 30,298 LAND & WATER TRANSPORTATION 0.4% Deutsche Post AG 2,500 75,472 METAL PRODUCTS & MACHINERY 0.2% Solarworld AG 400 30,996 MISCELLANEOUS FINANCE 0.4% Deutsche Boerse AG 313 71,731 SOFTWARE 0.6% SAP AG 1,600 71,314 United Internet AG -- Reg'd 3,000 58,596 -------------- 129,910 WHOLESALE 0.3% Celesio AG 600 37,716 Fielmann AG 510 31,417 -------------- 69,133 -------------- 608,943
See financial notes. 108 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) ITALY 1.9% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.8% Banca Monte dei Paschi di Siena S.p.A. 9,000 56,439 Credito Emiliano S.p.A. 3,000 47,302 Mediobanca S.p.A. 2,400 53,491 -------------- 157,232 CONSTRUCTION & HOMEBUILDING 0.4% Saipem S.p.A. 2,580 75,460 INSURANCE 0.7% Alleanza Assicurazioni S.p.A. 4,000 51,170 Assicurazioni Generali S.p.A. 1,600 68,147 Mediolanum S.p.A 4,000 32,452 -------------- 151,769 -------------- 384,461 JAPAN 24.0% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% Ezaki Glico Co., Ltd. 2,000 23,724 BANKS & CREDIT INSTITUTIONS 3.2% Aeon Credit Service Co., Ltd. 1,900 31,853 Credit Saison Co., Ltd. 800 26,229 Mizuho Trust & Banking Co., Ltd. 27,000 59,562 Suruga Bank Ltd. 5,000 64,890 The Bank of Fukuoka Ltd. (b) 7,000 56,492 The Bank Of Yokohama, Ltd. 15,000 111,507 The Chiba Bank Ltd. 13,000 114,256 The Musashino Bank Ltd. 100 5,343 The Shizuoka Bank Ltd. 7,000 74,303 The Sumitomo Trust & Banking Co., Ltd. 9,000 93,373 The Hiroshima Bank Ltd. 3,000 16,494 -------------- 654,302 BASIC MINERALS & METALS 0.3% Mitsubishi Materials Corp. 11,000 52,033 BEER, LIQUOR, & TOBACCO 0.1% Takara Holdings, Inc. 4,000 28,217 CHEMICALS & RUBBER 0.8% Nissan Chemical Industries Ltd. 5,000 64,251 Shin-Etsu Chemical Co., Ltd. 1,500 91,265 -------------- 155,516 COMMUNICATIONS UTILITIES 0.5% Softbank Corp. * 3,700 94,766 CONSTRUCTION & HOMEBUILDING 2.3% Chiyoda Corp. 4,000 87,369 JGC Corp. 5,000 81,794 Kajima Corp. 18,000 91,524 Nippon Sheet Glass Co., Ltd. 7,000 36,620 Obayashi Corp. 12,000 77,124 Shimizu Corp. 14,000 85,574 Taisei Corp. 5,000 18,470 -------------- 478,475 CONSTRUCTION MATERIALS 0.5% Ibiden Co., Ltd. 2,100 108,451
NUMBER OF VALUE SECURITY SHARES ($) CONSUMER DURABLES 1.1% Daikin Industries Ltd. 3,700 128,355 Funai Electric Co., Ltd. 300 28,525 Sony Corp. 1,600 80,863 -------------- 237,743 DRUGS & PHARMACEUTICALS 0.3% Chugai Pharmaceutical Co., Ltd. 2,600 65,629 FINANCIAL INVESTMENTS 0.6% Mitsubishi UFJ Lease & Finance Co., Ltd. 230 11,472 ORIX Corp. 290 75,245 Square Enix Co., Ltd. 1,100 28,263 -------------- 114,980 FOREST PRODUCTS & PAPER 0.2% Uni-Charm Corp. 800 50,503 GAS & OTHER PUBLIC UTILITIES 0.1% Toho Gas Co., Ltd. 6,000 30,810 INFORMATION & SERVICES 0.2% Meitec Corp. 200 6,443 Park24 Co., Ltd. 2,600 34,877 -------------- 41,320 INSTRUMENTS 0.8% Terumo Corp. 2,800 108,711 Yokogawa Electric Corp. 4,300 65,661 -------------- 174,372 IT HARDWARE 3.9% Advantest Corp. 1,600 70,885 Fanuc Ltd. 1,100 101,921 Hirose Electric Co., Ltd. 400 47,886 Hoya Corp. 2,400 79,290 Keyence Corp. 450 101,248 Murata Manufacturing Co., Ltd. 1,400 101,677 Nidec Corp. 1,200 77,015 Nidec Sankyo Corp. 3,000 23,549 Sharp Corp. 5,000 96,148 Tokyo Electron Ltd. 1,400 97,514 -------------- 797,133 LAND & WATER TRANSPORTATION 1.9% Central Japan Railway Co. 6 68,125 Kintetsu Corp. 19,000 59,740 Mitsui O.S.K. Lines Ltd. 9,000 99,651 Odakyu Electric Railway Co., Ltd. 12,000 87,594 Yamato Holdings Co., Ltd. 5,000 80,459 -------------- 395,569 MAINFRAME & MINICOMPUTERS 0.4% Casio Computer Co., Ltd. 4,100 89,368 METAL PRODUCTS & MACHINERY 1.5% Komatsu Ltd. 4,500 94,244 Mitsubishi Electric Corp. 11,000 113,021 The Japan Steel Works Ltd. 3,000 35,936 Yaskawa Electric Corp. 5,000 58,967 -------------- 302,168 OIL DISTRIBUTION 0.0% Showa Shell Sekiyu K.K 600 7,329
See financial notes. Laudus Funds Annual Report 109 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.4% Canon, Inc. 1,500 80,541 REAL ESTATE DEVELOPMENT 0.5% Mitsubishi Estate Co., Ltd. 3,000 98,112 RETAIL 1.3% Aeon Co., Ltd. 5,900 117,004 Don Quijote Co., Ltd. 4,200 81,896 Hikari Tsushin, Inc. 1,300 59,013 Izumi Co., Ltd. 100 1,852 -------------- 259,765 SOFTWARE 1.6% Konami Corp. 2,600 69,356 NTT Data Corp. 23 116,457 Oracle Corp. 1,000 47,961 Otsuka Corp. 400 38,225 Trend Micro, Inc. 2,500 68,091 -------------- 340,090 TRADING COMPANY 1.4% Itochu Corp. 10,000 98,761 Mitsui & Co., Ltd. 4,000 75,279 Sumitomo Corp. 6,300 112,891 -------------- 286,931 -------------- 4,967,847 NETHERLANDS 1.2% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.2% Royal Numico N.V. 900 46,421 INFORMATION & SERVICES 0.2% Fugro N.V. CVA 600 30,469 LAND & WATER TRANSPORTATION 0.2% Koninklijke Vopak N.V. 660 37,387 METAL PRODUCTS & MACHINERY 0.2% Aalberts Industries N.V. 400 39,672 OIL DRILLING & SERVICES 0.0% Schlumberger Ltd. 130 8,983 PUBLISHING, BROADCASTING & CINEMA 0.2% Reed Elsevier N.V. 2,700 47,825 REAL ESTATE DEVELOPMENT 0.2% Rodamco Europe N.V. 284 39,608 -------------- 250,365 NORWAY 1.1% - ----------------------------------------------------------------- INFORMATION & SERVICES 0.2% Acergy S.A. * 2,000 42,328 INSURANCE 0.3% Storebrand A.S.A. 4,000 63,702 OIL DRILLING & SERVICES 0.3% Seadrill Ltd. * 4,000 64,311 PUBLISHING, BROADCASTING & CINEMA 0.3% Schibsted A.S.A. 1,200 52,662 -------------- 223,003 SPAIN 1.5% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.1% Sos Cuetara S.A. 1,500 29,465
NUMBER OF VALUE SECURITY SHARES ($) BANKS & CREDIT INSTITUTIONS 0.3% Banco Espanol de Crecito S.A. (Banesto) 2,800 67,165 CONSTRUCTION & HOMEBUILDING 0.2% Acciona S.A. 160 34,782 DRUGS & PHARMACEUTICALS 0.2% FAES FARMA S.A. 1,600 40,817 LAND & WATER TRANSPORTATION 0.2% Cintra Concesiones de Infraestructuras de Transporte S.A. 2,000 37,588 METAL PRODUCTS & MACHINERY 0.3% Gamesa Corp. Tecnologica S.A. 1,800 65,544 REAL ESTATE DEVELOPMENT 0.2% Grupo Inmocaral S.A. * 6,000 41,677 -------------- 317,038 SWEDEN 1.1% - ----------------------------------------------------------------- METAL PRODUCTS & MACHINERY 0.4% Atlas Copco AB 1,800 59,835 Sandvik AB 1,400 24,933 -------------- 84,768 MISCELLANEOUS FINANCE 0.4% OMX AB 1,600 33,343 Skandinaviska Enskilda Banken AB, (SEB) Series A 1,600 51,246 -------------- 84,589 PUBLISHING, BROADCASTING & CINEMA 0.3% Modern Times Group AB, Class B * 1,000 58,398 -------------- 227,755 SWITZERLAND 2.0% - ----------------------------------------------------------------- BANKS & CREDIT INSTITUTIONS 0.2% Vontobel Holding AG 600 30,867 DRUGS & PHARMACEUTICALS 0.2% Actelion Ltd. -- Reg'd * 200 46,613 INFORMATION & SERVICES 0.2% SGS S.A. -- Reg'd 40 47,884 INSTRUMENTS 1.0% Nobel Biocare Holding AG 180 65,656 Phonak Holding AG 600 46,066 Straumann Holding AG 140 40,150 Synthes, Inc. 400 49,527 -------------- 201,399 LAND & WATER TRANSPORTATION 0.2% Kuehne & Nagel International AG -- Reg'd 506 41,572 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.2% Logitech International S.A. * 1,400 39,036 -------------- 407,371 UNITED KINGDOM 6.6% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 0.5% Cadbury Schweppes plc 5,400 69,405 Premier Foods plc 4,500 25,841 -------------- 95,246
See financial notes. 110 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) AUTOS 0.1% Tomkins plc 4,200 22,053 BANKS & CREDIT INSTITUTIONS 0.6% Alliance & Leicester plc 2,000 44,587 Northern Rock plc 2,400 54,252 Standard Chartered plc 1,027 29,668 -------------- 128,507 CONSTRUCTION & HOMEBUILDING 0.7% Barratt Developments plc 670 14,551 Bellway plc 975 30,545 Bovis Homes Group plc 1,000 22,696 Persimmon plc 1,600 44,316 Redrow plc 2,025 25,981 -------------- 138,089 ELECTRIC UTILITIES 0.5% Drax Group plc 2,240 34,656 National Grid plc 4,200 66,279 -------------- 100,935 FINANCIAL INVESTMENTS 0.1% Burberry Group plc 2,400 30,852 FOREST PRODUCTS & PAPER 0.2% Bunzl plc 2,666 37,779 INFORMATION & SERVICES 1.4% Hays 12,000 36,985 Homeserve plc 600 21,054 Intertek Group plc 2,100 37,502 Michael Page International plc 3,000 31,658 Regus Group plc * 15,000 43,827 Rentokil Initial plc 9,000 28,946 Reuters Group plc 5,365 49,302 Serco Group plc 3,634 32,871 -------------- 282,145 INSTRUMENTS 0.0% Smith & Nephew plc 180 2,291 IT HARDWARE 0.2% ARM Holdings plc 15,000 39,536 LAND & WATER TRANSPORTATION 0.4% Forth Ports plc 300 12,242 Go-Ahead Group plc 600 30,110 Stagecoach Group plc 9,000 31,830 -------------- 74,182 METAL PRODUCTS & MACHINERY 0.2% Rexam plc 3,000 32,535 OIL & COAL RESOURCES 0.8% BG Group plc 4,970 71,693 Burren Energy plc 1,400 21,971 Cairn Energy plc * 975 29,886 Cairn Energy plc, Shares B * 1,200 7,084 Sibir Energy plc * 2,200 20,448 Soco International plc * 800 24,568 -------------- 175,650 OIL DRILLING & SERVICES 0.0% Petrofac Ltd. 1,000 8,684
NUMBER OF VALUE SECURITY SHARES ($) PUBLISHING, BROADCASTING & CINEMA 0.4% Pearson plc 3,059 52,629 United Business Media plc 2,200 34,335 -------------- 86,964 RESTAURANTS, HOTELS & THEATERS 0.3% InterContinental Hotels Group plc 1,400 34,610 Ladbrokes plc 3,553 28,259 -------------- 62,869 WHOLESALE 0.2% Electrocomponents plc 4,000 22,722 Premier Farnell plc 5,400 21,726 -------------- 44,448 -------------- 1,362,765 UNITED STATES 47.5% - ----------------------------------------------------------------- AGRICULTURE, FOOD & BEVERAGE 1.4% Cuisine Solutions, Inc. * 300 2,166 The Coca-Cola Co. 500 24,000 The Hershey Co. 1,200 65,592 Wm. Wrigley Jr. Co. 3,875 197,354 -------------- 289,112 AIRLINES 0.3% Southwest Airlines Co. 4,300 63,210 AUTOS 0.9% Ford Motor Co. 18,900 149,121 Oshkosh Truck Corp. 300 15,900 Tenneco, Inc. * 700 17,822 -------------- 182,843 BANKS & CREDIT INSTITUTIONS 1.7% American Express Co. 1,500 84,600 Commerce Bancorp, Inc. 1,300 43,394 Fifth Third Bancorp 2,400 92,856 Sovereign Bancorp, Inc. 2,500 63,600 Washington Mutual, Inc. 1,764 71,230 -------------- 355,680 BASIC MINERALS & METALS 0.4% Dynamic Materials Corp. * 300 9,816 Meridian Gold, Inc. * 1,000 25,530 Newmont Mining Corp. 1,000 41,990 -------------- 77,336 BEER, LIQUOR, & TOBACCO 0.2% Brown-Forman Corp., Class B 700 45,892 BIOTECHNOLOGY 2.0% Alexion Pharmaceuticals, Inc. * 500 21,620 Altus Pharmaceuticals, Inc. * 300 4,566 Amgen, Inc. * 2,700 150,876 CV Therapeutics, Inc. * 900 7,083 Encysive Pharmaceuticals, Inc. * 900 2,439 Gen-Probe, Inc. * 600 28,248 Genentech, Inc. * 1,900 156,028 Keryx Biopharmaceuticals, Inc. * 700 7,364 Vertex Pharmaceuticals, Inc. * 1,178 33,031 -------------- 411,255 CHEMICALS & RUBBER 0.2% ADA-ES, Inc. * 200 2,750 American Vanguard Corp. 500 8,545
See financial notes. Laudus Funds Annual Report 111 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) BioSphere Medical, Inc. * 300 2,208 Hexcel Corp. * 1,100 21,835 NewMarket Corp. 300 12,201 The Dow Chemical Co. 60 2,752 -------------- 50,291 COMMUNICATIONS UTILITIES 1.9% A.D.A.M., Inc. * 200 1,272 Sohu.com, Inc. * 500 10,715 Yahoo! Inc. * 12,000 375,480 -------------- 387,467 CONSTRUCTION & HOMEBUILDING 1.1% D.R. Horton, Inc. 1,980 43,560 Fluor Corp. 200 17,944 Jacobs Engineering Group, Inc. * 800 37,320 Lennar Corp., Class A 1,400 59,094 Pike Electric Corp. * 600 10,848 Pulte Homes, Inc. 2,120 56,095 -------------- 224,861 CONSUMER DURABLES 0.3% Fleetwood Enterprises, Inc. * 1,100 8,701 Harman International Industries, Inc. 500 48,040 -------------- 56,741 DRUGS & PHARMACEUTICALS 1.4% Abbott Laboratories 1,400 78,120 Alkermes, Inc. * 1,200 18,528 Allergan, Inc. 100 11,082 Amylin Pharmaceuticals, Inc. * 300 11,208 Barr Pharmaceuticals, Inc. * 700 32,445 Barrier Therapeutics, Inc. * 400 2,760 Cerus Corp. * 500 3,375 DUSA Pharmaceuticals, Inc. * 400 1,432 Enzon Pharmaceuticals, Inc. * 700 5,705 Forest Laboratories, Inc. * 1,700 87,448 Lannett Co., Inc. * 500 2,575 Metabasis Therapeutics, Inc. * 100 735 Neurogen Corp. * 600 3,900 NPS Pharmaceuticals, Inc. * 700 2,373 Rigel Pharmaceuticals, Inc. * 400 4,344 ZymoGenetics, Inc. * 800 12,448 -------------- 278,478 ELECTRIC UTILITIES 1.3% Dominion Resources, Inc. 740 65,690 Duke Energy Corp. 5,600 113,624 TXU Corp. 1,500 96,150 -------------- 275,464 FINANCIAL INVESTMENTS 0.1% Williams Scotsman International, Inc. * 700 13,762 Winmark Corp. * 195 3,900 -------------- 17,662 FOREST PRODUCTS & PAPER 0.6% 3M Co. 1,400 107,002 Caraustar Industries, Inc. * 500 3,140 Deltic Timber Corp. 200 9,592 -------------- 119,734
NUMBER OF VALUE SECURITY SHARES ($) FURNITURE & HOUSEHOLD ITEMS 1.3% Cooper Industries Ltd., Class A 700 31,493 HNI Corp. 400 18,372 Newell Rubbermaid, Inc. 1,746 54,283 Omnova Solutions, Inc. * 700 3,822 The Procter & Gamble Co. 2,450 154,742 -------------- 262,712 GAS & OTHER PUBLIC UTILITIES 0.2% Casella Waste Systems, Inc., Class A * 500 4,880 Republic Services, Inc. 1,200 33,384 -------------- 38,264 GOVERNMENT AIRCRAFT & DEFENSE 0.5% GenCorp, Inc. * 900 12,456 LaBarge, Inc. * 250 3,250 Textron, Inc. 700 62,860 The Allied Defense Group, Inc. * 300 2,565 United Industrial Corp. 200 11,040 -------------- 92,171 HEALTH CARE & HOSPITAL 0.6% Coventry Health Care, Inc. * 900 50,445 DaVita, Inc. * 100 5,332 Quest Diagnostics, Inc. 1,200 59,844 Tenet Healthcare Corp. * 1,300 8,359 VistaCare, Inc., Class A * 300 2,610 -------------- 126,590 INFORMATION & SERVICES 1.0% Administaff, Inc. 500 17,600 Arena Pharmaceuticals, Inc. * 800 8,688 BearingPoint, Inc. * 2,400 18,384 deCODE genetics, Inc. * 900 3,285 Devcon International Corp. * 200 980 Euronet Worldwide, Inc. * 600 16,116 Exelixis, Inc. * 1,500 14,910 Global Cash Access Holdings, Inc. * 1,200 20,028 Michael Baker Corp. * 100 2,430 Paychex, Inc. 1,800 68,166 The Corporate Executive Board Co. 400 30,384 Universal Technical Institute, Inc. * 500 11,540 -------------- 212,511 INSTRUMENTS 1.3% AngioDynamics, Inc. * 300 5,067 Boston Scientific Corp. * 600 8,724 Daxor Corp. * 200 2,650 Ixia * 1,100 10,230 Measurement Specialties, Inc. * 400 9,024 Medtronic, Inc. 1,500 73,590 OraSure Technologies, Inc. * 700 5,145 Quidel Corp. * 400 4,800 Regeneration Technologies, Inc. * 400 2,900 Somanetics Corp. * 358 7,138 St. Jude Medical, Inc. * 3,400 127,874 Tektronix, Inc. 300 8,448 Varian Medical Systems, Inc. * 210 10,015 -------------- 275,605
See financial notes. 112 Laudus Funds Annual Report LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) INSURANCE 0.6% Brown & Brown, Inc. 1,300 35,165 The Progressive Corp. 4,070 88,807 -------------- 123,972 INTEGRATED OIL COMPANIES 0.1% ConocoPhillips 400 27,340 IT HARDWARE 6.5% Advanced Micro Devices, Inc. * 2,600 33,956 Altera Corp. * 3,300 65,967 Broadcom Corp., Class A * 4,100 131,487 Comverse Technology, Inc. * 1,500 32,025 HI/FN, Inc. * 300 1,821 Intel Corp. 19,760 378,009 Intervoice, Inc. * 500 3,320 Kulicke and Soffa Industries, Inc. * 1,000 9,250 Linear Technology Corp. 4,700 148,473 Maxim Integrated Products, Inc. 4,000 117,600 Microchip Technology, Inc. 120 4,263 Microsemi Corp. * 1,000 20,810 National Semiconductor Corp. 2,000 48,280 Power-One, Inc. * 1,300 7,436 Powerwave Technologies, Inc. * 100 569 QUALCOMM, Inc. 7,400 315,684 Rackable Systems, Inc. * 500 8,485 Texas Instruments, Inc. 600 18,060 Video Display Corp. * 300 2,397 Virage Logic Corp. * 400 2,908 -------------- 1,350,800 LAND & WATER TRANSPORTATION 1.8% C.H. Robinson Worldwide, Inc. 900 42,975 Heartland Express, Inc. 1,400 22,232 Landstar Systems, Inc. 200 9,168 Sirva, Inc. * 1,100 3,927 United Parcel Service, Inc., Class B 4,250 297,925 -------------- 376,227 MAINFRAME & MINICOMPUTERS 1.5% Dell, Inc. * 13,400 311,014 METAL PRODUCTS & MACHINERY 1.2% Actuant Corp., Class A 400 20,324 Blount International, Inc. * 100 1,245 Dover Corp. 500 24,405 ITT Corp. 1,000 60,320 Joy Global, Inc. 800 34,320 Rockwell Automation, Inc. 1,000 59,870 Shiloh Industries, Inc. * 300 3,384 Zebra Technologies Corp., Class A * 900 34,749 -------------- 238,617 MISCELLANEOUS FINANCE 1.5% E*TRADE Financial Corp. * 6,500 137,930 First Albany Cos., Inc. * 300 480 GAMCO Investors, Inc., Class A 200 8,666 Legg Mason, Inc. 1,400 131,894 Nasdaq Stock Market, Inc. * 1,000 29,410 -------------- 308,380 OIL & COAL RESOURCES 1.3% Clayton Williams Energy, Inc. * 300 8,511 Energy Partners, Ltd. * 500 9,075 EOG Resources, Inc. 410 29,250
NUMBER OF VALUE SECURITY SHARES ($) Foundation Coal Holdings, Inc. 200 6,868 Massey Energy Co. 1,100 26,389 Plains Exploration & Production Co. * 700 31,598 Southwestern Energy Co. * 1,200 49,176 Ultra Petroleum Corp. * 2,140 113,698 -------------- 274,565 OIL DISTRIBUTION 0.1% Cheniere Energy, Inc. * 800 24,920 OIL DRILLING & SERVICES 0.0% TGC Industries, Inc. * 300 2,583 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.5% Eastman Kodak Co. 1,470 33,163 Intermec, Inc. * 1,000 22,340 SanDisk Corp. * 1,200 52,560 -------------- 108,063 PUBLISHING, BROADCASTING & CINEMA 0.6% John Wiley & Sons, Inc., Class A 700 26,432 Outdoor Channel Holdings, Inc. * 500 5,110 Sun-Times Media Group, Inc., Class A 1,200 5,952 The Interpublic Group of Cos., Inc. * 1,200 14,772 Viacom, Inc., Class B * 1,200 49,332 XM Satellite Radio Holdings, Inc., Class A * 1,900 24,548 -------------- 126,146 REAL ESTATE INVESTMENT TRUSTS 1.6% Boston Properties, Inc. 700 82,180 Equity Residential 2,900 139,867 Plum Creek Timber Co., Inc. 2,000 78,840 Regency Centers Corp. 325 27,154 -------------- 328,041 RESTAURANTS, HOTELS & THEATERS 0.7% Boyd Gaming Corp. 700 33,348 Darden Restaurants, Inc. 100 4,119 Isle of Capri Casinos, Inc. * 500 12,810 Maui Land & Pineapple Co, Inc. * 200 7,230 Max & Erma's Restaurants, Inc. * 200 1,800 MoneyGram International, Inc. 980 27,205 Nevada Gold & Casinos, Inc. * 400 804 Pinnacle Entertainment, Inc. * 600 17,442 Scientific Games, Class A * 700 22,981 Texas Roadhouse, Inc., Class A * 1,000 14,250 -------------- 141,989 RETAIL 4.6% Amazon.com, Inc. * 4,200 167,118 Barnes & Noble, Inc. 700 27,615 Bed, Bath & Beyond, Inc. * 1,400 56,238 Coldwater Creek, Inc. * 1,100 22,308 eBay, Inc. * 10,500 348,075 Fastenal Co. 1,000 35,050 Gaiam, Inc., Class A * 100 1,574 Office Depot, Inc. * 900 31,626 PetMed Express, Inc. * 400 4,740 Shoe Pavilion, Inc. * 300 1,860 The Gap, Inc. 4,000 68,840 The Home Depot, Inc. 2,410 88,543 The Pantry, Inc. * 400 18,088 Tiffany & Co. 140 6,367
See financial notes. Laudus Funds Annual Report 113 LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Walgreen Co. 1,600 73,424 Whole Foods Market, Inc. 90 4,037 -------------- 955,503 SOAPS & COSMETICS 0.4% Johnson & Johnson 1,500 90,390 SOFTWARE 4.8% Adept Technology, Inc. * 200 1,550 Adobe Systems, Inc. * 3,100 129,270 Aptimus, Inc. * 200 680 Autobytel, Inc. * 700 2,478 Autodesk, Inc. * 2,600 97,760 Automatic Data Processing, Inc. 1,200 58,080 CACI International, Inc., Class A * 500 23,430 Citrix Systems, Inc. * 200 6,406 Concur Technologies, Inc. * 600 10,476 Electronic Arts, Inc. * 2,900 146,044 First Data Corp. 4,100 110,290 Innotrac Corp. * 300 807 Lionbridge Technologies, Inc. * 1,000 5,090 Logility, Inc. * 100 814 Mediware Information Systems * 300 2,718 Microsoft Corp. 9,600 267,552 MSC.Software Corp. * 700 9,625 National Instruments Corp. 1,000 26,230 NAVTEQ Corp. * 900 31,050 PLATO Learning, Inc. * 100 420
NUMBER OF VALUE SECURITY SHARES ($) Q-Med, Inc. * 410 1,816 Radiant Systems, Inc. * 500 6,515 Red Hat, Inc. * 480 11,007 Verisign, Inc. * 1,600 40,192 Websense Inc * 200 4,598 -------------- 994,898 TEXTILES & APPAREL 0.4% Cintas Corp. 1,000 36,100 K-Swiss, Inc., Class A 600 16,212 The Timberland Co., Class A * 800 20,824 -------------- 73,136 WHOLESALE 0.6% Brightpoint, Inc. * 380 4,347 Express Scripts, Inc. * 900 72,648 H&E Equipment Services, Inc. * 500 10,750 Pomeroy IT Solutions, Inc. * 100 902 WESCO International, Inc. * 500 31,390 -------------- 120,037 -------------- 9,820,500 -------------- TOTAL SHORT SALES (PROCEEDS $18,939,163) 19,721,130 - -------------------------------------------------------------------------------- END OF SHORT SALE POSITIONS.
* Non-income producing security. (b) Fair-valued by Management. See financial notes. 114 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS as of March 31, 2007
COST/PROCEEDS VALUE HOLDINGS BY CATEGORY ($) ($) - ----------------------------------------------------------------- 93.0% COMMON STOCK 247,794,675 302,181,168 5.6% SHORT-TERM INVESTMENT 18,114,959 18,114,959 - ----------------------------------------------------------------- 98.6% TOTAL INVESTMENTS 265,909,634 320,296,127 (93.5)% SHORT SALES (305,578,183) (303,890,759) 93.3% DEPOSITS WITH BROKER AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT 303,267,401 303,267,401 1.6% OTHER ASSETS AND LIABILITIES 5,322,345 - ----------------------------------------------------------------- 100.0% NET ASSETS 324,995,114
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK (A) 93.0% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 1.6% - ----------------------------------------------------------------- Corn Products International, Inc. 33,730 1,200,451 Flowers Foods, Inc. 2,745 82,817 J & J Snack Foods Corp. 4,390 173,361 Monterey Gourmet Foods, Inc. * 12,820 54,870 National Beverage Corp. * 5,840 102,433 Omega Protein Corp. * 12,520 87,390 Penford Corp. 2,796 56,311 Ralcorp Holdings, Inc. * 23,140 1,487,902 Seaboard Corp. 400 904,000 Seneca Foods Corp., Class B * 3,200 89,792 Tasty Baking Co. 8,210 71,673 The Pepsi Bottling Group, Inc. 16,480 525,547 The Topps Co., Inc. 34,942 339,636 --------------- 5,176,183 AIRLINES 1.0% - ----------------------------------------------------------------- ABX Air, Inc. * 1,250 8,562 Air Methods Corp. * 840 20,177 AirNet Systems, Inc. * 2,060 6,613 Alaska Air Group, Inc. * 36,170 1,378,077 Mesa Air Group, Inc. * 35,200 265,056 Republic Airways Holdings, Inc. * 13,700 314,552 SkyWest, Inc. 49,547 1,329,346 --------------- 3,322,383 AUTOS 0.5% - ----------------------------------------------------------------- Aftermarket Technology Corp. * 19,792 480,550 Autoliv, Inc. 18,140 1,035,975 Noble International, Ltd. 626 10,504 Spartan Motors, Inc. 7,173 166,485 Supreme Industries, Inc., Class A 12,630 73,886 --------------- 1,767,400 BANKS & CREDIT INSTITUTIONS 3.0% - ----------------------------------------------------------------- 1st Constitution Bancorp * 169 3,061 1st Independence Financial Group, Inc. 60 1,015 1st Source Corp. 3,783 99,001 Advanta Corp., Class A 5,524 221,402 Advanta Corp., Class B 1,987 87,110 American Community Bancshares, Inc. 4,740 53,562 American National Bankshares, Inc. 4,800 109,872 Ameris Bancorp 2,735 66,953
NUMBER OF VALUE SECURITY SHARES ($) ASTA Funding, Inc. 7,914 341,727 Banco Latinoamericano de Exportaciones, S.A., Class E 5,020 83,533 BankUnited Financial Corp., Class A 2,349 49,822 Berkshire Hills Bancorp, Inc. 150 5,047 Beverly Hills Bancorp, Inc. 20,750 157,700 BNCCorp, Inc. * 498 8,192 BOE Financial Services of Virginia, Inc. 455 14,223 Britton & Koontz Capital Corp. 200 3,800 C&F Financial Corp. 130 5,713 Cadence Financial Corp. 56 1,120 Carver Bancorp, Inc. 400 6,700 Central Bancorp, Inc. 450 13,702 Centrue Financial Corp. 1,630 31,573 CFS Bancorp, Inc. 1,865 27,956 Citizens First Bancorp, Inc. 329 7,495 Codorus Valley Bancorp, Inc. 2,559 48,698 Community Bank Shares of Indiana, Inc. 2,209 47,991 Community Capital Corp. 480 9,694 Community Financial Corp. 3,600 43,704 Community Shores Bank Corp. * 10 124 Community West Bancshares 808 12,783 CompuCredit Corp. * 6,786 211,859 Consumer Portfolio Services, Inc. * 20,872 128,363 Corus Bankshares, Inc. 17,485 298,294 Cowlitz Bancorp * 100 1,700 Delta Financial Corp. 15,150 125,290 Dollar Financial Corp. * 12,650 320,045 Downey Financial Corp. 330 21,298 ECB Bancorp, Inc. 3,162 105,927 Exchange National Bancshares, Inc. 420 15,204 Farmers Capital Bank Corp. 240 7,051 Federal Agricultural Mortgage Corp., Class C 7,430 202,096 Fidelity Southern Corp. 510 9,710 First Bancshares, Inc. * 200 3,375 First BancTrust Corp. 400 4,732 First Capital, Inc. 1,632 29,343 First Charter Corp. 240 5,160 First Citizens BancShares, Inc., Class A 1,650 331,650 First Defiance Financial Corp. 2,068 59,352 First Federal Bancshares of Arkansas, Inc. 40 946 First Federal Bankshares, Inc. 100 2,145 First Financial Service Corp. 110 3,156 First Indiana Corp. 13,300 290,605 First Keystone Finl, Inc. * 220 4,334 First M&F Corp. 42 773 First Mariner Bancorp, Inc. * 3,091 46,983 First Merchants Corp. 211 5,005 First Niles Financial, Inc. 99 1,183 First Place Financial Corp. 4,915 105,427 First United Corp. 2,375 53,437 First West Virginia Bancorp, Inc. 10 203 FNB Corp. of North Carolina 5,020 84,085 FNB Corp. of Virginia 100 3,583
See financial notes. Laudus Funds Annual Report 115 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) FNB Financial Services Corp. 7,102 108,874 Franklin Bank Corp. * 21,424 382,847 GB&T Bancshares, Inc. 490 8,884 Great Pee Dee Bancorp, Inc. 1 15 Great Southern Bancorp, Inc. 10,445 305,830 Greene County Bancshares, Inc. 100 3,391 Guaranty Federal Bancshares, Inc. 190 5,567 Habersham Bancorp, Inc. 1,250 28,687 HF Financial Corp. 770 14,052 Hopfed Bancorp, Inc. 60 958 Horizon Bancorp 2,800 75,348 Intervest Bancshares Corp. * 5,600 160,720 Irwin Financial Corp. 5,030 93,759 ITLA Capital Corp. 4,800 249,696 Lakeland Financial Corp. 200 4,540 Leesport Financial Corp. 4,662 100,792 Lincoln Bancorp 8 152 LSB Financial Corp. 1,504 39,766 Macatawa Bank Corp. 280 5,152 MASSBANK Corp. 400 13,120 Meta Financial Group, Inc. 1,100 34,650 MFB Corp. 600 20,160 MidWestOne Financial Group, Inc. 3,100 54,157 MutualFirst Financial, Inc. 2,810 55,301 National Bankshares, Inc. 999 23,686 NBT Bancorp, Inc. 6,219 145,711 North Central Bancshares, Inc. 1,867 74,848 North Valley Bancorp 2,800 70,364 Northeast Bancorp 270 5,036 Northrim BanCorp, Inc. 1,050 31,027 Northway Financial, Inc. 400 13,058 OceanFirst Financial Corp. 4,544 78,838 Pacific Premier Bancorp, Inc. * 400 4,320 Parke Bancorp, Inc. 2,223 40,859 Parkvale Financial Corp. 630 18,402 Pinnacle Bancshares, Inc. 100 1,511 Provident Community Bancshares, Inc. 50 1,043 Provident Financial Holdings, Inc. 3,189 87,761 Renasant Corp. 1 12 Republic First Bancorp, Inc. * 6,385 82,239 River Valley Bancorp 393 7,015 Security Bank Corp. 16,214 326,550 Shore Financial Corp. 30 420 Simmons First National Corp., Class A 2,754 82,813 South Street Financial Corp. 100 855 Southern Missouri Bancorp, Inc. 130 2,009 Southwest Bancorp, Inc. 5,700 146,433 Sterling Financial Corp. 1,670 52,087 Superior Bancorp * 9,910 107,028 Synovus Financial Corp. 5,500 177,870 TF Financial Corp. 2,540 77,470 The First Marblehead Corp. 21,370 959,299 The Washington Savings Bank, F.S.B. 6,400 54,400 TierOne Corp. 16,946 458,220 Tower Financial Corp. 300 5,052
NUMBER OF VALUE SECURITY SHARES ($) United Bancshares, Inc. 10 162 United Community Financial Corp. 6,933 76,610 United Security Bancshares, Inc. 4,819 141,823 Unity Bancorp, Inc. 2,710 32,141 Vineyard National Bancorp Co. 9,700 223,488 Wainwright Bank & Trust Co. 4,841 61,868 Willow Financial Bancorp, Inc. 367 4,734 WSFS Financial Corp. 4,300 277,264 --------------- 9,766,331 BASIC MINERALS & METALS 4.0% - ----------------------------------------------------------------- Allegheny Technologies, Inc. 33,000 3,520,770 Chaparral Steel Co. 840 48,863 Cleveland-Cliffs, Inc. 5,480 350,775 CommScope, Inc. * 410 17,589 Freeport-McMoran Copper & Gold, Inc., Class B 8,280 548,053 Friedman Industries, Inc. 2,180 20,143 Precision Castparts Corp. 16,293 1,695,287 Southern Copper Corp. 29,740 2,131,168 Steel Dynamics, Inc. 380 16,416 Superior Essex, Inc. * 3,057 105,986 Synalloy Corp. 2,600 72,592 United States Steel Corp. 42,920 4,256,376 Universal Stainless & Alloy Products, Inc. * 1,399 66,411 --------------- 12,850,429 BEER, LIQUOR, & TOBACCO 0.1% - ----------------------------------------------------------------- MGP Ingredients, Inc. 1,130 23,018 The Boston Beer Co., Inc. * 5,200 173,420 --------------- 196,438 BIOTECHNOLOGY 1.6% - ----------------------------------------------------------------- Anika Therapeutics, Inc. * 9,563 118,103 Applera Corp. -- Celera Group * 59,588 846,150 Celgene Corp. * 73,438 3,852,558 Digene Corp. * 4,700 199,327 Harvard Bioscience, Inc. * 30,270 145,901 --------------- 5,162,039 CELLULAR & WIRELESS 1.2% - ----------------------------------------------------------------- NII Holdings, Inc. * 52,837 3,919,449 USA Mobility, Inc. * 4,280 85,300 --------------- 4,004,749 CHEMICALS & RUBBER 2.7% - ----------------------------------------------------------------- A. Schulman, Inc. 11,742 276,642 Bairnco Corp. 2,660 35,777 CF Industries Holdings, Inc. 8,050 310,327 FMC Corp. 29,780 2,246,305 Hercules, Inc. * 98,914 1,932,780 Innospec, Inc. 10,400 599,456 Pioneer Cos., Inc. * 190 5,252 Stepan Co. 1,700 44,625 The Sherwin-Williams Co. 51,800 3,420,872 --------------- 8,872,036
See financial notes. 116 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) COMMERCIAL AIRCRAFT & COMPONENTS 0.1% - ----------------------------------------------------------------- Ducommun, Inc. * 5,410 139,199 Triumph Group, Inc. 3,240 179,302 --------------- 318,501 COMMUNICATIONS UTILITIES 1.2% - ----------------------------------------------------------------- Atlantic Tele-Network, Inc. 7,150 186,830 CT Communications, Inc. 14,797 356,608 D&E Communications, Inc. 13,095 174,425 Gilat Satellite Networks Ltd. * 32,999 272,242 Golden Telecom, Inc. 10,134 561,221 HickoryTech Corp. 1,740 12,058 Mediacom Communications Corp., Class A * 55,000 447,700 PAETEC Holding Corp. * 1,003 10,511 Playboy Enterprises, Inc., Class A * 20,310 205,131 Premiere Global Services, Inc. * 69,900 784,278 United Online, Inc. 57,106 801,197 --------------- 3,812,201 CONSTRUCTION & HOMEBUILDING 1.1% - ----------------------------------------------------------------- Comfort Systems USA, Inc. 39,250 470,215 Granite Construction, Inc. 19,331 1,068,231 Horizon Offshore, Inc. * 1,840 26,606 Infrasource Services, Inc. * 11,950 364,833 Insituform Technologies, Inc., Class A * 24,802 515,634 Meadow Valley Corp. * 3,780 48,989 Palm Harbor Homes, Inc. * 7,620 109,271 Perini Corp. * 17,200 633,992 Skyline Corp. 6,700 226,058 U.S. Home Systems, Inc. * 420 5,355 --------------- 3,469,184 CONSTRUCTION MATERIALS 0.1% - ----------------------------------------------------------------- Ameron International Corp. 1,500 98,790 Continental Materials Corp. * 800 22,840 Martin Marietta Materials, Inc. 210 28,392 MDU Resources Group, Inc. 2,000 57,480 Oil-Dri Corp. of America 2,050 34,235 Patrick Industries, Inc. * 1,880 22,541 Rock of Ages Corp. * 1,170 5,757 U.S. Concrete, Inc. * 360 2,815 United States Lime & Minerals, Inc. * 100 3,076 Vulcan Materials Co. 1,000 116,480 --------------- 392,406 CONSUMER DURABLES 0.2% - ----------------------------------------------------------------- Arctic Cat, Inc. 13,900 270,911 Universal Electronics, Inc. * 10,789 300,582 Whirlpool Corp. 100 8,491 --------------- 579,984 DRUGS & PHARMACEUTICALS 1.8% - ----------------------------------------------------------------- Dade Behring Holdings, Inc. 1,850 81,123 Geopharma, Inc. * 3,530 15,532 King Pharmaceuticals, Inc. * 135,250 2,660,367 Natural Alternative International, Inc. * 520 4,170 NBTY, Inc. * 38,430 2,038,327
NUMBER OF VALUE SECURITY SHARES ($) Nutraceutical International Corp. * 11,800 194,700 Perrigo Co. 35,225 622,073 Schiff Nutrition International, Inc. * 8,650 59,426 Sciele Pharma, Inc. * 12,314 291,596 Theragenics Corp. * 1,480 9,265 --------------- 5,976,579 ELECTRIC UTILITIES 1.5% - ----------------------------------------------------------------- Alliant Energy Corp. 2,300 103,086 Central Vermont Public Service Corp. 200 5,764 CH Energy Group, Inc. 900 43,821 Northeast Utilities 66,293 2,172,421 OGE Energy Corp. 100 3,880 Pinnacle West Capital Corp. 23,500 1,133,875 Portland General Electric Co. 1,500 43,800 Puget Energy, Inc. 510 13,097 Unisource Energy Corp. 1,740 65,337 Unitil Corp. 1,100 29,887 Westar Energy, Inc. 41,500 1,142,080 --------------- 4,757,048 FINANCIAL INVESTMENTS 1.4% - ----------------------------------------------------------------- Aaron Rents, Inc. 8,890 235,052 Ampal-American Israel Corp., Class A * 1,860 8,165 California First National Bancorp 3,243 42,645 Electro Rent Corp. * 4,474 64,426 Enstar Group Ltd. * 130 12,823 ePlus, Inc. * 3,652 38,894 Jackson Hewitt Tax Service, Inc. 18,034 580,334 KMG America Corp. * 22,520 104,268 Macrovision Corp. * 15,892 398,095 PICO Holdings, Inc. * 6,277 268,091 SRS Labs, Inc. * 4,120 57,392 Trinity Industries, Inc. 57,330 2,403,273 United Rentals, Inc. * 7,752 213,180 UTEK Corp. 2,750 36,300 Willis Lease Finance Corp. * 6,630 68,355 --------------- 4,531,293 FOREST PRODUCTS & PAPER 0.1% - ----------------------------------------------------------------- CSS Industries, Inc. 390 14,617 Lydall, Inc. * 14,960 237,715 Nashua Corp. * 220 1,958 Packaging Corp. of America 2,200 53,680 --------------- 307,970 FURNITURE & HOUSEHOLD ITEMS 1.7% - ----------------------------------------------------------------- A.T. Cross Co., Class A * 300 2,640 Acuity Brands, Inc. 200 10,888 AEP Industries, Inc. * 4,064 174,752 American Biltrite, Inc. * 1,940 18,061 AZZ, Inc. * 4,380 183,960 Bassett Furniture Industries, Inc. 4,350 64,032 Channell Commercial Corp. * 6,023 23,972 Chase Corp. 1,600 52,016 Chromcraft Revington, Inc. * 6,140 59,067 Communications Systems, Inc. 4,200 43,596 Craftmade International, Inc. 410 6,187 GameTech International, Inc. * 1,160 14,175
See financial notes. Laudus Funds Annual Report 117 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Genlyte Group, Inc. * 3,190 225,054 Herman Miller, Inc. 19,438 650,979 Hooker Furniture Corp. 3,279 65,744 JAKKS Pacific, Inc. * 16,891 403,695 K2, Inc. * 42,600 515,034 La-Z-Boy, Inc. 44,600 552,148 Mity Enterprises, Inc. * 564 10,772 Movado Group, Inc. 15,420 454,119 National Presto Industries, Inc. 1,320 81,365 Preformed Line Products Co. 500 18,495 RC2 Corp. * 3,590 145,000 Steelcase, Inc., Class A 74,100 1,473,849 Thomas & Betts Corp. * 4,154 202,798 Tredegar Corp. 860 19,599 Virco Manufacturing Corp. * 1,310 8,843 --------------- 5,480,840 GAS & OTHER PUBLIC UTILITIES 0.4% - ----------------------------------------------------------------- Artesian Resources Corp., Class A 645 13,287 Florida Public Utilities Co. 1,800 22,320 Industrial Services of America, Inc. * 770 5,120 Middlesex Water Co. 590 10,850 Nicor, Inc. 9,330 451,759 SJW Corp. 8,380 339,222 Waste Industries USA, Inc. 5,030 138,174 WGL Holdings, Inc. 4,760 152,225 --------------- 1,132,957 GOVERNMENT AIRCRAFT & DEFENSE 0.1% - ----------------------------------------------------------------- Armor Holdings, Inc. * 2,920 196,603 Herley Industries, Inc. * 132 2,062 --------------- 198,665 HEALTH CARE & HOSPITAL 1.4% - ----------------------------------------------------------------- Almost Family, Inc. * 3,800 94,620 Amedisys, Inc. * 1,400 45,402 American Shared Hospital Services 3,400 20,060 Gentiva Health Services, Inc. * 13,845 279,254 Hanger Orthopedic Group, Inc. * 18,400 214,728 Health Net, Inc. * 3,236 174,129 Humana, Inc. * 44,600 2,587,692 IntegraMed America, Inc. * 4,925 73,629 Laboratory Corp. of America Holdings * 2 145 Manor Care, Inc. 3,132 170,256 MedCath Corp. * 8,901 242,997 MEDTOX Scientific, Inc. * 3,190 58,696 National Dentex Corp. * 6,019 84,748 National Healthcare Corp. 790 40,274 NovaMed, Inc. * 14,098 91,355 RehabCare Group, Inc. * 80 1,270 Res-Care, Inc. * 20,969 366,957 Stratagene Corp. * 1,220 9,906 --------------- 4,556,118 INFORMATION & SERVICES 5.2% - ----------------------------------------------------------------- Ablest, Inc. * 2,100 15,509 ABM Industries, Inc. 2,680 70,725 Albany Molecular Research, Inc. * 23,350 229,998 Barrett Business Services, Inc. 7,320 168,726
NUMBER OF VALUE SECURITY SHARES ($) Bioanalytical Systems, Inc. * 1,250 8,413 Carriage Services, Inc. * 1,770 14,319 Cass Information Systems, Inc. 990 33,422 CBIZ, Inc. * 1,030 7,313 CDI Corp. 12,579 363,785 CompuDyne Corp. * 2,460 14,932 Convergys Corp. * 39,390 1,000,900 CPI Corp. 5,570 292,481 Ecology & Environment, Inc. 3,030 35,996 Exponent, Inc. * 14,600 291,270 Forrester Research, Inc. * 8,458 239,869 GP Strategies Corp. * 12,690 115,479 IAC/InterActive Corp. * 25,400 957,834 ICT Group, Inc. * 1,395 24,413 Infinity Pharmaceuticals, Inc. * 6,150 74,046 Kelly Services, Inc., Class A 17,600 566,720 Kendle International, Inc. * 12,687 450,642 Kforce, Inc. * 30,300 417,231 Layne Christensen Co. * 4,740 172,631 Manpower, Inc. 1,940 143,114 Metal Management, Inc. 20,258 935,920 Midas, Inc. * 6,520 140,636 Monro Muffler Brake, Inc. 10,520 369,252 MPS Group, Inc. * 80,390 1,137,518 National Medical Health Card Systems, Inc. * 1,930 29,857 National Technical Systems, Inc. * 2,370 14,386 Nobel Learning Communities, Inc. * 40 606 PAREXEL International Corp. * 23,700 852,489 PDI, Inc. * 13,870 132,042 RCM Technologies, Inc. * 12,100 86,273 Refac Optical Group * 140 837 Spherion Corp. * 47,730 420,979 SRI/Surgical Express, Inc. * 100 504 Stewart Enterprises, Inc., Class A 95,353 768,545 TeleTech Holdings, Inc. * 29,570 1,084,923 The Dun & Bradstreet Corp. 24,580 2,241,696 The Geo Group, Inc. * 6,360 288,235 URS Corp. * 45,300 1,929,327 Viad Corp. 6,550 252,830 Volt Information Sciences, Inc. * 12,000 314,280 VSE Corp. 2,395 98,578 --------------- 16,809,481 INSTRUMENTS 4.6% - ----------------------------------------------------------------- 1-800 CONTACTS, Inc. * 370 6,216 Aetrium, Inc. * 1,200 4,464 Allied Healthcare Products, Inc. * 1,942 11,759 Angeion Corp. * 2,596 38,161 Astro-Med, Inc. 3,420 37,620 Atrion Corp. 280 25,710 Bio-Rad Laboratories, Inc., Class A * 14,590 1,018,966 Bruker BioSciences Corp. * 33,708 354,608 Cardiac Science Corp. * 8,408 76,933 Cholestech Corp. * 5,360 92,406 Coherent, Inc. * 24,710 784,295 CyberOptics Corp. * 460 6,417 Datascope Corp. 9,504 343,950 Edwards Lifesciences Corp. * 800 40,560 Enpath Medical, Inc. * 210 2,100
See financial notes. 118 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) Esterline Technologies Corp. * 22,800 936,396 FEI Co. * 14,924 538,159 Frequency Electronics, Inc. 6,910 75,457 Hurco Cos., Inc. * 6,570 281,524 Immucor, Inc. * 47,064 1,385,094 Input/Output, Inc. * 42,320 583,170 IntriCon Corp. * 850 5,015 K-Tron International, Inc. * 2,300 164,979 Keithley Instruments, Inc. 11,400 174,306 Kewaunee Scientific Corp. 1,840 19,596 Mesa Laboratories, Inc. 100 1,896 MOCON, Inc. 4,900 63,014 New Brunswick Scientific Co., Inc. * 520 4,196 O.I. Corp. 1,200 13,770 Oakley, Inc. 22,330 449,726 Orthofix International N.V. * 7,332 374,299 Perceptron, Inc. * 6,170 55,530 PerkinElmer, Inc. 101,550 2,459,541 Schmitt Industries, Inc. * 769 5,860 Sonic Innovations, Inc. * 19,730 166,719 Span-America Medical Systems, Inc. 2,600 41,366 Teleflex, Inc. 34,930 2,377,685 Tollgrade Communications, Inc. * 13,886 174,408 Varian, Inc. * 1,740 101,372 Viasys Healthcare, Inc. * 20,700 703,593 Vicon Industries, Inc. * 80 796 Waters Corp. * 13,560 786,480 Zoll Medical Corp. * 1,080 28,782 Zygo Corp. * 17,250 276,172 --------------- 15,093,066 INSURANCE 7.5% - ----------------------------------------------------------------- Alleghany Corp. * 51 19,054 American Equity Investment Life Holding Co. 9,072 119,115 American Financial Group, Inc. 46,080 1,568,563 American National Insurance Co. 3,081 394,152 American Safety Insurance Holdings Ltd. * 5,000 95,300 Arch Capital Group Ltd. * 34,769 2,371,593 Aspen Insurance Holdings Ltd. 67,172 1,760,578 CNA Financial Corp. * 44,530 1,918,798 Crawford & Co., Class B 10,750 62,350 Endurance Specialty Holdings Ltd. 59,994 2,144,186 Everest Re Group Ltd. 13,700 1,317,529 FPIC Insurance Group, Inc. * 9,000 402,030 Hallmark Financial Services, Inc. * 880 10,595 HCC Insurance Holdings, Inc. 73,291 2,257,363 Horace Mann Educators Corp. 900 18,495 IPC Holdings Ltd. 56,652 1,634,410 Kansas City Life Insurance Co. 310 13,950 Max Re Capital Ltd. 11,650 296,842 Meadowbrook Insurance Group, Inc. * 1,120 12,309 Mercer Insurance Group, Inc. 1,890 37,592 MGIC Investment Corp. 560 32,995 National Western Life Insurance Co., Class A * 950 232,560 NYMAGIC, Inc. 2,290 93,547
NUMBER OF VALUE SECURITY SHARES ($) Old Republic International Corp. 11,750 259,910 PartnerRe Ltd. 35,400 2,426,316 Presidential Life Corp. 855 16,861 Radian Group, Inc. 22,300 1,223,824 Reinsurance Group of America, Inc. 23,700 1,367,964 RenaissanceRe Holdings Ltd. 35,546 1,782,276 RTW, Inc. * 100 817 Unico American Corp. * 2,900 36,743 United America Indemnity Ltd., Class A * 11,055 256,476 Wesco Financial Corp. 600 276,000 --------------- 24,461,093 INTEGRATED OIL COMPANIES 0.0% - ----------------------------------------------------------------- Marathon Oil Corp. 113 11,168 IT HARDWARE 6.6% - ----------------------------------------------------------------- American Technical Ceramics Corp. * 4,470 62,088 AMIS Holdings, Inc. * 2,100 22,995 Amtech Systems, Inc. * 1,680 12,231 Avici Systems, Inc. * 2,910 33,232 Avocent Corp. * 17,501 472,002 AVX Corp. 45,095 685,444 Axcelis Technologies, Inc. * 10,841 82,825 CTS Corp. 25,780 356,280 Cymer, Inc. * 30,613 1,271,970 Digi International, Inc. * 20,507 260,439 EMS Technologies, Inc. * 14,519 279,781 Emulex Corp. * 6,380 116,690 Espey Manufacturing & Electronics Corp. 1,200 23,580 Exar Corp. * 27,676 366,430 Flextronics International Ltd. * 3,450 37,743 Globecomm Systems, Inc. * 5,700 60,990 Harmonic, Inc. * 520 5,106 Harris Corp. 1,035 52,733 Imation Corp. 820 33,112 Integrated Device Technology, Inc. * 148,697 2,292,908 International Rectifier Corp. * 55,440 2,118,363 L-3 Communications Holdings, Inc. 40 3,499 Lattice Semiconductor Corp. * 39,446 230,759 LSI Logic Corp. * 263,491 2,750,846 MEMC Electronic Materials, Inc. * 11,000 666,380 Merix Corp. * 21,500 176,730 Merrimac Industries, Inc. * 800 7,712 Micron Technology, Inc. * 192 2,319 MKS Instruments, Inc. * 35,200 898,304 Novellus Systems, Inc. * 50,071 1,603,274 Oplink Communications, Inc. * 15,759 283,189 Orbital Sciences Corp. * 54,400 1,019,456 Performance Technologies, Inc. * 3 15 Pericom Semiconductor Corp. * 7,205 70,465 RF Micro Devices, Inc. * 172,285 1,073,336 Rudolph Technologies, Inc. * 22,641 394,859 Semitool, Inc. * 21,370 277,810 SonicWALL, Inc. * 57,264 478,727 Spectrum Control, Inc. * 7,900 97,170 Standard Microsystems Corp. * 4,421 135,017
See financial notes. Laudus Funds Annual Report 119 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Symmetricom, Inc. * 17,210 142,843 Technitrol, Inc. 5,410 141,688 Tekelec * 4,963 73,998 Trans Lux Corp. 1,200 8,820 TriQuint Semiconductor, Inc. * 118,468 592,340 Vishay Intertechnology, Inc. * 107,390 1,501,312 White Electronic Designs Corp. * 5,599 37,289 --------------- 21,315,099 LAND & WATER TRANSPORTATION 2.0% - ----------------------------------------------------------------- B & H Ocean Carriers Ltd. * 6,070 111,081 Covenant Transport, Inc., Class A * 2,455 27,054 Frozen Food Express Industries, Inc. 343 2,854 GulfMark Offshore, Inc. * 16,175 706,039 Hub Group, Inc., Class A * 13,238 383,770 P.A.M. Transportation Services, Inc. * 5,368 110,688 Pacer International, Inc. 31,551 849,984 Royal Caribbean Cruises Ltd. 1,620 68,299 Ryder System, Inc. 44,070 2,174,414 Saia, Inc. * 14,144 335,920 SEACOR Holdings, Inc. * 12,830 1,262,472 Trico Marine Services, Inc. * 6,336 236,079 U.S. Xpress Enterprises, Inc., Class A * 9,369 161,709 --------------- 6,430,363 MAINFRAME & MINICOMPUTERS 0.0% - ----------------------------------------------------------------- Omnicell, Inc. * 3,900 81,588 METAL PRODUCTS & MACHINERY 4.0% - ----------------------------------------------------------------- Acme United Corp. 360 5,004 AGCO Corp. * 73,980 2,735,041 Allied Motion Technologies, Inc. * 4,871 31,126 Astec Industries, Inc. * 16,047 645,892 Asyst Technologies, Inc. * 29,209 205,339 Bonso Electronic International, Inc. 2,830 11,575 Electro Scientific Industries, Inc. * 14,944 287,522 EnPro Industries, Inc. * 20,400 735,420 Evans & Sutherland Computer Corp. * 2,600 8,190 FSI International, Inc. * 33,200 148,404 Gehl Co. * 11,100 281,718 Gerber Scientific, Inc. * 21,619 229,377 Goodman Global, Inc. * 920 16,210 Hardinge, Inc. 3,900 102,024 Kadant, Inc. * 14,100 357,576 Kennametal, Inc. 19,760 1,335,974 Lifetime Brands, Inc. 11,064 231,127 Lincoln Electric Holdings, Inc. 500 29,780 Material Sciences Corp. * 15,780 157,484 MFRI, Inc. * 100 1,854 Newport Corp. * 36,797 602,367 NN, Inc. 10,089 126,012 P & F Industries, Inc., Class A * 700 8,764 Q.E.P. Co., Inc. * 2,240 13,462 Regal Beloit Corp. 14,620 678,076 Robbins & Myers, Inc. 6,290 234,554
NUMBER OF VALUE SECURITY SHARES ($) SPX Corp. 4,740 332,748 Standex International Corp. 6,700 191,017 Tennant Co. 6,400 201,536 Terex Corp. * 16,966 1,217,480 The L.S. Starrett Co., Class A 160 2,880 Twin Disc, Inc. 540 23,058 Varian Semiconductor Equipment Associates, Inc. * 4,002 213,627 Veeco Instruments, Inc. * 29,700 579,150 Velcro Industries N.V. 100 1,729 Wabtec Corp. 1,100 37,939 Watts Water Technologies, Inc., Class A 26,089 992,165 --------------- 13,013,201 MISCELLANEOUS FINANCE 2.5% - ----------------------------------------------------------------- A.G. Edwards, Inc. 44,700 3,092,346 Chicago Mercantile Exchange Holdings, Inc., Class A 259 137,907 Cohen & Steers, Inc. 7,876 339,298 Knight Capital Group, Inc., Class A * 98,800 1,564,992 Raymond James Financial, Inc. 70,300 2,092,128 SEI Investments Co. 100 6,023 SWS Group, Inc. 19,365 480,446 Value Line, Inc. 300 14,340 Waddell & Reed Financial, Inc., Class A 12,020 280,306 --------------- 8,007,786 OIL & COAL RESOURCES 1.0% - ----------------------------------------------------------------- Callon Petroleum Co. * 18,044 244,857 Mariner Energy, Inc. * 53,010 1,014,081 PrimeEnergy, Corp. * 202 11,748 Rosetta Resources, Inc. * 16,190 332,543 Teton Energy Corp. * 2,700 13,068 Unit Corp. * 35,117 1,776,569 VAALCO Energy, Inc. * 710 3,678 --------------- 3,396,544 OIL DISTRIBUTION 0.8% - ----------------------------------------------------------------- Adams Resources & Energy, Inc. 3,383 124,021 Holly Corp. 780 46,254 Tesoro Corp. 18,525 1,860,466 Western Refining, Inc. 16,120 629,002 World Fuel Services Corp. 980 45,335 --------------- 2,705,078 OIL DRILLING & SERVICES 3.2% - ----------------------------------------------------------------- Basic Energy Services, Inc. * 7,620 177,546 Bronco Drilling Co., Inc. * 14,900 246,893 Dawson Geophysical Co. * 1,570 77,762 ENSCO International, Inc. 64,360 3,501,184 Global Industries Ltd. * 9,420 172,292 Helmerich & Payne, Inc. 16,615 504,099 Rowan Cos., Inc. 26,937 874,645 Superior Energy Services, Inc. * 65,690 2,264,334 Tidewater, Inc. 46,300 2,712,254 --------------- 10,531,009
See financial notes. 120 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.7% - ----------------------------------------------------------------- Baldwin Technology Co., Inc., Class A * 15,900 79,500 Brocade Communications Systems, Inc. * 78,602 748,291 Concord Camera Corp. * 1,080 5,044 Komag, Inc. * 24,200 792,066 Printronix, Inc. 1,150 15,928 STEC, Inc. * 42,749 300,953 VeriFone Holdings, Inc. * 13,150 482,999 --------------- 2,424,781 PUBLISHING, BROADCASTING & CINEMA 1.4% - ----------------------------------------------------------------- Alloy, Inc. * 5,330 63,320 American Greetings Corp., Class A 24,320 564,467 Bowne & Co., Inc. 8,700 136,851 Champion Industries, Inc. 1,540 12,720 Consolidated Graphics, Inc. * 9,900 733,095 Franklin Covey Co. * 19,150 151,285 Media General, Inc., Class A 11,940 455,630 Monster Worldwide, Inc. * 4,748 224,913 Paxar Corp. * 26,590 763,133 Regent Communications, Inc. * 4,481 14,429 Saga Communications, Inc., Class A * 18,780 182,729 Scholastic Corp. * 31,991 994,920 Source Interlink Cos., Inc. * 33,301 223,450 The Standard Register Co. 410 5,187 Tufco Technologies, Inc. * 221 1,806 --------------- 4,527,935 REAL ESTATE DEVELOPMENT 1.0% - ----------------------------------------------------------------- AMREP Corp. * 1,130 87,293 Avatar Holdings, Inc. * 3,864 276,044 Griffin Land & Nurseries, Inc. * 710 25,205 ILX Resorts, Inc. 1,900 17,670 J.W. Mays, Inc. * 2,600 55,900 Patriot Transportation Holding, Inc. * 673 60,308 Service Corp. International 212,145 2,516,040 Stratus Properties, Inc. * 460 15,465 The Intergroup Corp. * 330 6,575 United Capital Corp. * 720 24,559 Wellsford Real Properties, Inc. * 2,360 18,443 --------------- 3,103,502 REAL ESTATE INVESTMENT TRUSTS 6.7% - ----------------------------------------------------------------- American Campus Communities, Inc. 1,930 58,460 American First Apartment Investors, Inc. 410 8,319 Ashford Hospitality Trust 52,760 629,954 Associated Estates Realty Corp. 1,790 25,221 CBL & Associates Properties, Inc. 53,423 2,395,487 Cedar Shopping Centers, Inc. 24,350 394,470 Eagle Hospitality Properties Trust, Inc. 16,710 186,317 Extra Space Storage, Inc. 43,230 818,776 Franklin Street Properties Corp. 44,272 849,137 Gladstone Commercial Corp. 660 13,233 Highland Hospitality Corp. 35,361 629,426
NUMBER OF VALUE SECURITY SHARES ($) Home Properties, Inc. 4,280 226,027 Hospitality Properties Trust 19,330 904,644 HRPT Properties Trust 181,806 2,236,214 Income Opportunity Realty Investors * 590 3,540 Innkeepers USA Trust 16,207 263,850 iStar Financial, Inc. 57,487 2,692,116 Kite Realty Group Trust 16,000 319,200 LaSalle Hotel Properties 10,030 464,991 Lexington Realty Trust 44,546 941,257 LTC Properties, Inc. 9,840 254,954 Medical Properties Trust, Inc. 32,230 473,459 Mission West Properties, Inc. 10,440 150,962 Monmouth Capital Corp. 3,830 21,180 Monmouth Real Estate Investment Corp., Class A 18,189 156,789 National Health Investors, Inc. 776 24,320 National Retail Properties, Inc. 42,020 1,016,464 One Liberty Properties, Inc. 4,810 109,716 Ramco-Gershenson Properties Trust 8,490 303,178 Republic Property Trust 14,980 172,120 Roberts Realty Investors, Inc. * 1,000 7,900 Spirit Finance Corp. 88,843 1,323,761 Strategic Hotel & Resorts, Inc. 56,210 1,285,523 Sunstone Hotel Investors, Inc. 50,390 1,373,631 Supertel Hospitality, Inc. 11,680 89,118 Universal Health Realty Income Trust 80 2,860 Urstadt Biddle Properties, Inc., Class A 25,375 496,335 Winston Hotels, Inc. * 21,600 324,648 Winthrop Realty Trust 34,430 227,582 --------------- 21,875,139 RESTAURANTS, HOTELS & THEATERS 2.6% - ----------------------------------------------------------------- Analogic Corp. 4,300 270,384 Avalon Holdings Corp., Class A * 100 797 Back Yard Burgers, Inc. * 570 3,158 Benihana, Inc., Class A * 8,454 239,586 Bob Evans Farms, Inc. 17,743 655,604 Brinker International, Inc. 12,300 402,210 Burger King Holdings, Inc. 22,490 485,784 Canterbury Park Holding Corp. * 3,900 55,185 CBRL Group, Inc. 23,469 1,086,615 CEC Entertainment, Inc. * 8,900 369,706 Champps Entertainment, Inc. * 290 1,641 Churchill Downs, Inc. 370 16,794 Dover Motorsports, Inc. 4,700 24,675 Famous Dave's of America, Inc. * 110 1,988 Friendly Ice Cream Corp. * 5,910 87,882 Frisch's Restaurants, Inc. 4,500 168,750 Interstate Hotels & Resorts, Inc. * 30,000 189,300 J. Alexander's Corp. 1,290 14,255 Jack in the Box, Inc. * 1,950 134,803 Live Nation, Inc. * 56,800 1,253,008 Marcus Corp. 19,640 456,826 Max & Erma's Restaurants, Inc. * 2,300 20,700 McCormick & Schmick's Seafood Restaurants, Inc. * 12,200 327,082 Mexican Restaurants, Inc. * 2,543 24,387 Nathan's Famous, Inc. * 450 6,750
See financial notes. Laudus Funds Annual Report 121 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) O'Charley's, Inc. * 21,040 405,862 Red Lion Hotels Corp. * 19,400 241,336 Rubio's Restaurants, Inc. * 10 114 Silverleaf Resorts, Inc. * 6,500 30,160 Speedway Motorsports, Inc. 5,780 223,975 Star Buffet, Inc. 2,700 22,545 The Steak n Shake Co. * 26,000 436,020 Trump Entertainment Resorts, Inc. * 624 11,276 WMS Industries, Inc. * 18,031 707,536 --------------- 8,376,694 RETAIL 5.0% - ----------------------------------------------------------------- 1-800-FLOWERS.COM, Inc., Class A * 25,266 196,569 Arden Group, Inc., Class A 772 103,062 Asbury Automotive Group, Inc. 890 25,142 AutoNation, Inc. * 55,600 1,180,944 Big Lots, Inc. * 85,280 2,667,558 Cabela's, Inc. * 610 15,134 Cache, Inc. * 4,680 83,070 Cash America International, Inc. 10,280 421,480 Charlotte Russe Holding, Inc. * 10,795 311,652 Charming Shoppes, Inc. * 88,658 1,148,121 Collegiate Pacific, Inc. 9,370 73,086 Cost-U-Less, Inc. * 2,570 23,104 Deb Shops, Inc. 770 20,852 Dillard's, Inc., Class A 300 9,819 Dollar Tree Stores, Inc. * 1,249 47,762 EZCORP, Inc., Class A * 16,710 246,138 Finlay Enterprises, Inc. * 1,000 5,810 First Cash Financial Services, Inc. * 4,580 102,042 Gottschalks, Inc. * 6,970 99,462 GSI Commerce, Inc. * 9,809 221,585 Hastings Entertainment, Inc. * 3,280 20,008 Haverty Furniture Cos., Inc. 20,790 291,060 Insight Enterprises, Inc. * 8,860 159,303 Jennifer Convertibles, Inc. * 1,640 7,642 Kirkland's, Inc. * 16,368 81,349 Longs Drug Stores Corp. 8,550 441,522 Nordstrom, Inc. 170 9,000 OfficeMax, Inc. 48,840 2,575,822 PC Connection, Inc. * 515 7,365 PC Mall, Inc. * 520 5,184 Priceline.com, Inc. * 7,700 410,102 Restoration Hardware, Inc. * 30,471 199,890 REX Stores Corp. * 7,150 116,974 Ruddick Corp. 440 13,235 Rush Enterprises, Inc., Class A * 3,123 59,993 Rush Enterprises, Inc., Class B * 6,430 116,447 Shoe Carnival, Inc. * 6,420 213,786 Shoe Pavilion, Inc. * 8,630 53,506 Spartan Stores, Inc. 15,320 410,576 Sport Chalet, Inc., Class A * 5,940 64,687 Sport Chalet, Inc., Class B * 1,000 10,795 Systemax, Inc. * 5,352 100,243 The Bon-Ton Stores, Inc. 6,700 376,808 The Cato Corp., Class A 27,720 648,371 The Great Atlantic & Pacific Tea Co., Inc. * 18,870 626,107 The Men's Wearhouse, Inc. 34,200 1,609,110
NUMBER OF VALUE SECURITY SHARES ($) Trans World Entertainment Corp. * 31,520 179,034 Village Super Market, Inc., Class A 1,500 143,235 Weis Markets, Inc. 6,040 269,988 Zones, Inc. * 9,120 93,480 --------------- 16,317,014 SOAPS & COSMETICS 0.0% - ----------------------------------------------------------------- Parlux Fragrances, Inc. * 12,870 71,815 The Estee Lauder Cos., Inc., Class A 1,550 75,717 --------------- 147,532 SOFTWARE 6.7% - ----------------------------------------------------------------- American Software, Inc., Class A 7,000 56,350 Aspen Technology, Inc. * 47,283 614,679 Black Box Corp. 13,196 482,182 BMC Software, Inc. * 107,210 3,300,996 Cadence Design Systems, Inc. * 21,973 462,751 Captaris, Inc. * 12,620 73,070 CIBER, Inc. * 47,484 373,699 Cognizant Technology Solutions Corp., Class A * 17,591 1,552,758 Computer Task Group, Inc. * 7,655 34,524 CSP, Inc. * 1,220 11,261 Dynamics Research Corp. * 7,190 81,966 Edgewater Technology, Inc. * 9,580 80,855 Emdeon Corp. * 179,832 2,720,858 Goldleaf Financial Solutions, Inc. * 3,600 23,688 Harris Interactive, Inc. * 52,060 313,922 Inforte Corp. * 7,170 24,880 INX, Inc. * 140 1,427 Lawson Software, Inc. * 105,403 852,710 Lightbridge, Inc. * 21,531 378,300 MapInfo Corp. * 110 2,214 Mentor Graphics Corp. * 69,500 1,135,630 Moldflow Corp. * 9,900 148,797 Move, Inc. * 9,840 54,514 Ness Technologies, Inc. * 19,403 247,970 NetManage, Inc. * 70 368 NetScout Systems, Inc. * 21,070 190,683 PC-Tel, Inc. * 23,600 240,012 Perot Systems Corp., Class A * 7,360 131,523 Saba Software, Inc. * 6,050 39,597 SAVVIS, Inc. * 28,926 1,384,977 SPSS, Inc. * 17,074 616,371 Sybase, Inc. * 75,340 1,904,595 Synopsys, Inc. * 90,934 2,385,199 Taleo Corp., Class A * 14,053 232,999 TechTeam Global, Inc. * 4,670 58,375 THQ, Inc. * 32,334 1,105,499 TSR, Inc. 3,200 13,504 Tyler Technologies, Inc. * 902 11,455 Versant Corp. * 290 4,916 Vignette Corp. * 18,260 339,088 --------------- 21,689,162 TEXTILES & APPAREL 2.2% - ----------------------------------------------------------------- Culp, Inc. * 12,300 87,084 Cutter & Buck, Inc. 9,500 112,575 Decorator Industries, Inc. 40 280
See financial notes. 122 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) G-III Apparel Group Ltd. * 7,880 150,114 Interface, Inc., Class A 16,350 261,436 Jaclyn, Inc. * 460 5,189 LaCrosse Footwear, Inc. * 2,884 44,414 Liz Claiborne, Inc. 23,223 995,106 Perry Ellis International, Inc. * 9,631 308,096 Phillips-Van Heusen Corp. 47,510 2,793,588 Polo Ralph Lauren Corp. 2,310 203,626 R.G. Barry Corp. * 310 3,230 Skechers U.S.A., Inc., Class A * 14,870 499,186 Stride Rite Corp. 18,370 282,714 The Dixie Group, Inc. * 5,730 68,932 The Gymboree Corp. * 30,377 1,217,206 Weyco Group, Inc. 2,423 62,950 --------------- 7,095,726 WHOLESALE 2.5% - ----------------------------------------------------------------- Anixter International, Inc. * 100 6,594 Arrow Electronics, Inc. * 3,850 145,337 Avnet, Inc. * 99,567 3,598,351 Bell Microproducts, Inc. * 29,223 187,027 Brown Shoe Co., Inc. 16,185 679,770 Coast Distribution System, Inc. 1,700 13,175 Delta Apparel, Inc. 4,880 84,912 Educational Development Corp. 3,300 25,773 En Pointe Technologies, Inc. * 2,100 7,161 Huttig Building Products, Inc. * 20,400 123,420 IKON Office Solutions, Inc. 200 2,874 Industrial Distribution Group, Inc. * 3,810 47,587 Kaman Corp. 490 11,422 Keystone Automotive Industries, Inc. * 8,240 277,688 Lawson Products, Inc. 800 30,304 Man Sang Holdings, Inc. * 2,220 13,320 NACCO Industries, Inc., Class A 150 20,612 Nu Horizons Electronics Corp. * 18,005 189,593
NUMBER OF VALUE SECURITY SHARES ($) Nu Skin Enterprises, Inc., Class A 23,729 392,003 Park-Ohio Holdings Corp. * 2,677 49,524 Performance Food Group Co. * 6,521 201,303 Richardson Electronics Ltd. 18,081 168,877 TESSCO Technologies, Inc. * 1,245 33,852 Traffix, Inc. 565 3,130 W.W. Grainger, Inc. 23,600 1,822,864 --------------- 8,136,473 --------------- TOTAL COMMON STOCK (COST $247,794,675) 302,181,168 ---------------
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($) ($) SHORT-TERM INVESTMENT (A) 5.6% OF NET ASSETS REPURCHASE AGREEMENT 5.6% - ----------------------------------------------------------------- Custodian Trust Company, dated 03/30/07, due 4/02/07 at 5.10% with a maturity value of $18,122,658 (fully collateralized by U.S. Treasury Bond with a value of $18,610,050) 18,114,959 18,114,959 --------------- TOTAL SHORT-TERM INVESTMENT (COST $18,114,959) 18,114,959 - ----------------------------------------------------------------- END OF INVESTMENTS.
At 03/31/07 the tax basis cost of the fund's investments was $266,602,429 and the unrealized gains and losses were $57,848,904 and ($4,155,206), respectively, with a net unrealized appreciation of $53,693,698. * Non-income producing security. (a) All long positions are pledged as collateral for securities sold short. See financial notes. Laudus Funds Annual Report 123 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) SHORT SALES (93.5)% OF NET ASSETS AGRICULTURE, FOOD & BEVERAGE 0.6% - ----------------------------------------------------------------- Cagle's, Inc., Class A * 1,760 13,024 Chiquita Brands International, Inc. 37,700 528,554 Cuisine Solutions, Inc. * 1,900 13,718 Del Monte Foods Co. 1,620 18,598 Farmer Brothers Co. 7,400 167,980 McCormick & Co., Inc. 700 26,964 Pilgrim's Pride Corp., Class B 2,380 78,992 Sanderson Farms, Inc. 16,600 615,196 Tyson Foods, Inc., Class A 17,910 347,633 --------------- 1,810,659 AIRLINES 0.3% - ----------------------------------------------------------------- JetBlue Airways Corp. * 98,400 1,132,584 AUTOS 1.2% - ----------------------------------------------------------------- Accuride Corp. * 560 8,176 Commercial Vehicle Group, Inc. * 20,825 423,045 Gentex Corp. 120,300 1,954,875 Proliance International, Inc. * 13,000 49,140 Tenneco, Inc. * 38,956 991,820 Wabash National Corp. 27,530 424,512 --------------- 3,851,568 BANKS & CREDIT INSTITUTIONS 6.6% - ----------------------------------------------------------------- Accredited Home Lenders Holding Co. * 21,000 194,670 Astoria Financial Corp. 79,500 2,113,905 Capitol Federal Financial 16,876 638,082 Cash Systems, Inc. * 13,490 79,861 Centerline Holding Co. * 720 13,932 Citizens Banking Corp. 51,853 1,149,062 Commerce Bancorp, Inc. 35,450 1,183,321 Encore Capital Group, Inc. * 2,790 27,733 Flagstar Bancorp, Inc. 560 6,692 IndyMac Bancorp, Inc. 52,000 1,666,600 Investors Bancorp, Inc. * 500 7,220 Kearny Financial Corp. 16,156 232,323 Municipal Mortgage & Equity, L.L.C. 25,044 713,754 Nelnet, Inc., Class A 18,900 453,033 New York Community Bancorp, Inc. 170,460 2,998,391 Pacific Capital Bancorp 23,243 746,565 Popular, Inc. 145,200 2,404,512 Southern Community Financial Corp. 63 646 Sovereign Bancorp, Inc. 125,288 3,187,327 UCBH Holdings, Inc. 122 2,272 Valley National Bancorp 88,310 2,229,828 Wauwatosa Holdings, Inc. * 10,179 177,929 Webster Financial Corp. 23 1,104 Westamerica Bancorp 24,670 1,188,354 Yardville National Bancorp 4,804 174,433 --------------- 21,591,549
NUMBER OF VALUE SECURITY SHARES ($) BASIC MINERALS & METALS 1.9% - ----------------------------------------------------------------- American Superconductor Corp. * 11,200 150,864 Century Aluminum Co. * 9,680 453,799 Dynamic Materials Corp. 12,200 399,184 Lone Star Technologies, Inc. * 27,400 1,809,222 Meridian Gold, Inc. * 85,200 2,175,156 Olin Corp. 66,910 1,133,455 Titanium Metals Corp. * 721 25,876 --------------- 6,147,556 BIOTECHNOLOGY 4.1% - ----------------------------------------------------------------- Alexion Pharmaceuticals, Inc. * 32,198 1,392,242 Altus Pharmaceuticals, Inc. * 7,300 111,106 ARIAD Pharmaceuticals, Inc. * 42,200 189,478 ArQule, Inc. * 38,696 288,672 CV Therapeutics, Inc. * 40,000 314,800 Cypress Bioscience, Inc. * 29,387 223,341 CYTOGEN Corp. * 2,393 4,978 Dyax Corp. * 22,556 92,931 Encysive Pharmaceuticals, Inc. * 54,364 147,326 Geron Corp. * 43,693 305,851 Human Genome Sciences, Inc. * 117,350 1,246,257 Idenix Pharmaceuticals, Inc. * 100 730 ImClone Systems, Inc. * 52,763 2,151,148 Keryx Biopharmaceuticals, Inc. * 36,770 386,820 Kosan Biosciences, Inc. * 8,170 44,935 Medarex, Inc. * 106,961 1,384,075 Myriad Genetics, Inc. * 34,200 1,178,532 Neurocrine Biosciences, Inc. * 35,400 442,500 Onyx Pharmaceuticals, Inc. * 27,600 685,584 Progenics Pharmaceuticals, Inc. * 9,544 226,002 Seattle Genetics, Inc. * 17,000 139,230 Vertex Pharmaceuticals, Inc. * 79,698 2,234,732 --------------- 13,191,270 CELLULAR & WIRELESS 1.0% - ----------------------------------------------------------------- Centennial Communications Corp. * 23,600 194,228 Dobson Communications Corp., Class A * 143,254 1,230,552 Leap Wireless International, Inc. * 27,168 1,792,544 Rural Cellular Corp. * 14,600 174,616 --------------- 3,391,940 CHEMICALS & RUBBER 0.9% - ----------------------------------------------------------------- American Vanguard Corp. 17,600 300,784 BioSphere Medical, Inc. * 19,597 144,234 Calgon Carbon Corp. * 30,500 253,455 Chemtura Corp. 400 4,372 Georgia Gulf Corp. 33,400 541,414 Hexcel Corp. * 84,210 1,671,569 Valhi, Inc. 1,510 19,932 Westlake Chemical Corp. 3,790 102,898 --------------- 3,038,658 COMMERCIAL AIRCRAFT & COMPONENTS 0.0% - ----------------------------------------------------------------- CPI Aerostructures, Inc. * 700 4,802 COMMUNICATIONS UTILITIES 1.2% - ----------------------------------------------------------------- Crown Media Holdings, Inc., Class A * 4,799 25,579 EarthLink, Inc. * 127,500 937,125
See financial notes. 124 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) EchoStar Communications Corp., Class A * 14,735 639,941 iPCS, Inc. * 8,800 428,610 j2 Global Communications, Inc. * 7,652 212,113 SBA Communications Corp., Class A * 17,960 530,718 Sohu.com, Inc. * 20,100 430,743 Virgin Media, Inc. 20,897 527,649 Windstream Corp. 8,540 125,453 --------------- 3,857,931 CONSTRUCTION & HOMEBUILDING 2.4% - ----------------------------------------------------------------- California Coastal Communities, Inc. * 1,476 29,948 Centex Corp. 49,634 2,073,709 KB Home 53,500 2,282,845 M.D.C. Holdings, Inc. 31,810 1,529,107 Pulte Homes, Inc. 28,888 764,376 Sterling Construction Co., Inc. * 1,500 28,590 The Ryland Group, Inc. 14,970 631,584 Toll Brothers, Inc. * 20,600 564,028 --------------- 7,904,187 CONSTRUCTION MATERIALS 0.3% - ----------------------------------------------------------------- Headwaters, Inc. * 40,600 887,110 Nanophase Technologies Corp. * 7,600 44,612 --------------- 931,722 CONSUMER DURABLES 0.9% - ----------------------------------------------------------------- Brunswick Corp. 78,000 2,484,300 Fleetwood Enterprises, Inc. * 62,700 495,957 Marine Products Corp. 3,820 36,557 --------------- 3,016,814 DRUGS & PHARMACEUTICALS 2.3% - ----------------------------------------------------------------- Adams Respiratory Therapeutics, Inc. * 23,800 800,394 Adolor Corp. * 23,500 205,625 Alkermes, Inc. * 9,060 139,886 Amylin Pharmaceuticals, Inc. * 49,000 1,830,640 Atherogenics, Inc. * 7,800 21,918 Bioenvision, Inc. * 29,700 121,473 Cytokinetics, Inc. * 42 292 Dendreon Corp. (b) * 19,600 253,428 DepoMed, Inc. * 100 357 Enzon Pharmaceuticals, Inc. * 41,310 336,677 Indevus Pharmaceuticals, Inc. * 1,800 12,726 Inspire Pharmaceuticals, Inc. * 16,700 95,190 Isis Pharmaceuticals, Inc. * 27,176 251,922 Martek Biosciences Corp. * 8,370 172,589 Metabasis Therapeutics, Inc. * 19,960 146,706 MGI Pharma, Inc. * 1,513 33,997 Nektar Therapeutics * 4,618 60,311 Neurogen Corp. * 10,560 68,640 NitroMed, Inc. * 5,700 17,784 NPS Pharmaceuticals, Inc. * 25,300 85,767 Panacos Pharmaceuticals, Inc. * 2,000 9,260 PDL BioPharma, Inc. * 2,200 47,740 Penwest Pharmaceuticals Co. * 16,735 168,689 Pharmion Corp. * 16,071 422,507 Repros Therapeutics, Inc. * 8,500 81,023
NUMBER OF VALUE SECURITY SHARES ($) Rigel Pharmaceuticals, Inc. * 19,899 216,103 ViroPharma, Inc. * 61,321 879,956 Xenoport, Inc. * 18,059 503,124 ZymoGenetics, Inc. * 31,927 496,784 --------------- 7,481,508 ELECTRIC UTILITIES 0.3% - ----------------------------------------------------------------- Dynegy, Inc., Class A * 110,620 1,024,341 Environmental Power Corp. * 9,380 65,660 --------------- 1,090,001 FINANCIAL INVESTMENTS 0.7% - ----------------------------------------------------------------- InterDigital Communications Corp. * 45,455 1,439,560 Marlin Business Services, Inc. * 292 6,389 Mitcham Industries, Inc. * 9,595 140,567 Williams Scotsman International, Inc. * 29,100 572,106 Winmark Corp. * 116 2,320 --------------- 2,160,942 FOREST PRODUCTS & PAPER 2.1% - ----------------------------------------------------------------- Deltic Timber Corp. 9,190 440,752 Louisiana-Pacific Corp. 94,620 1,898,077 Pope & Talbot, Inc. * 4,670 31,523 Rayonier, Inc. 58,290 2,506,470 Smurfit-Stone Container Corp. * 164,428 1,851,459 --------------- 6,728,281 FURNITURE & HOUSEHOLD ITEMS 1.5% - ----------------------------------------------------------------- Bally Technologies, Inc. * 46,400 1,094,112 Fiberstars, Inc. * 12,600 71,190 Kinetic Concepts, Inc. * 20,933 1,060,047 Newell Rubbermaid, Inc. 68,214 2,120,773 Omnova Solutions, Inc. * 9,230 50,570 Progressive Gaming International Corp. * 30,400 136,800 Russ Berrie and Co., Inc. * 10,730 151,293 Sealy Corp. 3,900 68,172 --------------- 4,752,957 GAS & OTHER PUBLIC UTILITIES 0.1% - ----------------------------------------------------------------- American Ecology Corp. 10,102 194,060 Cadiz, Inc. * 410 10,509 TRC Cos., Inc. * 1,480 14,933 --------------- 219,502 GOVERNMENT AIRCRAFT & DEFENSE 0.0% - ----------------------------------------------------------------- Innovative Solutions & Support, Inc. * 2,846 72,061 HEALTH CARE & HOSPITAL 0.9% - ----------------------------------------------------------------- Advocat, Inc. * 5,060 64,193 Array BioPharma, Inc. * 38,000 482,600 Enzo Biochem, Inc. * 23,600 355,888 Health Management Associates, Inc., Class A 67,142 729,833 HealthTronics, Inc. * 10,500 56,213 Nighthawk Radiology Holdings, Inc. * 7,000 127,330
See financial notes. Laudus Funds Annual Report 125 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) Psychiatric Solutions, Inc. * 15,776 635,931 Tenet Healthcare Corp. * 81,700 525,331 VistaCare, Inc., Class A * 7,500 65,250 --------------- 3,042,569 INFORMATION & SERVICES 5.3% - ----------------------------------------------------------------- Arbinet-thexchange, Inc. * 2,900 18,328 Arena Pharmaceuticals, Inc. * 58,700 637,482 Asset Acceptance Capital Corp. * 2,360 36,509 BearingPoint, Inc. * 173,850 1,331,691 Career Education Corp. * 86,600 2,641,300 ChoicePoint, Inc. * 50,300 1,882,729 Corinthian Colleges, Inc. * 60,548 832,535 deCODE genetics, Inc. * 43,200 157,680 DynCorp International, Inc., Class A * 1,310 19,768 Emeritus Corp. * 5,160 174,150 Euronet Worldwide, Inc. * 24,601 660,783 Evergreen Energy, Inc. * 50,860 334,150 Exelixis, Inc. * 83,970 834,662 Global Cash Access Holdings, Inc. * 39,130 653,080 Iron Mountain, Inc. * 37,695 984,970 Jupitermedia Corp. * 19,300 127,766 Maxygen, Inc. * 27,910 311,197 Nuvelo, Inc. * 46,200 170,016 PeopleSupport, Inc. * 4,858 55,624 Rentech, Inc. * 77,700 243,978 Senomyx, Inc. * 18,750 232,125 Strayer Education, Inc. 10,732 1,341,500 Syntroleum Corp. * 11,500 35,880 The Advisory Board Co. * 16,900 855,478 The Corporate Executive Board Co. 27,500 2,088,900 Universal Technical Institute, Inc. * 21,300 491,604 UTI Worldwide, Inc. 6,400 157,312 --------------- 17,311,197 INSTRUMENTS 4.1% - ----------------------------------------------------------------- ATS Medical, Inc. * 500 1,030 Bausch & Lomb, Inc. 38,720 1,980,915 Caliper Life Sciences, Inc. * 2,700 15,255 Cantel Medical Corp. * 10,490 161,441 CAS Medical Systems, Inc. * 900 6,300 Cepheid, Inc. * 51,709 614,303 Clinical Data, Inc. * 81 1,681 Cyberonics, Inc. * 17,700 332,406 Daxor Corp. * 200 2,650 Dexcom, Inc. * 16,849 132,433 Endologix, Inc. * 28,030 110,158 I-Flow Corp. * 22,151 326,506 Intuitive Surgical, Inc. * 24,700 3,002,779 LoJack Corp. * 19,900 377,702 Luminex Corp. * 19,070 261,640 Measurement Specialties, Inc. * 13,493 304,402 Mentor Corp. 33,200 1,527,200 Millipore Corp. * 38,400 2,782,848 NMT Medical, Inc. * 8,260 112,336 OraSure Technologies, Inc. * 47,500 349,125 Photon Dynamics, Inc. * 18,500 233,285 RAE Systems, Inc. * 9,600 27,552 Regeneration Technologies, Inc. * 30,559 221,553
NUMBER OF VALUE SECURITY SHARES ($) STAAR Surgical Co. * 8,486 46,758 Synergetics USA, Inc. * 7,510 26,886 ThermoGenesis Corp. * 28,700 104,468 Varian Medical Systems, Inc. * 2,700 128,763 Vnus Medical Technologies * 15,800 158,316 --------------- 13,350,691 INSURANCE 2.3% - ----------------------------------------------------------------- Brown & Brown, Inc. 91,300 2,469,665 First Acceptance Corp. * 17,940 187,832 United Fire & Casualty Co. 117 4,110 White Mountains Insurance Group Ltd. 3,811 2,158,932 Willis Group Holdings Ltd. 64,990 2,572,304 --------------- 7,392,843 IT HARDWARE 7.2% - ----------------------------------------------------------------- ADTRAN, Inc. 53,875 1,311,856 Advanced Micro Devices, Inc. * 95,020 1,240,961 Altera Corp. * 142,166 2,841,898 Bookham, Inc. * 25,300 57,431 California Micro Devices Corp. * 210 983 Carrier Access Corp. * 14,785 75,551 Comarco, Inc. * 7,730 70,343 DDi Corp. * 19,068 130,425 EFJ, Inc. * 17,500 93,450 Energy Conversion Devices, Inc. * 30,600 1,069,164 Foundry Networks, Inc. * 110,656 1,501,602 Ikanos Communications, Inc. * 20,600 160,062 Intervoice, Inc. * 38,200 253,648 Itron, Inc. * 22,490 1,462,750 IXYS Corp. * 27,504 281,366 KLA-Tencor Corp. 30,700 1,636,924 Kulicke and Soffa Industries, Inc. * 52,049 481,453 Leadis Technology, Inc. * 13,400 53,600 Metalink Ltd. * 2,600 17,524 Microchip Technology, Inc. 49,091 1,744,203 Nam Tai Electronics, Inc. 22,494 291,297 Nanometrics, Inc. * 17,985 120,500 National Semiconductor Corp. 6,790 163,911 Netlogic Microsystems, Inc. * 100 2,662 Novatel Wireless, Inc. * 2,813 45,121 O2Micro International Ltd. -- ADR * 26,910 212,589 OmniVision Technologies, Inc. * 33,300 431,568 Plexus Corp. * 44,600 764,890 Power-One, Inc. * 68,360 391,019 Powerwave Technologies, Inc. * 80,000 455,200 Rackable Systems, Inc. * 26,829 455,288 Rambus, Inc. * 81,915 1,740,694 RELM Wireless Corp. * 360 1,440 Sigmatel, Inc. * 31,300 98,282 Silicon Laboratories, Inc. * 10,600 317,152 Sparton Corp. * 1,000 8,160 Staktek Holdings, Inc. * 16,070 52,228 Synaptics, Inc. * 22,780 582,712 Teradyne, Inc. * 156,400 2,586,856 Universal Display Corp. * 4,800 72,432 Virage Logic Corp. * 10,521 76,488 Vyyo, Inc. * 6,500 53,365 Xilinx, Inc. 1,940 49,916 --------------- 23,458,964
See financial notes. 126 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) LAND & WATER TRANSPORTATION 2.2% - ----------------------------------------------------------------- Arkansas Best Corp. 1,780 63,279 Con-way, Inc. 40,800 2,033,472 Forward Air Corp. 12,800 420,864 Genesee & Wyoming, Inc., Class A * 34,600 920,706 Heartland Express, Inc. 43,995 698,641 Landstar System, Inc. 1,617 74,123 Marten Transport Ltd. * 1,500 23,820 Quality Distribution, Inc. * 9,332 80,722 Rural/Metro Corp. * 23,200 175,160 Sirva, Inc. * 23,300 83,181 The Greenbrier Cos., Inc. 11,380 303,846 Trailer Bridge, Inc. * 12,900 113,391 USA Truck, Inc. * 6,283 97,638 YRC Worldwide, Inc. * 51,402 2,067,388 --------------- 7,156,231 MAINFRAME & MINICOMPUTERS 0.5% - ----------------------------------------------------------------- Palm, Inc. * 88,500 1,604,505 METAL PRODUCTS & MACHINERY 4.4% - ----------------------------------------------------------------- Actuant Corp., Class A 26,600 1,351,546 Blount International, Inc. * 35,340 439,983 Briggs & Stratton Corp. 44,950 1,386,707 Bucyrus International, Inc., Class A 206 10,609 Columbus McKinnon Corp. * 17,300 387,347 Drew Industries, Inc. * 12,900 369,972 Environmental Tectonics Corp. * 5,200 19,968 Flow International Corp. * 6,196 66,545 Freightcar America, Inc. 11,200 539,504 Joy Global, Inc. 42,642 1,829,342 Omega Flex, Inc. * 1,810 40,852 Pentair, Inc. 72,900 2,271,564 Plug Power, Inc. * 36,700 115,972 The Black & Decker Corp. 33,800 2,758,756 Ultralife Batteries, Inc. * 12,800 138,240 Zebra Technologies Corp., Class A * 64,000 2,471,040 --------------- 14,197,947 MISCELLANEOUS FINANCE 2.4% - ----------------------------------------------------------------- Calamos Asset Management, Inc., Class A 20,963 467,894 E*TRADE Financial Corp. * 92,728 1,967,688 GAMCO Investors, Inc., Class A 90 3,900 Jefferies Group, Inc. 88,790 2,570,471 Nasdaq Stock Market, Inc. * 70,906 2,085,345 optionsXpress Holdings, Inc. 1,865 43,902 Sanders Morris Harris Group, Inc. 13,300 141,645 Stifel Financial Corp. * 70 3,101 Thomas Weisel Partners Group, Inc. * 7,400 140,748 W.P. Stewart & Co., Ltd. 45,400 457,178 --------------- 7,881,872 OIL & COAL RESOURCES 2.9% - ----------------------------------------------------------------- Atlas America, Inc. * 7,595 429,042 Carrizo Oil & Gas, Inc. * 3,092 108,096 Clayton Williams Energy, Inc. * 5,627 159,638 CREDO Petroleum Corp. * 160 2,181
NUMBER OF VALUE SECURITY SHARES ($) Delta Petroleum Corp. * 48,000 1,102,080 Double Eagle Petroleum Co. * 3,900 70,239 Edge Petroleum Corp. * 18,600 232,872 Encore Acquisition Co. * 30,521 738,303 Foundation Coal Holdings, Inc. 8,040 276,094 FX Energy, Inc. * 35,300 267,574 Infinity Energy Resources, Inc. * 350 1,186 Massey Energy Co. 17,300 415,027 Pogo Producing Co. 51,600 2,481,960 Quicksilver Resources, Inc. * 44,300 1,761,811 Southwestern Energy Co. * 19,700 807,306 Warren Resources, Inc. * 42,646 555,677 --------------- 9,409,086 OIL DISTRIBUTION 1.3% - ----------------------------------------------------------------- Alon USA Energy, Inc. 1,855 67,151 Cheniere Energy, Inc. * 42,400 1,320,760 Kinder Morgan Management, LLC * 55,218 2,829,370 --------------- 4,217,281 OIL DRILLING & SERVICES 0.8% - ----------------------------------------------------------------- Parker Drilling Co. * 2,130 20,001 Patterson-UTI Energy, Inc. 106,587 2,391,812 TGC Industries, Inc. * 17,100 147,231 --------------- 2,559,044 PHOTO-OPTICAL, MICROS & OFFICE MACHINERY 0.6% - ----------------------------------------------------------------- Ampex Corp., Class A * 580 11,467 Avid Technology, Inc. * 23,600 823,168 Dot Hill Systems Corp. * 6,120 22,338 Echelon Corp. * 24,800 261,392 FalconStor Software, Inc. * 139 1,448 Immersion Corp. * 25,550 230,461 Intermec, Inc. * 4,910 109,689 Lexmark International, Inc., Class A * 5,770 337,314 Mobility Electronics, Inc. * 20,500 63,755 X-Rite, Inc. 7,890 102,176 --------------- 1,963,208 PUBLISHING, BROADCASTING & CINEMA 3.0% - ----------------------------------------------------------------- Acco Brands Corp. * 6,640 159,958 Central European Media Enterprises Ltd., Class A * 339 30,001 CKX, Inc. * 20,900 231,990 DreamWorks Animation SKG, Inc., Class A * 10,232 312,895 Nexstar Broadcasting Group, Inc., Class A * 10,262 98,618 R.H. Donnelley Corp. * 40,050 2,839,144 Sun-Times Media Group, Inc., Class A 41,418 205,433 The Interpublic Group of Cos., Inc. * 189,280 2,330,037 The New York Times Co., Class A 61,000 1,434,110 XM Satellite Radio Holdings, Inc., Class A * 156,034 2,015,959 Young Broadcasting, Inc., Class A * 3,146 12,710 --------------- 9,670,855
See financial notes. Laudus Funds Annual Report 127 LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND PORTFOLIO HOLDINGS continued
NUMBER OF VALUE SECURITY SHARES ($) REAL ESTATE DEVELOPMENT 0.5% - ----------------------------------------------------------------- Consolidated-Tomoka Land Co. 5,500 414,975 Forest City Enterprises, Inc., Class A 11,780 779,600 Levitt Corp., Class A 16,800 156,408 Tejon Ranch Co. * 4,700 222,310 The St. Joe Co. 1,000 52,310 --------------- 1,625,603 REAL ESTATE INVESTMENT TRUSTS 8.2% - ----------------------------------------------------------------- Alexandria Real Estate Equities, Inc. 8,480 851,137 AMB Property Corp. 14,200 834,818 Apartment Investment & Management Co., Class A 27,949 1,612,378 BRE Properties, Class A 39,709 2,507,623 Camden Property Trust 36,240 2,548,034 Developers Diversified Realty Corp. 48,850 3,072,665 EastGroup Properties, Inc. 1,960 100,019 Essex Property Trust, Inc. 86 11,135 FelCor Lodging Trust, Inc. 8,230 213,733 First Industrial Realty Trust, Inc. 13,443 608,968 General Growth Properties, Inc. 840 54,239 Glimcher Realty Trust 32,440 876,529 Kilroy Realty Corp. 25,580 1,886,525 Plum Creek Timber Co., Inc. 74,800 2,948,616 Regency Centers Corp. 32,000 2,673,600 UDR, Inc. 86,114 2,636,811 Ventas, Inc. 51,600 2,173,908 Washington Real Estate Investment Trust 31,100 1,163,762 --------------- 26,774,500 RESTAURANTS, HOTELS & THEATERS 3.1% - ----------------------------------------------------------------- AMERCO * 9,141 639,779 Applebee's International, Inc. 94 2,329 Boyd Gaming Corp. 17,230 820,837 Buca, Inc. * 12,779 70,284 Isle of Capri Casinos, Inc. * 15,880 406,846 Magna Entertainment Corp., Class A * 15,200 55,328 MoneyGram International, Inc. 74,095 2,056,877 Nevada Gold & Casinos, Inc. * 11,200 22,512 P.F. Chang's China Bistro, Inc. * 15,300 640,764 Peet's Coffee & Tea, Inc. * 8,570 236,703 Red Robin Gourmet Burgers, Inc. * 10,556 409,784 Regal Entertainment Group, Class A 60,450 1,201,142 Ruth's Chris Steak House, Inc. * 5,900 120,124 Scientific Games, Corp., Class A * 63,200 2,074,856 Six Flags, Inc. * 45,170 271,472 Texas Roadhouse, Inc., Class A * 13,918 198,331 The Cheesecake Factory, Inc. * 20,381 543,154 Triarc Cos., Inc., Class B 12,140 208,687 Westwood One, Inc. 8,630 59,288 --------------- 10,039,097 RETAIL 5.0% - ----------------------------------------------------------------- 99 Cents Only Stores * 37,610 553,995 Advance Auto Parts, Inc. 200 7,710 Amazon.com, Inc. * 69,000 2,745,510
NUMBER OF VALUE SECURITY SHARES ($) Borders Group, Inc. 56,400 1,151,688 Celebrate Express, Inc. * 5,900 52,333 Chico's FAS, Inc. * 12,800 312,704 Design Within Reach, Inc. * 5,000 28,700 Dollar General Corp. 27,000 571,050 Guitar Center, Inc. * 7,400 333,888 MarineMax, Inc. * 800 18,532 New York & Co., Inc. * 8,800 138,952 Pacific Sunwear of California, Inc. * 65,200 1,358,116 PetMed Express, Inc. * 18,600 220,410 Pier 1 Imports, Inc. 84,600 584,586 The Finish Line, Inc., Class A 38,400 483,840 The Pantry, Inc. * 21,700 981,274 The Pep Boys-Manny, Moe & Jack 51,800 988,862 Tiffany & Co. 48,621 2,211,283 Tractor Supply Co. * 9,500 489,250 United Retail Group, Inc. * 14,100 169,482 Urban Outfitters, Inc. * 91,100 2,415,061 Whole Foods Market, Inc. 5,974 267,934 --------------- 16,085,160 SOFTWARE 7.0% - ----------------------------------------------------------------- Accelrys, Inc. * 1,710 10,910 Activision, Inc. * 161,640 3,061,462 Affiliated Computer Services, Inc., Class A * 2,600 153,088 Aptimus, Inc. * 5,800 19,720 Astea International, Inc. * 1,500 8,370 Autodesk, Inc. * 65,305 2,455,468 Blackboard, Inc. * 754 25,357 Citrix Systems, Inc. * 180 5,765 Cogent, Inc. * 34,380 462,411 Computer Programs and Systems, Inc. 9,100 244,062 Concur Technologies, Inc. * 31,700 553,482 Emageon, Inc. * 14,000 154,000 eResearch Technology, Inc. * 33,400 262,524 Global Payments, Inc. 8,400 286,104 Internet Capital Group, Inc. * 3,640 38,948 Kronos, Inc. * 28,080 1,502,280 Mercury Computer Systems, Inc. * 17,300 239,951 NAVTEQ Corp. * 74,600 2,573,700 Net 1 UEPS Technologies, Inc. * 45,179 1,124,053 Online Resources Corp. * 2,467 28,296 Opsware, Inc. * 3,300 23,925 PlanetOut, Inc. * 14,500 49,300 Q-Med, Inc. * 15,286 67,717 Red Hat, Inc. * 6,020 138,039 RightNow Technologies, Inc. * 15,390 252,088 Salesforce.com, Inc. * 30,230 1,294,449 SM&A * 1,329 9,436 SRA International, Inc., Class A * 24,500 596,820 Streamline Health Solutions * 10,100 42,622 SupportSoft, Inc. * 12,600 71,064 Take-Two Interactive Software, Inc. * 61,500 1,238,610 The BISYS Group, Inc. * 105,761 1,212,021 Transaction Systems Architects, Inc. * 36,400 1,178,996 Unisys Corp. * 273 2,301 VeriSign, Inc. * 115,907 2,911,584
See financial notes. 128 Laudus Funds Annual Report LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND
NUMBER OF VALUE SECURITY SHARES ($) Visicu, Inc. * 7,800 60,840 Websense, Inc. * 9,510 218,635 WebSideStory, Inc. * 17,800 230,510 --------------- 22,808,908 TEXTILES & APPAREL 1.1% - ----------------------------------------------------------------- Ashworth, Inc. * 14,494 109,720 K-Swiss, Inc., Class A 24,100 651,182 Phoenix Footwear Group, Inc. * 1,780 8,099 The Timberland Co., Class A * 47,800 1,244,234 Under Armour, Inc. * 19,400 995,220 Volcom, Inc. * 11,756 403,936 --------------- 3,412,391 WHOLESALE 2.3% - ----------------------------------------------------------------- BlueLinx Holdings, Inc. 10,800 113,312 Brightpoint, Inc. * 49,100 561,704 Central European Distribution Corp. * 28,700 835,457
NUMBER OF VALUE SECURITY SHARES ($) H&E Equipment Services, Inc. * 12,000 258,000 Lazare Kaplan International, Inc. * 8,740 70,444 Nash Finch Co. 12 413 Owens & Minor, Inc. 990 36,363 Patterson Cos., Inc. * 71,100 2,523,339 UAP Holding Corp. 33,679 870,602 WESCO International, Inc. * 36,360 2,282,681 --------------- 7,552,315 --------------- TOTAL SHORT SALES (PROCEEDS $305,578,183) 303,890,759 - ----------------------------------------------------------------- END OF SHORT SALE POSITIONS.
* Non-income producing security. (b) Fair-valued by Management. ADR -- American Depositary Receipt See financial notes. Laudus Funds Annual Report 129 Financial Statements Statement of Assets and Liabilities as of 3/31/07
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. LARGE U.S. LARGE U.S. LARGE CAPITALIZATION CAPITALIZATION CAPITALIZATION FUND GROWTH FUND VALUE FUND ---------------- ---------------- ---------------- ASSETS: Total investments, at cost(1)............................... $ 92,244,139 $69,070,731 $5,574,417 ============ =========== ========== Investments, at value(1).................................... $104,326,475 $77,114,283 $6,576,131 Repurchase agreements, at amortized cost.................... 40,000 -- -- ------------ ----------- ---------- Total Investments........................................ 104,366,475 77,114,283 6,576,131 ------------ ----------- ---------- Deposits with broker and custodian bank for securities sold short....................................................... -- -- -- Collateral invested for securities on loan.................. -- 6,243,025 -- Cash........................................................ 3,767 -- -- Foreign currency, at value(2)............................... -- -- -- Unrealized gain on foreign currency contracts............... -- -- -- Dividends and interest receivable........................... 91,651 68,376 8,973 Receivable for fund shares sold............................. 68,267 86,600 1,989 Receivable for securities sold short........................ -- -- -- Receivable for investments sold............................. 1,605,088 2,486,146 1,629,254 Reclaims receivable......................................... -- -- -- Receivable from Adviser..................................... -- -- 9,423 Prepaid expenses............................................ 5,509 3,271 418 ------------ ----------- ---------- Total Assets............................................. 106,140,757 86,001,701 8,226,188 ------------ ----------- ---------- LIABILITIES: Securities sold short, proceeds............................. $ -- $ -- $ -- ============ =========== ========== Securities sold short....................................... -- -- -- Unrealized loss on foreign currency contracts............... -- -- -- Payable to custodian........................................ -- 1,229,310 1,557,904 Payable for fund shares redeemed............................ 21,733 35,750 -- Payable for cover securities sold short..................... -- -- -- Payable for investments purchased........................... 999,755 678,439 48,437 Collateral held for securities on loan...................... -- 6,243,025 -- Accrued expenses and other liabilities: Trustees' retirement plan.................................. 4,728 1,237 157 Dividends payable on securities sold short................. -- -- -- Adviser fees............................................... 74,236 48,880 -- Transfer agent fees........................................ 1,510 1,305 1,277 Distribution and shareholder service fees.................. 2,982 560 108 Trustees' fees............................................. 810 439 570 Administration and fund accounting fee..................... 4,731 3,624 3,091 Other accrued expenses..................................... 35,725 36,274 15,895 ------------ ----------- ---------- Total Liabilities........................................ 1,146,210 8,278,843 1,627,439 ------------ ----------- ---------- NET ASSETS.................................................. $104,994,547 $77,722,858 $6,598,749 ============ =========== ========== NET ASSETS CONSIST OF: Capital..................................................... $ 86,887,795 $71,710,252 $5,056,253 Undistributed net investment income/(loss).................. 163,419 61,427 20,127 Accumulated net realized gains/(losses) on investments...... 5,820,997 (2,092,373) 520,655 Net unrealized appreciation/(depreciation) on investments... 12,122,336 8,043,552 1,001,714 ------------ ----------- ---------- NET ASSETS.................................................. $104,994,547 $77,722,858 $6,598,749 ============ =========== ========== INSTITUTIONAL SHARES: Net Assets.................................................. $ 94,921,017 $75,481,115 $6,058,297 Shares Outstanding.......................................... 7,187,870 7,729,953 475,434 Net Asset Value, Offering Price and Redemption Price per Share....................................................... $ 13.21 $ 9.76 $ 12.74 ============ =========== ========== ADVISER SHARES: Net Assets.................................................. $ -- $ -- $ -- Shares Outstanding.......................................... -- -- -- Net Asset Value, Offering Price and Redemption Price per Share....................................................... $ -- $ -- $ -- ============ =========== ========== INVESTOR SHARES: Net Assets.................................................. $ 10,073,530 $ 2,241,743 $ 540,452 Shares Outstanding.......................................... 762,330 228,090 42,557 Net Asset Value, Offering Price and Redemption Price per Share....................................................... $ 13.21 $ 9.83 $ 12.70 ============ =========== ==========
(1) Includes securities on loan for Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund and Laudus Rosenberg International Small Capitalization Fund of $6,102,606, $70,971,484, $88,385,432 and $139,234,977 respectively. (2) Foreign currency at cost for Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/Short Equity Fund was $1,110,333, $1,137,755, $13,156,595, and $5,030,634, respectively. See the accompanying notes to the financial statements. 130 Laudus Funds Annual Report Financial Statements--Statement of Assets and Liabilities continued
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG INTERNATIONAL U.S. LARGE/MID LAUDUS ROSENBERG U.S. SMALL LAUDUS ROSENBERG LAUDUS ROSENBERG SMALL CAPITALIZATION U.S. DISCOVERY CAPITALIZATION INTERNATIONAL INTERNATIONAL CAPITALIZATION LONG/SHORT FUND FUND EQUITY FUND DISCOVERY FUND FUND EQUITY FUND ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 768,555,449 $ 768,397,335 $107,410,263 $61,530,505 $1,563,357,595 $16,586,992 ============== ============== ============ =========== ============== =========== $ 928,439,355 $1,010,613,511 $127,031,334 $68,779,730 $1,873,438,314 $18,495,591 7,521,000 501,000 -- 983,000 33,108,000 692,469 -------------- -------------- ------------ ----------- -------------- ----------- 935,960,355 1,011,114,511 127,031,334 69,762,730 1,906,546,314 19,188,060 -------------- -------------- ------------ ----------- -------------- ----------- -- -- -- -- -- 18,463,415 72,805,635 90,803,224 -- -- 146,492,602 -- 1,156,595 946 -- 3,665 343 -- -- -- 1,112,978 1,139,637 13,214,467 -- -- -- -- -- -- -- 813,622 1,049,340 579,658 239,979 6,018,382 52,932 1,080,632 1,755,383 351,829 118,010 4,098,902 127,073 -- -- -- -- -- -- 7,649,034 16,062,374 6,414,290 864,631 20,628,120 659,257 -- -- 22,810 4,432 193,294 -- -- -- -- -- -- -- 50,946 62,319 5,873 2,195 86,703 1,508 -------------- -------------- ------------ ----------- -------------- ----------- 1,019,516,819 1,120,848,097 135,518,772 72,135,279 2,097,279,127 38,492,245 -------------- -------------- ------------ ----------- -------------- ----------- $ -- $ -- $ -- $ -- $ -- $18,328,050 ============== ============== ============ =========== ============== =========== -- -- -- -- -- $18,323,387 -- -- 2,517 -- -- -- -- -- 5,057,050 -- -- -- 340,033 947,939 989 37,837 1,482,592 14,812 -- -- -- -- -- -- 10,179,892 9,798,597 464,793 1,289,285 16,039,517 753,103 72,805,635 90,803,224 -- -- 146,492,602 -- 38,727 117,362 3,214 395 69,896 2,317 -- -- -- -- -- 23,079 710,939 806,596 125,947 36,071 1,515,097 10,387 6,129 6,541 1,469 1,342 15,751 1,851 85,356 162,926 18,368 10,758 308,775 1,499 1,034 1,305 623 579 1,180 599 7,009 7,483 6,309 5,939 12,926 3,218 112,156 166,483 28,439 8,475 349,123 34,735 -------------- -------------- ------------ ----------- -------------- ----------- 84,286,910 102,818,456 5,709,718 1,390,681 166,287,459 19,168,987 -------------- -------------- ------------ ----------- -------------- ----------- $ 935,229,909 $1,018,029,641 $129,809,054 $70,744,598 $1,930,991,668 $19,323,258 ============== ============== ============ =========== ============== =========== $ 749,201,862 $ 720,292,467 $105,155,093 $59,702,610 $1,473,923,391 $18,431,312 (24,032) (57,016) 327,367 245,660 9,402,286 153,264 18,647,173 55,077,014 4,699,984 2,560,867 104,396,692 (1,867,049) 167,404,906 242,717,176 19,626,610 8,235,461 343,269,299 2,605,731 -------------- -------------- ------------ ----------- -------------- ----------- $ 935,229,909 $1,018,029,641 $129,809,054 $70,744,598 $1,930,991,668 $19,323,258 ============== ============== ============ =========== ============== =========== $ 718,185,259 $ 699,920,974 $ 68,398,249 $19,173,027 $1,048,829,039 $10,175,728 36,264,729 55,689,888 5,036,378 1,591,624 46,265,419 838,115 $ 19.80 $ 12.57 $ 13.58 $ 12.05 $ 22.67 $ 12.14 ============== ============== ============ =========== ============== =========== $ -- $ 48,923,481 $ -- $ -- $ -- $ -- -- 3,962,805 -- -- -- -- $ -- $ 12.35 $ -- $ -- $ -- $ -- ============== ============== ============ =========== ============== =========== $ 217,044,650 $ 269,185,186 $ 61,410,805 $51,571,571 $ 882,162,629 $ 9,147,530 11,081,982 22,020,508 4,534,827 4,285,090 39,416,530 750,454 $ 19.59 $ 12.22 $ 13.54 $ 12.04 $ 22.38 $ 12.19 ============== ============== ============ =========== ============== =========== LAUDUS ROSENBERG LAUDUS ROSENBERG GLOBAL LONG/SHORT VALUE LONG/SHORT EQUITY FUND EQUITY FUND ----------------- ---------------- $18,233,114 $265,909,634 =========== ============ $19,881,016 $302,181,168 1,180,359 18,114,959 ----------- ------------ 21,061,375 320,296,127 ----------- ------------ 14,388,573 303,267,401 -- -- -- -- 5,110,977 -- 2,964 -- 69,871 736,235 57,573 1,513,576 143,715 7,237,339 512,068 6,782,988 24,248 -- -- -- 444 15,655 ----------- ------------ 41,371,808 639,849,321 ----------- ------------ $18,939,163 $305,578,183 =========== ============ 19,721,130 303,890,759 86,567 -- 185,166 -- 37,210 666,279 220,981 5,111,573 341,145 4,317,495 -- -- 2,163 14,677 39,826 329,120 27,838 409,038 1,607 3,800 2,129 22,517 581 829 9,164 6,548 36,235 81,572 ----------- ------------ 20,711,742 314,854,207 ----------- ------------ $20,660,066 $324,995,114 =========== ============ $19,104,531 $353,049,909 228,620 1,212,644 (716,263) (85,341,356) 2,043,178 56,073,917 ----------- ------------ $20,660,066 $324,995,114 =========== ============ $17,004,700 $260,595,548 1,390,939 24,247,756 $ 12.23 $ 10.75 =========== ============ $ -- $ -- -- -- $ -- $ -- =========== ============ $ 3,655,366 $ 64,399,566 301,533 6,059,779 $ 12.12 $ 10.63 =========== ============
See the accompanying notes to the financial statements. Laudus Funds Annual Report 131 Financial Statements Statement of Operations for the year ended 3/31/07
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. LARGE U.S. LARGE U.S. LARGE LAUDUS ROSENBERG CAPITALIZATION CAPITALIZATION CAPITALIZATION U.S. DISCOVERY FUND GROWTH FUND VALUE FUND FUND ---------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends(1)................................... $ 1,682,443 $ 710,278 $ 162,609 $10,000,622 Interest....................................... 60,263 38,531 3,290 455,646 Securities lending............................. -- 6,024 -- 280,700 ----------- ----------- --------- ----------- Total investment income........................ 1,742,706 754,833 165,899 10,736,968 ----------- ----------- --------- ----------- EXPENSES: Adviser fees................................... 722,534 440,259 56,360 8,486,860 Distribution and shareholder service fees (Investor Shares)............................ 25,202 5,029 1,070 639,781 Service fees (Adviser Shares).................. -- -- -- -- Professional fees.............................. 49,520 42,238 20,944 116,882 Custodian fees................................. 35,009 11,408 4,491 69,104 Overdraft charges.............................. 7,430 228 115 31,452 Fund accounting and administration fees........ 37,669 41,366 34,363 73,088 Registration and filing fees................... 42,295 45,848 38,789 93,966 Sub-accounting fees (Investor Shares).......... 12,409 2,430 606 334,405 Shareholder report fee......................... 17,318 10,867 1,218 152,242 Transfer agent fees............................ 19,490 16,108 15,644 107,785 Trustees' fees................................. 4,877 6,252 4,196 17,143 Trustees' retirement plan...................... 609 363 48 6,012 Recouped by adviser............................ 32,605 2,112 74 -- Dividend expense for securities sold short..... -- -- -- -- Other expenses................................. 4,548 1,426 1,492 19,883 ----------- ----------- --------- ----------- Total expenses before custody credits and waivers/reimbursements..................... 1,011,515 625,934 179,410 10,148,603 Less custody credits......................... (19) (17) (18) (109) Less expenses waived/reimbursed by the Adviser(2)................................. (20,097) (38,530) (103,613) (26,377) ----------- ----------- --------- ----------- Net expenses................................. 991,399 587,387 75,779 10,122,117 ----------- ----------- --------- ----------- NET INVESTMENT INCOME.......................... 751,307 167,446 90,120 614,851 ----------- ----------- --------- ----------- REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS Net realized gains/(losses) on securities and foreign currency transactions................ 6,522,821 (1,019,951) 667,997 42,825,956 Net realized losses on securities sold short... -- -- -- -- Change in unrealized appreciation/(depreciation) on investments... 3,731,397 4,581,034 206,286 4,928,724 ----------- ----------- --------- ----------- NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS.................................. 10,254,218 3,561,083 874,283 47,754,680 ----------- ----------- --------- ----------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS... $11,005,525 $ 3,728,529 $ 964,403 $48,369,531 =========== =========== ========= ===========
(*) For the period May 31, 2006 (commencement of operations) through March 31, 2007. (1) Net of foreign withholding tax for Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/ Short Equity Fund was $27, $181,187 $92,569, $2,875,885, and $31,711, respectively. (2) Includes reimbursement of sub-accounting fees on Investor Shares. See the accompanying notes to the financial statements. 132 Laudus Funds Annual Report Financial Statements--Statement of Operations continued
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG INTERNATIONAL U.S. LARGE/MID LAUDUS ROSENBERG U.S. SMALL LAUDUS ROSENBERG LAUDUS ROSENBERG SMALL CAPITALIZATION GLOBAL CAPITALIZATION INTERNATIONAL INTERNATIONAL CAPITALIZATION LONG/SHORT LONG/SHORT FUND EQUITY FUND DISCOVERY FUND* FUND EQUITY FUND EQUITY FUND ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 11,159,907 $ 2,565,865 $ 1,059,707 $ 35,156,979 $ 409,507 $ 502,158 399,149 98,619 65,443 916,148 1,364,595 1,042,744 540,021 -- -- 1,345,979 -- -- ------------- ----------- ----------- ------------ ----------- ----------- 12,099,077 2,664,484 1,125,150 37,419,106 1,774,102 1,544,902 ------------- ----------- ----------- ------------ ----------- ----------- 10,332,828 864,393 469,113 15,538,325 278,672 494,486 713,458 128,048 85,588 1,985,119 29,269 18,981 121,370 -- -- -- -- -- 112,757 55,149 22,449 181,293 48,738 43,824 86,628 101,792 154,750 1,018,370 16,605 31,021 47,855 160 1,200 61,073 -- -- 38,333 75,362 55,300 199,030 34,000 106,103 54,517 45,657 31,981 136,737 39,189 31,541 295,039 57,383 49,656 927,368 12,934 8,250 189,541 19,071 7,563 263,703 4,073 1,257 81,069 21,588 15,200 259,456 25,075 19,571 28,423 6,215 7,477 29,242 6,239 4,582 7,365 629 349 10,103 182 216 -- 216,860 22 -- 5,160 11,774 -- -- -- -- 400,088 470,253 (61,671) (40,232) 4,053 20,284 1,285 (353) ------------- ----------- ----------- ------------ ----------- ----------- 12,047,512 1,552,075 904,701 20,630,103 901,509 1,241,506 (554) (12) (4,288) (2,684) -- -- -- (35,568) (167,493) -- (120,745) (92,459) ------------- ----------- ----------- ------------ ----------- ----------- 12,046,958 1,516,495 732,920 20,627,419 780,764 1,149,047 ------------- ----------- ----------- ------------ ----------- ----------- 52,119 1,147,989 392,230 16,791,687 993,338 395,855 ------------- ----------- ----------- ------------ ----------- ----------- 150,336,455 6,877,363 2,870,405 208,560,905 3,242,455 917,421 -- -- -- -- (2,648,980) (87,831) (145,392,179) 11,549,757 8,235,461 82,283,173 (363,200) (1,068,460) ------------- ----------- ----------- ------------ ----------- ----------- 4,944,276 18,427,120 11,105,866 290,844,078 230,275 (238,870) ------------- ----------- ----------- ------------ ----------- ----------- $ 4,996,395 $19,575,109 $11,498,096 $307,635,765 $ 1,223,613 $ 156,985 ============= =========== =========== ============ =========== =========== LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND ---------------- $ 2,725,914 13,692,103 -- ------------ 16,418,017 ------------ 4,327,917 168,325 -- 68,970 89,785 -- 73,836 79,128 59,341 49,859 55,876 11,908 1,818 24,328 3,813,316 385 ------------ 8,824,792 -- (2,516) ------------ 8,822,276 ------------ 7,595,741 ------------ 17,740,743 (38,074,847) 22,006,563 ------------ 1,672,459 ------------ $ 9,268,200 ============
See the accompanying notes to the financial statements. Laudus Funds Annual Report 133 Financial Statements Statement of Changes in Net Assets
LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. LARGE U.S. LARGE CAPITALIZATION FUND CAPITALIZATION GROWTH FUND ---------------------------- --------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006 2007 2006 ------------ ------------ ------------ ----------- OPERATIONS: Net investment income/(loss).............................. $ 751,307 $ 360,927 $ 167,446 $ 48,395 Net realized gains/(losses) from investments.............. 6,522,821 4,948,673 (1,019,951) 27,807 Change in unrealized appreciation/(depreciation) from investments............................................. 3,731,397 1,301,859 4,581,034 2,884,447 ------------ ------------ ------------ ----------- Change in net assets resulting from operations.......... 11,005,525 6,611,459 3,728,529 2,960,649 ------------ ------------ ------------ ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares.................................... (668,604) (303,600) (135,787) (22,348) Adviser Shares.......................................... -- -- -- -- Investor Shares......................................... (40,997) (42,138) -- -- ------------ ------------ ------------ ----------- (709,601) (345,738) (135,787) (22,348) ------------ ------------ ------------ ----------- Net realized gains on investments Institutional Shares.................................... (3,045,475) (3,529,019) -- -- Adviser Shares.......................................... -- -- -- -- Investor Shares......................................... (320,576) (668,587) -- -- ------------ ------------ ------------ ----------- (3,366,051) (4,197,606) -- -- ------------ ------------ ------------ ----------- Return of capital Institutional Shares.................................... -- -- -- -- Adviser Shares.......................................... -- -- -- -- Investor Shares......................................... -- -- -- -- ------------ ------------ ------------ ----------- -- -- -- -- ------------ ------------ ------------ ----------- Change in net assets resulting from distributions....... (4,075,652) (4,543,344) (135,787) (23,348) ------------ ------------ ------------ ----------- CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares.................................... 58,578,093 26,291,073 36,913,996 39,279,438 Adviser Shares.......................................... -- -- -- -- Investor Shares......................................... 2,449,618 8,190,489 1,064,127 673,860 ------------ ------------ ------------ ----------- 61,027,711 34,481,562 37,978,123 39,953,298 ------------ ------------ ------------ ----------- Distributions reinvested Institutional Shares.................................... 2,813,571 3,546,531 54,198 23,347 Adviser Shares.......................................... -- -- -- -- Investor Shares......................................... 344,240 706,567 -- -- ------------ ------------ ------------ ----------- 3,157,811 4,253,098 54,198 23,347 ------------ ------------ ------------ ----------- Value of shares redeemed Institutional Shares(1)................................. (27,058,789) (21,993,309) (9,389,918) (2,637,973) Adviser Shares.......................................... -- -- -- -- Investor Shares......................................... (3,384,025) (1,832,689) (747,706) (989,955) ------------ ------------ ------------ ----------- (30,442,814) (23,825,998) (10,137,624) (3,627,928) ------------ ------------ ------------ ----------- Change in net assets from capital transactions.......... 33,742,708 14,908,662 27,894,697 36,348,717 ------------ ------------ ------------ ----------- Change in net assets........................................ 40,672,581 16,976,777 31,487,439 39,286,018 NET ASSETS: Beginning of period....................................... 64,321,966 47,345,189 46,235,419 6,949,401 ------------ ------------ ------------ ----------- End of period............................................. $104,994,547 $ 64,321,966 $ 77,722,858 $46,235,419 ============ ============ ============ =========== Undistributed net investment income/(loss).................. $ 163,419 $ 121,713 $ 61,427 $ 29,768 ============ ============ ============ ===========
* For the period May 2, 2005 (commencement of operations) through March 31, 2006. (1) Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Discovery Fund included $37,419,391 for shares redeemed in-kind during the year ended March 31, 2006. (2) This amount reflects a portion of the distribution made from realized gains which for tax purposes are reclassified as a return of capital. See the accompanying notes to the financial statements. 134 Laudus Funds Annual Report Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG U.S. LARGE LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG CAPITALIZATION VALUE FUND U.S. DISCOVERY FUND U.S. SMALL CAPITALIZATION FUND INTERNATIONAL EQUITY FUND -------------------------- ----------------------------- ------------------------------- -------------------------- YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006* 2007 2006 2007 2006 2007 2006 ----------- ------------ ------------- ------------- -------------- -------------- ------------ ----------- $ 90,120 $ 99,135 $ 614,851 $ 194,636 $ 52,119 $ (963,291) $ 1,147,989 $ 379,616 667,997 184,484 42,825,956 11,893,542 150,336,455 129,828,692 6,877,363 2,216,620 206,286 795,428 4,928,724 127,182,922 (145,392,179) 88,529,661 11,549,757 4,491,113 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- 964,403 1,079,047 48,369,531 139,271,100 4,996,395 217,395,062 19,575,109 7,087,349 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (148,373) (10,558) (1,053,017) -- -- -- (627,740) (199,844) -- -- -- -- -- -- -- -- (10,519) -- -- -- -- -- (408,740) (113,876) ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (158,892) (10,558) (1,053,017) -- -- -- (1,036,480) (313,720) ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (276,428) (33,243) (17,334,529) (4,990,426) (95,202,915) (112,927,744) (1,295,067) -- -- -- -- -- (5,940,043) (5,842,269) -- -- (21,234) (599) (5,813,751) (2,263,795) (33,618,626) (38,754,189) (1,092,235) -- ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (297,662) (33,842) (23,148,280) (7,254,221) (134,761,584) (157,524,202) (2,387,302) -- ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- -- -- -- (5,003,953)(2) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (2,269,931)(2) -- -- -- -- ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- -- -- -- (7,273,884) -- -- -- -- ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (456,554) (44,400) (24,201,297) (14,528,105) (134,761,584) (157,524,202) (3,423,782) (313,720) ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- 321,271 5,730,362 168,801,668 419,607,853 118,380,094 117,465,558 48,370,879 2,808,525 -- -- -- -- 14,915,237 15,001,645 -- -- 702,787 203,857 71,671,762 224,972,095 59,760,279 53,810,720 48,191,782 8,369,324 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- 1,024,058 5,934,219 240,473,430 644,579,948 193,055,610 186,277,923 96,562,661 11,177,849 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- 419,345 43,801 17,849,454 9,736,549 88,113,447 105,856,770 746,719 199,754 -- -- -- -- 4,445,580 4,545,331 -- -- 28,972 599 5,684,793 4,524,500 27,639,151 32,837,156 1,436,598 113,797 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- 448,317 44,400 23,534,247 14,261,049 120,198,178 143,239,257 2,183,317 313,551 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (1,857,508) (101,212) (164,345,008) (97,053,288) (334,677,200) (297,001,646) (11,984,261) (1,250,508) -- -- -- -- (14,904,487) (12,610,680) -- -- (363,352) (72,669) (146,485,470) (43,374,609) (96,464,540) (86,444,438) (13,615,518) (5,088,188) ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (2,220,860) (173,881) (310,830,478) (140,427,897) (446,046,227) (396,056,764) (25,599,779) (6,338,696) ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (748,485) 5,804,738 (46,822,801) 518,413,100 (132,792,439) (66,539,584) 73,146,199 5,152,704 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- (240,636) 6,839,385 (22,654,567) 643,156,095 (262,557,628) (6,668,724) 89,297,526 11,926,333 6,839,385 -- 957,884,476 314,728,381 1,280,587,269 1,287,255,993 40,511,528 28,585,195 ----------- ---------- ------------- ------------- -------------- -------------- ------------ ----------- $ 6,598,749 $6,839,385 $ 935,229,909 $ 957,884,476 $1,018,029,641 $1,280,587,269 $129,809,054 $40,511,528 =========== ========== ============= ============= ============== ============== ============ =========== $ 20,127 $ 88,899 $ (24,032) $ (32,005) $ (57,016) $ (137,207) $ 327,367 $ 84,630 =========== ========== ============= ============= ============== ============== ============ ===========
See the accompanying notes to the financial statements. Laudus Funds Annual Report 135 Financial Statements Statement of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG INTERNATIONAL INTERNATIONAL SMALL DISCOVERY FUND CAPITALIZATION FUND ---------------- -------------------------------- PERIOD ENDED YEAR ENDED YEAR ENDED MARCH 31, MARCH 31, MARCH 31, 2007** 2007 2006 ---------------- -------------- -------------- OPERATIONS: Net investment income/(loss).............................. $ 392,230 $ 16,791,687 $ 5,554,481 Net realized gains/(losses) from investments.............. 2,870,405 208,560,905 102,872,084 Change in unrealized appreciation/(depreciation) from investments............................................. 8,235,461 82,283,173 185,695,003 ------------ -------------- -------------- Change in net assets resulting from operations.......... 11,498,096 307,635,765 294,121,568 ------------ -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares.................................... (109,953) (14,345,867) (1,827,823) Adviser Shares.......................................... -- -- -- Investor Shares......................................... (233,195) (10,736,773) (1,346,742) ------------ -------------- -------------- (343,148) (25,082,640) (3,174,565) ------------ -------------- -------------- Net realized gains on investments Institutional Shares.................................... (30,335) (79,486,024) (20,302,476) Adviser Shares.......................................... -- -- -- Investor Shares......................................... (82,625) (74,164,191) (31,601,336) ------------ -------------- -------------- (112,960) (153,650,215) (51,903,812) ------------ -------------- -------------- Return of capital Institutional Shares.................................... -- -- -- Adviser Shares.......................................... -- -- -- Investor Shares......................................... -- -- -- ------------ -------------- -------------- -- -- -- ------------ -------------- -------------- Change in net assets resulting from distributions....... (456,108) (178,732,855) (55,078,377) ------------ -------------- -------------- CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares.................................... 18,758,287 430,184,421 426,872,058 Adviser Shares.......................................... -- -- -- Investor Shares......................................... 53,586,133 215,540,881 492,233,451 ------------ -------------- -------------- 72,344,420 645,725,302 919,105,509 ------------ -------------- -------------- Distributions reinvested Institutional Shares.................................... 118,690 77,822,309 21,387,217 Adviser Shares.......................................... -- -- -- Investor Shares......................................... 281,821 72,673,365 31,911,673 ------------ -------------- -------------- 400,511 150,495,674 53,298,890 ------------ -------------- -------------- Value of shares redeemed Institutional Shares.................................... (2,722,783) (226,039,438) (123,787,707) Adviser Shares.......................................... -- -- -- Investor Shares......................................... (10,319,538) (270,496,667) (211,668,183) ------------ -------------- -------------- (13,042,321) (496,536,105) (335,455,890) ------------ -------------- -------------- Change in net assets from capital transactions.......... 59,702,610 299,684,871 636,948,509 ------------ -------------- -------------- Change in net assets........................................ 70,744,598 428,587,781 875,991,700 NET ASSETS: Beginning of period....................................... -- 1,502,403,887 626,412,187 ------------ -------------- -------------- End of period............................................. $ 70,744,598 $1,930,991,668 $1,502,403,887 ============ ============== ============== Undistributed net investment income/(loss).................. $ 245,660 $ 9,402,286 $ 4,390,201 ============ ============== ==============
** For the period May 31, 2006 (commencement of operations) through March 31, 2007. See the accompanying notes to the financial statements. 136 Laudus Funds Annual Report Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LAUDUS ROSENBERG LAUDUS ROSENBERG LONG/SHORT EQUITY FUND GLOBAL LONG/SHORT EQUITY FUND VALUE LONG/SHORT EQUITY FUND ----------------------------- ------------------------------ ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006 2007 2006 2007 2006 ------------- ------------- -------------- ------------- ------------- ------------ $ 993,338 $ 557,508 $ 395,855 $ 90,873 $ 7,595,741 $ 2,691,459 593,475 2,128,670 829,590 1,626,336 (20,334,104) (4,800,032) (363,200) (1,069,485) (1,068,460) 108,253 22,006,563 7,375,303 ------------ ------------ ------------ ----------- ------------- ------------ 1,223,613 1,616,693 156,985 1,825,462 9,268,200 5,266,730 ------------ ------------ ------------ ----------- ------------- ------------ (606,556) (251,087) (519,119) (200,738) (5,816,661) (1,577,788) -- -- -- -- -- -- (404,695) (135,244) (72,914) (69,731) (1,317,915) (362,192) ------------ ------------ ------------ ----------- ------------- ------------ (1,011,251) (386,331) (592,033) (270,469) (7,134,576) (1,939,980) ------------ ------------ ------------ ----------- ------------- ------------ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------------ ------------ ------------ ----------- ------------- ------------ -- -- -- -- -- -- ------------ ------------ ------------ ----------- ------------- ------------ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------------ ------------ ------------ ----------- ------------- ------------ -- -- -- -- -- -- ------------ ------------ ------------ ----------- ------------- ------------ (1,011,251) (386,331) (592,033) (270,469) (7,134,576) (1,939,980) ------------ ------------ ------------ ----------- ------------- ------------ 4,377,140 9,306,425 8,649,114 14,201,601 145,201,890 111,120,458 -- -- -- -- -- -- 6,488,812 7,010,365 3,276,912 9,096,950 29,892,979 45,167,332 ------------ ------------ ------------ ----------- ------------- ------------ 10,865,952 16,316,790 11,926,026 23,298,551 175,094,869 156,287,790 ------------ ------------ ------------ ----------- ------------- ------------ 596,728 251,087 515,345 200,606 5,200,711 1,550,181 -- -- -- -- -- -- 378,487 133,900 68,086 69,446 1,166,200 342,604 ------------ ------------ ------------ ----------- ------------- ------------ 975,215 384,987 583,431 270,052 6,366,911 1,892,785 ------------ ------------ ------------ ----------- ------------- ------------ (14,443,250) (3,189,183) (20,143,179) (2,435,287) (80,914,601) (28,990,015) -- -- -- -- -- -- (9,554,813) (8,611,151) (10,409,599) (4,783,293) (29,975,740) (18,131,133) ------------ ------------ ------------ ----------- ------------- ------------ (23,998,063) (11,800,334) (30,552,778) (7,218,580) (110,890,341) (47,121,148) ------------ ------------ ------------ ----------- ------------- ------------ (12,156,896) 4,901,443 (18,043,321) 16,350,023 70,571,439 111,059,427 ------------ ------------ ------------ ----------- ------------- ------------ (11,944,534) 6,131,805 (18,478,369) 17,905,016 72,705,063 114,386,177 31,267,792 25,135,987 39,138,435 21,233,419 252,290,051 137,903,874 ------------ ------------ ------------ ----------- ------------- ------------ $ 19,323,258 $ 31,267,792 $ 20,660,066 $39,138,435 $ 324,995,114 $252,290,051 ============ ============ ============ =========== ============= ============ $ 153,264 $ 171,177 $ 228,620 $ (347,272) $ 1,212,644 $ 751,479 ============ ============ ============ =========== ============= ============
See the accompanying notes to the financial statements. Laudus Funds Annual Report 137 Financial Statements Statement of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. LARGE U.S. LARGE CAPITALIZATION U.S. LARGE CAPITALIZATION CAPITALIZATION FUND GROWTH FUND VALUE FUND ------------------------ -------------------------- -------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006 2007 2006 2007 2006* ---------- ---------- ----------- ----------- ---------- ------------ SHARES SOLD: Institutional.......................... 4,683,826 2,130,792 3,933,323 4,453,595 26,453 568,445 Adviser................................ -- -- -- -- -- -- Investor............................... 196,259 666,482 114,333 74,734 56,943 18,680 ---------- ---------- ---------- --------- -------- ------- 4,880,085 2,797,274 4,047,656 4,528,329 83,396 587,125 ---------- ---------- ---------- --------- -------- ------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................... 214,123 296,038 5,570 2,583 33,361 3,900 Adviser................................ -- -- -- -- -- -- Investor............................... 26,158 58,881 -- -- 2,311 53 ---------- ---------- ---------- --------- -------- ------- 240,281 354,919 5,570 2,583 35,672 3,953 ---------- ---------- ---------- --------- -------- ------- SHARES REDEEMED: Institutional(1)....................... (2,106,330) (1,810,387) (1,005,648) (285,643) (147,151) (9,574) Adviser................................ -- -- -- -- -- -- Investor............................... (271,271) (150,073) (80,219) (113,020) (28,940) (6,490) ---------- ---------- ---------- --------- -------- ------- (2,377,601) (1,960,460) (1,085,867) (398,663) (176,091) (16,064) ---------- ---------- ---------- --------- -------- ------- CHANGE IN SHARES: Institutional.......................... 2,791,619 616,443 2,933,245 4,170,535 (87,337) 562,771 Adviser................................ -- -- -- -- -- -- Investor............................... (48,854) 575,290 34,114 (38,286) 30,314 12,243 ---------- ---------- ---------- --------- -------- ------- 2,742,765 1,191,733 2,967,359 4,132,249 (57,023) 575,014 ========== ========== ========== ========= ======== =======
* For the period May 2, 2005 (commencement of operations) through March 31, 2006. ** For the period May 31, 2006 (commencement of operations) through March 31, 2007. (1) Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Discovery Fund included 2,459,060 for shares redeemed in-kind during the year ended March 31, 2006. See the accompanying notes to the financial statements. 138 Laudus Funds Annual Report Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG INTERNATIONAL U.S. DISCOVERY FUND U.S. SMALL CAPITALIZATION FUND INTERNATIONAL EQUITY FUND DISCOVERY FUND ------------------------ ------------------------------- ------------------------- ---------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006 2007 2006 2007 2006 2007** ----------- ---------- -------------- -------------- ----------- ----------- ---------------- 8,954,963 24,316,701 9,025,809 8,625,498 4,057,376 267,947 1,838,230 -- -- 1,173,536 1,104,116 -- -- -- 3,821,131 13,483,409 4,688,425 4,038,568 3,942,327 789,417 5,240,229 ----------- ---------- ----------- ----------- ---------- --------- ---------- 12,776,094 37,800,110 14,887,770 13,768,182 7,999,703 1,057,364 7,078,459 ----------- ---------- ----------- ----------- ---------- --------- ---------- 931,114 561,184 7,100,197 8,328,621 57,930 18,564 10,560 -- -- 364,392 362,178 -- -- -- 299,515 262,747 2,288,009 2,637,523 111,624 10,586 25,073 ----------- ---------- ----------- ----------- ---------- --------- ---------- 1,230,629 823,931 9,752,598 11,328,322 169,554 29,150 35,633 ----------- ---------- ----------- ----------- ---------- --------- ---------- (8,657,298) (5,907,480) (25,741,760) (21,868,787) (917,509) (119,864) (257,166) -- -- (1,172,771) (940,102) -- -- -- (7,948,553) (2,505,790) (7,593,651) (6,436,504) (1,117,813) (500,810) (980,212) ----------- ---------- ----------- ----------- ---------- --------- ---------- (16,605,851) (8,413,270) (34,508,182) (29,245,393) (2,035,322) (620,674) (1,237,378) ----------- ---------- ----------- ----------- ---------- --------- ---------- 1,228,779 18,970,405 (9,615,754) (4,914,668) 3,197,797 166,647 1,591,624 -- -- 365,157 526,192 -- -- -- (3,827,907) 11,240,366 (617,217) 239,587 2,936,138 299,193 4,285,090 ----------- ---------- ----------- ----------- ---------- --------- ---------- (2,599,128) 30,210,771 (9,867,814) (4,148,889) 6,133,935 465,840 5,876,714 =========== ========== =========== =========== ========== ========= ==========
See the accompanying notes to the financial statements. Laudus Funds Annual Report 139 Financial Statements Statement of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG INTERNATIONAL SMALL U.S. LARGE/MID CAPITALIZATION CAPITALIZATION FUND LONG/SHORT EQUITY FUND ----------------------------- ----------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006 2007 2006 ----------- ----------- ----------- ----------- SHARES SOLD: Institutional.......................................... 20,193,658 22,977,000 358,962 788,858 Investor............................................... 10,203,670 27,951,465 528,308 595,036 ----------- ----------- ---------- ---------- 30,397,328 50,928,465 887,270 1,383,894 ----------- ----------- ---------- ---------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................................... 3,719,996 1,162,349 49,603 21,479 Investor............................................... 3,514,186 1,752,426 31,306 11,415 ----------- ----------- ---------- ---------- 7,234,182 2,914,775 80,909 32,894 ----------- ----------- ---------- ---------- SHARES REDEEMED: Institutional.......................................... (10,934,748) (6,873,202) (1,185,354) (272,078) Investor............................................... (13,086,640) (12,177,417) (779,458) (754,930) ----------- ----------- ---------- ---------- (24,021,388) (19,050,619) (1,964,812) (1,027,008) ----------- ----------- ---------- ---------- CHANGE IN SHARES: Institutional.......................................... 12,978,906 17,266,147 (776,789) 538,259 Investor............................................... 631,216 17,526,474 (219,844) (148,479) ----------- ----------- ---------- ---------- 13,610,122 34,792,621 (996,633) 389,780 =========== =========== ========== ==========
See the accompanying notes to the financial statements. 140 Laudus Funds Annual Report Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG GLOBAL LONG/SHORT VALUE LONG/SHORT EQUITY FUND EQUITY FUND ---------------------------- ----------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MARCH 31, MARCH 31, MARCH 31, MARCH 31, 2007 2006 2007 2006 ---------- ---------- ----------- ---------- 707,333 1,182,558 13,615,380 10,562,660 270,497 769,500 2,806,789 4,340,766 ---------- --------- ----------- ---------- 977,830 1,952,058 16,422,169 14,903,426 ---------- --------- ----------- ---------- 42,981 16,773 497,676 147,076 5,722 5,875 112,676 32,848 ---------- --------- ----------- ---------- 48,703 22,648 610,352 179,924 ---------- --------- ----------- ---------- (1,657,449) (204,380) (7,619,121) (2,752,771) (868,009) (412,483) (2,836,891) (1,752,709) ---------- --------- ----------- ---------- (2,525,458) (616,863) (10,456,012) (4,505,480) ---------- --------- ----------- ---------- (907,135) 994,951 6,493,935 7,956,965 (591,790) 362,892 82,574 2,620,905 ---------- --------- ----------- ---------- (1,498,925) 1,357,843 6,576,509 10,577,870 ========== ========= =========== ==========
See the accompanying notes to the financial statements. Laudus Funds Annual Report 141 Financial Statements Financial Highlights as of 3/31/07
INVESTMENT ACTIVITIES ------------------------------------------- NET ASSET NET REALIZED TOTAL VALUE, NET AND UNREALIZED FROM BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT OF PERIOD INCOME/(LOSS) ON INVESTMENTS ACTIVITIES --------- ------------- -------------- ---------- INSTITUTIONAL SHARES U.S. LARGE CAPITALIZATION FUND For the year ended March 31, 2007.................... $12.35 $ 0.10(6) $ 1.27 $ 1.37 For the year ended March 31, 2006.................... 11.79 0.10(6) 1.62 1.72 For the year ended March 31, 2005.................... 10.92 0.11(6) 0.94 1.05 For the year ended March 31, 2004.................... 8.28 0.06(6) 2.62 2.68 June 19, 2002 to March 31, 2003(1)................... 10.00 0.05(6) (1.73) (1.68) U.S. LARGE CAPITALIZATION GROWTH FUND For the year ended March 31, 2007.................... 9.26 0.03(6) 0.49 0.52 For the year ended March 31, 2006.................... 8.07 0.02(6) 1.18 1.20 For the year ended March 31, 2005.................... 7.84 0.04(6) 0.23 0.27 For the year ended March 31, 2004.................... 5.95 0.06(6) 1.89 1.95 For the year ended March 31, 2003.................... 7.77 0.07(6) (1.83) (1.76) U.S. LARGE CAPITALIZATION VALUE FUND For the year ended March 31, 2007.................... 11.89 0.15(6) 1.45 1.60 May 2, 2005 to March 31, 2006(1)..................... 10.00 0.18(6) 1.79 1.97 U.S. DISCOVERY FUND For the year ended March 31, 2007.................... 19.23 0.03 1.05 1.08 For the year ended March 31, 2006.................... 15.96 0.02 3.58 3.60 For the year ended March 31, 2005.................... 14.71 0.03(6) 1.44 1.47 For the year ended March 31, 2004.................... 9.55 0.06(6) 5.26 5.32 For the year ended March 31, 2003.................... 11.10 0.04(6) (1.57) (1.53) U.S. SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... 14.07 0.02 0.11 0.13 For the year ended March 31, 2006.................... 13.50 --(7) 2.43 2.43 For the year ended March 31, 2005.................... 13.82 0.03(6) 1.27 1.30 For the year ended March 31, 2004.................... 8.98 0.05 5.03 5.08 For the year ended March 31, 2003.................... 11.18 0.03(6) (1.93) (1.90) INTERNATIONAL EQUITY FUND For the year ended March 31, 2007.................... 11.80 0.07 2.08 2.15 For the year ended March 31, 2006.................... 9.63 0.14 2.15 2.29 For the year ended March 31, 2005.................... 8.46 0.09(6) 1.12 1.21 For the year ended March 31, 2004.................... 5.56 0.08(6) 2.90 2.98 For the year ended March 31, 2003.................... 7.09 0.08(6) (1.55) (1.47) INTERNATIONAL DISCOVERY FUND May 31, 2006 to March 31, 2007(1).................... 10.00 0.09(6) 2.06 2.15 INTERNATIONAL SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... 20.97 0.26 3.90 4.16 For the year ended March 31, 2006.................... 16.89 0.13 4.95 5.08 For the year ended March 31, 2005.................... 13.94 0.08(6) 3.53 3.61 For the year ended March 31, 2004.................... 7.92 0.07(6) 6.04 6.11 For the year ended March 31, 2003.................... 8.48 0.09(6) (0.56) (0.47) U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... 12.08 0.60 --(7) 0.60 For the year ended March 31, 2006.................... 11.44 0.25 0.58 0.83 For the year ended March 31, 2005.................... 10.80 (0.01)(6) 0.65 0.64 For the year ended March 31, 2004.................... 11.51 (0.06)(6) (0.65) (0.71) For the year ended March 31, 2003.................... 10.22 --(6),(7) 1.31 1.31 GLOBAL LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... 12.31 0.15(6) 0.06 0.21 For the year ended March 31, 2006.................... 11.62 0.05(6) 0.75 0.80 For the year ended March 31, 2005.................... 11.30 (0.12)(6) 0.44 0.32 For the year ended March 31, 2004.................... 11.87 (0.12)(6) (0.45) (0.57) For the year ended March 31, 2003.................... 10.15 (0.03)(6) 1.73 1.70 VALUE LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... 10.66 0.24 0.09 0.33 For the year ended March 31, 2006.................... 10.51 0.16(6) 0.09 0.25 For the year ended March 31, 2005.................... 9.87 (0.03)(6) 0.67 0.64 For the year ended March 31, 2004.................... 10.48 (0.05)(6) (0.56) (0.61) For the year ended March 31, 2003.................... 8.96 (0.02)(6) 1.54 1.52 LESS DISTRIBUTIONS FROM ------------------------ NET NET REALIZED INVESTMENT GAINS ON RETURN OF TOTAL INCOME INVESTMENTS CAPITAL DIVIDENDS ---------- ----------- --------- --------- INSTITUTIONAL SHARES U.S. LARGE CAPITALIZATION FUND For the year ended March 31, 2007.................... $(0.09) $(0.42) $ -- $(0.51) For the year ended March 31, 2006.................... (0.09) (1.07) -- (1.16) For the year ended March 31, 2005.................... (0.09) (0.09) -- (0.18) For the year ended March 31, 2004.................... (0.04) -- -- (0.04) June 19, 2002 to March 31, 2003(1)................... (0.04) -- -- (0.04) U.S. LARGE CAPITALIZATION GROWTH FUND For the year ended March 31, 2007.................... (0.02) -- -- (0.02) For the year ended March 31, 2006.................... (0.01) -- -- (0.01) For the year ended March 31, 2005.................... (0.04) -- -- (0.04) For the year ended March 31, 2004.................... (0.06) -- -- (0.06) For the year ended March 31, 2003.................... (0.06) -- -- (0.06) U.S. LARGE CAPITALIZATION VALUE FUND For the year ended March 31, 2007.................... (0.26) (0.49) -- (0.75) May 2, 2005 to March 31, 2006(1)..................... (0.02) (0.06) -- (0.08) U.S. DISCOVERY FUND For the year ended March 31, 2007.................... (0.03) (0.48) -- (0.51) For the year ended March 31, 2006.................... -- (0.16) (0.17) (0.33) For the year ended March 31, 2005.................... (0.04) (0.18) -- (0.22) For the year ended March 31, 2004.................... (0.04) (0.12) -- (0.16) For the year ended March 31, 2003.................... (0.02) -- -- (0.02) U.S. SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... -- (1.63) -- (1.63) For the year ended March 31, 2006.................... -- (1.86) -- (1.86) For the year ended March 31, 2005.................... (0.03) (1.59) -- (1.62) For the year ended March 31, 2004.................... (0.04) (0.20) -- (0.24) For the year ended March 31, 2003.................... (0.03) (0.27) -- (0.30) INTERNATIONAL EQUITY FUND For the year ended March 31, 2007.................... (0.12) (0.25) -- (0.37) For the year ended March 31, 2006.................... (0.12) -- -- (0.12) For the year ended March 31, 2005.................... (0.04) -- -- (0.04) For the year ended March 31, 2004.................... (0.08) -- -- (0.08) For the year ended March 31, 2003.................... (0.07) -- -- (0.07) INTERNATIONAL DISCOVERY FUND May 31, 2006 to March 31, 2007(1).................... (0.08) (0.02) -- (0.10) INTERNATIONAL SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... (0.38) (2.08) -- (2.46) For the year ended March 31, 2006.................... (0.08) (0.92) -- (1.00) For the year ended March 31, 2005.................... (0.04) (0.62) -- (0.66) For the year ended March 31, 2004.................... (0.09) -- -- (0.09) For the year ended March 31, 2003.................... (0.11) -- -- (0.11) U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... (0.54) -- -- (0.54) For the year ended March 31, 2006.................... (0.19) -- -- (0.19) For the year ended March 31, 2005.................... -- -- -- -- For the year ended March 31, 2004.................... -- -- -- -- For the year ended March 31, 2003.................... (0.03) -- -- (0.03) GLOBAL LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... (0.29) -- -- (0.29) For the year ended March 31, 2006.................... (0.11) -- -- (0.11) For the year ended March 31, 2005.................... -- -- -- -- For the year ended March 31, 2004.................... -- -- -- -- For the year ended March 31, 2003.................... -- -- -- -- VALUE LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... (0.24) -- -- (0.24) For the year ended March 31, 2006.................... (0.10) -- -- (0.10) For the year ended March 31, 2005.................... -- -- -- -- For the year ended March 31, 2004.................... -- -- -- -- For the year ended March 31, 2003.................... -- -- -- --
(1) From the commencement of operations. (2) Not annualized for periods less than one year. (3) Annualized for periods less than one year. (4) Includes interest expense and dividend expense on securities sold short. (5) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (6) Calculated based on the average shares outstanding during the period. (7) Amount less than $0.005. (8) Exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short. (9) The ratios of Expenses before Waivers/Reimbursements and Expenses Net of Waivers/Reimbursements have been adjusted from 3.57% and 2.78%, respectively, to more appropriately reflect expenses incurred for the period. (10) The ratio of net operating expenses for the Laudus Rosenberg U.S. Large Capitalization Fund would have been 0.99% if overdraft expenses had not been included. See the accompanying notes to the financial statements. 142 Laudus Funds Annual Report Financial Statements--Financial Highlights continued
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------------------------- NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF INCOME/(LOSS) NET EXPENSES EXPENSES REDEMPTION END OF TOTAL PERIOD OF WAIVERS/ BEFORE WAIVERS/ NET OF WAIVERS/ FEES PERIOD RETURN(2) (000'S) REIMBURSEMENTS(3) REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(4) ---------- --------- --------- ----------- ----------------- --------------------- --------------------- $ --(7) $13.21 11.10% $ 94,921 0.81% 1.01% 1.00% -- 12.35 14.90 54,296 0.80 1.14 1.01 -- 11.79 9.66 44,559 0.96 1.23 0.99 --(7) 10.92 32.33 44,301 0.62 1.47 1.00 -- 8.28 (16.78) 14,479 0.80 2.73 0.99 --(7) 9.76 5.62 75,481 0.30 1.05 0.99 -- 9.26 14.85 44,426 0.27 1.34 0.99 --(7) 8.07 3.42 5,056 0.53 2.34 0.99 --(7) 7.84 32.84 5,006 0.80 2.59 0.80 -- 5.95 (22.68) 3,418 1.03 4.55 0.75 --(7) 12.74 13.55 6,058 1.22 2.37 0.99 -- 11.89 19.83 6,694 1.82 2.41 0.49 --(7) 19.80 5.71 718,185 0.17 0.97 0.97 -- 19.23 22.80 673,599 0.15 1.09 1.09 --(7) 15.96 9.98 256,444 0.23 1.20 1.14 --(7) 14.71 55.90 98,077 0.49 1.46 1.14 -- 9.55 (13.83) 18,589 0.38 3.71 1.15 --(7) 12.57 1.11 699,921 0.10 0.95 0.95 -- 14.07 19.46 918,813 0.02 1.04 1.04 --(7) 13.50 9.36 948,225 0.20 1.09 1.09 --(7) 13.82 56.83 954,275 0.45 1.13 1.13 -- 8.98 (17.10) 487,020 0.33 1.29 1.15 --(7) 13.58 18.37 68,398 1.09 1.34 1.34 -- 11.80 23.86 21,688 1.34 1.96 1.34 --(7) 9.63 14.36 16,094 0.96 2.69 1.34 0.01 8.46 53.81 9,914 1.12 4.32 1.35 0.01 5.56 (20.66) 6,368 1.24 5.30 1.35 --(7) 12.05 21.90 19,173 1.06 1.64 1.34 --(7) 22.67 20.82 1,048,829 1.21 1.10 1.10 -- 20.97 30.90 698,064 0.85 1.25 1.25 --(7) 16.89 26.52 270,646 0.50 1.55 1.49 --(7) 13.94 77.37 70,382 0.65 1.94 1.47 0.02 7.92 (5.36) 20,562 1.09 2.60 1.50 --(7) 12.14 4.98 10,176 3.68 3.07 2.67 -- 12.08 7.29 19,512 2.50 3.01 2.71 --(7) 11.44 5.93 12,312 (0.13) 3.23 2.94 --(7) 10.80 (6.17) 20,404 (0.57) 3.22 2.82 0.01 11.51 12.90 26,736 0.01 3.59 2.67 --(7) 12.23 1.77 17,005 1.27 3.68 3.40 -- 12.31 6.91 28,279 0.42 3.31 3.06 -- 11.62 2.83 15,140 (1.04) 4.38 3.82 --(7) 11.30 (4.80) 12,527 (1.11) 3.69(9) 2.91(9) 0.02 11.87 16.95 13,491 (0.28) 4.04 2.50 --(7) 10.75 3.19 260,596 2.70 2.99 2.99 -- 10.66 2.41 189,254 1.51 2.89 2.89 --(7) 10.51 6.48 102,974 (0.28) 3.04 2.98 --(7) 9.87 (5.82) 95,541 (0.46) 2.88 2.77 -- 10.48 16.96 92,356 (0.15) 2.72 2.42 RATIOS/SUPPLEMENTAL DATA --------------------------------- EXPENSES PORTFOLIO NET OF WAIVERS/ TURNOVER REIMBURSEMENTS(3),(8) RATE(5) --------------------- --------- 1.00%(10) 144.21% 0.99 144.32 0.99 127.89 1.00 141.5 0.99 100.79 0.99 70.73 0.99 78.70 0.99 77.81 0.80 177.43 0.75 68.73 0.99 107.77 0.49 81.30 0.97 85.69 1.09 88.63 1.14 62.60 1.14 93.08 1.15 98.65 0.95 76.00 1.04 69.26 1.09 68.09 1.13 75.65 1.15 70.83 1.34 64.19 1.34 59.40 1.34 52.06 1.35 107.02 1.35 138.85 1.34 105.81 1.10 91.82 1.25 101.86 1.49 59.70 1.47 102.50 1.50 129.34 1.24 168.86 1.24 212.62 1.24 180.14 1.25 189.35 1.25 185.66 1.99 233.95 1.99 178.43 1.99 152.24 1.81 175.85 1.50 189.09 1.66 139.74 1.74 121.80 1.74 111.19 1.75 76.36 1.74 209.95
See the accompanying notes to the financial statements. Laudus Funds Annual Report 143 Financial Statements Financial Highlights as of 3/31/07
INVESTMENT ACTIVITIES ------------------------------------------- NET ASSET NET REALIZED TOTAL VALUE, NET AND UNREALIZED FROM BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT OF PERIOD INCOME/(LOSS) ON INVESTMENTS ACTIVITIES --------- ------------- -------------- ---------- ADVISER SHARES U.S. SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... $13.88 $(0.02) $ 0.12 $ 0.10 For the year ended March 31, 2006.................... 13.38 (0.02) 2.38 2.36 For the year ended March 31, 2005.................... 13.71 --(6),(7) 1.26 1.26 For the year ended March 31, 2004.................... 8.91 0.02 5.00 5.02 For the year ended March 31, 2003.................... 11.12 0.01(6) (1.93) (1.92) INVESTOR SHARES U.S. LARGE CAPITALIZATION FUND For the year ended March 31, 2007.................... 12.36 0.07(6) 1.25 1.32 For the year ended March 31, 2006.................... 11.81 0.06(6) 1.63 1.69 For the year ended March 31, 2005.................... 10.96 0.08(6) 0.93 1.01 For the year ended March 31, 2004.................... 8.31 0.02(6) 2.63 2.65 July 31, 2002 to March 31, 2003(1)................... 8.88 0.05(6) (0.62) (0.57) U.S. LARGE CAPITALIZATION GROWTH FUND For the year ended March 31, 2007.................... 9.33 --(6),(7) 0.50 0.50 For the year ended March 31, 2006.................... 8.15 (0.01)(6) 1.19 1.18 For the year ended March 31, 2005.................... 7.92 0.02(6) 0.23 0.25 August 15, 2003 to March 31, 2004(1)................. 6.95 0.09(6) 0.92 1.01 U.S. LARGE CAPITALIZATION VALUE FUND For the year ended March 31, 2007.................... 11.87 0.11(6) 1.45 1.56 May 2, 2005 to March 31, 2006(1)..................... 10.00 0.13(6) 1.80 1.93 U.S. DISCOVERY FUND For the year ended March 31, 2007.................... 19.07 (0.06) 1.06 1.00 For the year ended March 31, 2006.................... 15.88 (0.03) 3.55 3.52 For the year ended March 31, 2005.................... 14.66 (0.05)(6) 1.47 1.42 For the year ended March 31, 2004.................... 9.53 0.01(6) 5.24 5.25 For the year ended March 31, 2003.................... 11.08 0.02(6) (1.57) (1.55) U.S. SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... 13.77 (0.03) 0.11 0.08 For the year ended March 31, 2006.................... 13.30 (0.04) 2.37 2.33 For the year ended March 31, 2005.................... 13.65 (0.02)(6) 1.26 1.24 For the year ended March 31, 2004.................... 8.88 0.01 4.98 4.99 For the year ended March 31, 2003.................... 11.08 --(6),(7) (1.92) (1.92) INTERNATIONAL EQUITY FUND For the year ended March 31, 2007.................... 11.77 0.14 1.97 2.11 For the year ended March 31, 2006.................... 9.61 0.10 2.14 2.24 For the year ended March 31, 2005.................... 8.47 0.06(6) 1.11 1.17 For the year ended March 31, 2004.................... 5.57 0.03(6) 2.93 2.96 For the year ended March 31, 2003.................... 7.05 0.07(6) (1.54) (1.47) INTERNATIONAL DISCOVERY FUND May 31, 2006 to March 31, 2007(1).................... 10.00 0.06(6) 2.06 2.12 INTERNATIONAL SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... 20.74 0.20 3.82 4.02 For the year ended March 31, 2006.................... 16.73 0.08 4.89 4.97 For the year ended March 31, 2005.................... 13.83 0.03(6) 3.51 3.54 For the year ended March 31, 2004.................... 7.87 0.03(6) 6.01 6.04 For the year ended March 31, 2003.................... 8.43 0.08(6) (0.57) (0.49) U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... 12.12 0.50 0.05 0.55 For the year ended March 31, 2006.................... 11.46 0.22 0.59 0.81 For the year ended March 31, 2005.................... 10.86 (0.04)(6) 0.64 0.60 For the year ended March 31, 2004.................... 11.61 (0.10)(6) (0.65) (0.75) For the year ended March 31, 2003.................... 10.34 (0.05)(6) 1.33 1.28 GLOBAL LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... 12.16 0.12(6) 0.05 0.17 For the year ended March 31, 2006.................... 11.49 0.01(6) 0.74 0.75 For the year ended March 31, 2005.................... 11.21 (0.17)(6) 0.43 0.26 For the year ended March 31, 2004.................... 11.81 (0.17)(6) (0.43) (0.60) For the year ended March 31, 2003.................... 10.13 (0.09)(6) 1.75 1.66 VALUE LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... 10.55 0.26 0.03 0.29 For the year ended March 31, 2006.................... 10.41 0.12(6) 0.10 0.22 For the year ended March 31, 2005.................... 9.81 (0.06)(6) 0.66 0.60 For the year ended March 31, 2004.................... 10.43 (0.09)(6) (0.53) (0.62) For the year ended March 31, 2003.................... 8.95 (0.05)(6) 1.53 1.48 LESS DISTRIBUTIONS FROM ------------------------ NET NET REALIZED INVESTMENT GAINS ON RETURN OF TOTAL INCOME INVESTMENTS CAPITAL DIVIDENDS ---------- ----------- --------- --------- ADVISER SHARES U.S. SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... $ -- $(1.63) $ -- $(1.63) For the year ended March 31, 2006.................... -- (1.86) -- (1.86) For the year ended March 31, 2005.................... -- (1.59) -- (1.59) For the year ended March 31, 2004.................... (0.02) (0.20) -- (0.22) For the year ended March 31, 2003.................... (0.02) (0.27) -- (0.29) INVESTOR SHARES U.S. LARGE CAPITALIZATION FUND For the year ended March 31, 2007.................... (0.05) (0.42) -- (0.47) For the year ended March 31, 2006.................... (0.07) (1.07) -- (1.14) For the year ended March 31, 2005.................... (0.07) (0.09) -- (0.16) For the year ended March 31, 2004.................... -- -- -- -- July 31, 2002 to March 31, 2003(1)................... -- -- -- -- U.S. LARGE CAPITALIZATION GROWTH FUND For the year ended March 31, 2007.................... -- -- -- -- For the year ended March 31, 2006.................... -- -- -- -- For the year ended March 31, 2005.................... (0.02) -- -- (0.02) August 15, 2003 to March 31, 2004(1)................. (0.04) -- -- (0.04) U.S. LARGE CAPITALIZATION VALUE FUND For the year ended March 31, 2007.................... (0.24) (0.49) -- (0.73) May 2, 2005 to March 31, 2006(1)..................... -- (0.06) -- (0.06) U.S. DISCOVERY FUND For the year ended March 31, 2007.................... -- (0.48) -- (0.48) For the year ended March 31, 2006.................... -- (0.16) (0.17) (0.33) For the year ended March 31, 2005.................... (0.02) (0.18) -- (0.20) For the year ended March 31, 2004.................... -- (0.12) -- (0.12) For the year ended March 31, 2003.................... -- -- -- -- U.S. SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... -- (1.63) -- (1.63) For the year ended March 31, 2006.................... -- (1.86) -- (1.86) For the year ended March 31, 2005.................... -- (1.59) -- (1.59) For the year ended March 31, 2004.................... (0.02) (0.20) -- (0.22) For the year ended March 31, 2003.................... (0.01) (0.27) -- (0.28) INTERNATIONAL EQUITY FUND For the year ended March 31, 2007.................... (0.09) (0.25) -- (0.34) For the year ended March 31, 2006.................... (0.08) -- -- (0.08) For the year ended March 31, 2005.................... (0.03) -- -- (0.03) For the year ended March 31, 2004.................... (0.08) -- -- (0.08) For the year ended March 31, 2003.................... (0.02) -- -- (0.02) INTERNATIONAL DISCOVERY FUND May 31, 2006 to March 31, 2007(1).................... (0.06) (0.02) -- (0.08) INTERNATIONAL SMALL CAPITALIZATION FUND For the year ended March 31, 2007.................... (0.30) (2.08) -- (2.38) For the year ended March 31, 2006.................... (0.04) (0.92) -- (0.96) For the year ended March 31, 2005.................... (0.02) (0.62) -- (0.64) For the year ended March 31, 2004.................... (0.08) -- -- (0.08) For the year ended March 31, 2003.................... (0.09) -- -- (0.09) U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... (0.49) -- -- (0.49) For the year ended March 31, 2006.................... (0.15) -- -- (0.15) For the year ended March 31, 2005.................... -- -- -- -- For the year ended March 31, 2004.................... -- -- -- -- For the year ended March 31, 2003.................... (0.02) -- -- (0.02) GLOBAL LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... (0.21) -- -- (0.21) For the year ended March 31, 2006.................... (0.08) -- -- (0.08) For the year ended March 31, 2005.................... -- -- -- -- For the year ended March 31, 2004.................... -- -- -- -- For the year ended March 31, 2003.................... -- -- -- -- VALUE LONG/SHORT EQUITY FUND For the year ended March 31, 2007.................... (0.21) -- -- (0.21) For the year ended March 31, 2006.................... (0.08) -- -- (0.08) For the year ended March 31, 2005.................... -- -- -- -- For the year ended March 31, 2004.................... -- -- -- -- For the year ended March 31, 2003.................... -- -- -- --
(1) From the commencement of operations. (2) Not annualized for periods less than one year. (3) Annualized for periods less than one year. (4) Includes interest expense and dividend expense on securities sold short. (5) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (6) Calculated based on the average shares outstanding during the period. (7) Amount less than $0.005. (8) Exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short. (9) The ratios of Expenses before Waivers/Reimbursements and Expenses Net of Waivers/Reimbursements have been adjusted from 3.89% and 3.11%, respectively, to more appropriately reflect expenses incurred for the period. (10) The ratio of net operating expenses for the Laudus U.S. Large Capitalization Fund would have been 1.29% if overdraft expenses had not been included. See the accompanying notes to the financial statements. 144 Laudus Funds Annual Report Financial Statements--Financial Highlights continued
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------------------------- NET ASSET NET ASSETS, NET INVESTMENT VALUE, END OF INCOME/(LOSS) NET EXPENSES EXPENSES REDEMPTION END OF TOTAL PERIOD OF WAIVERS/ BEFORE WAIVERS/ NET OF WAIVERS/ FEES PERIOD RETURN(2) (000'S) REIMBURSEMENTS(3) REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(4) ---------- --------- --------- ----------- ----------------- --------------------- --------------------- $ --(7) $12.35 0.90% $ 48,923 (0.14)% 1.20% 1.20% -- 13.88 19.09 49,952 (0.24) 1.32 1.32 --(7) 13.38 9.12 41,104 (0.01) 1.31 1.31 --(7) 13.71 56.53 44,059 0.19 1.40 1.40 -- 8.91 (17.35) 25,973 0.07 1.54 1.40 --(7) 13.21 10.69 10,074 0.52 1.38 1.30 -- 12.36 14.57 10,026 0.50 1.52 1.34 -- 11.81 9.22 2,786 0.69 1.58 1.35 --(7) 10.96 31.89 590 0.24 1.51 1.25 -- 8.31 (6.42) 666 0.87 3.05 1.25 --(7) 9.83 5.36 2,242 (0.01) 1.43 1.29 -- 9.33 14.48 1,810 (0.12) 1.91 1.33 --(7) 8.15 3.14 1,894 0.21 2.68 1.32 --(7) 7.92 14.50 1,479 1.12 2.72 1.11 -- 12.70 13.22 540 0.90 2.75 1.29 -- 11.87 19.33 145 1.31 2.78 0.96 --(7) 19.59 5.34 217,045 (0.21) 1.35 1.34 -- 19.07 22.40 284,285 (0.20) 1.43 1.43 --(7) 15.88 9.70 58,284 (0.30) 1.55 1.49 --(7) 14.66 55.22 2,581 0.04 1.63 1.40 -- 9.53 (13.99) 104 0.20 6.18 1.40 --(7) 12.22 0.75 269,185 (0.25) 1.30 1.30 -- 13.77 18.98 311,822 (0.33) 1.39 1.39 --(7) 13.30 9.00 297,927 (0.15) 1.43 1.43 --(7) 13.65 56.40 272,481 0.11 1.47 1.47 -- 8.88 (17.42) 136,293 (0.02) 1.63 1.49 --(7) 13.54 18.08 61,411 1.17 1.71 1.64 -- 11.77 23.41 18,824 1.02 2.33 1.72 --(7) 9.61 13.79 12,491 0.65 2.96 1.72 0.02 8.47 53.61 2,881 0.45 4.46 1.59 0.01 5.57 (20.73) 17 1.06 5.27 1.60 --(7) 12.04 21.62 51,572 0.75 2.03 1.64 --(7) 22.38 20.35 882,163 0.87 1.47 1.47 -- 20.74 30.48 804,340 0.42 1.60 1.60 --(7) 16.73 26.16 355,766 0.20 1.88 1.83 --(7) 13.83 76.91 82,780 0.28 2.18 1.75 0.02 7.87 (5.53) 16,834 0.99 2.93 1.78 0.01 12.19 4.68 9,148 3.40 3.46 2.98 -- 12.12 7.09 11,755 2.14 3.31 3.02 --(7) 11.46 5.52 12,824 (0.33) 3.55 3.26 --(7) 10.86 (6.46) 8,693 (0.93) 3.51 3.12 0.01 11.61 12.49 16,251 (0.45) 3.91 3.07 --(7) 12.12 1.45 3,655 0.98 4.04 3.78 -- 12.16 6.58 10,859 0.10 3.68 3.41 0.02 11.49 2.50 6,094 (1.57) 4.80 4.27 --(7) 11.21 (5.08) 8,533 (1.50) 4.01(9) 3.23(9) 0.02 11.81 16.58 9,474 (0.80) 4.42 2.92 --(7) 10.63 2.81 64,400 2.41 3.28 3.28 -- 10.55 2.08 63,036 1.17 3.22 3.22 --(7) 10.41 6.12 34,930 (0.55) 3.37 3.30 --(7) 9.81 (5.94) 34,081 (0.90) 3.18 3.06 -- 10.43 16.54 38,473 (0.43) 2.97 2.69 RATIOS/SUPPLEMENTAL DATA --------------------------------- EXPENSES PORTFOLIO NET OF WAIVERS/ TURNOVER REIMBURSEMENTS(3),(8) RATE(5) --------------------- --------- 1.20% 76.00% 1.32 69.26 1.31 68.09 1.40 75.65 1.40 70.83 1.30(10) 144.21 1.33 144.32 1.35 127.89 1.25 141.50 1.25 100.79 1.29 70.73 1.33 78.70 1.32 77.81 1.39 177.43 1.29 107.77 0.96 81.30 1.34 85.69 1.43 88.63 1.49 62.60 1.40 93.08 1.40 98.65 1.30 76.00 1.39 69.26 1.43 68.09 1.47 75.65 1.49 70.83 1.64 64.19 1.72 59.40 1.72 52.06 1.59 107.02 1.60 138.85 1.64 105.81 1.47 91.82 1.60 101.86 1.83 59.70 1.75 102.50 1.78 129.34 1.54 168.86 1.59 212.62 1.61 180.14 1.55 189.35 1.54 185.66 2.29 233.95 2.29 178.43 2.34 152.24 2.14 175.85 1.80 189.09 1.99 139.74 2.06 121.80 2.06 111.19 2.05 76.36 2.02 209.95
See the accompanying notes to the financial statements. Laudus Funds Annual Report 145 Financial Statements Notes to Financial Statements as of 3/31/07 1. ORGANIZATION. Laudus Trust, (the "Trust") was established as a Massachusetts business trust under the laws of Massachusetts on April 1, 1988. The Trust is an open-end diversified management investment company consisting of twelve portfolios, eleven of which were operational, as of March 31, 2007 (individually, a "Fund" and collectively the "Funds"); Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund, Laudus Rosenberg Value Long/Short Equity Fund. As of March 31, 2007, the Laudus Rosenberg U.S. Long/Short Equity Fund was not operational. As of October 15, 2004 and May 1, 2006 the Laudus Rosenberg U.S. Small Capitalization Fund and the Laudus Rosenberg U.S. Discovery Fund, respectively, were closed to new investors. The Laudus Rosenberg International Small Capitalization Fund closed to new investors on December 31, 2005, and as of May 31, 2007, the Fund will close to all investors, except the Fund will continue to offer shares to certain qualified retirement plans and through reinvestment of dividends and capital gains. As of May 31, 2006, the Laudus Rosenberg International Discovery Fund commenced operation. Each Fund is authorized to issue an unlimited number of Institutional Shares and Investor Shares of no par value, and the Laudus Rosenberg U.S. Small Capitalization Fund is also authorized to issue an unlimited number of Adviser Shares of no par value. Each class of shares generally has identical rights and preferences, except that each class is subject to different eligibility conditions, bears different distribution and sub-transfer agent expenses, and has separate voting rights on matters pertaining solely to that class of shares. Under the Funds' organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. 2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual amounts could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. SECURITY VALUATION Each Fund uses approved pricing services to provide values for its portfolio securities. Current market values are generally determined by the approved pricing services as follows: securities traded on stock exchanges are valued at the last-quoted sales price on the exchange on which such securities are primarily traded (closing values), or, lacking any sales, at the mean between the bid and ask prices; securities traded in the over-the-counter market are valued at the last sales price that day, or, if there are no sales that day, at the mean between the bid and ask prices. In addition, securities that are primarily traded on foreign exchanges are generally valued at the preceding closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the current exchange rate. Securities may be fair valued pursuant to procedures approved by the Funds' Board of Trustees when approved pricing services do not provide a value for a security, a furnished price appears manifestly incorrect or events occur prior to the close of the New York Stock Exchange that materially affect the furnished price. Other investment companies are valued at their respective net asset values as determined by those funds, in 146 Laudus Trust Annual Report Financial Statements--Notes to Financial Statements as of 3/31/07 continued accordance with the Investment Company Act of 1940 for a given day. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Changes in holdings of portfolio securities are reflected no later than on the first business day following the trade date. However, for financial reporting purposes, portfolio security transactions are reported on trade date. Net realized gains or losses from sales of securities are determined on the specific identification cost method. Interest income and expenses are recognized on the accrual basis. Dividend income, less foreign taxes withheld, (if any) and dividend expenses are recorded on the ex-dividend date. Interest income is recorded as earned. FOREIGN CURRENCY TRANSACTIONS The accounting records of the Funds are maintained in U.S. dollars. All monetary items denominated in foreign currencies are translated to U.S. dollars based upon the prevailing exchange rate at the close of each business day. Net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. Further, the effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included with the net realized gain or loss and unrealized appreciation or depreciation on investments. FORWARD FOREIGN CURRENCY CONTRACTS Forward foreign currency contracts are valued at the daily exchange rate of the underlying currency. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized appreciation or depreciation until the contractual settlement date. Gains or losses from the purchase or sale of forward foreign currency contracts are recorded as realized on the settlement date. FOREIGN SECURITIES The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/Short Equity Fund pursue their respective objectives by investing in foreign securities. Investments in securities of foreign issuers involve certain risks that are less significant for investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, and changes in currency exchange rates or exchange control regulations (including currency blockage). The Funds may be unable to obtain and enforce judgments against foreign entities, and issuers of foreign securities are subject to different, and often less comprehensive, accounting, reporting and disclosure requirements than domestic issuers. Also, the securities of some foreign companies may be less liquid and at times more volatile than securities of comparable U.S. companies. REAL ESTATE INVESTMENT TRUSTS Several Funds may own shares of real estate investment trusts ("REITs") which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT. REPURCHASE AGREEMENTS In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that the security will be sold back in the future. The date, price and other conditions are all specified when the agreement is created. The Funds' repurchase agreements are currently fully collateralized by U.S. Government Securities. All collateral is held by the Funds' Custodian (or, with tri-party agreements, the agent's bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement. SHORT SALES The Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund and Laudus Rosenberg Value Long/Short Equity Fund are authorized to engage in short sales. Short sales are transactions in which a Fund sells a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to Laudus Trust Annual Report 147 Financial Statements--Notes to Financial Statements as of 3/31/07 continued deliver to the buyer upon the short sale; the Fund is then obligated to replace the security borrowed by purchasing the security at current market value sometime in the future. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the price of the security declines between those dates. The potential for losses associated with short positions is much greater than the original value of the securities sold short and may exceed the market value of securities sold short recorded in the Statement of Assets and Liabilities. Until the Fund replaces the borrowed security, the Fund will maintain a segregated account at the Custodian Bank with cash, U.S. Government Securities and/or securities held long by the portfolio to sufficiently cover its short position on a daily basis. The collateral for the securities sold short includes the Deposits with Broker and Custodian Bank as shown in the Statement of Assets and Liabilities and the securities held long as shown in the Statement of Portfolio Investments. Interest accrued or dividends paid on Securities Sold Short are recorded as an expense on the Fund's records. SECURITIES LENDING Under the Securities Lending Program, securities held by the Laudus Rosenberg U.S. Large Capitalization Growth Fund, the Laudus Rosenberg U.S. Discovery Fund, the Laudus Rosenberg U.S. Small Capitalization Fund and the Laudus Rosenberg International Small Capitalization Fund are loaned by State Street Corporation, as agent, to certain brokers (the "Borrowers"). The Borrowers provide cash or U.S. Government securities as collateral against loans in an amount at least equal to 100% of the market value of the loaned securities. The cash collateral of securities loaned is invested in high quality, short-term investments such as money market funds and U.S. government securities. The investments of collateral are marked-to-market daily and the value of the collateral must be at least 100% of the market value of the loan securities each day. At March 31, 2007, the following Funds had collateral and loans outstanding of:
Value of Value of Loaned Collateral Securities - ------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Growth Fund.... $ 6,243,025 $ 6,102,606 Laudus Rosenberg U.S. Discovery Fund.......................... 72,805,635 70,971,484 Laudus Rosenberg U.S. Small Capitalization Fund........... 90,803,224 88,385,432 Laudus Rosenberg International Small Capitalization Fund..... 146,492,602 139,234,977
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION Expenses directly attributable to a Fund are charged to that Fund; expenses not directly attributable to a Fund are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. Expenses specific to a class are charged to that class. Expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets or another reasonable basis. The investment income and expenses of the Fund (other than class specific expenses charged to a class) and realized and unrealized gains and losses on investments of the Fund are allocated to each class of shares based upon relative net assets on the date income is earned, or expenses and realized/unrealized gains and losses are incurred. DISTRIBUTIONS Distributions to shareholders are recorded on the ex-dividend date. Distributions are made annually on a tax basis, which may differ from distribution amounts determined under accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for foreign currency transactions, REITs, and wash sales for book and tax purposes. FEDERAL INCOME TAXES It is the Funds' policy to comply with the requirements of the Internal Revenue Code under Subchapter M, applicable to regulated investments companies, and to distribute substantially all of its taxable income, including any net realized gain on investments, to its shareholders. Therefore, no provisions are made for federal income taxes. 148 Laudus Trust Annual Report Financial Statements--Notes to Financial Statements as of 3/31/07 continued CUSTODY CREDIT Each fund has an arrangement with its custodian bank under which the fund receives a credit for its uninvested cash balance to offset its custody fees and accounting fees. The credit amounts are disclosed in the Statement of Operations as a reduction to the Funds' total expenses. NEW ACCOUNTING STANDARDS Financial Accounting Standards Board Interpretation (FIN) No. 48 -- Accounting for Uncertainty in Income Taxes -- an Interpretation of SFAS No. 109, was issued in July 2006 and is effective for fiscal years beginning after December 15, 2006. A Fund with a fiscal year ending March 31 will implement FIN 48 no later than September 28, 2007, and it will apply to all open tax years. This Interpretation provides new requirements for the recognition, measurement, and disclosure in the financial statements of a tax position taken or expected to be taken in a tax return when there is uncertainty about whether that tax position will ultimately be sustained. We have not yet completed our evaluation of the impact, if any, of adopting FIN 48 on the Funds' financial statements. In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of SFAS No. 157 will have on the Funds' financial statement disclosures. 3. MANAGEMENT, ADMINISTRATION, FUND ACCOUNTING, DISTRIBUTION AND SHAREHOLDER SERVICE AGREEMENTS. The Trust's Board of Trustees oversees the general conduct of the Trust and the Funds. Charles Schwab Investment Management, Inc. ("CSIM" or the "Manager") is the investment adviser of the Funds and manages the Funds' business, subject to the supervision of the Board of Trustees. AXA Rosenberg Investment Management LLC ("AXA Rosenberg"), the Funds' sub-adviser, provides day-to-day portfolio management services to the Funds, subject to the supervision of CSIM. The Funds pay CSIM an advisory fee for these services on a monthly basis. CSIM -- and not the Funds -- pays a portion of the advisory fees it receives to AXA Rosenberg in return for its services. The table below sets forth the advisory fee rates payable to CSIM by each Fund.
Agreement Rate* - ------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund........... 1st $1 billion-0.75% $1 billion to $2 billion-0.70% Over $2 billion-0.675% Laudus Rosenberg U.S. Large Capitalization Growth Fund.... 1st $1 billion-0.75% $1 billion to $2 billion-0.70% Over $2 billion-0.675% Laudus Rosenberg U.S. Large Capitalization Value Fund..... 1st $1 billion-0.75% $1 billion to $2 billion-0.70% Over $2 billion-0.675% Laudus Rosenberg U.S. Discovery Fund.......................... 1st $1 billion-0.90% Over $1 billion-0.85% Laudus Rosenberg U.S. Small Capitalization Fund........... 0.90% Laudus Rosenberg International Equity Fund................... 1st $1 billion-0.85% $1 billion to $2 billion-0.80% Over $2 billion-0.775% Laudus Rosenberg International Discovery Fund................ 1st $1 billion-1.00% Over $1 billion-0.95% Laudus Rosenberg International Small Capitalization Fund..... 1st $500 million-1.00% Over $500 million-0.95% Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund................... 1st $500 million-1.00% Over $500 million-0.95% Laudus Rosenberg Global Long/ Short Equity Fund............. 1st $500 million-1.50% Over $500 million-1.45% Laudus Rosenberg Value Long/ Short Equity Fund............. 1st $500 million-1.50% Over $500 million-1.45%
* The advisory fee payable to CSIM varies based on fund assets. The Funds may, from time to time, execute portfolio trades with affiliated brokers/dealers. For the period ended March 31, 2007, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers. CSIM has contractually agreed, until at least July 30, 2009, to waive its management fee and bear certain expenses and fees of each Fund. As such, CSIM further Laudus Trust Annual Report 149 Financial Statements--Notes to Financial Statements as of 3/31/07 continued agrees to reimburse the Funds to limit the annual expenses, exclusive of nonrecurring account fees, fees on securities transactions such as exchange fees, dividends and interest on securities sold short, service fees, interest (overdraft charges), taxes brokerage commissions, other expenditures which are capitalized in accordance with generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Fund's business as follows:
Institutional Investor Shares Shares - --------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. 0.99% 1.29% Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 0.99% 1.29% Laudus Rosenberg U.S. Large Capitalization Value Fund....... 0.99% 1.29% Laudus Rosenberg U.S. Discovery Fund............................ 1.14% 1.44% Laudus Rosenberg U.S. Small Capitalization Fund**........... 1.14% 1.44% Laudus Rosenberg International Equity Fund..................... 1.34% 1.64% Laudus Rosenberg International Discovery Fund.................. 1.34% 1.65% Laudus Rosenberg International Small Capitalization Fund....... 1.49% 1.79% Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................ 1.24% 1.54% Laudus Rosenberg Global Long/ Short Equity Fund............... 1.99% 2.29% Laudus Rosenberg Value Long/Short Equity Fund..................... 1.74% 2.04%
** There is no Expense Limit for Adviser Shares of the Laudus Rosenberg U.S. Small Capitalization Fund. Any amounts waived or reimbursed in a particular fiscal year will be subject to repayment through the next two fiscal years, to the extent that the repayment will not cause the Fund's net expenses to exceed the current limit (as stated in CSIM's contractual undertaking) during the respective year. As of March 31, 2007, the balance of recoupable expenses is as follows:
Expires Expires 3/31/08 3/31/09 - ------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund................... $ 70,081 $ 7,039 Laudus Rosenberg U.S. Large Capitalization Growth Fund............ 76,630 36,418 Laudus Rosenberg U.S. Large Capitalization Value Fund............. 105,744 103,539 Laudus Rosenberg U.S. Discovery Fund.... 2,314 26,377 Laudus Rosenberg U.S. Small Capitalization Fund................... -- -- Laudus Rosenberg International Equity Fund.................................. 197,117 31,150 Laudus Rosenberg International Discovery Fund.................................. -- 167,471 Laudus Rosenberg International Small Capitalization Fund................... -- -- Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund.................................. 70,537 115,585 Laudus Rosenberg Global Long/Short Equity Fund........................... 71,341 80,685 Laudus Rosenberg Value Long/Short Equity Fund.................................. 3,296 2,516
Effective October 1, 2005, State Street Bank & Trust Company serves as the Trust's administrator and assisted the Trust in all aspects of its administration and operation. Prior to October 1, 2005, BISYS Fund Services Ohio, Inc. ("BISYS") performed these services. Effective October 1, 2005, State Street Bank & Trust Company also serves as the Trust's fund accountant. Prior to October 1, 2005, BISYS performed these services. Effective October 10, 2005, Boston Financial Data Services, Inc. performs transfer agent services. Prior to October 10, 2005, BISYS performed these services. The Trust has a Distribution and Shareholder Service Plan with respect to its Investor Shares pursuant to Rule 12b-1 under the 1940 Act. The Investor Shares of the Fund are sold on a continuous basis by the Trust's Distributor. Effective October 1, 2005, ALPS Distributors, Inc. serves as the Distributor. Prior to October 1, 2005, Laudus Distributor, Inc. served as the Distributor. Under the Distribution and Shareholder Services Plan, the Funds pay distribution and shareholder servicing fees in connection with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the 150 Laudus Trust Annual Report Financial Statements--Notes to Financial Statements as of 3/31/07 continued respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to pay up to 0.15% of its average daily net assets attributable to Investor Shares for sub-transfer agent and sub- accounting services in connection with such shares. Various service organizations act as servicing agents of the Adviser Shares of the Laudus Rosenberg U.S. Small Capitalization Fund. Such shares are subject to an annual Service Fee of up to 0.25% of the average daily net assets attributable to such shares in accordance with a Service Plan adopted by the Trust. In addition, the Trustees have authorized the Fund to pay up to 0.05% of its average daily net assets attributable to Adviser Shares for the transfer and sub-accounting services in connection with such shares. The Board of Trustees may include people who are officers and/or directors of other fund families affiliated to the investment adviser. Federal securities law limits the percentage of the "interested persons" who may serve on a trust's board, and the Laudus Funds are in compliance with these limitations. The Funds did not pay any of the interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in each Fund's Statement of Operations. In addition, a retirement plan has been instituted for all of the Independent Trustees of the Trust. Under the terms of the Retirement Plan, upon retirement or other termination from service from the Trust (other than termination for cause), a retiring Independent Trustee who has served as Independent Trustee for at least five years shall be paid a lump sum cash payment (the "Retirement Payment"). The Retirement Payment shall be equal to $10,000 for each year that the Trustee has served as an Independent Trustee of the Trust, including years of service prior to the adoption of the Retirement Plan. However, beginning April 1, 2005, each Independent Trustee is permitted to make a one-time election to have the $10,000 attributable to service for the coming year adjusted up or down at the end of each subsequent year based on the unweighted average performance of Institutional Shares of each Fund of the Trust. Each Independent Trustee also was given the opportunity to make a one-time election to have previously accrued benefits fluctuate beginning April 1, 2005, based on performance of the Funds as described in the previous sentence. As a result, the amount of the Retirement Payment payable to any Independent Trustee may increase or decrease based upon performance of the Funds. The portion of the total Retirement Payment owed to an Independent Trustee upon his or her retirement that is payable by any Fund will be determined based on the relative net assets of the Funds of the Trust. The Trust did not pay any pension or retirement benefits for its Trustees. At a regular board meeting held on September 29, 2006, the Trustees voted to close the Retirement Plan to new participants, including the Independent Trustees first elected by shareholder vote on June 26, 2006 and to freeze the account balance of each participant who was a participant prior to June 26, 2006 (a "Current Participant"). However, each Current Participant shall receive a one-half credit under the Retirement Plan for service during the plan year ending March 31, 2007 and the previously accrued benefits for which an Independent Trustee had previously elected to have adjusted for performance of the Funds would continue to be adjusted for performance as provided under the Retirement Plan. All other terms of the Retirement Plan, including without limitation provisions relating to vesting and payment upon termination of service, remain in effect. 4. REDEMPTION FEE. For the Funds, certain shares purchased that were redeemed or exchanged in less than 30 days, are assessed a fee of 2% of the current net asset value of the shares. The fee, which is applied to shares redeemed or exchanged in the order in which they are purchased, is retained by the Fund and is intended to limit short-term trading in the Funds, or to the extent short-term trading persists, to impose the costs of that activity on the shareholders who engage in it. Such amounts are net of the value of shares redeemed on the Statement of Laudus Trust Annual Report 151 Financial Statements--Notes to Financial Statements as of 3/31/07 continued Changes in Net Assets. For the period ended March 31, 2007, redemption fees assessed were as follows:
Redemption Fees - ------------------------------------------------------------ Laudus Rosenberg U.S. Large Capitalization Fund......................................... $ 2,002 Laudus Rosenberg U.S. Large Capitalization Growth Fund.................................. 1,118 Laudus Rosenberg U.S. Large Capitalization Value Fund................................... 358 Laudus Rosenberg U.S. Discovery Fund........... 60,262 Laudus Rosenberg U.S. Small Capitalization Fund......................................... 30,427 Laudus Rosenberg International Equity Fund..... 20,146 Laudus Rosenberg International Discovery Fund......................................... 20,436 Laudus Rosenberg International Small Capitalization Fund.......................... 102,195 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund....................... 8,813 Laudus Rosenberg Global Long/Short Equity Fund......................................... 1,500 Laudus Rosenberg Value Long/Short Equity Fund......................................... 36,207
5. SECURITY PURCHASES AND SALES. For the period ended March 31, 2007, purchases and sales of securities (excluding short-term securities) were as follows:
Purchases Sales - -------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund........ $ 166,713,030 $ 135,564,031 Laudus Rosenberg U.S. Large Capitalization Growth Fund....................... 69,507,024 41,293,300 Laudus Rosenberg U.S. Large Capitalization Value Fund....................... 7,872,004 8,788,390 Laudus Rosenberg U.S. Discovery Fund............. 799,150,566 863,399,111 Laudus Rosenberg U.S. Small Capitalization Fund........ 864,087,665 1,136,902,326 Laudus Rosenberg International Equity Fund....................... 132,786,001 62,417,269 Laudus Rosenberg International Discovery Fund....................... 115,105,472 56,702,618 Laudus Rosenberg International Small Capitalization Fund........ 1,604,016,672 1,459,986,676 Laudus Rosenberg U.S. Large/ Mid Capitalization Long/Short Equity Fund..... 71,898,196 44,154,762 Laudus Rosenberg Global Long/ Short Equity Fund.......... 120,045,201 71,599,183 Laudus Rosenberg Value Long/ Short Equity Fund.......... 735,865,426 377,164,377
6. LINE OF CREDIT The custodian has established a loan agreement for a maximum amount of 10% of total net assets for the Laudus Rosenberg Value Long/Short Equity Fund for temporary purposes. In addition, the Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund had access to an uncommitted line of credit up to a maximum of $100,000,000, as established by the Funds' custodian. Interest is calculated based on the market rates at the time of borrowing. There were no borrowings on the line of credit for the period ended March 31, 2007. 152 Laudus Trust Annual Report Financial Statements--Notes to Financial Statements as of 3/31/07 continued 7. FEDERAL INCOME TAXES. RECLASSIFICATIONS Permanent book and tax basis differences may result in reclassifications to capital accounts and other accounts as required. Such adjustments have no impact on net assets or the results of operations. As of March 31, 2007, the funds made the following reclassifications:
Accumulated Net Realized Gains/(Losses) on Accumulated Investments Net Investment and Securities Income/(Loss) Sold Short Paid In Capital - --------------------------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. $ -- $ -- $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund...... -- -- -- Laudus Rosenberg U.S. Large Capitalization Value Fund....... -- -- -- Laudus Rosenberg U.S. Discovery Fund........................ 446,139 (446,139) -- Laudus Rosenberg U.S. Small Capitalization Fund............. 28,072 -- (28,072) Laudus Rosenberg International Equity Fund.................. 131,228 357,161 (488,389) Laudus Rosenberg International Discovery Fund............... 196,578 (196,578) -- Laudus Rosenberg International Small Capitalization Fund.... 13,303,038 (13,303,038) -- Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... -- -- -- Laudus Rosenberg Global Long/Short Equity Fund.............. 772,070 (772,070) -- Laudus Rosenberg Value Long/Short Equity Fund............... -- -- --
The tax character of distributions paid during the fiscal year ended March 31, 2007 was as follows:
Ordinary Long-Term Total Income Capital Gains Distributions Paid - -------------------------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. $ 1,126,178 $ 2,949,474 $ 4,075,652 Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 135,787 -- 135,787 Laudus Rosenberg U.S. Large Capitalization Value Fund....... 318,229 138,325 456,554 Laudus Rosenberg U.S. Discovery Fund........................ 606,878 23,594,419 24,201,297 Laudus Rosenberg U.S. Small Capitalization Fund............. -- 134,761,584 134,761,584 Laudus Rosenberg International Equity Fund.................. 1,036,481 2,387,301 3,423,782 Laudus Rosenberg International Discovery Fund............... 456,108 -- 456,108 Laudus Rosenberg International Small Capitalization Fund.... 94,586,998 84,145,857 178,732,855 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... 1,011,251 -- 1,011,251 Laudus Rosenberg Global Long/Short Equity Fund.............. 592,033 -- 592,033 Laudus Rosenberg Value Long/Short Equity Fund............... 7,134,576 -- 7,134,576
Laudus Trust Annual Report 153 Financial Statements--Notes to Financial Statements as of 3/31/07 continued The tax character of distributions paid during the fiscal year ended March 31, 2006 was as follows:
Ordinary Long-Term Total Taxable Return of Total Income Capital Gains Distributions Capital Distributions Paid - ---------------------------------------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund....................................... $ 794,781 $ 3,748,563 $ 4,543,344 $ -- $ 4,543,344 Laudus Rosenberg U.S. Large Capitalization Growth Fund................................ 23,348 -- 23,348 -- 23,348 Laudus Rosenberg U.S. Large Capitalization Value Fund................................. 44,078 322 44,400 -- 44,400 Laudus Rosenberg U.S. Discovery Fund......... -- 7,254,221 7,254,221 7,273,884 14,528,105 Laudus Rosenberg U.S. Small Capitalization Fund....................................... 2,130,940 155,393,262 157,524,202 -- 157,524,202 Laudus Rosenberg International Equity Fund... 313,720 -- 313,720 -- 313,720 Laudus Rosenberg International Discovery Fund....................................... -- -- -- -- -- Laudus Rosenberg International Small Capitalization Fund........................ 27,375,525 27,702,852 55,078,377 -- 55,078,377 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund..................... 386,331 -- 386,331 -- 386,331 Laudus Rosenberg Global Long/Short Equity Fund....................................... 270,469 -- 270,469 -- 270,469 Laudus Rosenberg Value Long/Short Equity Fund....................................... 1,939,980 -- 1,939,980 -- 1,939,980
As of March 31, 2007, the following is the net capital loss carry forward, which is available to offset future realized gains.
Expires ---------------------------------------------------------------------------------------------- 2008 2009 2010 2011 2012 2013 2014 2015 - ----------------------------------------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund........................ -- -- 148,863 451,611 -- 193,612 -- 883,199 Laudus Rosenberg U.S. Large Capitalization Value Fund... -- -- -- -- -- -- -- -- Laudus Rosenberg U.S. Discovery Fund.............. -- -- -- -- -- -- -- -- Laudus Rosenberg U.S. Small Capitalization Fund......... -- -- -- -- -- -- -- -- Laudus Rosenberg International Equity Fund... -- -- -- -- -- -- -- -- Laudus Rosenberg International Discovery Fund........................ -- -- -- -- -- -- -- -- Laudus Rosenberg International Small Capitalization Fund......... -- -- -- -- -- -- -- -- Laudus Rosenberg U.S. Large/ Mid Capitalization Long/Short Equity Fund...... -- -- -- -- 1,387,824 385,118 -- -- Laudus Rosenberg Global Long/Short Equity Fund...... -- -- -- -- 430,603 177,288 -- -- Laudus Rosenberg Value Long/ Short Equity Fund........... 26,836,920 11,040,106 -- -- 20,890,232 -- -- 13,099,020 Expires ----------- Total - ----------------------------- Laudus Rosenberg U.S. Large Capitalization Fund......... $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund........................ 1,677,285 Laudus Rosenberg U.S. Large Capitalization Value Fund... -- Laudus Rosenberg U.S. Discovery Fund.............. -- Laudus Rosenberg U.S. Small Capitalization Fund......... -- Laudus Rosenberg International Equity Fund... -- Laudus Rosenberg International Discovery Fund........................ -- Laudus Rosenberg International Small Capitalization Fund......... -- Laudus Rosenberg U.S. Large/ Mid Capitalization Long/Short Equity Fund...... 1,772,942 Laudus Rosenberg Global Long/Short Equity Fund...... 607,891 Laudus Rosenberg Value Long/ Short Equity Fund........... 71,866,278
154 Laudus Trust Annual Report Financial Statements--Notes to Financial Statements as of 3/31/07 continued Net losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. For the year ended March 31, 2007, the Funds deferred to April 1, 2007 post October losses of:
Capital Losses Currency Losses - ---------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. $ -- $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund...... -- -- Laudus Rosenberg U.S. Large Capitalization Value Fund....... -- -- Laudus Rosenberg U.S. Discovery Fund........................ -- -- Laudus Rosenberg U.S. Small Capitalization Fund............. -- -- Laudus Rosenberg International Equity Fund.................. -- -- Laudus Rosenberg International Discovery Fund............... -- -- Laudus Rosenberg International Small Capitalization Fund.... -- -- Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... -- -- Laudus Rosenberg Global Long/Short Equity Fund.............. -- -- Laudus Rosenberg Value Long/Short Equity Fund............... 12,782,282 --
The funds utilized capital loss carryforward during the year end March 31, 2007 in the amount of:
Capital Losses Utilized - ----------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund...... -- Laudus Rosenberg U.S. Large Capitalization Value Fund....... -- Laudus Rosenberg U.S. Discovery Fund........................ -- Laudus Rosenberg U.S. Small Capitalization Fund............. -- Laudus Rosenberg International Equity Fund.................. 7,313 Laudus Rosenberg International Discovery Fund............... -- Laudus Rosenberg International Small Capitalization Fund.... -- Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... 514,914 Laudus Rosenberg Global Long/Short Equity Fund.............. 182,043 Laudus Rosenberg Value Long/Short Equity Fund............... --
As of March 31, 2007, the components of distributable earnings/accumulated(losses) on a tax basis were as follows:
Undistributed Undistributed Long-Term Accumulated Net Ordinary Capital Capital and Unrealized Income Gains Other Losses Appreciation - ------------------------------------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. $ 2,773,625 $ 3,442,906 $ (4,727) $ 11,894,948 Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 62,663 -- (1,678,522) 7,628,463 Laudus Rosenberg U.S. Large Capitalization Value Fund....... 136,488 421,928 (157) 984,236 Laudus Rosenberg U.S. Discovery Fund........................ -- 19,075,466 734 166,951,847 Laudus Rosenberg U.S. Small Capitalization Fund............. 42,653 55,524,544 (68,868) 242,238,845 Laudus Rosenberg International Equity Fund.................. 3,985,898 1,661,491 (3,214) 19,009,785 Laudus Rosenberg International Discovery Fund............... 3,207,951 -- (395) 7,834,432 Laudus Rosenberg International Small Capitalization Fund.... 66,689,898 61,723,853 (69,897) 328,724,421 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... 155,581 -- (1,775,258) 2,511,623 Laudus Rosenberg Global Long/Short Equity Fund.............. 198,506 -- (610,054) 1,967,082 Laudus Rosenberg Value Long/Short Equity Fund............... 1,227,321 -- (84,663,237) 55,381,122
Laudus Trust Annual Report 155 Financial Statements--Notes to Financial Statements as of 3/31/07 continued The difference between book basis and tax basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/(losses) on certain derivative instruments, and unrealized gains/(losses) on investments in passive foreign investment companies. OTHER TAX INFORMATION (UNAUDITED) For corporate shareholders, the following percentage of the total ordinary income dividends paid during the fiscal year ended March 31, 2007, qualify for the corporate dividends received deduction for the following Funds:
Dividends Received Deduction - -------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. 58.13% Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 100.00% Laudus Rosenberg U.S. Large Capitalization Value Fund....... 48.31% Laudus Rosenberg U.S. Discovery Fund........................ 100.00% Laudus Rosenberg U.S. Small Capitalization Fund............. --% Laudus Rosenberg International Equity Fund.................. --% Laudus Rosenberg International Discovery Fund............... --% Laudus Rosenberg International Small Capitalization Fund.... --% Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... 42.20% Laudus Rosenberg Global Long/Short Equity Fund.............. 19.52% Laudus Rosenberg Value Long/Short Equity Fund............... 25.49%
The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/Short Equity Fund may elect to pass on the benefits of the foreign tax credit $176,045, $82,881 $2,702,844 and $31,481 respectively, to its shareholders for the year ended March 31, 2007. For the fiscal year March 31, 2007, certain dividends paid by the Funds may be subject to maximum tax rate of 15% as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2007 Form 1099-DIV. For the year ended March 31, 2007, the Funds designate the following amounts of qualified dividend income:
Qualified Dividend Income - ----------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund............. $ 1,635,997 Laudus Rosenberg U.S. Large Capitalization Growth Fund...... 167,858 Laudus Rosenberg U.S. Large Capitalization Value Fund....... 157,566 Laudus Rosenberg U.S. Discovery Fund........................ 606,878 Laudus Rosenberg U.S. Small Capitalization Fund............. -- Laudus Rosenberg International Equity Fund.................. 2,437,829 Laudus Rosenberg International Discovery Fund............... 852,775 Laudus Rosenberg International Small Capitalization Fund.... 33,175,895 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund............................................... 386,642 Laudus Rosenberg Global Long/Short Equity Fund.............. 467,677 Laudus Rosenberg Value Long/Short Equity Fund............... 1,899,088
156 Laudus Trust Annual Report Report of Independent Registered Public Accounting Firm To the Board of Trustees and Shareholders of Laudus Trust In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments and schedules of securities sold short, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Small Capitalization Fund, Laudus Rosenberg International Discovery Fund, Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund, and Laudus Rosenberg Value Long/ Short Equity Fund (the "Funds") at March 31, 2007, the results of each of their operations for the period then ended, and the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP San Francisco, California May 18, 2007 Laudus Trust Annual Report 157 Trustees and Officers The tables below provide information about the trustees and officers for the Laudus Trust, which includes the funds covered in this report. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust, Laudus Variable Insurance Trust, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. As of March 31, 2007, the Fund Complex included 95 funds. At a meeting of the Board held on September 28-29, 2006, the Trustees voted to adopt a retirement policy for all independent trustees that requires an independent trustee to retire no later than December 31st of the year in which he or she reaches age seventy-two. The address for all trustees and officers is 101 Montgomery Street, San Francisco, CA 94104. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-866-452-8387.
INDEPENDENT TRUSTEES - --------------------------------------------------------------------------------------------------------------------- Name, Number of Year of Birth, Portfolios in (Term of Office and Principal Occupation(s) Fund Complex Length of Time Served) During the Past Five Years Overseen Other Directorships - --------------------------------------------------------------------------------------------------------------------- Mariann Byerwalter Chairman of JDN Corporate Advisory 95 Board 1 - Director, Redwood Trust, 1960 LLC. From 1996 to 2001, Vice Inc. Board 2 - Director, PMI Group, (Trustee of Laudus Trust President for Business Affairs and Inc. since 2004) Chief Financial Officer of Stanford University, and in 2001, Special Advisor to the President of Stanford University. - --------------------------------------------------------------------------------------------------------------------- William A. Hasler Retired. Dean Emeritus of the Haas 95 Board 1 - Director, Aphton 1941 School of Business, University of Corporation. Board 2 - Director, (Trustee of Laudus Trust California, Berkeley. Until February Mission West Properties. Board since 2004) 2004, Co-Chief Executive Officer, 3 - Director, TOUSA. Board Aphton Corp. (bio-pharmaceuticals). 4 - Director, Harris-Stratex Networks. Board 5 - Director, Genitope Corp. Board 6 - Director, Solectron Corporation where he is also Non-Executive Chairman. Board 7 - Director, Ditech Communications Corporation. - --------------------------------------------------------------------------------------------------------------------- Nils Hakansson Sylvan C. Coleman Professor of 38 None. 1937 Finance and Accounting Emeritus, Haas (Trustee of Laudus Trust School of Business, University of since June 1998) California Berkeley, since 2003. From July 1977 to January 2003, Sylvan C. Coleman Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley (higher education). - --------------------------------------------------------------------------------------------------------------------- Rodman L. Drake Co-Founder of Baringo Capital LLC 38 Board 1 - Director and Chairman, 1943 (since 2002); President, Continuation Hyperion Total Return Fund, Inc. and (Trustee of Laudus Trust Investments Group, Inc. (from 1997 to Hyperion Strategic Mortgage Income since June 2006) 2001). Fund Inc. Board 2 - Director, Jackson Hewitt Tax Service Inc. Board 3 - Director, Student Loan Corporation. Board 4 - Celgene Corp. - --------------------------------------------------------------------------------------------------------------------- Morrill Melton Hall, Jr. Chairman (since 1984) and Chief 38 None. 1944 Executive Officer (since 1991), (Trustee of Laudus Trust Comprehensive Health Services, Inc. since June 2006) (health care management and administration). - ---------------------------------------------------------------------------------------------------------------------
158 Laudus Trust Annual Report Trustees and Officers continued
INDEPENDENT TRUSTEES - --------------------------------------------------------------------------------------------------------------------- Name, Number of Year of Birth, Portfolios in (Term of Office and Principal Occupation(s) Fund Complex Length of Time Served) During the Past Five Years Overseen Other Directorships - --------------------------------------------------------------------------------------------------------------------- Jonathan Piel Cable television producer and website 38 None. 1938 designer; Editor, Scientific American (Trustee of Laudus Trust (1984-1986), and Vice President, since June 2006) Scientific American Inc., (1986-1994); Director, National Institute of Social Sciences; Member, Advisory Board, The Stone Age Institute, Bloomington, Indiana. - --------------------------------------------------------------------------------------------------------------------- John D. Collins Retired. Consultant, KPMG, LLP (from 38 Board 1 - Director, Mrs. Fields 1938 July 1999 to June 2000); Partner, Famous Brands LLC. (Trustee of Laudus Trust KPMG, LLP (from March 1962 to June since June 2006) 1999).
Laudus Trust Annual Report 159 Trustees and Officers continued
INTERESTED TRUSTEES - --------------------------------------------------------------------------------------------------------------------- Name, Number of Year of Birth, Portfolios in (Term of Office and Principal Occupation(s) Fund Complex Length of Time Served) During the Past Five Years Overseen Other Directorships - --------------------------------------------------------------------------------------------------------------------- Randall W. Merk(1) Executive Vice President, Charles 95 None. 1954 Schwab & Co., Inc. (2002-present); (Trustee of Laudus Trust President, Schwab Financial Products, since June 2006) Charles Schwab & Co., Inc. (2002- present); Director, Charles Schwab Asset Management (Ireland) Limited; Director, Charles Schwab Bank, N.A. (since 2006). Prior to September 2002, President and Chief Investment Officer, American Century Investment Management, and Director, American Century Companies, Inc.
160 Laudus Trust Annual Report Trustees and Officers continued
OFFICERS - ------------------------------------------------------------------------------------------------------------------- Name, Year of Birth, (Term of Office and Length of Time Served)(2) Position with the Trust Principal Occupation(s) - ------------------------------------------------------------------------------------------------------------------- Evelyn Dilsaver, 1955 President & Chief President, Chief Executive Officer, and Director, Charles (Officer of Laudus Trust Executive Officer Schwab Investment Management, Inc.; Executive Vice since 09/05) President, Charles Schwab & Co., Inc.; President and Chief Executive Officer, The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios; President, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; President, Mutual Fund Division, UST Advisers, Inc. From June 2003 to July 2004, Senior Vice President, Asset Management Products and Services, Charles Schwab & Co., Inc. Prior to June 2003, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, U.S. Trust, a subsidiary of The Charles Schwab Corporation. - ------------------------------------------------------------------------------------------------------------------- George Pereira, 1964 Chief Financial Officer Senior Vice President and Chief Financial Officer, Charles (Officer of Laudus Trust Schwab Investment Management, Inc.; Treasurer and Principal since 06/06) Financial Officer, The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios; Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust; Chief Financial Officer, Mutual Fund Division, UST Advisors, Inc.; Director, Charles Schwab Worldwide Funds, PLC and Charles Schwab Asset Management (Ireland) Limited. From December 1999 to November 2004, Sr. Vice President, Financial Reporting, Charles Schwab & Co., Inc. - ------------------------------------------------------------------------------------------------------------------- Jeffrey M. Mortimer, 1963 Vice President & Chief Senior Vice President and Chief Investment (Officer of Laudus Trust Investment Officer Officer - Equities, Charles Schwab Investment Management, since 06/04) Inc., and The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios. Prior to May 2004; Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc. - ------------------------------------------------------------------------------------------------------------------- Catherine MacGregor, 1964 Chief Legal Officer & Vice President, Charles Schwab & Co., Inc. and Charles (Officer of Laudus Trust Vice President Schwab Investment Management, Inc.; since 2006, Chief since 12/05) Counsel, Laudus Trust and Laudus Variable Insurance Trust; Vice President, The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios; until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP. - ------------------------------------------------------------------------------------------------------------------- Randall Fillmore, 1960 Chief Compliance Senior Vice President and Chief Compliance Officer, Charles (Officer of Laudus Trust Officer Schwab Investment Management, Inc; Senior Vice President, since 09/04) Charles Schwab & Co., Inc.; Chief Compliance Officer, The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios; Chief Compliance Officer, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. From 2000 to 2002, Vice President, Internal Audit, Charles Schwab & Co., Inc. - -------------------------------------------------------------------------------------------------------------------
Laudus Trust Annual Report 161 Trustees and Officers continued
OFFICERS - ------------------------------------------------------------------------------------------------------------------- Name, Year of Birth, (Term of Office and Length of Time Served)(2) Position with the Trust Principal Occupation(s) - ------------------------------------------------------------------------------------------------------------------- Daniel Kern, 1961 Vice President Vice President, Investment Operations, Charles Schwab (Officer of Laudus Trust Investment Management, Inc.; Assistant Treasurer, The since 03/04) Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios. Until September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation. Prior to January 2003, Managing Director and Principal, Montgomery Asset Management. - ------------------------------------------------------------------------------------------------------------------- Bill Thomas, 1962 Vice President Senior Vice President, Distribution, Charles Schwab (Officer of Laudus Trust Investment Management, Inc. Until May 2000, Managing since 06/04) Director, Scudder Kemper Investments - ------------------------------------------------------------------------------------------------------------------- Michael Haydel, 1972 Vice President & AML Vice President, Asset Management Client Services, Charles (Officer of Laudus Trust Officer Schwab & Co., Inc. Until March 2004, Director, Charles since 06/05) Schwab & Co., Inc. - ------------------------------------------------------------------------------------------------------------------- Aleda Anderson, 1966 Vice President Vice President, Distribution Services, Charles Schwab (Officer of Laudus Trust Investment Management, Inc.; until December 2005, Director, since 06/06) Asset Management Strategic Alliances, Charles Schwab & Co., Inc.; until 2001, Research Associate, Office of Corporate Counsel, Charles Schwab & Co., Inc. - ------------------------------------------------------------------------------------------------------------------- Cathy Sabo, 1964 Vice President Vice President, Compliance, Charles Schwab Investment, (Officer of Laudus Trust Management, Inc.; Vice President, Schwab Funds; until since 12/05) September 2004, Vice President, Client, Sales & Services Controls, Charles Schwab & Co., Inc.
(1) In addition to his employment with the investment adviser or an affiliate, Mr. Merk owns stock of The Charles Schwab Corporation. Mr. Merk is Interested Trustees because he is an employee of Schwab and U.S. Trust, respectively. (2) The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each other officer serves at the pleasure of the Board. 162 Laudus Trust Annual Report Definitions, Terms and Other Information 90 DAY T-BILL is a short-term discounted, government debt instrument of 90 days or less, issued in $10,000 denominations that pay its face value at maturity. The government issues Treasury bills weekly. ALPHA is a measure of a fund's risk-adjusted return. Alpha can be used to directly measure the value added or subtracted by a fund's manager. It is calculated by measuring the difference between a fund's actual returns and its expected performance given its level of market risk as measured by beta. BETA is a measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower historical risk than the market; a beta of more than one indicates higher historical risk than the market. GDP, OR GROSS DOMESTIC PRODUCT, is the market value of the goods and services produced by labor and property in the United States. THE S&P/CITIGROUP GLOBAL EX US BROAD MARKET INDEX (BMI) $2-$10 BILLION CAP RANGE is an absolute size benchmark that divides the investable region into capitalization bands of between $2 billion and $10 billion. It is a subset of the Broad Market Index (BMI), which includes companies in approximately 52 developed and emerging markets with more than $100 million of free float capitalization. THE S&P/CITIGROUP WORLD EX US EXTENDED MARKET INDEX (EMI) is a float-adjusted index which measures the performance of small companies (approximately the bottom 20% by market capitalization) in 25 developed equity markets. THE STANDARD & POOR'S 500(R) (S&P 500) INDEX is an unmanaged index measuring large-cap U.S. stock market performance, and includes a representative sample of leading companies in leading industries. THE RUSSELL 1000(R) GROWTH INDEX measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. THE RUSSELL 1000(R) VALUE INDEX measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios. THE RUSSELL 2000(R) INDEX measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, and represents approximately 8% of the total market capitalization of the Russell 3000(R) Index. THE RUSSELL 2500(TM) INDEX measures the performance of the 2,500 smallest companies in the Russell 3000(R) Index, and represents approximately 16% of the total market capitalization of the Russell 3000(R) Index. THE RUSSELL 3000(R) GROWTH INDEX measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes. THE RUSSELL 3000(R) VALUE INDEX measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. PRICE TO EARNINGS RATIO is the price of a stock divided by its historical earnings per share. PRICE TO BOOK RATIO compares the stock's market value to the value of the total assets less the total liabilities. PRICE TO CASH FLOW RATIO is the price of a stock dividend by its reported cash flow per share. RELATIVE STRENGTH is the rate that a stock falls relative to other stocks in a falling market or rises relative to other stocks in a rising market. RETURN ON EQUITY represents the amount earned on a company's common stock investment for a given period, calculated by dividing common stock equity into net income for the period after preferred stock dividends but before common stock dividends. TRADING ACTIVITY is one of several risk factors commonly used to attribute a portfolio's return relative to its benchmark. Specifically, trading activity measures a stock's trailing 12 month trading volume relative to its total shares outstanding. It measures how actively traded a stock has been in the last 12 months. Proxy Voting A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request by visiting www.laudus.com, the Securities and Exchange Commission's website at www.sec.gov, or by contacting Laudus Funds at 866.452.8387. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission's website at www.sec.gov. Quarterly Disclosure of Portfolio Holdings The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The information filed on a fund's most recent Form N-Q is also available at www.laudus.com. Laudus Trust Annual Report 163 (This page intentionally left blank) (This page intentionally left blank) (This page intentionally left blank) (LAUDUS FUNDS LOGO) COMMAND PERFORMANCE(TM) MANAGER Charles Schwab Investment Management, Inc. 101 Montgomery Street San Francisco, California 94104 SHAREHOLDER SERVICES 1.866.452.8387 Investment Professionals 1.800.447.3332 Individual Investors www.laudus.com This report is for the information of the shareholders of the Laudus Trust. Its use in connection with any offering of the Trust's shares is authorized only in case of concurrent or prior delivery of the current prospectus. REG 34765-04 ITEM 2: CODE OF ETHICS. (a) Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. (c) During the period covered by the report, no amendments were made to the provisions of this code of ethics. (d) During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. (f)(1) Registrant has filed this code of ethics as an exhibit pursuant to Item 11(a)(1) of Form N-CSR. ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT. (a) (1) Disclose that the registrant's board of directors has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)). (3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert. 3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT COMMITTEE. 3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS NILS H. HAKANSSON, WHO IS "INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR. ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Below are the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements. Audit Fees 2007: $294,785 2006: $259,290 (b) Below are the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of Registrant's financial statements and are not reported under paragraph (a) above. Audit-Related Fees For services rendered to Registrant: 2007: NONE 2006: $20,000 Nature of these services: Agreed upon services in regards to service provider conversion. In each of the last two fiscal years there were no "Audit-Related Fees" required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. (c) Below are the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Tax Fees For services rendered to Registrant: 2007: $82,845 2006: $67,980 Nature of these services: preparation and review of tax returns. In each of the last two fiscal years there were no "Tax Fees" required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. (d) Below are the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above. All Other Fees For services rendered to Registrant: 2007: $20,000 2006: $18,462 Nature of these services: non-audit services related to the requirements of Section 15(c) of the Investment Company Act of 1940, such as evaluation of the Profitability Analysis System. In each of the last two fiscal years there were no "All Other Fees" required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X. (e)(1) Registrant's audit committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. (2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant's audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not applicable. (g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant's principal accountant for services rendered to Registrant, to Registrant's investment adviser, and to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant. 2007: $169,975 2006: $106,442 Although not required to be included in the amounts disclosed under this paragraph (g) or any other paragraph of this Item 4, below are the aggregate fees billed in each of the last two fiscal years by Registrant's principal accountant for tax compliance services rendered to U.S. Trust, an entity under common control with Registrant's investment adviser that DOES NOT provide services to Registrant. 2007: $4,221,564 2006: $4,029,138 (h) During the past fiscal year, all non-audit services provided by Registrant's principal accountant to either Registrant's investment adviser or to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee's pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant's independence. ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6: SCHEDULE OF INVESTMENTS. The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form. ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8: PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11: CONTROLS AND PROCEDURES. (a) Based on their evaluation of Registrant's disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant's Chief Executive Officer, Evelyn Dilsaver and Registrant's Principal Financial Officer, George Pereira, have concluded that Registrant's disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant's officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. (b) During the second fiscal quarter of the period covered by this report, there have been no changes in Registrant's internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant's internal control over financial reporting. ITEM 12: EXHIBITS. (a)(1) Registrant's code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached. (2) Separate certifications for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached. (3) Not applicable. (b) A certification for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant ) The Laudus Trust By: /s/ Evelyn Dilsaver --------------------------------------- Evelyn Dilsaver President and Chief Executive Officer Date: May 18, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Evelyn Dilsaver ----------------------- Evelyn Dilsaver President and Chief Executive Officer Date: May 18, 2007 By: /s/ George Pereira ----------------------- George Pereira Principal Financial Officer Date: May 18, 2007 EX-99.CERT 2 f29507exv99wcert.txt EXHIBIT 99.CERT CERTIFICATIONS I, Evelyn Dilsaver, certify that: 1. I have reviewed this report on Form N-CSR of Laudus Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 18, 2007 /s/Evelyn Dilsaver ---------------------------------- Evelyn Dilsaver President and Chief Executive Officer CERTIFICATIONS I, George Pereira, certify that: 1. I have reviewed this report on Form N-CSR of Laudus Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 18, 2007 /s/George Pereira ---------------------------- George Pereira Principal Financial Officer EX-99.906CERT 3 f29507exv99w906cert.txt EXHIBIT 99.906CERT CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Annual Report for Laudus Trust ("issuer") on Form N-CSR for the period ended March 31, 2007 ("periodic report"), each of the undersigned, being the Chief Executive Officer and Principal Financial Officer, hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1) The periodic report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer for the period presented therein. /s/Evelyn Dilsaver Date: May 18, 2007 - ----------------------------------------------------- ------------------ Evelyn Dilsaver President and Chief Executive Officer /s/George Pereira Date: May 18, 2007 - ----------------------------------------------------- ------------------ George Pereira Principal Financial Officer 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. -----END PRIVACY-ENHANCED MESSAGE-----