UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05547
Laudus Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Omar Aguilar
Laudus Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrants telephone number, including area code: (415) 636-7000
Date of fiscal year end: March 31
Date of reporting period: September 30, 2023
Item 1: Report(s) to Shareholders.
2 | |
3 | |
5 | |
6 | |
13 | |
22 | |
23 | |
27 | |
30 |
Total Return for the 6 Months
Ended September 30, 2023 | |
Schwab Select Large Cap Growth Fund (Ticker Symbol:
LGILX) |
10.52% 1 |
Russell 1000® Growth Index |
9.28% |
Fund Category: Morningstar Large
Growth2 |
7.04% |
Performance Details |
pages 3-4 |
Fund and Inception Date |
6 Months |
1 Year |
5 Years |
10 Years |
Schwab Select Large Cap Growth Fund
(10/14/97)* |
10.52% |
30.81% |
8.36% |
12.21% |
Russell 1000® Growth Index |
9.28% |
27.72% |
12.42% |
14.48% |
Fund Category: Morningstar Large
Growth3 |
7.04% |
23.46% |
9.04% |
11.63% |
Fund Expense Ratio4:
0.75% |
Investment Managers |
Investment Style |
% of Net Assets |
American Century Investment Management, Inc. |
U.S. Large-Cap Growth |
59.5% |
J.P. Morgan Investment Management Inc. |
U.S. Large-Cap Growth |
39.2% |
Cash and other assets6
|
|
1.3% |
Number of Holdings |
108 |
Weighted Average Market Cap (millions) |
$832,077 |
Price/Earnings Ratio (P/E) |
34.19 |
Price/Book Ratio (P/B) |
8.43 |
Portfolio Turnover Rate |
53% 2 |
|
EXPENSE RATIO
(ANNUALIZED) 1 |
BEGINNING ACCOUNT
VALUE AT 4/1/23 |
ENDING ACCOUNT
VALUE (NET OF EXPENSES)
AT 9/30/23 |
EXPENSES PAID DURING PERIOD
4/1/23-9/30/23 2 |
Schwab Select Large Cap Growth Fund |
|
|
|
|
Actual Return |
0.74% |
$1,000.00
|
$1,105.20
|
$3.89
|
Hypothetical 5% Return |
0.74% |
$1,000.00
|
$1,021.30
|
$3.74
|
1 |
Based on the most recent six-month expense ratio.
|
2 |
Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the
period, multiplied by the 183 days in the period, and divided by the 366 days in the fiscal
year. |
|
4/1/23– 9/30/23* |
4/1/22– 3/31/23 |
4/1/21– 3/31/22 |
4/1/20– 3/31/21 |
4/1/19– 3/31/20 |
4/1/18– 3/31/19 |
Per-Share Data | ||||||
Net asset value at beginning of period |
$19.87 |
$26.64 |
$29.23 |
$19.61 |
$21.31 |
$20.47 |
Income (loss) from investment operations: |
|
|
|
|
|
|
Net investment income (loss)1
|
(0.01 ) |
0.01 |
(0.09 ) |
(0.07 ) |
(0.04 ) |
0.02 |
Net realized and unrealized gains (losses) |
2.10 |
(4.48 ) |
1.69 |
11.21 |
0.23 |
2.35 |
Total from investment operations |
2.09 |
(4.47 ) |
1.60 |
11.14 |
0.19 |
2.37 |
Less distributions: |
|
|
|
|
|
|
Distributions from net investment income |
— |
— |
— |
— |
(0.02 ) |
— |
Distributions from net realized gains |
— |
(2.30 ) |
(4.19 ) |
(1.52 ) |
(1.87 ) |
(1.53 ) |
Total distributions |
— |
(2.30 ) |
(4.19 ) |
(1.52 ) |
(1.89 ) |
(1.53 ) |
Net asset value at end of period |
$21.96 |
$19.87 |
$26.64 |
$29.23 |
$19.61 |
$21.31 |
Total return |
10.52
%2 |
(15.94 %) |
3.88 % |
56.98 % |
(0.06 %) |
12.78 % |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: |
|
|
|
|
|
|
Net operating expenses |
0.74
%3 |
0.75
%4 |
0.71 % |
0.72 % |
0.74 % |
0.75 % |
Gross operating expenses |
0.74
%3 |
0.75
%4 |
0.71 % |
0.72 % |
0.74 % |
0.75 % |
Net investment income (loss) |
(0.09
%)3 |
0.03 % |
(0.28 %) |
(0.25 %) |
(0.18 %) |
0.07 % |
Portfolio turnover rate |
53
%2 |
49 % |
50 % |
37 % |
40 % |
53 % |
Net assets, end of period (x 1,000,000) |
$1,908 |
$1,876 |
$2,926 |
$2,943 |
$1,981 |
$2,251 |
* |
Unaudited. |
1 |
Calculated based on the average shares outstanding during the period. |
2 |
Not annualized. |
3 |
Annualized. |
4 |
Ratio includes less than 0.005% of non-routine proxy expenses. |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
COMMON STOCKS 96.6% OF NET ASSETS | ||
| ||
Automobiles & Components 3.3% | ||
Tesla, Inc. * |
253,433 |
63,414,005 |
| ||
Capital Goods 4.0% | ||
Acuity Brands, Inc. |
34,753 |
5,918,783 |
Advanced Drainage Systems, Inc. |
66,787 |
7,602,364 |
Deere & Co. |
14,868 |
5,610,886 |
Donaldson Co., Inc. |
58,127 |
3,466,694 |
Eaton Corp. plc |
44,922 |
9,580,964 |
Fortive Corp. |
110,289 |
8,179,032 |
Johnson Controls International plc
|
100,474 |
5,346,221 |
Nordson Corp. |
28,582 |
6,378,645 |
Rockwell Automation, Inc. |
13,379 |
3,824,655 |
Trane Technologies plc |
31,913 |
6,475,467 |
TransDigm Group, Inc. * |
8,790 |
7,411,113 |
Westinghouse Air Brake Technologies Corp. |
46,354 |
4,926,040 |
Yaskawa Electric Corp. |
60,002 |
2,160,735 |
|
|
76,881,599 |
| ||
Commercial & Professional Services 1.2% | ||
Cintas Corp. |
8,144 |
3,917,345 |
Copart, Inc. * |
164,274 |
7,078,567 |
Paycom Software, Inc. |
46,603 |
12,082,760 |
|
|
23,078,672 |
| ||
Consumer Discretionary Distribution & Retail 8.0% |
||
Amazon.com, Inc. * |
914,741 |
116,281,876 |
AutoZone, Inc. * |
3,307 |
8,399,747 |
Lowe’s Cos., Inc. |
59,084 |
12,280,019 |
MercadoLibre, Inc. * |
9,533 |
12,086,700 |
Pool Corp. |
11,761 |
4,188,092 |
|
|
153,236,434 |
| ||
Consumer Durables & Apparel 1.9% | ||
Lululemon Athletica, Inc. * |
59,997 |
23,135,443 |
NIKE, Inc., Class B |
125,053 |
11,957,568 |
|
|
35,093,011 |
| ||
Consumer Services 3.0% | ||
Airbnb, Inc., Class A * |
23,299 |
3,196,856 |
Chipotle Mexican Grill, Inc. * |
15,866 |
29,063,815 |
Marriott International, Inc., Class A
|
49,445 |
9,718,909 |
Starbucks Corp. |
53,842 |
4,914,159 |
Wingstop, Inc. |
59,163 |
10,639,874 |
|
|
57,533,613 |
| ||
Consumer Staples Distribution & Retail 1.2% | ||
Costco Wholesale Corp. |
40,953 |
23,136,807 |
|
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Energy 1.6% | ||
Cheniere Energy, Inc. |
23,177 |
3,846,455 |
ConocoPhillips |
43,543 |
5,216,451 |
EOG Resources, Inc. |
109,068 |
13,825,460 |
Schlumberger N.V. |
131,216 |
7,649,893 |
|
|
30,538,259 |
| ||
Financial Services 6.9% | ||
Blackstone, Inc. |
53,555 |
5,737,883 |
Block, Inc. * |
50,028 |
2,214,239 |
Mastercard, Inc., Class A |
172,347 |
68,233,901 |
Morgan Stanley |
53,536 |
4,372,285 |
MSCI, Inc. |
29,578 |
15,175,880 |
PayPal Holdings, Inc. * |
16,308 |
953,366 |
Visa, Inc., Class A |
154,810 |
35,607,848 |
|
|
132,295,402 |
| ||
Food, Beverage & Tobacco 1.1% | ||
Constellation Brands, Inc., Class A
|
43,350 |
10,895,156 |
Monster Beverage Corp. * |
175,678 |
9,302,150 |
|
|
20,197,306 |
| ||
Health Care Equipment & Services 6.0% | ||
Align Technology, Inc. * |
23,935 |
7,307,834 |
DexCom, Inc. * |
131,682 |
12,285,931 |
Edwards Lifesciences Corp. * |
97,552 |
6,758,402 |
HCA Healthcare, Inc. |
29,468 |
7,248,539 |
IDEXX Laboratories, Inc. * |
12,596 |
5,507,853 |
Insulet Corp. * |
30,010 |
4,786,295 |
Intuitive Surgical, Inc. * |
87,077 |
25,451,736 |
McKesson Corp. |
24,951 |
10,849,942 |
UnitedHealth Group, Inc. |
66,825 |
33,692,497 |
|
|
113,889,029 |
| ||
Household & Personal Products 0.2% | ||
The Estee Lauder Cos., Inc., Class A
|
18,406 |
2,660,587 |
| ||
Materials 0.8% | ||
Ecolab, Inc. |
53,795 |
9,112,873 |
Freeport-McMoRan, Inc. |
77,184 |
2,878,192 |
The Sherwin-Williams Co. |
9,082 |
2,316,364 |
|
|
14,307,429 |
| ||
Media & Entertainment 11.5% | ||
Alphabet, Inc., Class A * |
704,304 |
92,165,222 |
Meta Platforms, Inc., Class A * |
282,863 |
84,918,301 |
Netflix, Inc. * |
88,881 |
33,561,466 |
Spotify Technology S.A. * |
17,096 |
2,643,725 |
The Trade Desk, Inc., Class A * |
82,094 |
6,415,646 |
|
|
219,704,360 |
|
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Pharmaceuticals, Biotechnology & Life Sciences 7.2% | ||
AbbVie, Inc. |
34,887 |
5,200,256 |
Alnylam Pharmaceuticals, Inc. * |
8,747 |
1,549,094 |
Biogen, Inc. * |
26,103 |
6,708,732 |
Eli Lilly & Co. |
91,676 |
49,241,930 |
Exact Sciences Corp. * |
104,865 |
7,153,890 |
Genmab A/S * |
18,064 |
6,395,569 |
Gilead Sciences, Inc. |
39,084 |
2,928,955 |
Moderna, Inc. * |
11,114 |
1,147,965 |
Regeneron Pharmaceuticals, Inc. * |
50,403 |
41,479,653 |
Sarepta Therapeutics, Inc. * |
17,541 |
2,126,320 |
Seagen, Inc. * |
8,142 |
1,727,325 |
Thermo Fisher Scientific, Inc. |
2,619 |
1,325,659 |
Waters Corp. * |
40,584 |
11,128,539 |
|
|
138,113,887 |
| ||
Semiconductors & Semiconductor Equipment 10.5% |
||
Advanced Micro Devices, Inc. * |
109,570 |
11,265,987 |
Analog Devices, Inc. |
87,271 |
15,280,279 |
Applied Materials, Inc. |
165,970 |
22,978,546 |
ASML Holding N.V. |
11,628 |
6,845,985 |
ASML Holding N.V. NY Registry Shares
|
8,472 |
4,987,128 |
Broadcom, Inc. |
20,247 |
16,816,753 |
First Solar, Inc. * |
49,723 |
8,034,740 |
Lam Research Corp. |
9,657 |
6,052,718 |
NVIDIA Corp. |
248,921 |
108,278,146 |
|
|
200,540,282 |
| ||
Software & Services 17.5% | ||
Adobe, Inc. * |
25,016 |
12,755,658 |
Cognizant Technology Solutions Corp., Class A |
55,040 |
3,728,410 |
Datadog, Inc., Class A * |
91,969 |
8,377,456 |
DocuSign, Inc. * |
163,931 |
6,885,102 |
Dynatrace, Inc. * |
116,547 |
5,446,241 |
Fair Isaac Corp. * |
17,185 |
14,925,688 |
Gartner, Inc. * |
13,750 |
4,724,638 |
HubSpot, Inc. * |
10,496 |
5,169,280 |
Intuit, Inc. |
17,646 |
9,016,047 |
Microsoft Corp. |
542,757 |
171,375,522 |
MongoDB, Inc. * |
9,090 |
3,143,867 |
Okta, Inc. * |
137,523 |
11,209,500 |
Oracle Corp. |
135,555 |
14,357,986 |
Salesforce, Inc. * |
153,309 |
31,087,999 |
Shopify, Inc., Class A * |
182,684 |
9,969,066 |
SECURITY |
NUMBER OF SHARES |
VALUE ($) |
Synopsys, Inc. * |
21,160 |
9,711,805 |
Workday, Inc., Class A * |
18,664 |
4,009,960 |
Zscaler, Inc. * |
55,790 |
8,680,366 |
|
|
334,574,591 |
| ||
Technology Hardware & Equipment 9.5% | ||
Amphenol Corp., Class A |
86,388 |
7,255,728 |
Apple Inc. |
950,301 |
162,701,034 |
Cognex Corp. |
98,500 |
4,180,340 |
Keyence Corp. |
20,350 |
7,525,951 |
|
|
181,663,053 |
| ||
Transportation 1.2% | ||
J.B. Hunt Transport Services, Inc.
|
38,005 |
7,164,703 |
Uber Technologies, Inc. * |
318,893 |
14,665,889 |
|
|
21,830,592 |
Total Common Stocks
(Cost $1,346,425,612) |
1,842,688,918 |
|
|
|
SHORT-TERM INVESTMENTS 3.7% OF NET ASSETS | ||
| ||
Money Market Funds 3.7% | ||
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.29% (a) |
71,110,878 |
71,110,878 |
Total Short-Term Investments
(Cost $71,110,878) |
71,110,878 | |
Total Investments in Securities
(Cost $1,417,536,490) |
1,913,799,796 |
|
NUMBER OF CONTRACTS |
NOTIONAL AMOUNT
($) |
CURRENT VALUE/ UNREALIZED
DEPRECIATION ($) |
FUTURES CONTRACTS | |||
Long |
|
|
|
Russell 1000 Growth Index, e-mini, expires 12/15/23 |
206 |
27,891,370 |
(1,132,594 ) |
* |
Non-income producing security. |
(a) |
The rate shown is the annualized 7-day yield. |
DESCRIPTION |
QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) |
OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) |
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) |
TOTAL |
Assets |
|
|
|
|
Common Stocks1
|
$1,842,688,918 |
$— |
$— |
$1,842,688,918
|
Short-Term Investments1
|
71,110,878 |
— |
— |
71,110,878 |
Liabilities |
|
|
|
|
Futures Contracts2
|
(1,132,594 ) |
— |
— |
(1,132,594 ) |
Total |
$1,912,667,202 |
$— |
$— |
$1,912,667,202 |
1 |
As categorized in the Portfolio Holdings.
|
2 |
Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $1,417,536,490) |
|
$1,913,799,796
|
Deposit with broker for futures contracts |
|
1,760,000 |
Receivables: |
|
|
Dividends |
|
423,151 |
Fund shares sold |
|
244,785 |
Foreign tax reclaims |
|
27,238 |
Prepaid expenses |
+ |
36,959 |
Total assets |
|
1,916,291,929 |
| ||
Liabilities | ||
Payables: |
|
|
Investments bought |
|
5,732,043 |
Fund shares redeemed |
|
1,231,119 |
Investment adviser fees |
|
1,060,860 |
Sub-accounting and sub-transfer agent fees |
|
164,396 |
Variation margin on futures contracts |
|
7,210 |
Independent trustees’ fees |
|
580 |
Accrued expenses |
+ |
81,899 |
Total liabilities |
|
8,278,107 |
Net assets |
|
$1,908,013,822 |
| ||
Net Assets by Source | ||
Capital received from investors |
|
$1,090,226,578
|
Total distributable earnings |
+ |
817,787,244 |
Net assets |
|
$1,908,013,822 |
Net Asset Value (NAV)
| ||||
Net Assets
|
÷ |
Shares Outstanding |
= |
NAV |
$1,908,013,822 |
|
86,880,105 |
|
$21.96 |
|
|
|
|
|
|
|
|
|
|
For the period April 1, 2023 through September 30, 2023; unaudited | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $218,382) |
|
$6,479,960 |
| ||
Expenses | ||
Investment adviser fees |
|
6,192,311 |
Sub-accounting and sub-transfer agent fees |
|
913,962 |
Shareholder reports |
|
47,221 |
Accounting and administration fees |
|
43,258 |
Independent trustees’ fees |
|
36,052 |
Professional fees |
|
29,712 |
Registration fees |
|
26,310 |
Custodian fees |
|
14,673 |
Transfer agent fees |
|
10,607 |
Other expenses |
+ |
20,356 |
Total expenses |
– |
7,334,462 |
Net investment loss |
|
(854,502 ) |
| ||
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized gains on sales of securities - unaffiliated |
|
330,151,492 |
Net realized losses on futures contracts |
|
(91,466 ) |
Net realized losses on foreign currency transactions |
+ |
(63,464 ) |
Net realized gains |
|
329,996,562 |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated |
|
(130,485,551 ) |
Net change in unrealized appreciation (depreciation) on futures contracts |
|
(1,132,594 ) |
Net change in unrealized appreciation (depreciation) on foreign currency translations |
+ |
(203 ) |
Net change in unrealized appreciation (depreciation) |
+ |
(131,618,348
) |
Net realized and unrealized gains |
|
198,378,214 |
Increase in net assets resulting from operations |
|
$197,523,712 |
OPERATIONS | |||
|
4/1/23-9/30/23 |
4/1/22-3/31/23 | |
Net investment income (loss) |
|
($854,502 ) |
$678,849
|
Net realized gains |
|
329,996,562 |
321,598 |
Net change in unrealized appreciation (depreciation) |
+ |
(131,618,348 ) |
(502,671,436 ) |
Increase (decrease) in net assets resulting from operations |
|
$197,523,712 |
($501,670,989 ) |
| |||
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions |
|
$— |
($219,998,276 ) |
TRANSACTIONS IN FUND SHARES | |||||
|
4/1/23-9/30/23 |
4/1/22-3/31/23 | |||
|
|
SHARES |
VALUE |
SHARES |
VALUE |
Shares sold |
|
4,905,070 |
$108,187,186 |
11,457,148 |
$234,521,827
|
Shares reinvested |
|
— |
— |
10,018,932 |
181,843,602 |
Shares redeemed |
+ |
(12,471,002 ) |
(273,882,971 ) |
(36,885,487 ) |
(744,859,725 ) |
Net transactions in fund shares |
|
(7,565,932
) |
($165,695,785
) |
(15,409,407
) |
($328,494,296 ) |
| |||||
SHARES OUTSTANDING AND NET ASSETS | |||||
|
4/1/23-9/30/23 |
4/1/22-3/31/23 | |||
|
|
SHARES |
NET ASSETS |
SHARES |
NET ASSETS |
Beginning of period |
|
94,446,037 |
$1,876,185,895 |
109,855,444 |
$2,926,349,456
|
Total increase (decrease) |
+ |
(7,565,932 ) |
31,827,927 |
(15,409,407 ) |
(1,050,163,561
) |
End of period |
|
86,880,105 |
$1,908,013,822 |
94,446,037 |
$1,876,185,895 |
% OF AVERAGE DAILY NET ASSETS |
|
First $500 million |
0.700 % |
$500 million to $1 billion |
0.650 % |
$1 billion to $1.5 billion |
0.600 % |
$1.5 billion to $2 billion |
0.575 % |
Over $2 billion |
0.550 % |
Schwab Balanced Fund |
4.8 % |
Schwab Target 2010 Fund |
0.0 %* |
Schwab Target 2015 Fund |
0.1 % |
Schwab Target 2020 Fund |
0.4 % |
Schwab Target 2025 Fund |
0.6 % |
Schwab Target 2030 Fund |
1.9 % |
Schwab Target 2035 Fund |
1.2 % |
Schwab Target 2040 Fund |
3.0 % |
Schwab Target 2045 Fund |
0.9 % |
Schwab Target 2050 Fund |
1.1 % |
Schwab Target 2055 Fund |
0.8 % |
Schwab Target 2060 Fund |
0.3 % |
Schwab Target 2065 Fund |
0.1 % |
* |
Less than 0.05% |
PURCHASES
OF SECURITIES |
SALES
OF SECURITIES |
$1,030,098,887 |
$1,266,901,962 |
|
TAX COST |
GROSS UNREALIZED
APPRECIATION |
GROSS UNREALIZED
DEPRECIATION |
NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
|
$1,419,921,675 |
$523,837,132 |
($31,091,605 ) |
$492,745,527 |
|
|
|
|
|
|
|
|
|
|
|
PRIOR FISCAL YEAR END DISTRIBUTIONS |
|
LONG-TERM
CAPITAL
GAINS
|
|
$219,998,276 |
Independent Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal Occupations
During the Past Five Years |
Number of
Portfolios in
Fund Complex
Overseen by
the Trustee |
Other Directorships |
Michael J. Beer 1961
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) |
Retired. Director, President and Chief Executive Officer
(Dec. 2016 – Sept. 2019), Principal Funds (investment
management). |
106 |
Director (2016 – 2019), Principal Funds, Inc. |
Robert W. Burns 1959
Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) |
Retired/Private Investor. |
106 |
None |
Nancy F. Heller 1956
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) |
Retired. |
106 |
None |
David L. Mahoney 1954
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) |
Private Investor. |
106 |
Director (2004 – present), Corcept Therapeutics Incorporated
Director (2009 – 2021),
Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane P. Moncreiff 1961
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) |
Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). |
106 |
None |
Independent Trustees (continued) | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal Occupations
During the Past Five Years |
Number of
Portfolios in
Fund Complex
Overseen by
the Trustee |
Other Directorships |
Kimberly S. Patmore 1956
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) |
Consultant (2008 – present), Patmore Management Consulting
(management consulting). |
106 |
None |
J. Derek Penn 1957
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) |
Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial
services). |
106 |
None |
Interested Trustees | |||
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal Occupations
During the Past Five Years |
Number of
Portfolios in
Fund Complex
Overseen by
the Trustee |
Other Directorships |
Walter W. Bettinger II2 1960
Chairman and Trustee
(Trustee of The Charles Schwab
Family of Funds, Schwab
Investments, Schwab Capital Trust
and Schwab Annuity Portfolios since
2008; Schwab Strategic Trust since
2009; Laudus Trust since 2010) |
Co-Chairman of the Board (July 2022 – present), Director and Chief
Executive Officer (Oct. 2008 – present) and President
(Feb. 2007 – Oct. 2021), The Charles Schwab Corporation;
President and Chief Executive Officer (Oct. 2008 – Oct. 2021)
and Director (May 2008 – Oct. 2021), Charles Schwab &
Co., Inc.; Co-Chairman of the Board (July 2022 – present) and
Director (Apr. 2006 – present), Charles Schwab Bank, SSB;
Co-Chairman of the Board (July 2022 – present) and Director
(Nov. 2017 – present), Charles Schwab Premier Bank, SSB;
Co-Chairman of the Board (July 2022 – present) and Director
(July 2019 – present), Charles Schwab Trust Bank; Director
(May 2008 – present), Chief Executive Officer (Aug. 2017 – present)
and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.;
Manager (Sept. 2023 – present), TD Ameritrade Holding LLC;
Director (Oct. 2020 – Aug. 2023), TD Ameritrade Holding
Corporation; Director (July 2016 – Oct. 2021), Charles Schwab
Investment Management, Inc. |
106 |
Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973
Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) |
President (Oct. 2021 – present) and Executive Vice President – Schwab
Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles
Schwab Corporation; President, Director (Oct. 2021 –
present), Executive Vice President – Schwab Asset Management
Solutions (July 2019 – Oct. 2021) and Senior Vice President
– Advisory (May 2016 – July 2019), Charles Schwab &
Co., Inc.; President (Nov. 2021 – present), Schwab Holdings,
Inc.; Director (Oct. 2021 – present) and Chief Executive
Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment
Management, Inc.; Director, Chief Executive Officer and President
(Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory,
Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and
President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive
Officer (July 2016 – Apr. 2018), Windhaven Investment
Management, Inc. |
106 |
None |
Officers of the Trust | |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) |
Principal Occupations During the Past Five Years |
Omar Aguilar 1970
Chief Executive Officer, President and Chief Investment
Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) |
Chief Executive Officer (Jan. 2022 – present), President (Oct. 2023 – present), (Chief
Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Jan.
2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer
and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.;
Chief Executive Officer (Sept. 2023 – present), President (Oct. 2023 –
present), Chief Investment Officer (June 2011 – present) and Vice President
(June 2011 – Sept. 2023), Schwab Funds, Laudus Trust and Schwab
ETFs. |
Mark Fischer 1970
Chief Operating Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2013) |
Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer
(Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial
Officer (Mar. 2020 – present), Chief Operating Officer (Oct. 2023 –
present), Managing Director (Mar. 2023 – present) and Vice President (Oct.
2013 – Mar. 2023), Charles Schwab Investment Management, Inc.
|
Dana Smith 1965
Treasurer and Chief Financial Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2023) |
Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director
(Mar. 2023 – present), Vice President (Mar. 2022 – Mar. 2023) and Director
(Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc.; Managing
Director (May 2022 – present) and Vice President (Apr. 2022 – May 2022),
Charles Schwab & Co., Inc. |
Patrick Cassidy 1964
Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2018) |
Chief Investment Officer (Oct. 2023 – present) and Vice President (Feb. 2018 – present),
Schwab Funds, Laudus Trust and Schwab ETFs; Managing Director (Mar. 2023 – present),
Chief Investment Officer (Oct. 2023 – present), and Senior Vice President
(Oct. 2012 – Mar. 2023), Charles Schwab Investment Management,
Inc. |
William P. McMahon, Jr. 1972
Vice President and Chief Investment Officer
(Officer of The Charles Schwab Family of Funds, Schwab
Investments, Schwab Capital Trust, Schwab Annuity
Portfolios, Schwab Strategic Trust and Laudus Trust since
2021) |
Managing Director (Mar. 2023 – present), Senior Vice President (Jan. 2020 – Mar. 2023) and
Chief Investment Officer (Jan. 2020 – present) Charles Schwab Investment
Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present),
Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief
Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019),
Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment
Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Catherine MacGregor 1964
Chief Legal Officer and Secretary, Schwab Funds and
Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) |
Chief Legal Officer (Mar. 2022 – present), Managing Director (Mar. 2023 – present) and Vice
President (Sept. 2005 – Mar. 2023), Charles Schwab Investment Management, Inc.;
Managing Director (May 2022 – present) and Vice President (Aug. 2005 –
May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 –
present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus
Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President
(Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021),
Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and
Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) | Based on their evaluation of Registrants disclosure controls and procedures, as of a date within 90 days of the filing date, Registrants Chief Executive Officer, Omar Aguilar and Registrants Chief Financial Officer, Dana Smith, have concluded that Registrants disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrants officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
(b) | During the period covered by this report, there have been no changes in Registrants internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrants internal control over financial reporting. |
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Laudus Trust
By: |
/s/ Omar Aguilar | |
Omar Aguilar Chief Executive Officer | ||
Date: |
November 16, 2023 |
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/ Omar Aguilar | |
Omar Aguilar Chief Executive Officer | ||
Date: |
November 16, 2023 | |
By: |
/s/ Dana Smith | |
Dana Smith Chief Financial Officer | ||
Date: |
November 16, 2023 |
CERTIFICATIONS
I, Omar Aguilar, certify that:
1. I have reviewed this report on Form N-CSRS 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 registrants other certifying officer 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 registrants 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 registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants Board of Trustees (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 registrants 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 registrants internal control over financial reporting.
Date: November 16, 2023 | /s/ Omar Aguilar | |||||
Omar Aguilar Chief Executive Officer |
CERTIFICATIONS
I, Dana Smith, certify that:
1. I have reviewed this report on Form N-CSRS 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 registrants other certifying officer 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 registrants 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 registrants internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants Board of Trustees (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 registrants 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 registrants internal control over financial reporting.
Date: November 16, 2023 | /s/ Dana Smith | |||||
Dana Smith Chief Financial Officer |
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 Semiannual Report for Laudus Trust (the Fund) on Form N-CSRS for the period ended September 30, 2023 (periodic report), each of the undersigned, being the Chief Executive Officer and Chief Financial Officer, respectively, 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 Fund for the period presented therein.
/s/ Omar Aguilar | Date: | November 16, 2023 | ||||
Omar Aguilar | ||||||
Chief Executive Officer | ||||||
/s/ Dana Smith | Date: | November 16, 2023 | ||||
Dana Smith | ||||||
Chief 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-CSRS with the Commission.
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