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Performance at a Glance

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


Total Return for the Report Period


Laudus Mondrian International Equity Fund

Investor Shares (Ticker Symbol: LIEQX)*		-17.30%
Select Shares^® (Ticker Symbol: LIEFX)*		-17.30%
Institutional Shares (Ticker Symbol: LIEIX)*		-17.20%
Benchmark: MSCI EAFE^® Index (Net)		-23.60%

Performance Details		pages 6-7



Laudus Mondrian Global Equity Fund

Investor Shares (Ticker Symbol: LGEQX)*		-16.00%
Select Shares^® (Ticker Symbol: LGESX)*		-16.00%
Institutional Shares (Ticker Symbol: LGEVX)*		-16.00%
Benchmark: MSCI World^® Index (Net)		-19.05%

Performance Details		pages 8-9



Laudus Mondrian Emerging Markets Fund

Investor Shares (Ticker Symbol: LEMIX)		-23.04%
Select Shares^® (Ticker Symbol: LEMSX)		-22.99%
Institutional Shares (Ticker Symbol: LEMNX)		-22.82%
Benchmark: MSCI Emerging Markets Index (Net)		-27.58%

Performance Details		pages 10-11



Laudus Mondrian International Fixed Income Fund

Investor Shares (Ticker Symbol: LIFIX)		-7.50%
Select Shares^® (Ticker Symbol: LIFSX)		-7.48%
Institutional Shares (Ticker Symbol: LIFNX)		-7.38%
Benchmark: Citigroup non-U.S. Dollar World Government Bond Index		-8.77%

Performance Details		pages 12-13



Minimum Initial Investment¹

Investor Shares		$ 100
Select Shares		$ 50,000
Institutional Shares		$500,000

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

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

Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.

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


*	For the period 6/17/08 (commencement of operation) to 9/30/08.
¹	Please see prospectus for further detail and eligibility requirements.

2 Laudus Mondrian Funds

From the President

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

Dear Shareholder,

The past six months have marked a difficult time in financial history. Both domestically and abroad, corporations and economies have experienced significant headwinds as credit tightened, residential real estate prices declined, and many financial corporations and hedge funds began to deleverage. In our view, consumers during this period became extremely cautious of owning anything but assets that carried government guarantees, such as U.S. Treasuries. As a result, we witnessed price declines across many industry groups and in general major indexes and averages also declined.

Due to this market turmoil, some funds in the Laudus Mondrian family experienced meaningful declines. In these difficult times, I would like to emphasize that the negative performance of these funds has been primarily the result of atypical market conditions. We would also note that each of the Laudus Mondrian Funds materially outperformed its index, due in part to the defensive value-orientation the funds maintained amidst this challenging environment. While we cannot predict the future with any certainty, we remain committed to our well-established disciplines in managing the Funds through these difficult times. Our portfolio management strategy has always been and will continue to be guided by diligence, long-term perspective and prudence.

The Laudus Mondrian Funds are sub-advised by Mondrian Investment Partners Limited, a London-based institutional investment manager. Founded in 1990, Mondrian is renowned for its international expertise and its adherence to a consistent value-oriented investment philosophy. Mondrian manages more than $50 billion in assets for some of the world’s largest companies and public retirement plans.

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

Thank you for investing with us.

Sincerely,

Laudus Mondrian Funds 3

The Investment Environment

The past six months have produced significant volatility in the global capital markets. Nearly all major indexes produced negative returns, some losing more than 20%. Generally, the U.S. equity markets fared better than international ones, and fixed income outperformed both. Commodity indexes also lost value.

The period began with fairly strong positive returns. Many equity indexes gained over 5% in April and continued with positive but lower returns in May. However, June began a series of monthly declines which culminated in very weak returns in September. For the six-month period, stocks were down about 15% on average across the globe. In the U.S., large-cap stocks lost about 11% for the period, with very little difference between growth- and value-style equities. U.S. small-caps, however, outperformed U.S. large-caps, coming in just barely negative for the six months. U.S. small-cap value stocks outperformed growth, and even posted a slightly positive return. Internationally, the results were worse. International large-cap stocks lost nearly 24%, but outperformed international small-cap stocks, which were down more than 26%. There were little differences in returns across investment styles internationally during the six-month period.

What caused these weak returns, especially during a relatively short period of time? In essence, the credit crisis that began in the summer of 2007 continued to dominate the capital markets during the period. In September 2008 alone, Lehman Brothers declared bankruptcy, while the U.S. government intervened in the operations of Freddie Mac, Fannie Mae and AIG. Several banks also failed. Companies in all areas but especially in the financial services sector began to deleverage their balance sheets. Over the past several years, individuals and companies borrowed significant amounts of capital. Individuals typically used these loans to purchase homes and autos. In turn, many financial companies leveraged their balance sheets to buy these loans and package and sell marketable securities composed of them, such as mortgage-backed securities. On the open market, these securities could be bought by institutional investors and hedge funds, for example. As credit tightened, many of the loans – both consumer and corporate – went into default, requiring firms to acquire capital to shore up their balance sheets or to sell assets to reduce their debt.

Investors and lenders were worried about the value of the debt on company balance sheets. In some cases, there were no bidders for the corporate obligations and securitized assets that were being offered for sale. Without bids, it became difficult to value these securities, and as default rates rose prices became even more depressed. Eventually, the solvency of corporations with large portfolios of leveraged debt was questioned. In this environment, investors took defensive action by reducing their corporate equity exposure. Thus, the equity markets declined precipitously as investors migrated to the safety of government debt.

A few areas performed well. One notable area was the U.S. Treasury market, generally considered the lowest default risk fixed income investment. Short-term Treasury bills gained about 1% during the period, and longer maturity Treasury bonds returned nearly 1.5%. In equities, as noted above, small-cap value stocks in the U.S. did generate a slightly positive return. Also, U.S. Health Care stocks did well during the period, as investors flocked to defensive investments.

From a Sector perspective across the globe, some interesting patterns emerged. Financial stocks were down nearly 20%, as expected, given their position in the middle of the credit crunch. However, Materials and Energy stocks, which have performed very well over the last few years, also did poorly, partially due to the deleveraging process described above and partially due to investors simply wanting out of equity positions.

4 Laudus Mondrian Funds

The Investment Environment continued

Also losing in the double-digit range were Industrials, Consumer Discretionary, Information Technology, Telecomm, and Utilities. The top performers were global Health Care and Consumer Staples firms, areas generally considered to be defensive investments in times of economic or market stress; although both groups performed negatively, their losses were much less versus the other Sectors.

Among major developed economies, the U.S. performed the best during the period, losing about 11%. Canada and Japan did slightly worse. Most European countries lost more than 20%. It is important to note that in the period from July through September, the U.S. dollar rallied against the British pound and the euro, pushing the European returns lower for U.S. dollar-based investors. Emerging markets as a group underperformed developed markets, losing more than 27% in the six-month period. Many emerging market countries lost more than 30%, another sign of risk aversion among global investors.

The dollar’s gains also impacted commodity prices, and most commodity indexes were down about 12% for the six-month period. Crude oil was nearly flat for the period, in contrast to the rise in prices over the last few years. Metals and agricultural prices also declined, partially in response to expectations of slowing economies around the globe and thus a likelihood of lower demand.

Laudus Mondrian International Equity Fund

The Laudus Mondrian International Equity Fund Investor Shares returned -17.30% since inception (June 17, 2008), outperforming the benchmark MSCI EAFE Index (Net) which returned -23.60%. For the entire period, stock selection in Japan, Australia, and in the Telecommunications sector were the primary drivers of outperformance relative to the benchmark. This was supported further by sector allocation decisions, most notably the underweight position in the Materials sector and the overweight position in the Health Care sector. Currency effects were also positive for the fund, driven largely by defensive hedges out of UK Sterling and the euro.

Global financial markets have recently experienced one of their most turbulent periods in many years. The developed market sell off was led by a variety of concerns such as the availability of liquidity, GDP growth, deleveraging, rising levels of default, falling house prices and rising unemployment. While growing evidence of a weaker economic environment continued to accumulate, attention eventually centered on the tug-of-war between escalating financial stress and policy intervention. Events reached a crescendo in late September with the initial rejection by the US House of Representatives of the proposed Troubled Asset Relief Plan, a government-financed mechanism to remove problem assets from the financial system. Equity markets reacted emphatically and the MSCI EAFE Index ended the period down significantly.

Policy-makers were pressed into taking unprecedented actions which, in a matter of weeks, started to reshape the industry landscape. The Lehman Brothers bankruptcy filing exacerbated supply-demand dislocations across money markets. As the threat of financial meltdown loomed, the search for a more powerful purgative step towards ultimate resolution heralded the proposal of the Troubled Asset Relief Plan, the first iteration of which failed to emerge from the political process. Against this backdrop, fears of contagion became more acute and the Industrials sector also fell sharply. The Energy and Materials sectors were weak performers, as the price of oil and many other commodities dropped sharply on risk concerns and expectations of further demand reductions.

As of 9/30/08:

Country Weightings % of Investments¹


Japan	23.0%


United Kingdom	21.9%


France	16.5%


Australia	7.9%


Spain	6.8%


Switzerland	4.4%


Netherlands	4.1%


Germany	3.6%


Italy	3.3%


Singapore	2.6%


Taiwan	2.1%


Hong Kong	1.5%


Other Countries	2.3%


Total	100.0%

Statistics


Number of Holdings	36

Weighted Average

Market Cap


($ x 1,000,000)	$61,713


Price/Earnings Ratio (P/E)	9.0


Price/Book Ratio (P/B)	1.5

Portfolio Turnover Rate


(one year trailing)*	n/a

Sector Weightings % of Investments¹


Financials	25.3%


Consumer Staples	16.0%


Telecommunication Services	13.6%


Health Care	13.1%


Energy	11.0%


Consumer Discretionary	7.2%


Information Technology	5.9%


Utilities	5.1%


Industrials	1.5%


Materials	1.3%


Total	100.0%

Top Holdings % of Net Assets¹


GlaxoSmithKline plc	4.6%


Unilever plc	4.5%


Novartis AG-Reg’d.	4.2%


Kao Corp.	4.2%


Royal Dutch Shell plc, Class A	3.7%


Takeda Pharmaceutical Co., Ltd.	3.7%


CANON, Inc.	3.7%


Telefonica S.A.	3.6%


Total S.A.	3.5%


RWE AG	3.5%


Total	39.2%

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

6 Laudus Mondrian Funds

Laudus Mondrian International Equity Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Total Returns¹


Fund Class and Inception Date	Since Inception


Investor Shares (6/17/08)		-17.30%
Select Shares (6/17/08)		-17.30%
Institutional Shares (6/17/08)		-17.20%
Benchmark: MSCI EAFE Index^®(Net)*		-23.60%

Fund Expense Ratios²: Investor Shares: Net 1.40%; Gross 1.47% / Select Shares: Net 1.12%; Gross 1.22% /

Institutional Shares: Net 1.05%; Gross 1.07%

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


*	The Morgan Stanley Capital International Europe, Australasia, Far East Index (Net) (MSCI EAFE Index^®) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada.


¹	Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.

Laudus Mondrian Funds 7

Laudus Mondrian Global Equity Fund

The Laudus Mondrian Global Equity Fund Investor Shares returned -16.00% since inception on June 17, 2008, outperforming the benchmark MSCI World Index (Net) which returned -19.05%. In general, returns were negative across the major regions represented in the fund. Europe saw the biggest decline in prices, followed by Asia/Pacific and North America. For the period, the fund’s relative performance benefitted from strong stock selection across countries and industry groups, specifically in Japan, the US, Australia and in the Telecommunications and Energy sectors. This was further supported by sector allocation, where an underweight position in the Materials sector and an overweight position in the Health Care sector benefitted the fund. Currency effects were also positive for the fund, driven largely by the defensive hedges out of UK Sterling and the euro.

Global financial markets have recently experienced one of their most turbulent periods in many years. Volatility has increased in developed equity markets but emerging markets bore the brunt of the sell off, as their previous rise assisted by commodities had been more extreme. The developed market sell off was led by a variety of concerns such as the availability of liquidity, GDP growth, deleveraging, rising levels of default, falling house prices and rising unemployment. While evidence of a weaker economic environment continued to accumulate during the period, attention was centered on the tug-of-war between escalating financial stress and policy intervention. Events reached a crescendo in late September with the initial rejection by the US House of Representatives of the proposed Troubled Asset Relief Plan, a government-financed mechanism to remove problem assets from the financial system. Equity markets reacted emphatically and the MSCI World Index was down significantly.

As of 9/30/08:

Country Weightings % of Investments¹


United States	41.6%


United Kingdom	14.3%


Japan	13.0%


France	7.9%


Spain	4.6%


Austrailia	4.4%


Germany	3.1%


Netherlands	2.6%


Switzerland	2.6%


Singapore	2.5%


Italy	1.5%


Other Countries	1.9%


Total	100.0%

Statistics


Number of Holdings	59

Weighted Average

Market Cap


($ x 1,000,000)	$81,588


Price/Earnings Ratio (P/E)	11.9


Price/Book Ratio (P/B)	1.6

Portfolio Turnover Rate


(one year trailing)*	n/a

Sector Weightings % of Investments¹


Financials	19.1%


Health Care	17.1%


Telecommunication Services	13.2%


Consumer Staples	12.6%


Energy	10.8%


Information Technology	7.5%


Industrials	6.4%


Conmer Discretionary	4.9%


Materials	4.9%


Utilities	3.5%


Total	100.0%

Top Holdings % of Net Assets¹


Bank of America Corp.	3.7%


Chevron Corp.	3.7%


GlaxoSmithKline plc	3.6%


Microsoft Corp.	3.4%


General Electric Corp.	3.4%


Wyeth	2.9%


Telefonica S.A.	2.9%


H.J. Heinz Co.	2.8%


Total S.A.	2.6%


Verizon Communications, Inc.	2.6%


Total	31.6%

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


*	The portfolio turnover (one year trailing) is not applicable as the fund commenced operations on 6/17/08.

8 Laudus Mondrian Funds

Laudus Mondrian Global Equity Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Total Returns¹


Fund Class and Inception Date	Since Inception


Investor Shares (6/17/08)		-16.00%
Select Shares (6/17/08)		-16.00%
Institutional Shares (6/17/08)		-16.00%
Benchmark: MSCI World^® Index (Net)*		-19.05%

Fund Expense Ratios²: Investor Shares: Net 1.40%; Gross 1.46% / Select Shares: Net 1.12%; Gross 1.21% /

Institutional Shares: Net 1.05%; Gross 1.06%


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


¹	Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.

Laudus Mondrian Funds 9

Laudus Mondrian Emerging Markets Fund

Laudus Mondrian Emerging Markets Fund Investor Shares returned -23.04% during the period, outperforming the benchmark MSCI Emerging Markets Index (Net), which returned -27.58%. For the entire period, market returns were negative across all regions; however, stock selection and portfolio weightings in Latin America and Asia/Pacific were the main drivers of outperformance relative to the benchmark.

On a sector specific level, returns in the Index were most negative in Materials and Industrials. The fund benefitted from relative underweights in these two sectors. The fund also benefitted from its weighting and security selection in the Telecommunications Service sector where returns were less negative. Currency movements decreased US dollar returns as most emerging currencies depreciated relative to the US dollar.

The fund’s general investment strategy continued to be driven by several consistent factors implemented by the Mondrian portfolio management team. These included an underweight to India and Korea and an overweight to select markets such as Taiwan and Turkey. Additionally, the fund was overweight in the Telecomm sector where strong free cash flows supported high dividend yields and underweight metals and mining. Overall, the fund maintained a strong value stock orientation.

Global financial markets have recently experienced one of their most turbulent periods in many years. Volatility has increased in developed equity markets but emerging markets bore the brunt of the sell off, as their previous rise assisted by commodities had been more extreme. The developed market sell off was led by a variety of concerns such as the availability of liquidity, GDP growth, deleveraging, rising levels of default, falling house prices and rising unemployment. In certain emerging markets volatility was extremely high, for example Russia closed its local stock exchange for several days after very significant declines following panic selling. Markets that were hardest hit included those that had enjoyed the strongest performance in late 2007 or had a strong commodity bias. In virtually all cases negative local returns were exacerbated for foreign investors by a sharp sell off of the currency. In Mondrian’s view, selling in most markets tended to be indiscriminate with little regard to valuation fundamentals or positive corporate or economic news.

As of 9/30/08:

Country Weightings % of Investments¹


Brazil	14.3%


Taiwan	14.3%


China	14.1%


Russia	10.5%


Republic of Korea	7.9%


Turkey	6.8%


Mexico	6.4%


South Africa	6.1%


Egypt	4.1%


India	3.3%


Philippines	3.3%


Thailand	2.9%


Columbia	2.3%


Malaysia	2.0%


Argentina	1.7%


Total	100.0%

Statistics


Number of Holdings	42

Weighted Average

Market Cap


($ x 1,000,000)	$31,955


Price/Earnings Ratio (P/E)	9.6


Price/Book Ratio (P/B)	1.7

Portfolio Turnover Rate


(one year trailing)*	n/a

Sector Weightings % of Investments¹


Telecommunication Services	27.0%


Financials	22.6%


Energy	14.4%


Information Technology	13.6%


Materials	8.1%


Industrials	6.8%


Consumer Staples	2.9%


Utilities	2.7%


Consumer Discretionary	1.9%


Total	100.0%

Top Holdings % of Net Assets¹

China Construction Bank Corp.,


Class H	4.0%

Taiwan Semiconductor Manufacturing


Co., Ltd. ADR	3.8%


LUKOIL ADR	3.5%


Turkcell Iietisim Hizmetleri A/S	3.5%


Itausa-Investimentos Itau S.A.	3.5%

America Movil SAB de C.V.,


Series L ADR	3.3%


Bharti Airtel Ltd.	3.2%

Philippine Long Distance Telephone


Co. ADR	3.2%


Akbank T.A.S.	3.1%


China Mobile Ltd.	3.0%


Total	34.1%

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


*	The portfolio turnover (one year trailing) is not applicable as the fund commenced operations on 11/02/07.

10 Laudus Mondrian Funds

Laudus Mondrian Emerging Markets Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Total Returns¹


Fund Class and Inception Date	6 Months		Since Inception


Investor Shares (11/2/07)		-23.04%		-28.41%
Select Shares (11/2/07)		-22.99%		-28.18%
Institutional Shares (11/2/07)		-22.82%		-28.17%
Benchmark: MSCI Emerging Markets Index (Net)*		-27.58%		-38.63%

Fund Expense Ratios²: Investor Shares: Net 1.80%; Gross 2.79% / Select Shares: Net 1.52%; Gross 2.74% /

Institutional Shares: Net 1.45%; Gross 2.62%


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


¹	Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.

Laudus Mondrian Funds 11

Laudus Mondrian International Fixed Income Fund

The Laudus Mondrian International Fixed Income Fund Investor Shares returned -7.50% for the period, outperforming the benchmark Citigroup non-U.S. Dollar World Government Bond Index which returned -8.77%. The benchmark’s negative performance was driven in large part by weakness of international currencies versus the US dollar. The dollar strengthened, reversing its course from earlier in the year, as the global financial crises weighed heavily on non-US economies.

The fund’s general investment strategy continued to be driven by several guiding factors that were selected by the Mondrian fixed income portfolio management team. These included an underweight to Europe, with exposure exclusively to the eurozone, with no allocation to the U.K. Sterling. The euro position was partially hedged, adding value as the US dollar appreciated. The fund also had no allocation to Canada, but maintained an overweight to Japan and Mexico. The allocation to Japan was a relative outperformer due in part to the performance of the yen. Overall, the fund’s goal is to invest in international fixed income markets that offer high income in real (inflation-adjusted) terms.

US inflation prospects improved as commodity and consumer prices declined from earlier highs. As a portfolio team, Mondrian had forecast the reemergence of US inflation in recent years, but now the three factors that drove its return have reversed. First, following sharp rises in recent years, the rapid drop in global commodity prices in recent months will, in Mondrian’s view, depress US inflation, particularly given the US economy’s relatively high dependency on commodities. Second, after a spike in 2006/07, unit labor cost growth has plunged, due to higher productivity growth with steep falls in employment. Third, following its 40% drop in trade-weighted terms since 2002, the US dollar has risen by 10% since March.

As of 9/30/08:

Geographic Breakdown % of Investments¹


Pacific Asia	49.8%


Eurozone	45.4%


Latin America	4.2%


Other	0.6%


Total	100.0%

Statistics


Number of Holdings	43


Average Maturity	6.31


Modified Duration	5.13


Average Quality	AA+

Portfolio Turnover Rate


(one year trailing)*	n/a

Sector Weightings % of Investments¹


Government Bonds	89.0%


Government Agency Obligations	5.6%


Corporate Bonds	3.7%


Covered Bonds	1.1%


Other	0.6%


Total	100.0%

Top Holdings % of Net Assets¹

Japan Government Ten Year


Bond, 0.90%, 06/20/13	6.2%

Japan Government Ten Year


Bond, 1.10%, 09/20/12	5.9%

Japan Government Ten Year


Bond, 1.20%, 09/20/12	5.7%

Austria Government Bond, 3.50%,


07/15/15	4.8%

Japan Government Ten Year


Bond, 1.40%, 09/20/11	4.7%

Japan Government Ten Year


Bond, 1.50%, 03/20/15	4.4%

Netherlands Government Bond,


4.25%, 07/15/13	4.4%

Netherlands Government Bond,


3.75%, 07/15/14	4.3%

Belgium Government Bond, 5.50%,


09/28/17	4.3%

Japan Government Ten Year


Bond, 0.50%, 06/20/13	4.2%


Total	48.9%

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


*	The portfolio turnover (one year trailing) is not applicable as the fund commenced operations on 11/02/07.


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

12 Laudus Mondrian Funds

Laudus Mondrian International Fixed Income Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$500,000 Investment in Institutional Shares¹

Total Returns¹


Fund Class and Inception Date	6 Months		Since Inception


Investor Shares (11/2/07)		-7.50%		4.77%
Select Shares (11/2/07)		-7.48%		4.93%
Institutional Shares (11/2/07)		-7.38%		5.05%
Benchmark: Citigroup non-U.S. Dollar World Government Bond Index*		-8.77%		2.70%

Fund Expense Ratios²: Investor Shares: Net 1.10%; Gross 1.57% / Select Shares: Net 0.82%; Gross 1.31% /

Institutional Shares: Net 0.75%; Gross 1.23%


*	The Citigroup non-US DollarWorld Government Bond Index measures the total rate of return performance for the government bonds of 23 countries, excluding the U.S., with a remaining maturity of at least one year. This series approximates the minimum possible dividend reinvestment.


¹	Fund expenses may have been partially absorbed by CSIM. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.

Laudus Mondrian Funds 13

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 period beginning April 1, 2008 and held through September 30, 2008.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period”.

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s or share class’ actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio		Account Value		(Net of Expenses)		During Period
	(Annualized)		at 4/1/08*		at 9/30/08		4/1/08 - 9/30/08*



Laudus Mondrian International Equity Fund¹
Investor Shares
Actual Return		1.38%	$	1,000	$	827.00	$	3.66
Hypothetical 5% Return		1.38%	$	1,000	$	1,010.51	$	4.03
Select Shares
Actual Return		1.11%	$	1,000	$	827.00	$	2.94
Hypothetical 5% Return		1.11%	$	1,000	$	1,011.30	$	3.24
Institutional Shares
Actual Return		1.05%	$	1,000	$	828.00	$	2.79
Hypothetical 5% Return		1.05%	$	1,000	$	1,011.47	$	3.07


Laudus Mondrian Global Equity Fund¹
Investor Shares
Actual Return		1.39%	$	1,000	$	840.00	$	3.71
Hypothetical 5% Return		1.39%	$	1,000	$	1,010.48	$	4.06
Select Shares
Actual Return		1.11%	$	1,000	$	840.00	$	2.97
Hypothetical 5% Return		1.11%	$	1,000	$	1,011.30	$	3.24
Institutional Shares
Actual Return		1.06%	$	1,000	$	840.00	$	2.83
Hypothetical 5% Return		1.06%	$	1,000	$	1,011.44	$	3.10


*	Funds commencing operations subsequent to April 1, 2008 use the commencement of operations for purposes of this calculation.


¹	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 106 days of the period, and divided by 365 days of the fiscal year. The funds commenced operations on 6/17/08.

14 Laudus Mondrian Funds

Fund Expenses (Unaudited) continued


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio		Account Value		(Net of Expenses)		During Period
	(Annualized)		at 4/1/08*		at 9/30/08		4/1/08 - 9/30/08*



Laudus Mondrian Emerging Markets Fund¹
Investor Shares
Actual Return		1.80%	$	1,000	$	769.60	$	7.99
Hypothetical 5% Return		1.80%	$	1,000	$	1,016.04	$	9.10
Select Shares
Actual Return		1.52%	$	1,000	$	770.10	$	6.74
Hypothetical 5% Return		1.52%	$	1,000	$	1,017.45	$	7.69
Institutional Shares
Actual Return		1.45%	$	1,000	$	771.80	$	6.44
Hypothetical 5% Return		1.45%	$	1,000	$	1,017.80	$	7.33


Laudus Mondrian International Fixed Income Fund¹
Investor Shares
Actual Return		1.11%	$	1,000	$	925.00	$	5.36
Hypothetical 5% Return		1.11%	$	1,000	$	1,019.50	$	5.62
Select Shares
Actual Return		0.83%	$	1,000	$	925.20	$	4.01
Hypothetical 5% Return		0.83%	$	1,000	$	1,020.91	$	4.20
Institutional Shares
Actual Return		0.76%	$	1,000	$	926.20	$	3.67
Hypothetical 5% Return		0.76%	$	1,000	$	1,021.26	$	3.85


*	Funds commencing operations subsequent to April 1, 2008 use the commencement of operations for purposes of this calculation.


¹	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 365 days of the fiscal year.

Laudus Mondrian Funds 15

Laudus Mondrian International Equity Fund

Financial Statements

Financial Highlights


	6/17/08¹-
Investor Shares	9/30/08*


Per—Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.02
Net realized and unrealized gains (losses)		(1.75	)

Total from investment operations		(1.73	)
Net asset value at end of period		8.27

Total return (%)		(17.30	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.38	^3,4
Gross operating expenses		4.68	³
Net investment income (loss)		3.35	³
Portfolio turnover rate		2	²
Net assets, end of period ($ x 1,000)		95


	6/17/08¹-
Select Shares	9/30/08*


Per—Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.04
Net realized and unrealized gains (losses)		(1.77	)

Total from investment operations		(1.73	)
Net asset value at end of period		8.27

Total return (%)		(17.30	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.11	^3,4
Gross operating expenses		4.34	³
Net investment income (loss)		2.97	³
Portfolio turnover rate		2	²
Net assets, end of period ($ x 1,000)		237

* Unaudited

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 1.40% for the Investor shares and 1.12% for Select shares if custody credits had not been included.

16 See financial notes

Laudus Mondrian International Equity Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

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

Cost

Value

Holdings by Category

($)

.9%

Common Stock

5,248,632

4,285,294

.7%

Short-Term Investment

122,000

.6%

Total Investments

5,370,632

4,407,294

.4%

Other Assets and Liabilities, Net

63,426

100

.0%

Net Assets

4,470,720


	Number		Value
Security	of Shares		($)





Common Stock 95.9% of net assets


Australia 7.5%


Banks 2.4%
National Australia Bank Ltd.		5,364		108,259


Food & Staples Retailing 1.7%
Wesfarmers Ltd.		3,340		77,674


Telecommunication Services 3.4%
Telstra Corp., Ltd.		45,102		151,315

				337,248


Belgium 1.1%


Diversified Financials 1.1%
Fortis		7,434		47,038


Finland 1.2%


Materials 1.2%
UPM-Kymmene Oyj		3,446		53,766


France 15.8%


Automobiles & Components 2.3%
Renault S.A.		1,603		102,158


Banks 2.4%
Societe Generale		1,218		109,412


Capital Goods 1.5%
Compagnie de Saint-Gobain		1,271		65,747


Energy 3.5%
Total S.A.		2,612		158,679


Food & Staples Retailing 2.8%
Carrefour S.A.		2,628		123,928


Telecommunication Services 3.3%
France Telecom S.A.		5,198		145,802

				705,726


Germany 3.5%


Utilities 3.5%
RWE AG		1,621		154,541


Hong Kong 1.5%


Utilities 1.5%
Hongkong Electric Holdings Ltd.		10,500		65,950


Italy 3.2%


Banks 3.2%
Intesa Sanpaolo		25,604		140,811


Japan 22.0%


Automobiles & Components 2.9%
Toyota Motor Corp.		3,000		128,257


Food & Staples Retailing 2.2%
Seven & I Holdings Co., Ltd.		3,400		97,682


Household & Personal Products 4.2%
Kao Corp.		7,000		187,722


Insurance 2.6%
Tokio Marine Holdings, Inc.		3,200		117,484


Pharmaceuticals & Biotechnology 3.7%
Takeda Pharmaceutical Co., Ltd.		3,300		166,157


Technology Hardware & Equipment 3.6%
CANON, Inc.		4,300		163,017


Telecommunication Services 2.8%
KDDI Corp.		22		124,623

				984,942


Netherlands 3.9%


Diversified Financials 2.2%
ING Groep N.V. CVA		4,578		98,142


Media 1.7%
Reed Elsevier N.V.		5,188		76,964

				175,106


Singapore 2.5%


Banks 2.5%
Oversea-Chinese Banking Corp., Ltd.		22,000		111,078


Spain 6.5%


Banks 2.9%
Banco Santander S.A.		8,797		131,905


Telecommunication Services 3.6%
Telefonica S.A.		6,722		159,833

				291,738

18 See financial notes

Laudus Mondrian International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Switzerland 4.2%


Pharmaceuticals & Biotechnology 4.2%
Novartis AG - Reg’d.		3,568		187,854


Taiwan 2.0%


Semiconductors & Semiconductor Equipment 2.0%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		9,447		88,518


United Kingdom 21.0%


Banks 2.5%
HBOS plc		13,989		31,738
Royal Bank of Scotland Group plc		25,705		82,922

				114,660


Energy 7.0%
BP plc		17,587		146,469
Royal Dutch Shell plc, Class A		5,694		167,758

				314,227


Food, Beverage & Tobacco 4.5%
Unilever plc		7,350		199,853


Insurance 2.4%
Aviva plc		12,155		105,727


Pharmaceuticals & Biotechnology 4.6%
GlaxoSmithKline plc		9,533		206,511

				940,978

Total Common Stock (Cost $5,248,632)				4,285,294


In addition to the above, the fund held the following at 9/30/08.


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


Short-Term Investment 2.7% of net assets


Repurchase Agreement 2.7%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.20%, with a maturity value of $122,004 (fully collateralized by Federal Home Loan Mortgage Corp. Securities with a value of $126,900.)		122,000		122,000

Total Short-Term Investment (Cost $122,000)				122,000


End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $5,371,199 and the unrealized appreciation and depreciation were $9,963 and ($973,868), respectively, with a net unrealized depreciation of ($963,905).

At 09/30/08, the prices of certain foreign securities held by the fund aggregating $4,196,775 were adjusted from their closing market prices following the guidelines adopted by the fund’s Board of Trustees.

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

Currency

Amount of

Currency

Amount of

Expiration

to be

Currency to be

to be

Currency to be

Unrealized

Date

Received

Delivered

Gains / Losses

Forward Foreign Currency Contracts

10/31/08

USD

392,497

EUR

278,000

31,226

10/31/08

USD

113,145

GBP

63,500

11,636

10/31/08

GBP

63,500

USD

113,145

994

Net unrealized gain on Forward Foreign Currency Contracts

43,856

Laudus Mondrian International Equity Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $5,370,632)		$4,407,294
Cash		29
Foreign currency (cost $7,323)		7,036
Receivables:
Investments sold		23,065
Dividends		16,673
Due from investment adviser		873
Foreign tax reclaims		48
Interest		4
Unrealized gains on forward foreign currency contracts	+	43,861


Total assets		4,498,883


Liabilities
Payables:
Distribution and shareholder services fees		12
Unrealized losses on forward foreign currency contracts		5
Accrued expenses	+	28,146


Total liabilities		28,163


Net Assets
Total assets		4,498,883
Total liabilities	−	28,163


Net assets		$4,470,720
Net Assets by Source
Capital received from investors		5,368,853
Net investment income not yet distributed		31,502
Net realized capital losses		(9,089	)
Net unrealized capital losses		(920,546	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$95,427		11,540			$8.27
Select Shares	$237,260		28,675			$8.27
Institutional Shares	$4,138,033		500,000			$8.28

20 See financial notes

Laudus Mondrian International Equity Fund

Statement of

Operations

For June 17, 2008 * through September 30, 2008; unaudited.




Investment Income
Dividends (net of foreign withholding taxes of $3,755)		$45,318
Interest	+	730


Total Investment Income		46,048


Net Realized Gains and Losses
Net realized gains on investments		5,131
Net realized losses on foreign currency transactions	+	(14,220	)


Net realized losses		(9,089	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(963,338	)
Net unrealized gains on foreign currency translations	+	42,792


Net unrealized losses		(920,546	)


Expenses
Investment adviser fees		11,804
Accounting and administration fees		10,364
Professional fees		8,911
Custodian fees		7,255
Shareholder reports		7,121
Transfer agent fees		7,105
Trustees’ fees		1,770
Registration fees		1,254
Sub-Accounting fees
Investor Shares		13
Select Shares		60
Distribution and shareholder services fees (Investor Shares)		20
Other expenses	+	1,196


Total expenses		56,873
Expense reduction by adviser	−	42,219
Custody credits	−	108


Net expenses		14,546


Increase (Decrease) in Net Assets from Operations
Total investment income		46,048
Net expenses	−	14,546


Net investment income		31,502
Net realized losses		(9,089	)
Net unrealized losses	+	(920,546	)


Decrease in net assets from operations		($898,133	)


*	Commencement of operations.

See financial notes 21

Laudus Mondrian Global Equity Fund

Financial Statements

Financial Highlights


	6/17/08¹-
Investor Shares	9/30/08*


Per—Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.05
Net realized and unrealized gains (losses)		(1.65	)

Total from investment operations		(1.60	)
Less distributions:
Distributions from net investment income		—

Net asset value at end of period		8.40

Total return (%)		(16.00	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.39	^3,4
Gross operating expenses		4.47	³
Net investment income (loss)		2.40	³
Portfolio turnover rate		4	²
Net assets, end of period ($ x 1,000)		30


	6/17/08¹-
Select Shares	9/30/08*


Per—Share Data ($)

Net asset value at beginning of period		10.00

Income (loss) from investment operations:
Net investment income (loss)		0.06
Net realized and unrealized gains (losses)		(1.66	)

Total from investment operations		(1.60	)
Less distributions:
Distributions from net investment income		—

Net asset value at end of period		8.40

Total return (%)		(16.00	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.11	^3,4
Gross operating expenses		4.20	³
Net investment income (loss)		2.90	³
Portfolio turnover rate		4	²
Net assets, end of period ($ x 1,000)		45

* Unaudited

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 1.40% for the Investor shares,1.12% for Select shares and 1.05% for Institutional shares if custody credits had not been included.

See financial notes 23

Laudus Mondrian Global Equity Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

Cost

Value

Holdings by Category

($)

.0%

Common Stock

5,023,593

4,144,604

.5%

Short-Term Investment

108,000

.5%

Total Investments

5,131,593

4,252,604

.5%

Other Assets and Liabilities, Net

23,230

100

.0%

Net Assets

4,275,834


	Number		Value
Security	of Shares		($)





Common Stock 97.0% of net assets


Australia 4.3%


Banks 1.0%
National Australia Bank Ltd.		2,175		43,897


Food, Beverage & Tobacco 1.0%
Foster’s Group Ltd.		9,728		43,463


Materials 0.9%
Amcor Ltd.		8,926		39,251


Telecommunication Services 1.4%
Telstra Corp., Ltd.		16,917		56,756

				183,367


Belgium 0.5%


Diversified Financials 0.5%
Fortis		3,366		21,298


Finland 0.6%


Materials 0.6%
UPM-Kymmene Oyj		1,700		26,524


France 7.6%


Automobiles & Components 0.6%
Renault S.A.		394		25,109


Banks 1.3%
Societe Generale		633		56,862


Energy 2.6%
Total S.A.		1,836		111,537


Food & Staples Retailing 1.7%
Carrefour S.A.		1,502		70,830


Telecommunication Services 1.4%
France Telecom S.A.		2,217		62,186

				326,524


Germany 3.0%


Telecommunication Services 1.1%
Deutsche Telekom AG - Reg’d		3,196		48,538


Utilities 1.9%
RWE AG		843		80,369

				128,907


Italy 1.5%


Banks 1.5%
UniCredit S.p.A.		17,074		63,846


Japan 12.6%


Food & Staples Retailing 1.8%
Seven & I Holdings Co., Ltd.		2,700		77,571


Household & Personal Products 0.6%
Kao Corp.		1,000		26,817


Insurance 1.7%
Tokio Marine Holdings, Inc.		2,000		73,428


Materials 1.0%
Nitto Denko Corp.		1,700		43,249


Pharmaceuticals & Biotechnology 3.2%
Astellas Pharma, Inc.		1,400		58,827
Takeda Pharmaceutical Co., Ltd.		1,500		75,526

				134,353


Technology Hardware & Equipment 1.7%
CANON, Inc.		1,900		72,031


Telecommunication Services 1.5%
Nippon Telegraph & Telephone Corp.		14		62,488


Transportation 1.1%
West Japan Railway Co.		11		47,107

				537,044


Netherlands 2.5%


Diversified Financials 1.6%
ING Groep N.V. CVA		3,174		68,044


Media 0.9%
Reed Elsevier N.V.		2,690		39,906

				107,950


Singapore 2.4%


Banks 1.4%
Oversea-Chinese Banking Corp., Ltd.		12,000		60,588


Telecommunication Services 1.0%
Singapore Telecommunications Ltd.		18,000		41,143

				101,731

See financial notes 25

Laudus Mondrian Global Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Spain 4.5%


Telecommunication Services 2.9%
Telefonica S.A.		5,236		124,499


Utilities 1.6%
Iberdrola S.A.		6,546		66,501

				191,000


Switzerland 2.5%


Pharmaceuticals & Biotechnology 2.5%
Novartis AG - Reg’d.		2,013		105,983


Taiwan 0.7%


Semiconductors & Semiconductor Equipment 0.7%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		3,417		32,017


United Kingdom 13.9%


Automobiles & Components 0.7%
GKN plc		7,886		28,010


Banks 2.3%
HBOS plc		9,696		21,998
Lloyds TSB Group plc		10,282		41,316
Royal Bank of Scotland Group plc		11,515		37,146

				100,460


Energy 4.2%
BP plc		9,650		80,368
Royal Dutch Shell plc, Class A		3,318		97,755

				178,123


Food, Beverage & Tobacco 2.5%
Unilever plc		3,918		106,534


Insurance 0.6%
Aviva plc		3,025		26,312


Pharmaceuticals & Biotechnology 3.6%
GlaxoSmithKline plc		7,057		152,874

				592,313


United States 40.4%


Banks 0.4%
Wachovia Corp.		5,300		18,550


Capital Goods 5.2%
3M Co.		1,100		75,141
General Electric Co.		5,700		145,350

				220,491


Diversified Financials 6.0%
Bank of America Corp.		4,500		157,500
Citigroup, Inc.		4,900		100,499

				257,999


Energy 3.7%
Chevron Corp.		1,900		156,712


Food, Beverage & Tobacco 4.6%
ConAgra Foods, Inc.		4,000		77,840
H.J. Heinz Co.		2,400		119,928

				197,768


Materials 2.2%
Alcoa, Inc.		4,100		92,578


Media 0.5%
CBS Corp., Class B		1,400		20,412


Pharmaceuticals & Biotechnology 7.4%
Merck & Co., Inc.		2,600		82,056
Pfizer, Inc.		5,900		108,796
Wyeth		3,400		125,596

				316,448


Retailing 2.1%
Genuine Parts Co.		2,200		88,462


Software & Services 4.8%
Microsoft Corp.		5,500		146,795
Oracle Corp. *		2,900		58,899

				205,694


Telecommunication Services 3.5%
AT&T, Inc.		1,500		41,880
Verizon Communications, Inc.		3,400		109,106

				150,986

				1,726,100

Total Common Stock (Cost $5,023,593)				4,144,604



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


Short-Term Investment 2.5% of net assets


Repurchase Agreement 2.5%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.20%, with a maturity value of $108,004 (fully collateralized by Federal National Mortgage Association with a value of $115,252)		108,000		108,000

Total Short-Term Investment (Cost $108,000)				108,000


End of Investments.
At 09/30/08, the tax basis cost of the fund’s investments was $5,131,593 and the unrealized appreciation and depreciation were $31,341 and ($910,330), respectively, with a net unrealized depreciation of ($878,989).
At 09/30/08, the prices of certain foreign securities held by the fund aggregating $2,386,487 were adjusted from their closing market prices following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.

ADR - American Depositary Receipt.

In addition to the above, the fund held the following at 09/30/08.

Laudus Mondrian Global Equity Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $5,131,593)		$4,252,604
Cash		939
Foreign currency, at value (cost $6,464)		6,348
Receivables:
Fund shares sold		100
Dividends		16,894
Due from investment adviser		845
Foreign tax reclaims		26
Interest		4
Unrealized gains on forward foreign currency contracts	+	44,454


Total assets		4,322,214


Liabilities
Payables:
Investments bought		21,909
Distribution and shareholder services fees		9
Accrued expenses	+	24,462


Total liabilities		46,380


Net Assets
Total assets		4,322,214
Total liabilities	−	46,380


Net assets		$4,275,834

Net Assets by Source
Capital received from investors		5,084,954
Net investment income not yet distributed		34,566
Net realized capital losses		(8,788	)
Net unrealized capital losses		(834,898	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$29,877		3,558			$8.40
Select Shares	$44,988		5,355			$8.40
Institutional Shares	$4,200,969		500,000			$8.40

28 See financial notes

Laudus Mondrian Global Equity Fund

Statement of

Operations

For June 17, 2008 * through September 30, 2008; unaudited.




Investment Income
Dividends (net of foreign withholding taxes of $1,985)		$48,497
Interest	+	454


Total Investment Income		48,951


Net Realized Gains and Losses
Net realized gains on investments		3,857
Net realized losses on foreign currency transactions	+	(12,645	)


Net realized losses		(8,788	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(878,989	)
Net unrealized gains on foreign currency translations	+	44,091


Net unrealized losses		(834,898	)


Expenses
Investment adviser fees		11,673
Accounting and administration fees		10,364
Professional fees		8,811
Custodian fees		7,255
Transfer agent fees		7,105
Shareholder reports		5,785
Trustees’ fees		1,723
Registration fees		1,037
Distribution and shareholder services fees (Investor Shares)		19
Sub-Accounting fees
Investor Shares		12
Select Shares		17
Other expenses	+	979


Total expenses		54,780
Expense reduction by adviser	−	40,267
Custody credits	−	128


Net expenses		14,385


Increase (Decrease) in Net Assets from Operations
Total investment income		48,951
Net expenses	−	14,385


Net investment income		34,566
Net realized losses		(8,788	)
Net unrealized losses	+	(834,898	)


Decrease in net assets from operations		($809,120	)


*	Commencement of operations.

See financial notes 29

Laudus Mondrian Emerging Markets Fund

Financial Statements

Financial Highlights


	4/1/08-			11/2/07¹-
Investor Shares	9/30/08*			3/31/08


Per—Share Data ($)

Net asset value at beginning of period		9.29			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.09			0.02
Net realized and unrealized gains (losses)		(2.23	)		(0.72	)

Total from investment operations		(2.14	)		(0.70	)
Less distributions:
Distributions from net investment income		—			(0.01	)

Net asset value at end of period		7.15			9.29

Total return (%)		(23.04	)²		(6.98	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.80	³		1.82	^3,4
Gross operating expenses		2.20	³		2.79	³
Net investment income (loss)		2.20	³		0.89	³
Portfolio turnover rate		22	²		49	²
Net assets, end of period ($ x 1,000)		3,342			1,937


	4/1/08-			11/2/07¹-
Select Shares	9/30/08*			3/31/08


Per—Share Data ($)

Net asset value at beginning of period		9.31			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.12			0.02
Net realized and unrealized gains (losses)		(2.26	)		(0.70	)

Total from investment operations		(2.14	)		(0.68	)
Less distributions:
Distributions from net investment income		—			(0.01	)

Net asset value at end of period		7.17			9.31

Total return (%)		(22.99	)²		(6.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.52	³		1.54	^3,5
Gross operating expenses		2.16	³		2.74	³
Net investment income (loss)		2.40	³		0.69	³
Portfolio turnover rate		22	²		49	²
Net assets, end of period ($ x 1,000)		666			760

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 1.80%, if interest expense had not been included.

⁵ The ratio of net operating expenses would have been 1.52%, if interest expense had not been included.

See financial notes 31

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)


	86	.5%	Common Stock		33,475,910		25,950,932
	10	.4%	Preferred Stock		4,273,339		3,126,688
	1	.6%	Short-Term Investment		469,000		469,000

	98	.5%	Total Investments		38,218,249		29,546,620
	1	.5%	Other Assets and Liabilities, Net				448,342

	100	.0%	Net Assets				29,994,962


	Number		Value
Security	of Shares		($)





Common Stock 86.5% of net assets


Argentina 1.7%


Materials 1.7%
Tenaris S.A. ADR		13,469		502,259


Brazil 7.5%


Energy 2.5%
Petroleo Brasileiro S.A. ADR		19,900		744,658


Software & Services 2.4%
Redecard S.A.		55,300		723,035


Utilities 2.6%
CPFL Energia S.A. ADR		14,000		782,040

				2,249,733


China 13.6%


Banks 4.0%
China Construction Bank Corp., Class H		1,811,000		1,208,419


Telecommunication Services 3.0%
China Mobile Ltd.		89,500		896,582


Transportation 6.6%
China Merchants Holdings International Co., Ltd.		206,000		660,792
China Shipping Development Co. Ltd., Class H		524,000		687,903
Cosco Pacific Ltd.		556,000		638,132

				1,986,827

				4,091,828


Columbia 2.2%


Banks 2.2%
Bancolombia S.A. ADR		23,700		674,265


Egypt 4.0%


Telecommunication Services 4.0%
Orascom Telecom Holding S.A.E. -Reg’d GDR		15,380		549,300
Telecom Egypt		241,167		652,067

				1,201,367


India 3.2%


Telecommunication Services 3.2%
Bharti Airtel Ltd. *		57,068		968,140


Malaysia 2.0%


Banks 2.0%
Public Bank Berhad		204,400		594,515


Mexico 6.2%


Food, Beverage & Tobacco 2.8%
Grupo Modelo, S.A. de C.V., Series C		199,100		846,537


Telecommunication Services 3.4%
America Movil SAB de C.V., Series L ADR		21,600		1,001,376

				1,847,913


Philippines 3.2%


Telecommunication Services 3.2%
Philippine Long Distance Telephone Co. ADR		16,800		946,512


Republic of Korea 3.6%


Banks 3.6%
Hana Financial Group, Inc.		19,760		464,704
KB Financial Group, Inc. ADR *		1,500		68,535
Kookmin Bank		12,446		556,144

				1,089,383


Russia 10.1%


Energy 6.1%
Gazprom - Reg’d ADR		25,400		786,130
LUKOIL ADR		18,000		1,058,400

				1,844,530


Materials 1.4%
Evraz Group S.A. -Reg’d GDR		10,750		406,350


Telecommunication Services 2.6%
Mobile TeleSystems ADR		14,100		789,741

				3,040,621

See financial notes 33

Laudus Mondrian Emerging Markets Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



South Africa 5.9%


Energy 2.5%
Sasol		17,641		752,931


Materials 2.0%
Impala Platinum Holdings Ltd.		29,115		594,365


Telecommunication Services 1.4%
Telkom South Africa Ltd.		32,523		416,131

				1,763,427


Taiwan 13.9%


Banks 3.4%
Chinatrust Financial Holding Co., Ltd.		890,565		488,718
Mega Financial Holding Co., Ltd.		1,153,000		528,715

				1,017,433


Semiconductors & Semiconductor Equipment 6.6%
MediaTek, Inc.		70,410		730,109
Taiwan Semiconductor Manufacturing Co., Ltd.		72,221		121,117
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		119,792		1,122,451

				1,973,677


Technology Hardware & Equipment 1.9%
Asustek Computer, Inc.		294,716		583,283


Telecommunication Services 2.0%
Chunghwa Telecom Co., Ltd. ADR *		24,763		586,140

				4,160,533


Thailand 2.8%


Energy 2.8%
PTT Public Co., Ltd.		113,200		829,108


Turkey 6.6%


Banks 3.1%
Akbank T.A.S.		182,341		933,500


Telecommunication Services 3.5%
Turkcell Iletisim Hizmetleri A/S		173,300		1,057,828

				1,991,328

Total Common Stock (Cost $33,475,910)				25,950,932




Preferred Stock 10.4% of net assets


Brazil 6.4%


Banks 3.5%
Itausa - Investimentos Itau S.A.		209,767		1,049,442


Materials 2.9%
Companhia Vale do Rio Doce ADR (Vale)		48,900		865,530

				1,914,972


Republic of Korea 4.0%


Automobiles & Components 1.8%
Hyundai Motor Co.		25,360		547,297


Semiconductors & Semiconductor Equipment 2.2%
Samsung Electronics Co., Ltd.		2,107		664,419

				1,211,716

Total Preferred Stock (Cost $4,273,339)				3,126,688



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


Short-Term Investment 1.6% of net assets


Repurchase Agreement 1.6%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.2%, with a maturity value of 470,016 (fully collateralized by Federal Home Loan Mortgage Corp. with a value of $482,925.)		469,000		469,000

Total Short-Term Investment (Cost $469,000)				469,000


End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $39,199,807 and the unrealized appreciation and depreciation were $122,396 and ($9,775,583), respectively, with a net unrealized depreciation of ($9,653,187).

At 09/30/08, the prices of certain foreign securities held by the fund aggregating $15,295,111 were adjusted from their closing market prices following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

Reg’d — Registered

34 See financial notes

Laudus Mondrian Emerging Markets Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $38,218,249)		$29,546,620
Cash		779
Foreign currency, at value (cost $330,430)		328,340
Receivables:
Investments sold		51,229
Fund shares sold		47,816
Dividends		89,138
Interest		16
Prepaid expenses	+	3,861


Total assets		30,067,799


Liabilities
Payables:
Investments bought		22,329
Investment adviser fees		2,794
Fund shares redeemed		40,340
Distribution and shareholder services fees	+	7,374


Total liabilities		72,837


Net Assets
Total assets		30,067,799
Total liabilities	−	72,837


Net assets		$29,994,962

Net Assets by Source
Capital received from investors		39,933,948
Net investment income not yet distributed		373,319
Net realized capital losses		(1,638,016	)
Net unrealized capital losses		(8,674,289	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$3,341,639		467,321			$7.15
Select Shares	$666,026		92,849			$7.17
Institutional Shares	$25,987,297		3,626,623			$7.17

See financial notes 35

Laudus Mondrian Emerging Markets Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends (net of foreign withholding taxes of $54,986)		$580,371
Interest	+	10,765


Total Investment Income		591,136


Net Realized Gains and Losses
Net realized losses on investments		(825,284	)
Net realized losses on foreign currency transactions	+	(41,844	)


Net realized losses		(867,128	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(8,534,295	)
Net unrealized losses on foreign currency translations	+	(328	)


Net unrealized losses		(8,534,623	)


Expenses
Investment adviser fees		171,803
Professional fees		23,582
Custodian fees		21,239
Accounting and administration fees		18,624
Transfer agent fees		16,424
Shareholder reports		6,104
Distribution and shareholder services fees (Investor Shares)		4,997
Registration fees		3,673
Trustees’ fees		3,272
Interest expense		866
Sub-Accounting fees
Investor Shares		1,278
Select Shares		1,400
Other expenses	+	1,397


Total expenses		274,659
Expense reduction by adviser	−	59,626
Custody credits	−	118


Net expenses		214,915


Increase (Decrease) in Net Assets from Operations
Total investment income		591,136
Net expenses	−	214,915


Net investment income		376,221
Net realized losses		(867,128	)
Net unrealized losses	+	(8,534,623	)


Decrease in net assets from operations		($9,025,530	)

36 See financial notes

Laudus Mondrian Emerging Markets Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/01/08-9/30/08			*11/2/07-3/31/08**
Net investment income			$376,221			$42,705
Net realized losses			(867,128	)		(786,482	)
Net unrealized losses	+		(8,534,623	)		(139,666	)


Decrease in net assets from operations			(9,025,530	)		(883,443	)


Distributions to Shareholders
Distributions from net investment income
Investor Shares			—			595
Select Shares			—			1,121
Institutional Shares	+		—			28,590


Total distributions from net investment income			—			30,306

Transactions in Fund Shares


		4/01/08-9/30/08						*11/2/07-3/31/08**
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			362,543			$3,531,634			221,053			$2,073,502
Select Shares			65,084			612,017			97,917			934,439
Institutional Shares	+		1,834,156			16,448,834			2,608,232			25,103,782


Total shares sold			2,261,783			$20,592,485			2,927,202			$28,111,723


Shares Reinvested
Investor Shares			—			—			62			$571
Select Shares			—			—			122			1,121
Institutional Shares	+		—			—			3,100			28,584


Total shares reinvested			—			—			3,284			$30,276


Shares Redeemed
Investor Shares			(103,739	)		($900,639	)		(12,598	)		($113,103	)
Select Shares			(53,848	)		(461,232	)		(16,426	)		(152,547	)
Institutional Shares	+		(296,358	)		(2,320,289	)		(522,507	)		(4,852,433	)


Total shares redeemed			(453,945	)		($3,682,160	)		(551,531	)		($5,118,083	)

Net transactions in fund shares			1,807,838			$16,910,325			2,378,955			$23,023,916


Shares Outstanding and Net Assets
		4/01/08-9/30/08						*11/2/07-3/31/08**
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			2,378,955			$22,110,167			—			—
Total increase	+		1,807,838			7,884,795			2,378,955			22,110,167


End of period			4,186,793			$29,994,962			2,378,955			$22,110,167


Net investment income not yet distributed/						$373,319						($2,902	)
Distribution in excess of net investment income


*	Commencement of operations

See financial notes 37

Laudus Mondrian International Fixed Income Fund

Financial Statements

Financial Highlights


	4/01/08-			11/2/07¹-
Investor Shares	9/30/08*			3/31/08


Per—Share Data ($)

Net asset value at beginning of period		11.28			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.08			0.05
Net realized and unrealized gains (losses)		(0.93	)		1.27

Total from investment operations		(0.85	)		1.32
Less distributions:
Distributions from net investment income		(0.08	)		(0.04	)

Net asset value at end of period		10.35			11.28

Total return (%)		(7.50	)²		13.27	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.11	^3,4		1.10	³
Gross operating expenses		1.19	³		1.57	³
Net investment income (loss)		1.63	³		1.61	³
Portfolio turnover rate		32	²		1	²
Net assets, end of period ($ x 1,000,000)		23,557			16,148


	4/01/08-			11/2/07¹-
Select Shares	9/30/08*			3/31/08


Per—Share Data ($)

Net asset value at beginning of period		11.29			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.10			0.06
Net realized and unrealized gains (losses)		(0.94	)		1.28

Total from investment operations		(0.84	)		1.34
Less distributions:
Distributions from net investment income		(0.10	)		(0.05	)

Net asset value at end of period		10.35			11.29

Total return (%)		(7.48	)²		13.42	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.83	^3,5		0.82	³
Gross operating expenses		0.98	³		1.31	³
Net investment income (loss)		1.90	³		1.89	³
Portfolio turnover rate		32	²		1	²
Net assets, end of period ($ x 1,000,000)		23,182			20,078

* Unaudited

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 1.10% if interest expense had not been included.

⁵ The ratio of net operating expenses would have been 0.82% if interest expense had not been included.

38 See financial notes

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

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


				Cost		Value
Holdings by Category				($)		($)


	86	.7%	Government Bonds		81,385,302		78,245,522
	5	.5%	Government Agency Obligations		4,724,940		4,965,807
	3	.6%	Corporate Bonds		3,723,629		3,231,642
	1	.1%	Covered Bond		951,581		1,005,505
	0	.6%	Short-Term Investment		504,000		504,000

	97	.5%	Total Investments		91,289,452		87,952,476
	2	.5%	Other Assets and Liabilities, Net				2,286,399

	100	.0%	Net Assets				90,238,875


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





Government Bonds 86.7% of net assets


Austria 4.6%
Austria Government Bond
3.50%, 07/15/15		3,100,000		4,188,666


Belgium 5.4%
Belgium Government Bond
3.75%, 09/28/15		800,000		1,080,140
5.50%, 09/28/17		2,500,000		3,766,774

				4,846,914


France 5.4%
France Government Bond OAT
4.00%, 10/25/09		530,000		748,717
4.00%, 04/25/13		860,000		1,208,485
4.00%, 04/25/14		370,000		518,294
5.00%, 10/25/16		1,200,000		1,775,004
5.75%, 10/25/32		400,000		639,763

				4,890,263


Germany 1.8%
Bundesrepublik Deutschland
4.50%, 01/04/13		980,000		1,417,291
4.75%, 07/04/34		120,000		171,368

				1,588,659


Italy 16.3%
Italy Government International Bond
0.65%, 03/20/09		120,000,000		1,127,299
2.75%, 06/15/10		2,500,000		3,448,513
4.75%, 02/01/13		2,400,000		3,421,688
4.25%, 08/01/14		700,000		976,013
4.50%, 06/08/15		60,000,000		666,175
4.50%, 02/01/18		2,500,000		3,454,633
4.00%, 02/01/37		1,400,000		1,618,991

				14,713,312


Japan 39.9%
Japan Government Five Year Bond
0.50%, 06/20/10		30,000,000		281,161
Japan Government Ten Year Bond
1.20%, 06/20/11		350,000,000		3,321,737
1.40%, 09/20/11		430,000,000		4,104,291
1.10%, 09/20/12		550,000,000		5,196,731
1.20%, 09/20/12		530,000,000		5,027,094
0.50%, 06/20/13		400,000,000		3,670,872
0.90%, 06/20/13		580,000,000		5,422,868
1.30%, 12/20/14		331,000,000		3,141,928
1.50%, 03/20/15		400,000,000		3,843,629
Japan Government Thirty Year Bond
2.40%, 12/20/34		210,000,000		2,019,700

				36,030,011


Mexico 4.1%
Mexican Bonos
9.00%, 12/20/12		18,700,000		1,752,378
8.00%, 12/07/23		22,200,000		1,952,297

				3,704,675


Netherlands 9.2%
Netherlands Government Bond
5.50%, 07/15/10		440,000		638,441
4.25%, 07/15/13		2,700,000		3,838,558
3.75%, 07/15/14		2,750,000		3,806,023

				8,283,022

Total Government Bonds (Cost $81,385,302)				78,245,522




Government Agency Obligations 5.5% of net assets


Germany 0.7%
Kreditanstalt fuer Wiederraufbau
2.05%, 09/21/09		70,000,000		665,294

40 See financial notes

Laudus Mondrian International Fixed Income Fund

Portfolio Holdings (Unaudited) continued


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



Japan 4.8%
Japan Finance Corp. for Municipal Enterprises
1.35%, 11/26/13		160,000,000		1,522,089
1.55%, 02/21/12		290,000,000		2,778,424

				4,300,513

Total Government Agency Obligations (Cost $4,724,940)				4,965,807




Corporate Bonds 3.6% of net assets


Netherlands 0.7%
ING Bank N.V.
6.13%, 05/29/09 (a)(b)		490,000		615,859


United Kingdom 2.5%
HSBC Holdings plc
6.25%, 03/19/18		500,000		695,529
Lloyds TSB Bank plc
5.63%, 03/05/13 (a)(b)		620,000		801,062
SL Finance plc
6.38%, 07/12/09 (a)(b)		290,000		368,029
Standard Chartered Bank
5.88%, 09/26/17		350,000		434,772

				2,299,392


United States 0.4%
Zurich Finance USA, Inc.
4.50%, 06/15/09 (a)(b)		280,000		316,391

Total Corporate Bonds (Cost $3,723,629)				3,231,642




Covered Bond 1.1% of net assets


Ireland 1.1%
Depfa ACS Bank
1.65%, 12/20/16		110,000,000		1,005,505

Total Covered Bonds (Cost $951,581)				1,005,505




Short-Term Investment 0.6% of net assets


Repurchase Agreement 0.6%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.20%, with a maturity value of $504,017 (fully collateralized by Federal National Mortgage Association with a value of $518,340)		504,000		504,000

Total Short-Term Investment (Cost $504,000)				504,000


End of Investments.

At 09/30/08 the tax basis cost of the fund’s investments was $91,289,452, and the unrealized appreciation and depreciation were $567,638 and ($3,904,614), respectively, with a net depreciation of ($3,336,976).


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

In addition to the above, the fund held the following at

09/30/08.

Laudus Mondrian International Fixed Income Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $91,289,452)		$87,952,476
Cash		334
Foreign currency, at value (cost $348,858)		336,127
Receivables:
Interest		678,912
Fund shares sold		153,222
Unrealized gains on forward foreign currency contracts		1,555,026
Prepaid expenses	+	5,746


Total assets		90,681,843


Liabilities
Payables:
Investment adviser fees		12,521
Fund shares redeemed		306,610
Distributions to shareholders		35,796
Distribution and shareholder services fees		4,588
Unrealized losses on forward foreign currency contracts		56,230
Accrued expenses	+	27,223


Total liabilities		442,968


Net Assets
Total assets		90,681,843
Total liabilities	−	442,968


Net assets		$90,238,875
Net Assets by Source
Capital received from investors		92,712,748
Net investment income not yet distributed		107,251
Net realized capital losses		(692,036	)
Net unrealized capital losses		(1,889,088	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$23,556,967		2,276,916			$10.35
Select Shares	$23,182,477		2,238,836			$10.35
Institutional Shares	$43,499,431		4,200,078			$10.36

42 See financial notes

Laudus Mondrian International Fixed Income Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Interest		1,356,555


Net Realized Gains and Losses
Net realized losses on investments		(584,578	)
Net realized losses on foreign currency transactions	+	(107,458	)


Net realized losses		(692,036	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(9,319,067	)
Net unrealized gains on foreign currency translations	+	1,481,450


Net unrealized losses		(7,837,617	)


Expenses
Investment adviser fees		298,827
Distribution and shareholder services fees (Investor Shares)		28,402
Professional fees		25,239
Shareholder reports		24,670
Transfer agent fees		17,286
Accounting and administrator fees		16,698
Registration fees		15,661
Custodian fees		14,509
Sub-accounting fees
Investor Shares		9,635
Select Shares		15,209
Trustees’ fees		4,031
Interest expense		4,014
Other expenses	+	2,874


Total expenses		477,055
Expense reduction by adviser	−	51,657
Custody credits	−	7


Net expenses		425,391


Increase (Decrease) in Net Assets from Operations
Total investment income		1,356,555
Net expenses	−	425,391


Net investment income		931,164
Net realized losses		(692,036	)
Net unrealized losses	+	(7,837,617	)


Decrease in net assets from operations		($7,598,489	)

See financial notes 43

Laudus Mondrian International Fixed Income Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/01/08-9/30/08			*11/2/07-3/31/08**
Net investment income			$931,164			$338,363
Net realized losses			(692,036	)		(77,981	)
Net unrealized gains (losses)	+		(7,837,617	)		5,948,529


Increase (Decrease) in net assets from operations			(7,598,489	)		6,208,911


Distributions to Shareholders
Distributions from net investment income
Investor Shares			190,482			33,714
Select Shares			213,821			50,639
Institutional Shares	+		455,706			142,251


Total distributions from net investment income			860,009			226,604

Transactions in Fund Shares


		4/1/08-9/30/08						*11/2/07-3/31/08**
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			1,107,956			$12,048,293			1,546,672			$16,580,538
Select Shares			844,950			9,165,337			1,854,202			19,621,852
Institutional Shares	+		1,073,335			11,689,988			4,705,565			49,150,016


Total shares sold			3,026,241			$32,903,618			8,106,439			$85,352,406


Shares Reinvested
Investor Shares			16,735			$174,730			2,878			$31,299
Select Shares			17,722			185,075			3,845			41,629
Institutional Shares	+		42,346			443,465			12,658			136,064


Total shares reinvested			76,803			$803,270			19,381			$208,992


Shares Redeemed
Investor Shares			(279,305	)		($2,982,833	)		(118,020	)		($1,271,229	)
Select Shares			(402,579	)		(4,289,573	)		(79,304	)		(837,623	)
Institutional Shares	+		(1,541,346	)		(16,176,862	)		(92,480	)		(995,100	)


Total shares redeemed			(2,223,230	)		($23,449,268	)		(289,804	)		($3,103,952	)

Net transactions in fund shares			879,814			$10,257,620			7,836,016			$82,457,446


Shares Outstanding and Net Assets
		4/01/08-9/30/08						*11/2/07-3/31/08**
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			7,836,016			$88,439,753			—			$-
Total increase	+		879,814			1,799,122			7,836,016			88,439,753


End of period			8,715,830			$90,238,875			7,836,016			$88,439,753


Net investment income not yet distributed						$107,251						$36,096


*	Commencement of operations.

44 See financial notes

Laudus Mondrian Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

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



Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. 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 Long/Short Equity Fund		Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund

The Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund commenced operations on November 2, 2007. The Laudus Mondrian International Equity Fund and the Laudus Mondrian Global Equity Fund commenced operations on June 17, 2008 and each Fund offers three share classes: Investor Shares, Select Shares and Institutional Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums. Shares are bought and sold at net asset value, or NAV, which is the price for all outstanding shares. Each Fund is authorized to issue an unlimited number of Institutional Shares, Investor Shares and Select 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 separate voting rights on matters pertaining solely to that class of shares.

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

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the Funds used in the preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America.

(a) Security Valuation:

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


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the current exchange rate. The Funds do not isolate the portion of the fluctuation on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

	•	Securities for which no quoted value is available or when a significant event has occurred between the time of the security’s last close and the time the Funds calculate net asset value: valued at fair value, as determined in good faith by the Funds’ investment adviser using guidelines adopted by the Funds’ Board of Trustees and the Pricing Committee. Some of the more common reasons that may necessitate that a security be valued at fair value include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security’s primary pricing source is not able or willing to provide a price, or certain foreign securities closing market prices adjusted for changes in value that may occur between the close of foreign exchange and the time at which Fund shares

Laudus Mondrian Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


		are priced. The Board of Trustees regularly reviews fair value determinations, made by the Funds, pursuant to the procedures.


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

	•	Futures and forwards currency contracts: valued at their settlement prices as of the close of their exchanges (for futures) or at a market value based on that day’s exchange rates (for forwards). When a Fund closes out a futures or forwards position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

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

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

(b) Portfolio Investments:

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

Futures Contract: The Funds may invest in futures contracts. Futures contracts involve certain risks because they can be very sensitive to market movements.

One risk is that the price of a futures contract may not move in perfect correlation with the price of the underlying securities. Another risk is that, at certain times, it may be impossible for a Fund to close out a position in a futures contract, due to a difference in trading hours or to market conditions that may reduce the liquidity for a futures contract or its underlying securities. The potential for losses associated with futures contracts may exceed amounts recorded in the Statement of Assets and Liabilities.

Because futures carry inherent risks, a Fund must give the broker a deposit of cash and/or securities (the “initial margin”) whenever it enters into the futures contract. The amount of the deposit may vary from one contract to another, but it is generally a percentage of the contract amount.

Futures are traded publicly on exchanges, and their market value changes daily. A Fund records the change daily in market value of futures, and also the change in the amount of margin deposit required (“due to/from broker”).

Forward Currency Contract: The Funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards are similar to futures except that they are not publicly traded, but are agreements directly between two parties.

As with futures, forwards involve certain risks that are not fully reflected in the Fund’s financial statements. If counter-parties to the contracts or if the value of the foreign currency changes unfavorably, the Funds could sustain a loss.

Repurchase Agreement: The Funds may enter into repurchase agreement. In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that it be sold back in the future. The date, price and other conditions are all specified when the agreement is created.

The Funds’ repurchase agreements will be fully collateralized by U.S. government securities or U.S. Government Agency securities. All collateral is held by the Funds’ custodian (or, with tri-party agreements, the agent’s bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement.

(c) Security Transactions:

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

Laudus Mondrian Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date.

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying mutual funds are recorded on the date they are effective (the ex-dividend date), although the Funds record certain foreign security dividends on the day they learn of the ex-dividend date.

(e) Expenses:

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

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

(f) Distributions to Shareholders:

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

(g) 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 (if any) are disclosed in the Statement of Operations as a reduction to the Fund’s operating expenses.

(h) Accounting Estimates:

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

(i) Federal Income Taxes:

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

(j) Indemnification:

Under the Funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts with their vendors and others that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect the risk of loss to be remote.

(k) New Accounting Standards:

The Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund adopted Financial Accounting Standard Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective April 1, 2008. The Laudus Mondrian International Equity Fund and the Laudus Mondrian Global Equity Fund adopted FAS 157 when they commenced operations on June 17, 2008. FAS 157 defines fair value, establishes a

Laudus Mondrian Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

framework for measuring fair value and expands disclosures about fair value measurements. Management has concluded that the adoption of FAS 157 is not expected to have a material impact on the fund’s financial statements.

Various inputs are used in determining the value of the fund’s investments. FAS 157 establishes a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:


	•	Level 1 — quoted prices in active markets for identical securities

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

	•	Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s net assets as of September 30, 2008:


	Investment in Securities*
							Laudus
	Laudus		Laudus		Laudus		Mondrian
	Mondrian		Mondrian		Mondrian		International
	International		Global		Emerging		Fixed
Valuation Inputs	Equity Fund		Equity Fund		Markets Fund		Income Fund

Level 1 — Quoted prices		$88,518		$1,758,117		$13,782,509		$—
Level 2 — Other significant observable inputs		4,318,776		2,494,487		15,764,111		87,952,476
Level 3 — Significant unobservable inputs		—		—		—		—
Total		$4,407,294		$4,252,604		$29,546,620		$87,952,476


*	Other financial instruments include forward contracts of $43,856, $44,454 and $1,498,796 for the Laudus Mondrian International Equity Fund, the Laudus Mondrian Global Equity Fund and the Laudus Mondrian International Fixed Income Fund, respectively.

In March 2008, the Financial Accounting Standards board (“FASB”) issued Statements of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about Funds’ derivative and hedging activities. Management is currently evaluating the impact of the adoption of SFAS 161 on the funds’ financial statement disclosures.

3. Affiliates and Affiliated Transactions:

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

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

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


	First $1 billion		Over $1 billion

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

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

Laudus Mondrian Funds

Financial Notes, unaudited (continued)

3. Affiliates and Affiliated Transactions (continued):

CSIM has contractually agreed, until at least July 30, 2010, to waive a portion of its management fee and bear certain expenses of each Fund. As such, CSIM further agrees to reimburse the Funds to limit the annual expenses, exclusive of nonrecurring account fees, fees on securities transactions such as exchange fees, dividends and interest on securities sold short, service fees, interest (overdraft charges), taxes, brokerage commissions, other expenditures which are capitalized in accordance with generally accepted accounting principles, and other extraordinary expenses not incurred in the ordinary course of the Funds’ business as follows:

Laudus

Mondrian

Emerging

International

Global

Markets

Fixed

Equity Fund

Fund

Income Fund

Investor Shares

1.40%

1.80%

1.10%

Select Shares

1.12%

1.52%

0.82%

Institutional Shares

1.05%

1.45%

0.75%

Any amounts waived or reimbursed in a particular fiscal year will be subject to repayment through the next two fiscal years, to the extent that the repayment will not cause the Funds’ net expenses to exceed the current limit (as stated in CSIM’s contractual undertaking) during the respective year. As of September 30, 2008, the balance of recoupable expenses is as follows:

Laudus

Mondrian

Emerging

International

Global

Markets

Fixed

Expires

Equity Fund

Fund

Income Fund

3/31/10

$—

$80,048

$84,455

3/31/11

42,219

40,267

59,626

51,657

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

5. Board of Trustees

Trustees may include people who are officers and/or directors of other fund families managed by 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 these persons for their service as trustees, but did pay non-interested persons (Independent Trustees), as noted in each Fund’s Statement of Operations.

A Retirement plan was instituted for certain Independent Trustees of the Trust. In September 2006 the Trustees voted to close the Retirement Plan to new participants as of June 26, 2006 and to discontinue making contributions to the Retirement Plan after the plan year ending March 31, 2007. All other terms of the Retirement Plan, including without limitation provisions relating to vesting and payment upon termination of service, remain in effect. 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 and including a final one-half year

Laudus Mondrian Funds

Financial Notes, unaudited (continued)

5. Board of Trustees (continued):

credit for service during the plan year ending March 31, 2007. Beginning April 1, 2005, each Independent Trustee was permitted to make a one-time election to have the $10,000 attributable to service for the coming year and previously accrued benefits adjusted up or down at the end of each subsequent year based on the unweighted average performance of the share class with the lowest OER of each fund of the Trust. After the closure of the Retirement Plan, the previously accrued benefits that an Independent Trustee had elected to have adjusted by the performance of the funds would continue to be adjusted for performance as provided under the Retirement Plan. 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.

6. Borrowing from Banks:

The Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund have access to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Corporation. Interest is calculated based on the market rates at the time of borrowing. There were no borrowings from the line of credit for the period ended September 30, 2008.

7. Purchases and Sales of Investment Securities:

For the period ended September 30, 2008, purchases and sales of securities (excluding short-term obligations) were as follows:


	Purchases		Sales

Laudus Mondrian International Equity Fund		$5,349,057		$108,682
Laudus Mondrian Global Equity Fund		$5,189,521		$169,785
Laudus Mondrian Emerging Markets Fund		$24,454,437		$5,891,587
Laudus Mondrian International Fixed Income Fund		$42,947,220		$29,807,619

8. Redemption Fee:

The Funds charge a redemption fee of 2.00% on shares sold or exchanged 30 days or less after purchasing them. Such amounts are net of the redemption proceeds on the Statement of Changes in Net Assets. The redemption fees charged during the current report period are:


	Current Period			Prior Period
	(4/1/08-9/30/08)			(11/02/07-3/31/08)

Laudus Mondrian International Equity Fund
Investor shares		$0	*		$—
Select shares		—			—
Institutional shares		—			—
Laudus Mondrian Global Equity Fund
Investor shares		$—			$—
Select shares		—			—
Institutional shares		—			—
Laudus Mondrian Emerging Markets Fund
Investor shares		$644			$284
Select shares		$36			946
Institutional shares		$753			222
Laudus Mondrian International Fixed Income Fund
Investor shares		$1,997			$314
Select shares		$1,405			341
Institutional shares		$981			182


*	Amount less than $1.00

Laudus Mondrian Funds

Financial Notes, unaudited (continued)

9. Federal Income Taxes:

Capital loss carry forwards may be used to offset future realized capital gains for federal income tax purposes. As of September 30, 2008, the Funds had no capital loss carry forwards.

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. 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. As of September 30, 2008, management has reviewed the tax positions for open tax years (November 2, 2007 through March 31, 2008) for the Laudus Mondrian Emerging Markets Fund and the Laudus Mondrian International Fixed Income Fund, and determined that no provision for income tax is required in the Funds’ financial statements. As of September 30, 2008, there were no open tax years for Laudus Mondrian International Equity Fund and the Laudus Mondrian Global Equity Fund.

Approval of Investment Advisory and Sub-Advisory Agreements

Approval of Renewal of Investment Advisory and Sub-Advisory Agreements

The Investment Company Act of 1940 (the “1940 Act”) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreements must be specifically approved (1) by the vote of the Trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the Trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the Fund’s Trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreements.

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory agreements between Laudus Trust (the “Trust”) and CSIM, and the sub-advisory agreements among the Trust, CSIM and Mondrian Investment Partners Limited (“Mondrian”) with respect to the Laudus Mondrian Emerging Markets Fund and Laudus Mondrian International Fixed Income Fund (such investment advisory agreements and sub-advisory agreements, collectively, the “Agreements”). In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM and Mondrian, including information about their affiliates, personnel and operations. The Board also receives extensive data provided by third parties. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to fund operations and fund performance. The Independent Trustees receive advice from independent counsel to the Independent Trustees, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees meet in executive session outside the presence of fund management and participate in question and answer sessions with representatives of CSIM and Mondrian, as appropriate.

As part of the renewal process and ongoing oversight of the advisory and sub-advisory relationships, Independent Trustees’ legal counsel sent an information request letter to CSIM and CSIM sent an information request letter to Mondrian seeking certain relevant information. The responses by CSIM and Mondrian were provided to the Trustees for their review prior to their meeting, and the Trustees were provided with the opportunity to request any additional materials.

The Board, including a majority of the Independent Trustees, considered information specifically relating to its consideration of the continuance of the Agreements at a meeting held on September 15, 2008, and approved the renewal of the Agreements for an additional one year term.

The Board’s approval of the Agreements with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at that meeting and at prior meetings, including:

1. the nature, extent and quality of the services provided to the Funds under the Agreements, including the resources of CSIM and its affiliates, and Mondrian, dedicated to the Funds;

2. each Fund’s investment performance and how it compared to that of certain other comparable mutual funds;

3. each Fund’s expenses and how those expenses compared to those of certain other comparable mutual funds;

4. the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to each Fund, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of Mondrian; and

5. the extent to which economies of scale would be realized as the Funds grow, and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s personnel, experience, and compliance program. The information considered by the Trustees included specific information concerning changes in the nature, extent and quality of services provided by CSIM since the Trustees had last considered approval of the Agreement. The Trustees also considered investments in CSIM’s mutual fund infrastructure. The Trustees also considered Schwab’s excellent reputation in connection with the OneSource mutual fund offering and its overall financial condition. The Board also considered the nature, extent and quality of the sub-advisory services provided by Mondrian to the Funds and the resources it dedicates to the Funds. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM and Mondrian to the

Funds and the resources of CSIM and its affiliates and the resources of Mondrian dedicated to the Funds supported renewal of the Agreements with respect to the Funds.

Fund Performance. The Board considered Fund performance in determining whether to renew the Agreements. Specifically, the Trustees considered each Fund’s performance relative to a peer group and peer category of other mutual funds and appropriate indices/benchmarks, in light of total return and market trends. As part of this review, the Trustees considered the composition of the peer group and peer category, selection criteria and the reputation of the third party who prepared the peer group and peer category analysis. In evaluating the performance of each Fund, the Trustees considered both risk and shareholder risk expectations for such Fund, whether, irrespective of relative performance, Mondrian’s absolute performance was consistent with expectations for its unique quantitative investment methodology and the appropriateness of the benchmark used to compare the performance of each Fund. The Trustees further considered the level of Fund performance in the context of its review of Fund expenses and adviser profitability discussed below. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods considered, the Board concluded that other factors relevant to performance supported renewal of the Agreements. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Funds supported renewal of the Agreements with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreements, and each Fund’s net operating expense ratio, in each case, in comparison to those of other comparable mutual funds, such peer groups and comparisons having been selected and calculated by an independent third party. The Trustees considered the effects of CSIM’s contractual and voluntary waivers of management and other fees to prevent total Fund expenses from exceeding a specified cap. The Trustees also considered fees charged by CSIM and Mondrian to other mutual funds and to other types of accounts, such as separate accounts and wrap accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Funds are reasonable and supported renewal of the Agreements with respect to the Funds.

Profitability. With regard to profitability, the Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly and the compensation flowing to Mondrian, directly or indirectly. In this connection, with respect to the profitability of CSIM and its affiliates, the Trustees reviewed management’s profitability analyses, together with certain commentary thereon from an independent accounting firm. The Trustees also considered any other benefits derived by CSIM and Mondrian from their relationships with the Funds, such as whether, by virtue of their management of the Funds, CSIM or Mondrian obtains investment information or other research resources that aid it in providing advisory services to other clients. With respect to CSIM and Mondrian, and their respective affiliates, the Trustees considered whether the varied levels of compensation and profitability under the Agreements and other service agreements were reasonable and justified in light of the quality of all services rendered to each Fund by CSIM and Mondrian, and their respective affiliates. The Board also considered information relating to changes to CSIM’s business operations and how these changes affected CSIM’s profitability under the Agreements. With respect to the profitability of Mondrian, the Board also considered that Mondrian is compensated by CSIM, and not by the Funds directly, and such compensation reflects an arms-length negotiation between the parties. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of CSIM and Mondrian is reasonable and supported renewal of the Agreements with respect to the Funds.

Economies of Scale. The Trustees considered the existence of any economies of scale and whether those are passed along to a Fund’s shareholders through a graduated investment advisory fee schedule or other means, including any fee waivers by CSIM and its affiliates. In this regard, and consistent with their consideration of Fund expenses, the Trustees considered that CSIM has previously committed resources to minimize the effects on shareholders of diseconomies of scale during periods when Fund assets were relatively small through contractual expense waivers. For example, such diseconomies of scale may particularly affect newer funds or funds with investment strategies that are from time to time out of favor, but shareholders may benefit from the continued availability of such funds at subsidized expense levels. The Trustees also considered existing contractual investment advisory fee schedules that, for all Funds other than Laudus U.S. Small Capitalization Fund, include lower fees at higher graduated asset levels, and Mondrian’s agreement to (a) contractual sub-advisory fee schedules that, for all Funds other than Laudus U.S. Small Capitalization Fund, include lower fees at higher graduated asset levels as measured on a complex wide basis, and (b) a contractual subadvisory fee schedule with respect to the Laudus U.S. Small Capitalization Fund that includes lower fees at higher graduated assets levels. The Board also considered certain

existing commitments by CSIM that are designed to pass along potential economies of scale to Fund shareholders. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Funds obtain reasonable benefit from economies of scale.

In the course of their deliberations, the Trustees did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the continuation of the Agreements with respect to the Funds and concluded that the compensation under the Agreements with respect to the Funds is fair and reasonable in light of such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.

Initial Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) calls and holds one or more meetings each year that are dedicated in part, to considering whether to approve the investment advisory agreements between Laudus Trust (the “Trust”) and Charles Schwab Investment Management, Inc. (“CSIM”), and the sub-advisory agreements between CSIM and Mondrian Investment Partners Limited (“Mondrian”) (such investment advisory and sub-advisory agreement, collectively, the “Agreements”) with respect to Laudus Mondrian International Equity Fund and Laudus Mondrian Global Equity Fund. In preparation for the meeting(s), the Board requested and reviewed a wide variety of materials provided by CSIM and Mondrian with respect to the services to be provided to the funds under the Agreements, including information about their affiliates, personnel and operations. In recognition of the fact that the funds had not yet commenced operations, the Board also considered information provided by CSIM in connection with the Board’s consideration of approval or renewal of the investment advisory agreements with respect to the other funds within the Trust. The Board also took into account the detailed information about other funds within the Trust that the Board reviews during the course of each year, including information that relates to fund operations and fund performance. The Independent Trustees received advice from independent counsel to the Independent Trustees, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees met in executive session outside the presence of fund management and participated in question and answer sessions with representatives of CSIM and Mondrian, as appropriate.

The Board, including a majority of the Independent Trustees approved the Agreements with respect to the Funds for a two year term at a meeting held on March 31, 2008. The Board’s approval of the Agreements with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at that meeting, and at prior meetings, including:

1.the nature, extent and quality of the services to be provided to the Funds under the Agreements, including the resources of CSIM and its affiliates and Mondrian, dedicated to the Funds;

2.Mondrian’s investment performance in managing other funds and/or accounts having relevant investment objectives and strategies;

3.each Funds’ estimated expenses and how those expenses compared to those of certain other comparable mutual funds;

4.the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to other funds, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of Mondrian; and

5.the extent to which economies of scale may be realized as the Funds grow, and whether fee levels in the Agreements relating to the Funds reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services to be provided by CSIM to the Funds and the resources of CSIM and its affiliates will dedicate to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s personnel, experience, and compliance program. The Trustees also considered investments in CSIM’s mutual fund infrastructure. The Trustees also considered Schwab’s excellent reputation in connection with the OneSource mutual fund offering and its overall financial condition. The Board also considered the nature, extent and quality of the sub-advisory services provided by Mondrian to the Funds and the resources it dedicates to the Funds. Following such

evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM and Mondrian to the Funds and the resources of CSIM and its affiliates and the resources of Mondrian dedicated to the Funds supported approval of the Agreements with respect to the Funds.

Fund Performance. With regard to fund performance, since the Funds had not commenced operations and therefore did not have any performance of their own, the Board considered performance of other funds and/or accounts having comparable investment objectives and strategies in determining whether to approve the Agreements. For example, the Board considered Mondrian’s performance in managing other similar funds and/or accounts. The Trustees also considered both risk and shareholder risk expectations for the Funds and the appropriateness of the benchmark that would be used to compare the performance of the Funds. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of CSIM and Mondrian supported approval of the Agreements with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreements, and each Funds’ net operating expense ratio, in each case, in comparison to those of other comparable mutual funds. The Trustees also considered information about average expense ratios of comparable mutual funds in the Funds’ expected peer group. Finally, the Trustees considered the effects of CSIM’s contractual and voluntary waivers of management fees and other fees to prevent total Fund expenses from exceeding a specified cap. The Trustees also considered fees charged by CSIM and Mondrian to other mutual funds and to other types of accounts, such as separate accounts and wrap accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Funds are reasonable and supported approval of the Agreements with respect to the Funds.

Profitability. With regard to profitability, the Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly and the compensation flowing to Mondrian, directly or indirectly. In this connection, the Trustees considered information that was previously provided by CSIM with respect to other funds it manages regarding profitability and how this information might reasonably be expected to be predictive of profitability to CSIM under the Agreements with respect to the Funds. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. With respect to CSIM and Mondrian, and their respective affiliates, the Trustees considered whether the varied levels of compensation and profitability under the Agreements and other service agreements were reasonable and justified in light of the quality of all services rendered to each Fund. The Board also considered the profitability of Mondrian with respect to the sub-advisory services it provides to the Funds, although it also considered that Mondrian is compensated by CSIM, and not by the Funds directly, and such compensation reflects arms-length negotiation between the parties. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM and Mondrian, albeit uncertain, is reasonable and supported approval of the Agreements with respect to the Funds.

Economies of Scale. Recognizing that the funds had not yet commenced operations and had no assets, the Trustees considered the possible development of any economies of scale and whether those could be expected to be passed along to the Funds’ shareholders through a graduated investment advisory fee schedule or other means, including any fee waivers by CSIM and its affiliates. In this regard, and consistent with their consideration of Fund expenses, the Trustees considered that CSIM has previously committed resources to minimize the effects on shareholders of diseconomies of scale during periods when Fund assets were relatively small through contractual expense waivers. For example, such diseconomies of scale may particularly affect newer funds or funds with investment strategies that are from time to time out of favor, but shareholders may benefit from the continued availability of such funds at subsidized expense levels. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Funds may be expected to obtain reasonable benefit from economies of scale if such economies develop.

In the course of their deliberations, the Trustees did not identify any particular information or factor that was all-important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the Agreements with respect to the Funds and concluded that the compensation under the Agreements with respect to the Funds is fair and reasonable in light of such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.


Independent Trustees
Name, Address¹	Principal	Number of
and Year of Birth;	Occupation(s)	Portfolios in
(Term of Office, and	During the	Fund Complex
Length of Time Served²)	Past Five Years	Overseen		Other Directorships Held by Trustee


Mariann Byerwalter³1960 (1/04-present)	Chairman of JDN Corporate Advisory LLC.		84	Board 1–Director, Redwood Trust, Inc. (mortgage finance). Board 2–Director, PMI Group, Inc. (mortgage insurance).


William A. Hasler³1941 (1/04-present)	Retired. Dean Emeritus of the Haas School of Business at the University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals).		84	Board 1–Director, Mission West Properties (commercial real estate). Board 2–Director, TOUSA (home building). Board 3–Director, Harris-Stratex Networks (a network equipment corporation). Board 4–Director, Genitope Corp. (bio-pharmaceuticals). Board 5 –Director, Ditech Networks (voice communication technology). Board 6–Rubicon Limited (manufacturing).


Nils H. Hakansson³1937 (3/90-present)	Sylvan C. Coleman Professor of Finance and Accounting, Emeritus, Haas School of Business, University of California, Berkeley (since 2003). Mr. Hakansson was also a Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley (July 1969 to January 2003).		15	None


Interested Trustees
Name, Address¹		Number of
and Year of Birth;	Principal	Portfolios in
(Term of Office,	Occupation(s)	Fund Complex
and Length of Time	During the	Overseen by
Served²)	Past Five Years	the Trustee		Other Directorships Held by Trustee


Randall W. Merk 1954 Trustee (6/06-present)	Executive Vice President and President, Investment Management Services, Charles Schwab & Co. Inc.; Executive Vice President, Charles Schwab & Co. Inc.(2002-present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc.		15	None


Officers
Name, Address⁴
and Year of Birth;
(Term of Office⁵,
and Length of Time
Served)	Position with the Trust	Principal Occupation During Past Five Years


Jeffrey Mortimer 1963 (3/08-present, President and CEO) (6/04-present, CIO)	President, Chief Executive Officer, and Chief Investment Officer	Senior Vice President and Chief Investment Officer-Equities, Charles Schwab Investment Management, Inc., and Schwab Funds. Prior to May 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc.


George Pereira 1964 (6/06-present)	Treasurer and Chief Financial Officer	Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Treasurer and Principal Financial Officer, Schwab Funds; Director, Charles Schwab Worldwide Funds, PLC and Charles Schwab Asset Management (Ireland) Ltd. Through June 2007, Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc., and Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Trust Inc.; From 12/99 to 11/04: Senior Vice President, Financial Reporting, Charles Schwab & Co., Inc.


Catherine MacGregor 1964 (12/05-present)	Chief Legal Officer, Vice President and Clerk	Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.; Vice President, Schwab Funds; until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP.


Randall Fillmore 1960 (9/04-present)	Chief Compliance Officer	Senior Vice President, Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President, Charles Schwab & Co., Inc.; Chief Compliance Officer, Schwab Funds. From June 2006 to June 2007, Chief Compliance Officer, Excelsior Funds. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc., and Charles Schwab Investment Management, Inc.


Daniel Kern 1961 (3/05-present)	Vice President	Vice President, Investment Management Services. Until September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation.

Glossary

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.

Modified Duration expresses the measurable change in the value of a security in response to a change in interest rates. The formula calculates the effect that a 1% change in interest rates will have on the price of a bond.

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

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

The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios.

The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, and represents approximately 16% of the total market capitalization of the Russell 3000^® Index.

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

The Russell 3000^® Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

The Russell 3000^® Value Index measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

Price to earnings ratio is the price of a stock divided by its historical earnings per share.

Price to book ratio compares the stock’s market value to the value of the total assets less the total liabilities.

Price to cash flow ratio is the price of a stock divided by its reported cash flow per share.

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, or the Securities and Exchange Commission’s website at www.sec.gov, or by contacting Laudus Funds at 866.452.8387.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request by visiting www.laudus.com, or the Securities and Exchange Commission’s website at www.sec.gov.

Quarterly Disclosure of Portfolio Holdings

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington DC. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The information filed on a fund’s most recent Form N-Q is also available at www.laudus.com.

Performance at a Glance


Total Return for
the Report Period


Laudus Rosenberg U.S. Large Capitalization Fund

Investor Shares (Ticker Symbol: AXLVX)		-10.21%
Select Shares (Ticker Symbol: AXLIX)		-10.12%
Benchmark: Russell 1000^® Index		-11.06%

Performance Details		pages 6-7



Laudus Rosenberg U.S. Large Capitalization Growth Fund

Investor Shares (Ticker Symbol: REFIX)		-11.76%
Select Shares (Ticker Symbol: REDIX)		-11.71%
Benchmark: Russell 1000^® Growth Index		-11.23%

Performance Details		pages 8-9



Laudus Rosenberg U.S. Large Capitalization Value Fund

Investor Shares (Ticker Symbol: LCVJX)		-9.19%
Select Shares (Ticker Symbol: LLCVX)		-8.98%
Benchmark: Russell 1000^® Value Index		-11.10%

Performance Details		pages 10-11



Laudus Rosenberg U.S. Discovery Fund

Investor Shares (Ticker Symbol: RDIVX)		-6.07%
Select Shares (Ticker Symbol: RDISX)		-5.92%
Benchmark: Russell 2500^tm Index		-5.43%

Performance Details		pages 12-13



Laudus Rosenberg U.S. Small Capitalization Fund

Investor Shares (Ticker Symbol: BRSCX)		-4.14%
Select Shares (Ticker Symbol: USCIX)		-3.99%
Adviser Shares (Ticker Symbol: LIFUX)		-4.20%
Benchmark: Russell 2000^® Index		-0.54%

Performance Details		pages 14-15



Laudus Rosenberg Long/Short Equity Fund

Investor Shares (Ticker Symbol: BRMIX)		-1.36%
Select Shares (Ticker Symbol: BMNIX)		-1.16%
Benchmark: 90-day T-bills		0.85%

Performance Details		pages 16-18




Minimum Initial Investment¹

Investor Shares		$ 100
Select Shares		$ 50,000
Adviser Shares		$100,000

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

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

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	Please see prospectus for further detail and eligibility requirements.

2 Laudus Rosenberg U.S. Equity Funds

From the President

Dear Shareholder,

Due to this market turmoil, some funds in the Laudus Rosenberg family experienced meaningful declines. In these difficult times, I would like to emphasize that the negative performance of these funds has been primarily the result of atypical market conditions and pessimistic economic outlook. While we cannot predict the future with any certainty, we are doing everything we can to manage the Laudus Funds through these difficult times. Our portfolio management strategy has always been and will continue to be guided by long-term perspective and prudence.

The Laudus Rosenberg Funds are sub-advised by AXA Rosenberg, one of the world’s premier equity specialists and institutional money managers. Through the Laudus Rosenberg Funds offering, this distinctive approach to investment management is easily accessible to independent advisors and individual investors.

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

Thank you for investing with us.

Sincerely,

Laudus Rosenberg U.S. Equity Funds 3

The Investment Environment

4 Laudus Rosenberg U.S. Equity Funds

The Investment Environment continued

Laudus Rosenberg U.S. Large Capitalization Fund

The Laudus Rosenberg U.S. Large Capitalization Fund Investor Shares returned -10.21% during the period, outperforming the benchmark Russell 1000 Index, which returned -11.06%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across all major industry groups represented in the fund were negative. Relative to the benchmark, the fund’s outperformance was driven by stock selection in large-cap companies and across most industry groups, while group weightings acted to moderate these gains.

On an industry group level, stock selection in Energy and Financials led factors contributing to outperformance relative to the benchmark. Despite the sell-off in these groups that occurred toward the end of the period, especially in mid September, Energy and Financials finished the reporting period down modestly in the mid single digits. Returns across all groups were negative, with Materials and Consumer Discretionary leading the detractors with low double-digit losses. Weightings across industry groups had a negative effect, with the exception of Financials; leading the detractors were Materials and Health Care.

In terms of market capitalization, selection and weighting contributed to outperformance relative to the benchmark. Selection among companies with market caps between $25-50 billion led the contributors, with selection in the $5-10 billion range also contributing meaningfully. Selection in the $10-25 billion range led offsetting factors. Weightings across market caps yielded mixed results, but generally benefitted the fund. Returns were negative across the board, particularly in companies with $10-25 billion caps.

From a Price to Earnings (P/E) perspective, the results of stock selection contributed slightly, while weightings primarily accounted for outperformance relative to the benchmark. The fund benefitted from being underweight stocks with negative P/E ratios, which experienced significant declines in value during the period. In general, the fund is weighted heavily toward stocks with a 0-25 P/E ratio, which helped the fund as companies with 0-17.5 P/E generally outperformed those with higher ratios on the aggregate.

When looking at the Price to Book (P/B) ratio, stock selection and weightings were about equal in contribution effect. Although returns were negative across all P/B ratios, the fund’s selection and weighting among companies with P/B ratios of 2.25 and below were the most significant contributing factors relative to the benchmark. The fund’s selection in companies with P/B ratios of 3.00 – 3.75 led offsetting factors.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	181

Avg. Market Capitalization


($Wtd. x 1,000,000)	$70,054

Portfolio Turnover


(One year trailing)	145%


Price to Earnings (P/E)	14.59


Price/Book Ratio (P/B)	1.9


Price to Cash Flow	5.01


Beta	1.04


Return on Equity	13.16%

Five-Year Earnings


Growth	21%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	7/31/2002	6/19/2002
Total Net Assets ($ x 1,000)	$7,767	$78,727
Ticker Symbol	AXLVX	AXLIX
Cusip	51855Q853	51855Q101
NAV	$9.32	$9.33

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		Since Inception


Investor (7/31/02)		-10.21%		-22.97%		5.96%		6.01%
Select (6/19/02)		-10.12%		-22.68%		6.30%		4.24%
Benchmark: Russell 1000^® Index*		-11.06%		-22.10%		5.50%		(7/31/02) 6.41%
								(6/19/02) 4.20%

Fund Expense Ratios²: Investor Shares: Net 1.14%; Gross 1.40% / Select Shares: Net 0.84%; Gross 1.01%

Sector Weightings % of Investments³


Energy	17.3%


Financials	15.9%


Information Technology	13.7%


Industrials	12.0%


Health Care	11.4%


Materials	9.4%


Consumer Staples	5.7%


Consumer Discretionary	5.4%


Telecommunication Services	5.4%


Utilities	3.8%


Total	100.0%

Top Equity Holdings % of Net Assets³


International Business Machines Corp.	4.1%


Pfizer, Inc.	4.1%


Exxon Mobil Corp.	3.8%


Verizon Communications, Inc.	3.7%


Chevron Corp.	2.9%


ConocoPhillips	2.8%


Monsanto Co.	2.6%


Oracle Corp.	2.3%


Time Warner, Inc.	2.3%


Lockheed Martin Corp.	2.2%


Total	30.8%


*	Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index, and represents approximately 92% of the total market capitalization of the Russell 3000^® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg U.S. Equity Funds 7

Laudus Rosenberg U.S. Large Capitalization Growth Fund

The Laudus Rosenberg U.S. Large Capitalization Growth Fund Investor Shares returned -11.76% for the period, underperforming the benchmark Russell 1000 Growth Index, which returned -11.23%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative.

On an industry group level, group weightings detracted from the fund’s performance relative to the benchmark, but were almost completely offset by good stock selection. Fund returns were negative across all sectors except for Health Care and Consumer Staples, which saw slight gains and are generally seen as more defensive during periods of diminished growth. An overweight to the poorly performing Materials and Industrials groups led negative contributors. Good stock selection, primarily in Consumer Discretionary and Information Technology, helped to offset the effects of group weightings.

In terms of market capitalization, stock selection accounted for the slight underperformance relative to the benchmark, while weightings had a net neutral effect. Returns, as a function of market-cap, were negative across the board led by declines in the $5-50 billion range. When looking at the index the larger large-caps generally outperformed their smaller counterparts.

From a Price to Earnings (P/E) perspective, the results of stock selection detracted from performance, but were partially offset by weightings. Selection in companies with 25 – 30 P/E ratios led the decliners, while the effect of weightings was mixed across the board. In general, stocks with P/E ratios above 35 were the most negative.

In terms of Price to Book (P/B) ratios, stock selection detracted modestly but group weightings helped to offset. Again, returns across the board were negative, with companies with P/B ratios of 2.25 and below leading the decliners; stock selection in this area was good, but ultimately offset by selection in companies with P/E ratios above 6.00.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	289

Avg. Market Capitalization


($Wtd. x 1,000,000)	$63,027

Portfolio Turnover


(One year trailing)	78%


Price to Earnings (P/E)	16.06


Price/Book Ratio (P/B)	3.4


Price to Cash Flow	12.43


Beta	1.03


Return on Equity	20.48%

Five-Year Earnings


Growth	30%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	8/15/2003	6/7/2000
Total Net Assets ($ x 1,000)	$2,904	$46,209
Ticker Symbol	REFIX	REDIX
Cusip	51855Q853	51855Q101
NAV	$8.10	$8.07


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

8 Laudus Rosenberg U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Performance Summary as of 9/30/08

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.

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		Since Inception


Investor (8/15/03)		-11.76%		-21.99%		4.33%		4.30%
Select (6/7/00)		-11.71%		-21.77%		4.65%		-1.43%
Benchmark: Russell 1000^® Growth Index*		-11.23%		-20.88%		3.74%		(8/15/03) 3.93%
								(6/7/00) -5.06%

Fund Expense Ratios²: Investor Shares: Net 1.14%; Gross 1.40% / Select Shares: Net 0.84%; Gross 1.02%

Sector Weightings % of Investments³


Information Technology	28.2%


Industrials	15.2%


Energy	15.1%


Health Care	13.5%


Consumer Staples	11.9%


Consumer Discretionary	6.5%


Materials	5.4%


Financials	2.9%


Utilities	1.1%


Telecommunication Services	0.2%


Total	100.0%

Top Equity Holdings % of Net Assets³


International Business Machines Corp.	3.2%


Microsoft Corp.	3.0%


Schlumberger Ltd.	2.4%


Apple, Inc.	2.3%


Hewlett-Packard Co.	2.2%


Cisco Systems, Inc.	1.8%


Oracle Corp.	1.7%


Exxon Mobil Corp.	1.7%


The Coca-Cola Co.	1.6%


QUALCOMM, Inc.	1.5%


Total	21.4%


*	The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg U.S. Equity Funds 9

Laudus Rosenberg U.S. Large Capitalization Value Fund

The Laudus Rosenberg U.S. Large Capitalization Value Fund Investor Shares returned -9.19% for the period, outperforming the benchmark Russell 1000 Value Index, which returned -11.10%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Outperformance was primarily due to stock selection, particularly in the Financials sector.

On an industry group level, stock selection and weighting in Financials were the most significant performance contributors. Financial sector returns in the fund were down less than 1%, while returns for the benchmark were down over 15%. In addition, picks in Energy and Information Technology also contributed to performance. Stock selection and weighting in the Materials sector led offsetting factors.

In terms of market capitalization, weightings and stock selection both contributed to outperformance. Stock selection was particularly good among companies in the $25-50 billion range, while weighting and selection were equally good in the $100-150 billion range. In the $0-5 billion range, stock selection and weighting detracted from performance. Returns across market caps were negative with the exception of companies in the $100-150 billion range, which as a whole were up around 9%.

From a Price to Earnings (P/E) perspective, the results of weightings contributed significantly to performance, while stock selection detracted. The fund benefitted from being underweight stocks with negative P/E ratios, which experienced declines in value of around 15% on the balance, compared to the benchmark where returns were down more than 35% on average. Weightings also helped in the 0-12.5 P/E range, but were more than offset by stock selection in this category. In general, the fund is most heavily weighted toward stocks between a 0-25 P/E ratio.

When looking at the Price to Book (P/B) ratio, both stock selection and weighting benefitted the fund. Although returns were negative across all P/B ratios, the fund’s stock selection and weighting in companies with a P/B ratio of 1.50 or below were particularly good relative to the benchmark; this was also true for companies with a P/B ratio of 1.50-2.25. The fund’s selection in companies with P/B ratios of 2.25-3.00 led offsetting factors.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	176

Avg. Market Capitalization


($Wtd. x 1,000,000)	$84,453

Portfolio Turnover


(One year trailing)	53%


Price to Earnings (P/E)	12.07


Price/Book Ratio (P/B)	1.6


Price to Cash Flow	9.26


Beta	0.93


Return on Equity	14.88%

Five-Year Earnings


Growth	16%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	5/2/2005	5/2/2005
Total Net Assets ($ x 1,000)	$562	$6,234
Ticker Symbol	LCVJX	LLCVX
Cusip	51855Q853	51855Q101
NAV	$9.49	$9.53


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

10 Laudus Rosenberg U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Value Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		Since Inception


Investor (5/2/05)		-9.19%		-19.03%		4.43%
Select (5/2/05)		-8.98%		-18.77%		4.75%
Benchmark: Russell 1000^® Value Index*		-11.10%		-23.56%		2.09%

Fund Expense Ratios²: Investor Shares: Net 1.14%; Gross 3.28% / Select Shares: Net 0.84%; Gross 2.88%

Sector Weightings % of Investments³


Financials	26.1%


Energy	21.5%


Health Care	10.6%


Industrials	9.8%


Consumer Staples	8.5%


Utilities	5.8%


Telecommunication Services	5.1%


Materials	4.8%


Information Technology	4.0%


Consumer Discretionary	3.8%


Total	100.0%

Top Equity Holdings % of Net Assets³


Exxon Mobil Corp.	4.0%


Chevron Corp.	3.7%


JPMOrgan Chase & Co.	3.5%


ConocoPhillips	3.2%


Pfizer, Inc.	3.2%


General Electric Co.	3.0%


Bank of America Corp.	2.7%


Verizon Communications, Inc.	2.4%


AT&T, Inc.	2.0%


Wells Fargo & Co.	1.9%


Total	29.6%


*	Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg U.S. Equity Funds 11

Laudus Rosenberg U.S. Discovery Fund

The Laudus Rosenberg U.S. Discovery Fund Investor Shares returned -6.07% for the period, underperforming the benchmark Russell 2500 Index, which returned -5.43%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Underperformance was primarily due to stock selection, particularly in Information Technology and Industrials.

On an industry group level, returns were negative with the exception of Telecomm Services and Utilities. Stock selection and weighting detracted from performance in Health Care, Industrials, and Information Technology.

In terms of market capitalization, stock selection and weightings detracted from performance. Returns across cap levels were negative except in the $5-7.5 billion range where good stock selection led to positive returns. Stock selection in all other cap levels, particularly in the $750 million to $1.5 billion range, was negative. Weightings also had a slightly negative impact overall.

From a Price to Earnings (P/E) perspective, the results of stock selection were negative, but were partially offset by weightings. Stocks with negative P/E ratios tended to do worse on the average than stocks with P/E ratios above 0. Selection in the 0-12.5 P/E range detracted from performance. In general, the fund is weighted toward companies with P/E ratios below 25.

When looking at Price to Book (P/B) ratios, stock selection again was the detracting factor. The bulk of the underperformance resulted from selection among companies with P/B ratios below 1.25. Weightings across all P/B ratios helped to offset the results of stock selection.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	723

Avg. Market Capitalization


($Wtd. x 1,000,000)	$2,026

Portfolio Turnover


(One year trailing)	98%


Price to Earnings (P/E)	25.52


Price/Book Ratio (P/B)	1.4


Price to Cash Flow	10.36


Beta	1.21


Return on Equity	5.76%

Five-Year Earnings


Growth	20%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	10/3/2001	9/4/2001
Total Net Assets ($ x 1,000)	$146,453	$520,924
Ticker Symbol	RDIVX	RDISX
Cusip	51855Q838	51855Q309
NAV	$15.00	$15.27


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

12 Laudus Rosenberg U.S. Equity Funds

Laudus Rosenberg U.S. Discovery Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		Since Inception


Investor (10/3/01)		-6.07%		-17.80%		7.56%		9.28%
Select (9/4/01)		-5.92%		-17.54%		7.92%		8.55%
Benchmark: Russell 2500^tm Index*		-5.43%		-17.99%		8.12%		(10/3/01) 8.87%
								(9/4/01) 7.02%

Fund Expense Ratios²: Investor Shares: 1.34% / Select Shares: 0.96%

Sector Weightings % of Investments³


Information Technology	22.0%


Industrials	15.1%


Health Care	11.7%


Financials	11.5%


Energy	10.5%


Consumer Discretionary	8.6%


Materials	7.0%


Utilities	6.9%


Consumer Staples	4.9%


Telecommunication Services	1.8%


Total	100.0%

Top Equity Holdings % of Net Assets³


FMC Corp.	1.9%


Constellation Brands, Inc., Class A	1.7%


MDU Resources Group, Inc.	1.6%


CenturyTel, Inc.	1.4%


Alliant Energy Corp.	1.3%


Invitrogen Corp.	1.3%


Hewitt Associates, Inc., Class A	1.2%


Teleflex, Inc.	1.2%


Sybase, Inc.	1.2%


Terra Industries, Inc.	1.1%


Total	13.9%


*	Russell 2500^tm Index measures the performance of the 2,500 smallest companies in the Russell 3000^® Index, and represents approximately 18% of the total market capitalization of the Russell 3000^® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg U.S. Equity Funds 13

Laudus Rosenberg U.S. Small Capitalization Fund

The Laudus Rosenberg U.S. Small Capitalization Fund Investor Shares returned -4.14% for the period, underperforming the benchmark Russell 2000 Index, which returned -0.54%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Underperformance was primarily due to stock selection, particularly in Financials and Health Care.

On an industry group level, returns in the fund were negative with the exception of Consumer Staples and Utilities. Stock selection and weighting in Financials and Health Care led detractors from the fund’s performance, but were partially offset by selection in Consumer Staples. Weightings in Energy and Consumer Discretionary benefitted the fund, but were mostly offset. In general, the fund is weighted toward Information Technology, Industrials and Energy.

In terms of market capitalization, returns were negative across capitalization ranges with the exception of the $1.5-3 billion range. The effects of stock selection and weighting across cap ranges were negative, particularly in the $750 million to $1.5 billion range followed by the $300-750 million range. However, good stock selection in the $1.5-3 billion range helped to offset.

From a Price to Earnings (P/E) perspective, returns were mixed across P/E ratios. Stock selection amongst companies with P/E ratios of 0-12.5 was a significant detractor, where returns were negative while the benchmark return in that range was slightly positive. The effects of weighting slightly offset the effects of stock selection.

When looking at Price to Book (P/B) ratios, returns were mixed. In general, the fund was weighted toward companies with low price to book ratios, which tended to do better than companies with higher P/B ratios. However, stock selection in companies with P/B ratios below 1.25 detracted meaningfully from performance.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	510

Avg. Market Capitalization


($Wtd. x 1,000,000)	$950

Portfolio Turnover


(One year trailing)	90%


Price to Earnings (P/E)	23.55


Price/Book Ratio (P/B)	1.4


Price to Cash Flow	14.32


Beta	1.21


Return on Equity	5.12%

Five-Year Earnings


Growth	16%

Fund Overview¹


	Investor Shares	Select Shares	Adviser Shares


Initial Investment	$100	$50,000	$100,000
Inception Date	10/22/1996	2/22/1989	1/21/1997
Total Net Assets ($ x 1,000)	$166,557	$307,940	$25,690
Ticker Symbol	BRSCX	USCIX	LIFUX
Cusip	51855Q820	51855Q408	51855Q739
NAV	$8.34	$8.67	$8.45


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

14 Laudus Rosenberg U.S. Equity Funds

Laudus Rosenberg U.S. Small Capitalization Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Performance of a Hypothetical
$100,000 Investment in Adviser Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		10 Years


Investor (10/22/96)		-4.14%		-17.29%		5.97%		8.42%
Select (2/22/89)		-3.99%		-16.99%		6.32%		8.74%
Adviser (1/21/97)		-4.20%		-17.19%		6.06%		8.49%
Benchmark: Russell 2000^® Index*		-0.54%		-14.48%		8.15%		7.81%

Fund Expense Ratios²: Investor Shares: 1.32% / Select Shares: 0.96% / Adviser Shares: 1.21%

Sector Weightings % of Investments³


Information Technology	26.8%


Industrials	14.9%


Consumer Discretionary	12.1%


Financials	12.0%


Health Care	10.4%


Energy	8.7%


Materials	6.7%


Utilities	4.7%


Consumer Staples	3.4%


Telecommunication Services	0.3%


Total	100.0%

Top Equity Holdings % of Net Assets³


Perot Systems Corp., Class A	2.1%


Regal-Beloit Corp.	2.0%


Skyworks Solutions, Inc.	1.5%


MPS Group, Inc.	1.4%


The Warnaco Group, Inc.	1.4%


Solera Holdings, Inc.	1.2%


Penn Virginia Corp.	1.2%


Liz Clairborne, Inc.	1.1%


Datascope Corp.	1.0%


Reinsurance Group of America, Inc.	1.0%


Total	13.9%


*	The Russell 2000^® Index measures the performance of the 2,000 smallest companies in the Russell 3000^® Index, and represents approximately 8% of the total market capitalization of the Russell 3000^® Index. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a Fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg U.S. Equity Funds 15

Laudus Rosenberg Long/Short Equity Fund

The Laudus Rosenberg Long/Short Equity Fund Investor Shares returned -1.36% for the period, underperforming the benchmark 90-day T-bills, which returned 0.85%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Underperformance in the fund was primarily the result of negative returns in the fund’s long position.

On an industry group level, the fund’s long positions in Information Technology, Industrials, and Materials significantly detracted from performance. On the short side, positions in Financials, Consumer Discretionary, and Energy led the contributors. From a Price to Earnings (P/E) perspective, positions in companies with negative P/E ratios and ratios between 12.5 and 17.5 helped on the short side, but detracted on the long side. In terms of Price to Book (P/B) ratio, companies with ratios of 1.25 and below and above 5.00 led contributors on the short side. Companies with ratios above 5.00 and between 1.25 and 2.00 led detractors on the long side. With regard to market capitalization, companies with market caps of $12 billion and above significantly benefitted the fund on the short side, but detracted by almost the same amount on the long side.

As of 9/30/08:

Fund Characteristics¹


	Long	Short


Number of Securities	270	240
Avg. Market Capitalization ($Wtd. x 1,000,000)	42,565	38,512
Portfolio Turnover (One year trailing)	62%	217%
Price to Earnings (P/E)	19.64	69.49
Price to Book (P/B)	1.63	2.54
Price to Cash Flow	7.23	19.11
Beta	1.1	1.14
Return on Equity	9.00%	10.43%
Five-Year Earnings Growth	18.18%	19.72%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	12/18/1997	12/16/1997
Total Net Assets ($ x 1,000)	$10,726	$122,704
Ticker Symbol	BRMIX	BMNIX
Cusip	51855Q838	51855Q309
NAV	$10.16	$10.25


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

16 Laudus Rosenberg U.S. Equity Funds

Laudus Rosenberg Long/Short Equity Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		10 Years


Investor (12/18/97)		-1.36%		-0.39%		2.38%		1.90%
Select (12/16/97)		-1.16%		-0.08%		2.72%		2.23%
Benchmark: 90-day T-bills		0.85%		2.35%		3.24%		3.46%

Fund Expense Ratios²: Investor Shares: Net 1.89%; Gross 3.30% / Select Shares: Net 1.69%; Gross 3.09%


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.
²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Excludes dividend expense on securities sold short. Gross Expenses. Reflects the total annual fund operating expenses. Also, includes dividend expense on securities sold short. Please see the prospectus for more information. For actual ratios during the period, refer to the financial highlights section of the financial statements.

Laudus Rosenberg U.S. Equity Funds 17

Performance Summary as of 9/30/08

Long Equity Positions

Sector Weightings % of Investments¹


Financials	17.9%


Health Care	17.1%


Information Technology	16.4%


Industrials	9.8%


Consumer Discretionary	8.9%


Materials	7.4%


Telecommunication Services	7.2%


Energy	6.7%


Consumer Staples	5.2%


Utilities	3.4%


Total	100.0%

Top Equity Holdings % of Net Assets¹


Pfizer, Inc.	3.8%


Verizon Communications, Inc.	3.7%


AT&T, Inc.	3.3%


Bank of America Corp.	3.3%


JPMorgan Chase & Co.	3.1%


Bristol-Myers Squibb Co.	2.9%


Time Warner, Inc.	2.5%


Wells Fargo & Co.	2.2%


ConocoPhillips	2.1%


U.S. Bancorp	1.8%


Total	28.7%

Short Equity Positions

Sector Weightings % of Short Positions¹


Information Technology	21.6%


Health Care	20.0%


Consumer Discretionary	12.2%


Financials	10.9%


Consumer Staples	10.7%


Industrials	10.2%


Energy	5.8%


Utilities	4.0%


Telecommunication Services	3.1%


Materials	1.5%


Total	100.0%

Top Equity Holdings % of Net Assets¹


Cisco Systems, Inc.	3.4%


The Procter & Gamble Co.	3.4%


Intel Corp.	3.4%


Google, Inc., Class A	3.2%


Abbott Laboratories	3.2%


Medtronic, Inc.	2.6%


Comcast Corp., Class A	2.2%


Vertex Pharmaceuticals, Inc.	2.1%


Kraft Foods, Inc., Class A	2.0%


United Parcel Service, Inc., Class B	1.9%


Total	27.4%


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

18 Laudus Rosenberg U.S. Equity Funds

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 4/1/08		at 9/30/08		4/1/08 - 9/30/08



Laudus Rosenberg U.S. Large Capitalization Fund
Investor Shares
Actual Return		1.15%	$	1,000	$	897.90	$	5.47
Hypothetical 5% Return		1.15%	$	1,000	$	1,019.30	$	5.82
Select Shares
Actual Return		0.85%	$	1,000	$	898.80	$	4.05
Hypothetical 5% Return		0.85%	$	1,000	$	1,020.81	$	4.31


Laudus Rosenberg U.S. Large Capitalization Growth Fund
Investor Shares
Actual Return		1.15%	$	1,000	$	882.40	$	5.43
Hypothetical 5% Return		1.15%	$	1,000	$	1,019.30	$	5.82
Select Shares
Actual Return		0.86%	$	1,000	$	882.90	$	4.06
Hypothetical 5% Return		0.86%	$	1,000	$	1,020.76	$	4.36


Laudus Rosenberg U.S. Large Capitalization Value Fund
Investor Shares
Actual Return		1.14%	$	1,000	$	908.10	$	5.45
Hypothetical 5% Return		1.14%	$	1,000	$	1,019.35	$	5.77
Select Shares
Actual Return		0.84%	$	1,000	$	910.20	$	4.02
Hypothetical 5% Return		0.84%	$	1,000	$	1,020.86	$	4.26


Laudus Rosenberg U.S. Discovery Fund
Investor Shares
Actual Return		1.31%	$	1,000	$	939.30	$	6.37
Hypothetical 5% Return		1.31%	$	1,000	$	1,018.50	$	6.63
Select Shares
Actual Return		0.97%	$	1,000	$	940.80	$	4.72
Hypothetical 5% Return		0.97%	$	1,000	$	1,020.21	$	4.91


¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provide in Financial Highlights.

²	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 365 days of the fiscal year.

Laudus Rosenberg U.S. Equity Funds 19

Fund Expenses (Unaudited) continued


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 4/1/08		at 9/30/08		4/1/08 - 9/30/08



Laudus Rosenberg U.S. Small Capitalization Fund
Investor Shares
Actual Return		1.28%	$	1,000	$	958.60	$	6.28
Hypothetical 5% Return		1.28%	$	1,000	$	1,018.65	$	6.48
Select Shares
Actual Return		0.98%	$	1,000	$	960.10	$	4.82
Hypothetical 5% Return		0.98%	$	1,000	$	1,020.16	$	4.96
Adviser Shares
Actual Return		1.20%	$	1,000	$	958.00	$	5.89
Hypothetical 5% Return		1.20%	$	1,000	$	1,019.05	$	6.07


Laudus Rosenberg Long/Short Equity Fund
Investor Shares
Actual Return		3.74%	$	1,000	$	986.40	$	18.62
Hypothetical 5% Return		3.74%	$	1,000	$	1,006.32	$	18.81
Select Shares
Actual Return		3.47%	$	1,000	$	988.40	$	17.30
Hypothetical 5% Return		3.47%	$	1,000	$	1,007.67	$	17.46


¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provide in Financial Highlights.

²	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 365 days of the fiscal year.

20 Laudus Rosenberg U.S. Equity Funds

Laudus Rosenberg U.S. Large Capitalization Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		10.38			13.21			12.36			11.81			10.96			8.31

Income (loss) from investment operations:
Net investment income (loss)		0.04	¹		0.06	¹		0.07	¹		0.06	¹		0.08	¹		0.02	¹
Net realized and unrealized gains (losses)		(1.10	)		(0.72	)		1.25			1.63			0.93			2.63

Total from investment operations		(1.06	)		(0.66	)		1.32			1.69			1.01			2.65
Less distributions:
Distributions from net investment income		—			(0.06	)		(0.05	)		(0.07	)		(0.07	)		—
Distributions from net realized gains		—			(2.11	)		(0.42	)		(1.07	)		(0.09	)		—

Total distributions		—			(2.17	)		(0.47	)		(1.14	)		(0.16	)		—

Net asset value at end of period		9.32			10.38			13.21			12.36			11.81			10.96

Total return (%)		(10.21	)²		(6.61	)		10.69			14.57			9.22			31.89

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.15	³		1.31	⁴		1.30	⁴		1.33			1.35			1.25
Gross operating expenses		1.32	³		1.40			1.38			1.52			1.58			1.51
Net investment income (loss)		0.81	³		0.45			0.52			0.50			0.69			0.24
Portfolio turnover rate		71	²		166			144			144			128			142
Net assets, end of period ($ x 1,000)		7,767			9,017			10,074			10,026			2,786			590


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,5**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		10.38			13.21			12.35			11.79			10.92			8.28

Income (loss) from investment operations:
Net investment income (loss)		0.06	¹		0.10	¹		0.10	¹		0.10	¹		0.11	¹		(0.06	)¹
Net realized and unrealized gains (losses)		(1.11	)		(0.71	)		1.27			1.62			0.94			2.62

Total from investment operations		(1.05	)		(0.61	)		1.37			1.72			1.05			2.68
Less distributions:
Distributions from net investment income		—			(0.11	)		(0.09	)		(0.09	)		(0.09	)		(0.04	)
Distributions from net realized gains		—			(2.11	)		(0.42	)		(1.07	)		(0.09	)		—

Total distributions		—			(2.22	)		(0.51	)		(1.16	)		(0.18	)		(0.04	)

Net asset value at end of period		9.33			10.38			13.21			12.35			11.79			10.92

Total return (%)		(10.12	)²		(6.30	)		11.10			14.90			9.66			32.33

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.85	³		1.00	⁶		1.00	⁶		1.01			0.99			1.00
Gross operating expenses		0.94	³		1.01			1.01			1.14			1.23			1.47
Net investment income (loss)		1.12	³		0.77			0.81			0.80			0.96			0.62
Portfolio turnover rate		71	²		166			144			144			128			142
Net assets, end of period ($ x 1,000)		78,727			83,783			94,921			54,296			44,559			44,301

* Unaudited

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

² Not annualized.

³ Annualized.

⁴ The ratio of net operating expenses would have been 1.29%, if interest expenses had not been included.

⁵ Effective July 31, 2008, the Institutional Shares became Select Shares.

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

See financial notes 21

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

Cost

Value

Holdings by Category

($)

.7%

Common Stock

92,591,042

85,367,544

.8%

Short-Term Investment

1,597,000

100

.5%

Total Investments

94,188,042

86,964,544

.5)%

Other Assets and Liabilities, Net

(470,128

)

100

.0%

Net Assets

86,494,416


	Number		Value
Security	of Shares		($)





Common Stock 98.7% of net assets


Automobiles & Components 0.0%
Johnson Controls, Inc.		50		1,516


Banks 2.6%
Hudson City Bancorp, Inc.		11,300		208,485
M&T Bank Corp.		510		45,518
Regions Financial Corp.		32,962		316,435
SunTrust Banks, Inc.		708		31,853
U.S. Bancorp		22,260		801,805
Wells Fargo & Co.		22,500		844,425

				2,248,521


Capital Goods 9.2%
3M Co.		320		21,859
Armstrong World Industries, Inc.		690		19,941
Crane Co.		3,790		112,601
Cummins, Inc.		15,612		682,557
Dover Corp.		14,100		571,755
First Solar, Inc. *		2,920		551,617
General Dynamics Corp.		80		5,890
General Electric Co.		20,300		517,650
Honeywell International, Inc.		25,463		1,057,988
Lockheed Martin Corp.		17,158		1,881,718
Northrop Grumman Corp.		20,700		1,253,178
SPX Corp.		4,160		320,320
SunPower Corp., Class B *		1,072		74,022
The Manitowoc Co., Inc.		9,350		145,392
The Shaw Group, Inc. *		5,409		166,218
The Timken Co.		6,949		197,004
W.W. Grainger, Inc.		4,051		352,315

				7,932,025


Commercial & Professional Supplies 0.8%
Allied Waste Industries, Inc. *		20,530		228,088
Manpower, Inc.		1,280		55,245
R.R. Donnelley & Sons Co.		17,100		419,463

				702,796


Consumer Durables & Apparel 0.1%
The Warnaco Group, Inc. *		2,110		95,562


Consumer Services 0.6%
H&R Block, Inc.		21,900		498,225


Diversified Financials 5.0%
American Express Co.		7,520		266,434
Bank of America Corp.		36,750		1,286,250
Citigroup, Inc.		41,300		847,063
JPMorgan Chase & Co.		30,573		1,427,759
Morgan Stanley		6,870		158,010
The Goldman Sachs Group, Inc.		2,730		349,440

				4,334,956


Energy 17.1%
Apache Corp.		20		2,086
Cameron International Corp. *		110		4,239
Chevron Corp.		30,670		2,529,662
Cimarex Energy Co.		6,300		308,133
ConocoPhillips		33,300		2,439,225
Devon Energy Corp.		3,588		327,226
Diamond Offshore Drilling, Inc.		2,360		243,222
ENSCO International, Inc.		4,000		230,520
Exxon Mobil Corp.		41,870		3,251,624
Forest Oil Corp. *		5,980		296,608
Foundation Coal Holdings, Inc.		1,160		41,273
Helix Energy Solutions Group, Inc. *		3,030		73,568
International Coal Group, Inc. *		8,720		54,413
Mariner Energy, Inc. *		6,320		129,560
Massey Energy Co.		3,880		138,400
Murphy Oil Corp.		10,000		641,400
Newfield Exploration Co. *		2,360		75,496
Noble Corp.		7,425		325,957
Occidental Petroleum Corp.		16,630		1,171,583
Oil States International, Inc. *		3,840		135,744
Overseas Shipholding Group, Inc.		250		14,578
Penn Virginia Corp.		830		44,355
Pioneer Natural Resources Co.		4,340		226,895
Plains Exploration & Production Co. *		5,750		202,170
Pride International, Inc. *		1,320		39,085
Rowan Cos., Inc.		8,340		254,787
Schlumberger Ltd.		9,124		712,493
Smith International, Inc.		4,000		234,560
Stone Energy Corp. *		1,806		76,448
Swift Energy Co. *		2,030		78,541
Teekay Corp.		3,200		84,416
Tidewater, Inc.		3,800		210,368
Unit Corp. *		2,350		117,077

22 See financial notes

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

W&T Offshore, Inc.		2,300		62,767

				14,778,479


Food & Staples Retailing 0.1%
CVS Caremark Corp.		1,954		65,772


Food, Beverage & Tobacco 2.6%
Altria Group, Inc.		14,960		296,806
Bunge Ltd.		8,069		509,799
Campbell Soup Co.		20		772
Constellation Brands, Inc., Class A *		25,934		556,544
Philip Morris International, Inc.		12,740		612,794
Tyson Foods, Inc., Class A		19,590		233,905

				2,210,620


Health Care Equipment & Services 2.3%
Express Scripts, Inc. *		14,400		1,063,008
Health Net, Inc. *		7,498		176,953
Hologic, Inc. *		19,500		376,935
Inverness Medical Innovations, Inc. *		5,425		162,750
Teleflex, Inc.		2,912		184,883

				1,964,529


Household & Personal Products 2.9%
Avon Products, Inc.		26,285		1,092,667
Church & Dwight Co., Inc.		90		5,588
Colgate-Palmolive Co.		4,920		370,722
Energizer Holdings, Inc. *		1,200		96,660
The Clorox Co.		5,427		340,219
The Estee Lauder Cos., Inc., Class A		8,100		404,271
The Procter & Gamble Co.		3,500		243,915

				2,554,042


Insurance 7.1%
Aon Corp.		18,761		843,494
Assurant, Inc.		8,180		449,900
CNA Financial Corp.		4,690		123,066
Everest Re Group Ltd.		4,700		406,691
MetLife, Inc.		25,978		1,454,768
Prudential Financial, Inc.		22,646		1,630,512
Reinsurance Group of America, Inc., Class A		1,410		76,140
The Hartford Financial Services Group, Inc.		13,285		544,552
Unum Group		25,540		641,054

				6,170,177


Materials 9.3%
Ashland, Inc.		4,460		130,410
Cabot Corp.		4,870		154,769
Celanese Corp., Series A		6,530		182,252
CF Industries Holdings, Inc.		4,300		393,278
Chemtura Corp.		7,243		33,028
Cleveland-Cliffs, Inc.		6,527		345,539
Cytec Industries, Inc.		3,350		130,349
Eastman Chemical Co.		5,800		319,348
FMC Corp.		4,267		219,281
Hercules, Inc.		7,527		148,959
International Paper Co.		28,951		757,937
Monsanto Co.		23,100		2,286,438
Nalco Holding Co.		10,308		191,110
Olin Corp.		4,780		92,732
PPG Industries, Inc.		11,290		658,433
Rockwood Holdings, Inc. *		2,277		58,428
RPM International, Inc.		8,420		162,843
Terra Industries, Inc.		7,392		217,325
The Mosaic Co.		10,697		727,610
The Scotts Miracle-Gro Co., Class A		1,240		29,314
The Valspar Corp.		7,520		167,621
United States Steel Corp.		7,900		613,119

				8,020,123


Media 3.6%
CBS Corp., Class B		55,900		815,022
DISH Network Corp., Class A *		15,245		320,145
Time Warner, Inc.		151,400		1,984,854

				3,120,021


Pharmaceuticals & Biotechnology 9.0%
Amgen, Inc. *		4,832		286,393
Biogen Idec, Inc. *		2,390		120,193
Bristol-Myers Squibb Co.		88,800		1,851,480
Cephalon, Inc. *		5,041		390,627
Gilead Sciences, Inc. *		16,900		770,302
Invitrogen Corp. *		7,000		264,600
Johnson & Johnson		2,270		157,266
Mylan, Inc. *		1,210		13,818
Pfizer, Inc.		190,110		3,505,628
Waters Corp. *		6,966		405,282

				7,765,589


Real Estate 0.9%
Boston Properties, Inc.		900		84,294
Douglas Emmett, Inc.		8,200		189,174
HRPT Properties Trust		16,600		114,374
ProLogis		2,200		90,794
Public Storage		900		89,109
Simon Property Group, Inc.		1,680		162,960
Vornado Realty Trust		1,000		90,950

				821,655


Retailing 1.0%
AutoZone, Inc. *		3,368		415,409
Expedia, Inc. *		15,600		235,716
Limited Brands, Inc.		10,840		187,749
The TJX Cos., Inc.		480		14,650

				853,524


Semiconductors & Semiconductor Equipment 0.6%
Cypress Semiconductor Corp. *		3,910		20,410
LSI Corp. *		48,600		260,496

See financial notes 23

Laudus Rosenberg U.S. Large Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Micron Technology, Inc. *		59,600		241,380

				522,286


Software & Services 6.9%
Accenture Ltd., Class A		14,690		558,220
Affiliated Computer Services, Inc., Class A *		100		5,063
Amdocs Ltd. *		13,821		378,419
BMC Software, Inc. *		510		14,601
CA, Inc.		28,300		564,868
Computer Sciences Corp. *		12,100		486,299
Hewitt Associates, Inc., Class A *		7,050		256,902
IAC/InterActiveCorp *		7,250		125,425
Intuit, Inc. *		23,230		734,300
Microsoft Corp.		9,970		266,099
Novell, Inc. *		28,100		144,434
Oracle Corp. *		97,829		1,986,907
Solera Holdings, Inc. *		3,500		100,520
VeriSign, Inc. *		13,717		357,740

				5,979,797


Technology Hardware & Equipment 6.0%
Agilent Technologies, Inc. *		23,490		696,713
Amphenol Corp., Class A		833		33,437
Apple, Inc. *		80		9,093
Harris Corp.		9,420		435,204
Hewlett-Packard Co.		9,164		423,743
International Business Machines Corp.		30,503		3,567,631
Sun Microsystems, Inc. *		8,908		67,701

				5,233,522


Telecommunication Services 5.3%
AT&T, Inc.		51,220		1,430,062
Verizon Communications, Inc.		99,533		3,194,014

				4,624,076


Transportation 1.9%
Genco Shipping & Trading Ltd.		1,460		48,530
Union Pacific Corp.		21,960		1,562,674
UTI Worldwide, Inc.		690		11,744

				1,622,948


Utilities 3.8%
CMS Energy Corp.		16,790		209,371
DTE Energy Co.		11,192		449,023
MDU Resources Group, Inc.		12,920		374,680
NiSource, Inc.		19,716		291,008
ONEOK, Inc.		3,783		130,135
Pepco Holdings, Inc.		14,787		338,770
PG&E Corp.		24,570		920,147
The AES Corp. *		45,650		533,649

				3,246,783

Total Common Stock (Cost $92,591,042)				85,367,544



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


Short-Term Investment 1.8% of net assets


Repurchase Agreement 1.8%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.20%, with a maturity value of $1,597,053 (fully collateralized by Federal National Mortgage Association with a value of $1,629,995).		1,597,000		1,597,000

Total Short-Term Investment (Cost $1,597,000)				1,597,000


End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $94,606,518 and the unrealized appreciation and depreciation were $3,599,991 and ($11,241,965), respectively, with a net unrealized depreciation of ($7,641,974).


*		Non-income producing security.

Laudus Rosenberg U.S. Large Capitalization Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $94,188,042)		$86,964,544
Cash		234
Receivables:
Investments sold		3,197,445
Fund shares sold		319,780
Dividends		110,046
Interest		53
Prepaid expenses	+	5,353


Total assets		90,597,455


Liabilities
Payables:
Investments bought		3,769,915
Investment adviser fees		4,400
Fund shares redeemed		277,813
Distribution and shareholder services fees		4,269
Accrued expenses	+	46,642


Total liabilities		4,103,039


Net Assets
Total assets		90,597,455
Total liabilities	−	4,103,039


Net assets		$86,494,416
Net Assets by Source
Capital received from investors		98,858,028
Net investment income not yet distributed		757,670
Net realized capital losses		(5,897,784	)
Net unrealized capital losses		(7,223,498	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$7,767,089		833,417			$9.32
Select Shares	$78,727,327		8,440,414			$9.33

See financial notes 25

Laudus Rosenberg U.S. Large Capitalization Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends		$952,316
Interest	+	8,909


Total Investment Income		961,225


Net Realized Gains and Losses
Net realized losses on investments		(2,005,352	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(8,306,293	)


Expenses
Investment adviser fees		366,961
Accounting and administration fees		21,960
Professional fees		20,058
Transfer agent fees		12,531
Registration fees		12,280
Distribution and shareholder services fees (Investor Shares)		11,968
Custodian fees		11,215
Shareholder reports		7,503
Sub-Accounting fees (Investor Shares)		6,182
Trustees’ fees		3,692
Interest expense		189
Other expenses	+	4,360


Total expenses		478,899
Expense reduction by adviser	−	50,592
Custody credits	−	19


Net expenses		428,288


Increase (Decrease) in Net Assets from Operations
Total investment income		961,225
Net expenses	−	428,288


Net investment income		532,937
Net realized losses		(2,005,352	)
Net unrealized losses	+	(8,306,293	)


Decrease in net assets from operations		($9,778,708	)

26 See financial notes

Laudus Rosenberg U.S. Large Capitalization Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$532,937			$776,494
Net realized gains (losses)			(2,005,352	)		5,283,353
Net unrealized losses	+		(8,306,293	)		(11,039,541	)


Decrease in net assets from operations			(9,778,708	)		(4,979,694	)


Distributions to Shareholders ¹
Distributions from net investment income
Investor Shares			—			(45,709	)
Select Shares	+		—			(668,782	)


Total distributions from net investment income			—			(714,491	)


Distributions from net realized gains
Investor Shares			—			(1,538,942	)
Select Shares	+		—			(13,458,529	)


Total distributions from net realized gains			—			(14,997,471	)

Total distributions			$-			($15,711,962	)

Transactions in Fund Shares ¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			152,625			$1,643,505			203,845			$2,518,064
Select Shares	+		1,405,286			14,754,363			3,800,104			48,736,304


Total shares sold			1,557,911			$16,397,868			4,003,949			$51,254,368


Shares Reinvested
Investor Shares			—			$-			131,106			$1,511,650
Select Shares	+		—			—			1,136,301			13,078,824


Total shares reinvested			—			$-			1,267,407			$14,590,474


Shares Redeemed
Investor Shares			(187,530	)		($1,996,747	)		(228,959	)		($2,884,976	)
Select Shares	+		(1,038,457	)		(10,928,288	)		(4,050,690	)		(54,462,466	)


Total shares redeemed			(1,225,987	)		($12,925,035	)		(4,279,649	)		($57,347,442	)

Net transactions in fund shares			331,924			$3,472,833			991,707			$8,497,400


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			8,941,907			$92,800,291			7,950,200			$104,994,547
Total increase or decrease	+		331,924			(6,305,875	)		991,707			(12,194,256	)


End of period			9,273,831			$86,494,416			8,941,907			$92,800,291


Net investment income not yet distributed						$757,670						$224,733


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

See financial notes 27

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07			4/1/06-			4/1/05-			4/1/04-			8/15/03¹-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		9.18			9.83			9.33			8.15			7.92			6.95

Income (loss) from investment operations:
Net investment income (loss)		0.00	^2,3		(0.02	)²		0.00	^2,3		(0.01	)²		0.02	²		0.09	²
Net realized and unrealized gains (losses)		(1.08	)		(0.05	)		0.50			1.19			0.23			0.92

Total from investment operations		(1.08	)		(0.07	)		0.50			1.18			0.25			1.01
Less distributions:
Distributions from net investment income		—			—			—			—			(0.02	)		(0.04	)
Distributions from net realized gains		—			(0.58	)		—			—			—			—

Total distributions		—			(0.58	)		—			—			(0.02	)		(0.04	)

Net asset value at end of period		8.10			9.18			9.83			9.33			8.15			7.92

Total return (%)		(11.76	)⁴		(1.25	)		5.36			14.48			3.14			14.50	⁴

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.15	⁵		1.30	⁶		1.29			1.33			1.32			1.11	⁵
Gross operating expenses		1.41	⁵		1.40			1.43			1.91			2.68			2.72	⁵
Net investment income (loss)		0.05	⁵		(0.17	)		(0.01	)		(0.12	)		0.21			1.12	⁵
Portfolio turnover rate		36	⁴		85			71			79			78			177	⁴
Net assets, end of period ($ x 1,000)		2,904			2,804			2,242			1,810			1,894			1,479


	4/1/08-			4/1/07			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,7**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		9.14			9.76			9.26			8.07			7.84			5.95

Income (loss) from investment operations:
Net investment income (loss)		0.02	²		0.01	²		0.03	²		0.02	²		0.04	²		0.06	²
Net realized and unrealized gains (losses)		(1.09	)		(0.03	)		0.49			1.18			0.23			1.89

Total from investment operations		(1.07	)		(0.02	)		0.52			1.20			0.27			1.95
Less distributions:
Distributions from net investment income		—			(0.02	)		(0.02	)		(0.01	)		(0.04	)		(0.06	)
Distributions from net realized gains		—			(0.58	)		—			—			—			—

Total distributions		—			(0.60	)		(0.02	)		(0.01	)		(0.04	)		(0.06	)

Net asset value at end of period		8.07			9.14			9.76			9.26			8.07			7.84

Total return (%)		(11.71	)⁴		(0.78	)		5.62			14.85			3.42			32.84

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.86	^5,8		1.00	⁸		0.99			0.99			0.99			0.80
Gross operating expenses		1.04	⁵		1.02			1.05			1.34			2.34			2.59
Net investment income (loss)		0.34	⁵		0.10			0.30			0.27			0.53			0.80
Portfolio turnover rate		36	⁴		85			71			79			78			177
Net assets, end of period ($ x 1,000)		46,209			52,681			75,481			44,426			5,056			5,006

* Unaudited.

¹ Commencement of operations.

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

³ Amount less than $0.005

⁴ Not annualized.

⁵ Annualized.

⁶ The ratio of net operating expenses for period ending 03/31/08 would have been 1.29% if interest expense had not been included.

⁷ Effective July 31,2008, the Institutional Shares became Select Shares.

⁸ The ratio of net operating expenses for period ending 03/31/08 and 09/30/08 would have been 0.99% and 0.85% respectively, if interest expense had not been included.

28 See financial notes

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)


	98	.9%	Common Stock		48,334,176		48,577,285
	1	.2%	Short-Term Investment		595,000		595,000

	100	.1%	Total Investments		48,929,176		49,172,285
	9	.4%	Collateral for Securities on Loan		4,617,351		4,617,351
	(9	.5)%	Other Assets and Liabilities, Net				(4,676,015	)

	100	.0%	Net Assets				49,113,621


	Number		Value
Security	of Shares		($)





Common Stock 98.9% of net assets


Automobiles & Components 0.2%
Johnson Controls, Inc.		3,000		90,990


Banks 0.2%
Hudson City Bancorp, Inc. (a)		4,700		86,715


Capital Goods 11.4%
3M Co. (a)		4,660		318,325
Aecom Technology Corp. *		2,800		68,432
AGCO Corp. (a) *		2,510		106,951
Alliant Techsystems, Inc. (a) *		770		72,334
AMETEK, Inc.		2,860		116,602
Caterpillar, Inc. (a)		4,000		238,400
Cooper Industries Ltd., Class A (a)		210		8,390
Cummins, Inc.		4,600		201,112
Danaher Corp.		1,300		90,220
Deere & Co.		6,128		303,336
Donaldson Co., Inc. (a)		1,780		74,600
Dover Corp.		3,200		129,760
Emerson Electric Co.		7,960		324,688
First Solar, Inc. *		819		154,717
Flowserve Corp.		140		12,428
Fluor Corp.		3,000		167,100
General Dynamics Corp. (a)		1,100		80,982
Honeywell International, Inc.		8,730		362,731
Jacobs Engineering Group, Inc. (a) *		2,070		112,422
Joy Global, Inc. (a)		1,747		78,860
Kennametal, Inc.		700		18,984
L-3 Communications Holdings, Inc.		1,700		167,144
Lennox International, Inc.		1,800		59,886
Lockheed Martin Corp.		5,950		652,536
Northrop Grumman Corp.		1,550		93,837
PACCAR, Inc. (a)		2,340		89,365
Pall Corp.		90		3,095
Parker Hannifin Corp.		1,620		85,860
Precision Castparts Corp.		900		70,902
Raytheon Co. (a)		2,800		149,828
Rockwell Automation, Inc. (a)		2,670		99,698
SPX Corp. (a)		1,100		84,700
SunPower Corp., Class B *		959		66,219
The Boeing Co.		4,600		263,810
The Manitowoc Co., Inc. (a)		4,000		62,200
The Shaw Group, Inc. *		1,800		55,314
The Timken Co.		107		3,033
The Toro Co. (a)		1,700		70,210
Tyco International Ltd.		4,600		161,092
United Technologies Corp.		3,500		210,210
W.W. Grainger, Inc.		1,390		120,888

				5,611,201


Commercial & Professional Supplies 0.3%
Allied Waste Industries, Inc. *		4,000		44,440
Manpower, Inc. (a)		200		8,632
Waste Management, Inc.		2,700		85,023

				138,095


Consumer Durables & Apparel 0.8%
NIKE, Inc., Class B		5,210		348,549
The Stanley Works (a)		900		37,566

				386,115


Consumer Services 1.7%
CBRL Group, Inc. (a)		800		21,040
H&R Block, Inc. (a)		2,112		48,048
McDonald’s Corp.		6,600		407,220
Yum! Brands, Inc.		10,600		345,666

				821,974


Diversified Financials 1.6%
American Express Co.		5,700		201,951
BlackRock, Inc. (a)		660		128,370
Northern Trust Corp.		3,381		244,108
State Street Corp.		2,090		118,879
T. Rowe Price Group, Inc. (a)		1,500		80,565

				773,873


Energy 14.9%
Arch Coal, Inc. (a)		2,530		83,212
Atwood Oceanics, Inc. (a) *		1,900		69,160
Baker Hughes, Inc.		4,520		273,641
Cabot Oil & Gas Corp.		1,800		65,052
Cameron International Corp. *		4,540		174,972
Continental Resources, Inc. (a) *		1,800		70,614
Denbury Resources, Inc. (a) *		4,700		89,488
Diamond Offshore Drilling, Inc. (a)		1,650		170,049
Encore Acquisition Co. *		600		25,068

See financial notes 29

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

ENSCO International, Inc.		3,220		185,569
EOG Resources, Inc.		1,200		107,352
Exxon Mobil Corp.		10,980		852,707
FMC Technologies, Inc. *		2,500		116,375
Foundation Coal Holdings, Inc.		1,500		53,370
Global Industries Ltd. (a) *		3,200		22,208
Halliburton Co.		11,600		375,724
Helix Energy Solutions Group, Inc. (a) *		200		4,856
Hess Corp. (a)		2,000		164,160
Mariner Energy, Inc. (a) *		2,500		51,250
Massey Energy Co. (a)		2,310		82,398
Murphy Oil Corp. (a)		3,400		218,076
National-Oilwell Varco, Inc. *		2,500		125,575
Noble Corp.		5,380		236,182
Noble Energy (a)		480		26,683
Occidental Petroleum Corp. (a)		8,461		596,077
Oil States International, Inc. (a) *		1,250		44,188
Patterson-UTI Energy, Inc. (a)		3,075		61,562
Peabody Energy Corp. (a)		1,600		72,000
Petrohawk Energy Corp. (a) *		4,000		86,520
Plains Exploration & Production Co. *		2,496		87,759
Pride International, Inc. *		3,530		104,523
Rowan Cos., Inc. (a)		2,720		83,096
SandRidge Energy, Inc. (a) *		3,000		58,800
Schlumberger Ltd. (a)		14,800		1,155,732
SEACOR Holdings, Inc. (a) *		200		15,790
Smith International, Inc. (a)		4,700		275,608
Southwestern Energy Co. *		5,800		177,132
St. Mary Land & Exploration Co. (a)		1,100		39,215
Superior Energy Services, Inc. *		2,246		69,940
TETRA Technologies, Inc. *		3,000		41,550
The Williams Cos., Inc.		6,550		154,907
Tidewater, Inc.		200		11,072
Transocean, Inc. (a) *		1,979		217,373
Unit Corp. *		1,200		59,784
W&T Offshore, Inc. (a)		1,170		31,929
Walter Industries, Inc.		1,400		66,430
Weatherford International Ltd. (a) *		4,200		105,588
Whiting Petroleum Corp. *		1,080		76,961

				7,337,277


Food & Staples Retailing 3.0%
Costco Wholesale Corp. (a)		2,330		151,287
CVS Caremark Corp.		10,320		347,371
Sysco Corp. (a)		3,400		104,822
Wal-Mart Stores, Inc.		12,190		730,059
Walgreen Co.		5,300		164,088

				1,497,627


Food, Beverage & Tobacco 5.2%
Altria Group, Inc.		10,100		200,384
Campbell Soup Co.		260		10,036
Dean Foods Co. (a) *		1,650		38,544
H.J. Heinz Co.		3,200		159,904
Kellogg Co. (a)		2,800		157,080
PepsiCo, Inc.		9,600		684,192
Philip Morris International, Inc.		7,700		370,370
The Coca-Cola Co.		15,023		794,416
The Pepsi Bottling Group, Inc.		1,700		49,589
UST, Inc. (a)		1,700		113,118

				2,577,633


Health Care Equipment & Services 5.2%
Aetna, Inc.		2,300		83,053
Baxter International, Inc.		7,000		459,410
Beckman Coulter, Inc.		1,260		89,447
Becton, Dickinson & Co.		3,900		313,014
Cardinal Health, Inc.		1,978		97,476
Edwards Lifesciences Corp. (a) *		1,700		98,192
Express Scripts, Inc. (a) *		4,400		324,808
Health Net, Inc. *		180		4,248
Intuitive Surgical, Inc. *		900		216,882
Medco Health Solutions, Inc. *		3,100		139,500
Medtronic, Inc.		7,100		355,710
St. Jude Medical, Inc. *		3,100		134,819
Stryker Corp. (a)		1,700		105,910
Varian Medical Systems, Inc. *		2,400		137,112

				2,559,581


Household & Personal Products 3.5%
Avon Products, Inc.		6,900		286,833
Church & Dwight Co., Inc. (a)		1,600		99,344
Colgate-Palmolive Co.		6,120		461,142
Energizer Holdings, Inc. (a) *		1,130		91,022
Herbalife Ltd. (a)		2,000		79,040
The Clorox Co. (a)		1,300		81,497
The Estee Lauder Cos., Inc., Class A		2,000		99,820
The Procter & Gamble Co.		7,500		522,675

				1,721,373


Insurance 0.7%
Aflac, Inc.		2,800		164,500
CNA Financial Corp.		1,000		26,240
Prudential Financial, Inc.		2,333		167,976

				358,716


Materials 5.3%
Air Products & Chemicals, Inc.		1,130		77,394
Albemarle Corp.		2,340		72,166
Alcoa, Inc.		3,900		88,062
Cabot Corp. (a)		1,700		54,026
Carpenter Technology Corp.		76		1,949
Celanese Corp., Series A		2,554		71,282
CF Industries Holdings, Inc.		1,100		100,606
Chemtura Corp.		300		1,368
Cleveland-Cliffs, Inc.		2,800		148,232
Domtar Corp. (a) *		790		3,634
FMC Corp.		1,100		56,529
International Flavors & Fragrances, Inc. (a)		2,300		90,758
Monsanto Co.		6,500		643,370
Nalco Holding Co.		4,200		77,868
Newmont Mining Corp.		2,800		108,528
Nucor Corp. (a)		1,880		74,260
PPG Industries, Inc.		900		52,488

30 See financial notes

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Praxair, Inc.		4,500		322,830
RPM International, Inc. (a)		4,300		83,162
Sigma-Aldrich Corp. (a)		550		28,831
Steel Dynamics, Inc.		1		17
Terra Industries, Inc. (a)		1,980		58,212
The Lubrizol Corp. (a)		800		34,512
The Mosaic Co.		2,691		183,042
The Scotts Miracle-Gro Co., Class A		1,200		28,368
The Valspar Corp. (a)		200		4,458
United States Steel Corp.		1,920		149,011

				2,614,963


Media 0.9%
Comcast Corp., Class A (a)		5,000		98,150
DISH Network Corp., Class A *		3,635		76,335
The DIRECTV Group, Inc. (a) *		7,163		187,456
Viacom, Inc., Class B *		3,400		84,456

				446,397


Pharmaceuticals & Biotechnology 8.2%
Abbott Laboratories		10,100		581,558
Allergan, Inc.		1,800		92,700
Amgen, Inc. *		1,300		77,051
Applied Biosystems, Inc.		1,900		65,075
Biogen Idec, Inc. *		4,144		208,402
Bristol-Myers Squibb Co.		22,300		464,955
Celgene Corp. *		2,800		177,184
Charles River Laboratories International, Inc. (a) *		1,000		55,530
Eli Lilly & Co.		50		2,202
Forest Laboratories, Inc. *		1,600		45,248
Genentech, Inc. *		2,700		239,436
Genzyme Corp. (a) *		4,000		323,560
Gilead Sciences, Inc. *		9,735		443,721
ImClone Systems, Inc. *		1,780		111,143
Invitrogen Corp. (a) *		1,480		55,944
Johnson & Johnson		7,700		533,456
Merck & Co., Inc.		3,900		123,084
Mylan, Inc. *		2,000		22,840
PerkinElmer, Inc. (a)		2,000		49,940
Schering-Plough Corp. (a)		9,160		169,185
Waters Corp. *		1,800		104,724
Watson Pharmaceuticals, Inc. *		2,000		57,000

				4,003,938


Real Estate 0.4%
Health Care REIT, Inc.		1,100		58,553
Simon Property Group, Inc. (a)		1,190		115,430

				173,983


Retailing 2.9%
Amazon.com, Inc. *		2,150		156,434
AutoZone, Inc. *		880		108,539
Best Buy Co., Inc. (a)		2,200		82,500
Big Lots, Inc. (a) *		3,100		86,273
Dollar Tree, Inc. *		2,700		98,172
Family Dollar Stores, Inc. (a)		200		4,740
Limited Brands, Inc.		4,550		78,806
RadioShack Corp. (a)		3,300		57,024
Staples, Inc. (a)		4,633		104,243
Target Corp. (a)		4,800		235,440
The Sherwin-Williams Co. (a)		1,900		108,604
The TJX Cos., Inc. (a)		7,300		222,796
Urban Outfitters, Inc. (a) *		2,700		86,049

				1,429,620


Semiconductors & Semiconductor Equipment 2.2%
Applied Materials, Inc. (a)		8,400		127,092
Broadcom Corp., Class A (a) *		3,200		59,616
Cypress Semiconductor Corp. *		3,500		18,270
Fairchild Semiconductor International, Inc. *		1,900		16,891
Integrated Device Technology, Inc. *		2,720		21,162
Intel Corp. (a)		31,500		589,995
LSI Corp. (a) *		11,600		62,176
Micron Technology, Inc. *		1,500		6,075
Teradyne, Inc. *		4,120		32,177
Texas Instruments, Inc.		7,800		167,700

				1,101,154


Software & Services 11.6%
Accenture Ltd., Class A		8,900		338,200
Activision Blizzard, Inc. (a) *		11,000		169,730
Adobe Systems, Inc. *		3,200		126,304
Affiliated Computer Services, Inc., Class A (a) *		1,400		70,882
Akamai Technologies, Inc. *		4,900		85,456
Automatic Data Processing, Inc.		3,000		128,250
BMC Software, Inc. (a) *		3,600		103,068
CA, Inc.		4,718		94,171
Compuware Corp. (a) *		7,165		69,429
eBay, Inc. *		6,000		134,280
Electronic Arts, Inc. *		1,700		62,883
Google, Inc., Class A *		1,560		624,811
Hewitt Associates, Inc., Class A *		2,580		94,015
IAC/InterActiveCorp (a) *		1,500		25,950
Intuit, Inc. *		5,745		181,599
MasterCard, Inc., Class A (a)		1,300		230,529
McAfee, Inc. *		2,854		96,922
Microsoft Corp.		56,100		1,497,309
Novell, Inc. *		6,400		32,896
Oracle Corp. *		42,100		855,051
SAIC, Inc. *		2,600		52,598
Synopsys, Inc. *		4,510		89,975
VeriSign, Inc. (a) *		3,700		96,496
Western Union Co.		12,100		298,507
Yahoo!, Inc. (a) *		7,300		126,290

				5,685,601


Technology Hardware & Equipment 14.1%
Agilent Technologies, Inc. (a) *		6,400		189,824
Amphenol Corp., Class A		3,041		122,066
Apple, Inc. *		9,820		1,116,141
Arrow Electronics, Inc. *		200		5,244
Avnet, Inc. *		2,800		68,964
Avocent Corp. (a) *		15		307
AVX Corp. (a)		300		3,057

See financial notes 31

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Cisco Systems, Inc. *		39,200		884,352
CommScope, Inc. (a) *		1,800		62,352
Corning, Inc.		9,800		153,272
Dell, Inc. *		12,300		202,704
EMC Corp. (a) *		10,110		120,916
FLIR Systems, Inc. (a) *		2,700		103,734
Harris Corp.		2,510		115,962
Hewlett-Packard Co.		23,340		1,079,241
International Business Machines Corp.		13,311		1,556,854
Itron, Inc. (a) *		1,100		97,383
JDS Uniphase Corp. (a) *		2,030		17,174
Juniper Networks, Inc. (a) *		3,200		67,424
Mettler-Toledo International, Inc. *		1,400		137,200
NCR Corp. (a) *		800		17,640
QLogic Corp. (a) *		4,200		64,512
QUALCOMM, Inc.		17,000		730,490
Vishay Intertechnology, Inc. *		300		1,986

				6,918,799


Telecommunication Services 0.2%
American Tower Corp., Class A *		2,300		82,731


Transportation 3.3%
Burlington Northern Santa Fe Corp.		1,700		157,131
Con-way, Inc. (a)		110		4,852
CSX Corp.		6,080		331,786
Kansas City Southern (a) *		1,800		79,848
Norfolk Southern Corp.		3,300		218,493
Ryder System, Inc. (a)		800		49,600
Union Pacific Corp.		6,800		483,888
United Parcel Service, Inc., Class B (a)		4,000		251,560
UTI Worldwide, Inc.		3,100		52,762

				1,629,920


Utilities 1.1%
Entergy Corp. (a)		800		71,208
Exelon Corp. (a)		1,800		112,716
PPL Corp.		2,311		85,553
Public Service Enterprise Group, Inc.		2,900		95,091
Sierra Pacific Resources (a)		2,400		22,992
The AES Corp. *		12,100		141,449

				529,009

Total Common Stock (Cost $48,334,176)				48,577,285



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


Short-Term Investment 1.2% of net assets


Repurchase Agreements 1.2%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.2%, with a maturity value of $595,020 (fully collateralized by Federal Home Loan Mortgage Corp. with a value of $609,092.)		595,000		595,000

Total Short-Term Investment (Cost $595,000)				595,000


End of Investments.


	Number		Value
Security	of Shares		($)


Collateral Invested for Securities on Loan 9.4% of net assets
State Street Navigator Security Lending Prime Portfolio		4,617,351		4,617,351

End of collateral invested for securities on loan.

At 09/30/08 the tax basis cost of the fund’s investments was $49,291,932 and the unrealized appreciation and depreciation were $4,266,610 and ($4,386,257), respectively, with a net unrealized deppreciation of ($119,647).


*		Non-income producing security.
(a)		All or a portion of this security is on loan.

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value including $4,512,227 of securities on loan (cost $48,929,176)		$49,172,285
Collateral invested for securities on loan		4,617,351
Cash		1,005
Receivables:
Investments sold		477,776
Fund shares sold		14,832
Dividends		38,647
Income from securities on loan		1,072
Interest		20
Prepaid expenses	+	3,378


Total assets		54,326,366


Liabilities
Collateral invested for securities on loan		4,617,351
Payables:
Investments bought		416,379
Investment adviser fees		1,983
Fund shares redeemed		129,431
Distribution and shareholder services fees		971
Accrued expenses	+	46,630


Total liabilities		5,212,745


Net Assets
Total assets		54,326,366
Total liabilities	−	5,212,745


Net assets		$49,113,621
Net Assets by Source
Capital received from investors		49,657,445
Net investment income not yet distributed		132,393
Net realized capital losses		(919,326	)
Net unrealized capital gains		243,109

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$2,904,271		358,738			$8.10
Select Shares	$46,209,350		5,728,009			$8.07

See financial notes 33

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends		$328,445
Interest		4,803
Securities on loan	+	14,387


Total Investment Income		347,635


Net Realized Gains and Losses
Net realized losses on investments		(901,495	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(5,816,605	)


Expenses
Investment adviser fees		217,291
Accounting and administration fees		23,022
Professional fees		17,842
Registration fees		16,201
Transfer agent fees		9,681
Custodian fees		5,008
Shareholder reports		4,379
Distribution and shareholder services fees (Investor Shares)		3,784
Trustees’ fees		3,279
Sub-Accounting fees (Investor Shares)		1,870
Interest expense		1,144
Other expenses	+	2,650


Total expenses		306,151
Expense reduction by adviser	−	53,804
Custody credits	−	31


Net expenses		252,316


Increase (Decrease) in Net Assets from Operations
Total investment income		347,635
Net expenses	−	252,316


Net investment income		95,319
Net realized losses		(901,495	)
Net unrealized losses	+	(5,816,605	)


Decrease in net assets from operations		($6,622,781	)

34 See financial notes

Laudus Rosenberg U.S. Large Capitalization Growth Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$95,319			$63,604
Net realized gains (losses)			(901,495	)		5,183,102
Net unrealized losses	+		(5,816,605	)		(1,983,838	)


Increase (Decrease) in net assets from operations			(6,622,781	)		3,262,868


Distributions to Shareholders ¹
Distributions from net investment income
Investor Shares			—			—
Select Shares	+		—			(87,957	)


Total distributions from net investment income			—			(87,957	)


Distributions from net realized gains
Investor Shares			—			(159,976	)
Select Shares	+		—			(2,948,584	)


Total distributions from net realized gains			—			(3,108,560	)

Total distributions			$-			($3,196,517	)

Transactions in Fund Shares ¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			95,411			$876,072			140,477			$1,466,020
Select Shares	+		582,994			5,581,431			2,592,386			25,766,635


Total shares sold			678,405			$6,457,503			2,732,863			$27,232,655


Shares Reinvested
Investor Shares			-			$-			15,043			$152,686
Select Shares	+		-			-			243,552			2,457,436


Total shares reinvested			-			$-			258,595			$2,610,122


Shares Redeemed
Investor Shares			(42,075	)		($390,265	)		(78,208	)		($796,543	)
Select Shares	+		(621,049	)		(5,816,326	)		(4,799,827	)		(51,349,953	)


Total shares redeemed			(663,124	)		($6,206,591	)		(4,878,035	)		($52,146,496	)

Net transactions in fund shares			15,281			$250,912			(1,886,577	)		($22,303,719	)


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			6,071,466			$55,485,490			7,958,043			$77,722,858
Total increase or decrease	+		15,281			(6,371,869	)		(1,886,577	)		(22,237,368	)


End of period			6,086,747			$49,113,621			6,071,466			$55,485,490


Net investment income not yet distributed						$132,393						$37,074


¹	Effective July 31,2008, the Institutionals Shares became Select Shares.

See financial notes 35

Laudus Rosenberg U.S. Large Capitalization Value Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/2/07-			4/1/06-			5/2/05¹-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06


Per—Share Data ($)

Net asset value at beginning of period		10.45			12.70			11.87			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.08	²		0.13	²		0.11	²		0.13	²
Net realized and unrealized gains (losses)		(1.04	)		(0.73	)		1.45			1.80

Total from investment operations		(0.96	)		(0.60	)		1.56			1.93
Less distributions:
Distributions from net investment income		—			(0.12	)		(0.24	)		—
Distributions from net realized gains		—			(1.53	)		(0.49	)		(0.06	)

Total distributions		—			(1.65	)		(0.73	)		(0.06	)

Net asset value at end of period		9.49			10.45			12.70			11.87

Total return (%)		(9.19	)³		(5.50	)		13.22			19.33	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.14	⁴		1.31	⁵		1.29			0.96	⁴
Gross operating expenses		2.90	⁴		3.28			2.75			2.78	⁴
Net investment income (loss)		1.49	⁴		1.01			0.90			1.31	⁴
Portfolio turnover rate		26	³		61			108			81	³
Net assets, end of period ($ x 1,000)		562			454			540			145


	4/1/08-			4/1/07-			4/1/06-			5/2/05¹-
Select Shares	*9/30/08^,6**			3/31/08			3/31/07			3/31/06


Per—Share Data ($)

Net asset value at beginning of period		10.47			12.74			11.89			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.09	²		0.16	²		0.15	²		0.18	²
Net realized and unrealized gains (losses)		(1.03	)		(0.73	)		1.45			1.79

Total from investment operations		(0.94	)		(0.57	)		1.60			1.97
Less distributions:
Distributions from net investment income		—			(0.17	)		(0.26	)		(0.02	)
Distributions from net realized gains		—			(1.53	)		(0.49	)		(0.06	)

Total distributions		—			(1.70	)		(0.75	)		(0.08	)

Net asset value at end of period		9.53			10.47			12.74			11.89

Total return (%)		(8.98	)³		(5.29	)		13.55			19.83	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.84	⁴		1.01	⁷		0.99			0.49	⁴
Gross operating expenses		2.53	⁴		2.88			2.37			2.41	⁴
Net investment income (loss)		1.78	⁴		1.32			1.22			1.82	⁴
Portfolio turnover rate		26	³		61			108			81	³
Net assets, end of period ($ x 1,000)		6,234			5,765			6,058			6,694

* Unaudited.

¹ Commencement of operations.

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

³ Not annualized.

⁴ Annualized.

⁵ The ratio of net operating expenses would have been 1.29%, if interest expenses had not been included.

⁶ Effective July 31, 2008, the Institutional Shares became Select Shares.

⁷ The ratio of net operating expenses would have been 0.99%, if interest expenses had not been included.

36 See financial notes

Laudus Rosenberg U.S. Large Capitalization Value Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

Cost

Value

Holdings by Category

($)

.6%

Common Stock

7,027,022

6,702,444

.5%

Short-Term Investment

101,000

100

.1%

Total Investments

7,128,022

6,803,444

.1)%

Other Assets and Liabilities, Net

(7,472

)

100

.0%

Net Assets

6,795,972


	Number		Value
Security	of Shares		($)





Common Stock 98.6% of net assets


Automobiles & Components 0.3%
Johnson Controls, Inc.		600		18,198
TRW Automotive Holdings Corp. *		300		4,773

				22,971


Banks 6.6%
BB&T Corp.		2,100		79,380
Hudson City Bancorp, Inc.		1,500		27,675
Huntington Bancshares, Inc.		1,600		12,784
M&T Bank Corp.		120		10,710
PNC Financial Services Group, Inc.		1,100		82,170
Regions Financial Corp.		640		6,144
U.S. Bancorp		2,716		97,830
Wells Fargo & Co.		3,400		127,602
Zions Bancorp		100		3,870

				448,165


Capital Goods 7.0%
Aecom Technology Corp. *		200		4,888
AGCO Corp. *		100		4,261
Armstrong World Industries, Inc.		190		5,491
Crane Co.		300		8,913
Cummins, Inc.		752		32,878
Deere & Co.		500		24,750
Dover Corp.		120		4,866
General Electric Co.		8,000		204,000
Honeywell International, Inc.		400		16,620
Ingersoll-Rand Co., Ltd., Class A		1,000		31,170
L-3 Communications Holdings, Inc.		300		29,496
Lennox International, Inc.		300		9,981
Northrop Grumman Corp.		700		42,378
SPX Corp.		270		20,790
Terex Corp. *		500		15,260
The Timken Co.		500		14,175
United Rentals, Inc. *		400		6,096

				476,013


Commercial & Professional Supplies 0.7%
Allied Waste Industries, Inc. *		1,000		11,110
Manpower, Inc.		400		17,264
Waste Management, Inc.		600		18,894

				47,268


Consumer Durables & Apparel 0.2%
Hasbro, Inc.		370		12,846


Consumer Services 0.0%
CBRL Group, Inc.		4		105


Diversified Financials 10.4%
American Express Co.		600		21,258
Bank of America Corp.		5,300		185,500
Capital One Financial Corp.		1,400		71,400
Citigroup, Inc.		4,500		92,295
JPMorgan Chase & Co.		5,070		236,769
State Street Corp.		400		22,752
The Goldman Sachs Group, Inc.		600		76,800

				706,774


Energy 21.2%
Anadarko Petroleum Corp.		900		43,659
Apache Corp.		1,200		125,136
Chevron Corp.		3,020		249,090
Cimarex Energy Co.		329		16,091
ConocoPhillips		3,000		219,750
Devon Energy Corp.		1,000		91,200
El Paso Corp.		2,590		33,048
Encore Acquisition Co. *		300		12,534
ENSCO International, Inc.		200		11,526
Exxon Mobil Corp.		3,500		271,810
Forest Oil Corp. *		400		19,840
Helix Energy Solutions Group, Inc. *		400		9,712
Helmerich & Payne, Inc.		500		21,595
Mariner Energy, Inc. *		120		2,460
Murphy Oil Corp.		660		42,333
Nabors Industries Ltd. *		1,000		24,920
Noble Energy		400		22,236
Occidental Petroleum Corp.		1,400		98,630
Oil States International, Inc. *		200		7,070
Overseas Shipholding Group, Inc.		200		11,662
Patterson-UTI Energy, Inc.		100		2,002
Pioneer Natural Resources Co.		600		31,368
Plains Exploration & Production Co. *		180		6,329
Pride International, Inc. *		300		8,883
Rowan Cos., Inc.		380		11,609
SEACOR Holdings, Inc. *		120		9,474
St. Mary Land & Exploration Co.		100		3,565
Tidewater, Inc.		300		16,608
Unit Corp. *		200		9,964

See financial notes 37

Laudus Rosenberg U.S. Large Capitalization Value Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

W&T Offshore, Inc.		190		5,185

				1,439,289


Food & Staples Retailing 2.7%
BJ’s Wholesale Club, Inc. *		100		3,886
CVS Caremark Corp.		1,350		45,441
Safeway, Inc.		1,600		37,952
SUPERVALU, INC.		800		17,360
Wal-Mart Stores, Inc.		1,300		77,857

				182,496


Food, Beverage & Tobacco 3.8%
Altria Group, Inc.		1,300		25,792
Bunge Ltd.		530		33,485
Campbell Soup Co.		450		17,370
Corn Products International, Inc.		320		10,330
Kellogg Co.		300		16,830
Kraft Foods, Inc., Class A		1,200		39,300
Philip Morris International, Inc.		900		43,290
Sara Lee Corp.		2,900		36,627
The J. M. Smucker Co.		300		15,207
The Pepsi Bottling Group, Inc.		600		17,502

				255,733


Health Care Equipment & Services 2.1%
Boston Scientific Corp. *		4,810		59,019
Covidien Ltd.		1,600		86,016

				145,035


Household & Personal Products 1.9%
Avon Products, Inc.		300		12,471
The Clorox Co.		90		5,642
The Procter & Gamble Co.		1,600		111,504

				129,617


Insurance 8.3%
Allied World Assurance Co. Holdings Ltd.		300		10,656
American Financial Group, Inc.		400		11,800
Aon Corp.		1,200		53,952
Arch Capital Group Ltd. *		200		14,606
Assurant, Inc.		501		27,555
CNA Financial Corp.		240		6,298
Endurance Specialty Holdings Ltd.		300		9,276
Everest Re Group Ltd.		270		23,363
PartnerRe Ltd.		260		17,703
Principal Financial Group, Inc.		700		30,443
Prudential Financial, Inc.		1,150		82,800
Reinsurance Group of America, Inc., Class A		300		16,200
The Allstate Corp.		1,900		87,628
The Hartford Financial Services Group, Inc.		1,050		43,040
The Travelers Cos., Inc.		2,100		94,920
Unum Group		1,400		35,140

				565,380


Materials 4.7%
Celanese Corp., Series A		280		7,815
FMC Corp.		262		13,464
Freeport-McMoRan Copper & Gold, Inc.		290		16,486
International Paper Co.		1,600		41,888
Nucor Corp.		946		37,367
Owens-Illinois, Inc. *		500		14,700
PPG Industries, Inc.		300		17,496
Reliance Steel & Aluminum Co.		300		11,391
Schnitzer Steel Industries, Inc., Class A		200		7,848
Steel Dynamics, Inc.		600		10,254
The Dow Chemical Co.		1,800		57,204
The Mosaic Co.		800		54,416
United States Steel Corp.		380		29,492

				319,821


Media 2.4%
CBS Corp., Class B		2,500		36,450
The Walt Disney Co.		1,400		42,966
Time Warner, Inc.		6,200		81,282

				160,698


Pharmaceuticals & Biotechnology 8.3%
Amgen, Inc. *		1,900		112,613
Invitrogen Corp. *		400		15,120
Johnson & Johnson		1,700		117,776
King Pharmaceuticals, Inc. *		1,100		10,538
Merck & Co., Inc.		1,200		37,872
PerkinElmer, Inc.		380		9,489
Pfizer, Inc.		11,800		217,592
Watson Pharmaceuticals, Inc. *		300		8,550
Wyeth		1,000		36,940

				566,490


Real Estate 0.4%
Health Care REIT, Inc.		210		11,178
Hospitality Properties Trust		500		10,260
HRPT Properties Trust		1,100		7,579

				29,017


Retailing 0.8%
Family Dollar Stores, Inc.		600		14,220
Limited Brands, Inc.		490		8,487
RadioShack Corp.		700		12,096
The Gap, Inc.		1,200		21,336

				56,139


Semiconductors & Semiconductor Equipment 0.1%
Fairchild Semiconductor International, Inc. *		400		3,556
Integrated Device Technology, Inc. *		600		4,668

				8,224

38 See financial notes

Laudus Rosenberg U.S. Large Capitalization Value Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Software & Services 1.6%
Computer Sciences Corp. *		690		27,731
Convergys Corp. *		350		5,173
DST Systems, Inc. *		200		11,198
Hewitt Associates, Inc., Class A *		130		4,737
Symantec Corp. *		3,200		62,656

				111,495


Technology Hardware & Equipment 2.2%
Arrow Electronics, Inc. *		500		13,110
Avnet, Inc. *		400		9,852
International Business Machines Corp.		800		93,568
QLogic Corp. *		600		9,216
Sun Microsystems, Inc. *		1,205		9,158
Western Digital Corp. *		700		14,924

				149,828


Telecommunication Services 5.1%
AT&T, Inc.		4,900		136,808
CenturyTel, Inc.		390		14,294
Embarq Corp.		700		28,385
Verizon Communications, Inc.		5,100		163,659

				343,146


Transportation 2.0%
CSX Corp.		300		16,371
Kansas City Southern *		200		8,872
Norfolk Southern Corp.		960		63,561
Ryder System, Inc.		300		18,600
Union Pacific Corp.		380		27,041

				134,445


Utilities 5.8%
Alliant Energy Corp.		500		16,105
American Electric Power Co., Inc.		1,400		51,842
CMS Energy Corp.		590		7,357
Consolidated Edison, Inc.		1,000		42,960
Dominion Resources, Inc.		231		9,882
DTE Energy Co.		500		20,060
Duke Energy Corp.		2,410		42,006
Edison International		1,200		47,880
MDU Resources Group, Inc.		660		19,140
NiSource, Inc.		1,200		17,712
OGE Energy Corp.		120		3,706
Pepco Holdings, Inc.		800		18,328
PG&E Corp.		1,500		56,175
Progress Energy, Inc.		100		4,313
Xcel Energy, Inc.		1,700		33,983

				391,449
Total Common Stock (Cost $7,027,022)				6,702,444



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


Short-Term Investment 1.5% of net assets


Repurchase Agreement 1.5%
Fixed Income Clearing Corp. dated 09/30/2008, due 10/01/08 at 1.20%, with a maturity value of $101,003 (fully collateralized by Federal National Mortgage Association with a value of $104,276).		101,000		101,000

Total Short-Term Investment (Cost $101,000)				101,000


End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $7,145,052 and the unrealized appreciation and depreciation were $487,326 and ($828,934), respectively, with a net unrealized depreciation of ($341,608).


*		Non-income producing security.

REIT — Real Estate Investment Trust

Laudus Rosenberg U.S. Large Capitalization Value Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $7,128,022)		$6,803,444
Cash		455
Receivables:
Investments sold		73,683
Fund shares sold		19,878
Dividends		13,645
Due from investment adviser		399
Interest		3
Prepaid expenses	+	414


Total assets		6,911,921


Liabilities
Payables:
Investments bought		83,775
Fund shares redeemed		202
Distribution and shareholder services fees		131
Accrued expenses	+	31,841


Total liabilities		115,949


Net Assets
Total assets		6,911,921
Total liabilities	−	115,949


Net assets		$6,795,972
Net Assets by Source
Capital received from investors		7,105,734
Net investment income not yet distributed		81,540
Net realized capital losses		(66,724	)
Net unrealized capital losses		(324,578	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$561,514		59,166			$9.49
Select Shares	$6,234,458		654,471			$9.53

40 See financial notes

Laudus Rosenberg U.S. Large Capitalization Value Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends		$87,621
Interest	+	372


Total Investment Income		87,993


Net Realized Gains and Losses
Net realized losses on investments		(31,138	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(672,298	)


Expenses
Investment adviser fees		25,126
Accounting and administration fees		20,645
Professional fees		18,552
Transfer agent fees		8,770
Registration fees		6,426
Trustees’ fees		2,767
Custodian fees		1,530
Distribution and shareholder services fees (Investor Shares)		627
Shareholder reports		483
Sub-Accounting fees (Investor Shares)		321
Other expenses	+	555


Total expenses		85,802
Expense reduction by adviser¹	−	56,541
Custody credits	−	232


Net expenses		29,029


Increase (Decrease) in Net Assets from Operations
Total investment income		87,993
Net expenses	−	29,029


Net investment income		58,964
Net realized losses		(31,138	)
Net unrealized losses	+	(672,298	)


Decrease in net assets from operations		($644,472	)


¹	Includes reimbursement of sub-accounting fees on Investor Shares.

See financial notes 41

Laudus Rosenberg U.S. Large Capitalization Value Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$58,964			$86,559
Net realized gains (losses)			(31,138	)		223,229
Net unrealized losses	+		(672,298	)		(653,994	)


Decrease in net assets from operations			(644,472	)		(344,206	)


Distributions to Shareholders¹
Distributions from net investment income
Investor Shares			—			(4,658	)
Select Shares	+		—			(79,412	)


Total distributions from net investment income			—			(84,070	)


Distributions from net realized gains
Investor Shares			—			(57,870	)
Select Shares	+		—			(721,640	)


Total distributions from net realized gains			—			(779,510	)

Total distributions			$-			($863,580	)

Transactions in Fund Shares¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			21,128			$215,725			18,847			$243,213
Select Shares	+		109,943			1,126,214			25,907			320,163


Total shares sold			131,071			$1,341,939			44,754			$563,376


Shares Reinvested
Investor Shares			—			—			5,381			$59,887
Select Shares	+		—			—			70,923			790,081


Total shares reinvested			—			—			76,304			$849,968


Shares Redeemed
Investor Shares			(5,410	)		($56,155	)		(23,337	)		($285,264	)
Select Shares	+		(6,019	)		(63,817	)		(21,717	)		(300,566	)


Total shares redeemed			(11,429	)		($119,972	)		(45,054	)		($585,830	)

Net transactions in fund shares			119,642			$1,221,967			76,004			$827,514


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			593,995			$6,218,477			517,991			$6,598,749
Total increase or decrease	+		119,642			577,495			76,004			(380,272	)


End of period			713,637			$6,795,972			593,995			$6,218,477


Net investment income not yet distributed						$81,540						$22,576


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

42 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		15.97			19.59			19.07			15.88			14.66			9.53

Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.04	)		(0.06	)		(0.03	)		(0.05	)¹		0.01	¹
Net realized and unrealized gains (losses)		(0.96	)		(2.10	)		1.06			3.55			1.47			5.24

Total from investment operations		(0.97	)		(2.14	)		1.00			3.52			1.42			5.25
Less distributions:
Distributions from net investment income		—			—			—			—			(0.02	)		—
Distributions from net realized gains		—			(1.48	)		(0.48	)		(0.16	)		(0.18	)		(0.12	)
Return of Capital		—			—			—			(0.17	)		—			—

Total distributions		—			(1.48	)		(0.48	)		(0.33	)		(0.20	)		(0.12	)

Net asset value at end of period		15.00			15.97			19.59			19.07			15.88			14.66

Total return (%)		(6.07	)²		(11.36	)		5.34			22.40			9.70			55.22

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.31	³		1.34			1.34			1.43			1.49			1.40
Gross operating expenses		1.31	³		1.34			1.35			1.43			1.55			1.63
Net investment income (loss)		(0.00	)³		(0.20	)		(0.21	)		(0.20	)		(0.30	)		0.04
Portfolio turnover rate		65	²		74			86			89			63			93
Net assets, end of period ($ x 1,000)		146,453			169,670			217,045			284,285			58,284			2,581


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,4**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		16.23			19.80			19.23			15.96			14.71			9.55

Income (loss) from investment operations:
Net investment income (loss)		0.03			0.04			0.03			0.02			0.03	¹		0.06	¹
Net realized and unrealized gains (losses)		(0.99	)		(2.13	)		1.05			3.58			1.44			5.26

Total from investment operations		(0.96	)		(2.09	)		1.08			3.60			1.47			5.32
Less distributions:
Distributions from net investment income		—			0.00	⁵		(0.03	)		—			(0.04	)		(0.04	)
Distributions from net realized gains		—			(1.48	)		(0.48	)		(0.16	)		(0.18	)		(0.12	)
Return of Capital		—			—			—			(0.17	)		—			—

Total distributions		—			(1.48	)		(0.51	)		(0.33	)		(0.22	)		(0.16	)

Net asset value at end of period		15.27			16.23			19.80			19.23			15.96			14.71

Total return (%)		(5.92	)²		(10.98	)		5.71			22.80			9.98			55.90

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.97	³		0.96			0.97			1.09			1.14			1.14
Gross operating expenses		0.97	³		0.96			0.97			1.09			1.20			1.46
Net investment income (loss)		0.34	³		0.18			0.17			0.15			0.23			0.49
Portfolio turnover rate		65	²		74			86			89			63			93
Net assets, end of period ($ x 1,000)		520,924			566,055			718,185			673,599			256,444			98,077

* Unaudited

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

² Not annualized.

³ Annualized.

⁴ Effective July 31, 2008, the Institutional Shares became Select Shares.

⁵ Amount less than $0.005.

See financial notes 43

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)


	99	.0%	Common Stock		719,006,806		660,362,327

	99	.0%	Total Investments		719,006,806		660,362,327
	9	.4%	Collateral Invested for Securities on Loan		62,874,222		62,874,222
	(8	.4)%	Other Assets and Liabilities, Net				(55,859,427	)

	100	.0%	Net Assets				667,377,122


	Number		Value
Security	of Shares		($)





Common Stock 99.0% of net assets


Automobiles & Components 0.2%
Cooper Tire & Rubber Co. (a)		562		4,833
Exide Technologies (a) *		45,477		335,620
Hawk Corp., Class A *		20,600		414,678
Motorcar Parts of America, Inc. *		31,430		189,837
Standard Motor Products, Inc. (a)		38,374		238,687

				1,183,655


Banks 4.8%
Alliance Financial Corp.		4,960		114,080
Annapolis Bancorp, Inc. *		861		3,918
Astoria Financial Corp. (a)		87,288		1,809,480
BancFirst Corp. (a)		4,300		207,819
Banco Latinoamericano de Exportaciones, S.A., Class E		73,670		1,062,321
BancorpSouth, Inc. (a)		61,727		1,736,381
Bank of Hawaii Corp. (a)		28,200		1,507,290
Berkshire Hills Bancorp, Inc. (a)		6,923		221,536
BOK Financial Corp. (a)		7,699		372,709
Britton & Koontz Capital Corp.		1,040		14,030
Capital Bank Corp.		587		5,577
Carver Bancorp, Inc.		4,970		33,547
Central Virginia Bankshares, Inc.		1,110		9,102
Centrue Financial Corp.		4,300		60,028
CFS Bancorp, Inc. (a)		13,882		128,408
City National Corp. (a)		24,580		1,334,694
Commerce Bancshares, Inc. (a)		56,624		2,627,354
Community Bank Shares of Indiana, Inc. (a)		133		1,895
Community Capital Corp. (a)		1,031		9,856
Community Financial Corp.		423		2,475
Cullen/Frost Bankers, Inc.		35,600		2,136,000
Farmers Capital Bank Corp.		520		14,050
Fidelity Southern Corp. (a)		6,763		29,216
First BancTrust Corp.		5,377		51,565
First Citizens BancShares, Inc., Class A		440		78,760
First Community Corp.		46		483
First Defiance Financial Corp.		6,790		74,758
First Federal Bancshares of Arkansas, Inc. (a)		9,964		98,644
First Financial Service Corp. (a)		257		4,747
First Franklin Corp.		3,600		26,100
First M&F Corp.		2,051		23,443
First Merchants Corp. (a)		6,926		157,913
First Niagara Financial Group, Inc. (a)		32,709		515,167
First Place Financial Corp. (a)		30,397		390,601
First United Corp.		7,263		144,534
FirstMerit Corp. (a)		27,632		580,272
Flagstar Bancorp, Inc.		1,220		3,636
FNB Corp.		5,445		39,803
Gateway Financial Holdings, Inc. (a)		16,792		89,837
Glacier Bancorp, Inc. (a)		34,563		856,126
GS Financial Corp.		2,170		33,440
Guaranty Bancorp *		6,546		39,931
Guaranty Federal Bancshares, Inc. (a)		2,412		27,497
Habersham Bancorp (a)		7,400		40,848
Hawthorn Bancshares, Inc.		5,070		123,556
HF Financial Corp.		6,971		99,302
HMN Financial, Inc. (a)		8,397		103,955
Horizon Bancorp (a)		3,681		81,019
Independent Bank Corp.		1,850		11,452
Indiana Community Bancorp (a)		1,298		19,340
International Bancshares Corp. (a)		10,428		281,556
Landmark Bancorp, Inc.		270		5,805
Liberty Bancorp, Inc.		652		5,868
LSB Financial Corp.		4,123		69,369
Monarch Community Bancorp, Inc.		4,130		38,202
MutualFirst Financial, Inc. (a)		3,505		34,209
New Hampshire Thrift Bancshares, Inc.		3,655		32,895
New York Community Bancorp, Inc. (a)		29,570		496,480
Northeast Bancorp		733		8,444
Park Bancorp, Inc. (a)		1,091		19,638
Parkvale Financial Corp.		9,922		156,271
People’s United Financial, Inc. (a)		157,109		3,024,348
Peoples Bancorp of North Carolina		11,844		133,600
Peoples Bancorp, Inc. (a)		9,373		204,050
Premier Financial Bancorp, Inc.		4,762		46,429
Prosperity Bancshares, Inc. (a)		33,020		1,122,350
Provident Financial Holdings, Inc. (a)		1,975		17,380
River Valley Bancorp		600		9,528
Security National Financial Corp., Class A *		1,133		2,708
Simmons First National Corp., Class A (a)		9,048		322,109
Southern Missouri Bancorp, Inc.		5,141		67,090

44 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Southwest Bancorp, Inc. (a)		39,571		699,220
Sovereign Bancorp, Inc.		840		3,318
StellarOne Corp. (a)		8,869		183,322
Sun Bancorp, Inc. (a) *		4,168		56,476
SVB Financial Group (a) *		16,900		978,848
TCF Financial Corp. (a)		17,086		307,548
TF Financial Corp.		6,010		138,230
The South Financial Group, Inc. (a)		89,162		653,557
TierOne Corp.		3,490		17,904
UMB Financial Corp.		8,010		420,685
United Bancshares, Inc.		1,140		12,107
United Community Financial Corp. (a)		38,269		191,345
United Western Bancorp, Inc.		18,195		227,437
Valley National Bancorp (a)		95,650		2,004,824
Westamerica Bancorp. (a)		15,912		915,417
Willow Financial Bancorp, Inc.		1,040		9,506
Wilmington Trust Corp. (a)		39,927		1,151,095
WSFS Financial Corp. (a)		15,751		945,060
WVS Financial Corp. (a)		1,900		31,160

				32,203,883


Capital Goods 10.4%
AAON, Inc. (a)		330		6,003
Aecom Technology Corp. *		189,000		4,619,160
Aircastle Ltd. (a)		89,937		891,276
Alamo Group, Inc. (a)		6,975		118,924
Alliant Techsystems, Inc. (a) *		48,458		4,552,145
Allied Motion Technologies, Inc. *		15,522		80,870
Altra Holdings, Inc. (a) *		5,948		87,792
American Railcar Industries, Inc. (a)		3,058		49,050
Ameron International Corp. (a)		282		20,205
Ampco-Pittsburgh Corp. (a)		1,100		28,490
Applied Industrial Technologies, Inc. (a)		34,277		923,080
Armstrong World Industries, Inc. (a)		56,490		1,632,561
Baldwin Technology Co., Inc., Class A *		324		829
Beacon Roofing Supply, Inc. (a) *		1,364		21,306
BlueLinx Holdings, Inc. (a)		56,321		297,938
C&D Technologies, Inc. (a) *		19,599		111,322
Chicago Rivet & Machine Co.		2,026		40,014
CIRCOR International, Inc. (a)		11,510		499,879
Coleman Cable, Inc. (a) *		6,250		62,687
Columbus McKinnon Corp. (a) *		11,001		259,294
Crane Co.		138,828		4,124,580
Ducommun, Inc.		5,976		142,707
Edac Technologies Corp. *		9,834		32,157
EMCOR Group, Inc. (a) *		410		10,791
EnPro Industries, Inc. (a) *		45,855		1,703,972
Esterline Technologies Corp. *		7,530		298,113
Federal Signal Corp.		59,350		813,095
Gibraltar Industries, Inc. (a)		9,440		176,622
Griffon Corp. (a) *		99,439		896,940
Hardinge, Inc. (a)		25,953		329,603
Harsco Corp. (a)		1,208		44,926
Herley Industries, Inc. (a) *		8,269		141,400
Hurco Cos., Inc. (a) *		17,868		528,357
Insteel Industries, Inc. (a)		31,057		422,065
K-Tron International, Inc. (a) *		6,575		847,057
Kadant, Inc. (a) *		50,900		1,158,993
Kennametal, Inc. (a)		143,679		3,896,574
Key Technology, Inc. (a) *		708		16,780
LaBarge, Inc. (a) *		4,085		61,520
Lawson Products, Inc. (a)		6,926		191,504
Layne Christensen Co. (a) *		6,844		242,483
Lennox International, Inc. (a)		38,425		1,278,400
Lydall, Inc. (a) *		44,090		424,587
Manitex International, Inc. (a) *		2,610		8,117
MasTec, Inc. (a) *		123,651		1,643,322
Meadow Valley Corp. *		9,289		91,497
MFRI, Inc. *		1,240		13,950
Michael Baker Corp. *		17,100		595,080
Mueller Industries, Inc. (a)		29,156		670,880
Navistar International Corp. *		103,307		5,597,173
NCI Building Systems, Inc. (a) *		49,230		1,563,052
NN, Inc. (a)		23,511		302,116
Nortech Systems, Inc. *		3,888		19,634
Patrick Industries, Inc. *		3,540		19,258
Perini Corp. (a) *		79,817		2,058,480
Powell Industries, Inc. (a) *		8,942		364,923
PowerSecure International, Inc. (a) *		22,806		138,204
Preformed Line Products Co.		5,556		324,137
Regal-Beloit Corp. (a)		77,579		3,298,659
Rush Enterprises, Inc., Class A *		47,826		612,173
Seaboard Corp. (a)		472		593,304
Servotronics, Inc. (a)		980		7,350
SL Industries, Inc. *		12,970		171,852
SPX Corp. (a)		1,573		121,121
Standex International Corp. (a)		30,534		847,318
SunPower Corp., Class B *		69,803		4,819,897
Taylor Devices, Inc. *		6,138		35,600
Tech/Ops Sevcon, Inc.		6,860		29,498
Tecumseh Products Co., Class A (a) *		490		12,270
The Eastern Co.		10,010		135,135
The L.S. Starrett Co., Class A		16,050		295,801
The Manitowoc Co., Inc.		321,208		4,994,784
The Shaw Group, Inc. (a) *		480		14,750
The Timken Co.		236,300		6,699,105
The Toro Co. (a)		2,310		95,403
Thomas & Betts Corp. (a) *		12,390		484,077
Tredegar Corp. (a)		6,674		118,730
TriMas Corp. (a) *		4,230		27,749
Triumph Group, Inc. (a)		722		33,003
Twin Disc, Inc. (a)		9,551		131,422
United Capital Corp. (a) *		4,434		117,457
Watts Water Technologies, Inc., Class A (a)		2,170		59,350
Willis Lease Finance Corp. (a) *		21,670		242,054

				69,493,736


Commercial & Professional Supplies 2.5%
A.T. Cross Co., Class A (a) *		13,969		94,011
ABM Industries, Inc.		8,165		178,324
Avalon Holdings Corp., Class A *		6,220		20,837
Casella Waste Systems, Inc., Class A (a) *		10,596		124,397
CDI Corp. (a)		38,539		860,576
Champion Industries, Inc. (a)		11,919		42,670

See financial notes 45

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Comfort Systems USA, Inc. (a)		118,521		1,583,441
Deluxe Corp. (a)		110,084		1,584,109
Ecology & Environment, Inc., Class A		4,252		41,670
EnergySolutions (a)		18,690		186,900
G & K Services, Inc., Class A (a)		2,509		82,922
GP Strategies Corp. *		38,690		294,044
Hudson Highland Group, Inc. *		21,532		149,647
ICT Group, Inc. (a) *		18,260		146,993
Kelly Services, Inc., Class A (a)		79,330		1,511,237
LECG Corp. (a) *		66,309		535,114
MPS Group, Inc. *		191,574		1,931,066
Nashua Corp. (a) *		7,734		62,104
National Technical Systems, Inc.		16,403		85,952
North American Galvanizing & Coatings, Inc. *		5,619		28,657
On Assignment, Inc. (a) *		4,608		36,311
RCM Technologies, Inc. *		26,657		46,383
Spherion Corp. (a) *		157,600		767,512
Steelcase, Inc., Class A (a)		235,887		2,535,785
Sykes Enterprises, Inc. (a) *		83,840		1,841,126
Tufco Technologies, Inc. *		2,242		12,174
Viad Corp. (a)		45,580		1,312,248
VSE Corp. (a)		10,621		358,246
Westaff, Inc. *		29,962		10,786

				16,465,242


Consumer Durables & Apparel 2.2%
American Biltrite, Inc. *		1,265		6,192
American Greetings Corp., Class A (a)		106,993		1,635,923
Blyth, Inc. (a)		179		2,030
Callaway Golf Co. (a)		20,013		281,583
CSS Industries, Inc. (a)		9,870		254,054
Culp, Inc. *		25,460		150,723
Flexsteel Industries, Inc.		17,600		181,984
GameTech International, Inc. (a) *		8,591		22,423
LaCrosse Footwear, Inc.		2,350		37,600
Leggett & Platt, Inc. (a)		29,760		648,470
Liz Claiborne, Inc. (a)		262,055		4,305,564
Man Sang Holdings, Inc. (a) *		9,800		31,850
Movado Group, Inc. (a)		7,041		157,366
National Presto Industries, Inc. (a)		13,510		1,006,495
P & F Industries, Inc., Class A *		5,120		11,725
Palm Harbor Homes, Inc. *		2,242		22,218
Q.E.P. Co., Inc. *		8,900		47,437
R. G. Barry Corp. *		2,181		14,875
RC2 Corp. *		3,091		61,820
Russ Berrie & Co., Inc. (a) *		1,990		15,263
Skechers U.S.A., Inc., Class A (a) *		10		168
The Warnaco Group, Inc. (a) *		119,683		5,420,443
Weyco Group, Inc. (a)		6,555		219,396
Wolverine World Wide, Inc. (a)		18,203		481,651

				15,017,253


Consumer Services 1.2%
Ark Restaurants Corp.		150		2,406
Bob Evans Farms, Inc. (a)		79,762		2,176,705
Canterbury Park Holding Corp.		40		350
Carrols Restaurant Group, Inc. (a) *		4,240		12,720
CBRL Group, Inc. (a)		64,094		1,685,672
CEC Entertainment, Inc. (a) *		19,700		654,040
Churchill Downs, Inc. (a)		2,057		100,752
Coinstar, Inc. (a) *		24,707		790,624
CPI Corp. (a)		15,330		164,797
DineEquity, Inc. (a)		81		1,366
Dover Motorsports, Inc. (a)		17,945		97,800
Flanigan’s Enterprises, Inc. *		1,831		10,986
Frisch’s Restaurants, Inc.		5,800		131,660
ILX Resorts, Inc. *		6,040		9,000
J. Alexander’s Corp.		11,170		62,552
Jackson Hewitt Tax Service, Inc. (a)		15,570		238,844
Lodgian, Inc. (a) *		30,600		238,680
Red Lion Hotels Corp. *		45,780		367,156
Regis Corp. (a)		14,480		398,200
Silverleaf Resorts, Inc. (a) *		56,501		70,061
Speedway Motorsports, Inc. (a)		37,440		729,331
Star Buffet, Inc.		1,937		7,651
The Marcus Corp. (a)		549		8,828

				7,960,181


Diversified Financials 0.2%
California First National Bancorp		8,630		86,214
Cardtronics, Inc. (a) *		640		5,030
Interactive Brokers Group, Inc., Class A (a) *		53,366		1,183,124
MicroFinancial, Inc.		33,200		131,804

				1,406,172


Energy 10.4%
Adams Resources & Energy, Inc.		231		5,262
ATP Oil & Gas Corp. *		59,696		1,063,186
Basic Energy Services, Inc. (a) *		8,364		178,153
Berry Petroleum Co., Class A (a)		1,932		74,826
Bill Barrett Corp. (a) *		53,050		1,703,435
BMB Munai, Inc. (a) *		58,333		242,082
Callon Petroleum Co. *		14,460		260,714
Cimarex Energy Co. (a)		113,346		5,543,753
Complete Production Services, Inc. (a) *		13,509		271,936
Comstock Resources, Inc. *		2,299		115,065
Contango Oil & Gas Co. (a) *		340		18,353
Dawson Geophysical Co. (a) *		300		14,007
DHT Maritime, Inc. (a)		1,150		7,728
Encore Acquisition Co. (a) *		18,201		760,438
Energy Partners Ltd. (a) *		26,550		230,189
Forest Oil Corp. (a) *		52,275		2,592,840
Foundation Coal Holdings, Inc. (a)		83,400		2,967,372
Geokinetics, Inc. (a) *		14,600		277,400
Geomet, Inc. (a) *		8,850		48,144
Gulf Island Fabrication, Inc.		8,011		276,139
GulfMark Offshore, Inc. (a) *		57,724		2,590,653
Helix Energy Solutions Group, Inc. (a) *		17,350		421,258
HKN, Inc. *		90		709
Hornbeck Offshore Services, Inc. (a) *		248		9,578
International Coal Group, Inc. (a) *		21,899		136,650
ION Geophysical Corp. (a) *		181,621		2,577,202
James River Coal Co. (a) *		1,981		43,562

46 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Lufkin Industries, Inc. (a)		4,432		351,679
Mariner Energy, Inc. (a) *		195,918		4,016,319
Massey Energy Co. (a)		116,712		4,163,117
McMoRan Exploration Co. (a) *		72,653		1,717,517
Oil States International, Inc. (a) *		74,215		2,623,500
Overseas Shipholding Group, Inc. (a)		15,040		876,982
Parallel Petroleum Corp. (a) *		34,425		324,284
Parker Drilling Co. (a) *		8,777		70,392
Penn Virginia Corp.		12,133		648,388
Petroleum Development Corp. (a) *		11,500		510,255
PetroQuest Energy, Inc. (a) *		2,353		36,119
Pioneer Drilling Co. *		23,779		316,261
Rosetta Resources, Inc. (a) *		56,627		1,039,672
Rowan Cos., Inc. (a)		159,700		4,878,835
Ship Finance International Ltd. (a)		117,649		2,536,512
Southern Union Co. (a)		680		14,042
St. Mary Land & Exploration Co. (a)		12,695		452,577
Stone Energy Corp. (a) *		40,388		1,709,624
Superior Energy Services, Inc. *		1,971		61,377
Swift Energy Co. (a) *		39,100		1,512,779
Teekay Corp. (a)		123,345		3,253,841
Teekay Tankers Ltd., Class A (a)		12,508		211,760
TETRA Technologies, Inc. (a) *		10,772		149,192
Tidewater, Inc. (a)		130,158		7,205,547
TXCO Resources, Inc. (a) *		13,400		134,536
Unit Corp. *		65,499		3,263,160
VeraSun Energy Corp. (a) *		36,341		113,747
W&T Offshore, Inc. (a)		49,402		1,348,181
Warren Resources, Inc. *		7,639		76,237
Whiting Petroleum Corp. *		46,300		3,299,338
Willbros Group, Inc. (a) *		4,888		129,532

				69,475,936


Food & Staples Retailing 1.0%
Arden Group, Inc., Class A (a)		220		32,036
Longs Drug Stores Corp. (a)		52,900		4,001,356
Nash Finch Co. (a)		33,263		1,434,301
The Andersons, Inc. (a)		7,100		250,062
Village Super Market, Inc., Class A		4,730		225,479
Weis Markets, Inc.		15,545		559,776

				6,503,010


Food, Beverage & Tobacco 3.2%
Cal-Maine Foods, Inc. (a)		36,900		1,012,536
Chiquita Brands International, Inc. (a) *		30,740		485,999
Constellation Brands, Inc., Class A (a) *		527,776		11,326,073
Corn Products International, Inc.		102,783		3,317,835
Diamond Foods, Inc. (a)		38,500		1,079,155
Flowers Foods, Inc. (a)		98,388		2,888,672
Griffin Land & Nurseries, Inc. (a)		2,236		82,911
J & J Snack Foods Corp. (a)		6,059		205,461
Omega Protein Corp. (a) *		30,070		353,623
Overhill Farms, Inc. (a) *		16,062		82,719
Seneca Foods Corp., Class B *		1,000		20,480
Smart Balance, Inc. (a) *		1,780		11,677
Tasty Baking Co.		22,514		92,983
The Boston Beer Co., Inc., Class A (a) *		6,840		324,831
The J. M. Smucker Co.		190		9,631
Tyson Foods, Inc., Class A		740		8,836

				21,303,422


Health Care Equipment & Services 7.1%
Advanced Medical Optics, Inc. (a) *		66,280		1,178,458
Allied Healthcare Products, Inc. *		19,700		112,487
American Dental Partners, Inc. (a) *		33,900		396,630
Angeion Corp. *		9,754		48,380
Anika Therapeutics, Inc. (a) *		1,364		9,862
Atrion Corp. (a)		783		80,672
Capital Senior Living Corp. (a) *		23,400		177,840
Cardiac Science Corp. (a) *		59,815		619,683
CONMED Corp. (a) *		73,087		2,338,784
Cyberonics, Inc. (a) *		5,632		95,744
Cynosure, Inc., Class A (a) *		445		7,983
Datascope Corp. (a)		32,064		1,655,464
Daxor Corp.		600		9,720
ev3, Inc. (a) *		77,593		779,034
Greatbatch, Inc. (a) *		5,520		135,461
Health Net, Inc. *		232,296		5,482,186
Hologic, Inc. (a) *		960		18,557
Invacare Corp. (a)		73,331		1,770,210
Inverness Medical Innovations, Inc. (a) *		196,125		5,883,750
Kewaunee Scientific Corp.		5,900		66,375
Kindred Healthcare, Inc. *		83,127		2,291,811
MedCath Corp. (a) *		20,564		368,507
MTS Medication Technologies *		13,395		67,511
National Dentex Corp. (a) *		28		171
National Healthcare Corp. (a)		5,558		261,893
Orthofix International N.V. (a) *		46,310		862,755
Osteotech, Inc. (a) *		15,822		67,402
Skilled Healthcare Group, Inc., Class A (a) *		41,368		657,338
SonoSite, Inc. (a) *		3,920		123,088
Span-America Medical Systems, Inc.		7,600		90,440
SRI/Surgical Express, Inc. *		8,659		28,142
STERIS Corp.		140,325		5,273,414
Symmetry Medical, Inc. *		3,270		60,691
Teleflex, Inc. (a)		128,880		8,182,591
The Cooper Cos., Inc. (a)		95,004		3,302,339
Theragenics Corp. (a) *		75,290		234,905
Universal American Financial Corp. *		108,460		1,322,127
Wright Medical Group, Inc. *		46,975		1,429,919
Young Innovations, Inc.		1,780		35,920
Zoll Medical Corp. (a) *		60,998		1,995,855

				47,524,099


Household & Personal Products 0.7%
Church & Dwight Co., Inc.		19,640		1,219,447
Elizabeth Arden, Inc. *		66,407		1,303,569
Energizer Holdings, Inc. (a) *		3		242
Inter Parfums, Inc. (a)		33,740		457,514

See financial notes 47

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Natural Alternative International, Inc. *		16,941		119,434
Nu Skin Enterprises, Inc., Class A (a)		6,653		107,912
Nutraceutical International Corp. (a) *		10,020		110,721
Oil-Dri Corp. of America		18,400		311,328
Parlux Fragrances, Inc. *		4,210		21,639
Physicians Formula Holdings, Inc. *		35,896		213,581
Prestige Brands Holdings, Inc. *		11,720		104,074
Revlon, Inc. (a) *		31,381		466,008
Schiff Nutrition International, Inc. *		17,820		121,711

				4,557,180


Insurance 2.6%
21st Century Holding Co. (a)		3,310		17,411
Affirmative Insurance Holdings, Inc. (a)		4,380		13,841
American Financial Group, Inc. (a)		241,224		7,116,108
American National Insurance Co. (a)		9,396		811,157
American Physicians Service Group, Inc.		10,665		225,778
American Safety Insurance Holdings Ltd. *		7,400		111,814
Baldwin & Lyons, Inc., Class B		245		5,873
CastlePoint Holdings Ltd.		14,300		159,159
CNA Financial Corp.		3,967		104,094
Kansas City Life Insurance Co. (a)		7,665		352,590
Max Capital Group Ltd. (a)		3,510		81,537
Mercer Insurance Group, Inc.		2,180		35,011
National Financial Partners Corp. (a)		58,578		878,670
National Western Life Insurance Co., Class A (a)		3,708		897,595
PMA Capital Corp., Class A *		11,539		101,774
Presidential Life Corp. (a)		28,507		450,125
Reinsurance Group of America, Inc., Class A (a)		92,348		4,986,792
RenaissanceRe Holdings Ltd. (a)		6,636		345,072
The National Security Group, Inc.		510		7,334
Unico American Corp. *		11,830		97,006
Universal Insurance Holdings, Inc. (a)		64,547		224,623
Validus Holdings Ltd.		4,260		99,045
Wesco Financial Corp.		338		120,666

				17,243,075


Materials 6.9%
A. Schulman, Inc.		4,661		92,195
A.M. Castle & Co. (a)		4,390		75,859
American Pacific Corp. *		11,589		151,352
Arch Chemicals, Inc. (a)		19,366		683,620
Ashland, Inc.		55,733		1,629,633
Cabot Corp. (a)		990		31,462
Chemtura Corp. (a)		547,330		2,495,825
Continental Materials Corp. *		300		6,113
Cytec Industries, Inc.		61,660		2,399,191
Ferro Corp. (a)		23,632		475,003
FMC Corp.		244,036		12,541,010
Friedman Industries, Inc.		15,410		102,477
Greif, Inc., Class A (a)		7,045		462,293
H.B. Fuller Co. (a)		4,380		91,411
Hercules, Inc. (a)		73,732		1,459,156
Innophos Holdings, Inc. (a)		51,943		1,266,370
Innospec, Inc. (a)		25,177		303,635
International Flavors & Fragrances, Inc. (a)		4,750		187,435
Kaiser Aluminum Corp. (a)		2,599		111,627
Material Sciences Corp. *		9,583		55,102
Minerals Technologies, Inc. (a)		15,440		916,518
Nalco Holding Co. (a)		114,186		2,117,008
Olin Corp. (a)		14,552		282,309
Olympic Steel, Inc. (a)		9		265
OM Group, Inc. (a) *		11,221		252,473
Penford Corp. (a)		8,952		158,361
PolyOne Corp. *		25,426		163,998
Reliance Steel & Aluminum Co. (a)		4,867		184,800
Rockwood Holdings, Inc. *		75,475		1,936,688
RPM International, Inc. (a)		35,294		682,586
Schweitzer-Mauduit International, Inc. (a)		35,298		670,309
Stepan Co. (a)		20,720		1,130,690
Terra Industries, Inc.		255,041		7,498,205
The Scotts Miracle-Gro Co., Class A (a)		92,398		2,184,289
The Valspar Corp. (a)		8,821		196,620
United States Lime & Minerals, Inc. *		5,054		194,630
Universal Stainless & Alloy Products, Inc. (a) *		5,398		137,919
Worthington Industries, Inc. (a)		177,213		2,647,562

				45,975,999


Media 0.1%
Carmike Cinemas, Inc.		560		2,061
Cinemark Holdings, Inc. (a)		1,210		16,456
Fisher Communications, Inc. (a)		3,850		151,690
Knology, Inc. (a) *		170		1,372
LodgeNet Interactive Corp. (a) *		20,449		41,511
Mediacom Communications Corp., Class A (a) *		22,441		132,851
New Frontier Media, Inc.		1,183		2,815
RCN Corp. (a) *		15,369		188,424

				537,180


Pharmaceuticals & Biotechnology 4.5%
Accelrys, Inc. (a) *		4,538		24,914
Affymetrix, Inc. (a) *		180,366		1,396,033
Albany Molecular Research, Inc. (a) *		9,565		173,031
Alexion Pharmaceuticals, Inc. (a) *		88,648		3,483,866
Bio-Rad Laboratories, Inc., Class A *		2,476		245,421
Bioanalytical Systems, Inc. *		3,360		16,195
CV Therapeutics, Inc. (a) *		1,670		18,036
Harvard Bioscience, Inc. (a) *		85,930		399,575
ImClone Systems, Inc. *		57,678		3,601,414
Invitrogen Corp. (a) *		228,715		8,645,427
King Pharmaceuticals, Inc. (a) *		152,978		1,465,529

48 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Mylan, Inc. (a) *		37,994		433,891
Neurocrine Biosciences, Inc. (a) *		97,546		457,491
Noven Pharmaceuticals, Inc. (a) *		21,430		250,302
PerkinElmer, Inc. (a)		288,214		7,196,704
Pharmanet Development Group, Inc. (a) *		54,421		392,920
Varian, Inc. *		35,430		1,519,947
Watson Pharmaceuticals, Inc. (a) *		4,438		126,483

				29,847,179


Real Estate 3.7%
AmREIT, Inc., Class A		720		4,860
Ashford Hospitality Trust (a)		249,402		1,010,078
BioMed Realty Trust, Inc.		17,474		462,187
CBL & Associates Properties, Inc. (a)		177,039		3,554,943
Cedar Shopping Centers, Inc. (a)		105,632		1,396,455
DiamondRock Hospitality Co.		78,760		716,716
Douglas Emmett, Inc.		303,931		7,011,688
Extra Space Storage, Inc. (a)		100,706		1,546,844
Grubb & Ellis Co. (a)		17,350		46,845
Hersha Hospitality Trust (a)		116,141		864,089
HRPT Properties Trust		650,726		4,483,502
Investors Real Estate Trust (a)		2,377		26,599
Medical Properties Trust, Inc. (a)		141,970		1,611,360
MHI Hospitality Corp.		1,250		6,550
Mission West Properties, Inc. (a)		47,049		458,257
Monmouth Real Estate Invesment Corp., Class A (a)		51,314		399,736
One Liberty Properties, Inc.		26,650		470,906
Ramco-Gershenson Properties Trust (a)		26,198		587,359
Strategic Hotels & Resorts, Inc.		12,800		96,640
Sunstone Hotel Investors, Inc.		14,751		199,139
Supertel Hospitality, Inc.		14,857		60,171

				25,014,924


Retailing 4.8%
1-800-FLOWERS.COM, Inc., Class A *		60,661		365,179
99 Cents Only Stores (a) *		55,930		613,552
A.C. Moore Arts & Crafts, Inc. (a) *		18,105		113,518
AMCON Distributing Co.		1,300		31,850
AnnTaylor Stores Corp. (a) *		5,741		118,494
Big Lots, Inc. (a) *		208,846		5,812,184
Books-A-Million, Inc.		37,920		189,600
Borders Group, Inc. (a)		182,500		1,197,200
Charming Shoppes, Inc. (a) *		11,065		54,108
Collective Brands, Inc. (a) *		26,928		493,052
Conn’s, Inc. (a) *		12,900		241,359
Dollar Tree, Inc. *		185,855		6,757,688
Educational Development Corp.		764		3,740
Family Dollar Stores, Inc. (a)		12,412		294,164
Franklin Covey Co. *		49,290		356,860
Fred’s, Inc., Class A (a)		3,040		43,229
Hastings Entertainment, Inc. *		26,860		155,519
Haverty Furniture Cos., Inc. (a)		44,031		503,715
Hot Topic, Inc. (a) *		1,923		12,711
HSN, Inc. (a) *		74,594		821,280
Jo-Ann Stores, Inc. (a) *		65,809		1,380,673
Jos. A. Bank Clothiers, Inc. (a) *		17,013		571,637
Lithia Motors, Inc., Class A (a)		1,048		4,517
Monro Muffler Brake, Inc. (a)		2,781		64,130
Netflix, Inc. (a) *		76,118		2,350,524
New York & Co, Inc. (a) *		55,700		531,378
RadioShack Corp.		159,060		2,748,557
Retail Ventures, Inc. (a) *		4,441		17,320
REX Stores Corp. (a) *		24,448		282,374
Stage Stores, Inc. (a)		59,431		811,827
Stein Mart, Inc. (a)		22,164		86,661
Systemax, Inc. (a)		13,438		188,938
The Children’s Place Retail Stores, Inc. *		65,530		2,185,425
The Finish Line, Inc., Class A (a)		40,742		407,013
The Pep Boys - Manny, Moe & Jack (a)		115,870		716,077
The Talbots, Inc. (a)		67,710		887,001
West Marine, Inc. (a) *		25,020		149,119
Zale Corp. (a) *		15,994		399,850

				31,962,023


Semiconductors & Semiconductor Equipment 4.7%
Actel Corp. (a) *		67,495		842,338
Aetrium, Inc. (a) *		7,101		21,232
Applied Micro Circuits Corp. (a) *		790		4,724
CEVA, Inc. (a) *		50,470		418,901
Cirrus Logic, Inc. (a) *		177,932		969,729
Cypress Semiconductor Corp. (a) *		254,509		1,328,537
Fairchild Semiconductor International, Inc. *		198,334		1,763,189
FEI Co. *		90,663		2,158,686
Integrated Device Technology, Inc. (a) *		517,000		4,022,260
Integrated Silicon Solution, Inc. *		54,870		126,750
IXYS Corp. (a)		2,824		25,670
LSI Corp. (a) *		65,416		350,630
Micron Technology, Inc. (a) *		962,362		3,897,566
Microtune, Inc. *		222		595
Pericom Semiconductor Corp. *		43,930		461,265
PMC-Sierra, Inc. (a) *		517,868		3,842,581
Semitool, Inc. (a) *		12,483		102,111
Skyworks Solutions, Inc. (a) *		454,433		3,799,060
Standard Microsystems Corp. *		22,535		562,924
Teradyne, Inc. *		371,780		2,903,602
TriQuint Semiconductor, Inc. (a) *		340,515		1,631,067
Ultratech, Inc. (a) *		53,821		651,234
Veeco Instruments, Inc. (a) *		85,946		1,272,860

				31,157,511


Software & Services 12.8%
Adept Technology, Inc. *		1,420		12,411
AsiaInfo Holdings, Inc. (a) *		49,492		454,337
Astea International, Inc. (a) *		8,570		33,766
Bottomline Technologies, Inc. (a) *		5,047		52,489
CACI International, Inc., Class A (a) *		22,602		1,132,360
CIBER, Inc. (a) *		163,269		1,141,250
Computer Task Group, Inc. *		29,950		194,675
Compuware Corp. (a) *		348,942		3,381,248
Convergys Corp. (a) *		367,834		5,436,586
CSG Systems International, Inc. *		13,353		234,078

See financial notes 49

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

CSP, Inc. (a) *		9,451		49,901
Dynamics Research Corp. *		18,374		141,112
EarthLink, Inc. *		302,752		2,573,392
Edgewater Technology, Inc. *		33,993		165,206
Fair Isaac Corp. (a)		32,025		738,176
Gevity HR, Inc. (a)		49,469		360,134
GSI Commerce, Inc. (a) *		49,016		758,768
Hackett Group, Inc. (a) *		23,624		128,515
Hewitt Associates, Inc., Class A (a) *		224,574		8,183,477
IAC/InterActiveCorp (a) *		186,487		3,226,225
Interwoven, Inc. (a) *		113,500		1,602,620
INX, Inc. *		1,080		7,333
JDA Software Group, Inc. *		75,752		1,152,188
Keynote Systems, Inc. (a) *		29,014		384,435
Lawson Software, Inc. *		378,901		2,652,307
Magma Design Automation, Inc. (a) *		22,013		88,492
Manhattan Associates, Inc. (a) *		220		4,915
MAXIMUS, Inc.		54,634		2,012,717
Mentor Graphics Corp. *		137,594		1,561,692
Metavante Technologies, Inc. *		3,320		63,943
ModusLink Global Solutions, Inc. (a) *		93,860		901,995
Ness Technologies, Inc. (a) *		86,221		988,955
NetScout Systems, Inc. (a) *		82,166		874,246
Novell, Inc. (a) *		953,564		4,901,319
Online Resources Corp. (a) *		1,240		9,635
OPNET Technologies, Inc. (a) *		1,640		19,975
Perot Systems Corp., Class A *		227,578		3,948,478
Progress Software Corp. (a) *		12,582		327,006
QAD, Inc. (a)		39,060		270,295
Quest Software, Inc. (a) *		74,240		942,106
Radiant Systems, Inc. (a) *		58,793		510,911
Retalix Ltd. (a) *		3,772		45,905
S1 Corp. (a) *		102,521		627,429
Sapient Corp. (a) *		18,420		136,861
Servidyne, Inc. (a)		754		3,227
Soapstone Networks, Inc. (a) *		19,713		66,039
Solera Holdings, Inc. (a) *		157,857		4,533,653
Sonic Solutions (a) *		13,138		57,807
SPSS, Inc. (a) *		51,700		1,517,912
SumTotal Systems, Inc. *		52,651		215,343
Sybase, Inc. (a) *		256,161		7,843,650
Synopsys, Inc. *		353,755		7,057,412
Take-Two Interactive Software, Inc. (a) *		48,011		787,380
TechTeam Global, Inc. *		26,600		197,372
TeleCommunication Systems, Inc., Class A (a) *		5,794		40,037
TIBCO Software, Inc. (a) *		163,479		1,196,666
TNS, Inc. *		54,365		1,053,050
TSR, Inc.		2,139		5,112
Unisys Corp. (a) *		92,817		255,247
United Online, Inc. (a)		183,353		1,725,352
Vignette Corp. (a) *		76,256		818,989
Websense, Inc. (a) *		124,851		2,790,420
Website Pros, Inc. (a) *		83,361		450,149
Wind River Systems, Inc. (a) *		213,034		2,130,340

				85,179,021


Technology Hardware & Equipment 4.4%
ADC Telecommunications, Inc. (a) *		308,816		2,609,495
Arrow Electronics, Inc. *		2,998		78,608
Astro-Med, Inc.		15,610		146,578
Avnet, Inc. *		141,313		3,480,539
Avocent Corp. (a) *		13,169		269,438
AVX Corp. (a)		65,610		668,566
BigBand Networks (a) *		33,249		122,689
Black Box Corp.		47,851		1,652,295
Coherent, Inc. (a) *		59,892		2,129,161
CommScope, Inc. (a) *		383		13,267
Communications Systems, Inc.		21,480		228,547
CTS Corp. (a)		100,155		1,279,981
Data I/O Corp. (a) *		10,304		43,174
Digi International, Inc. (a) *		14,478		147,676
Electro Scientific Industries, Inc. *		82,347		1,170,974
Electronics for Imaging, Inc. (a) *		9,426		131,304
EMS Technologies, Inc. *		21,807		486,514
Emulex Corp. (a) *		268,530		2,865,215
Gerber Scientific, Inc. (a) *		55,406		506,411
Imation Corp. (a)		1,610		36,370
Insight Enterprises, Inc. (a) *		124,171		1,665,133
IntriCon Corp. *		9,530		37,548
Itron, Inc. (a) *		3,554		314,636
Keithley Instruments, Inc. (a)		2,890		24,189
KVH Industries, Inc. *		1,180		10,844
LeCroy Corp. (a) *		13,709		105,422
Loral Space & Communications, Inc. (a) *		5,657		83,554
Measurement Specialties, Inc. (a) *		38,491		671,283
Mercury Computer Systems, Inc. (a) *		11,991		106,720
Mesa Laboratories, Inc.		2,568		54,570
Methode Electronics, Inc. (a)		8,258		73,827
Mettler-Toledo International, Inc. *		6,864		672,672
MOCON, Inc.		3,557		37,171
MTS Systems Corp. (a)		436		18,356
O.I. Corp.		4,685		52,472
Oplink Communications, Inc. (a) *		42,644		514,713
Optical Cable Corp. (a) *		970		4,025
OSI Systems, Inc. (a) *		41,620		978,486
PC-Tel, Inc. (a)		4,350		40,542
Perceptron, Inc. *		18,668		101,927
Richardson Electronics Ltd.		4,080		25,296
Schmitt Industries, Inc. *		1,892		11,967
Sigmatron International, Inc. *		690		3,381
Super Micro Computer, Inc. (a) *		14,855		133,844
SYNNEX Corp. (a) *		8,610		192,347
Tekelec (a) *		82,768		1,157,924
TESSCO Technologies, Inc. *		11,080		141,824
Tollgrade Communications, Inc. *		31,971		134,278
Vishay Intertechnology, Inc. (a) *		480,376		3,180,089
Zygo Corp. (a) *		51,155		643,530

				29,259,372


Telecommunication Services 1.7%
CenturyTel, Inc. (a)		246,468		9,033,052
D&E Communications, Inc. (a)		37,078		279,939
HickoryTech Corp.		4,673		27,150

50 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Hungarian Telephone & Cable Corp. (a) *		490		9,751
Premiere Global Services, Inc. (a) *		94,195		1,324,382
Syniverse Holdings, Inc. *		49,530		822,693
USA Mobility, Inc. *		7,320		80,520

				11,577,487


Transportation 2.1%
Air T., Inc.		490		4,410
B & H Ocean Carriers Ltd. *		7,460		60,799
Con-way, Inc. (a)		12,090		533,290
Dynamex, Inc. (a) *		27,778		790,562
Genco Shipping & Trading Ltd. (a)		61,274		2,036,748
International Shipholding Corp. (a) *		8,179		179,120
Kansas City Southern (a) *		73,498		3,260,371
Pacer International, Inc. (a)		101,832		1,677,173
Park-Ohio Holdings Corp. *		7,860		140,615
Ryder System, Inc. (a)		36,120		2,239,440
Saia, Inc. *		18,499		245,667
TBS International Ltd., Class A (a) *		19,830		266,912
USA Truck, Inc. *		6,300		100,485
UTI Worldwide, Inc. (a)		12,248		208,461
YRC Worldwide, Inc. (a) *		173,098		2,070,252

				13,814,305


Utilities 6.8%
Alliant Energy Corp.		273,302		8,803,057
Artesian Resources Corp., Class A		10,340		175,056
Avista Corp. (a)		10,280		223,179
CH Energy Group, Inc. (a)		8,740		380,802
CMS Energy Corp. (a)		537,689		6,704,982
Delta Natural Gas Co., Inc.		7,105		181,959
El Paso Electric Co. (a) *		67,820		1,424,220
Energy West, Inc.		2,405		20,443
Florida Public Utilities Co.		1,258		16,228
IDACORP, Inc. (a)		3,580		104,142
Maine & Maritimes Corp. *		3,843		126,627
MDU Resources Group, Inc.		373,607		10,834,603
Northeast Utilities (a)		130,330		3,342,964
NorthWestern Corp. (a)		109,205		2,744,322
ONEOK, Inc. (a)		2,330		80,152
Pennichuck Corp. (a)		3,134		72,082
Pepco Holdings, Inc. (a)		136,912		3,136,654
Portland General Electric Co. (a)		10,529		249,116
RGC Resources, Inc.		3,037		85,917
Sierra Pacific Resources (a)		491,430		4,707,899
Southwest Water Co. (a)		1,190		15,173
The Empire District Electric Co. (a)		130		2,776
UIL Holdings Corp. (a)		9,180		315,149
Unisource Energy Corp.		49,190		1,435,856
Unitil Corp.		3,460		90,271
Westar Energy, Inc. (a)		565		13,018
WGL Holdings, Inc. (a)		12,753		413,835

				45,700,482

Total Common Stock (Cost $719,006,806)				660,362,327


End of Investments.





Collateral Invested for Securities on Loan 9.4% of net assets
State Street Navigator Security Lending Prime Portfolio		62,874,222		62,874,222

End of collateral invested for securities on loan.



At 09/30/08, the tax basis cost of the fund’s investments was $719,636,951 and the unrealized appreciation and depreciation were $43,773,594 and ($103,048,218), respectively, with a net unrealized depreciation of ($59,274,624).


*		Non-income producing security.
(a)		All or a portion of this security is on loan.

Laudus Rosenberg U.S. Discovery Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value including $61,255,551 of securities on loan (cost $719,006,806)		$660,362,327
Collateral invested for securities on loan		62,874,222
Receivables:
Investments sold		16,055,863
Fund shares sold		1,068,106
Dividends		685,221
Income from securities on loan		90,179
Prepaid expenses	+	48,390


Total assets		741,184,308


Liabilities
Collateral invested for securities on loan		62,874,222
Payables:
Investments bought		4,884,529
Investment adviser fees		49,548
Payable to custodian		3,337,153
Fund shares redeemed		2,396,569
Distribution and shareholder services fees		137,010
Accrued expenses	+	128,155


Total liabilities		73,807,186


Net Assets
Total assets		741,184,308
Total liabilities	−	73,807,186


Net assets		$667,377,122
Net Assets by Source
Capital received from investors		682,720,679
Net investment income not yet distributed		1,807,799
Net realized capital gains		41,493,123
Net unrealized capital losses		(58,644,479	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$146,453,050		9,763,821			$15.00
Select Shares	$520,924,072		34,117,411			$15.27

52 See financial notes

Laudus Rosenberg U.S. Discovery Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends		$4,587,302
Interest		62,951
Securities on loan	+	441,921


Total Investment Income		5,092,174


Net Realized Gains and Losses
Net realized gains on investments		50,795,740


Net Unrealized Gains and Losses
Net unrealized losses on investments		(94,095,704	)


Expenses
Investment adviser fees		3,489,342
Distribution and shareholder services fees (Investor Shares)		218,595
Sub-Accounting fees (Investor Shares)		77,160
Shareholder reports		59,812
Transfer agent fees		55,789
Accounting and administration fees		38,705
Custodian fees		33,620
Professional fees		30,741
Registration fees		14,099
Trustees’ fees		10,727
Interest expense		3,811
Other expenses	+	31,525


Total expenses		4,063,926
Custody credits	−	1,118


Net expenses		4,062,808


Increase (Decrease) in Net Assets from Operations
Total investment income		5,092,174
Net expenses	−	4,062,808


Net investment income		1,029,366
Net realized gains		50,795,740
Net unrealized losses	+	(94,095,704	)


Decrease in net assets from operations		($42,270,598	)

See financial notes 53

Laudus Rosenberg U.S. Discovery Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$1,029,366			$804,464
Net realized gains			50,795,740			37,108,290
Net unrealized losses	+		(94,095,704	)		(131,953,681	)


Decrease in net assets from operations			(42,270,598	)		(94,040,927	)


Distributions to Shareholders ¹
Distributions from net realized gains
Investor Shares			—			(15,189,189	)
Select Shares	+		—			(49,870,890	)


Total distributions from net realized losses			—			(65,060,079	)

Transactions in Fund Shares ¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			1,204,904			$20,471,418			2,337,924			$43,513,918
Select Shares	+		4,424,015			76,180,796			8,079,718			148,548,635


Total shares sold			5,628,919			$96,652,214			10,417,642			$192,062,553


Shares Reinvested
Investor Shares			-			$-			876,426			$14,899,234
Select Shares	+		-			-			2,802,405			48,369,515


Total shares reinvested			-			$-			3,678,831			$63,268,749


Shares Redeemed
Investor Shares			(2,065,216	)		($35,074,476	)		(3,672,199	)		($68,740,227	)
Select Shares	+		(5,185,582	)		(87,654,713	)		(12,267,874	)		(226,995,283	)


Total shares redeemed			(7,250,798	)		($122,729,189	)		(15,940,073	)		($295,735,510	)

Net transactions in fund shares			(1,621,879	)		($26,076,975	)		(1,843,600	)		($40,404,208	)


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			45,503,111			$735,724,695			47,346,711			$935,229,909
Total decrease	+		(1,621,879	)		(68,347,573	)		(1,843,600	)		(199,505,214	)


End of period			43,881,232			$667,377,122			45,503,111			$735,724,695


Net investment income not yet distributed						$1,807,799						$778,433


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

54 See financial notes

Laudus Rosenberg U.S. Small Capitalization Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		8.70			12.22			13.77			13.30			13.65			8.88

Income (loss) from investment operations:
Net investment income (loss)		0.00	^1,2		(0.03	)		(0.03	)		(0.04	)		(0.02	)¹		0.01
Net realized and unrealized gains (losses)		(0.36	)		(1.49	)		0.11			2.37			1.26			4.98

Total from investment operations		(0.36	)		(1.52	)		0.08			2.33			1.24			4.99
Less distributions:
Distributions from net investment income		—			—			—			—			—			(0.02	)
Distributions from net realized gains		—			(2.00	)		(1.63	)		(1.86	)		(1.59	)		(0.20	)

Total distributions		—			(2.00	)		(1.63	)		(1.86	)		(1.59	)		(0.22	)

Net asset value at end of period		8.34			8.70			12.22			13.77			13.30			13.65

Total return (%)		(4.14	)³		(13.57	)		0.75			18.98			9.00			56.40

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.28	⁴		1.30			1.30			1.39			1.43			1.47
Gross operating expenses		1.32	⁴		1.32			1.30			1.39			1.43			1.47
Net investment income (loss)		0.03	⁴		(0.22	)		(0.25	)		(0.33	)		(0.15	)		0.11
Portfolio turnover rate		61	³		68			76			69			68			76
Net assets, end of period ($ x 1,000)		166,557			183,980			269,185			311,822			297,927			272,481


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,5**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		9.03			12.57			14.07			13.50			13.82			8.98

Income (loss) from investment operations:
Net investment income (loss)		0.02	¹		0.03			0.02			0.00	²		0.03	¹		0.05
Net realized and unrealized gains (losses)		(0.38	)		(1.57	)		0.11			2.43			1.27			5.03

Total from investment operations		(0.36	)		(1.54	)		0.13			2.43			1.30			5.08
Less distributions:
Distributions from net investment income		—			—			—			—			(0.03	)		(0.04	)
Distributions from net realized gains		—			(2.00	)		(1.63	)		(1.86	)		(1.59	)		(0.20	)

Total distributions		—			(2.00	)		(1.63	)		(1.86	)		(1.62	)		(0.24	)

Net asset value at end of period		8.67			9.03			12.57			14.07			13.50			13.82

Total return (%)		(3.99	)³		(13.34	)		1.11			19.46			9.36			56.83

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.98	⁴		0.96			0.95			1.04			1.09			1.13
Gross operating expenses		0.98	⁴		0.96			0.95			1.04			1.09			1.13
Net investment income (loss)		0.32	⁴		0.13			0.10			0.02			0.20			0.45
Portfolio turnover rate		61	³		68			76			69			68			76
Net assets, end of period ($ x 1,000)		307,940			393,939			699,921			918,813			948,225			954,275

* Unaudited.

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

² Amount is less than $0.005.

³ Not annualized.

⁴ Annualized.

⁵ Effective July 31, 2008, the Institutional Shares became Select Shares.

See financial notes 55

Laudus Rosenberg U.S. Small Capitalization Fund

Financial Highlights continued


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Adviser Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		8.82			12.35			13.88			13.38			13.71			8.91

Income (loss) from investment operations:
Net investment income (loss)		0.01	¹		(0.01	)		(0.02	)		(0.02	)		0.00	^1,2		0.02
Net realized and unrealized gains (losses)		(0.38	)		(1.52	)		0.12			2.38			1.26			5.00

Total from investment operations		(0.37	)		(1.53	)		0.10			2.36			1.26			5.02
Less distributions:
Distributions from net investment income		—			—			—			—			—			(0.02	)
Distributions from net realized gains		—			(2.00	)		(1.63	)		(1.86	)		(1.59	)		(0.20	)

Total distributions		—			(2.00	)		(1.63	)		(1.86	)		(1.59	)		(0.22	)

Net asset value at end of period		8.45			8.82			12.35			13.88			13.38			13.71

Total return (%)		(4.20	)³		(13.50	)		0.90			19.09			9.12			56.53

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.20	⁴		1.20			1.20			1.32			1.31			1.40
Gross operating expenses		1.23	⁴		1.21			1.20			1.32			1.31			1.40
Net investment income (loss)		0.10	⁴		(0.12	)		(0.14	)		(0.24	)		(0.01	)		0.19
Portfolio turnover rate		61	³		68			76			69			68			76
Net assets, end of period ($ x 1,000)		25,690			34,799			48,923			49,952			41,104			44,059

* Unaudited.

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

² Amount is less than $0.005.

³ Not annualized.

⁴ Annualized.

56 See financial notes

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)


	99	.9%	Common Stock		520,804,475		499,884,412

	99	.9%	Total Investments		520,804,475		499,884,412
	9	.6%	Collateral Invested for Securities on Loan		47,773,839		47,773,839
	(9	.5)%	Other Assets and Liabilities, Net				(47,471,171	)

	100	.0%	Net Assets				500,187,080


	Number		Value
Security	of Shares		($)





Common Stock 99.9% of net assets


Automobiles & Components 0.2%
Hawk Corp., Class A *		17,140		345,028
Motorcar Parts of America, Inc. *		47,600		287,504
Standard Motor Products, Inc.		52,504		326,575

				959,107


Banks 5.2%
Alliance Financial Corp. (a)		620		14,260
Astoria Financial Corp.		42,349		877,895
BancFirst Corp. (a)		27,663		1,336,953
Banco Latinoamericano de Exportaciones, S.A., Class E (a)		136,565		1,969,267
Bank of Hawaii Corp. (a)		17,500		935,375
Berkshire Bancorp, Inc.		770		7,685
Britton & Koontz Capital Corp.		1,039		14,016
Carver Bancorp, Inc.		14,700		99,225
Central Virginia Bankshares, Inc.		670		5,494
Centrue Financial Corp.		8,242		115,058
CFS Bancorp, Inc. (a)		23,432		216,746
Codorus Valley Bancorp, Inc. (a)		1,800		22,896
Commerce Bancshares, Inc. (a)		19,900		923,360
Community Capital Corp. (a)		1,618		15,468
Community Financial Corp.		280		1,638
Cullen/Frost Bankers, Inc. (a)		16,200		972,000
Farmers Capital Bank Corp. (a)		1,755		47,420
Fidelity Bancorp, Inc.		60		788
First BancTrust Corp.		10,690		102,517
First Defiance Financial Corp.		24,036		264,636
First Federal Bancshares of Arkansas, Inc. (a)		16,226		160,637
First M&F Corp.		4,872		55,687
First Niagara Financial Group, Inc. (a)		114,780		1,807,785
First Place Financial Corp.		1,871		24,042
FirstMerit Corp. (a)		44,800		940,800
FNB Corp.		9,142		66,828
Gateway Financial Holdings, Inc. (a)		4,056		21,700
GS Financial Corp.		8,330		128,365
Guaranty Bancorp *		5,499		33,544
Guaranty Federal Bancshares, Inc.		6,872		78,341
Habersham Bancorp (a)		20,649		113,983
Hancock Holding Co. (a)		32,300		1,647,300
Hawthorn Bancshares, Inc.		1,498		36,506
HF Financial Corp.		24,416		347,806
Hingham Institution for Savings		2,660		71,820
HMN Financial, Inc. (a)		16,120		199,566
Hopfed Bancorp, Inc.		1,871		21,030
Horizon Bancorp		6,873		151,275
Independent Bank Corp.		1,946		12,046
International Bancshares Corp. (a)		22,100		596,700
LSB Financial Corp.		2,600		43,745
Monarch Community Bancorp, Inc.		5,808		53,724
MutualFirst Financial, Inc. (a)		5,483		53,514
National Penn Bancshares, Inc. (a)		101,350		1,479,710
New Hampshire Thrift Bancshares, Inc. (a)		1,646		14,814
Northeast Bancorp		82		945
Pacific Premier Bancorp, Inc. *		351		1,918
Park Bancorp, Inc. (a)		6,718		120,924
Parkvale Financial Corp.		28,120		442,890
Peoples Bancorp of North Carolina		558		6,294
Premier Financial Bancorp, Inc.		2,817		27,466
Prosperity Bancshares, Inc. (a)		45,031		1,530,604
Provident Financial Holdings, Inc. (a)		2,969		26,127
QCR Holdings, Inc.		761		10,121
Rurban Financial Corp.		7,696		69,264
Security National Financial Corp., Class A *		19,022		45,463
Simmons First National Corp., Class A (a)		2,510		89,356
Southern Missouri Bancorp, Inc.		8,300		108,315
Southwest Bancorp, Inc. (a)		76,787		1,356,826
StellarOne Corp. (a)		1,077		22,262
Sun Bancorp, Inc. (a) *		9,235		125,134
SVB Financial Group (a) *		32,635		1,890,219
Team Financial, Inc. (a)		10,017		22,037
TF Financial Corp.		10,476		240,948
The South Financial Group, Inc. (a)		3,145		23,053
UMB Financial Corp. (a)		11,500		603,980
United Bancshares, Inc.		10,998		116,799
United Community Financial Corp. (a)		34,360		171,800
United Western Bancorp, Inc.		27,970		349,625
Valley National Bancorp (a)		43,025		901,804
Wainwright Bank & Trust Co.		30,432		258,672
WSFS Financial Corp. (a)		25,661		1,539,660

See financial notes 57

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

WVS Financial Corp. (a)		911		14,940

				26,221,411


Capital Goods 8.1%
Aircastle Ltd. (a)		191,262		1,895,407
Allied Motion Technologies, Inc. *		43,156		224,843
Ampco-Pittsburgh Corp. (a)		1,886		48,847
Armstrong World Industries, Inc.		55,256		1,596,898
Beacon Roofing Supply, Inc. (a) *		5		78
BlueLinx Holdings, Inc. (a)		10,730		56,762
C&D Technologies, Inc. (a) *		12,728		72,295
Chicago Rivet & Machine Co.		4,920		97,170
Coleman Cable, Inc. (a) *		3,509		35,195
Columbus McKinnon Corp. *		300		7,071
Edac Technologies Corp. *		19,163		62,663
EnPro Industries, Inc. (a) *		95,745		3,557,884
Esterline Technologies Corp. (a) *		25,458		1,007,882
Federal Signal Corp. (a)		124,113		1,700,348
Griffon Corp. (a) *		125,550		1,132,461
Hardinge, Inc. (a)		67,089		852,030
Herley Industries, Inc. (a) *		9,535		163,049
Hurco Cos., Inc. (a) *		30,900		913,713
Insteel Industries, Inc. (a)		38,883		528,420
K-Tron International, Inc. (a) *		19,697		2,537,565
Kadant, Inc. (a) *		33,965		773,383
Lawson Products, Inc. (a)		7,982		220,702
Lydall, Inc. (a) *		32,972		317,520
MasTec, Inc. (a) *		177,500		2,358,975
Meadow Valley Corp. *		18,265		179,910
MFRI, Inc. (a) *		3,561		40,061
Mueller Industries, Inc.		50,923		1,171,738
NCI Building Systems, Inc. (a) *		14,740		467,995
NN, Inc. (a)		17,190		220,892
Patrick Industries, Inc. *		300		1,632
Perini Corp. (a) *		59,930		1,545,595
PowerSecure International, Inc. (a) *		14,937		90,518
Preformed Line Products Co.		5,274		307,685
Regal-Beloit Corp. (a)		230,460		9,799,159
Rush Enterprises, Inc., Class A (a) *		11,618		148,710
SL Industries, Inc. *		34,560		457,920
Standex International Corp. (a)		84,680		2,349,870
Tech/Ops Sevcon, Inc.		7,056		30,341
Tecumseh Products Co., Class A (a) *		28,437		712,063
Tecumseh Products Co., Class B *		7,652		171,634
The Eastern Co.		23,001		310,514
The L.S. Starrett Co., Class A		25,886		477,079
Todd Shipyards Corp.		400		5,400
Tredegar Corp.		9,888		175,908
TriMas Corp. (a) *		13,970		91,643
Twin Disc, Inc. (a)		72,155		992,853
United Capital Corp. (a) *		3,310		87,682
Willis Lease Finance Corp. (a) *		64,021		715,115

				40,713,078


Commercial & Professional Supplies 4.8%
A.T. Cross Co., Class A (a) *		15,261		102,707
ABM Industries, Inc.		480		10,483
Avalon Holdings Corp., Class A *		9,680		32,428
Casella Waste Systems, Inc., Class A (a) *		19,928		233,955
CDI Corp. (a)		112,090		2,502,970
Champion Industries, Inc. (a)		20,520		73,462
Comfort Systems USA, Inc. (a)		217,469		2,905,386
Deluxe Corp. (a)		122,449		1,762,041
Ecology & Environment, Inc., Class A		15,800		154,840
GP Strategies Corp. *		22,050		167,580
Hudson Highland Group, Inc. *		1,830		12,718
ICT Group, Inc. *		28,990		233,369
Industrial Services of America, Inc. (a)		940		9,635
Kelly Services, Inc., Class A (a)		196,775		3,748,564
LECG Corp. (a) *		88,482		714,050
MPS Group, Inc. (a) *		721,648		7,274,212
Nashua Corp. (a) *		20,530		164,856
National Technical Systems, Inc. (a)		10,376		54,370
RCM Technologies, Inc. *		86,052		149,730
Spherion Corp. (a) *		417,013		2,030,853
Sykes Enterprises, Inc. *		56,602		1,242,980
Tufco Technologies, Inc. *		15,856		86,098
VSE Corp. (a)		6,309		212,803
Westaff, Inc. *		27,131		9,767

				23,889,857


Consumer Durables & Apparel 3.4%
American Biltrite, Inc. *		18,550		90,802
American Greetings Corp., Class A (a)		27,185		415,659
Blyth, Inc.		38,179		432,950
CSS Industries, Inc. (a)		15,639		402,548
Culp, Inc. *		54,440		322,285
Decorator Industries, Inc. (a)		690		1,242
Flexsteel Industries, Inc.		21,910		226,549
LaCrosse Footwear, Inc.		1,158		18,528
Liz Claiborne, Inc. (a)		340,855		5,600,248
M.D.C. Holdings, Inc. (a)		12,102		442,812
Man Sang Holdings, Inc. (a) *		3,112		10,114
National Presto Industries, Inc. (a)		13,830		1,030,335
Orleans Homebuilders, Inc. (a)		1,600		6,480
P & F Industries, Inc., Class A *		10,036		22,982
Q.E.P. Co., Inc. *		14,297		76,203
R. G. Barry Corp. *		1,580		10,776
Rocky Brands, Inc. (a) *		20,400		67,932
Russ Berrie & Co., Inc. (a) *		3,110		23,854
The Warnaco Group, Inc. (a) *		152,763		6,918,636
Tupperware Brands Corp. (a)		24,730		683,290

				16,804,225


Consumer Services 3.2%
Ark Restaurants Corp.		14,652		235,018
Bob Evans Farms, Inc. (a)		152,716		4,167,620
CBRL Group, Inc. (a)		95,354		2,507,810
CEC Entertainment, Inc. *		54,857		1,821,252
Coinstar, Inc. (a) *		111,397		3,564,704
CPI Corp. (a)		22,863		245,777
Frisch’s Restaurants, Inc.		20,120		456,724
ILX Resorts, Inc. *		17,350		25,852
J. Alexander’s Corp.		29,420		164,752

58 See financial notes

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Jackson Hewitt Tax Service, Inc. (a)		26,455		405,820
Lodgian, Inc. (a) *		40,960		319,488
Red Lion Hotels Corp. *		68,041		545,689
Regis Corp. (a)		4,330		119,075
Silverleaf Resorts, Inc. (a) *		79,056		98,029
Speedway Motorsports, Inc. (a)		57,201		1,114,276
Star Buffet, Inc. (a)		1,974		7,797

				15,799,683


Diversified Financials 0.4%
California First National Bancorp		35,441		354,055
Cardtronics, Inc. (a) *		2,202		17,308
Interactive Brokers Group, Inc., Class A (a) *		64,500		1,429,965
MicroFinancial, Inc.		14,610		58,002
United PanAm Financial Corp. *		9,050		33,304

				1,892,634


Energy 8.7%
Adams Resources & Energy, Inc.		18,433		419,904
ATP Oil & Gas Corp. (a) *		49,011		872,886
Bill Barrett Corp. (a) *		32,691		1,049,708
Callon Petroleum Co. *		43,400		782,502
Clayton Williams Energy, Inc. (a) *		1,420		100,153
Contango Oil & Gas Co. (a) *		3,700		199,726
Dawson Geophysical Co. (a) *		52,798		2,465,139
Energy Partners Ltd. (a) *		39,900		345,933
Geokinetics, Inc. (a) *		11,800		224,200
Gulf Island Fabrication, Inc. (a)		26,052		898,012
GulfMark Offshore, Inc. (a) *		85,367		3,831,271
International Coal Group, Inc. (a) *		17,912		111,771
ION Geophysical Corp. (a) *		233,599		3,314,770
James River Coal Co. (a) *		13,313		292,753
McMoRan Exploration Co. (a) *		124,892		2,952,447
Parallel Petroleum Corp. (a) *		55,800		525,636
Penn Virginia Corp.		110,005		5,878,667
Petroleum Development Corp. (a) *		17,428		773,280
Pioneer Drilling Co. *		78,687		1,046,537
Rosetta Resources, Inc. (a) *		166,503		3,056,995
Ship Finance International Ltd. (a)		105,646		2,277,728
Stone Energy Corp. (a) *		69,173		2,928,093
Swift Energy Co. (a) *		103,503		4,004,531
Teekay Corp. (a)		135,814		3,582,773
Teekay Tankers Ltd., Class A (a)		20,850		352,990
TXCO Resources, Inc. (a) *		87,927		882,787
Venoco, Inc. (a) *		27,040		351,520

				43,522,712


Food & Staples Retailing 0.8%
Nash Finch Co. (a)		57,512		2,479,917
The Andersons, Inc. (a)		2,960		104,251
Village Super Market, Inc., Class A (a)		16,741		798,044
Weis Markets, Inc. (a)		17,519		630,859

				4,013,071


Food, Beverage & Tobacco 1.4%
Cal-Maine Foods, Inc. (a)		64,375		1,766,450
Chiquita Brands International, Inc. (a) *		146,640		2,318,378
Diamond Foods, Inc.		30,403		852,196
Omega Protein Corp. (a) *		59,008		693,934
Overhill Farms, Inc. *		17,480		90,022
Seneca Foods Corp., Class B *		2,175		44,544
Smart Balance, Inc. (a) *		1,987		13,035
Tasty Baking Co. (a)		33,007		136,319
The Boston Beer Co., Inc., Class A (a) *		21,842		1,037,277

				6,952,155


Health Care Equipment & Services 8.0%
Advanced Medical Optics, Inc. (a) *		60,720		1,079,602
Allied Healthcare Products, Inc. *		47,975		273,937
American Dental Partners, Inc. (a) *		22,097		258,535
American Medical Systems Holdings, Inc. (a) *		35,184		624,868
American Shared Hospital Services *		2,295		4,406
Anika Therapeutics, Inc. (a) *		1,329		9,609
Atrion Corp. (a)		9,980		1,028,239
Capital Senior Living Corp. (a) *		1,385		10,526
Cardiac Science Corp. (a) *		109,630		1,135,767
CONMED Corp. (a) *		95,728		3,063,296
Cynosure, Inc., Class A (a) *		1,345		24,129
Datascope Corp. (a)		102,063		5,269,513
Dynacq Healthcare, Inc. *		1,269		4,886
ev3, Inc. (a) *		20,013		200,930
Integra LifeSciences Holdings (a) *		72,296		3,183,193
Invacare Corp. (a)		123,662		2,985,201
Kewaunee Scientific Corp. (a)		16,981		191,036
Kindred Healthcare, Inc. (a) *		141,673		3,905,925
MedCath Corp. (a) *		56,525		1,012,928
MTS Medication Technologies *		2,190		11,038
National Dentex Corp. (a) *		10,575		64,507
National Healthcare Corp. (a)		15,265		719,287
Orthofix International N.V. (a) *		69,572		1,296,126
Osteotech, Inc. (a) *		16,491		70,252
Skilled Healthcare Group, Inc., Class A (a) *		54,455		865,290
SonoSite, Inc. (a) *		40,159		1,260,993
Span-America Medical Systems, Inc.		20,260		241,094
SRI/Surgical Express, Inc. *		3,202		10,406
SunLink Health Systems, Inc. (a) *		2,240		5,914
Symmetry Medical, Inc. *		135,990		2,523,974
Theragenics Corp. (a) *		56,575		176,514
Thoratec Corp. *		3,870		101,587
Universal American Financial Corp. (a) *		95,192		1,160,390
Wright Medical Group, Inc. (a) *		117,813		3,586,228
Zoll Medical Corp. (a) *		117,088		3,831,119

				40,191,245

See financial notes 59

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Household & Personal Products 1.2%
Cascade International, Inc.
(a)(b)(c)(d) *		37,660		—
Elizabeth Arden, Inc. (a) *		98,409		1,931,769
Inter Parfums, Inc. (a)		60,008		813,708
Natural Alternative International, Inc. (a) *		34,822		245,495
Nu Skin Enterprises, Inc., Class A (a)		60,380		979,364
Nutraceutical International Corp. (a) *		22,113		244,349
Oil-Dri Corp. of America		26,649		450,901
Physicians Formula Holdings, Inc. *		54,012		321,371
Revlon, Inc. *		36,454		541,342
Schiff Nutrition International, Inc. *		73,780		503,917

				6,032,216


Insurance 3.0%
American Physicians Service Group, Inc.		24,102		510,239
American Safety Insurance Holdings Ltd. (a) *		37,041		559,690
CastlePoint Holdings Ltd.		19,370		215,588
Kansas City Life Insurance Co.		29,282		1,346,972
National Financial Partners Corp. (a)		37,777		566,655
National Western Life Insurance Co., Class A (a)		18,862		4,565,925
PMA Capital Corp., Class A (a) *		12,043		106,219
Presidential Life Corp. (a)		70,275		1,109,642
Reinsurance Group of America, Inc., Class A (a)		91,472		4,939,488
The National Security Group, Inc.		1,000		14,380
Unico American Corp. *		41,565		340,833
Universal Insurance Holdings, Inc. (a)		156,050		543,054

				14,818,685


Materials 6.7%
A. Schulman, Inc.		229,173		4,533,042
American Pacific Corp. (a) *		14,245		186,040
Arch Chemicals, Inc. (a)		72,304		2,552,331
Bway Holding Co. (a) *		1,990		23,343
Chemtura Corp.		113,051		515,513
Continental Materials Corp. *		5,949		121,211
Ferro Corp. (a)		169,454		3,406,025
Friedman Industries, Inc.		23,084		153,509
H.B. Fuller Co. (a)		62,830		1,311,262
Hercules, Inc. (a)		88,929		1,759,905
Innophos Holdings, Inc. (a)		89,898		2,191,713
Innospec, Inc. (a)		60,986		735,491
Kronos Worldwide, Inc. (a)		630		8,348
Minerals Technologies, Inc. (a)		80,264		4,764,471
Olin Corp. (a)		93,480		1,813,512
Olympic Steel, Inc. (a)		1,080		31,849
Penford Corp. (a)		8,064		142,652
PolyOne Corp. (a) *		270,228		1,742,971
Schweitzer-Mauduit International, Inc. (a)		63,020		1,196,750
Stepan Co. (a)		37,660		2,055,106
The Scotts Miracle-Gro Co., Class A (a)		2,166		51,204
Universal Stainless & Alloy Products, Inc. (a) *		7,002		178,901
Worthington Industries, Inc. (a)		256,793		3,836,487

				33,311,636


Media 0.1%
Cinemark Holdings, Inc. (a)		470		6,392
Fisher Communications, Inc.		3,809		150,074
LodgeNet Interactive Corp. (a) *		35,993		73,066
Mediacom Communications Corp., Class A (a) *		8,554		50,640
RCN Corp. (a) *		20,244		248,191

				528,363


Pharmaceuticals & Biotechnology 2.3%
Affymetrix, Inc. (a) *		310,620		2,404,199
Albany Molecular Research, Inc. (a) *		27,196		491,976
Alexion Pharmaceuticals, Inc. (a) *		114,104		4,484,287
Bioanalytical Systems, Inc. *		580		2,796
Cambrex Corp. (a) *		2,670		16,420
Celera Corp. (a) *		390		6,025
CV Therapeutics, Inc. (a) *		58,632		633,225
Harvard Bioscience, Inc. (a) *		111,880		520,242
Medicis Pharmaceutical Corp., Class A (a)		4,768		71,091
Neurocrine Biosciences, Inc. (a) *		104,200		488,698
Noven Pharmaceuticals, Inc. (a) *		7,040		82,227
PAREXEL International Corp. *		1		29
Pharmanet Development Group, Inc. (a) *		79,390		573,196
Varian, Inc. *		46,949		2,014,112

				11,788,523


Real Estate 3.4%
AmREIT, Inc., Class A (a)		4,511		30,449
Ashford Hospitality Trust (a)		91,643		371,154
BioMed Realty Trust, Inc.		103,410		2,735,195
CBL & Associates Properties, Inc. (a)		139,151		2,794,152
Cedar Shopping Centers, Inc. (a)		145,019		1,917,151
DiamondRock Hospitality Co. (a)		216,665		1,971,652
Extra Space Storage, Inc. (a)		540		8,294
Hersha Hospitality Trust (a)		200,313		1,490,329
J.W. Mays, Inc. *		15,550		265,905
Medical Properties Trust, Inc. (a)		248,860		2,824,561
MHI Hospitality Corp.		510		2,672
Mission West Properties, Inc. (a)		83,359		811,917
Monmouth Real Estate Investment Corp., Class A (a)		8,722		67,944
One Liberty Properties, Inc.		38,130		673,757
Ramco-Gershenson Properties Trust (a)		31,507		706,387
Reis, Inc. *		943		5,611
Sunstone Hotel Investors, Inc.		1,510		20,385

60 See financial notes

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Supertel Hospitality, Inc. (a)		29,149		118,054

				16,815,569


Retailing 5.2%
1-800-FLOWERS.COM, Inc., Class A (a) *		82,938		499,287
A.C. Moore Arts & Crafts, Inc. (a) *		14,336		89,887
AMCON Distributing Co.		2,400		58,800
AnnTaylor Stores Corp. *		21,000		433,440
AutoNation, Inc. (a) *		258,800		2,908,912
Books-A-Million, Inc.		11,606		58,030
Borders Group, Inc. (a)		265,200		1,739,712
Cabela’s, Inc. *		480		5,798
Christopher & Banks Corp. (a)		136,900		1,050,023
Conn’s, Inc. (a) *		13,850		259,134
Educational Development Corp. (a)		2,503		12,252
Franklin Covey Co. *		101,431		734,361
Fred’s, Inc., Class A (a)		43,570		619,565
Hastings Entertainment, Inc. *		74,334		430,394
Haverty Furniture Cos., Inc. (a)		16,299		186,461
Jo-Ann Stores, Inc. (a) *		96,779		2,030,423
Jos. A. Bank Clothiers, Inc. (a) *		46,317		1,556,251
Monro Muffler Brake, Inc. (a)		25,823		595,478
Netflix, Inc. (a) *		86,176		2,661,115
New York & Co, Inc. *		29,690		283,243
REX Stores Corp. (a) *		51,869		599,087
Sport Chalet, Inc., Class B *		1,312		4,257
Stage Stores, Inc. (a)		159,265		2,175,560
Stein Mart, Inc. (a)		10,406		40,688
Systemax, Inc. (a)		43,916		617,459
The Children’s Place Retail Stores, Inc. *		96,900		3,231,615
The Coast Distribution System, Inc.		6,857		19,885
The Finish Line, Inc., Class A		3,980		39,760
The Pep Boys - Manny, Moe & Jack (a)		160,796		993,719
Zale Corp. *		89,106		2,227,650

				26,162,246


Semiconductors & Semiconductor Equipment 4.7%
Actel Corp. (a) *		107,282		1,338,879
Aetrium, Inc. (a) *		1,010		3,020
CEVA, Inc. (a) *		95,354		791,438
Cirrus Logic, Inc. (a) *		159,564		869,624
FEI Co. (a) *		131,912		3,140,825
Integrated Device Technology, Inc. (a) *		10,600		82,468
Integrated Silicon Solution, Inc. *		7		16
IXYS Corp. (a)		14,968		136,059
Pericom Semiconductor Corp. *		95,987		1,007,864
PLX Technology, Inc. (a) *		620		3,175
Semitool, Inc. (a) *		21,318		174,381
Skyworks Solutions, Inc. (a) *		886,572		7,411,742
Standard Microsystems Corp. (a) *		126,135		3,150,852
TriQuint Semiconductor, Inc. (a) *		483,327		2,315,136
Ultratech, Inc. (a) *		91,720		1,109,812
Veeco Instruments, Inc. (a) *		143,500		2,125,235

				23,660,526


Software & Services 15.3%
Adept Technology, Inc. *		520		4,545
Astea International, Inc. (a) *		15,683		61,791
Bottomline Technologies, Inc. (a) *		6,977		72,561
CIBER, Inc. (a) *		272,306		1,903,419
Computer Task Group, Inc. (a) *		68,846		447,499
CSG Systems International, Inc. (a) *		3,993		69,997
CSP, Inc. (a) *		19,112		100,911
Dynamics Research Corp. *		2,080		15,974
EarthLink, Inc. (a) *		484,492		4,118,182
Edgewater Technology, Inc. (a) *		71,500		347,490
Fair Isaac Corp. (a)		18,590		428,499
Gevity HR, Inc. (a)		54,723		398,383
GSI Commerce, Inc. (a) *		91,100		1,410,228
IAC/InterActiveCorp *		178,379		3,085,957
Interwoven, Inc. *		177,108		2,500,765
INX, Inc. *		1,310		8,895
JDA Software Group, Inc. *		136,075		2,069,701
Keynote Systems, Inc. (a) *		290		3,842
Lawson Software, Inc. *		553,543		3,874,801
Magma Design Automation, Inc. (a) *		14,600		58,692
MAXIMUS, Inc.		79,096		2,913,897
Mentor Graphics Corp. (a) *		400,600		4,546,810
ModusLink Global Solutions, Inc. (a) *		10,861		104,374
Ness Technologies, Inc. (a) *		160,026		1,835,498
NetScout Systems, Inc. *		95,954		1,020,951
OPNET Technologies, Inc. (a) *		9,114		111,009
Parametric Technology Corp. (a) *		53,869		991,190
Perot Systems Corp., Class A (a) *		595,985		10,340,340
Pervasive Software, Inc. (a) *		19,310		79,171
QAD, Inc. (a)		48,331		334,450
Radiant Systems, Inc. (a) *		27,246		236,768
S1 Corp. (a) *		82,505		504,931
Solera Holdings, Inc. (a) *		208,550		5,989,556
Sonic Solutions (a) *		11,457		50,411
SPSS, Inc. (a) *		123,837		3,635,854
SumTotal Systems, Inc. *		81,733		334,288
Sybase, Inc. (a) *		96,614		2,958,321
Take-Two Interactive Software, Inc. (a) *		199,852		3,277,573
TechTeam Global, Inc. *		53,045		393,594
TIBCO Software, Inc. *		8,870		64,928
TNS, Inc. (a) *		117,142		2,269,041
TSR, Inc.		25,923		61,956
Unisys Corp. (a) *		294,458		809,759
United Online, Inc. (a)		496,585		4,672,865
Vignette Corp. (a) *		71,295		765,708
Wayside Technology Group, Inc. (a)		840		6,317
Websense, Inc. (a) *		193,200		4,318,020
Website Pros, Inc. (a) *		11,506		62,132
Wind River Systems, Inc. (a) *		290,633		2,906,330

				76,578,174

See financial notes 61

Laudus Rosenberg U.S. Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Technology Hardware & Equipment 6.8%
Astro-Med, Inc.		25,734		241,642
BigBand Networks (a) *		21,502		79,342
Black Box Corp. (a)		132,280		4,567,628
Bonso Electronic International, Inc. *		5,555		6,749
Coherent, Inc. (a) *		109,851		3,905,203
Communications Systems, Inc. (a)		57,540		612,226
CTS Corp. (a)		151,166		1,931,902
Data I/O Corp. *		5,966		24,998
Digi International, Inc. *		42,898		437,560
Electro Scientific Industries, Inc. (a) *		31,475		447,575
EMS Technologies, Inc. (a) *		27,210		607,055
Emulex Corp. (a) *		391,190		4,173,997
Gerber Scientific, Inc. (a) *		44,355		405,405
Imation Corp. (a)		144,454		3,263,216
Insight Enterprises, Inc. (a) *		246,729		3,308,636
IntriCon Corp. *		17,880		70,447
Keithley Instruments, Inc. (a)		7,705		64,491
LeCroy Corp. (a) *		10,796		83,021
Loral Space & Communications, Inc. (a) *		220		3,249
Measurement Specialties, Inc. (a) *		64,900		1,131,856
Mercury Computer Systems, Inc. (a) *		15,510		138,039
Mesa Laboratories, Inc.		1,640		34,850
MOCON, Inc.		2,137		22,332
MTS Systems Corp. (a)		33,392		1,405,803
O.I. Corp.		15,900		178,080
Oplink Communications, Inc. (a) *		85,630		1,033,554
OSI Systems, Inc. (a) *		68,578		1,612,269
Perceptron, Inc. *		30,655		167,376
Schmitt Industries, Inc. *		8,703		55,046
Tekelec (a) *		165,790		2,319,402
TESSCO Technologies, Inc. *		12,042		154,138
Tollgrade Communications, Inc. *		46,880		196,896
Vicon Industries, Inc. (a) *		33,740		173,761
Zygo Corp. (a) *		83,273		1,047,574

				33,905,318


Telecommunication Services 0.3%
D&E Communications, Inc. (a)		34,075		257,266
HickoryTech Corp.		2,830		16,442
Hungarian Telephone & Cable Corp. (a) *		6,900		137,310
Premiere Global Services, Inc. (a) *		68,048		956,755
SureWest Communications		14,740		150,348
Syniverse Holdings, Inc. (a) *		2,280		37,871
USA Mobility, Inc. (a) *		18,144		199,584

				1,755,576


Transportation 2.0%
B & H Ocean Carriers Ltd. *		16,930		137,979
Dynamex, Inc. (a) *		53,552		1,524,090
Genco Shipping & Trading Ltd. (a)		93,530		3,108,937
International Shipholding Corp. (a) *		14,642		320,660
Pacer International, Inc. (a)		159,500		2,626,965
Park-Ohio Holdings Corp. (a) *		4,496		80,433
Saia, Inc. (a) *		9,725		129,148
TBS International Ltd., Class A (a) *		45,300		609,738
USA Truck, Inc. *		5,490		87,566
YRC Worldwide, Inc. (a) *		107,859		1,289,994

				9,915,510


Utilities 4.7%
Artesian Resources Corp., Class A		14,975		253,527
Avista Corp. (a)		13,296		288,656
CH Energy Group, Inc. (a)		101,092		4,404,578
Delta Natural Gas Co., Inc.		7,716		197,607
El Paso Electric Co. *		194,846		4,091,766
Energy West, Inc.		6,389		54,307
Florida Public Utilities Co.		986		12,719
IDACORP, Inc. (a)		17,651		513,468
Maine & Maritimes Corp. *		6,777		223,302
New Jersey Resources Corp. (a)		74,106		2,659,664
NorthWestern Corp. (a)		168,224		4,227,469
Pennichuck Corp.		2,440		56,120
Portland General Electric Co. (a)		22,221		525,749
RGC Resources, Inc.		3,210		90,811
Southwest Water Co. (a)		2,122		27,056
UIL Holdings Corp. (a)		39,234		1,346,903
Unisource Energy Corp.		160,033		4,671,363
Unitil Corp. (a)		300		7,827

				23,652,892

Total Common Stock (Cost $520,804,475)				499,884,412


End of Investments.





Collateral Invested for Securities on Loan 9.6% of net assets
State Street Navigator Security Lending Prime Portfolio		47,773,839		47,773,839

End of collateral invested for securities on loan.



At 09/30/2008, the tax basis cost of the fund’s investments was $521,064,608 and the unrealized appreciation and depreciation were $41,264,751 and ($62,444,947), respectively, with a net unrealized depreciation of ($21,180,196).


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Fair-valued by management.
(c)		Bankrupt security/delisted.
(d)		Illiquid security. At the period end, the value of these amounted to $0 or 0.0% of net assets.

Laudus Rosenberg U.S. Small Capitalization Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value including securities on loan of $46,508,094 (cost $520,804,475)		$499,884,412
Collateral invested for securities on loan		47,773,839
Receivables:
Investments sold		26,056,486
Dividends		564,913
Fund shares sold		261,964
Income from securities on loan		105,444
Prepaid expenses	+	42,437


Total assets		574,689,495


Liabilities
Collateral invested for securities on loan		47,773,839
Payables:
Investments bought		17,100,390
Investment adviser fees		37,532
Fund shares redeemed		6,227,028
Payable to custodian		2,972,882
Distribution and shareholder services fees		188,666
Accrued expenses	+	202,078


Total liabilities		74,502,415


Net Assets
Total assets		574,689,495
Total liabilities	−	74,502,415


Net assets		$500,187,080
Net Assets by Source
Capital received from investors		468,552,771
Net investment income not yet distributed		696,031
Net realized capital gains		51,858,341
Net unrealized capital losses		(20,920,063	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$166,557,317		19,971,468			$8.34
Select Shares	$307,939,627		35,512,610			$8.67
Adviser Shares	$25,690,136		3,038,763			$8.45

See financial notes 63

Laudus Rosenberg U.S. Small Capitalization Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends		$3,348,171
Interest		55,932
Securities on loan	+	469,918


Total Investment Income		3,874,021


Net Realized Gains and Losses
Net realized gains on investments		55,066,915


Net Unrealized Gains and Losses
Net unrealized losses on investments		(73,622,014	)


Expenses
Investment adviser fees		2,676,742
Distribution and shareholder services fees
Investor Shares		234,701
Adviser Shares		44,024
Sub-Accounting fees (Investor Shares)		76,136
Transfer agent fees		64,695
Shareholder reports		39,707
Accounting and administration fees		33,754
Professional fees		28,908
Custodian fees		19,705
Interest expense		13,944
Registration fees		12,970
Trustees’ fees		8,665
Other expenses	+	26,384


Total expenses		3,280,335
Expense reduction by adviser	−	33,447
Custody credits	−	3,723


Net expenses		3,243,165


Increase (Decrease) in Net Assets from Operations
Total investment income		3,874,021
Net expenses	−	3,243,165


Net investment income		630,856
Net realized gains		55,066,915
Net unrealized losses	+	(73,622,014	)


Decrease in net assets from operations		($17,924,243	)

64 See financial notes

Laudus Rosenberg U.S. Small Capitalization Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$630,856			$182,344
Net realized gains			55,066,915			82,186,761
Net unrealized losses	+		(73,622,014	)		(190,015,225	)


Decrease in net assets from operations			(17,924,243	)		(107,646,120	)


Distributions to Shareholders ¹
Distributions from net investment income
Investor Shares			-			-
Select Shares			-			(52,220	)
Adviser Shares	+		-			-


Total distributions from net investment income			-			(52,220	)


Distributions from net realized gains
Investor Shares			—			(37,650,467	)
Select Shares			—			(86,858,222	)
Adviser Shares	+		—			(6,733,104	)


Total distributions from net realized gains			—			(131,241,794	)

Total distributions			$-			($131,294,014	)

Transactions in Fund Shares ¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			1,540,459			$14,033,412			3,180,317			$34,760,049
Select Shares			1,913,310			18,086,262			6,132,943			71,884,130
Adviser Shares	+		220,274			2,033,520			923,717			9,727,022


Total shares sold			3,674,043			$34,153,194			10,236,977			$116,371,201


Shares Reinvested
Investor Shares			-			$-			3,322,282			$30,996,893
Select Shares			-			-			8,219,330			79,563,111
Adviser Shares	+		-			-			531,532			5,022,981


Total shares reinvested			-			$-			12,073,144			$115,582,985


Shares Redeemed
Investor Shares			(2,714,351	)		($24,593,061	)		(7,377,747	)		($82,542,754	)
Select Shares			(10,013,000	)		(94,220,512	)		(26,429,861	)		(299,178,447	)
Adviser Shares	+		(1,128,824	)		(9,946,924	)		(1,470,741	)		(16,603,866	)


Total shares redeemed			(13,856,175	)		($128,760,497	)		(35,278,349	)		($398,325,067	)

Net transactions in fund shares			(10,182,132	)		($94,607,303	)		(12,968,228	)		($166,370,881	)


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			68,704,973			$612,718,626			81,673,201			$1,018,029,641
Total decrease	+		(10,182,132	)		(112,531,546	)		(12,968,228	)		(405,311,015	)


End of period			58,522,841			$500,187,080			68,704,973			$612,718,626


Net investment income not yet distributed						$696,031						$65,175


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

See financial notes 65

Laudus Rosenberg Long/Short Equity Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		10.30			10.63			10.55			10.41			9.81			10.43

Income (loss) from investment operations:
Net investment income (loss)		(0.03	)¹		0.62			0.26			0.12	¹		(0.06	)¹		(0.09	)¹
Net realized and unrealized gains (losses)		(0.11	)		(0.70	)		0.03			0.10			0.66			(0.53	)

Total from investment operations		(0.14	)		(0.08	)		0.29			0.22			0.60			(0.62	)
Less distributions:
Distributions from net investment income		—			(0.25	)		(0.21	)		(0.08	)		—			—
Distributions from net realized gains		—			—			—			—			—			—

Total distributions		—			(0.25	)		(0.21	)		(0.08	)		—			—

Net asset value at end of period		10.16			10.30			10.63			10.55			10.41			9.81

Total return (%)		(1.36	)²		(0.82	)		2.81			2.08			6.12			(5.94	)

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses (including dividend expense on short sales)		3.74	³		3.29			3.28			3.22			3.30			3.06
Net operating expenses (excluding dividend expense on short sales)		1.95	³		1.97			1.99			2.06			2.06			2.05
Gross operating expenses		3.78	³		3.30			3.28			3.22			3.37			3.18
Net investment income (loss)		(0.57	)³		2.11			2.41			1.17			(0.55	)		(0.90	)
Portfolio turnover rate		288	²		129			140			122			111			76
Net assets, end of period ($ x 1,000)		10,726			14,714			64,400			63,036			34,930			34,081


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,4**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		10.37			10.75			10.66			10.51			9.87			10.48

Income (loss) from investment operations:
Net investment income (loss)		(0.03	)		0.26			0.24			0.16	¹		(0.03	)¹		(0.05	)¹
Net realized and unrealized gains (losses)		(0.09	)		(0.31	)		0.09			0.09			0.67			(0.56	)

Total from investment operations		(0.12	)		(0.05	)		0.33			0.25			0.64			(0.61	)
Less distributions:
Distributions from net investment income		—			(0.33	)		(0.24	)		(0.10	)		—			—
Distributions from net realized gains		—			—			—			—			—			—

Total distributions		—			(0.33	)		(0.24	)		(0.10	)		—			—

Net asset value at end of period		10.25			10.37			10.75			10.66			10.51			9.87

Total return (%)		(1.16	)²		(0.51	)		3.19			2.41			6.48			(5.82	)

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses (including dividend expense on short sales)		3.47	³		3.09			2.99			2.89			2.98			2.77
Net operating expenses (excluding dividend expense on short sales)		1.68	³		1.63			1.66			1.74			1.74			1.75
Gross operating expenses		3.47	³		3.09			2.99			2.89			3.04			2.88
Net investment income (loss)		(0.30	)³		2.14			2.70			1.51			(0.28	)		(0.46	)
Portfolio turnover rate		288	²		129			140			122			111			76
Net assets, end of period ($ x 1,000)		122,704			182,817			260,596			189,254			102,974			95,541

* Unaudited

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

² Not annualized.

³ Annualized.

⁴ Effective July 31, 2008, the Institutional Shares became Select Shares.

66 See financial notes

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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


				Cost			Value
Holdings by Category				($)			($)


	96	.0%	Common Stock		139,556,975			128,043,009
	1	.3%	Foreign Common Stock		1,772,858			1,680,162
	6	.1%	Short-Term Investment		8,175,472			8,175,472

	103	.4%	Total Investments		149,505,305			137,898,643
	(80	.7)%	Short Sales		(127,083,406	)		(107,615,279	)
	77	.7%	Deposits with broker and custodian bank for securities sold short		103,677,044			103,677,044
	(0	.4)%	Other Assets and Liabilities, Net					(530,737	)

	100	.0%	Net Assets					133,429,671


	Number		Value
Security	of Shares		($)





Common Stock (a) 96.0% of net assets


Automobiles & Components 0.5%
Johnson Controls, Inc.		23,400		709,722


Banks 4.4%
First Niles Financial, Inc.		99		925
Regions Financial Corp.		60,530		581,088
U.S. Bancorp		64,687		2,330,026
Wells Fargo & Co.		79,300		2,976,129

				5,888,168


Capital Goods 6.8%
Aecom Technology Corp. *		9,736		237,948
Armstrong World Industries, Inc.		2,900		83,810
Columbus McKinnon Corp. *		332		7,825
Crane Co.		20,118		597,706
Cummins, Inc.		21,600		944,352
Dover Corp.		1,200		48,660
EnPro Industries, Inc. *		14,900		553,684
Esterline Technologies Corp. *		4,050		160,340
First Solar, Inc. *		4,427		836,305
General Dynamics Corp.		5,200		382,824
Honeywell International, Inc.		190		7,895
Lockheed Martin Corp.		190		20,837
MasTec, Inc. *		27,725		368,465
Navistar International Corp. *		7,290		394,972
Northrop Grumman Corp.		200		12,108
Regal-Beloit Corp.		9,300		395,436
Rockwell Automation, Inc.		8,237		307,570
Seaboard Corp.		146		183,522
SPX Corp.		12,930		995,610
SunPower Corp., Class B *		4,687		323,637
Terex Corp. *		12,100		369,292
The Manitowoc Co., Inc.		15,100		234,805
The Shaw Group, Inc. *		9,000		276,570
Thomas & Betts Corp. *		6,800		265,676
W.W. Grainger, Inc.		12,154		1,057,033

				9,066,882


Commercial & Professional Supplies 0.8%
Allied Waste Industries, Inc. *		2,570		28,553
Deluxe Corp.		7,600		109,364
Kelly Services, Inc., Class A		19,274		367,170
R.R. Donnelley & Sons Co.		23,850		585,040

				1,090,127


Consumer Durables & Apparel 0.8%
Callaway Golf Co.		9,100		128,037
JAKKS Pacific, Inc. *		3,900		97,149
Jarden Corp. *		2,700		63,315
Liz Claiborne, Inc.		13,590		223,284
NIKE, Inc., Class B		900		60,210
Polaris Industries, Inc.		4,100		186,509
Quiksilver, Inc. *		600		3,444
The Warnaco Group, Inc. *		5,300		240,037

				1,001,985


Consumer Services 2.1%
Ameristar Casinos, Inc.		3,800		53,922
Bob Evans Farms, Inc.		4,300		117,347
CBRL Group, Inc.		6,720		176,736
CEC Entertainment, Inc. *		2,000		66,400
Coinstar, Inc. *		4,100		131,200
H&R Block, Inc.		30,300		689,325
Speedway Motorsports, Inc.		2,300		44,804
Yum! Brands, Inc.		46,900		1,529,409

				2,809,143


Diversified Financials 8.8%
Bank of America Corp.		125,508		4,392,780
BlackRock, Inc.		6,500		1,264,250
CIT Group, Inc.		35,900		249,864
JPMorgan Chase & Co.		89,808		4,194,034
Northern Trust Corp.		1,930		139,346
State Street Corp.		25,650		1,458,972

				11,699,246


Energy 6.6%
ATP Oil & Gas Corp. *		3,800		67,678
Bill Barrett Corp. *		1,970		63,257
Chevron Corp.		2,920		240,842
Cimarex Energy Co.		9,300		454,863
ConocoPhillips		37,700		2,761,525

See financial notes 67

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Contango Oil & Gas Co. *		800		43,184
Diamond Offshore Drilling, Inc.		720		74,203
Forest Oil Corp. *		9,100		451,360
Foundation Coal Holdings, Inc.		5,700		202,806
GulfMark Offshore, Inc. *		3,000		134,640
Helix Energy Solutions Group, Inc. *		6,340		153,935
Helmerich & Payne, Inc.		8,015		346,168
Hornbeck Offshore Services, Inc. *		3,200		123,584
International Coal Group, Inc. *		17,300		107,952
ION Geophysical Corp. *		11,300		160,347
McMoRan Exploration Co. *		6,800		160,752
Murphy Oil Corp.		4,300		275,802
Plains Exploration & Production Co. *		3,400		119,544
Rosetta Resources, Inc. *		7,200		132,192
Rowan Cos., Inc.		4,000		122,200
Stone Energy Corp. *		3,700		156,621
Swift Energy Co. *		4,000		154,760
Teekay Corp.		5,500		145,090
Tidewater, Inc.		30,700		1,699,552
Unit Corp. *		5,700		283,974
W&T Offshore, Inc.		3,900		106,431

				8,743,262


Food & Staples Retailing 0.1%
The Andersons, Inc.		1,720		60,578


Food, Beverage & Tobacco 3.6%
Bunge Ltd.		10,304		651,007
Cal-Maine Foods, Inc.		10,106		277,309
Chiquita Brands International, Inc. *		6,500		102,765
Constellation Brands, Inc., Class A *		42,800		918,488
Dean Foods Co. *		15,100		352,736
H.J. Heinz Co.		9,000		449,730
Kellogg Co.		24,600		1,380,060
Pilgrim’s Pride Corp.		2,100		5,229
The Boston Beer Co., Inc., Class A *		460		21,845
The Pepsi Bottling Group, Inc.		14,000		408,380
Tyson Foods, Inc., Class A		21,380		255,277

				4,822,826


Health Care Equipment & Services 5.0%
Advanced Medical Optics, Inc. *		7,100		126,238
American Medical Systems Holdings, Inc. *		6,500		115,440
AMERIGROUP Corp. *		4,000		100,960
Baxter International, Inc.		25,580		1,678,815
Conceptus, Inc. *		4,400		72,952
CONMED Corp. *		6,267		200,544
ev3, Inc. *		10,700		107,428
Express Scripts, Inc. *		4,500		332,190
Health Net, Inc. *		11,260		265,736
Hologic, Inc. *		29,000		560,570
Integra LifeSciences Holdings *		2,600		114,478
Intuitive Surgical, Inc. *		3,550		855,479
Inverness Medical Innovations, Inc. *		9,770		293,100
Kindred Healthcare, Inc. *		21,000		578,970
RTI Biologics, Inc. *		7,800		72,930
SonoSite, Inc. *		2,600		81,640
Symmetry Medical, Inc. *		5,200		96,512
Teleflex, Inc.		5,380		341,576
The Cooper Cos., Inc.		5,900		205,084
Thoratec Corp. *		6,900		181,125
Universal American Financial Corp. *		4,340		52,905
Volcano Corp. *		6,600		114,114
Wright Medical Group, Inc. *		5,100		155,244

				6,704,030


Household & Personal Products 1.4%
Avon Products, Inc.		10,700		444,799
Colgate-Palmolive Co.		9,600		723,360
Elizabeth Arden, Inc. *		4,100		80,483
Inter Parfums, Inc.		647		8,773
The Estee Lauder Cos., Inc., Class A		12,200		608,902

				1,866,317


Insurance 4.2%
Aon Corp.		29,389		1,321,329
CNA Financial Corp.		8,266		216,900
Everest Re Group Ltd.		7,300		631,669
Prudential Financial, Inc.		16,700		1,202,400
Reinsurance Group of America, Inc., Class A		3,090		166,860
The Hartford Financial Services Group, Inc.		27,089		1,110,378
Unum Group		39,800		998,980

				5,648,516


Materials 7.2%
A. Schulman, Inc.		286		5,657
Arch Chemicals, Inc.		3,700		130,610
Ashland, Inc.		7,169		209,622
Cabot Corp.		8,400		266,952
CF Industries Holdings, Inc.		8,050		736,253
Chemtura Corp.		30,900		140,904
Cleveland-Cliffs, Inc.		70		3,706
Cytec Industries, Inc.		5,960		231,904
Domtar Corp. *		57,500		264,500
Eastman Chemical Co.		8,900		490,034
Ferro Corp.		6,600		132,660
FMC Corp.		30,884		1,587,129
Headwaters, Inc. *		6,100		81,435
Hercules, Inc.		260		5,145
Innophos Holdings, Inc.		3,300		80,454
International Flavors & Fragrances, Inc.		900		35,514
International Paper Co.		46,700		1,222,606
Minerals Technologies, Inc.		2,700		160,272
Monsanto Co.		11,700		1,158,066
Nalco Holding Co.		13,550		251,217
Olin Corp.		10,100		195,940
RPM International, Inc.		15,260		295,128

68 See financial notes

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Terra Industries, Inc.		9,900		291,060
The Mosaic Co.		9,500		646,190
The Scotts Miracle-Gro Co., Class A		1,380		32,623
United States Steel Corp.		11,700		908,037

				9,563,618


Media 3.1%
DISH Network Corp., Class A *		32,163		675,423
Mediacom Communications Corp., Class A *		7,500		44,400
RCN Corp. *		5,600		68,656
Time Warner, Inc.		254,100		3,331,251

				4,119,730


Pharmaceuticals & Biotechnology 11.6%
Albany Molecular Research, Inc. *		3,800		68,742
Bristol-Myers Squibb Co.		186,100		3,880,185
Cephalon, Inc. *		6,415		497,098
Gilead Sciences, Inc. *		37,000		1,686,460
ImClone Systems, Inc. *		240		14,986
Invitrogen Corp. *		40,012		1,512,454
Mylan, Inc. *		32,400		370,008
Par Pharmaceutical Cos., Inc. *		200		2,458
PDL BioPharma, Inc.		15,800		147,098
PerkinElmer, Inc.		59,020		1,473,729
Pfizer, Inc.		272,900		5,032,276
Pharmanet Development Group, Inc. *		2,900		20,938
Waters Corp. *		10,800		628,344
Watson Pharmaceuticals, Inc. *		5,893		167,951

				15,502,727


Retailing 2.1%
AnnTaylor Stores Corp. *		1,800		37,152
AutoZone, Inc. *		4,900		604,366
Big Lots, Inc. *		10,499		292,187
Borders Group, Inc.		2,010		13,185
Dollar Tree, Inc. *		8,300		301,788
Expedia, Inc. *		21,490		324,714
Fred’s, Inc., Class A		6,500		92,430
Jo-Ann Stores, Inc. *		18,600		390,228
Jos. A. Bank Clothiers, Inc. *		2,540		85,344
Netflix, Inc. *		5,400		166,752
OfficeMax, Inc.		1,330		11,824
Orbitz Worldwide, Inc. *		200		1,174
RadioShack Corp.		18,500		319,680
Stage Stores, Inc.		260		3,552
The Children’s Place Retail Stores, Inc. *		3,400		113,390
The Talbots, Inc.		3,700		48,470
Zale Corp. *		1,200		30,000

				2,836,236


Semiconductors & Semiconductor Equipment 3.0%
Atmel Corp. *		55,200		187,128
ATMI, Inc. *		4,650		83,607
Cypress Semiconductor Corp. *		17,090		89,210
Entegris, Inc. *		16,500		79,860
Fairchild Semiconductor International, Inc. *		8,400		74,676
FEI Co. *		2,600		61,906
Integrated Device Technology, Inc. *		89,451		695,928
Intersil Corp., Class A		2,109		34,967
LSI Corp. *		76,000		407,360
Micron Technology, Inc. *		88,857		359,871
Skyworks Solutions, Inc. *		128,308		1,072,655
Teradyne, Inc. *		24,500		191,345
TriQuint Semiconductor, Inc. *		82,848		396,842
Veeco Instruments, Inc. *		19,700		291,757

				4,027,112


Software & Services 6.8%
Computer Sciences Corp. *		43,281		1,739,463
EarthLink, Inc. *		16,200		137,700
GSI Commerce, Inc. *		3,900		60,372
Hewitt Associates, Inc., Class A *		12,400		451,856
IAC/InterActiveCorp. *		44,450		768,985
Interwoven, Inc. *		29,361		414,577
Intuit, Inc. *		36,056		1,139,730
JDA Software Group, Inc. *		400		6,084
Lawson Software, Inc. *		105,403		737,821
MAXIMUS, Inc.		16,070		592,019
Mentor Graphics Corp. *		58,320		661,932
Ness Technologies, Inc. *		6,000		68,820
Novell, Inc. *		43,900		225,646
Oracle Corp. *		19,300		391,983
Solera Holdings, Inc. *		3,490		100,233
Take-Two Interactive Software, Inc. *		960		15,744
TiVo, Inc. *		14,500		106,140
Unisys Corp. *		29,200		80,300
United Online, Inc.		57,106		537,368
VeriSign, Inc. *		20,700		539,856
Websense, Inc. *		6,400		143,040
Wind River Systems, Inc. *		11,200		112,000

				9,031,669


Technology Hardware & Equipment 5.0%
ADC Telecommunications, Inc. *		16,725		141,326
Agilent Technologies, Inc. *		33,770		1,001,618
Amphenol Corp., Class A		16,400		658,296
Avocent Corp. *		4,204		86,014
Black Box Corp.		13,172		454,829
Coherent, Inc. *		4,600		163,530
Emulex Corp. *		63,230		674,664
Harris Corp.		14,900		688,380
Hewlett-Packard Co.		8,700		402,288
Imation Corp.		4,900		110,691
International Business Machines Corp.		7,600		888,896
Itron, Inc. *		260		23,018
JDS Uniphase Corp. *		13,800		116,748
Mettler-Toledo International, Inc. *		200		19,600
MTS Systems Corp.		2,640		111,144
Powerwave Technologies, Inc. *		19,000		75,240

See financial notes 69

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

QUALCOMM, Inc.		7,800		335,166
Tekelec *		7,560		105,765
Vishay Intertechnology, Inc. *		93,300		617,646

				6,674,859


Telecommunication Services 7.0%
AT&T, Inc.		158,577		4,427,470
Verizon Communications, Inc.		153,900		4,938,651

				9,366,121


Transportation 1.8%
Con-way, Inc.		5,400		238,194
Genco Shipping & Trading Ltd.		3,570		118,667
Kansas City Southern *		4,560		202,281
Macquarie Infrastructure Co., LLC		2,100		27,741
Pacer International, Inc.		5,200		85,644
Ryder System, Inc.		6,100		378,200
Southwest Airlines Co.		72,500		1,051,975
UTI Worldwide, Inc.		12,500		212,750
YRC Worldwide, Inc. *		8,300		99,268

				2,414,720


Utilities 3.3%
Alliant Energy Corp.		10,780		347,224
CMS Energy Corp.		28,200		351,654
DTE Energy Co.		3,400		136,408
El Paso Electric Co. *		6,800		142,800
New Jersey Resources Corp.		890		31,942
NiSource, Inc.		25,500		376,380
NorthWestern Corp.		10,920		274,419
ONEOK, Inc.		11,600		399,040
PG&E Corp.		38,100		1,426,845
Sierra Pacific Resources		25,910		248,218
The AES Corp. *		56,500		660,485

				4,395,415

Total Common Stock (Cost $139,556,975)				128,043,009




Foreign Common Stock 1.3% of net assets


Bermuda 1.3%


Capital Goods 0.2%
Aircastle Ltd.		17,823		176,626


Software & Services 1.1%
Accenture Ltd., Class A		39,000		1,482,000


Transportation 0.0%
TBS International Ltd., Class A *		1,600		21,536

Total Foreign Common Stock (Cost $1,772,858)				1,680,162



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


Short-Term Investment 6.1% of net assets


Repurchase Agreement 6.1%
Custodian Trust Company, dated 09/30/08, due 10/01/08 at 0.2% with maturity value of $8,175,518 (fully collateralized by U.S. Treasury Note with a value of $8,416,939)		8,175,472		8,175,472

Total Short-Term Investment (Cost $8,175,472)				8,175,472



End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $149,879,049 and the unrealized appreciation and depreciation were $6,041,880 and ($18,022,286), respectively, with a net unrealized depreciation of ($11,980,406).


*		Non-income producing security.
(a)		All long positions are pledged as collateral for securities sold short.

70 See financial notes

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Short Sales 80.7% of net assets


Automobiles & Components 0.5%
ArvinMeritor, Inc.		10,100		131,704
BorgWarner, Inc.		7,400		242,498
Fuel Systems Solutions, Inc. *		1,800		62,010
Gentex Corp.		6,387		91,334
Lear Corp. *		8,400		88,200

				615,746


Banks 2.3%
1st Source Corp.		1,500		35,250
Associated Banc-Corp.		4,400		87,780
BancFirst Corp.		300		14,499
BOK Financial Corp.		2,900		140,389
Brookline Bancorp, Inc.		8,300		106,157
Capitol Federal Financial		2,900		128,557
Central Pacific Financial Corp.		1,200		20,172
City Holding Co.		2,100		88,725
Comerica, Inc.		10,000		327,900
CVB Financial Corp.		2,400		33,360
First Financial Bankshares, Inc.		2,600		134,888
First Horizon National Corp.		9,894		92,607
First Midwest Bancorp, Inc.		1,800		43,632
FirstMerit Corp.		7,800		163,800
Fulton Financial Corp.		4,500		49,095
Kearny Financial Corp.		17,186		210,357
KeyCorp		27,000		322,380
MB Financial, Inc.		900		29,763
NBT Bancorp, Inc.		800		23,936
Old National Bancorp		3,200		64,064
Pinnacle Financial Partners, Inc. *		600		18,480
Provident Financial Services, Inc.		7,200		118,872
Signature Bank *		1,200		41,856
Sovereign Bancorp, Inc.		8,700		34,365
Sterling Bancshares, Inc.		2,700		28,215
Susquehanna Bancshares, Inc.		3,582		69,920
SVB Financial Group *		3,200		185,344
TFS Financial Corp.		11,200		140,224
UMB Financial Corp.		2,600		136,552
Whitney Holding Corp.		7,100		172,175

				3,063,314


Capital Goods 2.2%
BE Aerospace, Inc. *		1,900		30,077
Blount International, Inc. *		4,950		55,094
Bucyrus International, Inc.		400		17,872
Chart Industries, Inc. *		1,200		34,272
CLARCOR, Inc.		400		15,180
General Cable Corp. *		4,200		149,646
Ingersoll-Rand Co., Ltd., Class A		19,400		604,698
Northwest Pipe Co. *		300		13,086
Oshkosh Corp.		7,800		102,648
Otter Tail Corp.		3,300		101,409
Precision Castparts Corp.		8,700		685,386
Sun Hydraulics Corp.		800		20,832
The Boeing Co.		16,400		940,540
Titan International, Inc.		163		3,464
TransDigm Group, Inc. *		3,900		133,497

				2,907,701


Commercial & Professional Supplies 1.4%
Cenveo, Inc. *		37,575		288,952
Duff & Phelps Corp., Class A *		900		18,927
Healthcare Services Group, Inc.		2,600		47,554
Iron Mountain, Inc. *		60,405		1,474,486
School Specialty, Inc. *		2,800		87,332
The Advisory Board Co. *		300		9,048

				1,926,299


Consumer Durables & Apparel 2.2%
Brunswick Corp.		10,200		130,458
Coach, Inc. *		800		20,032
Eastman Kodak Co.		20,900		321,442
Jones Apparel Group, Inc.		800		14,808
K-Swiss, Inc., Class A		23,100		401,940
Mattel, Inc.		30,600		552,024
Newell Rubbermaid, Inc.		55,477		957,533
Polo Ralph Lauren Corp.		1,300		86,632
The Black & Decker Corp.		6,700		407,025

				2,891,894


Consumer Services 2.1%
Brinker International, Inc.		9,700		173,533
Capella Education Co. *		600		25,716
International Game Technology		20,100		345,318
Matthews International Corp., Class A		3,000		152,220
MGM MIRAGE *		7,600		216,600
Scientific Games Corp., Class A *		500		11,510
Service Corp. International		22,300		186,428
Sotheby’s		6,300		126,378
Starbucks Corp. *		47,200		701,864
Starwood Hotels & Resorts Worldwide, Inc.		12,000		337,680
Strayer Education, Inc.		1,100		220,286
thinkorswim Group, Inc. *		31,830		265,144

				2,762,677


Diversified Financials 5.0%
Affiliated Managers Group, Inc. *		2,800		231,980
CME Group, Inc.		3,500		1,300,285
Eaton Vance Corp.		7,000		246,610
FCStone Group, Inc. *		3,300		59,367
Financial Federal Corp.		3,600		82,512
GAMCO Investors, Inc., Class A		200		11,860
GFI Group, Inc.		9,200		43,332
IntercontinentalExchange, Inc. *		4,500		363,060
Investment Technology Group, Inc. *		4,300		130,849
Lazard Ltd., Class A		4,500		192,420
Legg Mason, Inc.		8,400		319,704
Moody’s Corp.		56,500		1,921,000
Nelnet, Inc., Class A		2,700		38,340
NYSE Euronext		15,600		611,208
optionsXpress Holdings, Inc.		5,400		104,868
Raymond James Financial, Inc.		2,100		69,258
SLM Corp. *		29,800		367,732

See financial notes 71

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

SWS Group, Inc.		2,100		42,336
The Nasdaq OMX Group, Inc. *		9,500		290,415
The Student Loan Corp.		600		55,800
Waddell & Reed Financial, Inc., Class A		6,900		170,775
World Acceptance Corp. *		900		32,400

				6,686,111


Energy 4.7%
Bristow Group, Inc. *		2,500		84,600
Frontier Oil Corp.		37,087		683,143
Holly Corp.		23,710		685,693
iHS, Inc., Class A *		3,400		161,976
Kinder Morgan Management LLC *		—		20
Nabors Industries Ltd. *		17,800		443,576
Spectra Energy Corp.		25,500		606,900
TC Pipelines L.P.		3,900		120,666
Tesoro Corp.		51,934		856,392
Valero Energy Corp.		35,000		1,060,500
World Fuel Services Corp.		3,900		89,817
XTO Energy, Inc.		32,000		1,488,640

				6,281,923


Food & Staples Retailing 0.8%
The Kroger Co.		39,700		1,090,956


Food, Beverage & Tobacco 4.3%
Central European Distribution Corp. *		3,000		136,230
Kraft Foods, Inc., Class A		80,000		2,620,000
PepsiCo, Inc.		11,200		798,224
The Hershey Co.		56,600		2,237,964

				5,792,418


Health Care Equipment & Services 6.7%
Brookdale Senior Living, Inc.		4,700		103,353
DaVita, Inc. *		6,800		387,668
Genoptix, Inc. *		1,300		42,471
Health Management Associates, Inc., Class A *		10,900		45,344
HMS Holdings Corp. *		6,670		159,813
Medtronic, Inc.		68,200		3,416,820
Meridian Bioscience, Inc.		3,300		95,832
Owens & Minor, Inc.		3,800		184,300
Phase Forward, Inc. *		5,600		117,096
Stryker Corp.		19,300		1,202,390
Sun Healthcare Group, Inc. *		1,800		26,388
UnitedHealth Group, Inc.		75,900		1,927,101
VCA Antech, Inc. *		7,600		223,972
Zimmer Holdings, Inc. *		14,500		936,120

				8,868,668


Household & Personal Products 3.4%
The Procter & Gamble Co.		65,600		4,571,664


Insurance 1.1%
Brown & Brown, Inc.		9,300		201,066
FBL Financial Group, Inc., Class A		1,800		50,202
IPC Holdings Ltd.		3,500		105,735
Odyssey Re Holdings Corp.		1,500		65,700
RLI Corp.		600		37,254
State Auto Financial Corp.		8,965		260,613
The Progressive Corp.		42,400		737,760

				1,458,330


Materials 1.2%
Balchem Corp.		2,800		74,676
Crown Holdings, Inc. *		10,900		242,089
Deltic Timber Corp.		1,500		95,460
Eagle Materials, Inc.		5,100		114,087
Smurfit-Stone Container Corp. *		154,780		727,466
Weyerhaeuser Co.		5,560		336,825

				1,590,603


Media 4.8%
Clear Channel Outdoor Holdings, Inc., Class A *		12,030		164,570
Comcast Corp., Class A		149,600		2,936,648
CTC Media, Inc. *		990		14,850
DreamWorks Animation SKG, Inc., Class A *		6,636		208,702
Interactive Data Corp.		4,500		113,490
Lamar Advertising Co., Class A *		43,013		1,328,672
Liberty Global, Inc., Series A *		22,200		672,660
Morningstar, Inc. *		600		33,282
National CineMedia, Inc.		6,000		66,300
Regal Entertainment Group, Class A		8,500		134,130
Sinclair Broadcast Group, Inc., Class A		7,100		35,784
The McGraw-Hill Cos., Inc.		20,500		648,005
World Wrestling Entertainment, Inc., Class A		3,400		52,564

				6,409,657


Pharmaceuticals & Biotechnology 9.5%
Abbott Laboratories		73,200		4,214,856
Alkermes, Inc. *		45,790		609,007
Allergan, Inc.		19,200		988,800
Allos Therapeutics, Inc. *		7,700		57,057
AMAG Pharmaceuticals, Inc. *		10,779		417,471
Amylin Pharmaceuticals, Inc. *		66,068		1,335,895
Cepheid, Inc. *		6,900		95,427
Durect Corp. *		900		5,040
eResearch Technology, Inc. *		5,800		69,078
Exelixis, Inc. *		83,970		510,538
Incyte Corp. *		18,700		143,055
Martek Biosciences Corp. *		1,400		43,988
Momenta Pharmaceuticals, Inc. *		3,400		44,574
Pharmasset, Inc. *		600		11,970
Rigel Pharmaceuticals, Inc. *		4,900		114,415
Savient Pharmaceuticals, Inc. *		900		13,419
Schering-Plough Corp.		8,000		147,760
Techne Corp. *		3,200		230,784
Theravance, Inc. *		6,700		83,482
United Therapeutics Corp. *		400		42,068
Vertex Pharmaceuticals, Inc. *		84,535		2,809,943

72 See financial notes

Laudus Rosenberg Long/Short Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

XenoPort, Inc. *		12,795		620,429

				12,609,056


Real Estate 0.4%
Forest City Enterprises, Inc., Class A		11,780		361,293
Tejon Ranch Co. *		4,980		185,007

				546,300


Retailing 0.4%
bebe stores, Inc.		5,400		52,758
J. Crew Group, Inc. *		685		19,570
LKQ Corp. *		9,700		164,609
Nordstrom, Inc.		8,400		242,088

				479,025


Semiconductors & Semiconductor Equipment 7.2%
Cavium Networks, Inc. *		4,400		61,952
FormFactor, Inc. *		32,400		564,408
Intel Corp.		241,200		4,517,676
Lam Research Corp. *		42,100		1,325,729
Microchip Technology, Inc.		69,100		2,033,613
Rambus, Inc. *		78,213		1,005,037
Varian Semiconductor Equipment Associates, Inc. *		5,800		145,696

				9,654,111


Software & Services 5.2%
Alliance Data Systems Corp. *		5,000		316,900
ANSYS, Inc. *		6,005		227,409
Autodesk, Inc. *		14,000		469,700
Cognizant Technology Solutions Corp., Class A *		20,133		459,636
comScore, Inc. *		2,600		45,838
DealerTrack Holdings, Inc. *		25,000		421,000
Genpact Ltd. *		7,800		81,042
Global Cash Access Holdings, Inc. *		600		3,036
Google, Inc., Class A *		10,780		4,317,606
Paychex, Inc.		15,600		515,268
The Ultimate Software Group, Inc. *		3,200		86,400

				6,943,835


Technology Hardware & Equipment 5.0%
Brightpoint, Inc. *		43,600		313,920
Cisco Systems, Inc. *		203,900		4,599,984
Daktronics, Inc.		8,640		143,942
Dell, Inc. *		48,000		791,040
Dolby Laboratories, Inc., Class A *		3,800		133,722
Netezza Corp. *		5,400		57,294
Plexus Corp. *		4,700		97,290
SanDisk Corp. *		17,000		332,350
Seagate Technology		16,700		202,404

				6,671,946


Telecommunication Services 2.5%
American Tower Corp., Class A *		24,800		892,056
Centennial Communications Corp. *		9,700		60,528
Iowa Telecommunications Services, Inc.		4,800		89,664
Metropcs Communications, Inc. *		17,300		242,027
NII Holdings, Inc. *		11,100		420,912
NTELOS Holdings Corp.		3,800		102,182
Sprint Nextel Corp.		178,870		1,091,107
United States Cellular Corp. *		2,500		117,300
Windstream Corp.		30,500		333,670

				3,349,446


Transportation 4.6%
Allegiant Travel Co. *		2,000		70,640
Atlas Air Worldwide Holdings, Inc. *		1,800		72,558
Continental Airlines, Inc., Class B *		6,219		103,733
Copa Holdings S.A., Class A		3,700		120,250
Expeditors International of Washington, Inc.		13,400		466,856
FedEx Corp.		19,200		1,517,568
Hertz Global Holdings, Inc. *		39,862		301,755
JetBlue Airways Corp. *		98,400		487,080
UAL Corp.		49,574		435,756
United Parcel Service, Inc., Class B		41,100		2,584,779

				6,160,975


Utilities 3.2%
Allegheny Energy, Inc.		10,500		386,085
Dynegy, Inc., Class A *		36,900		132,102
Equitable Resources, Inc.		8,200		300,776
Exelon Corp.		18,100		1,133,422
FirstEnergy Corp.		19,100		1,279,509
ITC Holdings Corp.		3,800		196,726
PPL Corp.		13,349		494,180
Reliant Energy, Inc. *		21,400		157,290
South Jersey Industries, Inc.		3,500		124,950
The Laclede Group, Inc.		1,600		77,584

				4,282,624

Total Short Sales (Proceeds $127,083,406)				107,615,279


End of short sale positions.

* Non-income producing security

End of Investments.

Laudus Rosenberg Long/Short Equity Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $149,505,305)		$137,898,643
Deposits with broker for short sales		103,677,044
Receivables:
Fund shares sold		100,405
Dividends		125,392
Interest		96,769
Prepaid expenses	+	10,123


Total assets		241,908,376


Liabilities
Securities sold short, at value (proceeds $127,083,406)		107,615,279
Payables:
Investments bought		88,537
Investment adviser fees		16,560
Fund shares redeemed		582,496
Dividends on short sales		66,228
Distribution and shareholder services fees		15,888
Accrued expenses	+	93,717


Total liabilities		108,478,705


Net Assets
Total assets		241,908,376
Total liabilities	−	108,478,705


Net assets		$133,429,671
Net Assets by Source
Capital received from investors		146,317,668
Distribution in excess of net investment income		(32,904	)
Net realized capital losses		(20,716,558	)
Net unrealized capital gains		7,861,465

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$10,725,665		1,055,423			$10.16
Select Shares	$122,704,006		11,976,425			$10.25

74 See financial notes

Laudus Rosenberg Long/Short Equity Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends		$1,480,358
Interest	+	1,360,122


Total Investment Income		2,840,480


Net Realized Gains and Losses
Net realized gains on investments		2,534,273
Net realized gains on short sales	+	44,137,394


Net realized gains		46,671,667


Net Unrealized Gains and Losses
Net unrealized losses on investments		(16,654,427	)
Net unrealized losses on short sales	+	(31,572,288	)


Net unrealized losses		(48,226,715	)


Expenses
Investment adviser fees		1,343,351
Custodian fees		33,586
Accounting and administration fees		32,459
Transfer agent fees		31,343
Professional fees		24,154
Shareholder reports		19,344
Distribution and shareholder services fees (Investor Shares)		16,025
Registration fees		9,542
Trustees’ fees		4,590
Sub-Accounting fees ( Investor Shares)		3,685
Dividends on short sales		1,605,352
Other expenses	+	9,242


Total expenses		3,132,673
Expense reduction by adviser	−	2,164


Net expenses		3,130,509


Increase (Decrease) in Net Assets from Operations
Total investment income		2,840,480
Net expenses	−	3,130,509


Net investment loss		(290,029	)
Net realized gains		46,671,667
Net unrealized losses	+	(48,226,715	)


Decrease in net assets from operations		($1,845,077	)

See financial notes 75

Laudus Rosenberg Long/Short Equity Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income (loss)			($290,029	)		$5,838,795
Net realized gains (losses)			46,671,667			(8,613,274	)
Net unrealized gains (losses)	+		(48,226,715	)		14,263


Decrease in net assets from operations			(1,845,077	)		(2,760,216	)


Distributions to Shareholders¹
Distributions from net investment income
Investor Shares			—			(560,827	)
Select Shares	+		—			(6,504,002	)


Total distributions from net investment income			—			($7,064,829	)

Transactions in Fund Shares¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			129,096			$1,333,904			1,441,013			$15,207,733
Select Shares	+		586,974			6,108,692			7,165,760			76,300,683


Total shares sold			716,070			$7,442,596			8,606,773			$91,508,416


Shares Reinvested
Investor Shares			—			$-			37,333			$390,128
Select Shares	+		—			—			555,166			5,834,792


Total shares reinvested			—			$-			592,499			$6,224,920


Shares Redeemed
Investor Shares			(502,804	)		($5,165,379	)		(6,108,994	)		($64,097,820	)
Select Shares	+		(6,247,046	)		(64,533,909	)		(14,332,185	)		(151,274,145	)


Total shares redeemed			(6,749,850	)		($69,699,288	)		(20,441,179	)		($215,371,965	)

Net transactions in fund shares			(6,033,780	)		($62,256,692	)		(11,241,907	)		($117,638,629	)


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			19,065,628			$197,531,440			30,307,535			$324,995,114
Total decrease	+		(6,033,780	)		(64,101,769	)		(11,241,907	)		(127,463,674	)


End of period			13,031,848			$133,429,671			19,065,628			$197,531,440


Distribution in excess of net investment income/						($32,904	)					$257,125
Net investment income not yet distributed


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

76 See financial notes

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the Laudus Rosenberg Funds in this report is a series of the Laudus Trust (the “Trust”) an open-end management investment company. The Trust was organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended.

The list below shows all the funds in the Trust including the funds discussed in this report, which are highlighted (individually each such highlighted portfolio, a “Fund” and collectively, the “Funds”):



Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. 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 Long/Short Equity Fund		Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund

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 Institutional Shares class name changed to Select Shares effective July 31, 2008, for all Laudus Rosenberg Funds.

Each fund is authorized to issue an unlimited number of Investor Shares and Select 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, bear different distribution and sub-transfer agent expenses, and separate voting rights on matters pertaining solely to that class of shares.

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

2. Significant Accounting Policies:

(a) Security Valuation

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


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the current exchange rate. The Funds do not isolate the portion of the fluctuation on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

	•	Securities for which no quoted value is available or when a significant event has occurred between the time of the security’s last close and the time the Funds calculate net asset value: valued at fair value, as determined in good faith by the Funds’ investment adviser using guidelines adopted by the Funds’ Board of Trustees and the Pricing Committee. Some of the more common reasons that may necessitate that a security be valued at fair value include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security’s primary pricing source is not able or willing to provide a price, or certain foreign securities closing market prices adjusted for changes in value that may occur between the close of foreign exchange and the time at which Fund shares are priced. The Board of Trustees regularly reviews fair value determinations, made by the Funds, pursuant to the procedures.

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


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

	•	Mutual Funds: valued at their respective net asset values as determined by those funds, in accordance with the 1940 Act for a given day.

(b) Portfolio Investments:

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 financial statements 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.

Real Estate Investment Trusts: Certain Funds may own shares of real estate investment trusts (“REITs”) which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT.

Repurchase Agreements: The Funds may enter into repurchase agreement. In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that it be sold back in the future. The date, price and other conditions are all specified when the agreement is created.

Short Sales: The Laudus Rosenberg Long/Short Equity Fund is 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 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 Holdings. 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 and the Laudus Rosenberg U.S. 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.

(c) Security Transactions:

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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 are allocated to each class of shares based upon relative net assets on the date income is earned, or expenses and realized/unrealized losses are incurred.

(d) Investment Income:

(e) Expenses:

(f) Distributions to Shareholders:

The Funds make distributions from net investment income and net realized capital gains once a year.

(g) 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’ operating expenses.

(h) Accounting Estimates:

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

(i) Federal Income Taxes:

(j) Indemnification:

(k) New Accounting Standards

The fund(s) adopted Financial Accounting Standard Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective April 1, 2008. FAS 157 defines fair value, establishes a framework for measuring

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

fair value and expands disclosures about fair value measurements. Management has concluded that the adoption of FAS 157 is not expected to have a material impact on the fund’s financial statements.


	•	Level 1 – quoted prices in active markets for identical securities

	•	Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

	•	Level 3 – significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)


	Investment in Securities
	Laudus		Laudus		Laudus		Laudus		Laudus		Laudus
	Rosenberg		Rosenberg		Rosenberg		Rosenberg		Rosenberg		Rosenberg
	U.S. Large		U.S. Large		U.S. Large		U.S.		U.S. Small		Long/Short
	Capitalization		Capitalization		Capitalization		Discovery		Capitalization		Equity Fund
Valuation Inputs	Fund		Growth Fund		Value Fund		Fund		Fund

Level 1 – Quoted prices		$85,367,544		$48,577,285		$6,702,444		$660,362,327		$499,884,412		$22,107,892
Level 2 – Other significant observable inputs		1,597,000		595,000		101,000		—		—		111,852,516
Level 3 – Significant unobservable inputs		—		—		—		—		—		—
Total		$86,964,544		$49,172,285		$6,803,444		$660,362,327		$499,884,412		$133,960,408

3. Affiliates and Affiliated Transactions:

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

Charles Schwab Investment Management, Inc. (“CSIM” or the “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.

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

3. Affiliates and Affiliated Transactions (continued):

The table below sets forth the advisory fee 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 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 September 30, 2008, the Funds paid no brokerage fees on the execution of portfolio trades with affiliated brokers/dealers.


	Investor Shares		Select Shares

Laudus Rosenberg U.S. Large Capitalization Fund*		1.14%		0.84%
Laudus Rosenberg U.S. Large Capitalization Growth Fund*		1.14%		0.84%
Laudus Rosenberg U.S. Large Capitalization Value Fund*		1.14%		0.84%
Laudus Rosenberg U.S. Discovery Fund		1.44%		1.14%
Laudus Rosenberg U.S. Small Capitalization Fund**		1.44%		1.14%
Laudus Rosenberg Long/Short Equity Fund		2.04%		1.74%


*	Prior to April 15, 2008, the expense limitations were 1.29% and 0.99% for the Investor Shares and Select Shares, respectively.

**	There is no Expense Limit for Adviser Shares of the Laudus Rosenberg U.S. Small Capitalization Fund. However, effective November 1, 2007 through October 31, 2008 the Manager has agreed to voluntarily waive 0.03% of the Adviser Shares expenses. In addition, effective November 1, 2007 through October 31, 2008 the Manager has agreed to voluntarily waive 0.03% of the Investor Shares expenses. Further, the Manager has voluntarily agreed to continue the 0.03% waiver on Adviser and Investor Shares effective November 1, 2008 through October 31, 2009.

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

3. Affiliates and Affiliated Transactions (continued):


	Expires		Expires		Expires
	3/31/09		3/31/10		3/31/11

Laudus Rosenberg U.S. Large Capitalization Fund		$7,039		$—		$50,592
Laudus Rosenberg U.S. Large Capitalization Growth Fund		36,418		—		53,804
Laudus Rosenberg U.S. Large Capitalization Value Fund		103,539		125,556		56,541
Laudus Rosenberg U.S. Discovery Fund		—		—		—
Laudus Rosenberg U.S. Small Capitalization Fund		—		—		—
Laudus Rosenberg Long/Short Equity Fund		2,450		—		2,164

4. Other Shareholders 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 Funds are sold on a continuous basis by the Trust’s distributor — ALPS Distributors, Inc. Under the Distribution and Shareholder Services Plan, the Funds pay distribution and shareholder servicing fees in connection with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to 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 agent and sub-accounting services in connection with such shares.

5. Board of Trustees:

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.

A Retirement Plan was instituted for certain Independent Trustees of the Trust. In September 2006, the Trustees voted to close the Retirement Plan to new participants as of June 26, 2006 and to discontinue making contributions to the Retirement Plan after the plan year ending March 31, 2007. All other terms of the Retirement Plan, including without limitation provisions relating to vesting and payment upon termination of service, remain in effect. 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 and including a final one-half year credit for service during the plan year ending March 31, 2007. Beginning April 1, 2005, each Independent Trustee was permitted to make a one-time election to have the $10,000 attributable to service for the coming year and previously accrued benefits adjusted up or down at the end of each subsequent year based on the unweighted average performance of the share class with the lowest OER of each fund of the Trust. After the closure of the Retirement Plan, the previously accrued benefits that an Independent Trustee had elected to have adjusted by the performance of the funds would continue to be adjusted for performance as provided under the Retirement Plan. As a result, the amount of the Retirement Payment payable to any Independent Trustee may increase or decrease based upon the 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.

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

6. Borrowing from Banks:

The custodian has established a loan agreement for a maximum amount of 10% of total assets for the Laudus Rosenberg Long/Short Equity Fund for temporary borrowing purposes. 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 and Laudus Rosenberg U.S. Small Capitalization Fund has access to custodian overdraft facilities and to an uncommitted line of credit of up to a maximum of $100,000,000, as established by State Street Corporation. Interest is calculated based on the market rates at the time of borrowing. There were no borrowings from the line of credit for the period ended September 30, 2008.

7. Purchases and Sales of Investment Securities:

For the period ended September 30, 2008, purchases and sales of securities (excluding short-term securities) were as follows:


	Purchases		Sales

Laudus Rosenberg U.S. Large Capitalization Fund		$71,315,816		$67,757,293
Laudus Rosenberg U.S. Large Capitalization Growth Fund		21,307,330		20,145,924
Laudus Rosenberg U.S. Large Capitalization Value Fund		2,882,507		1,723,441
Laudus Rosenberg U.S. Discovery Fund		487,440,775		517,187,267
Laudus Rosenberg U.S. Small Capitalization Fund		352,975,882		439,179,636
Laudus Rosenberg Long/ Short Equity Fund		504,930,994		490,698,924

8. Redemption Fee:

Certain Fund 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 Changes in Net Assets. For the current and prior period, redemption fees assessed were as follows:


	Current Period		Prior Period
	(4/1/08-9/30/08)		(4/1/07-3/31/08)

Laudus Rosenberg U.S. Large Capitalization Fund		$1,937		$22,951
Laudus Rosenberg U.S. Large Capitalization Growth Fund		1,426		14,887
Laudus Rosenberg U.S. Large Capitalization Value Fund		—		378
Laudus Rosenberg U.S. Discovery Fund		2,483		10,158
Laudus Rosenberg U.S. Small Capitalization Fund		1,345		16,091
Laudus Rosenberg Value Long/Short Equity Fund		2,752		26,432

9. Federal Income Taxes:

As of March 31, 2008, the Laudus Rosenberg Long/Short Equity Fund was the only fund with net capital loss carry forward, which is available to offset future realized gains:


Expire

2009			$11,040,106
2010			—
2011			—
2012			20,890,232
2013			—
2014			—
2015			13,099,020
2015			21,018,727
Total			$66,048,085

Laudus Rosenberg U.S. Equity Funds

Financial Notes, unaudited (continued)

9. Federal Income Taxes (continued):

Net capital 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, 2008, the Funds deferred to April 1, 2008 post October capital losses of:


	Capital Losses


Laudus Rosenberg U.S. Large Capitalization Fund		$3,662,236
Laudus Rosenberg U.S. Large Capitalization Growth Fund		—
Laudus Rosenberg U.S. Large Capitalization Value Fund		12,132
Laudus Rosenberg U.S. Discovery Fund		8,642,506
Laudus Rosenberg U.S. Small Capitalization Fund		2,851,031
Laudus Rosenberg Long/Short Equity Fund		—

The Funds utilized capital loss carry forwards during the year end March 31, 2008 in the amount of:


	Capital Losses Utilized		Capital Losses Expired

Laudus Rosenberg U.S. Large Capitalization Fund		$—		$—
Laudus Rosenberg U.S. Large Capitalization Growth Fund		1,674,486		—
Laudus Rosenberg U.S. Large Capitalization Value Fund		—		—
Laudus Rosenberg U.S. Discovery Fund		—		—
Laudus Rosenberg U.S. Small Capitalization Fund		—		—
Laudus Rosenberg Long/Short Equity Fund				26,836,920

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. 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. As of September 30, 2008, management has reviewed the tax positions for open tax years (March 31, 2005 through March 31, 2008), and determined that no provision for income tax is required in the Funds’ financial statements.

Approval of Investment Advisory and Sub-Advisory Agreements

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory agreements between Laudus Trust (the “Trust”) and CSIM, and the sub-advisory agreements among the Trust, CSIM and AXA Rosenberg Investment Management LLC (“AXA Rosenberg”) with respect to existing funds in the Trust operating as of March 31 of the previous year (such investment advisory agreements and sub-advisory agreements, collectively, the “Agreements”). In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM and AXA Rosenberg, including information about their affiliates, personnel and operations. The Board also receives extensive data provided by third parties. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to fund operations and fund performance. The Independent Trustees receive advice from independent counsel to the Independent Trustees, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees meet in executive session outside the presence of fund management and participate in question and answer sessions with representatives of CSIM and AXA Rosenberg, as appropriate.

As part of the renewal process and ongoing oversight of the advisory and sub-advisory relationships, Independent Trustees’ legal counsel sent an information request letter to CSIM and CSIM sent an information request letter to AXA Rosenberg seeking certain relevant information. The responses by CSIM and AXA Rosenberg were provided to the Trustees for their review prior to their meeting, and the Trustees were provided with the opportunity to request any additional materials.

1. the nature, extent and quality of the services provided to the Funds under the Agreements, including the resources of CSIM and its affiliates, and AXA Rosenberg, dedicated to the Funds;

2. each Fund’s investment performance and how it compared to that of certain other comparable mutual funds;

3. each Fund’s expenses and how those expenses compared to those of certain other comparable mutual funds;

5. the extent to which economies of scale would be realized as the Funds grow, and whether fee levels in the Agreements reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s personnel, experience, and compliance program. The information considered by the Trustees included specific information concerning changes in the nature, extent and quality of services provided by CSIM since the Trustees had last considered approval of the Agreement. The Trustees also considered investments in CSIM’s mutual fund infrastructure. The Trustees also considered Schwab’s excellent reputation in connection with the OneSource mutual fund offering and its overall financial condition. The Board also considered the nature, extent and quality of the sub-advisory services provided by AXA Rosenberg to the Funds and the resources it dedicates to the Funds. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM and AXA Rosenberg to the Funds and the resources of CSIM and its affiliates and the resources of AXA Rosenberg dedicated to

the Funds supported renewal of the Agreements with respect to the Funds.

Fund Performance. The Board considered Fund performance in determining whether to renew the Agreements. Specifically, the Trustees considered each Fund’s performance relative to a peer group and peer category of other mutual funds and appropriate indices/benchmarks, in light of total return and market trends. As part of this review, the Trustees considered the composition of the peer group and peer category, selection criteria and the reputation of the third party who prepared the peer group and peer category analysis. In evaluating the performance of each Fund, the Trustees considered both risk and shareholder risk expectations for such Fund, whether, irrespective of relative performance, AXA Rosenberg’s absolute performance was consistent with expectations for its unique quantitative investment methodology and the appropriateness of the benchmark used to compare the performance of each Fund. The Trustees further considered the level of Fund performance in the context of its review of Fund expenses and adviser profitability discussed below. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods considered, the Board concluded that other factors relevant to performance supported renewal of the Agreements. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Funds supported renewal of the Agreements with respect to the Funds.

Fund Expenses. With respect to the Funds’ expenses, the Trustees considered the rate of compensation called for by the Agreements, and each Fund’s net operating expense ratio, in each case, in comparison to those of other comparable mutual funds, such peer groups and comparisons having been selected and calculated by an independent third party. The Trustees considered the effects of CSIM’s contractual and voluntary waivers of management and other fees to prevent total Fund expenses from exceeding a specified cap. The Trustees also considered fees charged by CSIM and AXA Rosenberg to other mutual funds and to other types of accounts, such as separate accounts and wrap accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Funds are reasonable and supported renewal of the Agreements with respect to the Funds.

Profitability. With regard to profitability, the Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly and the compensation flowing to AXA Rosenberg, directly or indirectly. In this connection, with respect to the profitability of CSIM and its affiliates, the Trustees reviewed management’s profitability analyses, together with certain commentary thereon from an independent accounting firm. The Trustees also considered any other benefits derived by CSIM and AXA Rosenberg from their relationships with the Funds, such as whether, by virtue of their management of the Funds, CSIM or AXA Rosenberg obtains investment information or other research resources that aid it in providing advisory services to other clients. With respect to CSIM and AXA Rosenberg, and their respective affiliates, the Trustees considered whether the varied levels of compensation and profitability under the Agreements and other service agreements were reasonable and justified in light of the quality of all services rendered to each Fund by CSIM and AXA Rosenberg, and their respective affiliates. The Board also considered information relating to changes to CSIM’s business operations and how these changes affected CSIM’s profitability under the Agreements. With respect to the profitability of AXA Rosenberg, the Board also considered that AXA Rosenberg is compensated by CSIM, and not by the Funds directly, and such compensation reflects an arms-length negotiation between the parties. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of CSIM and AXA Rosenberg is reasonable and supported renewal of the Agreements with respect to the Funds.

Economies of Scale. The Trustees considered the existence of any economies of scale and whether those are passed along to a Fund’s shareholders through a graduated investment advisory fee schedule or other means, including any fee waivers by CSIM and its affiliates. In this regard, and consistent with their consideration of Fund expenses, the Trustees considered that CSIM has previously committed resources to minimize the effects on shareholders of diseconomies of scale during periods when Fund assets were relatively small through contractual expense waivers. For example, such diseconomies of scale may particularly affect newer funds or funds with investment strategies that are from time to time out of favor, but shareholders may benefit from the continued availability of such funds at subsidized expense levels. The Trustees also considered existing contractual investment advisory fee schedules that, for all Funds other than Laudus U.S. Small Capitalization Fund, include lower fees at higher graduated asset levels, and AXA Rosenberg’s agreement to (a) contractual sub-advisory fee schedules that, for all Funds other than Laudus U.S. Small Capitalization Fund, include lower fees at higher graduated asset levels as measured on a complex wide basis, and (b) a contractual subadvisory fee schedule with respect to the Laudus U.S. Small Capitalization Fund that includes lower fees at higher graduated assets levels. The Board also


Independent Trustees
Name, Address¹	Principal	Number of
and Year of Birth;	Occupation(s)	Portfolios in
(Term of Office, and	During the	Fund Complex
Length of Time Served²)	Past Five Years	Overseen		Other Directorships Held by Trustee



Mariann Byerwalter³1960 (1/04-present)	Chairman of JDN Corporate Advisory LLC.		84	Board 1–Director, Redwood Trust, Inc. (mortgage finance). Board 2–Director, PMI Group, Inc. (mortgage insurance).


William A. Hasler³1941 (1/04-present)	Retired. Dean Emeritus of the Haas School of Business at the University of California, Berkeley. Until February 2004, Co-Chief Executive Officer, Aphton Corp. (bio-pharmaceuticals).		84	Board 1–Director, Mission West Properties (commercial real estate). Board 2–Director, TOUSA (home building). Board 3–Director, Harris-Stratex Networks (a network equipment corporation). Board 4–Director, Genitope Corp. (bio-pharmaceuticals). Board 5 –Director, Ditech Networks (voice communication technology). Board 6–Rubicon Limited (manufacturing).


Nils H. Hakansson³1937 (3/90-present)	Sylvan C. Coleman Professor of Finance and Accounting, Emeritus, Haas School of Business, University of California, Berkeley (since 2003). Mr. Hakansson was also a Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley (July 1969 to January 2003).		15	None


Independent Trustees continued
Name, Address¹	Principal	Number of
and Year of Birth;	Occupation(s)	Portfolios in
(Term of Office, and	During the	Fund Complex
Length of Time Served²)	Past Five Years	Overseen		Other Directorships Held by Trustee


Randall W. Merk 1954 Trustee (6/06-present)	Executive Vice President and President, Investment Management Services, Charles Schwab & Co. Inc.; Executive Vice President, Charles Schwab & Co. Inc.(2002-present); President and Chief Executive Officer, Charles Schwab Investment Management, Inc. (2007-present); Director, Charles Schwab Asset Management (Ireland) Limited and Charles Schwab Worldwide Funds PLC. From September 2002 to July 2004, Chief Executive Officer and President, Charles Schwab Investment Management, Inc. and Executive Vice President, Charles Schwab & Co., Inc.		15	None


Officers
Name, Address⁴
and Year of Birth;
(Term of Office⁵,
and Length of Time
Served)	Position with the Trust	Principal Occupation During Past Five Years



Jeffrey Mortimer 1963 (3/08-present, President and CEO) (6/04-present, CIO)	President, Chief Executive Officer, and Chief Investment Officer	Senior Vice President and Chief Investment Officer-Equities, Charles Schwab Investment Management, Inc., and Schwab Funds. Prior to May 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc.


George Pereira 1964 (6/06-present)	Treasurer and Chief Financial Officer	Senior Vice President and Chief Financial Officer, Charles Schwab Investment Management, Inc.; Treasurer and Principal Financial Officer, Schwab Funds; Director, Charles Schwab Worldwide Funds, PLC and Charles Schwab Asset Management (Ireland) Ltd. Through June 2007, Chief Financial Officer, Mutual Fund Division, UST Advisers, Inc., and Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Trust Inc.; From 12/99 to 11/04: Senior Vice President, Financial Reporting, Charles Schwab & Co., Inc.


Catherine MacGregor 1964 (12/05-present)	Chief Legal Officer, Vice President and Clerk	Vice President, Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.; Vice President, Schwab Funds; until July 2005, Senior Associate, Paul Hastings Janofsky & Walker LLP.


Randall Fillmore 1960 (9/04-present)	Chief Compliance Officer	Senior Vice President, Chief Compliance Officer, Charles Schwab Investment Management, Inc.; Senior Vice President, Charles Schwab & Co., Inc.; Chief Compliance Officer, Schwab Funds. From June 2006 to June 2007, Chief Compliance Officer, Excelsior Funds. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc., and Charles Schwab Investment Management, Inc.


Daniel Kern 1961 (3/05-present)	Vice President	Vice President, Investment Management Services. Until September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation.

Glossary

GDP, or Gross Domestic Product, is the market value of the goods and services produced by labor and property in the United States.

The Russell 1000^® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 1000^® Value Index measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios.

Price to earnings ratio is the price of a stock divided by its historical earnings per share.

Price to book ratio compares the stock’s market value to the value of the total assets less the total liabilities.

Price to cash flow ratio is the price of a stock divided by its reported cash flow per share.

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.

Proxy Voting

Quarterly Disclosure of Portfolio Holdings

Performance at a Glance


Total Return for the Report Period


Laudus Rosenberg International Equity Fund

Investor Shares (Ticker Symbol: RIEIX)		-23.10%
Select Shares (Ticker Symbol: REQIX)		-22.95%
Benchmark: MSCI EAFE Index		-22.03%

Performance Details		pages 6-7



Laudus Rosenberg International Discovery Fund

Investor Shares (Ticker Symbol: LIDIX)		-23.45%
Select Shares (Ticker Symbol: LIDSX)¹		-23.39%
Benchmark: S&P/Citigroup Global ex US BMI $2-10 Billion Cap Range		-26.10%

Performance Details		pages 8-9



Laudus Rosenberg International Small Capitalization Fund

Investor Shares (Ticker Symbol: RISIX)		-23.66%
Select Shares (Ticker Symbol: ICSIX)		-23.51%
Benchmark: S&P/Citigroup World ex US EMI		-26.17%

Performance Details		pages 10-11



Minimum Initial Investment²

Investor Shares		$ 100
Select Shares		$ 50,000

Small-company stocks are subject to greater volatility than other asset categories. Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.


¹	The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed at 9/30/08. The total return presented in the financial highlights section of the report is calculated in the same manner, but also taking into account certain adjustments that are necessary under generally accepted accounting principles and which are required when preparing the semiannual report.
²	Please see prospectus for further detail and eligibility requirements.

2 Laudus Rosenberg International Equity Funds

From the President

Dear Shareholder,

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

Thank you for investing with us.

Sincerely,

Laudus Rosenberg International Equity Funds 3

The Investment Environment

4 Laudus Rosenberg International Equity Funds

The Investment Environment continued

Laudus Rosenberg International Equity Fund

The Laudus Rosenberg International Equity Fund Investor Shares returned -23.10% for the period, underperforming the benchmark MSCI EAFE Index, which returned -22.03%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Underperformance was primarily due to industry group weightings and stock selection.

On an industry group level, returns were negative across all groups. Relative to the benchmark an overweight to Materials and an underweight to Health Care negatively impacted returns. However, an underweight to Financials and an overweight to Energy helped to offset. Stock selection was good in Financials, but was mostly offset by selection in Materials.

In terms of market capitalization, returns were negative across all cap levels. On average, stock selection detracted from performance as did cap weightings. Selection in the $20-50 billion range led the detractors, followed by selection and weighting in the $100-150 billion range. In general, the fund and its benchmark are weighted toward companies with market caps between $10-100 billion.

From a Price to Earnings (P/E) perspective, stock selection and weighting both detracted. Selection in and weighting toward companies with P/E ratios between 0-12.5 was the most significant detractor followed by selection in companies with ratios between 17.5 and 25. In general, returns were negative across all P/E ratios and in many cases were down around 20% overall.

When looking at Price to Book (P/B) ratios, returns across all ratios were negative. Stock selection amongst companies with P/B ratios of 1.50-2.25 led the detractors followed by selection in companies with P/B ratios of 2.25-3.00. The effect of weightings across P/B ratios was slightly negative overall.

From a regional perspective, stock selection in Europe led the detracting factors. Returns across all regions represented in the fund were negative. Africa & the Middle East was the most negative; however, the fund and benchmark have little exposure in this region.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	383

Avg. Market Capitalization


($Wtd. x 1,000,000)	$43,735

Portfolio Turnover


(One year trailing)	105%


Price to Earnings (P/E)	8.92


Price/Book Ratio (P/B)	1.28


Price to Cash Flow	8.08


Beta	0.94


Return on Equity	15.45%

Five-Year Earnings


Growth	15%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	12/5/2000	6/7/2000
Total Net Assets ($ x 1,000)	$15,633	$68,205
Ticker Symbol	RIEIX	REQIX
Cusip	51855Q812	51855Q507
NAV	$8.92	$8.93

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		Since Inception


Investor (12/5/00)		-23.10%		-32.14%		7.77%		2.38%
Select (6/7/00)		-22.95%		-31.92%		8.14%		1.24%
Benchmark: MSCI EAFE Index^®*		-22.03%		-30.13%		10.16%		(12/5/00) 3.29%
								(6/7/00) 1.50%

Fund Expense Ratios²: Investor Shares: Net 1.40%; Gross 1.69% / Select Shares: Net 1.12%; Gross 1.23%

Country Weightings % of Investments³


Japan	22.5%


United Kingdom	19.7%


France	11.5%


Germany	8.5%


Switzerland	6.1%


Italy	5.9%


Australia	5.8%


Spain	4.9%


Netherlands	3.0%


Hong Kong	2.5%


Sweden	1.6%


Belgium	1.5%


Other Countries	6.5%


Total	100.0%

Sector Weightings % of Investments³


Financials	23.0%


Materials	16.8%


Industrials	12.7%


Energy	12.6%


Telecommunication Services	8.6%


Consumer Discretionary	7.1%


Utilities	6.4%


Health Care	4.6%


Information Technology	4.3%


Consumer Staples	3.9%


Total	100.0%

Top Equity Holdings % of Net Assets³


Total S.A.	2.5%


France Telecom S.A.	2.5%


Sanofi-Aventis	2.4%


Zurich Financial Services AG - Reg’d	2.4%


BASF SE	2.3%


Vodafone Group plc	2.3%


HSBC Holdings plc	1.9%


BAE Systems plc	1.8%


Eni S.p.A.	1.8%


AstraZeneca plc	1.8%


Total	21.7%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.


*	The Morgan Stanley Capital International Europe, Australasia, Far East Index (MSCI EAFE Index^®) is a free float-adjusted market capitalization index that is designed to measure market equity performance in 22 developed market countries, excluding the U.S. and Canada. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg International Equity Funds 7

Laudus Rosenberg International Discovery Fund

The Laudus Rosenberg International Discovery Fund Investor Shares returned -23.45% for the period, outperforming the benchmark S&P/Citigroup Global ex U.S. Broad Market Index, which returned -26.10%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Outperformance was primarily due to good stock selection.

On an industry group level, returns across all groups were negative and in most cases down more than 15%. The Health Care industry declined the least of industry groups represented in the fund, and is usually seen as a more defensive investment position. However, the fund and benchmark are not weighted toward Health Care. Stock selection was particularly good in Financials followed by Materials. Selection in Telecomm Services led partially offsetting groups.

In terms of market capitalization, returns were negative across all cap levels, particularly in companies larger than $7.5 billion. Stock selection in companies with market caps between $3-5 billion and $750 million to $1.5 billion benefitted the fund. The effect of weightings was neutral to slightly negative. In general, the fund and the benchmark were weighted toward companies with market caps less than $3 billion.

From a Price to Earnings (P/E) perspective, the fund benefitted from stock selection across all P/E ratios. Selection amongst companies with P/E ratios of 0-12.5 and those with negative P/Es contributed to outperformance relative to the benchmark. The effect of weightings across P/E ratios was neutral to slightly negative.

When looking at Price to Book (P/B) ratios, stock selection and weightings contributed to outperformance. The most significant contributing factor was good stock selection in and an overweight to companies with P/B ratios of 1.25 and below.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	608

Avg. Market Capitalization


($Wtd. x 1,000,000)	$4,174

Portfolio Turnover


(One year trailing)	141%


Price to Earnings (P/E)	10.83


Price/Book Ratio (P/B)	1.12


Price to Cash Flow	6.37


Beta	0.94


Return on Equity	11.48%

Five-Year Earnings


Growth	16%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	5/31/2006	5/31/2006
Total Net Assets ($ x 1,000)	$92,512	$224,271
Ticker Symbol	LIDIX	LIDSX
Cusip	51855Q697	51855Q689
NAV	$8.75	$8.79


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

8 Laudus Rosenberg International Equity Funds

Laudus Rosenberg International Discovery Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		Since Inception


Investor (5/31/06)		-23.45%		-31.10%		-3.22%
Select (5/31/06)**		-23.39%		-30.95%		-2.95%
Benchmark: S&P/Citigroup Global ex US BMI $2-10 Billion Cap Range*		-26.10%		-33.83%		-3.66%

Fund Expense Ratios²: Investor Shares: Net 1.65%; Gross 1.81% / Select Shares: Net 1.35%; Gross 1.54%

Country Weightings % of Investments³


Japan	21.6%


United Kingdom	8.3%


Canada	7.1%


Australia	6.2%


Republic of Korea	4.3%


France	3.5%


Taiwan	3.4%


Hong Kong	3.3%


Switzerland	3.1%


Sweden	3.0%


Germany	2.9%


Italy	2.8%


South Africa	2.6%


Brazil	2.4%


Finland	2.0%


China	2.0%


India	1.9%


Belgium	1.9%


Mexico	1.5%


Singapore	1.5%


Spain	1.5%


Netherlands	1.4%


Other Countries	11.8%


Total	100.0%

Sector Weightings % of Investments³


Financials	20.0%


Industrials	17.5%


Materials	17.3%


Consumer Discretionary	10.5%


Consumer Staples	9.9%


Information Technology	6.6%


Energy	6.3%


Utilities	5.5%


Telecommunication Services	4.4%


Health Care	1.8%


Other	0.2%


Total	100.0%

Top Equity Holdings % of Net Assets³


Santos Ltd.	0.9%


Shiseido Co., Ltd.	0.7%


West Japan Railway Co.	0.7%


Chuo Mitsui Trust Holdings, Inc.	0.7%


Agrium, Inc.	0.6%


The Bank of Kyoto, Inc.	0.6%


Fukuoka Financial Group, Inc.	0.6%


AGL Energy Ltd.	0.6%


OMRON Corp.	0.5%


National Bank of Canada	0.5%


Total	6.4%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.


*	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. Investors cannot invest directly in any index and index figures do not include trading and management costs.

The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed at 9/30/08. The total return presented in the financial highlights section of the report is calculated in the same manner, but also taking into account certain adjustments that are necessary under generally accepted accounting principles and which are required when preparing the semiannual report.


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.
²	Net Expenses. Reflects expenses expected to be charged to shareholders through at least 7/30/10. Adviser expects to hold expenses at this level by waiving its management fees and/or bearing other expenses. Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg International Equity Funds 9

Laudus Rosenberg International Small Capitalization Fund

The Laudus Rosenberg International Small Capitalization Fund Investor Shares returned -23.66% for the period, outperforming the benchmark S&P/Citigroup Global ex U.S. Extended Market Index, which returned -26.17%. Negative returns in the fund were primarily the result of broad-based economic turmoil and volatility stemming from tightened credit amidst investors divesting away from securitized assets tied to the residential housing market. As a result of these and other factors, returns across the majority of industry groups represented in the fund were negative. Outperformance was primarily due to stock selection, spread across Europe, Asia Pacific and North America.

In terms of industry groups, returns across all major groups represented in the fund were negative. Stock selection was particularly good in the Materials industry relative to the benchmark, but was slightly offset by an overweight to this group where stocks held in the fund lost more than 25% on average. Utilities was the best performer with stocks off around 4% overall. In general, the fund was weighted toward Materials and Industrials.

From a market capitalization perspective, stock selection benefitted the fund across capitalization levels, except in the $3 – 7.5 billion range where it detracted slightly. On the balance, the effect of weightings among cap levels benefitted the fund.

In terms of Price to Earnings (P/E), stock selection helped the fund and was particularly good relative to the benchmark amongst companies with negative P/E ratios and amongst companies with ratios between 0-12.5. However, the fund’s overweight to companies in the 0-12.5 range somewhat reduced the gain from stock selection as returns were down about 25% on average. In general, the fund was weighted toward stocks with P/E ratios below 25.

When looking at Price to Book (P/B) ratios, returns were down more than 20% across all ratios. Stock selection and weighting toward companies with P/B ratios of 1.25 and below benefitted the fund. In general, the fund was weighted toward companies with lower P/B ratios, while the index was more evenly distributed.

As of 9/30/08:

Fund Characteristics¹


Number of Securities	893

Avg. Market Capitalization


($Wtd. x 1,000,000)	$2,639

Portfolio Turnover


(One year trailing)	74%


Price to Earnings (P/E)	10.04


Price/Book Ratio (P/B)	0.90


Price to Cash Flow	2.02


Beta	0.95


Return on Equity	8.87%

Five-Year Earnings


Growth	20%

Fund Overview¹


	Investor Shares	Select Shares


Initial Investment	$100	$50,000
Inception Date	10/29/1996	9/23/1996
Total Net Assets ($ x 1,000)	$321,341	$404,198
Ticker Symbol	RISIX	ICSIX
Cusip	51855Q796	51855Q606
NAV	$12.78	$12.98


¹	Portfolio holdings are subject to change and may not represent current or future holdings.

10 Laudus Rosenberg International Equity Funds

Laudus Rosenberg International Small Capitalization Fund

Performance Summary as of 9/30/08

Performance of a Hypothetical
$10,000 Investment in Investor Shares¹

Performance of a Hypothetical
$50,000 Investment in Select Shares¹

Average Annual Total Returns¹


Class and Inception Date	6 Months		1 Year		5 Years		10 Years


Investor (10/29/96)		-23.66%		-33.66%		11.22%		11.03%
Select (9/23/96)		-23.51%		-33.43%		11.60%		11.39%
Benchmark: S&P/Citigroup World ex US EMI*		-26.17%		-34.48%		11.63%		8.49%

Fund Expense Ratios²: Investor Shares: 1.45% / Select Shares: Net 1.09%

Country Weightings % of Investments³


Japan	18.7%


United Kingdom	15.1%


Switzerland	10.9%


Germany	9.0%


France	8.6%


Canada	7.1%


Australia	4.2%


Italy	3.6%


Republic of Korea	3.6%


Netherlands	3.1%


Spain	2.9%


Belgium	2.7%


Hong Kong	2.6%


Sweden	2.0%


Other Countries	5.9%


Total	100.0%

Sector Weightings % of Investments³


Industrials	25.1%


Materials	20.6%


Financials	15.3%


Consumer Discretionary	11.4%


Infornation Technology	11.0%


Consumer Staples	5.2%


Energy	4.9%


Utilities	3.0%


Telecommunication Services	2.0%


Health Care	1.5%


Total	100.0%

Top Equity Holdings % of Net Assets³


Koninklijke DSM N.V.	2.1%


K&S AG	1.7%


Baloise Holding AG -Reg’d	1.4%


Addecco S.A. - Reg’d	1.4%


Cap Gemini S.A.	1.4%


Thales S.A.	1.3%


Liberty International plc	1.3%


Hammerson plc	1.3%


FirstGroup plc	1.2%


Saltzgitter AG	1.1%


Total	14.2%

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.


*	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. Investors cannot invest directly in any index and index figures do not include trading and management costs.


¹	Total returns include change in share price and reinvestment of distributions. Total returns may reflect the waiver of a portion of a fund’s advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
²	Gross Expenses. Reflects the total annual fund operating expenses without the effect of contractual fee waivers. Please see the prospectus for more information. For actual rates during the period, refer to the financial highlights section of the financial statements.
³	Portfolio holdings are subject to change and may not represent current or future holdings.

Laudus Rosenberg International Equity Funds 11

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 4/1/08		at 9/30/08		4/1/08 - 9/30/08



Laudus Rosenberg International Equity Fund
Investor Shares
Actual Return		1.40%	$	1,000	$	769.00	$	6.21
Hypothetical 5% Return		1.40%	$	1,000	$	1,018.05	$	7.08
Select Shares
Actual Return		1.12%	$	1,000	$	770.50	$	4.97
Hypothetical 5% Return		1.12%	$	1,000	$	1,019.45	$	5.67


Laudus Rosenberg International Discovery Fund
Investor Shares
Actual Return		1.65%	$	1,000	$	765.50	$	7.30
Hypothetical 5% Return		1.65%	$	1,000	$	1,016.80	$	8.34
Select Shares
Actual Return		1.35%	$	1,000	$	767.70	$	5.98
Hypothetical 5% Return		1.35%	$	1,000	$	1,018.30	$	6.83


Laudus Rosenberg International Small Capitalization Fund
Investor Shares
Actual Return		1.46%	$	1,000	$	763.40	$	6.45
Hypothetical 5% Return		1.46%	$	1,000	$	1,017.75	$	7.38
Select Shares
Actual Return		1.11%	$	1,000	$	764.90	$	4.91
Hypothetical 5% Return		1.11%	$	1,000	$	1,019.50	$	5.62


¹	Based on the most recent six-month expense ratio; may differ from the expense ratio provide in Financial Highlights.

²	Expenses for each fund or share class are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 days of the period, and divided by 365 days of the fiscal year.

12 Laudus Rosenberg International Equity Funds

Laudus Rosenberg International Equity Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		11.60			13.54			11.77			9.61			8.47			5.57

Income (loss) from investment operations:
Net investment income (loss)		0.20			0.55			0.14			0.10			0.06	¹		0.03	¹
Net realized and unrealized gains (losses)		(2.88	)		(1.33	)		1.97			2.14			1.11			2.93

Total from investment operations		(2.68	)		(0.78	)		2.11			2.24			1.17			2.96
Less distributions:
Distributions from net investment income		—			(0.21	)		(0.09	)		(0.08	)		(0.03	)		(0.08	)
Distributions from net realized gains		—			(0.95	)		(0.25	)		—			—			—

Total distributions		—			(1.16	)		(0.34	)		(0.08	)		(0.03	)		(0.08	)

Redemption fees		—			-	²		-	²		—			-	²		0.02

Net asset value at end of period		8.92			11.60			13.54			11.77			9.61			8.47

Total return (%)		(23.10	)³		(6.21	)		18.08			23.41			13.79			53.61

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.40	⁴		1.61			1.64			1.72			1.72			1.59
Gross operating expenses		1.54	⁴		1.69			1.71			2.33			2.96			4.46
Net investment income (loss)		3.36	⁴		1.97			1.17			1.02			0.65			0.45
Portfolio turnover rate		61	³		83			64			59			52			107
Net assets, end of period ($ x 1,000)		15,633			19,570			61,411			18,824			12,491			2,881


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,5**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		11.59			13.58			11.80			9.63			8.46			5.56

Income (loss) from investment operations:
Net investment income (loss)		0.21			0.18			0.07			0.14			0.09	¹		0.08	¹
Net realized and unrealized gains (losses)		(2.87	)		(0.92	)		2.08			2.15			1.12			2.90

Total from investment operations		(2.66	)		(0.74	)		2.15			2.29			1.21			2.98
Less distributions:
Distributions from net investment income		—			(0.30	)		(0.12	)		(0.12	)		(0.04	)		(0.08	)
Distributions from net realized gains		—			(0.95	)		(0.25	)		—			—			—

Total distributions		—			(1.25	)		(0.37	)		(0.12	)		(0.04	)		(0.08	)

Redemption fees		—			-	²		-	²		—			-	²		0.01

Net asset value at end of period		8.93			11.59			13.58			11.80			9.63			8.46

Total return (%)		(22.95	)³		(5.91	)		18.37			23.86			14.36			53.81

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.12	⁴		1.22			1.34			1.34			1.34			1.35
Gross operating expenses		1.17	⁴		1.23			1.34			1.96			2.69			4.32
Net investment income (loss)		3.68	⁴		1.46			1.09			1.34			0.96			1.12
Portfolio turnover rate		61	³		83			64			59			52			107
Net assets, end of period ($ x 1,000)		68,205			97,701			68,398			21,688			16,094			9,914

* Unaudited.

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

² Amount less than $0.005.

³ Not annualized.

⁴ Annualized.

⁵ Effective July 31, 2008, the Institutional Shares became Select Shares.

See financial notes 13

Laudus Rosenberg International Equity Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

Cost

Value

Holdings by Category

($)

.2%

Common Stock

101,648,432

83,135,667

.3%

Short-Term Investment

280,000

.5%

Total Investments

101,928,432

83,415,667

.5%

Other Assets and Liabilities

422,334

100

.0%

Net Assets

83,838,001


	Number		Value
Security	of Shares		($)





Common Stock 99.2% of net assets


Australia 5.8%


Banks 1.3%
Australia & New Zealand Banking Group Ltd.		16,300		251,822
Commonwealth Bank of Australia		10,600		373,583
National Australia Bank Ltd.		7,200		145,314
Westpac Banking Corp.		16,900		299,545

				1,070,264


Commercial & Professional Supplies 0.1%
Downer EDI Ltd.		8,300		42,288


Consumer Services 0.0%
Flight Centre Ltd.		400		6,178


Energy 0.7%
Origin Energy Ltd.		10,300		133,226
Santos Ltd.		11,700		179,025
Woodside Petroleum Ltd.		6,200		250,176

				562,427


Food & Staples Retailing 0.1%
Woolworths Ltd.		2,400		52,867


Food, Beverage & Tobacco 0.4%
Coca-Cola Amatil Ltd.		5,600		37,390
Foster’s Group Ltd.		54,900		245,282
Lion Nathan Ltd.		11,000		82,355

				365,027


Insurance 0.1%
AMP Ltd.		5,100		28,999
Insurance Australia Group Ltd.		5,300		17,592
QBE Insurance Group Ltd.		1,800		38,819

				85,410


Materials 2.3%
BHP Billiton Ltd.		37,500		970,148
Fortescue Metals Group Ltd. *		35,600		135,446
Incitec Pivot Ltd.		20,000		80,131
Mount Gibson Iron Ltd. *		23,400		31,173
Nufarm Ltd.		4,900		59,977
OM Holdings Ltd.		5,800		9,227
Orica Ltd.		11,700		197,593
Portman Ltd. *		9,962		168,079
Rio Tinto Ltd.		4,800		323,434

				1,975,208


Media 0.0%
Amalgamated Holdings Ltd.		1,575		6,207


Real Estate 0.4%
CFS Retail Property Trust		9,800		17,781
Dexus Property Group		14,100		16,586
Goodman Group		9,400		18,969
Westfield Group		18,800		257,521

				310,857


Telecommunication Services 0.4%
Telstra Corp., Ltd.		103,500		347,238

				4,823,971


Austria 0.8%


Energy 0.6%
OMV AG		10,712		451,512


Materials 0.2%
Voestalpine AG		5,792		180,990


Real Estate 0.0%
Immofinanz Immobilien Anlagen AG *		1,432		5,066

				637,568


Belgium 1.5%


Diversified Financials 0.0%
Banque Nationale de Belgique		3		11,605


Energy 0.1%
Euronav S.A.		1,849		51,124


Food & Staples Retailing 0.4%
Delhaize Group		5,700		331,080


Materials 1.0%
Solvay S.A.		4,600		564,649
Umicore		8,357		258,081

				822,730

				1,216,539


Denmark 1.1%


Transportation 1.1%
A P Moller - Maersk A/S, Series A		92		793,594
D/S Norden A/S		2,193		105,593

				899,187


Finland 1.2%


Capital Goods 0.5%
Metso Corp. Oyj		8,402		206,070

14 See financial notes

Laudus Rosenberg International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Wartsila Corp. Oyj		5,620		236,762

				442,832


Materials 0.7%
Outokumpu Oyj		8,405		133,910
Rautaruukki Oyj		2,185		43,668
UPM-Kymmene Oyj		23,950		373,676

				551,254

				994,086


France 11.4%


Automobiles & Components 0.7%
PSA Peugeot Citroen		11,400		429,052
Valeo S.A.		3,782		114,450

				543,502


Banks 0.8%
BNP Paribas		4,986		475,951
Societe Generale		2,543		228,437

				704,388


Capital Goods 0.9%
Nexans S.A.		416		37,007
Schneider Electric S.A.		5,700		489,485
Thales S.A.		5,211		262,972

				789,464


Commercial & Professional Supplies 0.0%
Suez Environnement S.A. *		611		15,044


Consumer Durables & Apparel 0.2%
Christian Dior S.A.		1,967		149,182


Energy 2.5%
Total S.A.		35,044		2,128,920


Insurance 0.3%
CNP Assurances		1,800		203,310


Materials 0.3%
Arkema		3,000		110,752
Eramet		400		153,240

				263,992


Pharmaceuticals & Biotechnology 2.4%
Sanofi-Aventis		30,481		2,003,989


Software & Services 0.6%
Atos Origin S.A.		2,678		117,855
Cap Gemini S.A.		8,400		396,823

				514,678


Telecommunication Services 2.5%
France Telecom S.A.		75,086		2,106,133


Utilities 0.2%
GDF Suez		2,331		121,273

				9,543,875


Germany 8.4%


Capital Goods 0.2%
Bilfinger Berger AG		714		37,190
KSB AG		41		22,133
Tognum AG		7,048		141,193

				200,516


Diversified Financials 0.2%
Deutsche Bank AG - Reg’d		2,984		213,466


Household & Personal Products 0.2%
Henkel AG & Co. KGaA		6,843		209,874


Insurance 0.5%
Allianz SE - Reg’d		2,848		390,456


Materials 4.4%
Altana AG		2,853		42,273
BASF SE		40,676		1,939,288
K & S AG		8,872		615,150
Lanxess		4,500		123,931
Salzgitter AG		2,790		282,140
ThyssenKrupp AG		21,645		649,868

				3,652,650


Telecommunication Services 0.6%
Deutsche Telekom AG - Reg’d		32,295		490,471


Transportation 1.3%
Deutsche Post AG - Reg’d		51,117		1,066,531


Utilities 1.0%
RWE AG		8,698		829,238

				7,053,202


Greece 0.1%


Utilities 0.1%
Public Power Corp. S.A.		7,800		120,333


Hong Kong 2.5%


Banks 0.7%
BOC Hong Kong (Holdings) Ltd.		80,000		143,021
Hang Seng Bank Ltd.		22,800		431,014

				574,035


Capital Goods 0.3%
Jardine Matheson Holdings Ltd.		400		10,450
Jardine Strategic Holdings Ltd.		9,000		127,994
Johnson Electric Holdings Ltd.		83,500		31,377
NWS Holdings Ltd.		25,000		44,859

				214,680


Consumer Durables & Apparel 0.1%
Yue Yuen Industrial (Holdings) Ltd.		21,000		57,365


Diversified Financials 0.0%
Allied Properties (H.K.) Ltd.		130,000		16,887


Food, Beverage & Tobacco 0.0%
First Pacific Co., Ltd.		16,000		8,466
Pacific Andes (Holdings) Ltd.		36,000		6,135
Vitasoy International Holdings Ltd.		8,000		3,501

				18,102


Real Estate 0.1%
Great Eagle Holdings Ltd.		14,000		31,135
Kowloon Development Co., Ltd.		28,000		25,074
Sinolink Worldwide Holdings Ltd.		288,000		27,765
Wheelock Properties Ltd.		5,000		2,599

				86,573

See financial notes 15

Laudus Rosenberg International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Retailing 0.2%
Esprit Holdings Ltd.		23,500		145,666
Wing On Co. International Ltd.		24,000		33,542

				179,208


Technology Hardware & Equipment 0.1%
Foxconn International Holdings Ltd. *		47,000		21,024
VTech Holdings Ltd.		7,000		40,942

				61,966


Transportation 0.2%
Hopewell Highway Infrastructure Ltd.		76,500		53,233
Orient Overseas International Ltd.		12,000		30,740
Pacific Basin Shipping Ltd.		96,000		79,815
Transport International Holdings Ltd.		2,800		7,818

				171,606


Utilities 0.8%
CLP Holdings Ltd.		45,500		367,037
Hongkong Electric Holdings Ltd.		49,500		310,908

				677,945

				2,058,367


Ireland 0.1%


Insurance 0.1%
Irish Life & Permanent plc		16,092		112,956


Italy 5.9%


Automobiles & Components 0.1%
Pirelli & C. S.p.A.		199,309		117,597


Banks 1.4%
Banco Popolare Societa Cooperativa		37,561		583,489
Intesa Sanpaolo S.p.A.		43,170		237,417
UniCredit S.p.A.		59,399		222,113
Unione di Banche Italiane S.c.p.A.		7,809		171,070

				1,214,089


Capital Goods 0.1%
Danieli S.p.A. - Officine Meccaniche Danieli & C.		1,918		42,222


Energy 1.8%
Eni S.p.A.		57,600		1,526,749


Insurance 0.2%
Fondiaria - Sai S.p.A.		1,600		37,766
Unipol Gruppo Finanziario S.p.A.		80,712		173,196

				210,962


Materials 0.1%
Italcementi S.p.A.		4,558		56,459


Telecommunication Services 0.7%
Telecom Italia S.p.A.		367,549		547,014


Utilities 1.5%
Enel S.p.A.		142,187		1,186,932
Iride S.p.A.		15,770		34,810

				1,221,742

				4,936,834


Japan 22.3%


Automobiles & Components 3.7%
Bridgestone Corp.		21,600		408,921
Calsonic Kansei Corp.		1,000		2,868
Denso Corp.		14,100		345,842
Fuji Heavy Industries Ltd.		21,000		106,373
HI-LEX Corp.		100		1,068
Honda Motor Co., Ltd.		1,900		57,632
Mazda Motor Corp.		38,000		154,756
NHK Spring Co., Ltd.		2,000		11,092
Nissan Motors Co., Ltd.		76,900		519,981
Sumitomo Rubber Industries, Ltd.		9,500		84,635
Suzuki Motor Corp.		8,900		164,909
Takata Corp.		200		2,762
Topre Corp.		1,800		12,308
Toyota Industries Corp.		6,700		169,085
Toyota Motor Corp.		20,600		880,701
TS Tech Co., Ltd.		700		6,745
Unipres Corp.		1,200		11,969
Yamaha Motor Co., Ltd.		10,100		137,947

				3,079,594


Banks 2.8%
Chuo Mitsui Trust Holdings, Inc.		32,000		172,759
Fukuoka Financial Group, Inc.		30,000		110,400
Mitsubishi UFJ Financial Group, Inc.		132,300		1,153,689
Sapporo Hokuyo Holdings, Inc.		15		75,089
Sumitomo Mitsui Financial Group, Inc.		38		238,247
The Aichi Bank Ltd.		400		27,714
The Bank of Kyoto Ltd.		1,000		10,206
The Chiba Bank Ltd.		1,000		5,243
The Chiba Kogyo Bank Ltd. *		100		1,140
The Higashi-Nippon Bank Ltd.		6,000		16,348
The Higo Bank Ltd.		1,000		5,749
The Hokuetsu Bank Ltd.		1,000		2,068
The Hyakugo Bank Ltd.		10,000		56,680
The Hyakujushi Bank Ltd.		9,000		50,401
The Kagawa Bank Ltd.		3,000		14,056
The Mie Bank Ltd.		2,000		8,141
The Nishi-Nippon City Bank Ltd.		26,000		64,922
The San-in Godo Bank Ltd.		2,000		15,493
The Sumitomo Trust & Banking Co., Ltd.		44,000		293,147
The Yachiyo Bank Ltd.		5		10,998
Yamaguchi Financial Group, Inc.		1,000		12,204

				2,344,694


Capital Goods 2.1%
Aida Engineering Ltd.		1,000		4,147
Amada Co., Ltd.		16,000		87,869
Amano Corp.		100		801
Asahi Glass Co., Ltd.		18,000		158,231
Chudenko Corp.		1,800		27,055
Fuji Electric Holdings Co., Ltd.		32,000		77,298
Fuji Machine Manufacturing Co., Ltd.		2,100		25,462
Futaba Corp.		1,700		29,901
Hino Motors, Ltd.		7,000		28,303
Hitachi Construction Machinery Co., Ltd.		2,400		59,320

16 See financial notes

Laudus Rosenberg International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Itochu Corp.		9,000		54,217
JS Group Corp.		6,600		83,087
JTEKT Corp.		8,900		101,547
Kamei Corp.		2,000		7,728
Kanematsu Corp. *		3,000		2,903
Kubota Corp.		6,000		37,845
Maeda Corp.		6,000		18,637
Maeda Road Construction Co., Ltd.		4,000		25,877
Minebea Co., Ltd.		6,000		22,504
Mitsubishi Heavy Industries Ltd.		79,000		343,135
Nagase & Co., Ltd.		4,000		37,230
Nippo Corp.		4,000		22,577
Nippon Thompson Co., Ltd.		1,000		4,236
Nishimatsu Construction Co., Ltd.		11,000		25,323
Nitto Kogyo Corp.		1,500		11,053
Sintokogio Ltd.		100		628
Sojitz Corp.		54,100		125,388
Sumitomo Corp.		10,800		100,698
Sumitomo Electric Industries Ltd.		20,200		219,860
Takeuchi Mfg Co., Ltd.		500		6,588

				1,749,448


Consumer Durables & Apparel 0.8%
Hitachi Koki Co., Ltd.		3,100		31,612
Kurabo Industries Ltd.		9,000		15,810
Makita Corp.		2,300		47,117
Nikon Corp.		6,000		143,934
Panasonic Corp.		14,000		241,353
Roland Corp.		800		10,327
Sankyo Co., Ltd.		2,700		137,051
SRI Sports Ltd.		3		2,872
Tokyo Style Co., Ltd.		2,000		16,902

				646,978


Diversified Financials 0.1%
Hitachi Capital Corp.		3,300		40,183
SFCG Co., Ltd.		120		5,464
Takefuji Corp.		4,650		60,511

				106,158


Energy 0.6%
Inpex Holdings, Inc.		46		390,928
Japan Petroleum Exploration Co., Ltd.		1,900		97,532

				488,460


Food & Staples Retailing 0.4%
Aeon Co., Ltd.		22,000		224,770
Cawachi Ltd.		700		13,266
Heiwado Co., Ltd.		400		5,723
Uny Co., Ltd.		8,000		81,409

				325,168


Food, Beverage & Tobacco 1.2%
Asahi Breweries Ltd.		14,300		250,629
Japan Tobacco, Inc.		70		263,836
Kirin Holdings Co., Ltd.		28,000		367,893
Meiji Seika Kaisha Ltd.		11,000		50,288
Mikuni Coca-Cola Bottling Co., Ltd.		1,700		14,869
Q.P. Corp.		3,600		33,472

				980,987


Health Care Equipment & Services 0.0%
Hitachi Medical Corp.		2,000		16,257


Household & Personal Products 0.7%
Kao Corp.		14,000		375,445
Kose Corp.		1,500		41,740
Mandom Corp.		200		5,302
Shiseido Co., Ltd.		8,000		179,147

				601,634


Insurance 0.6%
Sompo Japan Insurance, Inc.		19,000		161,266
T&D Holdings, Inc.		7,150		377,674

				538,940


Materials 2.9%
Asahi Kasei Corp.		42,000		176,711
Denki Kagaku Kogyo Kabushiki Kaisha		20,000		52,616
DIC Corp.		37,000		70,075
Hitachi Chemical Co., Ltd.		6,700		89,910
JFE Holdings, Inc.		14,400		446,633
Kaneka Corp.		16,000		88,389
Kobe Steel Ltd.		117,000		235,437
Kuraray Co., Ltd.		13,500		134,193
Mitsubishi Chemical Holdings Corp.		38,500		203,501
Mitsubishi Gas Chemical Co., Inc.		17,000		82,216
Mitsubishi Materials Corp.		1,000		3,141
Mitsui Chemicals, Inc.		27,000		119,031
Nippon Steel Corp.		21,000		79,278
Nisshin Steel Co., Ltd.		43,000		83,181
Osaka Steel Co., Ltd.		1,300		16,895
Pacific Metals Co., Ltd.		3,000		21,751
Sakai Chemical Industry Co., Ltd.		3,000		8,121
Sumitomo Chemical Co., Ltd.		48,000		212,044
Teijin Ltd.		2,000		6,010
Tokuyama Corp.		11,000		63,824
Tosoh Corp.		28,000		82,624
Toyo Seikan Kaisha Ltd.		7,600		116,664
Yodogawa Steel Works Ltd.		7,000		31,369
Zeon Corp.		8,000		28,043

				2,451,657


Media 0.1%
Sky Perfect JSAT Holdings, Inc.		66		25,304
TV Asahi Corp.		17		23,796

				49,100


Pharmaceuticals & Biotechnology 0.1%
Dainippon Sumitomo Pharma Co., Ltd.		9,000		73,727
Torii Pharmaceutical Co., Ltd.		1,200		16,787

				90,514


Real Estate 0.0%
Leopalace21 Corp.		4,200		32,477


Retailing 0.1%
AOKl Holdings, Inc.		1,000		10,187
Aoyama Trading Co., Ltd.		2,500		33,405
AT-Group Co., Ltd.		2,000		17,342
Belluna Co., Ltd.		1,550		6,989
Nafco Co., Ltd.		200		2,720
Sazaby League, Ltd.		700		9,226

				79,869

See financial notes 17

Laudus Rosenberg International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Semiconductors & Semiconductor Equipment 0.2%
Rohm Co., Ltd.		2,600		143,009


Software & Services 0.0%
NEC Fielding Ltd.		100		954


Technology Hardware & Equipment 2.7%
Canon Electronics, Inc.		100		1,616
Fujitsu Ltd.		63,000		354,184
Furuno Electric Co., Ltd.		900		7,817
Hitachi Ltd.		88,000		594,086
Hitachi Maxell Ltd.		3,200		34,327
Japan Aviation Electronics Industry Ltd.		1,000		4,709
Mabuchi Motor Co., Ltd.		300		13,641
Murata Manufacturing Co., Ltd.		5,500		222,039
NEC Corp.		64,000		273,544
Nippon Electric Glass Co., Ltd.		3,000		27,175
OMRON Corp.		10,000		155,223
Riso Kagaku Corp.		1,000		11,630
Roland DG Corp.		200		3,683
Seiko Epson Corp.		6,800		158,138
Toshiba Corp.		91,000		396,875
Toshiba Tec Corp.		8,000		31,512

				2,290,199


Telecommunication Services 0.7%
Nippon Telegraph & Telephone Corp.		130		580,248


Transportation 1.7%
Central Japan Railway Co.		52		490,335
East Japan Railway Co.		31		231,187
Kawasaki Kisen Kaisha Ltd.		21,000		129,920
Keisei Electric Railway Co., Ltd.		13,000		71,574
Mitsui O.S.K. Lines Ltd.		1,000		8,688
Nippon Yusen Kabushiki Kaisha		32,000		208,596
Seino Holdings Co., Ltd.		5,000		23,582
West Japan Railway Co.		54		231,254

				1,395,136


Utilities 0.8%
Chubu Electric Power Co., Inc.		4,400		103,676
Hokkaido Electric Power Co., Inc.		9,300		194,187
Kyushu Electric Power Co., Inc.		1,600		33,351
The Kansai Electric Power Co., Inc.		6,000		133,491
Tohoku Electric Power Co., Inc.		10,900		234,290

				698,995

				18,690,476


Luxembourg 0.1%


Household & Personal Products 0.1%
Oriflame Cosmetics S.A. SDR		982		45,492


Telecommunication Services 0.0%
COLT Telecom Group S.A. *		15,897		28,750

				74,242


Mauritius 0.0%


Food, Beverage & Tobacco 0.0%
Golden Agri-Resources Ltd.		83,000		18,506


Netherlands 3.0%


Diversified Financials 1.0%
ING Groep N.V. CVA		39,246		841,347


Food, Beverage & Tobacco 0.1%
Nutreco Holding N.V.		1,595		75,081


Materials 1.4%
Akzo Nobel N.V.		15,429		740,727
Koninklijke DSM N.V.		9,133		431,987

				1,172,714


Semiconductors & Semiconductor Equipment 0.3%
STMicroelectronics N.V.		21,212		214,873


Technology Hardware & Equipment 0.1%
Gemalto N.V. *		3,216		116,018


Transportation 0.1%
TNT N.V.		4,211		116,673

				2,536,706


New Zealand 0.0%


Materials 0.0%
Nuplex Industries Ltd.		1,900		7,548


Utilities 0.0%
Vector Ltd.		22,800		32,202

				39,750


Norway 0.8%


Energy 0.8%
StatoilHydro A.S.A.		27,867		662,213


Papua New Guinea 0.0%


Energy 0.0%
Oil Search Ltd.		6,500		29,089


Portugal 0.6%


Utilities 0.6%
EDP - Energias de Portugal S.A.		118,638		497,903


Singapore 1.4%


Banks 0.3%
Oversea-Chinese Banking Corp., Ltd.		12,000		60,588
United Overseas Bank Ltd.		18,000		215,187

				275,775


Capital Goods 0.6%
Fraser & Neave Ltd.		1,000		2,508
Haw Par Corp., Ltd.		4,000		13,062
Hong Leong Asia Ltd.		11,000		7,213
Keppel Corp., Ltd.		37,000		204,455
Noble Group Ltd.		48,000		45,679
SembCorp Industries Ltd.		24,000		54,982
Singapore Technologies Engineering Ltd.		81,000		153,819

				481,718

18 See financial notes

Laudus Rosenberg International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Diversified Financials 0.0%
UOB-Kay Hian Holdings Ltd.		40,000		35,160


Materials 0.0%
NatSteel Group Ltd.		15,000		13,042


Retailing 0.2%
Jardine Cycle & Carriage Ltd.		11,000		120,999
Metro Holdings Ltd.		6,000		2,096

				123,095


Technology Hardware & Equipment 0.0%
Venture Corp., Ltd.		3,000		16,322


Transportation 0.3%
ComfortDelGro Corp., Ltd.		27,000		28,424
Neptune Orient Lines Ltd.		5,000		6,377
Singapore Airlines Ltd.		20,540		206,342

				241,143

				1,186,255


Spain 4.9%


Banks 2.1%
Banco Bilbao Vizcaya Argentaria S.A.		23,031		372,428
Banco Espanol de Credito S.A.		654		8,907
Banco Santander S.A.		92,870		1,392,522

				1,773,857


Energy 1.8%
Repsol YPF S.A.		49,200		1,458,087


Telecommunication Services 1.0%
Telefonica S.A.		35,003		832,286

				4,064,230


Sweden 1.6%


Banks 0.6%
Nordea Bank AB		41,060		490,213


Capital Goods 0.6%
AB SKF, B Shares		17,700		226,124
Saab AB, Class B		6,246		96,203
Skanska AB, B Shares		18,422		209,683

				532,010


Health Care Equipment & Services 0.0%
Elekta AB, Class B		1,671		28,528


Materials 0.1%
SSAB Svenskt Stal AB, A Shares		260		4,134
SSAB Svenskt Stal AB, B Shares		1,821		25,159
Svenska Cellulosa AB (SCA), B Shares		3,031		32,109

				61,402


Telecommunication Services 0.3%
Tele2 AB, B Shares		22,000		251,071

				1,363,224


Switzerland 6.0%


Capital Goods 0.2%
Bucher Industries AG - Reg’d		614		82,473
Sulzer AG - Reg’d		844		89,799

				172,272


Commercial & Professional Supplies 0.5%
Adecco S.A. - Reg’d		8,700		377,941


Diversified Financials 0.6%
Credit Suisse Group AG - Reg’d		5,733		267,742
UBS AG - Reg’d *		15,963		272,847

				540,589


Insurance 3.1%
Baloise Holding AG - Reg’d		1,914		130,678
Helvetia Holding AG		479		120,075
Swiss Life Holding - Reg’d *		2,442		354,542
Zurich Financial Services AG - Reg’d		7,210		1,996,597

				2,601,892


Materials 1.6%
Clariant AG - Reg’d *		12,302		119,800
Schmolz & Bickenbach AG - Reg’d		953		37,021
Syngenta AG - Reg’d		5,645		1,190,440

				1,347,261


Transportation 0.0%
Swissair Group *(a)(b)(c)		30		—


Utilities 0.0%
Elektrizitaets-Gesellschaft Laufenburg AG		3		3,336

				5,043,291


United Kingdom 19.5%


Banks 2.8%
Barclays plc		51,091		303,554
HSBC Holdings plc		98,147		1,587,848
Royal Bank of Scotland Group plc		96,564		311,508
Standard Chartered plc		7,904		194,482

				2,397,392


Capital Goods 1.9%
BAE Systems plc		207,394		1,528,894
Balfour Beatty plc		515		2,798
Cookson Group plc		1,696		14,280
Qinetiq plc		16,928		62,970

				1,608,942


Consumer Services 0.0%
Millennium & Copthorne Hotels plc		2,014		8,844


Energy 3.7%
BP plc		111,262		926,622
Royal Dutch Shell plc, Class A		42,000		1,237,412
Royal Dutch Shell plc, Class B		32,400		910,208

				3,074,242


Food, Beverage & Tobacco 0.3%
British American Tobacco plc		4,418		144,236
Tate & Lyle plc		15,435		106,038

				250,274

See financial notes 19

Laudus Rosenberg International Equity Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Insurance 1.4%
Jardine Lloyd Thompson Group plc		1,150		9,176
Legal & General Group plc		373,056		673,266
Old Mutual plc		338,940		474,421

				1,156,863


Materials 1.7%
Anglo American plc		1,385		46,785
Eurasian Natural Resources Corp.		26,198		238,561
Kazakhmys plc		6,500		68,262
Mondi plc		7,630		35,610
Xstrata plc		33,238		1,035,849

				1,425,067


Media 0.8%
Aegis Group plc		10,708		17,943
WPP Group plc		77,000		622,819

				640,762


Pharmaceuticals & Biotechnology 1.8%
AstraZeneca plc		34,501		1,509,746


Real Estate 0.9%
Hammerson plc		4,874		85,928
Land Securities Group plc		12,997		293,544
Liberty International plc		17,400		300,876
Segro plc		12,953		97,660

				778,008


Retailing 0.3%
Home Retail Group plc		58,719		247,458


Software & Services 0.2%
Logica plc		88,483		173,119


Technology Hardware & Equipment 0.1%
Spectris plc		4,625		55,310


Telecommunication Services 2.3%
Vodafone Group plc		877,321		1,937,502


Utilities 1.3%
Centrica plc		107,027		602,215
United Utilities Group plc		41,918		520,201

				1,122,416

				16,385,945


United States 0.2%


Health Care Equipment & Services 0.2%
Synthes, Inc.		1,062		146,919

Total Common Stock (Cost $101,648,432)				83,135,667



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


Short-Term Investment 0.3% of net assets


Repurchase Agreement 0.3%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.20%, with a maturity value of $280,009 (fully collateralized by Federal National Mortgage Association with a value of $290,875.)		280,000		280,000

Total Short-Term Investments (Cost $280,000)				280,000


End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $102,352,536 and the unrealized appreciation and depreciation were $1,165,590 and ($20,102,459), respectively, with a net unrealized depreciation of ($18,936,869).

At 09/30/08, the prices of certain foreign securities held by the fund aggregating $82,443,069 were adjusted from their closing market prices following the guidelines adopted by the fund’s Board of Trustees.


*		Non-income producing security.
(a)		Bankrupt security/delisted.
(b)		Fair-valued by Management.
(c)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.

CVA — Dutch Certificate

Reg’d — Registered

SDR — Special drawing rights

Laudus Rosenberg International Equity Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $101,928,432)		$83,415,667
Cash		573
Foreign currency (cost $794,652)		768,734
Receivables:
Investments sold		898,592
Dividends		261,470
Foreign tax reclaims		71,939
Fund shares sold		19,228
Interest		9
Prepaid expenses	+	6,935


Total assets		85,443,147


Liabilities
Payables:
Investments bought		1,383,887
Investment adviser		4,904
Fund shares redeemed		149,664
Distribution and shareholder services fees		8,058
Accrued expenses	+	58,633


Total liabilities		1,605,146


Net Assets
Total assets		85,443,147
Total liabilities	−	1,605,146


Net assets		$83,838,001
Net Assets by Source
Capital received from investors		104,822,711
Net investment income not yet distributed		2,150,940
Net realized capital losses		(4,611,222	)
Net unrealized capital losses		(18,524,428	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$15,632,807		1,752,249			$8.92
Select Shares	$68,205,194		7,638,732			$8.93

See financial notes 21

Laudus Rosenberg International Equity Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends (net of foreign withholding taxes of $301,371)		$2,742,378
Interest	+	8,429


Total Investment Income		2,750,807


Net Realized Gains and Losses
Net realized losses on investments		(2,782,627	)
Net realized losses on foreign currency transactions	+	(25,864	)


Net realized losses		(2,808,491	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(25,206,004	)
Net unrealized losses on foreign currency translations	+	(15,226	)


Net unrealized losses		(25,221,230	)


Expenses
Investment adviser fees		487,579
Custodian fees		72,902
Accounting and administration fees		45,381
Distribution and shareholder services fees (Investor Shares)		28,098
Professional fees		23,709
Sub-Accounting fees (Investor Shares)		13,018
Transfer agent fees		12,651
Shareholder reports		9,819
Registration fees		7,770
Trustees’ fees		3,556
Interest expense		2,451
Other expenses	+	5,047


Total expenses		711,981
Expense reduction by adviser	−	36,497
Custody credits	−	15


Net expenses		675,469


Increase (Decrease) in Net Assets from Operations
Total investment income		2,750,807
Net expenses	−	675,469


Net investment income		2,075,338
Net realized losses		(2,808,491	)
Net unrealized losses	+	(25,221,230	)


Decrease in net assets from operations		($25,954,383	)

22 See financial notes

Laudus Rosenberg International Equity Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$2,075,338			$2,152,001
Net realized gains (losses)			(2,808,491	)		3,091,259
Net unrealized losses	+		(25,221,230	)		(12,929,808	)


Decrease in net assets from operations			(25,954,383	)		(7,686,548	)


Distributions to Shareholders¹
Distributions from net investment income
Investor Shares			-			(361,620	)
Select Shares	+		-			(2,381,553	)


Total distributions from net investment income			-			(2,743,173	)


Distributions from net realized gains
Investor Shares			—			(1,666,605	)
Select Shares	+		—			(7,587,962	)


Total distributions from net realized gains			—			(9,254,567	)

Total distributions			$-			($11,997,740	)

Transactions in Fund Shares¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			699,192			$8,324,129			449,393			$6,229,865
Select Shares	+		178,553			2,061,328			4,161,569			55,041,800


Total shares sold			877,745			$10,385,457			4,610,962			$61,271,665


Shares Reinvested
Investor Shares			-			$-			149,983			$1,834,295
Select Shares	+		-			-			474,171			5,789,629


Total shares reinvested			-			$-			624,154			$7,623,924


Shares Redeemed
Investor Shares			(633,974	)		($6,943,669	)		(3,447,172	)		($45,082,165	)
Select Shares	+		(967,268	)		(10,920,629	)		(1,244,671	)		(16,666,965	)


Total shares redeemed			(1,601,242	)		($17,864,298	)		(4,691,843	)		($61,749,130	)

Net transactions in fund shares			(723,497	)		($7,478,841	)		543,273			$7,146,459


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			10,114,478			$117,271,225			9,571,205			$129,809,054
Total increase or decrease	+		(723,497	)		(33,433,224	)		543,273			(12,537,829	)


End of period			9,390,981			$83,838,001			10,114,478			$117,271,225


Net investment income not yet distributed						$2,150,940						$75,602


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

See financial notes 23

Laudus Rosenberg International Discovery Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			5/31/06¹-
Investor Shares	9/30/08*			3/31/08			3/31/07


Per—Share Data ($)

Net asset value at beginning of period		11.43			12.04			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.14	²		0.11	²		0.06	²
Net realized and unrealized gains (losses)		(2.82	)		(0.16	)		2.06

Total from investment operations		(2.68	)		(0.05	)		2.12
Less distributions:
Distributions from net investment income		—			(0.10	)		(0.06	)
Distributions from net realized gains		—			(0.46	)		(0.02	)

Total distributions		—			(0.56	)		(0.08	)

Net asset value at end of period		8.75			11.43			12.04

Total return (%)		(23.45	)³		(0.51	)		21.62	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.65	⁴		1.65			1.64	⁴
Gross operating expenses		1.74	⁴		1.81			2.03	⁴
Net investment income (loss)		2.51	⁴		0.89			0.75	⁴
Portfolio turnover rate		62	³		147			106	³
Net assets, end of period ($ x 1,000)		92,512			121,930			51,572


	4/1/08-			4/1/07-			5/31/06¹-
Select Shares	*9/30/08^,5**			3/31/08			3/31/07


Per—Share Data ($)

Net asset value at beginning of period		11.45			12.05			10.00

Income (loss) from investment operations:
Net investment income (loss)		0.16	²		0.14	²		0.09	²
Net realized and unrealized gains (losses)		(2.82	)		(0.16	)		2.06

Total from investment operations		(2.66	)		(0.02	)		2.15
Less distributions:
Distributions from net investment income		—			(0.12	)		(0.08	)
Distributions from net realized gains		—			(0.46	)		(0.02	)

Total distributions		—			(0.58	)		(0.10	)

Net asset value at end of period		8.79			11.45			12.05

Total return (%)		(23.23	)³		(0.24	)		21.90	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.35	⁴		1.35			1.34	⁴
Gross operating expenses		1.38	⁴		1.54			1.64	⁴
Net investment income (loss)		2.89	⁴		1.14			1.06	⁴
Portfolio turnover rate		62	³		147			106	³
Net assets, end of period ($ x 1,000)		224,271			139,643			19,173

* Unaudited.

¹ Commencement of operations.

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

³ Not annualized.

⁴ Annualized.

⁵ Effective July 31, 2008, the Institutional Shares became Select Shares.

24 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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

Cost

Value

Holdings by Category

($)

101

.0%

Common Stock

390,541,706

319,854,584

.8%

Preferred Stock

6,913,638

5,684,794

—%

Rights

—

33,248

102

.8%

Total Investments

397,455,344

325,572,626

.8)%

Other Assets and Liabilities

(8,789,221

)

100

.0%

Net Assets

316,783,405


	Number		Value
Security	of Shares		($)





Common Stock 101.0% of net assets


Argentina 0.3%


Energy 0.2%
Petrobras Energia Participaciones S.A. ADR		61,900		609,096


Telecommunication Services 0.1%
Telecom Argentina S.A. ADR *		32,900		403,025

				1,012,121


Australia 6.3%


Commercial & Professional Supplies 0.6%
Campbell Brothers Ltd.		31,900		814,174
Downer EDI Ltd.		191,100		973,633

				1,787,807


Consumer Services 0.2%
Flight Centre Ltd.		52,600		812,423


Energy 1.7%
Felix Resources Ltd.		67,200		918,401
Origin Energy Ltd.		124,100		1,605,181
Queensland Gas Co., Ltd. *		62,700		204,261
Santos Ltd.		179,900		2,752,707

				5,480,550


Food, Beverage & Tobacco 1.4%
Coca-Cola Amatil Ltd.		227,900		1,521,635
Foster’s Group Ltd.		295,500		1,320,232
Goodman Fielder Ltd.		88,200		100,053
Lion Nathan Ltd.		193,700		1,450,203

				4,392,123


Insurance 0.0%
Insurance Australia Group Ltd.		27,100		89,952


Materials 1.6%
Fortescue Metals Group Ltd. *		172,800		657,445
Incitec Pivot Ltd.		154,000		617,012
Mount Gibson Iron Ltd. *		352,200		469,195
OM Holdings Ltd.		282,200		448,946
Orica Ltd.		45,600		770,106
Portman Ltd. *		38,012		641,338
Sims Group Ltd.		62,200		1,507,020

				5,111,062


Real Estate 0.2%
CFS Retail Property Trust		113,404		205,762
Dexus Property Group		115,400		135,745
Goodman Group		130,400		263,137

				604,644


Utilities 0.6%
AGL Energy Ltd.		161,800		1,784,424

				20,062,985


Austria 0.2%


Energy 0.1%
OMV AG		9,800		413,071


Real Estate 0.1%
Conwert Immobilien Invest SE *		28,060		264,669
IMMOEAST AG *		7,996		20,198

				284,867

				697,938


Belgium 1.9%


Diversified Financials 0.0%
Banque Nationale de Belgique		18		69,630


Energy 0.2%
Euronav S.A.		28,000		774,184


Food & Staples Retailing 0.4%
Delhaize Group		22,200		1,289,471


Materials 0.6%
Solvay S.A.		5,600		687,398
Tessenderlo Chemie N.V.		3,653		182,938
Umicore		31,500		972,784

				1,843,120


Pharmaceuticals & Biotechnology 0.3%
UCB S.A.		25,900		920,204


Retailing 0.0%
S.A. D’Ieteren N.V.		164		37,067


Telecommunication Services 0.4%
Telenet Group Holding N.V. *		56,000		1,158,440

				6,092,116


Brazil 0.7%


Banks 0.0%
Banco Nossa Caixa S.A. - Reg’d		6,900		144,679


Food, Beverage & Tobacco 0.2%
Souza Cruz S.A.		20,300		485,284


Materials 0.2%
Acos Villares S.A.		503,000		237,900

See financial notes 25

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Suzano Papel e Celulose S.A.		41,200		351,832

				589,732


Utilities 0.3%
Companhia de Saneamento Basico do Estado de Sao Paulo		43,000		595,433
Companhia de Saneamento de Minas Gerais - Copasa MG		27,100		284,829
EDP - Energias do Brasil S.A.		15,400		192,773

				1,073,035

				2,292,730


Canada 7.3%


Automobiles & Components 0.0%
Linamar Corp.		12,000		112,755


Banks 0.7%
Laurentian Bank Of Canada		9,300		332,065
National Bank of Canada		37,100		1,695,950

				2,028,015


Capital Goods 0.3%
Bombardier, Inc., Class B		176,100		956,409
SNC-Lavalin Group, Inc.		600		21,694

				978,103


Energy 1.5%
Addax Petroleum Corp.		16,200		439,763
AltaGas Income Trust		14,800		330,975
Daylight Resources Trust		19,300		184,975
Freehold Royalty Trust		13,000		208,880
Harvest Energy Trust		19,800		333,395
Keyera Facilities Income Fund		11,220		214,648
Mullen Group Income Fund		27,500		439,018
Nexen, Inc.		17,500		406,155
Penn West Energy Trust		40,600		965,550
Progress Energy Trust		3,500		39,629
Provident Energy Trust		48,100		429,363
Savanna Energy Services Corp.		23,100		335,783
Tanganyika Oil Co., Ltd. *		7,300		193,363
Trilogy Energy Trust		8,200		61,409

				4,582,906


Food & Staples Retailing 0.3%
George Weston Ltd.		21,500		1,039,596


Food, Beverage & Tobacco 0.0%
Viterra, Inc. *		7,780		74,346


Insurance 0.7%
Industrial Alliance Insurance & Financial Services, Inc.		38,200		1,213,211
Power Corp. of Canada		37,900		1,111,092

				2,324,303


Materials 2.1%
Agnico-Eagle Mines Ltd.		6,600		360,310
Agrium, Inc.		34,900		1,951,186
Canfor Corp. *		54,200		415,733
Fording Canadian Coal Trust		3,900		319,806
IAMGOLD Corp.		99,000		546,047
Kinross Gold Corp.		37,400		600,579
Methanex Corp.		23,530		460,982
Potash Corp. of Saskatchewan, Inc.		2,870		372,068
West Fraser Timber Co., Ltd.		15,900		521,260
Yamana Gold, Inc.		135,700		1,115,692

				6,663,663


Media 0.3%
Quebecor, Inc., Class B		23,700		560,071
Shaw Communications, Inc., Class B		9,300		188,228

				748,299


Software & Services 0.6%
CGI Group, Inc., Class A *		137,400		1,201,968
Open Text Corp. *		18,700		620,434

				1,822,402


Technology Hardware & Equipment 0.0%
Celestica, Inc. *		13,590		85,045


Utilities 0.8%
ATCO Ltd., Class I		26,400		957,519
Canadian Utilities Ltd., Class A		26,400		941,395
Fortis, Inc.		32,200		727,356

				2,626,270

				23,085,703


Chile 0.7%


Banks 0.1%
Banco de Chile ADR		9,600		384,000


Diversified Financials 0.0%
Administradora de Fondos de Pensiones Provida S.A. ADR		266		6,541


Food, Beverage & Tobacco 0.2%
Compania Cervecerias Unidas S.A. ADR		18,300		589,809
Embotelladora Andina S.A. Series A ADR		1,817		23,784

				613,593


Transportation 0.2%
Lan Airlines S.A. ADR		64,000		729,600


Utilities 0.2%
Enersis S.A. ADR		32,400		528,768

				2,262,502


China 2.1%


Automobiles & Components 0.3%
Dongfeng Motor Group Co., Ltd., Class H		2,160,000		794,954
Jiangling Motors Corp., Ltd. , Class B		64,700		42,597
Zhejiang Glass Co., Ltd., Class H *		55,000		13,846

				851,397


Capital Goods 0.4%
Baoye Group Co., Ltd., Class H		294,000		90,871
BYD Co. Ltd., Class H		85,000		142,266
China International Marine Containers (Group) Co., Ltd., Class B (a)		171,800		116,378
China State Construction International Holdings Ltd.		568,000		87,396
CITIC Resources Holdings Ltd. *		161,000		25,366
First Tractor Co., Ltd., Class H		274,000		41,879

26 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Harbin Power Equipment Co., Ltd., Class H		360,000		257,891
Shanghai Electric Group Co., Ltd., Class H *		412,000		125,603
Shanghai Mechanical & Electrical Industry Co. Ltd., Class B		132,409		96,631
Weichai Power Co., Ltd., Class H		54,000		206,597

				1,190,878


Consumer Durables & Apparel 0.1%
Shenzhou International Group		777,000		165,250


Energy 0.3%
China Oilfield Services Ltd., Class H		34,000		31,501
Yanzhou Coal Mining Co., Ltd., Class H		828,000		853,796

				885,297


Food, Beverage & Tobacco 0.5%
Chaoda Modern Agriculture (Holdings) Ltd.		1,410,200		1,191,033
Yantai Changyu Pioneer Wine Co., Ltd., Class B (a)		57,800		257,426

				1,448,459


Materials 0.3%
Bengang Steel Plates Co., Ltd., Class B		260,200		105,439
China Bluechemical Ltd., Class H		1,340,000		747,085
Shandong Chenming Paper Holdings, Ltd., Class B		191,900		117,393

				969,917


Pharmaceuticals & Biotechnology 0.0%
Livzon Pharmaceutical Group, Inc., Class B		97,400		89,984


Technology Hardware & Equipment 0.0%
Digital China Holdings Ltd.		75,000		24,905
TPV Technology Ltd.		100,000		30,610

				55,515


Transportation 0.2%
China Shipping Container Lines Co., Ltd., Class H		1,699,750		292,508
Guangshen Railway Co., Ltd., Class H		342,000		169,536
Sinotrans Ltd., Class H		343,000		67,009
Zhejiang Expressway Co., Ltd., Class H		472,000		280,210

				809,263


Utilities 0.0%
Guangdong Electric Power Development Co. Ltd., Class B		244,600		95,191
Zhejiang Southeast Electric Power Co. Ltd., Class B		69,400		35,110

				130,301

				6,596,261


Columbia 0.2%


Banks 0.2%
Bancolombia S.A. ADR		25,400		722,630


Denmark 1.2%


Banks 0.4%
Jyske Bank A/S - Reg’d *		21,600		1,087,573


Food, Beverage & Tobacco 0.3%
Danisco A/S		18,600		1,045,394


Pharmaceuticals & Biotechnology 0.2%
H. Lundbeck A/S		37,800		718,663


Transportation 0.3%
D/S Norden A/S		18,400		885,958

				3,737,588


Egypt 0.2%


Materials 0.1%
EL Ezz Aldekhela Steel Alexa Co.		532		131,381


Telecommunication Services 0.1%
Telecom Egypt		146,000		394,754

				526,135


Finland 2.1%


Capital Goods 1.1%
Cargotec Corp., B Shares		42,000		857,986
KCI Konecranes Oyj		8,781		209,981
Metso Corp. Oyj		48,000		1,177,265
Wartsila Corp. Oyj		32,100		1,352,325

				3,597,557


Materials 0.7%
Outokumpu Oyj		59,200		943,185
Stora Enso Oyj, Class R		46,000		449,471
UPM-Kymmene Oyj		52,000		811,322

				2,203,978


Software & Services 0.3%
TietoEnator Oyj		54,900		808,106

				6,609,641


France 3.6%


Automobiles & Components 0.5%
PSA Peugeot Citroen		17,600		662,397
Valeo S.A.		32,800		992,586

				1,654,983


Capital Goods 0.1%
Thales S.A.		6,000		302,788


Commercial & Professional Supplies 0.1%
Teleperformance		14,500		404,456


Consumer Durables & Apparel 0.1%
Christian Dior S.A.		2,333		176,940
Thomson *		39,000		139,382

				316,322


Consumer Services 0.1%
Sodexho		2,400		141,634


Food & Staples Retailing 0.1%
Casino Guichard-Perrachon S.A.		3,742		333,896


Materials 0.5%
Arkema		28,800		1,063,218

See financial notes 27

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Eramet		1,120		429,073

				1,492,291


Media 1.1%
Havas S.A.		345,000		1,083,563
M6 Metropole Television		40,600		892,600
Publicis Groupe		48,000		1,511,854

				3,488,017


Software & Services 0.8%
Atos Origin S.A.		28,500		1,254,245
Cap Gemini S.A.		27,600		1,303,848

				2,558,093


Transportation 0.2%
Air France-KLM		6,300		144,241
Bollore		2,803		443,591

				587,832

				11,280,312


Germany 2.9%


Capital Goods 1.3%
Bilfinger Berger AG		15,959		831,242
Hochtief AG		23,100		1,102,472
Rheinmetall AG		21,900		1,178,683
Tognum AG		55,548		1,112,796

				4,225,193


Consumer Services 0.2%
TUI AG		37,179		614,139


Food, Beverage & Tobacco 0.2%
Suedzucker AG		48,600		707,091


Materials 0.9%
Altana AG		77,400		1,146,840
K & S AG		17,200		1,192,582
Lanxess		16,200		446,150
ThyssenKrupp AG		3,200		96,076

				2,881,648


Retailing 0.1%
Takkt AG		17,508		244,496


Telecommunication Services 0.2%
Freenet AG *		68,400		620,301

				9,292,868


Greece 0.3%


Materials 0.1%
Viohalco, Hellenic Copper & Aluminum Industry S.A.		30,000		215,685


Utilities 0.2%
Public Power Corp. S.A.		42,000		647,944

				863,629


Hong Kong 3.3%


Banks 0.1%
Industrial & Commercial Bank of China (Asia) Ltd.		219,000		398,613


Capital Goods 0.4%
Chen Hsong Holdings Ltd.		310,000		78,509
Citic Pacific Ltd.		44,000		128,618
Jardine Strategic Holdings Ltd.		7,000		99,551
Johnson Electric Holdings Ltd.		448,000		168,343
Noble Group Ltd.		3,000		2,855
NWS Holdings Ltd.		116,000		208,147
Shanghai Industrial Holdings Ltd.		215,000		491,462

				1,177,485


Consumer Durables & Apparel 0.4%
Yue Yuen Industrial (Holdings) Ltd.		459,500		1,255,202


Consumer Services 0.1%
Mandarin Oriental International Ltd.		40,000		61,996
Star Cruises Ltd. *		189,000		22,077
The Hongkong & Shanghai Hotels Ltd.		196,000		191,634

				275,707


Diversified Financials 0.2%
Allied Properties (H.K.) Ltd.		572,000		74,304
Guoco Group Ltd.		58,000		487,524

				561,828


Food & Staples Retailing 0.3%
Dairy Farm International Holdings Ltd.		227,700		1,145,706


Materials 0.0%
Shougang Concord International Enterprises Co., Ltd.		142,000		20,470


Media 0.1%
Television Broadcasts Ltd.		66,000		280,270


Pharmaceuticals & Biotechnology 0.1%
China Pharmaceutical Group Ltd.		606,000		197,772


Real Estate 0.2%
Chinese Estates Holdings Ltd.		220,000		272,616
Emperor International Holdings Ltd.		559,000		115,002
Kowloon Development Co., Ltd.		171,000		153,128
New World China Land Ltd.		177,200		41,480
SEA Holdings Ltd.		36,000		19,936
Sinolink Worldwide Holdings Ltd.		972,000		93,708
SRE Group Ltd.		828,000		63,986
Wheelock & Co., Ltd.		19,000		34,463

				794,319


Retailing 0.1%
Chow Sang Sang Holdings International Ltd.		48,000		27,621
Esprit Holdings Ltd.		30,500		189,056
Wing On Co. International Ltd.		29,000		40,529

				257,206


Semiconductors & Semiconductor Equipment 0.0%
ASM Pacific Technology Ltd.		3,100		17,918


Technology Hardware & Equipment 0.3%
Lenovo Group Ltd.		646,000		285,116
VTech Holdings Ltd.		110,000		643,372

				928,488


Transportation 0.5%
Hopewell Highway Infrastructure Ltd.		612,500		426,212
Pacific Basin Shipping Ltd.		1,191,000		990,201

28 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Transport International Holdings Ltd.		43,600		121,738

				1,538,151


Utilities 0.5%
Guangdong Investment Ltd.		1,766,000		417,064
Hongkong Electric Holdings Ltd.		214,500		1,347,268

				1,764,332

				10,613,467


Hungary 0.8%


Pharmaceuticals & Biotechnology 0.4%
Richter Gedeon Nyrt.		6,400		1,171,488


Telecommunication Services 0.4%
Magyar Telekom Telecommunications plc		260,000		1,219,492

				2,390,980


India 2.0%


Automobiles & Components 0.1%
Hero Honda Motors Ltd.		1,700		31,945
Mahindra & Mahindra Ltd.		18,680		205,695
Maruti Suzuki India Ltd.		6,780		101,904

				339,544


Banks 0.4%
Bank of India		79,030		487,459
Bank of Maharashtra Ltd.		237,160		155,262
Corporation Bank		11,060		65,734
Dena Bank Ltd.		177,760		160,579
Indian Bank		40,230		115,032
Syndicate Bank		230,390		326,016

				1,310,082


Capital Goods 0.1%
Bharat Electronics Ltd.		7,110		140,234
SKF India Ltd.		24,194		103,690
Tata Motors Ltd.		98		725

				244,649


Consumer Services 0.0%
Indian Hotels Co., Ltd.		15,868		22,993


Diversified Financials 0.1%
JM Financial Ltd.		256,625		201,067


Energy 0.2%
Bongaigaon Refinery & Petrochemicals Ltd. (BRP)		48,220		50,894
The Great Eastern Shipping Co., Ltd.		94,400		612,255

				663,149


Household & Personal Products 0.1%
Hindustan Unilever Ltd.		30,000		164,630


Materials 0.7%
Birla Corp., Ltd.		37,050		102,967
Coromandel Fertilisers Ltd.		2,280		7,027
Grasim Industries Ltd.		2,050		75,005
Gujarat Alkalies & Chemicals Ltd.		45,500		109,467
Gujarat Fluorochemicals Ltd.		2,200		7,197
Gujarat Narmada Valley Fertilizers Co., Ltd.		80,930		158,973
Gujarat State Fertilizers & Chemicals Ltd.		37,210		94,510
Hindalco Industries Ltd.		137,510		291,623
Hindustan Zinc Ltd.		38,310		358,577
Jindal Steel & Power Ltd.		750		20,756
JSL Ltd.		48,660		113,789
National Aluminium Co., Ltd.		6,740		54,127
Pidilite Industries Ltd.		20,270		56,943
Sesa Goa Ltd.		94,240		244,200
Steel Authority of India Ltd.		39,790		108,912
Sterlite Industries (India) Ltd.		17,150		158,783
Tata Chemicals Ltd.		17,930		87,933
Tata Steel Ltd.		7,542		69,601
Ultra Tech Cement Ltd.		14,940		170,456

				2,290,846


Pharmaceuticals & Biotechnology 0.1%
Ipca Laboratories Ltd.		6,072		73,624
Sun Pharmaceutical Industries Ltd.		2,090		67,783
Wockhardt Ltd.		5,390		18,029

				159,436


Software & Services 0.1%
HCL Technologies Ltd.		51,400		219,006
Satyam Computer Services Ltd.		44,674		283,245

				502,251


Transportation 0.1%
Container Corp. of India Ltd.		3,550		63,129
Shipping Corp. of India Ltd.		71,394		227,588

				290,717


Utilities 0.0%
Gail India Ltd.		45		398

				6,189,762


Indonesia 0.9%


Automobiles & Components 0.1%
PT Astra International Tbk		82,000		146,269
PT Astra Otoparts Tbk		1,000		428

				146,697


Banks 0.4%
PT Bank Negara Indonesia (Persero) Tbk		5,523,000		557,963
PT Bank Rakyat Indonesia		1,216,000		687,033

				1,244,996


Capital Goods 0.0%
PT United Tractors Tbk		140,000		138,042


Energy 0.1%
PT Tambang Batubara Bukit Asam Tbk		421,000		412,663


Food, Beverage & Tobacco 0.1%
PT Astra Agro Lestari Tbk		116,000		157,229
PT Hanjaya Mandala Sampoerna Tbk		23,000		24,937

				182,166


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		341,000		269,482

See financial notes 29

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Materials 0.1%
PT Indah Kiat Pulp & Paper Corp. Tbk *		1,846,000		304,748
PT International Nickel Indonesia Tbk (INCO)		226,000		72,413

				377,161

				2,771,207


Ireland 0.4%


Banks 0.3%
Anglo Irish Bank Corp. plc		160,000		907,629


Insurance 0.1%
Irish Life & Permanent plc		71,213		499,870

				1,407,499


Israel 0.8%


Banks 0.2%
First International Bank of Israel Ltd. (FIBI) *		10,250		86,398
Israel Discount Bank, Class A		338,000		494,084

				580,482


Insurance 0.2%
Migdal Insurance & Financial Ltd. Holdings		704,000		749,793


Telecommunication Services 0.4%
Bezeq Israeli Telecommunication Corp., Ltd.		637,000		1,129,201

				2,459,476


Italy 2.9%


Automobiles & Components 0.4%
Pirelli & C. S.p.A.		1,888,000		1,113,969


Banks 0.9%
Banca Carige S.p.A. (Cassa di Risparmio di Genova e Imperia)		265,000		875,417
Banca Popolare dell’Emilia Romagna Scrl		55,000		788,477
Banca Popolare di Milano Scarl		132,000		1,121,838
Banco Popolare Societa Cooperativa		7,864		122,163

				2,907,895


Capital Goods 0.0%
Finmeccanica S.p.A.		5,463		118,425


Insurance 0.8%
Fondiaria - Sai S.p.A.		36,600		863,900
Milano Assicurazioni S.p.A.		175,197		776,315
Unipol Gruppo Finanziario S.p.A.		472,000		1,012,840

				2,653,055


Materials 0.4%
Buzzi Unicem S.p.A.		61,000		937,309
Italcementi S.p.A.		18,000		222,963

				1,160,272


Transportation 0.1%
Autostrada Torino-Milano S.p.A.		17,499		191,243


Utilities 0.3%
ACEA S.p.A.		63,000		902,282

				9,047,141


Japan 22.2%


Automobiles & Components 2.0%
Fuji Heavy Industries Ltd.		234,000		1,185,296
Mazda Motor Corp.		288,000		1,172,885
NGK Spark Plug Co., Ltd.		53,000		515,965
Sumitomo Rubber Industries, Ltd.		88,700		790,226
Toyota Industries Corp.		55,000		1,388,010
Yamaha Motor Co., Ltd.		103,500		1,413,612

				6,465,994


Banks 4.9%
Chuo Mitsui Trust Holdings, Inc.		409,000		2,208,074
Fukuoka Financial Group, Inc.		485,000		1,784,797
Sapporo Hokuyo Holdings, Inc.		295		1,476,745
The 77 Bank Ltd.		311,000		1,568,168
The Bank of Kyoto Ltd.		176,000		1,796,300
The Chiba Bank Ltd.		230,000		1,205,914
The Gunma Bank Ltd.		202,000		1,151,886
The Hachijuni Bank Ltd.		304,000		1,612,683
The Joyo Bank Ltd.		247,000		1,124,452
The Nishi-Nippon City Bank Ltd.		643,000		1,605,571

				15,534,590


Capital Goods 1.7%
Amada Co., Ltd.		205,000		1,125,824
Fuji Electric Holdings Co., Ltd.		85,000		205,322
Hankyu Hanshin Holdings, Inc.		220,000		1,010,504
Hino Motors, Ltd.		21,000		84,908
Hitachi Cable Ltd.		29,000		99,025
Hitachi Construction Machinery Co., Ltd.		4,100		101,339
JS Group Corp.		80,200		1,009,634
JTEKT Corp.		24,000		273,834
Kinden Corp.		45,000		428,691
Sojitz Corp.		428,300		992,678

				5,331,759


Consumer Durables & Apparel 0.7%
Casio Computer Co., Ltd.		42,900		402,786
Makita Corp.		40,500		829,661
Sankyo Co., Ltd.		21,200		1,076,103

				2,308,550


Diversified Financials 0.2%
Hitachi Capital Corp.		58,700		714,761
SBI Holdings, Inc.		288		43,114

				757,875


Energy 0.5%
Japan Petroleum Exploration Co., Ltd.		28,100		1,442,454


Food & Staples Retailing 0.5%
Aeon Co., Ltd.		142,300		1,453,855


Food, Beverage & Tobacco 0.9%
Ajinomoto Co., Inc.		127,000		1,210,411
Asahi Breweries Ltd.		84,800		1,486,250

				2,696,661

30 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Household & Personal Products 0.7%
Shiseido Co., Ltd.		103,000		2,306,522


Insurance 0.5%
Sompo Japan Insurance, Inc.		174,000		1,476,856
The Fuji Fire & Marine Insurance Co., Ltd.		7,000		16,204

				1,493,060


Materials 4.7%
Asahi Kasei Corp.		333,000		1,401,068
Denki Kagaku Kogyo Kabushiki Kaisha		173,000		455,129
DIC Corp.		263,000		498,101
Hitachi Chemical Co., Ltd.		18,500		248,258
Kaneka Corp.		272,000		1,502,606
Kobe Steel Ltd.		671,000		1,350,239
Kuraray Co., Ltd.		108,000		1,073,545
Mitsubishi Chemical Holdings Corp.		143,500		758,504
Mitsubishi Gas Chemical Co., Inc.		148,000		715,763
Mitsubishi Rayon Co., Ltd.		267,000		661,238
Mitsui Chemicals, Inc.		375,000		1,653,210
Nippon Paper Group, Inc.		99		289,315
Nisshin Steel Co., Ltd.		753,000		1,456,634
Pacific Metals Co., Ltd.		4,000		29,002
Teijin Ltd.		411,000		1,234,996
Tosoh Corp.		254,000		749,514
Toyo Seikan Kaisha Ltd.		61,100		937,921

				15,015,043


Pharmaceuticals & Biotechnology 0.4%
Dainippon Sumitomo Pharma Co., Ltd.		145,000		1,187,833


Retailing 0.4%
Aoyama Trading Co., Ltd.		8,400		112,242
Marui Group Co., Ltd.		144,000		1,075,377

				1,187,619


Semiconductors & Semiconductor Equipment 0.3%
Rohm Co., Ltd.		18,000		990,065


Technology Hardware & Equipment 1.2%
Alps Electric Co., Ltd.		17,200		134,640
Murata Manufacturing Co., Ltd.		5,800		234,150
NEC Corp.		335,000		1,431,830
OMRON Corp.		109,800		1,704,349
Yokogawa Electric Corp.		52,900		335,882

				3,840,851


Transportation 1.8%
Japan Airlines Corp. *		26,000		53,537
Kamigumi Co., Ltd.		203,000		1,524,947
Kawasaki Kisen Kaisha Ltd.		264,000		1,633,278
Keisei Electric Railway Co., Ltd.		22,000		121,126
West Japan Railway Co.		522		2,235,452

				5,568,340


Utilities 0.8%
Hokkaido Electric Power Co., Inc.		60,000		1,252,817
The Chugoku Electric Power Co., Inc.		70,300		1,441,263

				2,694,080

				70,275,151


Luxembourg 0.4%


Household & Personal Products 0.2%
Oriflame Cosmetics S.A. SDR		12,400		574,440


Telecommunication Services 0.2%
COLT Telecom Group S.A. *		383,561		693,679

				1,268,119


Malaysia 0.6%


Automobiles & Components 0.1%
UMW Holdings Berhad		146,000		247,217


Banks 0.2%
Hong Leong Bank Berhad		259,000		425,497
Hong Leong Financial Group Berhad		4,000		5,138

				430,635


Capital Goods 0.1%
Boustead Holdings Berhad		61,500		81,819
Hap Seng Consolidated Berhad		334,100		240,691
Ranhill Berhad		275,000		57,916

				380,426


Consumer Services 0.0%
KFC Holdings (Malaysia) Berhad		19,000		36,575


Energy 0.0%
Petronas Dagangan Berhad		27,000		51,576


Food, Beverage & Tobacco 0.1%
Asiatic Development Berhad		67,000		90,339
JT International Berhad		164,000		208,734
Sarawak Oil Palms Berhad		24,000		18,648

				317,721


Materials 0.1%
Lion Industries Corp. Berhad		440,000		162,071
Southern Steel Berhad		212,500		119,746
Titan Chemicals Corp. Berhad		69,000		20,754

				302,571


Transportation 0.0%
Malaysian Airline System Berhad		80,000		80,609


Utilities 0.0%
Tenaga Nasional Berhad		20,000		39,894

				1,887,224


Mauritius 0.0%


Food, Beverage & Tobacco 0.0%
Golden Agri-Resources Ltd.		502,000		111,926


Mexico 1.6%


Banks 0.0%
Grupo Financiero Banorte S.A.B. de C.V., Class O		33,600		107,223


Capital Goods 0.5%
Alfa S.A.B., Class A		89,500		402,633
Grupo Carso S.A.B. de C.V., Series A1		135,900		519,419

See financial notes 31

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Mexichem S.A. de C.V.		264,400		481,101

				1,403,153


Consumer Durables & Apparel 0.0%
Consorcio ARA, S.A. de C.V.		202,100		112,724


Food & Staples Retailing 0.1%
Controladora Comercial Mexicana S.A. de C.V.		138,700		320,228
Grupo Gigante S.A. de C.V., Class B		71,800		95,195

				415,423


Food, Beverage & Tobacco 0.4%
Coca-Cola Femsa S.A.B. de C.V. (Femsa), Series L		123,200		626,336
Gruma S.A.B., Class B *		35,300		72,624
Grupo Continental, S.A.B.		176,500		377,966

				1,076,926


Materials 0.2%
Grupo Mexico S.A.B. de C.V., Series B		435,301		457,730
Industrias CH S.A., Series B *		75,700		279,639

				737,369


Retailing 0.3%
Grupo Elektra, S.A. de C.V.		23,000		799,159


Transportation 0.1%
Grupo Aeroportuario del Pacifico S.A. de C.V., Class B		120,600		306,118

				4,958,095


Netherlands 1.5%


Commercial & Professional Supplies 0.4%
Randstad Holding N.V.		44,000		1,156,960


Diversified Financials 0.2%
SNS Reaal		50,404		575,226


Food, Beverage & Tobacco 0.2%
Nutreco Holding N.V.		16,800		790,820


Materials 0.3%
Akzo Nobel N.V.		9,314		447,153
Koninklijke DSM N.V.		13,200		624,355

				1,071,508


Semiconductors & Semiconductor Equipment 0.1%
STMicroelectronics N.V.		22,000		222,855


Technology Hardware & Equipment 0.3%
Gemalto N.V. *		23,089		832,944

				4,650,313


New Zealand 0.7%


Materials 0.5%
Fletcher Building Ltd.		76,000		343,339
Nufarm Ltd.		90,400		1,106,519

				1,449,858


Transportation 0.0%
Air New Zealand Ltd.		29,400		18,978


Utilities 0.2%
Contact Energy Ltd.		58,200		308,117
TrustPower Ltd.		23,931		126,641
Vector Ltd.		159,000		224,565

				659,323

				2,128,159


Norway 0.2%


Energy 0.2%
Bonheur A.S.A.		25,500		703,111


Philippines 0.3%


Energy 0.1%
Petron Corp.		1,985,000		252,636


Food, Beverage & Tobacco 0.0%
San Miguel Corp., Class B		57,000		71,371


Materials 0.0%
Philex Mining Corp.		603,800		94,353


Telecommunication Services 0.2%
Globe Telecom, Inc.		10,000		220,881
Philippine Long Distance Telephone Co.		1,000		57,566
Pilipino Telephone Corp.		763,000		141,172

				419,619


Utilities 0.0%
Aboitiz Power Corp.		85,000		9,118

				847,097


Poland 1.4%


Banks 0.2%
Bank Handlowy w Warszawie S.A.		22,085		585,828


Energy 1.0%
Grupa Lotos S.A. *		82,000		925,866
Polski Koncern Naftowy Orlen S.A.		106,000		1,530,411
Polskie Gornictwo Naftowe I Gazownictwo S.A.		576,000		794,375

				3,250,652


Telecommunication Services 0.2%
Telekomunikacja Polska S.A.		63,000		600,921

				4,437,401


Portugal 0.9%


Banks 0.3%
Banco Espirito Santo, S.A. Reg’d		78,000		967,173


Food & Staples Retailing 0.4%
Jeronimo Martins, SGPS, S.A.		144,000		1,228,100


Materials 0.2%
Semapa - Sociedade de Investimento e Gestao, SGPS, S.A.		71,126		703,045

				2,898,318


Republic of Korea 4.4%


Automobiles & Components 0.1%
Hankook Tire Co., Ltd.		16,130		226,328

32 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Capital Goods 1.0%
Doosan Corp. *		2,450		246,536
Doosan Infracore Co., Ltd.		5,740		94,291
LG Corp.		32,250		1,679,303
LS Corp.		3,320		224,993
Samho International Co., Ltd.		6,560		41,618
Samsung Heavy Industries Co., Ltd.		15,010		399,677
SK Holdings Co., Ltd.		1,090		101,497
SK Networks Co., Ltd. *		47,010		475,330

				3,263,245


Commercial & Professional Supplies 0.0%
S1 Corp.		1,810		92,209


Consumer Durables & Apparel 0.0%
Youngone Corp.		15,880		120,715


Diversified Financials 0.1%
Shinyoung Securities Co., Ltd.		5,860		199,472


Energy 0.1%
SK Energy Co., Ltd.		2,669		202,224
SK Gas Co., Ltd.		1,581		85,256

				287,480


Food, Beverage & Tobacco 0.2%
Dongwon Industries Co., Ltd.		2,100		168,275
KT&G Corp.		5,100		380,649
Ottogi Corp.		1,500		195,783

				744,707


Household & Personal Products 0.6%
LG Household & Health Care Ltd.		7,450		1,245,907
Pacific Corp.		4,980		511,840

				1,757,747


Insurance 0.3%
Hyundai Marine & Fire Insurance Co., Ltd. (HDMF)		55,460		899,033


Materials 0.8%
Dongkuk Steel Mill Co., Ltd.		7,710		238,102
Hanwha Chemical Corp.		20,540		190,381
Hanwha Corp.		1,590		60,670
Hyosung Corp.		5,310		281,225
Korea Petrochemical Industrial Co., Ltd.		460		11,261
Korea Zinc Co., Ltd.		2,330		188,458
LG Chem Ltd.		20,340		1,595,897
SeAH Holdings Corp.		450		37,081

				2,603,075


Retailing 0.3%
GS Home Shopping, Inc.		980		52,513
Hyundai Department Store Co., Ltd.		11,500		894,211

				946,724


Software & Services 0.0%
Daou Technology, Inc.		16,170		67,276


Telecommunication Services 0.9%
KT Corp.		10,560		364,636
KT Freetel Co., Ltd. *		43,120		1,068,577
LG Dacom Corp.		28,030		497,868
LG Telecom Ltd.		102,760		857,516

				2,788,597

				13,996,608


Russia 0.2%


Energy 0.2%
Tatneft GDR - Reg’d		8,800		623,040


Telecommunication Services 0.0%
Comstar United Telesystems OJSC GDR		6,587		32,935

				655,975


Singapore 1.5%


Capital Goods 0.8%
Fraser & Neave Ltd.		210,000		526,728
Haw Par Corp., Ltd.		124,000		404,935
Keppel Corp., Ltd.		62,000		342,600
SembCorp Industries Ltd.		406,000		930,112
Singapore Technologies Engineering Ltd.		187,000		355,114
United Engineers Ltd.		11,000		13,201

				2,572,690


Consumer Services 0.0%
Hotel Plaza Ltd.		8,000		7,579


Diversified Financials 0.1%
UOB-Kay Hian Holdings Ltd.		192,000		168,769


Food, Beverage & Tobacco 0.0%
Asia Food & Properties Ltd. *		8,000		1,740
People’s Food Holdings Ltd.		7,000		2,341

				4,081


Real Estate 0.1%
Singapore Land Ltd.		7,000		23,613
UOL Group Ltd.		119,000		210,467

				234,080


Retailing 0.3%
Jardine Cycle & Carriage Ltd.		84,000		923,992
Metro Holdings Ltd.		203,000		70,907

				994,899


Semiconductors & Semiconductor Equipment 0.0%
STATS ChipPAC Ltd. *		147,000		90,290


Technology Hardware & Equipment 0.1%
Venture Corp., Ltd.		46,000		250,262


Transportation 0.1%
ComfortDelGro Corp., Ltd.		507,000		533,743
Neptune Orient Lines Ltd.		17,000		21,681

				555,424

				4,878,074


South Africa 2.7%


Banks 0.4%
Nedbank Group Ltd.		112,000		1,418,134


Capital Goods 0.4%
Aveng Ltd.		189,000		1,443,351


Diversified Financials 0.3%
Investec Ltd.		164,000		959,562


Health Care Equipment & Services 0.1%
Medi-Clinic Corp., Ltd.		75,779		166,747

See financial notes 33

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Insurance 0.0%
Sanlam Ltd.		19,474		41,922


Materials 1.2%
African Rainbow Minerals Ltd.		48,000		922,102
ArcelorMittal South Africa Ltd.		33,000		665,946
Assore Ltd.		13,800		1,015,366
Exxaro Resources Ltd.		92,000		964,770
Harmony Gold Mining Co., Ltd. *		16,000		156,642

				3,724,826


Telecommunication Services 0.3%
Telkom South Africa Ltd.		68,000		870,059

				8,624,601


Spain 1.5%


Banks 0.5%
Bankinter S.A.		118,000		1,483,271


Capital Goods 0.1%
Sacyr Vallehermoso S.A.		27,134		450,313


Insurance 0.3%
Grupo Catalana Occidente S.A.		43,400		915,251
Mapfre S.A.		39,444		172,426

				1,087,677


Transportation 0.4%
Cintra Concesiones de Infraestructuras de Transporte S.A.		103,000		1,210,551


Utilities 0.2%
Enagas		26,284		566,785

				4,798,597


Sweden 3.1%


Capital Goods 1.5%
AB SKF, B Shares		130,000		1,660,800
Alfa Laval AB		50,900		526,715
Hexagon AB, Class B		7,000		80,133
Saab AB, Class B		16,200		249,516
Skanska AB, B Shares		110,000		1,252,043
Trelleborg AB, B Shares		68,000		948,022

				4,717,229


Commercial & Professional Supplies 0.5%
Securitas AB, B Shares		136,515		1,537,697


Food, Beverage & Tobacco 0.5%
Swedish Match AB		85,000		1,485,833


Health Care Equipment & Services 0.4%
Getinge AB, Class B		65,000		1,339,751


Telecommunication Services 0.2%
Tele2 AB, B Shares		56,000		639,091

				9,719,601


Switzerland 3.2%


Capital Goods 1.0%
Bobst Group AG - Reg’d		7,500		386,064
Bucher Industries AG - Reg’d		5,680		762,943
Schindler Holding AG - Reg’d		13,306		814,189
Sulzer AG - Reg’d		10,800		1,149,090

				3,112,286


Commercial & Professional Supplies 0.2%
Adecco S.A. - Reg’d		16,400		712,441


Consumer Durables & Apparel 0.1%
Forbo Holding AG - Reg’d *		900		359,129


Consumer Services 0.3%
Kuoni Reisen Holding AG - Reg’d		2,200		849,892


Insurance 1.0%
Baloise Holding AG - Reg’d		11,600		791,987
Helvetia Holding AG		3,468		869,357
Swiss Life Holding - Reg’d *		7,200		1,045,332
Swiss Re - Reg’d		10,200		566,156

				3,272,832


Materials 0.4%
Clariant AG - Reg’d *		92,000		895,918
Givaudan S.A. - Reg’d		274		228,860

				1,124,778


Utilities 0.2%
Elektrizitaets-Gesellschaft Laufenburg AG		569		632,672
Energiedienst Holding AG - Reg’d *		600		31,819
Romande Energie Holding S.A.		52		117,938

				782,429

				10,213,787


Taiwan 3.5%


Banks 0.7%
Chang Hwa Commercial Bank		874,000		446,157
China Development Financial Holding Corp.		1,510,173		457,890
Taichung Commercial Bank *		817,000		221,977
Taiwan Cooperative Bank		1,905,278		1,060,493

				2,186,517


Capital Goods 0.2%
CTCI Corp.		328,420		223,915
Far Eastern Textile Ltd.		91		64
Teco Electric & Machinery Co., Ltd.		449,000		157,541
Walsin Lihwa Corp.		1,076,000		292,493

				674,013


Consumer Durables & Apparel 0.1%
Asia Optical Co., Inc.		90,000		118,630
Pou Chen Corp.		74,799		46,257

				164,887


Diversified Financials 0.1%
Fubon Financial Holding Co. Ltd.		558,000		403,786


Materials 0.3%
China Steel Corp.		445,093		444,852
Formosa Chemicals & Fibre Corp.		59,730		103,655
Formosa Plastics Corp.		155,000		251,799

				800,306


Semiconductors & Semiconductor Equipment 0.1%
Advanced Semiconductor Engineering, Inc.		683,209		348,199

34 See financial notes

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Macronix International Co., Ltd.		154,691		45,373

				393,572


Technology Hardware & Equipment 1.7%
Acer, Inc.		156,382		266,272
Asustek Computer, Inc.		130,864		258,997
AU Optronics Corp.		349,163		394,926
Chi Mei Optoelectronics Corp.		788,970		519,484
Chunghwa Picture Tubes Ltd.		2,676,000		425,661
Compal Electronics, Inc.		1,618,847		1,185,784
Gigabyte Technology Co., Ltd.		421,000		211,775
Inventec Co., Ltd.		217,455		106,811
Lite-On Technology Corp.		551,397		481,711
Quanta Computer, Inc.		1,054,836		1,321,176
Wistron Corp.		158,710		197,209
Yageo Corp.		897,000		181,509

				5,551,315


Telecommunication Services 0.2%
Far EasTone Telecommunications Co., Ltd.		608,544		779,931


Transportation 0.1%
U-Ming Marine Transport Corp.		151,000		217,630

				11,171,957


Thailand 0.7%


Banks 0.5%
Bangkok Bank Public Co., Ltd. NVDR		362,000		1,105,788
Krung Thai Bank Public Co., Ltd. NVDR		2,114,000		382,932

				1,488,720


Diversified Financials 0.1%
Thanachart Capital Public Co., Ltd. NVDR		530,000		168,028


Energy 0.0%
Banpu Public Co., Ltd. - Reg’d		7,000		62,710


Food, Beverage & Tobacco 0.1%
Thai Bevergae Public Co., Ltd.		3,041,000		475,946
Thai Union Frozen Products Public Co., Ltd. NVDR		36,000		20,943

				496,889


Materials 0.0%
Thai Rayon Public Co., Ltd. NVDR		53,000		70,778


Telecommunication Services 0.0%
Shin Corporation Public Co., Ltd. NVDR		69,000		38,897


Utilities 0.0%
Ratchaburi Electricity Generating Holding Public Co., Ltd. NVDR		46,000		47,789

				2,373,811


Turkey 0.7%


Consumer Durables & Apparel 0.3%
Turk Sise ve Cam Fabrikalari AS (Sisecam) *		630,000		770,290


Materials 0.4%
Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir)		275,000		1,383,153

				2,153,443


United Kingdom 8.6%


Capital Goods 0.4%
Bodycote plc		192,099		546,938
Qinetiq plc		189,000		703,058

				1,249,996


Consumer Services 0.4%
Millennium & Copthorne Hotels plc		16,395		71,992
Thomas Cook Group plc		276,000		1,095,148

				1,167,140


Energy 0.2%
Venture Production plc		66,925		733,141


Food, Beverage & Tobacco 0.7%
Premier Foods plc		735,000		986,808
Tate & Lyle plc		173,000		1,188,507

				2,175,315


Household & Personal Products 0.3%
PZ Cussons plc		255,000		812,722


Insurance 1.1%
Brit Insurance Holdings plc		198,064		647,632
Friends Provident plc		51,040		86,809
Hiscox Ltd.		136,888		601,816
Jardine Lloyd Thompson Group plc		89,476		713,931
Legal & General Group plc		395,000		712,869
Old Mutual plc		522,000		730,654

				3,493,711


Materials 0.3%
Eurasian Natural Resources Corp.		67,500		614,660
Kazakhmys plc		16,800		176,432

				791,092


Media 0.5%
Aegis Group plc		610,000		1,022,164
WPP Group plc		82,000		663,262

				1,685,426


Real Estate 2.0%
Atrium European Real Estate Ltd. *		74,306		559,828
British Land Co. plc		61,600		830,902
Hammerson plc		91,000		1,604,320
Land Securities Group plc		29,600		668,532
Liberty International plc		88,800		1,535,503
Segro plc		162,000		1,221,414

				6,420,499


Retailing 0.9%
GAME GROUP plc		210,000		773,173
Home Retail Group plc		316,000		1,331,713
WH Smith plc *		127,000		864,775

				2,969,661


Software & Services 0.3%
Logica plc		230,662		451,295
The Sage Group plc		124,000		434,328

				885,623

See financial notes 35

Laudus Rosenberg International Discovery Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Technology Hardware & Equipment 0.5%
Spectris plc		69,190		827,445
Spirent Communications plc		532,138		648,299

				1,475,744


Transportation 0.5%
Arriva plc		107,200		1,331,038
FirstGroup plc		17,256		164,739

				1,495,777


Utilities 0.5%
Centrica plc		62,943		354,165
Tanjong plc		188,000		719,122
United Utilities Group plc		53,134		659,391

				1,732,678

				27,088,525

Total Common Stock (Cost $390,541,706)				319,854,584




Preferred Stock 1.8% of net assets


Brazil 1.8%
AES Tiete S.A.		33,376		270,109
All America Latina Logistica		80,000		101,739
Brasil Telecom Participacoes S.A.		43,000		422,566
Brasil Telecom S.A.		37,700		311,839
Centrais Eletricas de Santa Catarina S.A., Class B		7,200		167,618
Companhia de Transmissao de Energia Eletrica Paulista		12,000		313,984
Companhia Energetica de Minas Gerais		28,000		553,261
Companhia Paranaense de Energia-Copel, Class B		46,000		638,184
Confab Industrial S.A.		86,900		241,579
Eletropaulo Metropolitana S.A., Class B		4,466		62,194
Fertilizantes Fosfatados S.A.		46,000		368,648
Sadia S.A.		136,600		409,175
Tele Norte Leste Participacoes S.A.		31,900		544,826
Telemar Norte Leste S.A., Class A		15,000		461,138
Telemig Celular Participacoes S.A.		15,000		283,699
Vivo Participacoes S.A. *		130,500		534,235

Total Preferred Stock (Cost $6,913,638)				5,684,794




Rights 0.0% of net assets


Brazil 0.0%
EDP - Energias do Brasil S.A. *		6,324,034		33,234


India 0.0%
Tata Motors1 Ltd. (a) *		16		1
Tata Motors2 Ltd. (a) *		16		13

				14

Total Rights (Cost $—)				33,248


End of Investments.

At 09/30/08, the tax basis cost of the fund’s investments was $399,039,255 and the unrealized appreciation and depreciation were $2,280,649 and ($75,747,278), respectively, with a net unrealized depreciation of ($73,466,629).

At 09/30/08, the prices of certain foreign securities held by the fund aggregating $282,820,575 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

GDR — Global Depositary Receipt

NVDR — Non-Voting Depositary Receipt

Reg’d — Registered

SDR — Special drawing rights

Laudus Rosenberg International Discovery Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value (cost $397,455,344)		$325,572,626
Foreign currency (cost $18,795,120)		18,718,030
Receivables:
Investments sold		1,141,511
Fund shares sold		2,414,100
Dividends		1,013,288
Due from manager		55,673
Foreign tax reclaims		75,340
Prepaid expenses	+	15,590


Total assets		349,006,158


Liabilities
Investments bought		22,958,910
Payable to custodian		8,088,539
Fund shares redeemed		849,949
Distribution and shareholder services fees		14,075
Foreign capital gains tax expense		5,300
Unrealized losses on forward foreign currency contracts		3,747
Accrued expenses	+	302,233


Total liabilities		32,222,753


Net Assets
Total assets		349,006,158
Total liabilities	−	32,222,753


Net assets		$316,783,405
Net Assets by Source
Capital received from investors		409,924,736
Net investment income not yet distributed		4,332,695
Net realized capital losses		(25,597,251	)
Net unrealized capital losses		(71,876,775	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$92,511,922		10,574,262			$8.75
Select Shares	$224,271,483		25,528,031			$8.79

See financial notes 37

Laudus Rosenberg International Discovery Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends (net of foreign withholding taxes of $673,697)		$6,059,493
Interest	+	59,363


Total Investment Income		6,118,856


Net Realized Gains and Losses
Net realized losses on investments		(16,929,574	)
Net realized losses on foreign currency transactions	+	(77,019	)


Net realized losses		(17,006,593	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(65,597,397	)
Net unrealized losses on foreign currency translations	+	(7,504	)


Net unrealized losses		(65,604,901	)


Expenses
Investment adviser fees		1,454,999
Transfer agent fees		220,969
Custodian fees		188,278
Distribution and shareholder services fees (Investor Shares)		151,845
Sub-Accounting fees (Investor Shares)		61,678
Accounting and administration fees		55,008
Shareholder reports		29,991
Registration fees		21,421
Professional fees		20,023
Trustees’ fees		6,350
Interest expense		327
Other expenses	+	15,257


Total expenses		2,226,146
Expense reduction by adviser	−	80,731
Custody credits	−	432


Net expenses		2,144,983


Increase (Decrease) in Net Assets from Operations
Total investment income		6,118,856
Net expenses	−	2,144,983


Net investment income		3,973,873
Net realized losses		(17,006,593	)
Net unrealized losses	+	(65,604,901	)


Decrease in net assets from operations		($78,637,621	)

38 See financial notes

Laudus Rosenberg International Discovery Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$3,973,873			$1,728,062
Net realized losses			(17,006,593	)		(2,339,694	)
Net unrealized losses	+		(65,604,901	)		(14,507,335	)


Decrease in net assets from operations			(78,637,621	)		(15,118,967	)


Distributions to Shareholders¹
Distributions from net investment income
Investor Shares			—			(1,224,195	)
Select Shares	+		—			(720,949	)


Total distributions from net investment income			—			(1,945,144	)


Distributions from net realized gains
Investor Shares			—			(5,727,789	)
Select Shares	+		—			(2,753,798	)


Total distributions from net realized gains			—			(8,481,587	)

Total distributions			$-			($10,426,731	)

Transactions in Fund Shares¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			1,810,670			$20,332,882			11,324,623			$144,113,465
Select Shares	+		16,921,175			170,968,573			11,862,466			145,518,579


Total shares sold			18,731,845			$191,301,455			23,187,089			$289,632,044


Shares Reinvested
Investor Shares			—			$-			545,156			$6,361,968
Select Shares	+		—			—			203,036			2,373,494


Total shares reinvested			—			$-			748,192			$8,735,462


Shares Redeemed
Investor Shares			(1,907,107	)		($20,513,100	)		(5,484,170	)		($64,769,656	)
Select Shares	+		(3,584,393	)		(36,940,522	)		(1,465,877	)		(17,223,557	)


Total shares redeemed			(5,491,500	)		($57,453,622	)		(6,950,047	)		($81,993,213	)

Net transactions in fund shares			13,240,345			$133,847,833			16,985,234			$216,374,293


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			22,861,948			$261,573,193			5,876,714			$70,744,598
Total increase	+		13,240,345			55,210,212			16,985,234			190,828,595


End of period			36,102,293			$316,783,405			22,861,948			$261,573,193


Net investment income not yet distributed						$4,332,695						$358,822


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

See financial notes 39

Laudus Rosenberg International Small Capitalization Fund

Financial Statements

Financial Highlights


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Investor Shares	9/30/08*			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		16.74			22.38			20.74			16.73			13.83			7.87

Income (loss) from investment operations:
Net investment income (loss)		0.24			0.36			0.20			0.08			0.03	¹		0.03	¹
Net realized and unrealized gains (losses)		(4.20	)		(2.60	)		3.82			4.89			3.51			6.01

Total from investment operations		(3.96	)		(2.24	)		4.02			4.97			3.54			6.04
Less distributions:
Distributions from net investment income		—			(0.63	)		(0.30	)		(0.04	)		(0.02	)		(0.08	)
Distributions from net realized gains		—			(2.77	)		(2.08	)		(0.92	)		(0.62	)		—

Total distributions		—			(3.40	)		(2.38	)		(0.96	)		(0.64	)		(0.08	)

Net asset value at end of period		12.78			16.74			22.38			20.74			16.73			13.83

Total return (%)		(23.66	)²		(10.27	)		20.35			30.48			26.16			76.91

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.46	³		1.45			1.47			1.60			1.83			1.75
Gross operating expenses		1.46	³		1.45			1.47			1.60			1.88			2.18
Net investment income (loss)		2.56	³		1.55			0.87			0.42			0.20			0.28
Portfolio turnover rate		38	²		105			92			102			60			103
Net assets, end of period ($ x 1,000)		321,341			523,709			882,163			804,340			355,766			82,780


	4/1/08-			4/1/07-			4/1/06-			4/1/05-			4/1/04-			4/1/03-
Select Shares	*9/30/08^,4**			3/31/08			3/31/07			3/31/06			3/31/05			3/31/04


Per—Share Data ($)

Net asset value at beginning of period		16.97			22.67			20.97			16.89			13.94			7.92

Income (loss) from investment operations:
Net investment income (loss)		0.24			0.34			0.26			0.13			0.08	¹		0.07	¹
Net realized and unrealized gains (losses)		(4.23	)		(2.55	)		3.90			4.95			3.53			6.04

Total from investment operations		(3.99	)		(2.21	)		4.16			5.08			3.61			6.11
Less distributions:
Distributions from net investment income		—			(0.73	)		(0.38	)		(0.08	)		(0.04	)		(0.09	)
Distributions from net realized gains		—			(2.76	)		(2.08	)		(0.92	)		(0.62	)		—

Total distributions		—			(3.49	)		(2.46	)		(1.00	)		(0.66	)		(0.09	)

Net asset value at end of period		12.98			16.97			22.67			20.97			16.89			13.94

Total return (%)		(23.51	)²		(9.97	)		20.82			30.90			26.52			77.37

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		1.11	³		1.09			1.10			1.25			1.49			1.47
Gross operating expenses		1.11	³		1.09			1.10			1.25			1.55			1.94
Net investment income (loss)		2.90	³		1.87			1.21			0.85			0.50			0.65
Portfolio turnover rate		38	²		105			92			102			60			103
Net assets, end of period ($ x 1,000)		404,198			612,703			1,048,829			698,064			270,646			70,382

* Unaudited

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

² Not annualized.

³ Annualized.

⁴ Effective July 31, 2008, the Institutional Shares became Select Shares.

40 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings as of September 30, 2008 (Unaudited)

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


				Cost		Value
Holdings by Category				($)		($)


	97	.0%	Common Stock		884,691,879		703,909,467
	0	.3%	Preferred Stock		3,233,345		2,204,089
		—%	Rights		—		—
		—%	Warrants		—		14,297
	1	.4%	Short-Term Investment		10,328,000		10,328,000

	98	.7%	Total Investments		898,253,224		716,455,853
	8	.1%	Collateral Invested for Securities on Loan		58,476,568		58,476,568
	(6	.8)%	Other Assets and Liabilities, Net				(49,393,233	)

	100	.0%	Net Assets				725,539,188


	Number		Value
Security	of Shares		($)





Common Stock 97.0% of net assets


Australia 4.1%


Capital Goods 0.5%
AJ Lucas Group Ltd.		142,596		645,057
Austal Ltd.		213,333		406,171
Bradken Ltd.		177,559		1,252,031
Emeco Holdings Ltd.		201,940		130,380
Macmahon Holdings Ltd. (a)		835,200		1,086,542
Monadelphous Group Ltd.		35,148		337,781

				3,857,962


Commercial & Professional Supplies 0.4%
Campbell Brothers Ltd.		33,227		848,042
Downer EDI Ltd.		365,500		1,862,183

				2,710,225


Consumer Services 0.2%
Flight Centre Ltd. (a)		67,316		1,039,716
Navitas Ltd.		79,987		144,273

				1,183,989


Diversified Financials 0.0%
Washington H. Soul Pattinson & Co. Ltd.		13,673		117,840


Energy 0.8%
Aquila Resources Ltd. *		45,464		333,339
Australian Worldwide Exploration Ltd. (a) *		378,103		772,813
Beach Petroleum Ltd.		940,300		680,023
Centennial Coal Co., Ltd. (a)		240,100		710,680
Felix Resources Ltd.		144,900		1,980,301
New Hope Corp., Ltd.		316,900		1,100,489
Queensland Gas Co., Ltd. (a) *		34,500		112,393

				5,690,038


Food & Staples Retailing 0.0%
Metcash Ltd.		21,000		67,223


Food, Beverage & Tobacco 0.4%
Goodman Fielder Ltd.		943,759		1,070,594
Lion Nathan Ltd.		261,900		1,960,805

				3,031,399


Insurance 0.0%
Tower Australia Group Ltd.		83,100		193,237


Materials 1.5%
Aditya Birla Minerals Ltd.		170,153		157,108
Ausdrill Ltd.		556,300		779,603
Coal of Africa Ltd. *		23,133		46,026
Great Southern Ltd. (a)		179,372		60,871
Incitec Pivot Ltd.		734,000		2,940,821
Macarthur Coal Ltd.		81,000		685,783
Mount Gibson Iron Ltd. (a) *		875,300		1,166,061
National Can Industries Ltd.		7,925		8,611
OM Holdings Ltd.		484,600		770,940
OneSteel Ltd. (a)		94,400		349,195
Portman Ltd. *		116,500		1,965,586
Sims Group Ltd.		3,241		78,525
Straits Resources Ltd.		306,951		598,510
TFS Corp., Ltd.		747,416		694,235
Western Areas NL (a) *		45,100		272,369

				10,574,244


Media 0.1%
Amalgamated Holdings Ltd.		118,887		468,511


Retailing 0.1%
JB Hi-Fi Ltd. (a)		80,800		799,116


Software & Services 0.0%
Data#3 Ltd.		34,002		157,038


Telecommunication Services 0.1%
iiNET Ltd.		429,275		472,346


Utilities 0.0%
AGL Energy Ltd.		1,100		12,131
Energy Developments Ltd.		41,300		82,409

				94,540

				29,417,708


Austria 0.0%


Consumer Durables & Apparel 0.0%
Linz Textil Holding AG		158		34,466


Diversified Financials 0.0%
Wiener Privatbank Immobillieninvest AG		425		10,821


Software & Services 0.0%
S&T System Integration & Technology Distribution AG *		4,341		200,472

				245,759

See financial notes 41

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Belgium 2.6%


Capital Goods 0.0%
Moury Construct S.A.		224		21,602
Societe Anonyme Belge de Constructions Aeronautques		681		19,174

				40,776


Consumer Durables & Apparel 0.0%
Jensen Group N.V.		12,000		133,095


Diversified Financials 0.1%
Banque Nationale de Belgique		219		847,168
Cie Auxiliaire des Mines		17		11,966

				859,134


Energy 0.2%
Euronav S.A.		47,998		1,327,117


Food & Staples Retailing 0.4%
Delhaize Group		45,132		2,621,459


Food, Beverage & Tobacco 0.0%
Pinguin N.V. *		313		5,565
Sipef N.V.		323		128,231

				133,796


Materials 1.6%
Recticel S.A.		49,772		534,888
Solvay S.A.		4,258		522,668
Tessenderlo Chemie N.V.		66,754		3,342,964
Umicore		238,280		7,358,574

				11,759,094


Real Estate 0.0%
Immobel		2,752		141,005


Retailing 0.2%
S.A. D’Ieteren N.V.		7,336		1,658,065


Technology Hardware & Equipment 0.1%
Barco N.V.		4,577		208,053
Integrated Production & Test Engineering *		642		3,390
Punch International N.V. *		980		74,076

				285,519


Transportation 0.0%
Compagnie Maritime Belge S.A.		3,689		148,654

				19,107,714


Canada 6.9%


Automobiles & Components 0.3%
Linamar Corp.		100,100		940,568
Martinrea International, Inc. *		197,760		1,129,792

				2,070,360


Banks 0.2%
Laurentian Bank Of Canada (a)		45,400		1,621,048


Capital Goods 0.1%
Russel Metals, Inc.		130		2,809
Toromont Industries Ltd.		38,500		953,592

				956,401


Diversified Financials 0.0%
Dundee Corp., Class A *		3,900		38,221


Energy 2.1%
Addax Petroleum Corp.		30,880		838,265
AltaGas Income Trust		86,100		1,925,469
Daylight Resources Trust		93,810		899,095
Ensign Energy Services, Inc.		33,700		528,180
Flint Energy Services Ltd. *		94,000		949,495
Freehold Royalty Trust (a)		94,800		1,523,214
Keyera Facilities Income Fund		43,830		838,505
Mullen Group Income Fund		91,770		1,465,043
Penn West Energy Trust		50,677		1,205,201
Precision Drilling Trust		300		4,933
Progress Energy Trust		74,700		845,793
Provident Energy Trust		176,965		1,579,673
Savanna Energy Services Corp.		109,710		1,594,751
Tanganyika Oil Co., Ltd. (a) *		4,904		129,898
Trinidad Drilling Ltd.		12,600		116,617
Vermilion Energy Trust		34,990		1,119,811

				15,563,943


Food & Staples Retailing 0.0%
Empire Co., Ltd., Class A		7,800		312,806


Food, Beverage & Tobacco 0.2%
Viterra, Inc. *		127,160		1,215,144


Insurance 0.3%
Industrial Alliance Insurance & Financial Services, Inc.		58,700		1,864,280


Materials 1.5%
Agrium, Inc.		16,092		899,670
Canfor Corp. (a) *		200,750		1,539,225
IAMGOLD Corp.		368,500		2,032,506
Labrador Iron Ore Royalty Income Fund		22,700		964,097
Methanex Corp.		47,880		938,030
West Fraser Timber Co., Ltd.		39,500		1,294,954
Yamana Gold, Inc.		348,620		2,866,267

				10,534,749


Media 0.2%
Quebecor, Inc., Class B		62,390		1,474,380


Pharmaceuticals & Biotechnology 0.2%
MDS, Inc. *		121,800		1,454,619


Real Estate 0.4%
BPO Properties Ltd.		400		17,853
Calloway Real Estate Investment Trust		66,920		1,173,340
MI Developments, Inc., Class A		83,640		1,545,090

				2,736,283


Retailing 0.1%
Leon’s Furniture Ltd.		59,000		650,289


Software & Services 0.4%
CGI Group, Inc., Class A *		91,450		800,000
Open Text Corp. (a) *		60,700		2,013,922

				2,813,922


Technology Hardware & Equipment 0.2%
Celestica, Inc. (a) *		260,300		1,628,939


Utilities 0.7%
ATCO Ltd., Class I		49,800		1,806,230
Emera, Inc. (a)		95,960		1,908,831
Energy Savings Income Fund		101,620		1,264,222

42 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Fortis, Inc.		15,400		347,866

				5,327,149

				50,262,533


China 0.3%


Consumer Durables & Apparel 0.1%
Weiqiao Textile Co., Ltd., Class H		927,000		454,789


Pharmaceuticals & Biotechnology 0.0%
China Shineway Pharmaceutical Group Ltd.		18,000		12,834


Technology Hardware & Equipment 0.0%
Digital China Holdings Ltd.		119,000		39,516
Great Wall Technology Co., Ltd., Class H *		2,008,000		223,322

				262,838


Transportation 0.2%
Sichuan Expressway Co., Ltd., Class H		6,015,000		1,302,944

				2,033,405


Denmark 0.8%


Banks 0.1%
Aktieselskabet Ringkjoebing Bank		175		11,685
Amagerbanken A/S (a)		68,184		1,105,740
Ostjydsk Bank A/S		658		66,421

				1,183,846


Capital Goods 0.2%
DLH A/S, Class B		34,332		294,657
Monberg & Thorsen A/S, Class B		5,835		293,559
Ove Arkil Holding A/S, Class B		899		140,127
Per Aarsleff A/S, Class B		7,416		699,655

				1,427,998


Materials 0.4%
Auriga Industries A/S, Class B		106,963		2,722,371


Real Estate 0.0%
TK Development A/S *		5,670		29,955
Tower Group A/S *		14,274		193,848

				223,803


Transportation 0.1%
DFDS A/S (a)		5,770		373,603


Utilities 0.0%
Renewagy A/S *		1,470		2,163

				5,933,784


Finland 1.2%


Capital Goods 0.1%
KCI Konecranes Oyj		10,965		262,206
Larox Oyj		24,816		292,892
Raute Oyj		3,604		58,574

				613,672


Materials 0.5%
Kemira Oyj (a)		266,797		3,159,512


Semiconductors & Semiconductor Equipment 0.0%
Okmetic Oyj		60,000		257,655


Software & Services 0.6%
Digia plc		73,761		296,799
TietoEnator Oyj		271,918		4,002,526

				4,299,325


Technology Hardware & Equipment 0.0%
Elektrobit Corp.		9,282		9,267
Scanfil Oyj		21,541		63,266

				72,533

				8,402,697


France 8.4%


Automobiles & Components 1.5%
PSA Peugeot Citroen		169,930		6,395,517
Valeo S.A. (a)		155,202		4,696,686

				11,092,203


Capital Goods 1.5%
Compagnie Industrielle et Financiere d’ Entreprises		2,392		200,364
Ginger (Groupe Ingenierie Europe)		8,835		185,750
Haulotte Group (a)		83,484		1,058,875
Securidev S.A.		356		9,522
Thales S.A. (a)		190,500		9,613,523

				11,068,034


Commercial & Professional Supplies 0.1%
Assystem		77,028		1,059,568


Consumer Durables & Apparel 0.3%
Thomson *		641,860		2,293,932


Consumer Services 0.1%
Compagnie des Alpes		4,130		159,891
Pierre & Vacances		3,129		211,524

				371,415


Food, Beverage & Tobacco 0.1%
Sucriere de Pithiviers Le Vieil		266		186,015
Vranken - Pommery Monopole		3,746		219,798

				405,813


Insurance 0.1%
CNP Assurances		4,835		546,114


Materials 0.9%
Arkema		97,287		3,591,573
Gascogne		1,016		78,368
Gevelot		3,516		216,344
Guillin Emballages		60		4,223
Rougier S.A.		2,620		142,899
Sequana (a)		150,169		2,119,901
Societe Anonyme d’Explosifs et de Produits Chimiques		450		188,026

				6,341,334


Media 0.6%
Havas S.A. (a)		283,516		890,456
Publicis Groupe (a)		108,809		3,427,153

				4,317,609


Real Estate 0.0%
Acanthe Developpement S.A.		37,981		101,148

See financial notes 43

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Software & Services 3.1%
Altran Technologies S.A. *		425,503		3,036,167
Atos Origin S.A.		138,685		6,103,333
Aubay		29,439		145,884
Ausy *		617		15,707
Cap Gemini S.A.		208,500		9,849,718
CS Communication & Systemes		15,959		302,104
ESI Group *		9,000		100,907
GFI Informatique		37,935		202,361
Groupe Steria S.C.A. (a)		84,021		1,876,894
Jet Multimedia		15,000		103,262
Linedata Services		2,952		34,987
Tessi S.A.		3,864		165,730
Valtech *		562,207		248,045

				22,185,099


Technology Hardware & Equipment 0.0%
Bigben Interactive *		988		9,251
HF Co.		1,890		26,765

				36,016


Transportation 0.1%
Norbert Dentressangle		8,807		717,873
Touax		8,674		391,793

				1,109,666

				60,927,951


Germany 8.5%


Automobiles & Components 0.0%
Bertrandt AG		251		7,201
Ruecker AG		25,855		254,791

				261,992


Capital Goods 2.7%
Bilfinger Berger AG		14,486		754,520
Demag Cranes AG		11,408		451,555
Deutsche Steinzeug Cremer & Breuer AG *		33,609		33,120
Deutz AG (a)		374,212		2,105,038
Duerr AG		51,356		1,413,826
Gesco AG		8,232		488,185
Gildemeister AG		170,000		2,871,033
Indus Holding AG		1,990		47,021
Krones AG		65,000		3,232,460
KSB AG		1,360		734,177
KUKA AG (a)		39,064		957,672
Muehlbauer Holding AG & Co.		5,460		162,956
Rheinmetall AG		111,000		5,974,146
Tognum AG		7,047		141,173
Westag & Getalit AG		2,631		50,373

				19,417,255


Consumer Services 0.1%
IFA Hotel & Touristik AG *		5,170		50,948
TUI AG (a)		36,358		600,578

				651,526


Diversified Financials 0.0%
ADCapital AG		498		6,448


Food & Staples Retailing 0.0%
Wasgau Produktions & Handels AG		1,500		11,910


Food, Beverage & Tobacco 0.1%
Frosta AG		4,880		112,326
Sektkellerei Schloss Wachenheim AG		21,039		160,532

				272,858


Health Care Equipment & Services 0.3%
Fresenius SE		32,365		2,375,821


Materials 4.2%
Altana AG		203,669		3,017,774
K & S AG		178,800		12,397,302
Lanxess		242,596		6,681,125
Norddeutsche Affinerie AG (a)		6,344		268,134
Salzgitter AG		80,960		8,187,123

				30,551,458


Retailing 0.0%
Essanelle Hair Group AG		2,496		28,562
Hornbach Baumarkt Aktiengesellschaft AG		2,542		135,988

				164,550


Semiconductors & Semiconductor Equipment 0.0%
ELMOS Semiconductor AG *		33,286		199,649


Software & Services 0.2%
Bechtle AG		15,839		329,812
Cancom IT Systeme AG *		42,071		180,822
Integralis AG *		33,677		216,267
PC- Ware AG		16,089		347,629
REALTECH AG		13,166		217,563
syzygy AG		53,528		236,501
USU Software AG		24,000		109,174

				1,637,768


Technology Hardware & Equipment 0.2%
Augusta Technologie AG *		21,207		411,628
Euromicron AG		25,107		466,562
Funkwerk AG		16,891		167,754
Hyrican Informationssystems AG		6,000		59,803

				1,105,747


Transportation 0.2%
D. Logistics AG *		150,322		217,179
Deutsche Lufthansa AG - Reg’d		60,270		1,178,178

				1,395,357


Utilities 0.5%
MVV Energie AG		78,000		3,667,280

				61,719,619


Greece 0.0%


Banks 0.0%
Bank of Greece		86		6,932


Hong Kong 2.5%


Banks 0.3%
Hongkong Chinese Ltd.		180,000		15,462
Industrial & Commercial Bank of China (Asia) Ltd.		1,093,000		1,989,425

				2,004,887

44 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Capital Goods 0.4%
Chen Hsong Holdings Ltd.		426,000		107,887
Chevalier International Holdings Ltd.		356,000		258,585
Miramar Hotel & Investment Co., Ltd.		326,000		356,944
Noble Group Ltd.		1,938,800		1,845,046

				2,568,462


Consumer Durables & Apparel 0.1%
High Fashion International Ltd.		60,000		15,392
Texwinca Holdings Ltd.		156,000		129,226
The Grande Holdings Ltd.		6,000		894
Truly International Holdings Ltd.		492,000		400,344
USI Holdings Ltd.		514,727		107,736

				653,592


Consumer Services 0.0%
Associated International Hotels Ltd. *		2,000		3,953
Mandarin Oriental International Ltd. (a)		152,000		235,587
Star Cruises Ltd. *		271,000		31,655

				271,195


Diversified Financials 0.3%
Allied Group Ltd.		207,600		368,054
Allied Properties (H.K.) Ltd.		2,760,000		358,529
Asia Financial Holdings Ltd.		526,000		158,185
COL Capital Ltd.		1,346,000		214,528
Guoco Group Ltd.		137,000		1,151,567
Lippo Ltd.		100,000		46,211

				2,297,074


Materials 0.0%
Minmetals Resources Ltd.		68,000		10,520


Media 0.0%
I-Cable Communications Ltd.		53,000		6,231


Real Estate 0.6%
China Motor Bus Co., Ltd.		4,000		28,970
Emperor International Holdings Ltd.		16,000		3,291
Great Eagle Holdings Ltd.		3,000		6,672
Hong Kong Ferry (Holdings) Co., Ltd.		258,280		203,769
Hopewell Holdings Ltd.		306,000		1,111,287
Melbourne Enterprises Ltd.		2,000		16,798
Pacific Century Premium Developments Ltd. *		4,308,000		1,342,014
Soundwill Holdings Ltd.		580,000		235,301
Tai Cheung Holdings Ltd.		1,203,520		490,357
Tai Sang Land Developement Ltd.		101,000		37,414
Wheelock Properties Ltd.		1,639,000		851,920

				4,327,793


Retailing 0.1%
Chow Sang Sang Holdings International Ltd.		144,000		82,862
Goldlion Holdings Ltd.		300,000		49,398
Tan Chong International Ltd.		1,254,000		209,872
Wing On Co. International Ltd.		276,500		386,424

				728,556


Software & Services 0.0%
SUNeVision Holdings Ltd.		1,050,280		98,406


Technology Hardware & Equipment 0.3%
CCT Telecom Holdings Ltd.		404,000		31,218
Champion Technology Holdings Ltd.		4,363,582		368,764
Proview International Holdings Ltd.		254,000		10,299
VTech Holdings Ltd.		344,000		2,012,000

				2,422,281


Telecommunication Services 0.1%
Asia Satellite Telecommunications Holdings Ltd.		457,500		640,571
SmarTone Telecommunications Holdings Ltd.		512,500		372,505

				1,013,076


Transportation 0.3%
Hopewell Highway Infrastructure Ltd.		182,500		126,994
Road King Infrastructure Ltd.		62,000		36,060
Safety Godown Co., Ltd.		8,000		4,101
Transport International Holdings Ltd.		651,200		1,818,245

				1,985,400

				18,387,473


Ireland 0.8%


Capital Goods 0.7%
DCC plc		251,302		4,938,130


Consumer Durables & Apparel 0.0%
Abbey plc		15,931		73,450


Food & Staples Retailing 0.1%
Total Produce plc (a)		1,415,780		818,040
Total Produce plc		192,602		107,930

				925,970


Food, Beverage & Tobacco 0.0%
Donegal Creameries plc		8,185		63,817

				6,001,367


Italy 3.5%


Automobiles & Components 0.6%
Pirelli & C. S.p.A.		7,482,000		4,414,575


Banks 0.0%
Banco di Sardegna S.p.A.		3,288		59,353


Capital Goods 1.2%
Astaldi S.p.A. (a)		315,378		2,131,129
Biesse S.p.A.		24,261		208,638
C.I.R. S.p.A. - Compagnie Industriali Riunite (a)		631,044		1,093,902
Cofide S.p.A. - Compagnia Finanziaria De Benedetti		1,827,172		1,356,388
Danieli S.p.A. - Officine Meccaniche Danieli & C. (a)		135,752		2,988,359
Gruppo Ceramiche Ricchetti S.p.A.		8,816		17,272

See financial notes 45

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Vianini Lavori S.p.A.		118,000		1,164,656

				8,960,344


Consumer Durables & Apparel 0.1%
Safilo Group S.p.A. (a)		707,096		990,038


Food, Beverage & Tobacco 0.0%
La Doria S.p.A. *		25,955		42,534


Health Care Equipment & Services 0.0%
El.En. S.p.A.		210		6,418


Household & Personal Products 0.1%
Mirato S.p.A.		51,665		510,875


Insurance 0.9%
Ergo Previdenza S.p.A.		5,407		33,600
Unipol Gruppo Finanziario S.p.A. (a)		2,850,028		6,115,723

				6,149,323


Materials 0.2%
Buzzi Unicem S.p.A. (a)		5,120		78,672
Italcementi S.p.A. (a)		63,438		785,796
KME Group		402,068		380,255

				1,244,723


Software & Services 0.1%
Engineering Ingegneria Informatica S.p.A.		29,038		785,423
Reply S.p.A.		4,268		116,631

				902,054


Technology Hardware & Equipment 0.0%
Gefran S.p.A.		39,000		217,665


Transportation 0.0%
Autostrade Meridionali S.p.A.		216		3,634


Utilities 0.3%
ACEA S.p.A.		26,526		379,904
Iride S.p.A.		795,689		1,756,360

				2,136,264

				25,637,800


Japan 18.2%


Automobiles & Components 1.0%
Ahresty Corp.		5,500		48,458
Aisan Industry Co., Ltd.		45,500		274,642
Ashimori Industry Co., Ltd.		133,000		232,886
Calsonic Kansei Corp.		23,000		65,961
HI-LEX Corp.		73,000		779,386
Ichishin Co., Ltd.		30,000		85,698
Mikuni Corp.		28,000		44,825
Murakami Corp.		2,000		12,315
NGK Spark Plug Co., Ltd. (a)		63,000		613,317
NHK Spring Co., Ltd.		56,000		310,583
Nihon Plast Co., Ltd.		10,600		46,415
Nittan Valve Co., Ltd. (a)		5,100		22,553
Piolax, Inc.		100		1,694
Showa Corp.		40,600		248,109
SOFT99 Corp.		29,500		139,703
Sumitomo Rubber Industries, Ltd.		260,000		2,316,332
Suncall Corp.		27,000		106,365
Tigers Polymer Corp.		8,300		31,528
Topre Corp.		129,200		883,467
TS Tech Co., Ltd.		72,300		696,675
Univance Corp.		9,600		37,495

				6,998,407


Banks 2.0%
Fukuoka Financial Group, Inc.		185,000		680,799
Sapporo Hokuyo Holdings, Inc.		219		1,096,295
The Aichi Bank Ltd.		26,600		1,842,965
The Akita Bank Ltd.		1,000		3,827
The Biwako Bank Ltd.		3,000		3,862
The Chiba Kogyo Bank Ltd. *		11,100		126,563
The Daishi Bank Ltd.		14,000		55,278
The Ehime Bank Ltd.		92,000		256,919
The Eighteenth Bank Ltd.		403,000		1,057,470
The Higashi-Nippon Bank Ltd.		367,000		999,940
The Higo Bank Ltd.		51,000		293,171
The Hokuetsu Bank Ltd.		11,000		22,749
The Hyakugo Bank Ltd.		314,000		1,779,754
The Hyakujushi Bank Ltd.		26,000		145,604
The Kagawa Bank Ltd.		43,000		201,469
The Keiyo Bank Ltd.		141,000		677,786
The Kita-Nippon Bank Ltd.		5,100		132,510
The Mie Bank Ltd. (a)		81,000		329,728
The Minato Bank Ltd.		13,000		18,298
The Nishi-Nippon City Bank Ltd.		454,000		1,133,638
The San-in Godo Bank Ltd.		210,000		1,626,785
The Taiko Bank Ltd.		63,000		132,745
The Tochigi Bank Ltd.		62,000		330,433
The Toho Bank Ltd.		44,000		171,222
The Yachiyo Bank Ltd.		144		316,733
The Yamanashi Chuo Bank Ltd.		158,000		782,965

				14,219,508


Capital Goods 4.4%
Aichi Electric Co., Ltd.		3,000		5,853
Aida Engineering Ltd.		210,400		872,432
Amada Co., Ltd.		274,000		1,504,760
Amano Corp. (a)		73,800		591,464
C-Cube Corp.		85,000		238,113
Chodai Co., Ltd.		23,000		62,839
Chudenko Corp. (a)		92,500		1,390,333
CKD Corp. (a)		13,000		56,579
CTI Engineering Co., Ltd.		44,100		256,186
Daiichi Kensetu Corp.		10,000		65,388
Denkyosha Co., Ltd.		20,000		96,225
Ebara Corp. (a)		29,000		76,653
Fuji Electric Holdings Co., Ltd. (a)		592,000		1,430,009
Fuji Machine Manufacturing Co., Ltd.		121,600		1,474,345
Furusato Industries Ltd.		24,000		206,723
Futaba Corp. (a)		89,600		1,575,983
Inabata & Co., Ltd.		18,900		67,285
Ishikawajima Transportation Machinery Co., Ltd.		43,000		131,748
Japan Pulp & Paper Co., Ltd.		247,000		813,616
Kamei Corp.		93,000		359,342
Kanaden Corp.		106,000		499,890
Kanematsu Corp. *		44,000		42,577
Kioritz Corp.		211,000		399,026
Koatsu Kogyo Co., Ltd.		25,000		67,698
Komori Corp.		110,800		1,488,693
Kowa Spinning Co., Ltd.		12,000		35,329

46 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Kuroda Electric Co., Ltd. (a)		1,900		17,856
Maeda Corp. (a)		140,000		434,861
Maeda Road Construction Co., Ltd.		93,000		601,646
Marufuji Sheet Piling Co., Ltd.		29,000		53,994
Minebea Co., Ltd.		133,000		498,830
Mitani Corp.		28,100		159,820
Miyachi Corp. (a)		33,200		282,925
Musashi Co., Ltd.		500		7,554
Nagase & Co., Ltd.		157,000		1,461,277
Nakano Refrigerators Co., Ltd.		1,800		13,915
Nichireki Co., Ltd.		11,000		27,872
Nihon Decoluxe Co., Ltd.		2,000		8,556
Nippo Corp.		244,000		1,377,218
Nippon Thompson Co., Ltd.		208,000		881,136
Nishimatsu Construction Co., Ltd. (a)		753,000		1,733,467
Nissei Plastic Industrial Co., Ltd.		74,600		257,762
Nitto Kogyo Corp.		114,200		841,493
Noritake Co., Ltd.		16,000		52,347
Ohmoto Gumi Co., Ltd.		34,000		113,004
Okaya & Co., Ltd.		500		5,210
Oki Wintech Co., Ltd.		34,000		175,507
Original Engineering Consultants Co., Ltd.		7,500		13,328
Rheon Automatic Machinery Co., Ltd.		2,000		5,832
Sankyo Rikagaku Co., Ltd.		17,000		185,574
Sanso Electric Co., Ltd. *		30,000		80,955
Sanwa Holdings Corp. (a)		447,000		1,688,307
Seibu Electric Industry Co., Ltd.		66,000		289,807
ShinMaywa Industries Ltd.		301,000		893,635
Sintokogio Ltd.		33,400		209,600
Sojitz Corp.		679,400		1,574,656
Sugimoto & Co., Ltd.		3,100		31,714
Taisei Oncho Co., Ltd.		44,000		139,970
Taisei Rotec Corp.		257,000		416,617
Takeuchi Mfg Co., Ltd. (a)		43,900		578,458
The Nippon Road Co., Ltd.		213,000		237,086
Toenec Corp.		25,000		126,996
Totech Corp.		42,000		123,633
Trinity Industrial Corp.		1,000		4,547
Trusco Nakayama Corp. (a)		93,500		1,241,432
Tsurumi Manufacturing Co., Ltd.		14,000		89,043
Tsuzuki Denki Co., Ltd.		5,000		13,771
Uehara Sei Shoji Co., Ltd.		51,000		160,746
Wakita & Co., Ltd.		49,000		204,779
Yondenko Corp.		124,000		612,642
Yurtec Corp.		9,000		37,294

				31,775,761


Commercial & Professional Supplies 0.0%
EJ Holdings, Inc.		110		14,518
FujiStaff Holdings, Inc.		40		6,288
Kawanishi Warehouse Co., Ltd.		7,000		44,624
Kimura Unity Co., Ltd.		2,500		18,376
Wesco, Inc.		51,300		84,837

				168,643


Consumer Durables & Apparel 0.8%
Charle Co., Ltd.		500		3,713
Corona Corp.		44,900		470,209
Fuji Corp.		16,000		102,299
Fujishoji Co., Ltd.		84		84,193
Fujix Ltd.		11,000		40,960
Hitachi Koki Co., Ltd. (a)		115,200		1,174,757
Ichikawa Co., Ltd.		79,000		229,554
Jichodo Co., Ltd.		16,000		117,031
Kurabo Industries Ltd.		720,000		1,264,809
Kyowa Leather Cloth Co., Ltd.		2,000		9,408
Maruzen Co., Ltd.		3,000		11,899
Mitsui Home Co., Ltd.		3,000		14,333
Miyuki Holdings Co., Ltd.		12,000		27,697
Onward Holdings Co., Ltd.		3,000		31,375
PanaHome Corp.		1,000		5,594
Roland Corp.		66,400		857,142
SRI Sports Ltd.		459		439,411
Tachikawa Corp.		60,300		256,163
Tokyo Style Co., Ltd.		83,000		701,447
Toso Co., Ltd.		39,000		78,473

				5,920,467


Consumer Services 0.1%
Daisyo Corp. (a)		32,100		331,287
Eikoh, Inc.		11,700		39,676
Johnan Academic Preparatory Institute, Inc.		14,000		17,244
Nippon Game Card Corp.		11		12,338
Royal Holdings Co., Ltd. (a)		10,900		96,974
Shidax Corp.		1,063		402,003
Shingakukai Co., Ltd.		44,600		158,060

				1,057,582


Diversified Financials 0.3%
Daiko Clearing Services Corp.		41,300		279,424
Hitachi Capital Corp.		78,800		959,509
SFCG Co., Ltd. (a)		3,210		146,169
Takagi Securities Co., Ltd.		67,000		127,072
Takefuji Corp. (a)		48,200		627,234

				2,139,408


Energy 0.3%
Itochu Enex Co., Ltd.		500		3,230
Japan Petroleum Exploration Co., Ltd.		31,600		1,622,119
Kanto Natural Gas Development Co., Ltd. (a)		22,000		121,579
Sinanen Co., Ltd.		29,000		110,245

				1,857,173


Food & Staples Retailing 0.3%
Cawachi Ltd.		66,800		1,265,953
Heiwado Co., Ltd.		15,100		216,030
Itochu-Shokuhin Co., Ltd. (a)		2,400		78,291
Kasumi Co., Ltd. (a)		67,000		363,359
Marukyo Corp.		8,000		39,765
Maxvalu Nishinihon Co., Ltd.		1,400		18,695
Okuwa Co., Ltd.		2,000		29,888
Poplar Co., Ltd.		1,900		11,041
Tokan Co., Ltd.		1,000		14,614
Universe Co., Ltd.		5,300		58,159
Uny Co., Ltd.		27,000		274,755

				2,370,550


Food, Beverage & Tobacco 1.0%
Coca-Cola Central Japan Co., Ltd.		205		1,216,206
Marudai Food Co., Ltd.		3,000		6,467

See financial notes 47

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Meiji Seika Kaisha Ltd. (a)		333,000		1,522,353
Mercian Corp.		222,000		431,569
Mikuni Coca-Cola Bottling Co., Ltd.		130,100		1,137,956
Morinaga Milk Industry Co., Ltd.		85,000		243,226
Nichiwa Sangyo Co., Ltd.		57,000		108,079
Nippon Beet Sugar Manufacturing Co., Ltd. (a)		325,000		663,236
Nippon Flour Mills Co., Ltd.		36,000		179,336
Nissin Sugar Manufacturing Co., Ltd.		115,000		259,723
Q.P. Corp. (a)		134,100		1,246,830
Sonton Food Industry Co., Ltd.		31,000		209,152
Tokatsu Foods Co., Ltd.		60,000		302,948
Yonekyu Corp.		10,000		100,624

				7,627,705


Health Care Equipment & Services 0.2%
Aloka Co., Ltd.		2,600		25,939
BML, Inc.		300		5,165
Create Medic Co., Ltd.		6,000		49,948
Fukuda Denshi Co., Ltd.		12,700		242,514
Hitachi Medical Corp.		102,000		829,128
JMS Co., Ltd.		20,000		53,170
Kawasumi Laboratories, Inc.		2,000		9,027
N.I.C. Corp. (a)		43,600		160,169
Nissui Pharmaceutical Co., Ltd.		3,700		25,017
Tokiwa Yakuhin Co., Ltd.		11,000		36,762

				1,436,839


Household & Personal Products 0.2%
Kose Corp.		46,800		1,302,273
Lion Corp. (a)		25,000		133,765
Mandom Corp.		6,900		182,913

				1,618,951


Insurance 0.0%
The Fuji Fire & Marine Insurance Co., Ltd.		29,000		67,130


Materials 3.5%
Arakawa Chemical Industrial Ltd.		17,500		158,658
Asahi Industries Co., Ltd.		205		234,810
Atomix Co., Ltd.		3,000		9,590
Chubu Steel Plate Co., Ltd.		105,300		816,951
Denki Kagaku Kogyo Kabushiki Kaisha		539,000		1,418,001
DIC Corp.		475,000		899,612
Hitachi Chemical Co., Ltd.		15,100		202,632
Kaneka Corp.		217,000		1,198,770
Kansai Paint Co., Ltd. (a)		17,000		105,444
Kyoei Steel Ltd. (a)		69,500		1,338,422
Mitsubishi Gas Chemical Co., Inc.		278,000		1,344,475
Mitsubishi Rayon Co., Ltd. (a)		388,000		960,900
Mitsui Chemicals, Inc.		88,000		387,953
Mory Industries, Inc.		120,000		302,670
N.E. Chemcat Corp. (a)		41,000		658,465
Nichia Steel Works Ltd.		126,000		422,068
Nihon Yamamura Glass Co., Ltd.		235,000		404,746
Nippon Chemical Industrial Co., Ltd.		28,000		57,921
Nippon Kodoshi Corp.		1,000		6,593
Nippon Light Metal Co., Ltd.		274,000		321,678
Nippon Shokubai Co., Ltd. (a)		74,000		474,384
Nisshin Steel Co., Ltd. (a)		758,000		1,466,306
Nitto FC Co., Ltd.		5,000		21,907
Osaka Steel Co., Ltd.		109,900		1,428,307
Pacific Metals Co., Ltd. (a)		80,000		580,039
Sakai Chemical Industry Co., Ltd.		293,000		793,195
SK Kaken Co., Ltd.		2,000		44,756
Soken Chemical & Engineering Co., Ltd.		100		798
Sumitomo Seika Chemicals Co., Ltd.		174,000		527,530
Teijin Ltd.		145,000		435,704
Tokuyama Corp.		217,000		1,259,080
Tokyo Ohka Kogyo Co., Ltd.		18,200		288,457
Tokyo Tekko Co., Ltd.		142,000		342,341
Topy Industries Ltd.		572,000		1,583,649
Tosoh Corp. (a)		674,000		1,988,869
Toyo Ink Mfg. Co., Ltd.		318,000		939,156
Yodogawa Steel Works Ltd.		375,000		1,680,461

				25,105,298


Media 0.3%
Chubu-Nippon Broadcasting Co., Ltd.		800		4,684
Daiichikosho Co., Ltd.		28,000		288,369
RKB Mainichi Broadcasting Corp.		37,000		277,965
Sky Perfect JSAT Holdings, Inc. (a)		2,552		978,412
TV Asahi Corp.		405		566,917

				2,116,347


Pharmaceuticals & Biotechnology 0.5%
Dainippon Sumitomo Pharma Co., Ltd. (a)		70,000		573,437
Nippon Shinyaku Co., Ltd.		157,000		1,494,519
Seikagaku Corp.		20,200		196,033
Torii Pharmaceutical Co., Ltd.		77,900		1,089,731

				3,353,720


Real Estate 0.1%
Hosoda Corp.		51,600		113,049
Leopalace21 Corp.		19,100		147,691
Nisshin Fudosan Co., Ltd.		68,700		224,804
Sankyo Frontier Co., Ltd.		64,000		122,890
Yuraku Real Estate Co., Ltd.		66,000		80,436

				688,870


Retailing 0.9%
AOKl Holdings, Inc.		80,200		816,957
Aoyama Trading Co., Ltd. (a)		102,500		1,369,613
AT-Group Co., Ltd.		20,000		173,425
Belluna Co., Ltd. (a)		120,300		542,414
Daiwa Co., Ltd.		89,000		117,155
Felissimo Corp.		2,200		42,971
Fujitsu Business Systems Ltd.		76,900		1,007,476
H2O Retailing Corp.		64,000		389,729
Haruyama Trading Co., Ltd. (a)		21,900		93,713
Hikari Furniture Co., Ltd.		1,000		3,958
Kato Sangyo Co., Ltd.		200		2,389
King Co., Ltd.		64,000		130,175
Kitamura Co., Ltd.		2,100		9,742
Ku Co., Ltd.		57,600		168,659

48 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Mac House Co., Ltd.		8,900		55,698
Nafco Co., Ltd.		40,100		545,325
Nagahori Corp.		52,000		114,409
Sazaby League, Ltd. (a)		45,800		603,653
Senshukai Co., Ltd. (a)		82,700		544,308
Shichie Co., Ltd.		24,000		128,121

				6,859,890


Semiconductors & Semiconductor Equipment 0.1%
Aoi Electronics Co., Ltd.		3,000		25,544
Micronics Japan Co., Ltd.		100		1,417
Mimasu Semiconductor Industry Co., Ltd.		1,300		17,276
Mitsui High-tec, Inc. (a)		143,800		895,647

				939,884


Software & Services 0.2%
Argo Graphics, Inc.		1,500		17,623
Atlus Co., Ltd.		4,100		18,782
Computer Engineering & Consulting Ltd.		1,000		8,490
Cybernet Systems Co., Ltd.		14		5,179
Hitachi System & Services Ltd.		400		5,343
Information Services International-Dentsu Ltd.		5,800		37,291
Japan Process Development Co., Ltd.		16,700		115,442
NEC Fielding Ltd.		102,900		981,393
Nifty Corp.		33		26,963

				1,216,506


Technology Hardware & Equipment 1.2%
Alps Electric Co., Ltd. (a)		1,600		12,525
Canon Electronics, Inc.		500		8,080
Daishinku Corp.		113,000		375,483
Fujitsu Frontech Ltd.		2,000		18,292
Furuno Electric Co., Ltd.		42,200		366,533
Hagiwara Electric Co., Ltd.		700		4,850
Hakuto Co., Ltd.		64,300		505,794
Hitachi Maxell Ltd.		143,300		1,537,212
Japan Aviation Electronics Industry Ltd. (a)		17,000		80,058
Japan Digital Laboratory Co., Ltd.		106,200		1,155,763
Katsuragawa Electric Co., Ltd.		3,000		16,447
Kitagawa Industries Co., Ltd.		9,700		116,379
Macnica, Inc.		1,100		14,351
Nichicon Corp.		200,000		1,369,647
Nippon Antenna Co., Ltd.		3,200		18,368
Riso Kagaku Corp.		51,600		600,101
Roland DG Corp. (a)		3,200		58,931
Ryoden Trading Co., Ltd.		40,000		212,537
Ryoyo Electro Corp. (a)		85,400		726,695
Sun-Wa Technos Corp.		400		2,586
Tachibana Eletech Co., Ltd.		1,100		7,964
Toshiba Tec Corp.		209,000		823,264
Tsuzuki Densan Co., Ltd.		31,700		100,584
Yokogawa Electric Corp.		106,000		673,033

				8,805,477


Telecommunication Services 0.0%
Acca Networks Co., Ltd. (a)		42		34,751
Okinawa Cellular Telephone Co.		35		53,433

				88,184


Transportation 0.8%
Alps Logistics Co., Ltd.		5,500		53,605
i-Logistics Corp.		2,000		4,061
Isewan Terminal Service Co., Ltd.		80,000		372,266
Kamigumi Co., Ltd.		218,000		1,637,628
Kawasaki Kinkai Kisen Kaisha Ltd.		5,000		15,516
Keisei Electric Railway Co., Ltd.		362,000		1,993,069
Meiko Trans Co., Ltd.		25,000		240,427
Nippon Konpo Unyu Soko Co., Ltd.		3,000		28,050
Seino Holdings Co., Ltd.		247,000		1,164,972
Tokyo Kisen Co., Ltd.		1,000		5,646

				5,515,240


Utilities 0.0%
Hokuriku Gas Co., Ltd.		5,000		14,404
Keiyo Gas Co., Ltd.		49,000		180,550
Otaki Gas Co., Ltd.		16,000		106,639
The Chubu Gas Co., Ltd.		1,000		2,418

				304,011

				132,251,551


Liechtenstein 0.0%


Diversified Financials 0.0%
Verwaltungs-und Privat-Bank AG		296		47,752


Luxembourg 0.4%


Household & Personal Products 0.1%
Oriflame Cosmetics S.A. SDR (a)		9,241		428,097


Telecommunication Services 0.3%
COLT Telecom Group S.A. *		1,149,000		2,077,992


Transportation 0.0%
Logwin AG *		4,768		7,015

				2,513,104


Malaysia 0.0%


Real Estate 0.0%
Rekapacific Berhad (b)(c)(d) *		24,000		—


Netherlands 3.0%


Commercial & Professional Supplies 0.0%
Teleplan International N.V. *		6,975		10,212


Materials 2.1%
Crown Van Gelder N.V. CVA		6,200		77,180
Koninklijke DSM N.V.		324,002		15,325,178

				15,402,358


Media 0.0%
DOCdata N.V.		26,000		219,666


Semiconductors & Semiconductor Equipment 0.1%
BE Semiconductor Industries N.V. (a) *		68,723		282,292

See financial notes 49

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Software & Services 0.0%
ICT Automatisering N.V.		8,463		87,260
Lycos Europe N.V. *		46,366		21,541

				108,801


Technology Hardware & Equipment 0.8%
Gemalto N.V. *		154,000		5,555,604

				21,578,933


New Zealand 0.6%


Consumer Services 0.1%
Millennium & Capthorne Hotels New Zealand Ltd.		1,145,922		468,606


Materials 0.3%
Nufarm Ltd.		156,600		1,916,824


Retailing 0.0%
Hallenstein Glasson Holdings Ltd.		52,084		88,890
The Warehouse Group Ltd.		16,100		32,500

				121,390


Transportation 0.1%
Air New Zealand Ltd. (a)		1,052,114		679,158
Tourism Holdings Ltd.		217,789		176,836

				855,994


Utilities 0.1%
Vector Ltd. (a)		823,300		1,162,799

				4,525,613


Norway 0.0%


Energy 0.0%
Farstad Shipping A.S.A.		1,065		21,575


Transportation 0.0%
Fosen AB		187		15,119

				36,694


Papua New Guinea 0.1%


Energy 0.1%
Oil Search Ltd.		86,500		387,112


Portugal 0.5%


Capital Goods 0.2%
Grupo Soares da Costa, SGPS S.A. *		585,317		1,080,903


Consumer Services 0.0%
Ibersol - SGPS, S.A.		4,941		40,840


Materials 0.3%
Corticeira Amorim S.A.		3,256		6,044
Semapa - Sociedade de Investimento e Gestao, SGPS, S.A.		249,825		2,469,396

				2,475,440


Software & Services 0.0%
Novabase, SGPS, S.A. *		25,210		176,418
Reditus - Sociedade Gestora de Participacoes Socials, S.A. *		4,648		52,206

				228,624

				3,825,807


Republic of Korea 3.6%


Automobiles & Components 0.1%
Dong-Il Corp.		3,543		186,178
Global & Yuasa Battery Co., Ltd.		27,510		363,801
Halla Climate Control Corp.		6,520		57,408
Motonic Corp.		4,200		26,064

				633,451


Banks 0.1%
Cheju Bank Ltd. *		1,530		9,465
Jinheung Mutual Savings Bank Co., Ltd.		153,170		469,537
Korea Mutual Savings Bank		1,780		29,088

				508,090


Capital Goods 0.6%
Daesang Holdings Co., Ltd.		47,150		154,586
Doosan Corp. *		19,770		1,989,393
Hanil Construction Industry Co.		34,893		185,932
Hanshin Construction Co., Ltd.		10,500		123,828
KCC Engineering & Construction Co., Ltd.		13,224		378,572
Kunsul Chemical Industrial Co., Ltd.		1,530		18,698
Kyeryong Construction Industrial Co., Ltd.		27,870		430,610
Sambu Construction Co., Ltd.		3,921		78,721
Samho International Co., Ltd.		45,330		287,582
Samwhan Corp.		34,370		402,328
Shinsegae Engineering & Construction Co., Ltd.		6,390		93,072

				4,143,322


Consumer Durables & Apparel 0.3%
Cheil Industries, Inc.		25,010		1,098,649
Shinwon Corp.		185,700		287,459
Youngone Corp.		135,220		1,027,905

				2,414,013


Diversified Financials 0.0%
Shinyoung Securities Co., Ltd.		893		30,397


Energy 0.1%
SK Gas Co., Ltd.		13,456		725,620


Food, Beverage & Tobacco 0.3%
Dongwon Industries Co., Ltd.		3,021		242,076
Jinro Distillers Co., Ltd.		241		2,859
Muhak Co., Ltd.		19,835		101,949
Namyang Dairy Products Co., Ltd.		1,804		872,891
Nong Shim Holdings Co., Ltd.		790		44,529
Ottogi Corp.		1,444		188,473
Samyang Corp.		7,269		225,025
TS Corp.		7,400		391,006

				2,068,808


Household & Personal Products 0.1%
Pacific Corp.		9,690		995,930

50 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Materials 0.9%
Asia Cement Co., Ltd.		3,198		133,013
Hanwha Chemical Corp.		64,310		596,075
Hanwha Corp.		20,172		769,709
Honam Petrochemical Corp.		4,780		275,474
Huchems Fine Chemical Corp.		3,180		64,746
Hyosung Corp.		18,270		967,602
Kisco Corp. *		13,062		524,883
Kisco Holdings Co., Ltd.		3,957		154,910
Korea Petrochemical Industrial Co., Ltd.		13,010		318,487
Korea Zinc Co., Ltd.		16,510		1,335,381
KP Chemical Corp. *		52,020		246,071
KPX Fine Chemical Co., Ltd.		143		7,015
LG Chem Ltd.		10,450		819,918
SeAH Holdings Corp.		270		22,249
Taekwang Industrial Co., Ltd.		106		84,487
Young Poong Corp.		139		49,694

				6,369,714


Pharmaceuticals & Biotechnology 0.2%
Choongwae Holdings Co., Ltd. *		3,439		20,723
Daewoong Co., Ltd.		39,000		759,352
Green Cross Holdings Corp.		246		16,142
Il Dong Pharmaceutical Co., Ltd.		20,763		500,722

				1,296,939


Retailing 0.3%
Daegu Department Store Co., Ltd.		36,860		327,885
FnC Kolon Corp.		1,950		23,809
GS Home Shopping, Inc.		15,100		809,136
Hyundai Department Store Co., Ltd.		9,090		706,816

				1,867,646


Software & Services 0.1%
Daou Technology, Inc.		115,270		479,588
Shinsegae Information & Communication Co., Ltd.		44		1,818

				481,406


Technology Hardware & Equipment 0.2%
People & Telecommunication		24,708		103,633
SFA Engineering Corp.		29,719		1,325,087
Sindo Ricoh Co., Ltd.		960		46,133

				1,474,853


Telecommunication Services 0.1%
LG Dacom Corp.		27,700		492,006
LG Telecom Ltd.		52,220		435,768

				927,774


Utilities 0.2%
KyungDong City Gas Co., Ltd.		410		17,034
Samchully Co., Ltd.		7,900		1,011,956
Seoul City Gas Co., Ltd.		8,359		566,524
YESCO Co., Ltd.		7,350		177,372

				1,772,886

				25,710,849


Singapore 1.0%


Capital Goods 0.1%
Haw Par Corp., Ltd.		321,000		1,048,260
Hong Leong Asia Ltd.		15,000		9,835
United Engineers Ltd.		81,000		97,211

				1,155,306


Consumer Services 0.1%
Hotel Plaza Ltd.		746,000		706,786
Overseas Union Enterprise Ltd.		6,000		49,483

				756,269


Diversified Financials 0.4%
G.K. Goh Holdings Ltd.		463,500		222,898
K1 Ventures Ltd.		3,930,000		615,362
Kim Eng Holdings Ltd.		1,117,513		948,571
UOB-Kay Hian Holdings Ltd.		1,505,850		1,323,646

				3,110,477


Energy 0.1%
Singapore Petroleum Co., Ltd.		123,000		399,702


Food, Beverage & Tobacco 0.1%
Cerebos Pacific Ltd.		35,000		78,461
People’s Food Holdings Ltd.		911,000		304,615
QAF Ltd.		37,000		6,496

				389,572


Materials 0.0%
Broadway Industrial Group Ltd.		6,000		2,302
Kingboard Copper Foil Holdings Ltd.		1,111,000		184,843

				187,145


Real Estate 0.0%
MCL Land Ltd.		19,000		13,216


Retailing 0.2%
Jardine Cycle & Carriage Ltd.		58,000		637,994
Metro Holdings Ltd.		1,784,000		623,138

				1,261,132


Software & Services 0.0%
Singapore Computer Systems Ltd.		21,000		21,631


Technology Hardware & Equipment 0.0%
Elec & Eltek International Co., Ltd.		37,000		54,145

				7,348,595


Spain 2.8%


Banks 1.2%
Banco de Sabadell S.A. (a)		120,723		938,269
Bankinter S.A. (a)		638,000		8,019,722

				8,957,991


Capital Goods 0.5%
Construcciones y Auxiliar de Ferrocarriles S.A.		9,692		3,422,057
Nicolas Correa S.A.		18,963		157,541
Tecnocom, Telecomunicaciones y Energia S.A. *		17,337		73,654

				3,653,252

See financial notes 51

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Commercial & Professional Supplies 0.1%
Befesa Medio Ambiente S.A. *		29,309		857,216


Consumer Durables & Apparel 0.0%
Tavex Algodonera S.A. *		94,146		152,836


Food, Beverage & Tobacco 0.2%
Campofrio Alimentacion S.A.		50,179		557,575
Pescanova S.A.		17,100		725,815

				1,283,390


Insurance 0.0%
Grupo Catalana Occidente S.A.		833		17,567
Mapfre S.A. (a)		15,026		65,685

				83,252


Materials 0.4%
Cementos Portland Valderrivas S.A. (a)		52,365		2,522,102


Media 0.0%
Promotora de Informaciones S.A. (Prisa) (a)		2,094		14,140


Transportation 0.3%
Cintra Concesiones de Infraestructuras de Transporte S.A.		174,530		2,051,238


Utilities 0.1%
Enagas (a)		46,578		1,004,402

				20,579,819


Sweden 1.9%


Capital Goods 0.5%
Addtech AB, B Shares		19,445		321,570
Consilium AB		6,710		39,540
OEM International AB, B Shares		9,820		55,085
Saab AB, Class B (a)		83,373		1,284,131
Trelleborg AB, B Shares (a)		133,524		1,861,525

				3,561,851


Commercial & Professional Supplies 0.0%
AF AB		4,900		109,301
Semcon AB *		20,860		119,294

				228,595


Diversified Financials 0.0%
AB Traction, B Shares		10,017		88,189


Energy 0.3%
PA Resources AB (a) *		385,845		1,985,869


Materials 0.0%
ProfilGruppen AB, B Shares		3,615		29,445


Pharmaceuticals & Biotechnology 0.0%
BioInvent International AB *		43,145		138,881
Biotage AB *		83,362		87,302

				226,183


Real Estate 0.0%
Din Bostad AB		57,764		324,536


Software & Services 0.1%
Acando AB		258,525		430,498
Addnode AB		34,730		122,544
Know IT AB		5,079		35,658
ProAct IT Group AB		14,097		73,266

				661,966


Technology Hardware & Equipment 0.1%
Nolato AB, Class B		79,021		574,206


Telecommunication Services 0.8%
Tele2 AB, B Shares		510,000		5,820,289


Transportation 0.1%
Rederi AB Transatlantic		65,778		344,661

				13,845,790


Switzerland 10.6%


Banks 0.2%
Banque Cantonale de Geneve		6,697		1,462,368
Graubuendner Kantonalbank		78		66,690

				1,529,058


Capital Goods 2.4%
Bobst Group AG - Reg’d		60,400		3,109,101
Bucher Industries AG - Reg’d		27,848		3,740,571
Carlo Gavazzi Holding AG		1,170		155,487
Conzzeta AG		1,075		2,314,090
Daetwyler Holding AG *		44,500		2,468,044
Feintool International Holding AG - Reg’d		1,932		533,875
Georg Fischer AG - Reg’d *		10,590		3,808,612
Harwanne Compagnie de participations industielles et financieres S.A.		171,000		454,803
Kardex AG *		822		36,678
Tornos S.A. - Reg’d *		51,473		360,097
Walter Meier AG, Class A - Reg’d		4,831		561,920

				17,543,278


Commercial & Professional Supplies 1.4%
Adecco S.A. - Reg’d		228,071		9,907,754


Consumer Durables & Apparel 0.4%
Forbo Holding AG - Reg’d *		7,335		2,926,901


Consumer Services 0.6%
Kuoni Reisen Holding AG - Reg’d		11,100		4,288,092
MCH Messe Schweiz Holding AG - Reg’d		2,700		144,448

				4,432,540


Diversified Financials 0.0%
Valartis Group AG		11,876		362,564


Food, Beverage & Tobacco 0.2%
Emmi AG - Reg’d		13,172		1,470,709


Insurance 2.8%
Baloise Holding AG - Reg’d		149,200		10,186,591
Schweizerische Naional-Versicherungs-Gesellschaft - Reg’d		3,206		1,958,980
Swiss Life Holding - Reg’d *		54,055		7,847,974

				19,993,545


Materials 1.1%
Clariant AG - Reg’d (a) *		518,000		5,044,406
CPH Chemie & Papier Holding AG - Reg’d		102		192,038

52 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Industrieholding Cham AG - Reg’d *		1,986		546,166
Siegfried Holding AG - Reg’d		9,738		1,287,071
Swissmetal Holding AG *		18,631		285,050
Vetropack Holding AG		546		936,375

				8,291,106


Real Estate 0.1%
LO Holding Lausanne-Ouchy S.A. - Reg’d		77		88,959
PAX-Anlage AG - Reg’d		60		44,877
Zueblin Immobilien Holding AG - Reg’d *		71,646		489,227

				623,063


Retailing 0.1%
Bossard Holding AG		3,123		179,484
Metraux Services Holding AG - Reg’d		1,503		188,935

				368,419


Technology Hardware & Equipment 0.4%
Also Holding - Reg’d		15,459		734,309
Inficon Holding AG - Reg’d		8,287		917,837
Phoenix Mecano AG		3,672		1,368,026

				3,020,172


Transportation 0.1%
The Jungfraubahn Holding AG - Reg’d		21,324		858,171


Utilities 0.8%
Elektrizitaets-Gesellschaft Laufenburg AG		2,535		2,818,671
Energiedienst Holding AG - Reg’d *		49,560		2,628,212

				5,446,883

				76,774,163


United Kingdom 14.7%


Automobiles & Components 0.0%
Avon Rubber plc		126,000		158,252


Capital Goods 1.5%
Carr’s Milling Industries plc		27,358		289,329
Castings plc		97,863		407,462
Cookson Group plc		121,176		1,020,225
Galliford Try plc		391,387		316,264
J. Smart & Co. (Contractors) plc		17,591		170,088
Keller Group plc		184,222		2,202,835
Molins plc		5,909		7,607
MS International plc		19,986		62,633
Qinetiq plc		1,598,309		5,945,524
Renold plc *		5,392		6,471
Trifast plc		275,125		176,087
Waterman Group plc		90,625		157,357
XP Power Ltd.		25,792		98,920

				10,860,802


Commercial & Professional Supplies 0.3%
Communisis plc		409,580		346,659
Harvey Nash Group plc		189,717		107,010
Management Consulting Group plc		707,895		425,006
Office2office plc		170,636		357,971
OPD Group plc		138,258		309,320
Tribal Group plc		169,542		387,183

				1,933,149


Consumer Durables & Apparel 0.1%
Pace Micro Technology plc *		235,623		351,258


Consumer Services 0.2%
Millennium & Copthorne Hotels plc		270,143		1,186,228
Sportech plc *		13,089		18,558

				1,204,786


Energy 0.9%
Anglo Pacific Group plc		53,250		135,283
Hunting plc		112,688		1,240,007
John Wood Group plc		194,868		1,184,978
UK Coal plc *		9,806		60,244
Venture Production plc (a)		357,600		3,917,387

				6,537,899


Food, Beverage & Tobacco 1.0%
Britvic plc		284,902		1,037,317
Tate & Lyle plc		887,617		6,097,915

				7,135,232


Household & Personal Products 0.2%
McBride plc		464,424		831,673
PZ Cussons plc		294,070		937,244

				1,768,917


Insurance 0.8%
Hardy Underwriting Bermuda Ltd.		21,884		99,461
Old Mutual plc		4,101,000		5,740,249

				5,839,710


Materials 0.8%
Delta plc		57,303		109,202
Elementis plc		288,664		341,146
Hochschild Mining plc		11,469		52,072
Mondi plc		1,126,336		5,256,786

				5,759,206


Media 0.5%
Aegis Group plc		1,933,363		3,239,696
Chime Communications plc		19,646		29,689
Creston plc		165,488		146,527
Next Fifteen Communications plc		109,722		83,717

				3,499,629


Real Estate 3.4%
Hammerson plc		527,400		9,298,001
Liberty International plc (a)		545,179		9,427,075
Segro plc		823,894		6,211,826

				24,936,902


Retailing 0.2%
Clinton Cards plc		81,584		51,128
Inchcape plc		142,228		480,443
JD Sports Fashion plc		106,888		585,158
Moss Bros Group plc		15,415		5,509
Woolworths Group plc (a)		4,324,480		307,393

				1,429,631

See financial notes 53

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)



Software & Services 1.4%
Computacenter plc		486,681		857,210
Intec Telecom Systems plc *		1,089,775		871,856
Logica plc		4,085,000		7,992,395
Microgen plc		353,853		244,669
Morse plc (a)		425,406		331,127

				10,297,257


Technology Hardware & Equipment 0.7%
Acal plc		64,850		150,775
Oxford Instruments plc		69,597		286,755
Psion plc		37,934		45,803
Spectris plc		295,381		3,532,467
TT electronics plc		480,007		757,530
Vislink plc		263,135		146,870

				4,920,200


Telecommunication Services 0.5%
Cable & Wireless		1,232,877		3,661,216


Transportation 2.2%
Accident Exchange Group plc		71,902		40,732
Arriva plc		559,076		6,941,712
Braemar Shipping Services plc		64,440		395,248
Clarkson plc		14,765		201,229
FirstGroup plc		893,074		8,525,976

				16,104,897

				106,398,943

Total Common Stock (Cost $884,691,879)				703,909,467




Preferred Stock 0.3% of net assets


Austria 0.0%
MIBA AG		747		129,302


Canada 0.0%
FirstService Corp.		9,735		177,664


Germany 0.3%
Draegerwerk AG & Co. KGAA		11,938		642,129
Einhell Germany AG		4,600		144,560
Jungheinrich AG		47,379		827,437
Sanacorp Pharmaholding AG		884		16,054
Sto AG		4,145		228,200
Villeroy & Boch AG		4,091		38,743

				1,897,123

Total Preferred Stock (Cost $3,233,345)				2,204,089




Rights 0.0% of net assets


Belgium 0.0%
Carrieres Unies de Porphyre S.A. (b)(d) *		11		—

Total Rights (Cost $—)				—




Warrants 0.0% of net assets


Australia 0.0%
Beach Petroleum Ltd. *		161,322		8,924


Bermuda 0.0%
Champion Technology Holdings Ltd. *		699,944		901
Col Capital Ltd. (d) *		280,000		4,472

				5,373

Total Warrants (Cost $—)				14,297



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


Short-Term Investment 1.4% of net assets


Repurchase Agreement 1.4%
Fixed Income Clearing Corp. dated 09/30/08, due 10/01/08 at 1.20%, with a maturity value of $10,328,344 (fully collateralized by Federal National Mortgage Corp. with a value of $10,535,234)		10,328,000		10,328,000

Total Short-Term Investments (Cost $10,328,000)				10,328,000


End of Investments.

54 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Collateral Invested for Securities on Loan 8.1% of net assets
State Street Navigator Security Lending Prime Portfolio		58,476,568		58,476,568

End of collateral invested for securities on loan.

At 09/30/08, the tax basis cost of the fund’s investments was $899,476,802 and the unrealized appreciation and depreciation were $41,216,387 and ($224,237,336), respectively, with a net unrealized depreciation of ($183,020,949).

At 09/30/08, the prices of certain foreign securities held by the fund aggregating $632,478,222 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)		Fair-valued by Management.
(c)		Bankrupt security/delisted.
(d)		Illiquid security. At the period end, the value of these amounted to $4,472 or 0.0% of net assets.

CVA — Dutch Certificate

Reg’d — Registered

SDR — Special drawing rights

See financial notes 55

Laudus Rosenberg International Small Capitalization Fund

Statement of

Assets and Liabilities

As of September 30, 2008; unaudited.




Assets
Investments, at value including $55,311,103 of securities on loan (cost $898,253,224)		$716,455,853
Collateral invested for securities on loan		58,476,568
Cash		6
Foreign currency, at value (cost $9,971,386)		9,730,793
Receivables:
Investments sold		2,607,318
Fund shares sold		547,486
Dividends		2,130,899
Interest		344
Foreign tax reclaims		604,662
Income from securities on loan		92,212
Prepaid expenses	+	54,746


Total assets		790,700,887


Liabilities
Collateral held for securities on loan		58,476,568
Payables:
Investments bought		3,409,119
Investment adviser fees		59,645
Fund shares redeemed		2,392,160
Distribution and shareholder services fees		320,795
Accrued expenses	+	503,412


Total liabilities		65,161,699


Net Assets
Total assets		790,700,887
Total liabilities	−	65,161,699


Net assets		$725,539,188
Net Assets by Source
Capital received from investors		993,620,558
Net investment income not yet distributed		9,280,728
Net realized capital losses		(95,309,195	)
Net unrealized capital losses		(182,052,903	)

Net Asset Value (NAV) by Shares Class


			Shares
Share Class	Net Assets	¸	Outstanding	=	NAV

Investor Shares	$321,340,904		25,144,789			$12.78
Select Shares	$404,198,284		31,135,290			$12.98

56 See financial notes

Laudus Rosenberg International Small Capitalization Fund

Statement of

Operations

For April 1, 2008 through September 30, 2008; unaudited.




Investment Income
Dividends (net of foreign withholding taxes of $2,210,720)		$19,693,356
Interest		181,627
Securities on loan	+	680,566


Total Investment Income		20,555,549


Net Realized Gains and Losses
Net realized losses on investments		(16,031,858	)
Net realized losses on foreign currency transactions	+	(1,375,035	)


Net realized losses		(17,406,893	)


Net Unrealized Gains and Losses
Net unrealized losses on investments		(226,830,615	)
Net unrealized losses on foreign currency translations	+	(251,063	)


Net unrealized losses		(227,081,678	)


Expenses
Investment adviser fees		4,991,056
Distribution and shareholder services fees (Investor Shares)		590,703
Custodian fees		284,794
Sub-Accounting fees (Investor Shares)		255,091
Transfer agent fees		118,475
Shareholder reports		80,400
Accounting and administration fees		74,468
Professional fees		35,463
Trustees’ fees		13,471
Registration fees		12,168
Interest expense		1,442
Other expenses	+	48,821


Total expenses		6,506,352
Custody credits	−	1,306


Net expenses		6,505,046


Increase (Decrease) in Net Assets from Operations
Total investment income		20,555,549
Net expenses	−	6,505,046


Net investment income		14,050,503
Net realized losses		(17,406,893	)
Net unrealized losses	+	(227,081,678	)


Decrease in net assets from operations		($230,438,068	)

See financial notes 57

Laudus Rosenberg International Small Capitalization Fund

Statements of

Changes in Net Assets

For the current and prior report periods.
Figures for the current period are unaudited.




Operations


		4/1/08-9/30/08			4/1/07-3/31/08
Net investment income			$14,050,503			$31,943,187
Net realized gains (losses)			(17,406,893	)		54,346,298
Net unrealized losses	+		(227,081,678	)		(298,240,524	)


Decrease in net assets from operations			(230,438,068	)		(211,951,039	)


Distributions to Shareholders¹
Distributions from net investment income
Investor Shares			—			21,597,431
Select Shares	+		—			34,839,457


Total distributions from net investment income			—			56,436,888


Distributions from net realized gains
Investor Shares			—			94,400,404
Select Shares	+		—			131,923,248


Total distributions from net realized gains			—			226,323,652

Total distributions			$-			$282,760,540

Transactions in Fund Shares¹


		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			VALUE			SHARES			VALUE


Shares Sold
Investor Shares			273,376			$4,609,879			3,984,585			$92,413,634
Select Shares	+		2,927,469			48,045,929			13,114,742			300,629,366


Total shares sold			3,200,845			$52,655,808			17,099,327			$393,043,000


Shares Reinvested
Investor Shares			-			$-			5,729,048			$97,508,406
Select Shares	+		-			-			8,381,438			144,495,987


Total shares reinvested			-			$-			14,110,486			$242,004,393


Shares Redeemed
Investor Shares			(6,419,991	)		($101,557,226	)		(17,838,760	)		($349,737,839	)
Select Shares	+		(7,896,226	)		(131,533,675	)		(31,657,552	)		(585,177,294	)


Total shares redeemed			(14,316,217	)		($233,090,901	)		(49,496,312	)		($934,915,133	)

Net transactions in fund shares			(11,115,372	)		($180,435,093	)		(18,286,499	)		($299,867,740	)


Shares Outstanding and Net Assets
		4/1/08-9/30/08						4/1/07-3/31/08
		SHARES			NET ASSETS			SHARES			NET ASSETS
Beginning of period			67,395,451			$1,136,412,349			85,681,950			$1,930,991,668
Total decrease	+		(11,115,372	)		(410,873,161	)		(18,286,499	)		(794,579,319	)


End of period			56,280,079			$725,539,188			67,395,451			$1,136,412,349

Net investment income not yet distributed/Distribution in excess of net investment income						$9,280,728						($4,769,775	)


¹	Effective July 31, 2008, the Institutional Shares became Select Shares.

58 See financial notes

Laudus Rosenberg Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

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



Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. 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 Long/Short Equity Fund		Laudus Mondrian International Equity Fund Laudus Mondrian Global Equity Fund Laudus Mondrian Emerging Markets Fund Laudus Mondrian International Fixed Income Fund

As of May 31, 2007, the Laudus Rosenberg International Small Capitalization Fund closed to all investors, except the Fund will continue to offer shares to certain qualified retirement plans and through reinvestment of dividends and capital gains.

The Institutional Shares name changed to Select Shares effective July 31, 2008, for all Laudus Rosenberg Funds.

Each Fund is authorized to issue an unlimited number of Select Shares and Investor Shares of no par value. Each class of shares generally has identical rights and preferences, except that each class is subject to different eligibility conditions, bear different distribution and sub-transfer agent expenses, and separate voting rights on matters pertaining solely to that class of shares.

2. Significant Accounting Policies:

(a) Security Valuation

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


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the current exchange rate. The Funds do not isolate the portion of the fluctuation on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

	•	Securities for which no quoted value is available or when a significant event has occurred between the time of the security’s last close and the time the Funds calculate net asset value: valued at fair value, as determined in good faith by the Funds’ investment adviser using guidelines adopted by the Funds’ Board of Trustees and the Pricing Committee. Some of the more common reasons that may necessitate that a security be valued at fair value include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security’s primary pricing source is not able or willing to provide a price, or certain foreign securities closing market prices adjusted for changes in value that may occur between the close of foreign exchange and the time at which Fund shares are priced. The Board of Trustees regularly reviews fair value determinations, made by the Funds, pursuant to the procedures.

Laudus Rosenberg Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


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

	•	Mutual Funds: valued at their respective net asset values as determined by those funds, in accordance with the 1940 Act for a given day.

(b) Portfolio Investments:

Forward Foreign Currency Contracts: The Funds may invest in forward currency contracts in connection with the purchase and sale of portfolio securities to minimize the uncertainty of changes in future foreign currency exchange rates. “Forwards”, as they are known, are contracts to buy and sell a currency at a set price on a future date. Forwards are similar to futures except that they are not publicly traded, but are agreements directly between two parties.

Securities Lending: Under the Securities Lending Program, securities held by 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.

(c) Security Transactions:

If a fund sells securities short, it records the proceeds received as an asset and the obligation to buy back the securities as a liability. At the time a short sale is initiated, the asset and liability are of equal value and effectively cancel each other out. Subsequently, the fund values the liability side of the transaction according to the market price of the securities sold short, and values the asset side according to the value of the proceeds. When the fund closes out a short position (buys the security), it records the outcome as a realized gain or loss. Interest and dividends accrued on securities sold short are recorded as an expense on the fund’s records.

Laudus Rosenberg Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

(e) Expenses:

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

(f) Distributions to Shareholders:

The Funds make distributions from net investment income and net realized capital gains once a year.

(g) Custody Credit

(h) Accounting Estimates:

(i) Federal Income Taxes:

(j) Indemnification:

(k) New Accounting Standards

The funds adopted Financial Accounting Standard Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective April 1, 2008. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has concluded that the adoption of FAS 157 is not expected to have a material impact on the fund’s financial statements.

Laudus Rosenberg Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):


	•	Level 1 — quoted prices in active markets for identical securities

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

	•	Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)

Investment in Securities

Laudus

Rosenberg

International

Discovery

Small

Valuation Inputs

Equity Fund

Fund*

Capitalization Fund

Level 1 — Quoted prices

$692,597

$43,310,273

$68,548,930

Level 2 — Other significant observable inputs

82,723,070

281,855,300

647,879,919

Level 3 — Significant unobservable inputs

—

407,053

27,004

Total

$83,415,667

$325,572,626

$716,455,853


*	Other financial instruments include forward contracts of ($3,747).

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


	Investment in Securities
	Laudus Rosenberg			Laudus Rosenberg
	International			International Small
Valuation Inputs	Discovery Fund			Capitalization Fund

Balance as of 03/31/08		$203			$796,628
Accrued discount/premiums		—			—
Realized gain (loss)		—			(935,904	)
Change in unrealized appreciation (depreciation)		(288,594	)		671,525
Net purchase (sales)		401,208			(166,675	)
Transfer in and/or out of Level 3		294,236			(338,570	)
Balance as of 09/30/08		$407,053			$27,004

3. Affiliates and Affiliated Transactions:

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

Laudus Rosenberg Funds

Financial Notes, unaudited (continued)

3. Affiliates and Affiliated Transactions (continued):

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 payable to CSIM by each Fund.


	Agreement Rate*
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 $1billion-1.00%
		Over $1 billion-0.95%
Laudus Rosenberg International Small Capitalization Fund		1st $500 million-1.00%
		Over $500 million-0.95%


*	The advisory fee payable to CSIM varies based on fund assets.


	Investor Shares		Select Shares

Laudus Rosenberg International Equity Fund*		1.40%		1.12%
Laudus Rosenberg International Discovery Fund		1.65%		1.35%
Laudus Rosenberg International Small Capitalization Fund		1.79%		1.49%


*	Prior to January 1, 2008, the expense waivers for the Investor Shares and Select Shares were 1.64% and 1.34%, respectively.


	Expires		Expires		Expires
	3/31/09		3/31/10		3/31/11


Laudus Rosenberg International Equity Fund		$31,150		$—		$36,497
Laudus Rosenberg International Discovery Fund		167,471		196,269		80,731
Laudus Rosenberg International Small Capitalization Fund		—		—		—

4. Other Shareholders 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 Funds are sold on a continuous basis by the Trust’s distributor — ALPS Distributors, Inc. Under the Distribution and Shareholder Services Plan, the Funds pay distribution and shareholder servicing fees in connection with the sale and servicing of the Investor Shares. The annual Distribution and Shareholder Service Fee consists of up to 0.25% of the respective average daily net assets of the Investor Shares. In addition, the Trustees have authorized each Fund to 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.

Laudus Rosenberg Funds

Financial Notes, unaudited (continued)

5. Board of Trustees:

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.

A retirement plan was instituted for certain Independent Trustees of the Trust. In September 2006, the Trustees voted to close the Retirement Plan to new participants as of June 26, 2006 and to discontinue making contributions to the Retirement Plan after the plan year ending March 31, 2007. All other terms of the Retirement Plan, including without limitation provisions relating to vesting and payment upon termination of service, remain in effect. 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 and including a final one-half year credit for service during the plan year ending March 31, 2007. Beginning April 1, 2005, each Independent Trustee was permitted to make a one-time election to have the $10,000 attributable to service for the coming year and previously accrued benefits adjusted up or down at the end of each subsequent year based on the unweighted average performance of share class with the lowest OER of each fund of the Trust. After the closure of the Retirement Plan, the previously accrued benefits that an Independent Trustee had elected to have adjusted by the performance of the Funds would continue to be adjusted for performance as provided under the Retirement Plan. 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.

6. Borrowing from Banks:

The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Discovery Fund and Laudus Rosenberg International Small Capitalization Fund has access to custodian overdraft facilities and to an uncommitted line of credit up to a maximum of $100,000,000, as established by State Street Corporation. Interest is calculated based on the market rates at the time of borrowing. There were no borrowings from the line of credit for the period ended September 30, 2008.

7. Purchases and Sales of Investment Securities:

For the period ended September 30, 2008, purchases and sales of securities (excluding short-term securities) were as follows:


	Purchases		Sales

Laudus Rosenberg International Equity Fund		$67,311,531		$71,374,097
Laudus Rosenberg International Discovery Fund		330,818,101		179,130,873
Laudus Rosenberg International Small Capitalization Fund		368,190,999		511,073,222

8. Redemption Fee:


	Current Period		Prior Period
	(4/1/08-9/30/08)		(4/1/07-3/31/08)

Laudus Rosenberg International Equity Fund		$1,571		$1,697
Laudus Rosenberg International Discovery Fund		9,695		66,859
Laudus Rosenberg International Small Capitalization Fund		12,168		32,882

Laudus Rosenberg Funds

Financial Notes, unaudited (continued)

9. Federal Income Taxes:


	Capital Losses

Laudus Rosenberg International Equity Fund		$1,443,588
Laudus Rosenberg International Discovery Fund		7,099,349
Laudus Rosenberg International Small Capitalization Fund		75,298,406

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. 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. As of September 30, 2008, management has reviewed the tax positions for open tax years (March 31, 2005 through March 31, 2008), and determined that no provision for income tax is required in the Fund’s financial statements.