N-CSRS 1 l16462anvcsrs.txt LAUDUS TRUST N-CSRS -------------------------------------- OMB APPROVAL OMB Number: 3235-0570 Expires: September 30, 2007 Estimated average burden hours per response. . . . . . .19.4 -------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-05547 ---------------------------------------------- Laudus Trust -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 101 Montgomery Street, San Francisco, California 94104 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Jana D. Thompson, Laudus Trust, 101 Montgomery Street, San Francisco, California 94104 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (415) 627-7000 ---------------------------- Date of fiscal year end: March 31, 2006 ------------------- Date of reporting period: September 30, 2005 --------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. ITEM 1. REPORTS TO STOCKHOLDERS. Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). Semi-Annual Report September 30, 2005 [LAUDUS FUNDS LOGO] C O M M A N D P E R F O R M A N C E (tm) U.S. Equity Funds Laudus Rosenberg U.S. Large Capitalization Fund Laudus Rosenberg U.S. Large Capitalization Growth Fund Laudus Rosenberg U.S. Large Capitalization Value Fund Laudus Rosenberg U.S. Discovery Fund Laudus Rosenberg U.S. Small Capitalization Fund International Equity Funds Laudus Rosenberg International Equity Fund Laudus Rosenberg International Small Capitalization Fund Long/Short Equity Funds Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund Laudus Rosenberg Global Long/Short Equity Fund Laudus Rosenberg Value Long/Short Equity Fund Each of the Funds is a series of Laudus Trust, which is an open-end management investment company offering diversified portfolios with different investment objectives and strategies. Charles Schwab Investment Management, Inc. is the Manager to the Funds and AXA Rosenberg Investment Management LLC is the Sub-adviser. Table of Contents 1 President's Message 2 Management's Discussion 8 Performance and Fund Facts 23 Fund Expenses 25 Financial Statements and Notes 146 Approvals of Investment Advisory and Sub-Advisory Agreements 149 Trustees and Officers of Laudus Trust 151 Definitions, Terms and Other Information Notice About Duplicate Mailings In order to reduce expenses of the Laudus Trust incurred in connection with the mailing of prospectuses, prospectus supplements, semi-annual reports and annual reports to multiple shareholders at the same address, Laudus Trust may in the future deliver one copy of a prospectus, prospectus supplement, semi-annual report or annual report to a single investor sharing a street address or post office box with other investors, provided that all such investors have the same last name or are believed to be members of the same family. This process, called "householding," will continue indefinitely unless you instruct us otherwise. If you share an address with another investor and wish to receive your own prospectus, prospectus supplements, semi-annual reports and annual reports, please call the Trust toll-free at 800.447.3332. Each of the Funds is a series of the Laudus Trust (the "Trust"), an open-end management investment company offering multiple portfolios with different investment objectives and strategies. Except as explicitly described otherwise, the investment objective and policies of each of the Funds may be changed without shareholder approval. The Funds are advised by Charles Schwab Investment Management, Inc. ("CSIM"). AXA Rosenberg Investment Management LLC ("AXA Rosenberg") acts as Sub-adviser to the Funds. The Funds are distributed by ALPS Distributors, Inc. President's Message I'm pleased to present to you the semi-annual report for the Laudus Rosenberg Funds for the six-months ended September 30, 2005. The Laudus Rosenberg Funds constitute the initial offering of the Laudus Funds Group, founded nearly two years ago to bring the proven experience of selected leading institutional portfolio managers to retail investors and registered investment advisors. The consistently strong results generated by the funds have led to substantial growth in assets, which reached $3 billion as of September 30, 2005. While I am proud of the long-term performance of all of our funds, I would like to specifically single out the Laudus Rosenberg U.S. Large Capitalization Fund and the Laudus Rosenberg U.S. Discovery Fund, which ranked within the top quintile of their respective categories for the one-year period ending September 30, 2005(1). Our primary interests at Laudus are to deliver strong performance and protect the interests of our shareholders. To that end, we will occasionally close to new investors those funds that have limited capacity. This step is designed to protect the execution of our investment strategies. While limiting fund sizes will potentially limit the revenues we earn as the investment manager of the fund, we believe these actions to be in the best interest of our shareholders. In accordance with our commitment to performance, the Laudus Rosenberg International Small Capitalization Fund will be closed to new investors on December 31, 2005. Additionally, the Laudus Rosenberg U.S. Small Capitalization Fund remains closed to new investors at this time. On behalf of Laudus Funds, I want to thank you for investing with us and remind you that our commitment to our shareholders will never waver. Sincerely, /s/ Jana D. Thompson Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-447-3332. Please read the prospectus carefully before investing. (1) Source: Lipper Multi-Cap Core Funds Category. Rankings as of September 30, 2005 were as follows, respectively, for the Institutional and Investor Shares of Laudus Rosenberg U.S. Large Capitalization Fund: for the 1-year period: #104 and #121 out of 752 funds; for the 3-year period: #281 and #304 out of 567 funds. Source: Lipper Small Cap Core Funds Category. Rankings as of September 30, 2005 were as follows, respectively, for the Institutional and Investor Shares of Laudus Rosenberg U.S. Discovery Fund: for the 1-year period: #104 and #113 out of 604 funds; for the 3-year period: #213 and #243 out of 488 funds. Lipper percentile rank reflects the Fund's average annual and cumulative return performance relative to peers. The Lipper rankings change every month and other class ratings may vary. (PHOTO OF JANA D. THOMPSON) JANA D. THOMPSON is President and CEO of Laudus Funds. Prior to joining Charles Schwab & Co., Inc. in 2000, Jana enjoyed a 16-year career in asset management and client services. Laudus Trust Semi-Annual Report 1 Management's Discussion for the six months ended September 30, 2005 U.S. MARKET OVERVIEW The U.S. Equity markets performed well for the six-month period ended September 30, 2005, with the S&P 500 Index rising 5.02% on a total return basis. Small-cap stocks outperformed large-cap stocks for the period, as the small-cap sector enjoyed a strong rally from May through July. Value- and growth-oriented stocks produced similar performance for the period among large-cap stocks, while in the small-cap sector, growth stocks outpaced their value counterparts overall. Real GDP growth continued, although more slowly than in prior quarters, and corporate earnings were generally positive. Inflation remained under control over the period, with the exception of a jump in the Consumer Price Index (CPI) in August. Despite the resilience of the U.S. economy during this period, a backdrop of persistent concerns, such as high crude oil prices, exacerbated by hurricanes and the Federal Reserve Open Market Committee's series of short-term interest rates hikes, kept a cap on the stock market. The Energy sector, benefiting from higher prices, was the best performing sector during the report period. Utilities were also strong in part due to an improving regulatory environment and anticipation of increasing consolidation. Information Technology was the third highest performing sector for the period. On the other hand, the poorest performing sectors were Materials and Consumer Discretionary, whose results can be attributed to the slowing economy and high oil prices. While the reward to earnings is the biggest driver of our relative performance over time, our portfolios have exposures to risk characteristics and industries that will also have an impact on performance. These active exposures are a by-product of trading off the return opportunities identified by our stock selection models with the risk of deviating from the benchmark on these dimensions. U.S. EQUITY FUNDS PERFORMANCE TOTAL RETURNS are for the six-month period ended 9/30/05 unless indicated otherwise, and are not annualized. For performance details, see pages 8 through 12.
LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND(1,2) ------------------------------------------------------ AXLIX AXLVX Russell Institutional shares Investor shares 1000 Index 7.38% 7.20% 6.08% LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND(1) --------------------------------------------------------- REDIX REFIX Russell 1000 Institutional shares Investor shares Growth Index 7.93% 7.73% 6.57% LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND*(1,2) ------------------------------------------------------------ LLCVX LCVJX Russell 1000 Institutional shares Investor shares Value Index 12.10% 11.90% 7.05% LAUDUS ROSENBERG U.S. DISCOVERY FUND(1,3) ------------------------------------------------------------ RDISX RDIVX Russell Institutional shares Investor shares 2500 Index 9.77% 9.63% 9.63%
LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND(1,3) ------------------------------------------------------------------- (closed to new investors) USCIX LIFUX BRSCX Russell Institutional shares Adviser shares Investor shares 2000 Index 7.04% 6.88% 6.77% 9.21%
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 OF LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower. Investors cannot invest directly in any index. * For the period May 2, 2005 (commencement of operations) through September 30, 2005. (1) Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments. (2) Value-based investments are subject to the risk that the broad market may not recognize their value. (3) Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. 2 Laudus Trust Semi-Annual Report Management's Discussion continued LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND The Laudus Rosenberg U.S. Large Capitalization Fund Investor Shares were up 7.20%, and the Institutional Shares up 7.38%, both outperforming the Russell 1000(R) Index benchmark return of 6.08% for the report period. From a performance attribution view, risk factors, stock selection and industry allocation all contributed positively for the period, and in that order. Common risk factor exposures with the largest positive contributions resulted from overweight exposures to Relative Strength and Earnings Variation. The largest negative contributors came from overweighting lower Price/Earnings stocks and underweighting Dividend Yield. Active industry exposures with the largest positive contributions were overweight positions in Integrated Oil Companies and Construction/Homebuilding. The largest negative contributions among active industry exposures resulted from underweighting Information Technology Hardware and Biotechnology. LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND The Laudus Rosenberg U.S. Large Capitalization Growth Fund Investor Shares were up 7.73%, and the Institutional Shares up 7.93%, both outperforming the Russell 1000 Growth(R) Index benchmark return of 6.57% for the period. From a performance attribution view, risk factors, industry allocation and stock selection, in descending order of total contribution, all contributed positively during the period. Common risk factor exposures with the largest positive contributions were an overweight exposure versus the benchmark to Relative Strength and an underweight to Financial Leverage. The largest negative contributors came from being overweight two value-oriented factors, Price/Earnings and Price/Book. Active industry exposures with the largest positive contributions were overweight positions versus the benchmark in Oil & Coal Resources and Construction/Homebuilding. The largest negative contributors among active industry exposures resulted from underweighting the technology areas of Information Technology Hardware and Software. LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND The Laudus Rosenberg U.S. Large Capitalization Value Fund commenced operations on May 2, 2005, so total returns reported are since inception and not annualized. The Investor Shares were up 11.90% and the Institutional Shares were up 12.10%, outperforming the Russell 1000 Value(R) Index benchmark return of 7.05%. From a performance attribution view, industry allocations, risk factors and stock selection all contributed positively for the period, and in that order. The largest positive contributions resulted from overweighting Relative Strength and Earnings Variation relative to the benchmark. The largest negative contributions came from overweighting lower Price/Earnings stocks and Growth as a risk factor relative to the benchmark. Among industry allocations, the largest positive contributions were the result of overweighting the Oil & Coal Resources and Insurance industries. The largest negative contributions among active industry exposures came from underweighting the Miscellaneous Finance and Electric Utilities industries. LAUDUS ROSENBERG U.S. DISCOVERY FUND The Laudus Rosenberg U.S. Discovery Fund Investor Shares were up 9.63%, and the Institutional Shares up 9.77% for the report period. The Institutional Shares outperformed the Russell 2500(TM) Index benchmark return of 9.63%, while the Investor Shares matched this return. From a performance attribution view, risk factor and industry exposures contributed positively for the period, with risk exposures providing the largest contribution to excess return. On the other hand, stock selection contributed negatively to fund performance. Common risk factor exposures with the largest positive contributions were Relative Strength and Earnings Variation, as the Fund was overweight versus the benchmark on both of these positively performing risk factors. The largest negative contributors were overweight exposures to stocks with lower Price/Earnings ratios and an underweight exposure to stocks with high Trading Activity. Active industry exposures with the largest positive contributions were overweight positions relative to the benchmark in Insurance and Oil & Coal Resources. The largest negative contributors among active industry exposures were underweight positions in REITs and Information Technology Hardware. LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND The Laudus Rosenberg U.S. Small Capitalization Laudus Trust Semi-Annual Report 3 Management's Discussion continued Fund Investor, Institutional and Adviser Shares were up, respectively, 6.77%, 7.04% and 6.88% for the report period, underperforming the Russell 2000(R) Index benchmark return of 9.21%. Bear in mind that this discussion reflects the fund's performance for only a six-month period. Over the longer term, our management strategy has been effective in producing results that are generally superior to the Fund's benchmark, as shown in the next section of this report. From a performance attribution view, stock selection and industry exposures contributed negatively, with stock selection detracting the most from the Fund's performance relative to the benchmark. On the other hand, the contribution of risk exposures was positive. Common risk factor exposures with the largest positive contributions were Relative Strength and Earnings Variation, both of which the Fund was overweight relative to the benchmark. The largest negative contributors came from underweighting stocks with higher Trading Activity and overweighting stocks with lower Price/Earnings ratios. Active industry exposures with the largest positive contributions were overweight positions in the Insurance and Construction/Homebuilding industries. The largest negative contributors among active industry exposures resulted from underweighting REITs and Biotechnology versus the benchmark. INTERNATIONAL EQUITY MARKET OVERVIEW Over the last six months, global markets have endured rising energy prices, interest rates hikes by the U.S. Federal Reserve Open Market Committee, two devastating hurricanes on the U.S. Gulf Coast, and terrorist attacks in London but have still managed to post solid returns. Positive corporate news, continued strong merger and acquisition activity, particularly in Europe, and the Yuan's revaluation all helped to power global markets to multi-year highs during the reporting period. The Japanese market, after years of sluggishness, advanced to multi-year highs. The Nikkei finished the period up strongly. The Liberal Democratic Party's election victory reinvigorated the Japanese markets as long-hoped-for economic reforms may now be enacted. European equity markets made strong gains despite the terrorist incidents in London, increasing energy prices and rising rates in the U.S. The strong performance in the European markets was aided by a number of factors, including strong company earnings, increasingly positive economic data from the U.S., and increased merger and acquisition activity. Asian equity markets generated strong returns relative to their global peers. The revaluation of the Yuan and continued strong global demand for commodities and other basic materials, particularly from China and the U.S., helped drive the Asian markets upward. While the reward to earnings is the biggest driver of our relative performance over time, our portfolios have exposures to risk characteristics and industries that will also have an impact on performance. These active exposures are a by-product of trading off the return opportunities identified by our stock selection models with the risk of deviating from the benchmark on these dimensions. INTERNATIONAL EQUITY FUNDS PERFORMANCE TOTAL RETURNS are for the six-month period ended 9/30/05 and are not annualized. For performance details, see pages 13 through 16.
LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND(1) ------------------------------------------------- MSCI- REQIX RIEIX EAFE(R) Institutional shares Investor shares Index 9.55% 9.47% 9.61%
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND(1,2) -------------------------------------------------------------- ICSIX RISIX S&P/Citigroup World ex Institutional shares Investor shares NGSCexUS US EMI 9.41% 9.21% 9.39% 10.36%
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 OF LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower. Investors cannot invest directly in any index. (1) There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. (2) Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND The Laudus Rosenberg International Equity Fund Investor Shares were up 9.47%, and the Institutional Shares up 9.55% for the report period, both slightly underperform- 4 Laudus Trust Semi-Annual Report Management's Discussion continued ing the MSCI EAFE(R) Index benchmark return of 9.61% for the report period. From a performance attribution view, exposure to risk factors provided an opportunity to capture excess return. The Fund was overweight relative to the benchmark in Relative Strength, a measure of price momentum, which contributed positively to performance. On the other hand, higher-than-benchmark exposure to Dividend Yield Risk was the largest negative contributor to the performance of the fund. Active industry exposure was a positive contributor to overall return. Overweight positions relative to the benchmark in Oil Distribution and Construction & Homebuilding provided the largest positive industry contributions. Underweight positions in Information Technology Hardware and Drugs & Pharmaceuticals were the largest detractors from the Fund's overall performance. Our stock selection models are based on estimating fair value of each stock, relative to its peers, and each stock's near term earnings growth potential. Consequently, our investment discipline will naturally have exposures to risk characteristics and industries. Overall stock selection was a slightly negative contributor over the past six months. Stocks which contributed positively were overweight positions in Statoil ASA, Anglo American, and OMV AG. Stocks which contributed negatively were overweight positions in Royal Bank of Scotland, Zurich Financial and Deutsche Telecom. LAUDUS ROSENBERG INTERNATIONAL SMALL-CAPITALIZATION FUND The Laudus International Small-Capitalization Fund Investor Shares were up 9.21%, and the Institutional Shares up 9.41% for the report period, both underperforming the S&P/Citigroup World ex US Extended Market Index (EMI) benchmark return of 10.36%. The benchmark was changed from the Nomura Global Small Cap World ex US Index during the report period to enhance the Fund's ability to implement its principal investment strategy of investing primarily in equity securities of smaller companies that are traded principally in markets outside the United States. From a performance attribution view, exposure to risk factors provided opportunity to capture excess return. The Fund was overweight relative to the benchmark in Relative Strength, a measure of price momentum, which contributed positively to performance. Higher-than-benchmark exposure to Trading Activity, a measure of trading volume and turnover, was the largest negative contributor to the performance of the fund. It was active industry exposure, however, that was the largest contributor to the Fund's overall return. Overweight positions versus the benchmark in Oil Distribution and Construction & Homebuilding provided the largest positive industry contributions. Underweight positions in Information Services and Cars & Trucks were the largest detractors from the Fund's performance. Our stock selection models are based on estimating fair value of each stock, relative to its peers, and each stock's near term earnings growth potential. Our investment discipline will naturally have exposures to risk characteristics and industries. Overall stock selection was a negative contributor over the report period. Stocks which contributed positively were overweight positions in ERG SPA, Dragon Oil and OMV AG. Stocks which had negative contribution for the period were overweight positions in Dyckerhoff AG, Corus Group, and Swiss Life. LONG/SHORT EQUITY FUNDS PERFORMANCE While the reward to earnings is the biggest driver of our relative performance over time, our portfolios have exposures to risk characteristics and industries that will also have an impact on performance. These active exposures are a by-product of trading off the return opportunities identified by our stock selection models with the risk of deviating on these dimensions between the Long and Short sides of the portfolios. TOTAL RETURNS below are for the six-month period ended 9/30/05 and are not annualized. For performance details, see pages 17 through 22.
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND(1,2) ---------------------------------------------------------- 90-Day SSMNX RMNIX Treasury Bills Institutional shares Investor shares (T-Bills) 1.84% 1.75% 1.63% LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND(2) ---------------------------------------------------------- 90-Day MSMNX RMSIX Treasury Bills Institutional shares Investor shares (T-Bills) 4.82% 4.61% 1.63% LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND(2,3) ---------------------------------------------------------- 90-Day BMNIX BRMIX Treasury Bills Institutional shares Investor shares (T-Bills) 0.86% 0.67% 1.63%
Laudus Trust Semi-Annual Report 5 Management's Discussion continued 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 OF LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory or administrative fees for certain periods since the inception date. In such instances, and without the waiver of fees, total return would have been lower. Investments in Long/Short funds are more volatile and risky than some other forms on 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 may sell a security short by borrowing it from a third party and selling it at the then-current market price. The Fund is obligated to buy the security on a later date so it can return the security to the lender. Short sales involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which the Fund previously sold the security short. Moreover, because the Fund's loss on a short sale arises from increases in the value of the security sold short, the extent of such loss, is theoretically unlimited. Since risk in the Long/Short Funds relates specifically to the Manager's stock selection techniques and not to any systematic or economy-wide factors, the proper benchmark is an asset that also has the least exposure to systematic influences. 90-day T-bills are such an asset. The full faith and credit of the U.S. government back an investment in 90-day T-bills. T-bills have a fixed rate of return, and investors do not bear the risk of losing their investment. The income received from T-bills is free from state income tax. (1) Mid capitalization stocks typically carry additional risk, since smaller companies generally have higher risk of failure and, historically, their stocks have experienced a greater degree of volatility. (2) There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. (3) Value-based investments are subject to the risk that the broad market may not recognize their value. LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND The Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund Investor Shares were up 1.75%, and the Institutional Shares up 1.84% for the report period, both outperforming the benchmark, 90-day T-bills, which returned 1.63%. From a performance attribution view, risk factors, stock selection and industry allocation all contributed positively for the period, and in that order. Common risk factor exposures with the largest positive contributions resulted from overweight exposures to Relative Strength and Earnings Variation. The largest negative contributors came from overweighting lower Price/Earnings stocks and underweighting Dividend Yield. Active industry exposures with the largest positive contributions were overweight positions in Integrated Oil Companies and Construction/Homebuilding. The largest negative contributions among active industry exposures resulted from underweighting Information Technology Hardware and Biotechnology. LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND The Global Long/Short Equity Fund Investor Shares were up 4.61%, and the Institutional Shares up 4.82% for the report period, both outperforming the 90-day T-bills benchmark return of 1.63%. The Fund had four months of positive performance and two down months. Performance was distributed across the Long and Short portfolios as well as across the strategies in which the Fund invests. Over the entire period, the Fund's overall exposures to risks and industries helped performance, offset slightly by stock-specific elements. Over the period, the Fund's positive exposure to stocks with high Relative Strength was the most significant contributor among common equity risk factors. Positive Relative Strength is correlated with near-term earnings growth; thus, exposure to this characteristic emerges from the Fund's focus on earnings, not from a top-down portfolio decision. The Fund benefited from net long positions in energy-related industries such as Oil Drilling and Oil Distribution as well as net long positions in Construction Materials, Utilities, and Insurance. Industry exposures which detracted were net short positions in REITs, Drugs & Pharmaceuticals, and several technology areas. The Fund's global portfolio is constructed by combining various underlying regionally-focused long/short strate- 6 Laudus Trust Semi-Annual Report Management's Discussion continued gies, including strategies that focus on the U.S., Europe and Japan. The Fund's U.S. portfolio may reflect a combination of underlying U.S. long/short strategies that are focused on issuers in particular capitalization ranges or focus on a particular investing style. During the period, the composition of the Fund changed as we began investing in Japan, replacing the U.S.-based Value Long/ Short strategy. While our performance expectations of the Fund as a whole remain the same, we do expect lower volatility of returns as we expect the Japan strategy to have lower correlation with the remaining strategies than the U.S. element it replaced. LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND The Value Long/Short Equity Fund Investor Shares were up 0.67%, and the Institutional Shares up 0.86% for the report period, both underperforming the 90-day T-bills benchmark return of 1.63%. Though April was a difficult month for the strategy, subsequent months' performance was positive, and the Manager believes that the current market environment is generally favorable for this strategy. From an attribution view, returns associated with the Fund's style and industry positioning were positive, while returns attributable to stock-specific differences between the long and short positions were negative. Along the style dimension, the most successful policy was a long bias toward stocks exhibiting greater Relative Strength (a measure of price momentum). Favoring companies with lower-than-average leverage was also rewarded. The Fund's value characteristics (a long bias toward stocks with lower Price/Earnings and Price/Book ratios) were penalized slightly over the period. The best industry positions were long positions in basic materials and energy-related stocks. Specifically, net long positions in Construction & Homebuilding, Oil & Coal Resources and Oil Drilling added significantly to excess return versus the benchmark. Among the worst industry positions were short positions in REITs, Biotechnology, and Drugs & Pharmaceuticals. In fact, much of the Fund's poor performance in April was attributable to a temporary rotation in the broad stock market away from basic materials and energy into healthcare and drugs. Laudus Trust Semi-Annual Report 7 Performance and Fund Facts Laudus Rosenberg U.S. Large Capitalization Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
INSTITUTIONAL SHARES RUSSELL 1000(R) INDEX** -------------------- ----------------------- ----------------------------------------------------------- ----------------------------------------------------------- 6/19/02 50000.00 50000.00 3/03 41611.00 41585.00 3/04 55066.00 56713.60 3/05 60383.00 60819.70 9/05 64839.00 64517.50
INVESTOR SHARES RUSSELL 1000(R) INDEX** --------------- ----------------------- 7/31/02 10000.00 10000.00 3/03 9358.00 9419.00 3/04 12342.00 12844.70 3/05 13480.00 13774.60 9/05 14450.00 14612.10
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 3 YEAR INSTITUTIONAL INVESTOR Institutional (6/19/02) 7.38% 18.95% 16.70% 8.24% n/a Investor (7/31/02) 7.20% 18.48% 16.33% n/a 12.33% Russell 1000(R) Index** 6.08% 14.26% 17.65% 8.06% 9.31%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investors cannot invest directly in any index. * Not annualized. ** The Russell 1000(R) Index measures the performance of the 1,000 largest companies in the Russell 3000(R) Index, and represents approximately 92% of the total market capitalization of the Russell 3000(R) Index. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 6/19/02 7/31/02 Total Net Assets ($ x 1,000) $32,090 $6,294 Ticker Symbol AXLIX AXLVX Cusip 51855Q101 51855Q853 NAV $12.66 $12.66 Expense Ratio(3) 0.99% 1.35%
FUND CHARACTERISTICS(2) -------------------------------------------------------- Number of Securities 209 Median Market Capitalization ($Wtd. x $24,981 1,000,000) Portfolio Turnover (One year trailing) 130.21% Price to Earnings (P/E) 15.74 Price to Book (P/B) 2.57 Price to Cash Flow 11.78 Beta 0.95 Return on Equity 18.55% Five-Year Earnings Growth 25.07%
TOP EQUITY HOLDINGS(2) % of Net Assets -------------------------------------------------------- Exxon Mobil Corp. 3.9% Bank of America Corp. 3.4% ChevronTexaco Corp. 3.2% ConocoPhillips 3.0% Hewlett-Packard Co. 2.6% Home Depot, Inc. 2.5% UnitedHealth Group, Inc. 2.4% Altria Group, Inc. 2.3% Time Warner, Inc. 2.1% Citigroup, Inc. 2.1% TOTAL 27.5% PORTFOLIO COMPOSITION(2) % of Net Assets --------------------------------------------------------
SECTOR WEIGHTINGS [PIE GRAPH]
CONSUMER INFORMATION HEALTH CONSUMER FINANCIALS DISCRETIONARY ENERGY TECHNOLOGY CARE INDUSTRIALS STAPLES MATERIALS UTILITIES ---------- ------------- ------ ----------- ------ ----------- -------- --------- --------- 20 16 15.1 13 12.3 9.3 4.6 3.7 3.7 TELECOMMUNICATIONS SERVICES ------------------ 2.3
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. 8 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg U.S. Large Capitalization Growth Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
RUSSELL 1000(R) GROWTH INSTITUTIONAL SHARES INDEX** -------------------- ---------------------- 6/7/00 50000.00 50000.00 3/01 38643.00 31665.00 3/02 39297.00 31031.70 3/03 30384.00 22724.50 3/04 40361.00 30039.50 3/05 41740.00 30391.00 9/05 45051.00 32387.70
INVESTOR SHARES RUSSELL 1000(R) GROWTH INDEX** --------------- ------------------------------ 8/15/03 10000.00 10000.00 3/04 11450.00 11284.00 3/05 11810.00 11416.00 9/05 12723.00 12166.10
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (6/7/00) 7.93% 14.09% -1.55% -1.94% n/a Investor (8/15/03) 7.73% 13.70% n/a n/a 11.99% Russell 1000(R) Growth Index** 6.57% 11.60% -8.64% -7.84% 9.65%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investors cannot invest directly in any index. * Not annualized. ** The Russell 1000 Growth(R) Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 6/7/00 8/15/03 Total Net Assets ($ x 1,000) $14,820 $1,911 Ticker Symbol REDIX REFIX Cusip 51855Q200 51855Q846 NAV $8.71 $8.78 Expense Ratio(3) 0.99% 1.33%
FUND CHARACTERISTICS (2) -------------------------------------------------------- Number of Securities 326 Median Market Capitalization ($Wtd. x $34,760 1,000,000) Portfolio Turnover (One year trailing) 75.42% Price to Earnings (P/E) 21.75 Price to Book (P/B) 3.91 Price to Cash Flow 16.28 Beta 1.00 Return on Equity 20.90% Five-Year Earnings Growth 22.30%
TOP EQUITY HOLDINGS(2) % of Net Assets -------------------------------------------------------- Johnson & Johnson 3.7% General Electric Co. 3.5% Microsoft Corp. 3.0% Procter & Gamble Co. 2.2% Intel Corp. 1.8% Amgen, Inc. 1.8% PepsiCo, Inc. 1.7% Dell, Inc. 1.5% Home Depot, Inc. 1.5% UnitedHealth Group, Inc. 1.4% TOTAL 22.1% PORTFOLIO COMPOSITION(2) % of Net Assets --------------------------------------------------------
SECTOR WEIGHTINGS
INFORMATION CONSUMER CONSUMER HEALTH CARE TECHNOLOGY DISCRETIONARY INDUSTRIALS FINANCIALS STAPLES ENERGY MATERIALS UTILITIES ----------- ----------- ------------- ----------- ---------- -------- ------ --------- --------- 20.3 18.2 17.6 13.1 9.8 9.1 5.6 4.5 1.3 TELECOMMUNICATIONS SERVICES ------------------ 0.5
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. Laudus Trust Semi-Annual Report 9 Performance and Fund Facts Laudus Rosenberg U.S. Large Capitalization Value Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
INSTITUTIONAL SHARES RUSSELL 1000(R) VALUE INDEX** -------------------- ----------------------------- ----------------------------------------------------------- ----------------------------------------------------------- 5/2/05 50000.00 50000.00 5/05 51450.00 50970.00 6/05 52500.00 51525.60 7/05 54550.00 53014.70 8/05 54650.00 52786.70 9/05 56050.00 53525.70
INVESTOR SHARES RUSSELL 1000(R) VALUE INDEX** --------------- ----------------------------- 5/2/05 10000.00 10000.00 5/05 10290.00 10194.00 6/05 10490.00 10305.10 7/05 10900.00 10602.90 8/05 10910.00 10557.30 9/05 11190.00 10705.10
AGGREGATE TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND SINCE SINCE INCEPTION INCEPTION INCEPTION DATE INSTITUTIONAL* INVESTOR* Institutional (5/2/05) 12.10% n/a Investor (5/2/05) n/a 11.90% Russell 1000(R) Value Index** 7.05% 7.05%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Value-based investments are subject to the risk that the broad market may not recognize their value. Investors cannot invest directly in any index. * Not annualized. For the period May 2, 2005 (commencement of operations) through September 30, 2005. ** The Russell 1000 Value(R) Index measures the performance of those Russell 1000 companies with lower valuation ratios such as price-to-book and price-to-earnings ratios. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 5/2/05 5/2/05 Total Net Assets ($ x 1,000) $5,880 $101 Ticker Symbol LLCVX LCVJX Cusip 51855Q713 51855Q721 NAV $11.21 $11.19 Expense Ratio(3) 0.00% 0.36%
FUND CHARACTERISTICS (2) -------------------------------------------------------- Number of Securities 166 Median Market Capitalization ($Wtd. x $30,256 1,000,000) Portfolio Turnover 48.37% Price to Earnings (P/E) 13.07 Price to Book (P/B) 2.03 Price to Cash Flow 8.85 Beta 0.91 Return on Equity 17.55% Five-Year Earnings Growth 18.69%
TOP EQUITY HOLDINGS(2) % of Net Assets -------------------------------------------------------- Citigroup, Inc. 5.1% Exxon Mobil Corp. 4.6% Bank of America Corp. 4.1% ChevronTexaco Corp. 3.7% ConocoPhillips 2.3% Pfizer, Inc. 2.1% Apple Computer, Inc. 2.0% Hewlett-Packard Co. 2.0% Time Warner, Inc. 1.8% Wachovia Corp. 1.6% TOTAL 29.3% PORTFOLIO COMPOSITION(2) % of Net Assets --------------------------------------------------------
SECTOR WEIGHTINGS
CONSUMER HEALTH INFORMATION CONSUMER FINANCIALS ENERGY DISCRETIONARY CARE TECHNOLOGY UTILITIES INDUSTRIALS STAPLES ---------- ------ ------------- ------ ----------- --------- ----------- -------- 29.7 22.6 10.9 8.8 7.3 5.1 4.6 4.3 TELECOMMUNICATIONS SERVICES MATERIALS ------------------ --------- 4 2.7
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. Effective November 1, 2005, the Manager has agreed to limit annual expenses exclusive of nonrecurring account fees, extraordinary expenses, interest expense, dividends on securities sold short, service fees, subtransfer agency and subaccounting fees and distribution and shareholder services fees, to 0.99%. 10 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg U.S. Discovery Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
INSTITUTIONAL SHARES RUSSELL 2500(TM) INDEX** -------------------- ------------------------ ----------------------------------------------------------- ----------------------------------------------------------- 9/4/01 50000.00 50000.00 3/02 55626.00 54310.00 3/03 47932.00 41275.60 3/04 74726.00 66301.00 3/05 82183.00 71744.30 9/05 90216.00 78653.30
INVESTOR SHARES RUSSELL 2500(TM) INDEX** --------------- ------------------------ 10/3/01 10000.00 10000.00 3/02 11834.00 12175.00 3/03 10179.00 9253.00 3/04 15799.00 14863.10 3/05 17331.00 16083.40 9/05 19001.00 17632.20
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 3 YEAR INSTITUTIONAL INVESTOR Institutional (9/4/01) 9.77% 22.99% 23.66% 15.60% n/a Investor (10/3/01) 9.63% 22.61% 23.30% n/a 17.45% Russell 2500(TM) Index** 9.63% 21.29% 24.91% 11.76% 15.26%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Small and mid-capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * Not annualized. ** The Russell 2500(R) Index measures the performance of the 2,500 smallest companies in the Russell 3000(R) Index, and represents approximately 16% of the total market capitalization of the Russell 3000(R) Index. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 9/4/01 10/3/01 Total Net Assets ($ x 1,000) $442,155 $195,171 Ticker Symbol RDISX RDIVX Cusip 51855Q309 51855Q838 NAV $17.52 $17.41 Expense Ratio(3) 1.14% 1.49%
FUND CHARACTERISTICS (2) -------------------------------------------------------- Number of Securities 1022 Median Market Capitalization ($Wtd. x 1,000,000) $2,075 Portfolio Turnover (One year trailing) 85.80% Price to Earnings (P/E) 18.64 Price to Book (P/B) 2.16 Price to Cash Flow 12.39 Beta 1.14 Return on Equity 12.78% Five-Year Earnings Growth 26.64%
--------------------------------------------------------
TOP EQUITY HOLDINGS(2) % of Net Assets Intersil Corp. 1.0% Radian Group, Inc. 1.0% Monster Worldwide, Inc. 1.0% Bausch & Lomb, Inc. 1.0% Grant Prideco, Inc. 1.0% Invitrogen Corp. 0.9% Allegheny Technology, Inc. 0.9% Cummins, Inc. 0.9% Harris Corp. 0.9% Urban Outfitters, Inc. 0.9% TOTAL 9.5% PORTFOLIO COMPOSITION(2) % of Net Assets --------------------------------------------------------
SECTOR WEIGHTINGS
CONSUMER INFORMATION HEALTH CONSUMER DISCRETIONARY FINANCIALS INDUSTRIALS TECHNOLOGY CARE MATERIALS ENERGY UTILITIES STAPLES ------------- ---------- ----------- ----------- ------ --------- ------ --------- -------- 21.5 18 15.5 12.8 11.8 8 5.5 3.5 2.3 TELECOMMUNICATIONS SERVICES ------------------ 1.1
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. Laudus Trust Semi-Annual Report 11 Performance and Fund Facts Laudus Rosenberg U.S. Small Capitalization Fund as of 9/30/05 (Unaudited) PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) ---------------------------------------- (LINE GRAPH)
INSTITUTIONAL SHARES RUSSELL 2000(R) INDEX** -------------------- ----------------------- 9/30/95 50000.00 50000.00 9/96 59442.00 56570.00 9/97 87438.00 75345.60 9/98 73956.00 61014.90 9/99 82927.00 72650.40 9/00 96555.00 89643.30 9/01 96481.00 70630.00 9/02 100522.00 64061.40 9/03 125847.00 87443.80 9/04 153351.00 103857.00 9/05 182142.00 122499.00
PERFORMANCE OF A HYPOTHETICAL $100,000 INVESTMENT IN ADVISER SHARES(1) ---------------------------------------- (LINE GRAPH)
ADVISER SHARES RUSSELL 2000(R) INDEX** -------------- ----------------------- 1/21/97 100000.00 100000.00 3/97 96748.00 91790.00 3/98 139800.00 130351.00 3/99 110858.00 109156.00 3/00 145228.00 149860.00 3/01 143148.00 126887.00 3/02 176951.00 144625.00 3/03 146245.00 105620.00 3/04 228919.00 173037.00 3/05 249788.00 182398.00 9/05 266963.00 199197.00
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) ---------------------------------------- (LINE GRAPH)
INVESTOR SHARES RUSSELL 2000(R) INDEX** --------------- ----------------------- 10/22/96 10000.00 10000.00 3/97 10684.00 9988.00 3/98 15430.00 14184.00 3/99 12229.00 11877.60 3/00 16027.00 16306.80 3/01 15783.00 13807.00 3/02 19493.00 15737.20 3/03 16098.00 11492.90 3/04 25177.00 18828.80 3/05 27443.00 19847.40 9/05 29300.00 21675.40
AVERAGE ANNUAL TOTAL RETURNS(1) --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR 10 YEAR INSTITUTIONAL ADVISER INVESTOR Institutional (2/22/89) 7.04% 18.77% 13.53% 13.80% 14.34% n/a n/a Adviser (1/21/97) 6.88% 18.43% 13.27% n/a n/a 11.96% n/a Investor (10/22/96) 6.77% 18.20% 13.17% n/a n/a n/a 12.78% Russell 2000(R) Index** 9.21% 17.95% 6.45% 9.37% 10.81% 8.25% 9.04%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * Not annualized. ** The Russell 2000(R) Index measures the performance of the 2,000 smallest companies in the Russell 3000(R) Index, and represents approximately 8% of the total market capitalization of the Russell 3000(R) Index. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Adviser Investor FUND OVERVIEW(2) Shares Shares Shares -------------------------------------------------------------- Initial Investment $50,000 $100,000 $2,500 Inception Date 2/22/89 1/21/97 10/22/96 Total Net Assets ($ x $902,633 $41,062 $304,839 1,000) Ticker Symbol USCIX LIFUX BRSCX Cusip 51855Q408 51855Q739 51855Q820 NAV $14.45 $14.30 $14.20 Expense Ratio(3) 1.06% 1.28% 1.40%
FUND CHARACTERISTICS(2) -------------------------------------------------------- Number of Securities 777 Median Market Capitalization ($Wtd. x 1,000,000) $948 Portfolio Turnover (One year trailing) 65.96% Price to Earnings (P/E) 19.71 Price to Book (P/B) 1.95 Price to Cash Flow 12.52 Beta 1.15 Return on Equity 10.77% Five-Year Earnings Growth 26.62%
TOP EQUITY HOLDINGS(2) % of Net Assets -------------------------------------------------------- Frontier Oil Corp. 1.3% Walter Industrials, Inc. 1.2% Lennox International, Inc. 1.1% Aviall, Inc. 1.1% United Therapeutics Corp. 1.1% Granite Construction 1.1% Veritas DGC, Inc. 1.0% Microsemi Corp. 1.0% Earthlink, Inc. 0.9% Universal Forest Products 0.9% TOTAL 10.7% PORTFOLIO COMPOSITION(2) % of Net Assets --------------------------------------------------------
SECTOR WEIGHTINGS
CONSUMER INFORMATION HEALTH CONSUMER INDUSTRIALS DISCRETIONARY FINANCIALS TECHNOLOGY CARE MATERIALS ENERGY STAPLES UTILITIES ----------- ------------- ---------- ----------- ------ --------- ------ -------- --------- 18.4 18.1 18 14.3 9.7 7.9 5.7 4.2 3 TELECOMMUNICATIONS SERVICES ------------------ 0.7
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. 12 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg International Equity Fund as of 9/30/05 (Unaudited) PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) ------------------------------------------------------------ (LINE GRAPH)
INSTITUTIONAL SHARES MSCI-EAFE INDEX** -------------------- ----------------- 6/7/00 50000.00 50000.00 3/01 40750.00 38140.00 3/02 37342.00 35004.90 3/03 29625.00 26971.30 3/04 45566.00 42655.10 3/05 52109.00 49258.10 9/05 57087.00 53991.80
PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN INVESTOR SHARES(1) ------------------------------------------------------------ (LINE GRAPH)
INVESTOR SHARES MSCI-EAFE(R) INDEX** --------------- -------------------- 12/5/00 10000.00 10000.00 3/01 9053.00 8684.00 3/02 8254.00 7970.18 3/03 6544.00 6141.02 3/04 10052.00 9712.02 3/05 11438.00 11215.40 9/05 12521.00 12293.20
AVERAGE ANNUAL TOTAL RETURNS(1) --------------------------------------------------------------------------------
SINCE INCEPTION SINCE INCEPTION CLASS AND INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (6/7/00) 9.55% 25.73% 4.53% 2.53% n/a Investor (12/5/00) 9.47% 25.45% n/a n/a 4.77% MSCI EAFE(R) Index** 9.61% 26.32% 3.55% 1.45% 4.37%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Investors cannot invest directly in any index. * Not annualized. ** The Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE(R) Index) Index is a free float-adjusted market capitalization index that is designed to measure market equity performance in 21 developed market countries, excluding the U.S. and Canada. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 6/7/00 12/5/00 Total Net Assets ($ x 1,000) $18,410 $12,648 Ticker Symbol REQIX RIEIX Cusip 51855Q507 51855Q812 NAV $10.55 $10.52 Expense Ratio(3) 1.34% 1.72%
FUND CHARACTERISTICS (2) -------------------------------------------------------- Number of Securities 334 Median Market Capitalization ($Wtd. x $27,640 1,000,000) Portfolio Turnover (One year trailing) 64.60% Price to Earnings (P/E) 16.35 Price to Book (P/B) 1.79 Price to Cash Flow 8.61 Beta 1.01 Return on Equity 11.61% Five-Year Earnings Growth 14.81%
TOP EQUITY HOLDINGS(2) % of Net Assets -------------------------------------------------------- Vodafone Group plc 2.4% Eni S.p.A. 2.0% UBS AG 1.7% Royal Bank of Scotland Group plc 1.6% Anglo American plc 1.5% Banco Santander Central Hispano SA 1.4% HBOS plc 1.4% BNP Paribas 1.4% Royal Dutch Shell plc, Class B 1.3% BP plc 1.3% TOTAL 16.0%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. Laudus Trust Semi-Annual Report 13 Performance and Fund Facts continued Laudus Rosenberg International Equity Fund as of 9/30/05 (Unaudited) PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS
CONSUMER TELECOMMUNICATIONS HEALTH FINANCIALS ENERGY MATERIALS INDUSTRIALS DISCRETIONARY SERVICES CARE UTILITIES ---------- ------ --------- ----------- ------------- ------------------ ------ --------- 28.8 13 12.2 9.7 9.4 8.1 6.1 5.6 CONSUMER INFORMATION STAPLES TECHNOLOGY -------- ----------- 4.5 2.6
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ COUNTRY WEIGHTINGS
UNITED KINGDOM JAPAN FRANCE SWITZERLAND GERMANY SPAIN AUSTRALIA ITALY SWEDEN BELGIUM ------- ----- ------ ----------- ------- ----- --------- ----- ------ ------- 23.2 22.2 8.8 8.2 7 5.9 5 4 2.9 1.9 HONG OTHER FINLAND KONG NORWAY COUNTRIES ------- ---- ------ --------- 1.8 1.6 1.6 6
(1) Portfolio holdings are subject to change and may not represent current or future holdings. 14 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg International Small Capitalization Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
S&P/CITIGROUP WORLD INSTITUTIONAL SHARES NGSCEXUS INDEX** EX US EMI *** -------------------- ---------------- ------------------- 9/23/96 50000.00 50000.00 50000.00 3/97 50650.00 49560.00 48865.00 3/98 51922.00 49788.00 52862.20 3/99 47336.00 44161.90 51308.00 3/00 62500.00 53502.20 63734.80 3/01 55760.00 44995.30 50050.90 3/02 53086.00 43011.00 50061.00 3/03 50242.00 39325.00 41765.90 3/04 89115.00 70863.60 73645.70 3/05 112747.00 88211.10 89914.10 9/05 123361.00 96494.10 99229.20
S&P/CITIGROUP WORLD EX INVESTOR SHARES NGSCEXUS INDEX** US EMI*** --------------- ---------------- ---------------------- 10/29/96 10000.00 10000.00 10000.00 3/97 10090.00 9909.00 9791.00 3/98 10314.00 9954.58 10591.90 3/99 9369.00 8829.71 10280.50 3/00 12317.00 10697.20 12770.40 3/01 10952.00 9072.29 10028.60 3/02 10396.00 8672.21 10030.60 3/03 9821.00 7929.00 8368.56 3/04 17375.00 14288.10 14756.30 3/05 21919.00 17785.80 18015.90 9/05 23937.00 19455.90 19882.40
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (9/23/96) 9.41% 37.15% 15.30% 10.53% n/a Investor (10/29/96) 9.21% 36.58% 14.96% n/a 10.28% NGSCexUS** 9.39% 33.28% 14.19% 7.56% 7.64% S&P/ Citigroup World ex US EMI*** 10.36% 33.47% 10.84% 7.89% 8.00%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. Small capitalization funds typically carry additional risks since smaller companies generally have experienced a greater degree of market volatility. Investors cannot invest directly in any index. * Not annualized. ** The Nomura Global Small Cap World ex US Index (NGSC ex US) is an unmanaged index of non-U.S. small-capitalization companies. The universe consists of small companies (approximately the bottom 15% by market capitalization in each market) in 22 developed countries. *** S&P/Citigroup World ex US Extended Market Index (EMI) is a float-adjusted index which measures the performance of small companies (approximately the bottom 20% by market capitalization) in 25 developed equity markets. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 9/23/96 10/29/96 Total Net Assets ($ x 1,000) $349,641 $527,646 Ticker Symbol ICSIX RISIX Cusip 51855Q606 51855Q796 NAV $18.48 $18.27 Expense Ratio(3) 1.42% 1.78%
FUND CHARACTERISTICS (2) -------------------------------------------------------- Number of Securities 973 Median Market Capitalization ($Wtd. x 1,000,000) $1,903 Portfolio Turnover (One year trailing) 106.09% Price to Earnings (P/E) 19.50 Price to Book (P/B) 1.41 Price to Cash Flow 8.48 Beta 0.95 Return on Equity 7.49% Five-Year Earnings Growth 9.12%
TOP EQUITY HOLDINGS(2) % of Net Assets -------------------------------------------------------- VNU NV 0.8% ERG S.p.A. 0.8% DSM NV 0.8% Fresenius AG 0.7% Degussa AG 0.7% Friends Provident plc 0.7% Ciments Francais 0.7% Hanson plc 0.7% Shire Pharmaceuticals plc 0.7% Corus Group plc 0.7% TOTAL 7.3%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. Laudus Trust Semi-Annual Report 15 Performance and Fund Facts continued Laudus Rosenberg International Small Capitalization Fund as of 9/30/05 (Unaudited) PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS
CONSUMER HEALTH CONSUMER INFORMATION FINANCIALS DISCRETIONARY INDUSTRIALS MATERIALS CARE ENERGY STAPLES TECHNOLOGY UTILITIES ---------- ------------- ----------- --------- ------ ------ -------- ----------- --------- 22.1 20 19.5 15 6.7 5.1 4.3 2.9 2.5 TELECOMMUNICATIONS SERVICES ------------------ 1.9
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ COUNTRY WEIGHTINGS
UNITED JAPAN KINGDOM SWITZERLAND FRANCE CANADA ITALY GERMANY AUSTRALIA SWEDEN NETHERLANDS ----- ------- ----------- ------ ------ ----- ------- --------- ------ ----------- 20.7 20.5 6.9 6.3 5.6 5.5 5.3 4.4 3.2 3.1 SOUTH OTHER SPAIN KOREA FINLAND COUNTRIES ----- ----- ------- --------- 3.1 2.9 2.6 9.9
(1) Portfolio holdings are subject to change and may not represent current or future holdings. 16 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
INSTITUTIONAL SHARES 90-DAY T-BILLS -------------------- -------------- ----------------------------------------------------------- ----------------------------------------------------------- 10/19/98 50000 50000 3/99 52569 51005 3/00 57731 53529.7 3/01 54969 56623.8 3/02 60025 58350.8 3/03 67769 59243.6 3/04 63589 59812.3 3/05 67357 60924.8 9/05 68594 61917.9
INVESTOR SHARES 90-DAY T-BILLS --------------- -------------- 11/11/98 10000 10000 3/99 10471 10169 3/00 11454 10672.4 3/01 10875 11289.2 3/02 11850 11633.5 3/03 13330 11811.5 3/04 12469 11924.9 3/05 13158 12146.7 9/05 13388 12344.7
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (10/19/98) 1.84% 8.98% 4.57% 4.66% n/a Investor (11/11/98) 1.75% 8.67% 4.25% n/a 4.33% 90 day T-bills 1.63% 2.83% 2.35% 3.12% 3.11%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Mid-capitalization stocks typically carry additional risk, since smaller companies generally have higher risk and volatility. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's performance. AXA Rosenberg attempts to achieve returns for the Fund's shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills. * Not annualized. (1) Total returns include change in share price and reinvestment of distributions. Total returns 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.
FUND OVERVIEW(2) Institutional Investor Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 10/19/98 11/11/98 Total Net Assets ($ x 1,000) $12,864 $7,222 Ticker Symbol SSMNX RMNIX Cusip 51855Q804 51855Q770 NAV $11.65 $11.66 Expense Ratio(3) 2.57% 2.86% Expense Ratio(4) 1.24% 1.61%
FUND CHARACTERISTICS(2) Long Short ---------------------------------------------------------- Number of Securities 89 80 Median Market Capitalization $16,374 $16,351 ($Wtd. x 1,000,000) Portfolio Turnover (One year 180.68% 132.60% trailing) Price to Earnings (P/E) 16.05 29.5 Price to Book (P/B) 2.56 3.49 Price to Cash Flow 10.39 16.82 Beta 0.92 1.01 Return on Equity 18.06% 12.64% Five-Year Earnings Growth 27.05% 15.62%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. This amount includes interest expense and dividend expense on securities sold short. (4) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses, exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short. Laudus Trust Semi-Annual Report 17 Performance and Fund Facts continued Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund as of 9/30/05 (Unaudited)
TOP EQUITY HOLDINGS(1) % of Net Assets Long ------------------------------------------------------------ Bank of America Corp. 4.0% Altria Group, Inc. 2.9% Xto Energy, Inc. 2.8% Anadarko Petroleum Corp. 2.7% Occidental Petroleum Corp. 2.6% Burlington Northern Santa 2.6% Unitedhealth Group, Inc. 2.5% Prudential Financial, Inc. 2.5% Coach, Inc. 2.4% Motorola, Inc. 2.4% TOTAL 27.4%
TOP EQUITY HOLDINGS(1) % of Net Assets Short ------------------------------------------------------------ General Electric Co. -4.2% Ebay, Inc. -2.8% Goldman Sachs Group, Inc. -2.4% United Parcel Service, Inc. -2.3% Linear Technology Corp. -2.3% Progressive Corp. -2.3% Marsh & McLennan Cos., Inc. -2.2% Electronic Arts, Inc. -2.1% Eli Lilly & Co. -2.1% Verizon Communications -2.0% TOTAL -24.7%
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS--LONG POSITIONS
CONSUMER INFORMATION HEALTH CONSUMER DISCRETIONARY FINANCIALS INDUSTRIALS TECHNOLOGY ENERGY CARE STAPLES UTILITIES MATERIALS ------------- ---------- ----------- ----------- ------ ------ -------- --------- --------- 20.9 19.2 13.3 12.3 11.6 6.3 5.7 4.6 4.2 TELECOMMUNICATIONS SERVICES ------------------ 1.9
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS--SHORT POSITIONS
CONSUMER INFORMATION HEALTH CONSUMER TELECOMMUNICATIONS FINANCIALS DISCRETIONARY TECHNOLOGY CARE STAPLES INDUSTRIALS UTILITIES SERVICES ---------- ------------- ----------- ------ -------- ----------- --------- ------------------ 29.9 16.60 12.50 12.40 10.10 7.30 6.10 3.30 MATERIALS --------- 1.80
(1) Portfolio holdings are subject to change and may not represent current or future holdings. 18 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg Global Long/Short Equity Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
INSTITUTIONAL SHARES 90-DAY T-BILLS -------------------- -------------- ----------------------------------------------------------- ----------------------------------------------------------- 9/29/00 50000 50000 3/01 48218 51435 3/02 54106 53003.8 3/03 63275 53814.7 3/04 60236 54331.3 3/05 61942 55341.9 9/05 64927 56244
INVESTOR SHARES 90-DAY T-BILLS --------------- -------------- 8/23/01 10000 10000 3/02 10358 10168 3/03 12076 10323.6 3/04 11462 10422.7 3/05 11748 10492.5 9/05 12290 10687.7
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (9/29/00) 4.82% 8.94% 5.36% 5.36% n/a Investor (8/23/01) 4.61% 8.48% n/a n/a 5.15% 90 day T-bills 1.63% 2.83% 2.35% 2.38% 1.87%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's performance. AXA Rosenberg attempts to achieve returns for the Fund's shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills. There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. * Not annualized. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------ Initial Investment $50,000 $2,500 Inception Date 9/29/00 8/23/01 Total Net Assets ($ x 1,000) $21,556 $8,130 Ticker Symbol MSMNX RMSIX Cusip 51855Q879 51855Q754 NAV $12.18 $12.02 Expense Ratio(3) 3.92% 4.28% Expense Ratio(4) 1.99% 2.33%
FUND CHARACTERISTICS (2) Long Short ----------------------------------------------------------- Number of Securities 524 531 Median Market Capitalization $10,567 $10,717 ($Wtd. x 1,000,000) Portfolio Turnover (One year 196.52% 153.20% trailing) Price to Earnings (P/E) 22.52 23.39 Price to Book (P/B) 2.12 2.85 Price to Cash Flow 11.35 12.51 Beta 1.07 1.05 Return on Equity 10.06% 13.22% Five-Year Earnings Growth 18.30% 17.81%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. This amount includes interest expense and dividend expense on securities sold short. (4) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses, exclusive of nonrecurring account fees, extraordinary expenses, interest expense and dividends on securities sold short. Laudus Trust Semi-Annual Report 19 Performance and Fund Facts continued Laudus Rosenberg Global Long/Short Equity Fund as of 9/30/05 (Unaudited)
TOP EQUITY HOLDINGS(1) % of Net Assets Long ------------------------------------------------------------- Unitedhealth Group, Inc. 1.0% Motorola, Inc. 0.9% Bank of America Corp. 0.9% Marvell Technology Group Ltd. 0.6% CVS Corp. 0.6% TXU Corp. 0.6% Caterpillar, Inc. 0.6% Amgen, Inc. 0.6% Xto Energy, Inc. 0.6% Occidental Petroleum Corp. 0.5% TOTAL 6.9% TOP EQUITY HOLDINGS(1) % of Net Assets Short ------------------------------------------------------------- General Electric Co. -1.8% Wal-Mart Stores, Inc. -1.3% Eli Lilly & Co. -0.9% Microsoft Corp. -0.8% Amazon.Com, Inc. -0.7% Progressive Corp. -0.7% Zimmer Holdings, Inc. -0.7% Newmont Mining Corp. -0.7% Wm. Wrigley Jr. Co. -0.7% Electronic Arts, Inc. -0.7% TOTAL -9.0%
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS--LONG HOLDINGS
CONSUMER INFORMATION HEALTH CONSUMER FINANCIALS INDUSTRIALS DISCRETIONARY ENERGY TECHNOLOGY CARE MATERIALS STAPLES UTILITIES ---------- ----------- ------------- ------ ----------- ------ --------- -------- --------- 18 16.6 15 10.4 10.3 8.7 8.5 6.5 4 TELECOMMUNICATIONS SERVICES ------------------ 2
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ COUNTRY WEIGHTINGS--LONG HOLDINGS
UNITED UNITED STATES JAPAN KINGDOM FRANCE ITALY GERMANY SWITZERLAND SPAIN NETHERLANDS SWEDEN ------ ----- ------- ------ ----- ------- ----------- ----- ----------- ------ 50.4 25.2 6.9 2.6 2.4 2.4 2.3 2 1.1 1 BELGIUM IRELAND NORWAY DENMARK FINLAND AUSTRIA ------- ------- ------ ------- ------- ------- 0.9 0.9 0.6 0.5 0.4 0.4
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS--SHORT POSITIONS
CONSUMER HEALTH INFORMATION CONSUMER TELECOMMUNICATIONS DISCRETIONARY FINANCIALS INDUSTRIALS CARE TECHNOLOGY STAPLES MATERIALS SERVICES ------------- ---------- ----------- ------ ----------- -------- --------- ------------------ 21.8 19.3 13.9 12.4 12.2 8.8 7.4 2.4 UTILITIES ENERGY --------- ------ 1.8 0
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ COUNTRY WEIGHTINGS--SHORT POSITIONS
UNITED UNITED STATES JAPAN KINGDOM FRANCE ITALY GERMANY BELGIUM SWEDEN SPAIN NETHERLANDS ------ ----- ------- ------ ----- ------- ------- ------ ----- ----------- 50.6 25.00 7.50 3.20 3.00 2.20 1.70 1.40 1.30 1.30 DENMARK NORWAY FINLAND SWITZERLAND IRELAND ------- ------ ------- ----------- ------- 1.10 0.90 0.40 0.20 0.20
(1) Portfolio holdings are subject to change and may not represent current or future holdings. 20 Laudus Trust Semi-Annual Report Performance and Fund Facts Laudus Rosenberg Value Long/Short Equity Fund as of 9/30/05 (Unaudited)
PERFORMANCE OF A HYPOTHETICAL PERFORMANCE OF A HYPOTHETICAL $50,000 INVESTMENT IN INSTITUTIONAL SHARES(1) $10,000 INVESTMENT IN INVESTOR SHARES(1) ----------------------------------------------------------- -----------------------------------------------------------
INSTITUTIONAL SHARES 90-DAY T-BILLS -------------------- -------------- ----------------------------------------------------------- ----------------------------------------------------------- 12/16/97 50000 50000 3/98 49850 50753.6 3/99 46207 53179.7 3/00 39678 55812.1 3/01 46012 59038 3/02 52236 60838.7 3/03 61097 61769.5 3/04 57541 62362.5 3/05 61272 63522.4 9/05 61797 64557.8
INVESTOR SHARES 90-DAY T-BILLS --------------- -------------- 12/18/97 10000 10000 3/98 9960 10147 3/99 9197 10632 3/00 7872 11158.3 3/01 9091 11803.3 3/02 10295 12163.3 3/03 11997 12349.4 3/04 11284 12467.9 3/05 11974 12699.8 9/05 12055 12906.8
AVERAGE ANNUAL TOTAL RETURNS(1) ------------------------------------------------------------
CLASS AND INCEPTION SINCE INCEPTION SINCE INCEPTION DATE 6 MONTHS* 1 YEAR 5 YEAR INSTITUTIONAL INVESTOR Institutional (12/16/97) 0.86% 5.16% 8.86% 2.76% n/a Investor (12/18/97) 0.67% 4.80% 8.55% n/a 2.43% 90 day T-bills 1.63% 2.83% 2.35% 3.34% 3.33%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, VISIT WWW.LAUDUSFUNDS.COM. PERFORMANCE DATA QUOTED DOES NOT REFLECT THE NON-RECURRING REDEMPTION FEE OF 2% THAT MAY BE CHARGED IF SHARES ARE SOLD OR EXCHANGED WITHIN 30 DAYS OF THE PURCHASE DATE. IF THESE FEES WERE REFLECTED, THE PERFORMANCE DATA QUOTED WOULD BE LOWER. Investments in long/short funds are more volatile and risky than some other forms of investments. Since they have both long and short portfolios, an investment will involve risks associated with twice the number of investment decisions made for a typical stock fund. These types of Funds typically have a high portfolio turnover that could increase transaction costs and cause short-term capital gains to be realized. While it may be the intent of the Manager to take long positions in stocks that outperform the market and short positions in stocks that underperform the market, there is no assurance that the Manager will be successful. The Fund uses the return that an investor could achieve through an investment in 3-month U.S. Treasury Bills as a benchmark against which to measure the Fund's performance. AXA Rosenberg attempts to achieve returns for the Fund's shareholders which exceed the benchmark. An investment in the Fund is different from an investment in 3-month U.S. Treasury Bills because, among other differences, U.S. Treasury Bills are backed by the full faith and credit of the U.S. Government, U.S. Treasury Bills have a fixed rate of return, investors in U.S. Treasury Bills do not risk losing their investment, and an investment in the Fund is more volatile than an investment in U.S. Treasury Bills. Value-based investments are subject to the risk that the broad market may not recognize their value. * Not annualized. (1) Total returns include change in share price and reinvestment of distributions. Total returns reflect the waiver of a portion of a Fund's advisory fees for certain periods since the inception date. In such instances, and without the waiver of fees, total returns would have been lower.
Institutional Investor FUND OVERVIEW(2) Shares Shares ------------------------------------------------------------- Initial Investment $50,000 $2,500 Inception Date 12/16/97 12/18/97 Total Net Assets ($ x 1,000) $144,041 $43,129 Ticker Symbol BMNIX BRMIX Cusip 51855Q861 51855Q762 NAV $10.60 $10.48 Expense Ratio(3) 3.00% 3.32% Expense Ratio(4) 1.74% 2.07%
FUND CHARACTERISTICS (2) Long Short ---------------------------------------------------------- Number of Securities 898 508 Median Market Capitalization $ 2,375 $2,279 ($Wtd. x 1,000,000) Portfolio Turnover (One year 170.98% 88.00% trailing) Price to Earnings (P/E) 20.6 49.19 Price to Book (P/B) 2.16 2.9 Price to Cash Flow 12.96 18.35 Beta 1.19 1.28 Return on Equity 11.44% 6.06% Five-Year Earnings Growth 25.62% 10.82%
(2) Portfolio holdings are subject to change and may not represent current or future holdings. (3) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses. This amount includes interest expense and dividend expense on securities sold short. (4) Reflects any applicable contractual limitations by Manager to waive its management fee and/or bear certain expenses, exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short. Laudus Trust Semi-Annual Report 21 Performance and Fund Facts continued Laudus Rosenberg Value Long/Short Equity Fund as of 9/30/05 (Unaudited)
TOP EQUITY HOLDINGS(1) % of Net Assets Long ------------------------------------------------------------- Everest Re Group Ltd. 0.9% Pulte Homes, Inc. 0.9% BMC Software, Inc. 0.9% Ultra Petroleum Corp. 0.9% Invitrogen Corp. 0.9% Bausch & Lomb, Inc. 0.8% WebMD Corp. 0.8% Autodesk, Inc. 0.8% W.W. Grainger, Inc. 0.8% Intersil Corp. 0.8% TOTAL 8.5% TOP EQUITY HOLDINGS(1) % of Net Assets Short ------------------------------------------------------------- Plum Creek Timber Co., Inc. -1.0% E*Trade Financial Corp. -1.0% Willis Group Holdings Ltd. -0.9% General Growth Properties, Inc. -0.9% Amylin Pharmaceuticals, Inc. -0.9% Applera Corp. -0.9% Avalonbay Communities, Inc. -0.9% ChoicePoint, Inc. -0.8% Janus Capital Group, Inc. -0.8% NAVTEQ Corp. -0.8% TOTAL -8.9%
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS--LONG HOLDINGS
CONSUMER INFORMATION HEALTH CONSUMER DISCRETIONARY FINANCIALS INDUSTRIALS TECHNOLOGY CARE MATERIALS ENERGY STAPLES UTILITIES ------------- ---------- ----------- ----------- ------ --------- ------ -------- --------- 21.4 19 17 13.5 11.6 8.8 3.6 2.8 1.6 TELECOMMUNICATIONS SERVICES ------------------ 0.7
PORTFOLIO COMPOSITION(1) % of Net Assets ------------------------------------------------------------ SECTOR WEIGHTINGS--SHORT POSITIONS
CONSUMER INFORMATION HEALTH CONSUMER FINANCIALS DISCRETIONARY TECHNOLOGY CARE INDUSTRIALS MATERIALS STAPLES UTILITIES ---------- ------------- ----------- ------ ----------- --------- -------- --------- 25.3 18.7 16.4 13.8 11.7 7.2 3.9 1.9 TELECOMMUNICATIONS SERVICES ENERGY ------------------ ------ 0.9 0.2
(1) Portfolio holdings are subject to change and may not represent current or future holdings. 22 Laudus Trust Semi-Annual Report Disclosure of Fund Expenses EXAMPLES FOR A $1,000 INVESTMENT As a fund shareholder, you incur two types of costs: transaction costs, such as redemption fees; and, ongoing costs, such as management fees, transfer agent and shareholder services fees, and other fund expenses. The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the period beginning April 1, 2005 and held through September 30, 2005, unless otherwise noted. ACTUAL RETURN lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value / $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled "Expenses Paid During Period." HYPOTHETICAL RETURN lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund's share classes' actual expense ratios and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as redemption fees. If these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES EXPENSE RATIO(1) ACCOUNT VALUE ACCOUNT VALUE PAID DURING PERIOD (2) (Annualized) at 4/1/05 at 9/30/05 4/1/05 - 9/30/05 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND Institutional Shares 0.99% Actual Return $1,000.00 $1,073.80 $ 5.15 Hypothetical 5% Return $1,000.00 $1,020.10 $ 5.01 Investor Shares 1.35% Actual Return $1,000.00 $1,072.00 $ 7.01 Hypothetical 5% Return $1,000.00 $1,018.30 $ 6.83 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND Institutional Shares 0.99% Actual Return $1,000.00 $1,079.30 $ 5.16 Hypothetical 5% Return $1,000.00 $1,020.10 $ 5.01 Investor Shares 1.33% Actual Return $1,000.00 $1,077.30 $ 6.93 Hypothetical 5% Return $1,000.00 $1,018.40 $ 6.73 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND Institutional Shares Actual Return* 0.00% $1,000.00 $1,121.00 $ 0.00 Hypothetical 5% Return** 0.00% $1,000.00 $1,025.07 $ 0.00 Hypothetical 5% Return**(, 3) 0.99% $1,000.00 $1,020.10 $ 5.01 Investor Shares Actual Return* 0.36% $1,000.00 $1,119.00 $ 1.59 Hypothetical 5% Return** 0.36% $1,000.00 $1,023.26 $ 1.83 Hypothetical 5% Return**(, 3) 1.35% $1,000.00 $1,018.30 $ 6.83 ---------------------------------------------------------------------------------------------------------------------------------
(1) Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. (2) Expenses for each fund or share class are equal to that fund's or share class' annualized expense ratio (net of any expenses waived or reimbursed), multiplied by the average account value for the hypothetical account over the period, multiplied by 183 days of the period, and divided by 365 days of the fiscal year. (3) Example reflects the Manager's contractual agreement to limit the annual expenses to 0.99%, effective November 1, 2005, exclusive of nonrecurring account fees, extraordinary expenses, interest expense, dividends on securities sold short, service fees, subtransfer agency and subaccounting fees, and distribution and shareholder services fees. * For the period May 2, 2005 (commencement of operations) through September 30, 2005. ** Information shown reflects values using the expense ratios from the date of commencement of operations (May 2, 2005) to September 30, 2005 and has been annualized to reflect values for the period from April 1, 2005 at September 30, 2005. Laudus Trust Semi-Annual Report 23
BEGINNING ENDING EXPENSES EXPENSE RATIO(1) ACCOUNT VALUE ACCOUNT VALUE PAID DURING PERIOD (2) (Annualized) at 4/1/05 at 9/30/05 4/1/05 - 9/30/05 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. DISCOVERY FUND Institutional Shares 1.14% Actual Return $1,000.00 $1,097.70 $ 5.99 Hypothetical 5% Return $1,000.00 $1,019.35 $ 5.77 Investor Shares 1.49% Actual Return $1,000.00 $1,096.30 $ 7.83 Hypothetical 5% Return $1,000.00 $1,017.60 $ 7.54 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND Institutional Shares 1.06% Actual Return $1,000.00 $1,070.40 $ 5.50 Hypothetical 5% Return $1,000.00 $1,019.75 $ 5.37 Adviser Shares 1.28% Actual Return $1,000.00 $1,068.80 $ 6.64 Hypothetical 5% Return $1,000.00 $1,018.65 $ 6.48 Investor Shares 1.40% Actual Return $1,000.00 $1,067.70 $ 7.26 Hypothetical 5% Return $1,000.00 $1,018.05 $ 7.08 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND Institutional Shares 1.34% Actual Return $1,000.00 $1,095.50 $ 7.04 Hypothetical 5% Return $1,000.00 $1,018.35 $ 6.78 Investor Shares 1.72% Actual Return $1,000.00 $1,094.70 $ 9.03 Hypothetical 5% Return $1,000.00 $1,016.44 $ 8.69 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND Institutional Shares 1.42% Actual Return $1,000.00 $1,094.10 $ 7.45 Hypothetical 5% Return $1,000.00 $1,017.95 $ 7.18 Investor Shares 1.78% Actual Return $1,000.00 $1,092.10 $ 9.34 Hypothetical 5% Return $1,000.00 $1,016.14 $ 9.00 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND Institutional Shares 2.57% Actual Return $1,000.00 $1,018.40 $13.00 Hypothetical 5% Return $1,000.00 $1,012.18 $12.96 Investor Shares 2.86% Actual Return $1,000.00 $1,017.50 $14.46 Hypothetical 5% Return $1,000.00 $1,010.73 $14.42 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND Institutional Shares Actual Return 3.92% $1,000.00 $1,048.20 $20.13 Hypothetical 5% Return $1,000.00 $1,005.41 $19.71 Investor Shares 4.28% Actual Return $1,000.00 $1,046.10 $21.95 Hypothetical 5% Return $1,000.00 $1,003.61 $21.50 --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND Institutional Shares 3.00% Actual Return $1,000.00 $1,008.60 $15.11 Hypothetical 5% Return $1,000.00 $1,010.03 $15.12 Investor Shares 3.32% Actual Return $1,000.00 $1,006.70 $16.70 Hypothetical 5% Return $1,000.00 $1,008.42 $16.72 ---------------------------------------------------------------------------------------------------------------------------------
(1) Based on the most recent six-month expense ratio; may differ from the expense ratio provided in Financial Highlights. (2) Expenses for each fund or share class are equal to that fund's or share class' annualized expense ratio, multiplied by the average account value for the hypothetical account over the period, multiplied by 183 days of the period, and divided by 365 days of the fiscal year. 24 Laudus Trust Semi-Annual Report Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 99.9% AGRICULTURE, FOOD & BEVERAGE - 1.4% 3,700 Dean Foods Co. *.................. $ 143,782 7,100 Kellogg Co. ...................... 327,523 2,200 PepsiAmericas, Inc. .............. 50,006 140 Pilgrim's Pride Corp. ............ 5,096 ----------- 526,407 ----------- AUTOS - 0.9% 100 BorgWarner, Inc. ................. 5,646 130 Oshkosh Truck Corp. .............. 5,611 4,507 PACCAR, Inc. ..................... 305,980 1,090 TRW Automotive Holdings Corp. *... 31,981 ----------- 349,218 ----------- BANKS & CREDIT INSTITUTIONS - 8.6% 31,400 Bank of America Corp. ............ 1,321,940 1,600 Bank of Hawaii Corp. ............. 78,752 17,800 Bank of New York Co., Inc. ....... 523,498 4,100 Comerica, Inc. ................... 241,490 1,100 KeyCorp........................... 35,475 3,500 National City Corp. .............. 117,040 6,270 PNC Financial Services Group...... 363,785 900 U.S. Bancorp...................... 25,272 450 Wachovia Corp. ................... 21,416 9,200 Wells Fargo & Co. ................ 538,844 700 Westcorp.......................... 41,230 ----------- 3,308,742 ----------- BASIC MINERALS & METALS - 1.5% 2,430 Allegheny Technologies, Inc. ..... 75,281 660 Cameco Corp. ..................... 35,310 900 Commercial Metals Co. ............ 30,366 3,280 Freeport-McMoRan Copper & Gold, Inc., Class B................... 159,376 900 Phelps Dodge Corp. ............... 116,937 1,800 Precision Castparts Corp. ........ 95,580 1,000 Southern Peru Copper Corp. ....... 55,960 ----------- 568,810 ----------- BEER, LIQUOR & TOBACCO - 2.3% 11,900 Altria Group, Inc. ............... 877,149 ----------- BIOTECHNOLOGY - 1.2% 4,320 Genentech, Inc. *................. 363,787 1,490 Invitrogen Corp. *................ 112,093 ----------- 475,880 ----------- CELLULAR & WIRELESS - 2.3% 5,550 Nextel Partners, Inc., Class A *............................... 139,305 2,000 NII Holdings, Inc. *.............. 168,900 24,240 SBC Communications, Inc. ......... 581,033 ----------- 889,238 ----------- CHEMICALS & RUBBER - 1.6% 3,600 Agrium, Inc. ..................... 79,092 900 Monsanto Co. ..................... 56,475 3,830 PPG Industries, Inc. ............. 226,698
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, CHEMICALS & RUBBER continued 3,300 RPM International, Inc. .......... $ 60,720 4,000 Sherwin-Williams Co. ............. 176,280 ----------- 599,265 ----------- COMMERCIAL AIRCRAFT & COMPONENTS - 0.7% 5,300 Rockwell Collins, Inc. ........... 256,096 ----------- COMMUNICATIONS UTILITIES - 1.1% 1,220 Google, Inc., Class A *........... 386,081 980 Monster Worldwide, Inc. *......... 30,096 ----------- 416,177 ----------- CONSTRUCTION & HOMEBUILDING - 2.1% 1,070 Beazer Homes USA, Inc. ........... 62,777 2,400 KB HOME........................... 175,680 1,170 M.D.C. Holdings, Inc. ............ 92,301 6,200 Pulte Homes, Inc. ................ 266,104 1,600 Ryland Group, Inc. ............... 109,472 2,260 Toll Brothers, Inc. *............. 100,954 ----------- 807,288 ----------- CONSTRUCTION MATERIALS - 0.2% 500 Eagle Materials, Inc. ............ 60,684 980 Owens-Illinois, Inc. *............ 20,208 70 Vulcan Materials Co. ............. 5,195 ----------- 86,087 ----------- CONSUMER DURABLES - 0.0% 100 Thor Industries, Inc. ............ 3,400 ----------- DRUGS & PHARMACEUTICALS - 1.6% 1,210 Celgene Corp. *................... 65,727 1,292 Endo Pharmaceuticals Holdings, Inc. *.......................... 34,458 4,890 Genzyme Corp. *................... 350,319 6,200 Pfizer, Inc. ..................... 154,814 ----------- 605,318 ----------- ELECTRIC UTILITIES - 2.8% 3,600 Alliant Energy Corp. ............. 104,868 1,830 Energy East Corp. ................ 46,098 4,690 Entergy Corp. .................... 348,561 40 Exelon Corp. ..................... 2,138 510 FirstEnergy Corp. ................ 26,581 9,400 PG&E Corp. ....................... 368,949 840 TXU Corp. ........................ 94,819 2,800 Westar Energy, Inc. .............. 67,564 100 Wisconsin Energy Corp. ........... 3,992 1,080 Xcel Energy, Inc. ................ 21,179 ----------- 1,084,749 ----------- FINANCIAL INVESTMENTS - 2.1% 2,800 American Capital Strategies Ltd. ........................... 102,648 21,400 General Electric Co. ............. 720,538 ----------- 823,186 -----------
Laudus Trust Semi-Annual Report 25 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued FURNITURE & HOUSEHOLD ITEMS - 0.1% 430 HNI Corp. ........................ $ 25,895 870 Thomas & Betts Corp. *............ 29,936 ----------- 55,831 ----------- GAS & OTHER PUBLIC UTILITIES - 0.9% 3,730 KeySpan Corp. .................... 137,189 6,800 NiSource, Inc. ................... 164,900 1,540 Vectren Corp. .................... 43,659 ----------- 345,748 ----------- GOVERNMENT AIRCRAFT & DEFENSE - 1.2% 1,400 Boeing Co. ....................... 95,130 1,360 Northrop Grumman Corp. ........... 73,916 7,200 Raytheon Co. ..................... 273,744 ----------- 442,790 ----------- HEALTH CARE & HOSPITAL - 5.2% 7,447 Aetna, Inc. ...................... 641,485 3,500 Health Net, Inc. *................ 165,620 5,300 Humana, Inc. *.................... 253,764 800 Triad Hospitals, Inc. *........... 36,216 16,200 UnitedHealth Group, Inc. ......... 910,440 ----------- 2,007,525 ----------- INFORMATION & SERVICES - 3.2% 70 CheckFree Corp. *................. 2,647 7,460 H&R Block, Inc. .................. 178,891 6,720 Moody's Corp. .................... 343,258 1,600 Pharmaceutical Product............ 92,016 Development, Inc. * 9,100 Prudential Financial, Inc. ....... 614,796 ----------- 1,231,608 ----------- INSTRUMENTS - 2.9% 1,900 Bausch & Lomb, Inc. .............. 153,292 30 Becton, Dickinson & Co. .......... 1,573 2,070 Edwards Lifesciences Corp. *...... 91,929 5,600 Johnson & Johnson................. 354,368 5,800 Johnson Controls, Inc. ........... 359,889 1,720 Respironics, Inc. *............... 72,550 1,100 Teleflex, Inc. ................... 77,550 ----------- 1,111,151 ----------- INSURANCE - 5.4% 7,370 ACE Ltd. ......................... 346,905 180 Alleghany Corp. *................. 55,080 5,585 Allstate Corp. ................... 308,795 800 American International Group, Inc. ........................... 49,568 1,490 CNA Financial Corp. *............. 44,506 1,500 Everest Re Group Ltd. ............ 146,850 3,150 HCC Insurance Holdings, Inc. ..... 89,870 540 Loews Corp. ...................... 49,901 1,430 MetLife, Inc. .................... 71,257 50 MGIC Investment Corp. ............ 3,210 5,850 Old Republic International Corp. .......................... 156,020 3,000 PacifiCare Health Systems, Inc. *............................... 239,340 2,700 Radian Group, Inc. ............... 143,370
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, INSURANCE continued 1,100 StanCorp Financial Group, Inc. ... $ 92,620 7,100 UnumProvident Corp. .............. 145,550 3,300 W. R. Berkley Corp. .............. 130,284 ----------- 2,073,126 ----------- INTEGRATED OIL COS. - 11.5% 19,200 ChevronTexaco Corp. .............. 1,242,816 16,300 ConocoPhillips.................... 1,139,533 23,600 Exxon Mobil Corp. ................ 1,499,544 283 Marathon Oil Corp. ............... 19,507 5,900 Occidental Petroleum Corp. ....... 504,037 ----------- 4,405,437 ----------- IT HARDWARE - 5.6% 2,000 Cisco Systems, Inc. *............. 35,860 3,600 Harris Corp. ..................... 150,480 3,300 Intel Corp. ...................... 81,345 3,514 Intersil Corp., Class A........... 76,535 7,500 Marvell Technology Group Ltd. *... 345,825 3,440 MEMC Electronic Materials, Inc. *............................... 78,398 28,800 Motorola, Inc. ................... 636,192 400 Research In Motion Ltd. *......... 27,360 20,610 Texas Instruments, Inc. .......... 698,679 200 The DIRECTV Group, Inc. *......... 2,996 ----------- 2,133,670 ----------- LAND & WATER TRANSPORTATION - 1.7% 8,700 Burlington Northern Santa Fe Corp. .......................... 520,260 1,400 CNF, Inc. ........................ 73,500 800 Overseas Shipholding Group, Inc. ........................... 46,664 ----------- 640,424 ----------- MAINFRAME & MINICOMPUTERS - 0.9% 10,385 Dell, Inc. *...................... 355,167 ----------- METAL PRODUCTS & MACHINERY - 1.8% 2,500 Black & Decker Corp. ............. 205,226 380 Caterpillar, Inc. ................ 22,325 3,350 Crown Holdings, Inc. *............ 53,399 1,270 Cummins, Inc. .................... 111,747 500 Dover Corp. ...................... 20,395 1,000 Energizer Holdings, Inc. *........ 56,700 1,940 Joy Global, Inc. ................. 97,892 300 Snap-on, Inc. .................... 10,836 860 SPX Corp. ........................ 39,517 470 Terex Corp. *..................... 23,232 1,900 Timken Co. ....................... 56,297 ----------- 697,566 ----------- MISCELLANEOUS FINANCE - 4.5% 2,800 A.G. Edwards, Inc. ............... 122,668 900 Affiliated Managers Group, Inc. *............................... 65,178 700 Chicago Mercantile Exchange....... 236,110 17,730 Citigroup, Inc. .................. 807,069 6,690 JPMorgan Chase & Co. ............. 226,992 900 Lehman Brothers Holdings, Inc. ... 104,832 1,040 Merrill Lynch & Co., Inc. ........ 63,804
26 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, MISCELLANEOUS FINANCE continued 1,390 Nuveen Investments, Class A....... $ 54,752 1,900 Raymond James Financial, Inc. .... 61,028 ----------- 1,742,433 ----------- OIL & COAL RESOURCES - 2.5% 200 Anadarko Petroleum Corp. ......... 19,150 3,510 Chesapeake Energy Corp. .......... 134,258 87 CONSOL Energy, Inc. .............. 6,635 2,200 Massey Energy Co. ................ 112,354 1,600 Noble Energy, Inc. ............... 75,040 400 Peabody Energy Corp. ............. 33,740 2,308 Ultra Petroleum Corp. *........... 131,279 9,600 XTO Energy, Inc. ................. 435,072 ----------- 947,528 ----------- OIL DISTRIBUTION - 0.6% 2,300 Ashland, Inc. .................... 127,052 1,700 Tesoro Petroleum Corp. ........... 114,308 70 Valero Energy Corp. .............. 7,914 ----------- 249,274 ----------- OIL DRILLING & SERVICES - 1.4% 900 Diamond Offshore Drilling, Inc. ........................... 55,125 4,200 Grant Prideco, Inc. *............. 170,730 100 Noble Corp. ...................... 6,846 5,300 Patterson-UTI Energy, Inc. ....... 191,224 2,570 Pride International, Inc. *....... 73,271 910 Rowan Cos., Inc. ................. 32,296 ----------- 529,492 ----------- PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 2.6% 34,800 Hewlett-Packard Co. .............. 1,016,160 ----------- PUBLISHING, BROADCASTING & CINEMA - 2.7% 1,160 McGraw-Hill Cos., Inc. ........... 55,726 1,980 The Walt Disney Co. .............. 47,777 44,862 Time Warner, Inc. ................ 812,452 3,110 Tribune Co. ...................... 105,398 ----------- 1,021,353 ----------- REAL ESTATE INVESTMENT TRUSTS - 0.5% 5,800 HRPT Properties Trust............. 71,978 1,300 SL Green Realty Corp. ............ 88,634 1,590 Trizec Properties, Inc. .......... 36,665 ----------- 197,277 ----------- RESTAURANTS, HOTELS & THEATERS - 1.7% 1,000 Brinker International, Inc. *..... 37,560 6,000 Cendant Corp. .................... 123,840 1,860 Darden Restaurants, Inc. ......... 56,488 1,230 McDonald's Corp. ................. 41,193 8,000 YUM! Brands, Inc. ................ 387,280 ----------- 646,361 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued RETAIL - 6.5% 3,740 AutoNation, Inc. *................ $ 74,688 320 AutoZone, Inc. *.................. 26,640 1,310 Best Buy Co., Inc. ............... 57,024 4,800 Chico's FAS, Inc. *............... 176,640 9,380 CVS Corp. ........................ 272,114 1,860 Federated Department Stores, Inc. ........................... 124,378 25,000 Home Depot, Inc. ................. 953,500 10,310 Lowe's Cos., Inc. ................ 663,964 2,200 Nordstrom, Inc. .................. 75,504 970 Urban Outfitters, Inc. *.......... 28,518 600 Wal-Mart Stores, Inc. ............ 26,292 ----------- 2,479,262 ----------- SOAPS & COSMETICS - 0.2% 140 Ecolab, Inc. ..................... 4,470 1,200 Procter & Gamble Co. ............. 71,352 ----------- 75,822 ----------- SOFTWARE - 3.4% 1,400 Activision, Inc. *................ 28,630 3,153 Autodesk, Inc. ................... 146,425 5,140 BMC Software, Inc. *.............. 108,454 1,860 Cadence Design Systems, Inc. *.... 30,058 3,800 Cognizant Technology Solutions Corp., Class A *................ 177,042 5,600 Computer Sciences Corp. *......... 264,936 340 Compuware Corp. *................. 3,230 70 Fidelity National Financial, Inc. ........................... 3,116 2,600 First American Corp. ............. 118,742 400 International Business Machines Corp. .......................... 32,088 1,000 McAfee, Inc. *.................... 31,420 11,020 Microsoft Corp. .................. 283,546 320 Sybase, Inc. *.................... 7,494 7,893 WebMD Corp. *..................... 87,454 ----------- 1,322,635 ----------- TEXTILES & APPAREL - 1.0% 11,620 Coach, Inc. *..................... 364,403 500 VF Corp. ......................... 28,985 ----------- 393,388 ----------- WHOLESALE - 1.5% 3,700 Avnet, Inc. *..................... 90,465 6,540 McKesson Corp. ................... 310,323 2,600 W.W. Grainger, Inc. .............. 163,592 ----------- 564,380 ----------- TOTAL COMMON STOCK (COST $30,545,317).................... 38,362,418 -----------
Laudus Trust Semi-Annual Report 27 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Fund (Unaudited)
PRINCIPAL VALUE ----------------------------------------------------------- REPURCHASE AGREEMENT - 0.9% $347,000 State Street Bank dated 9/30/05, due 10/3/05 at 2.75% with a maturity value of $347,080 (fully collateralized by Fannie Mae)............................ $ 347,000 ----------- TOTAL REPURCHASE AGREEMENT (COST $347,000)....................... 347,000 ----------- TOTAL INVESTMENTS (COST $30,892,317) (A) - 100.8%....... 38,709,418 NET OTHER ASSETS (LIABILITIES) - (0.8)%.......................... (324,795) ----------- NET ASSETS - 100.0%............... $38,384,623 ===========
--------------- * Non-income producing security. (a) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.................... $8,127,157 Unrealized depreciation.................... (310,056) ---------- Net unrealized appreciation................ $7,817,101 ==========
28 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION GROWTH FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 99.7% AGRICULTURE, FOOD & BEVERAGE - 3.1% 300 Campbell Soup Co. ................ $ 8,925 3,300 Coca-Cola Co. .................... 142,527 300 General Mills, Inc. .............. 14,460 1,000 Kellogg Co. ...................... 46,130 700 Pepsi Bottling Group, Inc. ....... 19,985 300 PepsiAmericas, Inc. .............. 6,819 5,030 PepsiCo, Inc. .................... 285,251 ----------- 524,097 ----------- AIRLINES - 0.3% 500 FedEx Corp. ...................... 43,565 ----------- AUTOS - 0.7% 300 Autoliv, Inc. .................... 13,050 210 BorgWarner, Inc. ................. 11,857 700 Oshkosh Truck Corp. .............. 30,212 875 PACCAR, Inc. ..................... 59,403 ----------- 114,522 ----------- BANKS & CREDIT INSTITUTIONS - 2.4% 3,500 American Express Co. ............. 201,040 400 Bank of America Corp. ............ 16,840 500 Bank of New York Co., Inc. ....... 14,705 10 Capital One Financial Corp. ...... 795 600 Golden West Financial Corp. ...... 35,634 800 SLM Corp. ........................ 42,912 500 U.S. Bancorp...................... 14,040 960 Wells Fargo & Co. ................ 56,227 200 Westcorp.......................... 11,780 ----------- 393,973 ----------- BASIC MINERALS & METALS - 1.1% 970 Allegheny Technologies, Inc. ..... 30,051 810 Freeport-McMoRan Copper & Gold, Inc., Class B................... 39,358 400 Harsco Corp. ..................... 26,228 300 Phelps Dodge Corp. ............... 38,979 600 Precision Castparts Corp. ........ 31,860 400 Southern Peru Copper Corp. ....... 22,384 ----------- 188,860 ----------- BEER, LIQUOR & TOBACCO - 0.8% 800 Altria Group, Inc. ............... 58,968 800 Anheuser-Busch Cos., Inc. ........ 34,432 800 UST, Inc. ........................ 33,488 ----------- 126,888 ----------- BIOTECHNOLOGY - 3.0% 3,750 Amgen, Inc. *..................... 298,762 1,650 Genentech, Inc. *................. 138,947 900 Gilead Sciences, Inc. *........... 43,884 300 Invitrogen Corp. *................ 22,569 ----------- 504,162 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued CELLULAR & WIRELESS - 0.5% 600 Nextel Partners, Inc., Class A *............................... $ 15,060 500 NII Holdings, Inc. *.............. 42,225 140 Telephone & Data Systems, Inc. ... 5,460 60 Telephone & Data Systems, Inc., Special Shares.................. 2,253 200 U.S. Cellular Corp. *............. 10,684 ----------- 75,682 ----------- CHEMICALS & RUBBER - 1.3% 900 Chemtura Corp. ................... 11,178 1,850 Dow Chemical Co. ................. 77,090 1,100 Monsanto Co. ..................... 69,025 400 Praxair, Inc. .................... 19,172 200 Scotts Miracle-Gro Co., Class A... 17,586 700 Sherwin-Williams Co. ............. 30,849 ----------- 224,900 ----------- COMMERCIAL AIRCRAFT & COMPONENTS - 0.5% 800 Goodrich Corp. ................... 35,472 1,000 Rockwell Collins, Inc. ........... 48,320 ----------- 83,792 ----------- COMMUNICATIONS UTILITIES - 2.5% 4,500 Comcast Corp., Class A *.......... 132,210 600 Google, Inc., Class A *........... 189,876 1,000 Monster Worldwide, Inc. *......... 30,710 2,100 Yahoo!, Inc. *.................... 71,064 ----------- 423,860 ----------- CONSTRUCTION & HOMEBUILDING - 1.9% 300 Beazer Homes USA, Inc. ........... 17,601 450 Centex Corp. ..................... 29,061 1,100 D.R. Horton, Inc. ................ 39,842 300 Hovnanian Enterprises, Inc., Class A *............................. 15,360 500 Jacobs Engineering Group, Inc. *............................... 33,700 500 KB HOME........................... 36,600 500 Lennar Corp., Class A............. 29,880 260 M.D.C. Holdings, Inc. ............ 20,511 1,000 Pulte Homes, Inc. ................ 42,920 400 Ryland Group, Inc. ............... 27,368 700 Toll Brothers, Inc. *............. 31,269 ----------- 324,112 ----------- CONSTRUCTION MATERIALS - 0.4% 8 Eagle Materials, Inc. ............ 971 29 Eagle Materials, Inc., Class B.... 3,355 450 Florida Rock Industries, Inc. .... 28,841 500 Vulcan Materials Co. ............. 37,105 ----------- 70,272 ----------- CONSUMER DURABLES - 0.1% 500 Harley-Davidson, Inc. ............ 24,220 ----------- DRUGS & PHARMACEUTICALS - 4.0% 4,100 Abbott Laboratories............... 173,840 1,400 Bristol-Myers Squibb Co. ......... 33,684
Laudus Trust Semi-Annual Report 29 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Growth Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, DRUGS & PHARMACEUTICALS continued 920 Celgene Corp. *................... $ 49,974 1,800 Eli Lilly & Co. .................. 96,336 543 Endo Pharmaceuticals Holdings, Inc. *.......................... 14,482 700 Forest Laboratories, Inc. *....... 27,279 1,200 Genzyme Corp. *................... 85,968 2,800 Merck & Co., Inc. ................ 76,188 2,700 Schering-Plough Corp. ............ 56,835 1,300 Wyeth............................. 60,151 ----------- 674,737 ----------- ELECTRIC UTILITIES - 1.0% 600 PG&E Corp. ....................... 23,550 1,200 TXU Corp. ........................ 135,456 ----------- 159,006 ----------- FINANCIAL INVESTMENTS - 3.5% 300 American Capital Strategies Ltd. ........................... 10,998 17,300 General Electric Co. ............. 582,491 ----------- 593,489 ----------- FOREST PRODUCTS & PAPER - 0.8% 1,400 3M Co. ........................... 102,704 400 Kimberly-Clark Corp. ............. 23,812 ----------- 126,516 ----------- FURNITURE & HOUSEHOLD ITEMS - 0.4% 200 Ethan Allen Interiors, Inc. ...... 6,270 300 Fortune Brands, Inc. ............. 24,399 470 HNI Corp. ........................ 28,303 390 Thomas & Betts Corp. *............ 13,420 ----------- 72,392 ----------- GAS & OTHER PUBLIC UTILITIES - 0.3% 600 Kinder Morgan, Inc. .............. 57,696 ----------- GOVERNMENT AIRCRAFT & DEFENSE - 1.5% 2,700 Boeing Co. ....................... 183,465 700 Lockheed Martin Corp. ............ 42,728 800 Raytheon Co. ..................... 30,416 ----------- 256,609 ----------- HEALTH CARE & HOSPITAL - 4.6% 1,200 Aetna, Inc. ...................... 103,368 600 Community Health Systems, Inc. *............................... 23,286 700 Coventry Health Care, Inc. *...... 60,214 700 DaVita, Inc. *.................... 32,249 800 HCA, Inc. ........................ 38,336 1,300 Health Management Associates, Inc., Class A................... 30,511 700 Health Net, Inc. *................ 33,124 800 Humana, Inc. *.................... 38,304 730 Laboratory Corp. of America Holdings *...................... 35,558 4 LifePoint Hospitals, Inc. *....... 175 700 Lincare Holdings, Inc. *.......... 28,735
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, HEALTH CARE & HOSPITAL continued 800 Manor Care, Inc. ................. $ 30,728 900 Quest Diagnostics, Inc. .......... 45,486 300 Sierra Health Services, Inc. *.... 20,661 400 Triad Hospitals, Inc. *........... 18,108 4,200 UnitedHealth Group, Inc. ......... 236,040 ----------- 774,883 ----------- INFORMATION & SERVICES - 2.0% 700 CheckFree Corp. *................. 26,474 400 Covance, Inc. *................... 19,196 400 Getty Images, Inc. *.............. 34,416 1,900 H&R Block, Inc. .................. 45,562 20 Manpower, Inc. ................... 888 1,300 Moody's Corp. .................... 66,404 500 Pharmaceutical Product Development, Inc. *............. 28,755 400 Prudential Financial, Inc. ....... 27,024 1,000 Robert Half International, Inc. ........................... 35,590 500 The Brink's Co. .................. 20,530 450 Weight Watchers International, Inc. *.......................... 23,211 210 West Corp. *...................... 7,852 ----------- 335,902 ----------- INSTRUMENTS - 7.3% 2,200 Agilent Technologies, Inc. *...... 72,050 400 Bausch & Lomb, Inc. .............. 32,272 2,900 Baxter International, Inc. ....... 115,623 400 Becton, Dickinson & Co. .......... 20,972 1,200 Boston Scientific Corp. *......... 28,044 300 Danaher Corp. .................... 16,149 540 Edwards Lifesciences Corp. *...... 23,981 300 Guidant Corp. .................... 20,667 9,700 Johnson & Johnson................. 613,816 400 Johnson Controls, Inc. ........... 24,820 2,200 Medtronic, Inc. .................. 117,964 800 PerkinElmer, Inc. ................ 16,296 700 Respironics, Inc. *............... 29,526 400 St. Jude Medical, Inc. *.......... 18,720 500 Stryker Corp. .................... 24,715 700 Thermo Electron Corp. *........... 21,630 300 Zimmer Holdings, Inc. *........... 20,667 ----------- 1,217,912 ----------- INSURANCE - 2.6% 600 ACE Ltd. ......................... 28,242 800 AFLAC, Inc. ...................... 36,240 200 Allmerica Financial Corp. *....... 8,228 170 Ambac Financial Group, Inc. ...... 12,250 600 American International Group, Inc. ........................... 37,176 1,300 Aon Corp. ........................ 41,704 550 HCC Insurance Holdings, Inc. ..... 15,692 300 PacifiCare Health Systems, Inc. *............................... 23,934 109 Philadelphia Consolidated Holding Corp. *......................... 9,254 300 Progressive Corp. ................ 31,431 300 Radian Group, Inc. ............... 15,930 200 Transatlantic Holdings, Inc. ..... 11,400
30 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Growth Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, INSURANCE continued 300 Unitrin, Inc. .................... $ 14,238 300 W. R. Berkley Corp. .............. 11,844 300 WellChoice, Inc. *................ 22,770 1,600 WellPoint, Inc. *................. 121,312 ----------- 441,645 ----------- INTEGRATED OIL COS. - 0.5% 600 ConocoPhillips.................... 41,946 1,000 Murphy Oil Corp. ................. 49,870 ----------- 91,816 ----------- IT HARDWARE - 8.0% 380 Advanced Micro Devices, Inc. *.... 9,576 120 Amphenol Corp., Class A........... 4,841 500 Analog Devices, Inc. ............. 18,570 3,100 Applied Materials, Inc. .......... 52,576 300 Avocent Corp. *................... 9,492 500 Broadcom Corp., Class A *......... 23,455 12,600 Cisco Systems, Inc. *............. 225,918 2,400 Corning, Inc. *................... 46,392 740 Harris Corp. ..................... 30,932 12,500 Intel Corp. ...................... 308,125 500 International Rectifier Corp. *... 22,540 820 Intersil Corp., Class A........... 17,860 160 L-3 Communications Holdings, Inc. ........................... 12,651 1,460 LSI Logic Corp. *................. 14,381 500 Maxim Integrated Products, Inc. ........................... 21,325 1,090 MEMC Electronic Materials, Inc. *............................... 24,841 7,200 Motorola, Inc. ................... 159,048 1,000 NVIDIA Corp. *.................... 34,280 3,100 QUALCOMM, Inc. ................... 138,725 5,000 Texas Instruments, Inc. .......... 169,500 ----------- 1,345,028 ----------- LAND & WATER TRANSPORTATION - 1.1% 400 C.H. Robinson Worldwide, Inc. .... 25,648 520 CNF, Inc. ........................ 27,300 700 Landstar System, Inc. ............ 28,021 610 Norfolk Southern Corp. ........... 24,742 1,100 United Parcel Service, Inc., Class B............................... 76,043 ----------- 181,754 ----------- MAINFRAME & MINICOMPUTERS - 2.5% 3,200 Apple Computer, Inc. *............ 171,552 7,400 Dell, Inc. *...................... 253,080 ----------- 424,632 ----------- METAL PRODUCTS & MACHINERY - 4.8% 900 American Power Conversion Corp. .......................... 23,310 1,100 American Standard Cos., Inc. ..... 51,205 400 Black & Decker Corp. ............. 32,836 2,400 Caterpillar, Inc. ................ 141,000 1,700 Crown Holdings, Inc. *............ 27,098 220 Cummins, Inc. .................... 19,358 730 Dover Corp. ...................... 29,777 700 Emerson Electric Co. ............. 50,260 400 Energizer Holdings, Inc. *........ 22,680
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, METAL PRODUCTS & MACHINERY continued 400 Illinois Tool Works, Inc. ........ $ 32,932 500 ITT Industries, Inc. ............. 56,800 700 Joy Global, Inc. ................. 35,322 400 Parker Hannifin Corp. ............ 25,724 1,100 Rockwell Automation, Inc. ........ 58,190 430 Timken Co. ....................... 12,741 3,400 United Technologies Corp. ........ 176,255 ----------- 795,488 ----------- MISCELLANEOUS FINANCE - 2.2% 200 A.G. Edwards, Inc. ............... 8,762 400 Affiliated Managers Group, Inc. *............................... 28,968 240 Chicago Mercantile Exchange....... 80,952 900 Franklin Resources, Inc. ......... 75,564 400 IndyMac Bancorp, Inc. ............ 15,832 500 Legg Mason, Inc. ................. 54,845 500 Morgan Stanley.................... 26,970 600 Nuveen Investments, Class A....... 23,634 800 T. Rowe Price Group, Inc. ........ 52,240 ----------- 367,767 ----------- OIL & COAL RESOURCES - 3.7% 400 Anadarko Petroleum Corp. ......... 38,300 200 Apache Corp. ..................... 15,044 300 Arch Coal, Inc. .................. 20,250 300 Burlington Resources, Inc. ....... 24,396 900 Chesapeake Energy Corp. .......... 34,425 500 CONSOL Energy, Inc. .............. 38,135 500 Denbury Resources, Inc. *......... 25,220 1,100 EOG Resources, Inc. .............. 82,390 600 Massey Energy Co. ................ 30,642 700 Newfield Exploration Co. *........ 34,370 600 Noble Energy, Inc. ............... 28,140 510 Peabody Energy Corp. ............. 43,019 400 Pioneer Natural Resources Co. .... 21,968 800 Range Resources Corp. ............ 30,888 550 Southwestern Energy Co. *......... 40,370 500 Unit Corp. *...................... 27,640 1,900 XTO Energy, Inc. ................. 86,108 ----------- 621,305 ----------- OIL DISTRIBUTION - 0.7% 370 Questar Corp. .................... 32,604 700 Sunoco, Inc. ..................... 54,740 340 Tesoro Petroleum Corp. ........... 22,862 ----------- 110,206 ----------- OIL DRILLING & SERVICES - 3.0% 1,600 Baker Hughes, Inc. ............... 95,488 1,800 BJ Services Co. .................. 64,782 440 Diamond Offshore Drilling, Inc. ........................... 26,950 800 ENSCO International, Inc. ........ 37,272 800 Grant Prideco, Inc. *............. 32,520 1,800 Halliburton Co. .................. 123,336 400 Helmerich & Payne, Inc. .......... 24,156 40 National-Oilwell, Inc. *.......... 2,632
Laudus Trust Semi-Annual Report 31 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Growth Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, OIL DRILLING & SERVICES continued 1,000 Patterson-UTI Energy, Inc. ....... $ 36,080 700 Pride International, Inc. *....... 19,957 700 Rowan Cos., Inc. ................. 24,843 170 Tidewater, Inc. .................. 8,274 ----------- 496,290 ----------- PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 0.5% 141 Acco Brands Corp. *............... 3,979 4,182 EMC Corp. *....................... 54,115 1,690 Western Digital Corp. *........... 21,852 ----------- 79,946 ----------- PUBLISHING, BROADCASTING & CINEMA - 1.3% 400 American Greetings Corp., Class A............................... 10,960 1,800 McGraw-Hill Cos., Inc. ........... 86,472 300 Omnicom Group..................... 25,089 2,630 The Walt Disney Co. .............. 63,462 1,500 Time Warner, Inc. ................ 27,165 ----------- 213,148 ----------- REAL ESTATE DEVELOPMENT - 0.2% 600 CB Richard Ellis Group, Inc., Class A *....................... 29,520 ----------- REAL ESTATE INVESTMENT TRUSTS - 0.1% 200 SL Green Realty Corp. ............ 13,636 ----------- RESTAURANTS, HOTELS & THEATERS - 2.2% 400 Boyd Gaming Corp. ................ 17,248 800 Brinker International, Inc. *..... 30,048 300 CBRL Group, Inc. ................. 10,098 1,150 Cendant Corp. .................... 23,736 900 Darden Restaurants, Inc. ......... 27,333 400 McDonald's Corp. ................. 13,396 800 MGM Mirage *...................... 35,016 330 Penn National Gaming, Inc. *...... 10,266 600 Starbucks Corp. *................. 30,060 700 Starwood Hotels & Resorts Worldwide, Inc. ................ 40,019 400 Station Casinos, Inc. ............ 26,544 600 Wendy's International, Inc. ...... 27,090 1,500 YUM! Brands, Inc. ................ 72,615 ----------- 363,469 ----------- RETAIL - 9.4% 300 7-Eleven, Inc. *.................. 10,683 735 Advance Auto Parts, Inc. *........ 28,430 500 Amazon.com, Inc. *................ 22,650 100 Barnes & Noble, Inc. ............. 3,770 1,575 Best Buy Co., Inc. ............... 68,560 200 Borders Group, Inc. .............. 4,434 1,900 Caremark Rx, Inc. *............... 94,867 800 Chico's FAS, Inc. *............... 29,440 20 Circuit City Stores, Inc. ........ 343 4,000 CVS Corp. ........................ 116,040 1,890 eBay, Inc. *...................... 77,868 6,500 Home Depot, Inc. ................. 247,910 560 J.C. Penney Co., Inc. ............ 26,555
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, RETAIL continued 500 Kohl's Corp. *.................... $ 25,090 2,700 Lowe's Cos., Inc. ................ 173,880 1,180 Nordstrom, Inc. .................. 40,498 1,000 O'Reilly Automotive, Inc. *....... 28,180 1,300 Office Depot, Inc. *.............. 38,610 300 Sears Holding Corp. *............. 37,326 1,300 Staples, Inc. .................... 27,716 90 SUPERVALU, Inc. .................. 2,801 1,600 Target Corp. ..................... 83,088 600 The Men's Wearhouse, Inc. *....... 16,020 900 Urban Outfitters, Inc. *.......... 26,460 4,900 Wal-Mart Stores, Inc. ............ 214,718 2,500 Walgreen Co. ..................... 108,625 ----------- 1,554,562 ----------- SOAPS & COSMETICS - 3.1% 900 Avon Products, Inc. .............. 24,300 500 Church & Dwight Co., Inc. ........ 18,470 1,900 Colgate-Palmolive Co. ............ 100,301 6,200 Procter & Gamble Co. ............. 368,652 ----------- 511,723 ----------- SOFTWARE - 7.6% 1,400 Activision, Inc. *................ 28,630 700 Adobe Systems, Inc. .............. 20,895 1,300 Autodesk, Inc. ................... 60,372 1,100 Automatic Data Processing, Inc. ........................... 47,344 1,030 BMC Software, Inc. *.............. 21,733 400 CACI International, Inc., Class A *............................... 24,240 200 Cerner Corp. *.................... 17,386 800 Cognizant Technology Solutions Corp., Class A *................ 37,272 2,000 Compuware Corp. *................. 19,000 500 Electronic Arts, Inc. *........... 28,445 300 Fidelity National Financial, Inc. ........................... 13,356 1,400 First Data Corp. ................. 56,000 200 Hyperion Solutions Corp. *........ 9,730 2,700 International Business Machines Corp. .......................... 216,594 1,000 McAfee, Inc. *.................... 31,420 19,600 Microsoft Corp. .................. 504,308 6,700 Oracle Corp. *.................... 83,013 1,400 Symantec Corp. *.................. 31,724 2,380 WebMD Corp. *..................... 26,370 ----------- 1,277,832 ----------- TEXTILES & APPAREL - 0.9% 2,100 Coach, Inc. *..................... 65,856 300 Mohawk Industries, Inc. *......... 24,075 300 NIKE, Inc., Class B............... 24,504 320 Polo Ralph Lauren Corp. .......... 16,096 1,300 Quiksilver, Inc. *................ 18,785 ----------- 149,316 ----------- WHOLESALE - 1.3% 100 Airgas, Inc. ..................... 2,963 200 Arrow Electronics, Inc. *......... 6,272
32 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Growth Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, WHOLESALE continued 600 Avnet, Inc. *..................... $ 14,670 410 Cardinal Health, Inc. ............ 26,010 600 Express Scripts, Inc. *........... 37,320 700 McKesson Corp. ................... 33,215 400 Omnicare, Inc. ................... 22,492 600 SCP Pool Corp. ................... 20,958 1,000 Sysco Corp. ...................... 31,370 300 W.W. Grainger, Inc. .............. 18,876 ----------- 214,146 ----------- TOTAL COMMON STOCK (COST $15,352,204).................... 16,675,276 -----------
PRINCIPAL VALUE ----------------------------------------------------------- REPURCHASE AGREEMENT - 0.9% $148,627 Bear Stearns dated 9/30/05, due 10/3/05 at 3.25% with a maturity value of $148,667 (fully collateralized by U.S. Treasury Bonds).......................... $ 148,627 ----------- TOTAL REPURCHASE AGREEMENT (COST $148,627)....................... 148,627 ----------- TOTAL INVESTMENTS (COST $15,500,831) (A) - 100.6%....... 16,823,903 NET OTHER ASSETS (LIABILITIES) - (0.6)%.......... (92,952) ----------- NET ASSETS - 100.0%............... $16,730,951 ===========
--------------- * Non-income producing security. (a) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.................... $1,768,042 Unrealized depreciation.................... (444,970) ---------- Net unrealized appreciation................ $1,323,072 ==========
Laudus Trust Semi-Annual Report 33 See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION VALUE FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 99.6% AGRICULTURE, FOOD & BEVERAGE - 0.8% 520 Dean Foods Co. *.................. $ 20,207 300 Pepsi Bottling Group, Inc. ....... 8,565 300 PepsiAmericas, Inc. .............. 6,819 200 Pilgrim's Pride Corp. ............ 7,280 200 Tyson Foods, Inc., Class A........ 3,610 ---------- 46,481 ---------- AUTOS - (0.0%): 10 TRW Automotive Holdings Corp. *... 293 ---------- BANKS & CREDIT INSTITUTIONS - 9.3% 5,800 Bank of America Corp. ............ 244,180 1,600 Countrywide Financial Corp. ...... 52,768 1,600 National City Corp. .............. 53,504 400 TD Banknorth, Inc. ............... 12,056 1,200 U.S. Bancorp...................... 33,696 2,000 Wachovia Corp. ................... 95,180 1,000 Wells Fargo & Co. ................ 58,570 200 Westcorp.......................... 11,780 ---------- 561,734 ---------- BASIC MINERALS & METALS - 1.3% 300 Nucor Corp. ...................... 17,697 300 Phelps Dodge Corp. ............... 38,979 500 United States Steel Corp. ........ 21,175 ---------- 77,851 ---------- BEER, LIQUOR & TOBACCO - 1.9% 800 Altria Group, Inc. ............... 58,968 300 Loews Corp. - Carolina Group...... 11,889 500 Reynolds American, Inc. .......... 41,510 ---------- 112,367 ---------- BIOTECHNOLOGY - 0.3% 200 Invitrogen Corp. *................ 15,046 ---------- CELLULAR & WIRELESS - 2.7% 1,300 BellSouth Corp. .................. 34,190 2,300 SBC Communications, Inc. ......... 55,131 3,100 Sprint Corp. ..................... 73,718 ---------- 163,039 ---------- CHEMICALS & RUBBER - 0.4% 100 Eastman Chemical Co. ............. 4,697 630 Lyondell Chemical Co. ............ 18,031 ---------- 22,728 ---------- COMMUNICATIONS UTILITIES - 1.3% 500 CenturyTel, Inc. ................. 17,490 1,800 Verizon Communications, Inc. ..... 58,842 ---------- 76,332 ---------- CONSTRUCTION & HOMEBUILDING - 3.3% 200 Beazer Homes USA, Inc. ........... 11,734 300 Centex Corp. ..................... 19,374 500 D.R. Horton, Inc. ................ 18,110
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, CONSTRUCTION & HOMEBUILDING continued 200 Hovnanian Enterprises, Inc., Class A *............................. $ 10,240 300 KB HOME........................... 21,960 300 Lennar Corp., Class A............. 17,928 200 M.D.C. Holdings, Inc. ............ 15,778 200 Meritage Corp. *.................. 15,332 800 Pulte Homes, Inc. ................ 34,336 200 Ryland Group, Inc. ............... 13,684 400 Toll Brothers, Inc. *............. 17,868 ---------- 196,344 ---------- CONSTRUCTION MATERIALS - 0.3% 110 Lafarge North America, Inc. ...... 7,437 430 Owens-Illinois, Inc. *............ 8,867 ---------- 16,304 ---------- CONSUMER DURABLES - 0.4% 290 Whirlpool Corp. .................. 21,973 ---------- DRUGS & PHARMACEUTICALS - 3.1% 2,100 Merck & Co., Inc. ................ 57,141 5,100 Pfizer, Inc. ..................... 127,347 ---------- 184,488 ---------- ELECTRIC UTILITIES - 4.1% 190 Alliant Energy Corp. ............. 5,535 1,100 American Electric Power Co., Inc. ........................... 43,670 10 Edison International.............. 473 530 Energy East Corp. ................ 13,351 630 Entergy Corp. .................... 46,822 1,000 FPL Group, Inc. .................. 47,599 600 Pepco Holdings, Inc. ............. 13,962 1,100 PG&E Corp. ....................... 43,175 600 Sempra Energy..................... 28,236 ---------- 242,823 ---------- FINANCIAL INVESTMENTS - 1.8% 264 American Capital Strategies Ltd. ........................... 9,678 800 CIT Group, Inc. .................. 36,144 1,790 General Electric Co. ............. 60,270 200 Rent-A-Center, Inc. *............. 3,862 ---------- 109,954 ---------- FOREST PRODUCTS & PAPER - 0.7% 900 Georgia-Pacific Corp. ............ 30,654 500 Louisiana-Pacific Corp. .......... 13,845 ---------- 44,499 ---------- GAS & OTHER PUBLIC UTILITIES - 1.0% 800 NiSource, Inc. ................... 19,400 1,600 Williams Cos., Inc. .............. 40,080 ---------- 59,480 ---------- GOVERNMENT AIRCRAFT & DEFENSE - 0.8% 900 Northrop Grumman Corp. ........... 48,915 ----------
34 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements-Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Value Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued HEALTH CARE & HOSPITAL - 2.4% 600 Aetna, Inc. ...................... $ 51,684 700 HCA, Inc. ........................ 33,544 400 Health Net, Inc. *................ 18,928 500 Humana, Inc. *.................... 23,940 300 Triad Hospitals, Inc. *........... 13,581 ---------- 141,677 ---------- INFORMATION & SERVICES - 1.3% 300 Deluxe Corp. ..................... 12,048 1,000 Prudential Financial, Inc. ....... 67,560 ---------- 79,608 ---------- INSTRUMENTS - 1.1% 200 Bausch & Lomb, Inc. .............. 16,136 600 Johnson Controls, Inc. ........... 37,230 200 Teleflex, Inc. ................... 14,100 ---------- 67,466 ---------- INSURANCE - 9.6% 300 Allmerica Financial Corp. *....... 12,342 1,400 Allstate Corp. ................... 77,406 200 American Financial Group, Inc. ... 6,786 200 American National Insurance Co. ............................ 23,824 300 AmerUs Group Co. ................. 17,211 400 CIGNA Corp. ...................... 47,144 300 CNA Financial Corp. *............. 8,961 200 Commerce Group, Inc. ............. 11,604 800 Hartford Financial Services Group, Inc. ........................... 61,736 500 Loews Corp. ...................... 46,205 1,180 MetLife, Inc. .................... 58,799 300 Nationwide Financial Services, Inc., Class A................... 12,015 630 Old Republic International Corp. .......................... 16,802 300 PacifiCare Health Systems, Inc. *............................... 23,934 320 Radian Group, Inc. ............... 16,992 1,800 St. Paul Cos., Inc. .............. 80,766 200 StanCorp Financial Group, Inc. ... 16,840 1,100 UnumProvident Corp. .............. 22,550 400 W. R. Berkley Corp. .............. 15,792 ---------- 577,709 ---------- INTEGRATED OIL COS. - 12.7% 300 Amerada Hess Corp. ............... 41,250 3,400 ChevronTexaco Corp. .............. 220,082 2,000 ConocoPhillips.................... 139,820 4,300 Exxon Mobil Corp. ................ 273,221 100 Marathon Oil Corp. ............... 6,893 1,000 Occidental Petroleum Corp. ....... 85,430 ---------- 766,696 ---------- IT HARDWARE - 0.4% 700 Advanced Micro Devices, Inc. *.... 17,639 210 LSI Logic Corp. *................. 2,069 85 Motorola, Inc. ................... 1,878 ---------- 21,586 ----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued LAND & WATER TRANSPORTATION - 1.5% 1,000 Burlington Northern Santa Fe Corp. .......................... $ 59,800 200 Overseas Shipholding Group, Inc. ........................... 11,666 200 Ryder Systems, Inc. .............. 6,844 300 Yellow Roadway Corp. *............ 12,426 ---------- 90,736 ---------- MAINFRAME & MINICOMPUTERS - 2.0% 2,200 Apple Computer, Inc. *............ 117,942 ---------- METAL PRODUCTS & MACHINERY - 1.6% 600 Caterpillar, Inc. ................ 35,250 188 Cummins, Inc. .................... 16,542 700 Deere & Co. ...................... 42,840 ---------- 94,632 ---------- MISCELLANEOUS FINANCE - 9.1% 6,690 Citigroup, Inc. .................. 304,528 200 IndyMac Bancorp, Inc. ............ 7,916 2,360 JPMorgan Chase & Co. ............. 80,075 270 Lehman Brothers Holdings, Inc. ... 31,450 1,400 Merrill Lynch & Co., Inc. ........ 85,890 600 Morgan Stanley.................... 32,364 ---------- 542,223 ---------- OIL & COAL RESOURCES - 7.0% 700 Anadarko Petroleum Corp. ......... 67,025 1,000 Apache Corp. ..................... 75,220 900 Burlington Resources, Inc. ....... 73,188 1,000 Chesapeake Energy Corp. .......... 38,250 1,200 Devon Energy Corp. ............... 82,368 100 Forest Oil Corp. *................ 5,210 400 Kerr-McGee Corp. ................. 38,844 400 Newfield Exploration Co. *........ 19,640 300 Pogo Producing Co. ............... 17,682 ---------- 417,427 ---------- OIL DISTRIBUTION - 2.0% 200 Sunoco, Inc. ..................... 15,640 170 Tesoro Petroleum Corp. ........... 11,431 800 Valero Energy Corp. .............. 90,448 ---------- 117,519 ---------- OIL DRILLING & SERVICES - 0.7% 200 Diamond Offshore Drilling, Inc. ........................... 12,250 300 Patterson-UTI Energy, Inc. ....... 10,824 300 Pride International, Inc. *....... 8,553 300 Rowan Cos., Inc. ................. 10,647 ---------- 42,274 ---------- PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 2.0% 4,000 Hewlett-Packard Co. .............. 116,800 ---------- PUBLISHING, BROADCASTING & CINEMA - 1.8% 6,100 Time Warner, Inc. ................ 110,471 ----------
Laudus Trust Semi-Annual Report 35 See the accompanying notes to the financial statements. Financial Statements-Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large Capitalization Value Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued 3/8x REAL ESTATE INVESTMENT TRUSTS - 0.8% 600 Friedman, Billings, Ramsey Group, Inc., Class A................... $ 6,114 800 HRPT Properties Trust............. 9,928 50 SL Green Realty Corp. ............ 3,409 30 Trizec Properties, Inc. .......... 692 300 Vornado Realty Trust.............. 25,986 ---------- 46,129 ---------- RESTAURANTS, HOTELS & THEATERS - 1.8% 200 Brinker International, Inc. *..... 7,512 104 CBRL Group, Inc. ................. 3,501 2,510 Cendant Corp. .................... 51,806 400 Darden Restaurants, Inc. ......... 12,148 400 MGM Mirage *...................... 17,508 330 Wendy's International, Inc. ...... 14,900 ---------- 107,375 ---------- RETAIL - 4.7% 700 AutoNation, Inc. *................ 13,979 300 Barnes & Noble, Inc. ............. 11,310 300 Borders Group, Inc. .............. 6,651 1,800 CVS Corp. ........................ 52,218 800 Federated Department Stores, Inc. ........................... 53,496 800 J.C. Penney Company, Inc. ........ 37,936 1,000 Limited Brands, Inc. ............. 20,430 1,100 Rite Aid Corp. *.................. 4,268 1,300 Safeway, Inc. .................... 33,280 300 Sears Holding Corp. *............. 37,326 250 SUPERVALU, Inc. .................. 7,780 ---------- 278,674 ---------- SOFTWARE - 2.3% 470 BMC Software, Inc. *.............. 9,917 600 Computer Sciences Corp. *......... 28,386 1,200 Electronic Data Systems Corp. .... 26,928 530 Fidelity National Financial, Inc. ........................... 23,596
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, SOFTWARE continued 400 First American Corp. ............. $ 18,268 300 International Business Machines Corp. .......................... 24,066 400 Sybase, Inc. *.................... 9,368 ---------- 140,529 ---------- TEXTILES & APPAREL - 0.4% 140 Liz Claiborne, Inc. .............. 5,505 300 VF Corp. ......................... 17,391 ---------- 22,896 ---------- WHOLESALE - 0.9% 370 Arrow Electronics, Inc. *......... 11,603 700 McKesson Corp. ................... 33,215 200 Omnicare, Inc. ................... 11,246 ---------- 56,064 ---------- TOTAL COMMON STOCK (COST $5,418,127)..................... 5,957,084 ---------- TOTAL INVESTMENTS (COST $5,418,127) (A) - 99.6%......... 5,957,084 NET OTHER ASSETS (LIABILITIES) - 0.4%............ 24,115 ---------- NET ASSETS - 100.0%............... $5,981,199 ==========
--------------- * Non-income producing security. (a) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation..................... $ 660,597 Unrealized depreciation..................... (121,640) --------- Net unrealized appreciation................. $ 538,957 =========
36 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG U.S. DISCOVERY FUND as of 9/30/05 (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK - 99.3% AGRICULTURE, FOOD & BEVERAGE - 1.6% 9,095 Andersons, Inc. .............. $ 266,302 5,920 Cagle's, Inc., Class A *...... 61,509 55,190 Chiquita Brands International, Inc. (a).................... 1,542,561 44,325 Flowers Foods, Inc. .......... 1,209,186 122,900 Gold Kist, Inc. * (a)......... 2,402,695 133 J & J Snack Foods Corp. ...... 7,687 28,000 Lance, Inc. .................. 488,880 8,200 National Beverage Corp. *..... 63,632 16,600 Penford Corp. ................ 221,942 58,710 PepsiAmericas, Inc. .......... 1,334,478 33,376 Pilgrim's Pride Corp. (a)..... 1,214,886 13,060 Ralcorp Holdings, Inc. ....... 547,475 252 Seaboard Corp. (a)............ 345,996 1,000 Seneca Foods Corp., Class B *........................... 18,500 14,430 Tasty Baking Co. ............. 125,252 7,899 Zapata Corp. *................ 56,478 ------------ 9,907,459 ------------ AIRLINES - 0.4% 1,727 Air Methods Corp. *........... 19,550 19,300 AirNet Systems, Inc. * (a).... 91,675 28,300 Alaska Air Group, Inc. * (a)......................... 822,398 42,980 Macquarie Infrastructure Company Trust............... 1,212,035 15,938 MAIR Holdings, Inc. * (a)..... 92,919 850 Mesa Air Group, Inc. * (a).... 7,013 9,050 Offshore Logistics, Inc. *.... 334,850 12,352 Republic Airways Holdings, Inc. *...................... 176,757 ------------ 2,757,197 ------------ AUTOS - 1.5% 16,120 Aftermarket Technology Corp. * (a)......................... 296,447 21,520 Autoliv, Inc. ................ 936,120 8,654 BorgWarner, Inc. (a).......... 488,605 574 Commercial Vehicle Group, Inc. * (a)....................... 12,020 11,170 Modine Manufacturing Co. (a)......................... 409,716 103,267 Oshkosh Truck Corp. (a)....... 4,457,003 8,600 Sequa Corp., Class A *........ 507,400 10 Spartan Motors, Inc. ......... 109 11,320 Supreme Industries, Inc., Class A..................... 106,295 8,116 Sypris Solutions, Inc. (a).... 87,166 69,859 TRW Automotive Holdings Corp. * (a)....................... 2,049,662 ------------ 9,350,543 ------------ BANKS & CREDIT INSTITUTIONS - 4.6% 300 1st Constitution Bancorp *.... 5,778 1,099 ABC Bancorp (a)............... 21,090 36,390 Accredited Home Lenders Holding Co. * (a)........... 1,279,471 11,700 Advanta Corp., Class A........ 304,902
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 2,500 Ameriana Bancorp.............. $ 35,000 22 American Community Bancshares, Inc. ....................... 378 11,372 AmericanWest Bancorp *........ 262,921 1,100 Anchor BanCorp Wisconsin, Inc. (a)......................... 32,428 1,300 Auburn National Bancorporation, Inc. ....... 30,550 2,100 BancFirst Corp. .............. 178,500 92,760 Bank of Hawaii Corp. (a)...... 4,565,646 4,825 Banner Corp. ................. 128,538 717 Bar Harbor Bankshares......... 19,316 960 Berkshire Bancorp, Inc. ...... 17,242 22,695 Beverly Hills Bancorp, Inc. ....................... 232,851 1,600 BNCCORP, Inc. *............... 21,200 526 Britton & Koontz Capital Corp. ...................... 10,736 5,500 Brunswick Bancorp *........... 66,770 700 BWC Financial Corp. .......... 19,839 10 Camco Financial Corp. ........ 142 6,700 Camden National Corp. ........ 252,389 3,500 Capital Crossing Bank * (a)... 121,590 6,900 Capitol Bancorp Ltd. (a)...... 223,560 1,200 Carver Bancorp, Inc. ......... 19,908 450 CCF Holding Co. .............. 8,305 1,000 Central Bancorp, Inc. ........ 28,035 3,390 Centrue Financial Corp. *..... 88,706 3,330 CFS Bancorp, Inc. ............ 44,622 4,700 Citizens First Bancorp, Inc. ....................... 100,298 700 Citizens Holding Co. ......... 15,050 130 Codorus Valley Bancorp, Inc. ....................... 2,366 15,400 Collegiate Funding Services *........................... 228,074 4,274 Community Bank Shares of Indiana, Inc. .............. 105,269 2,289 Community Capital Corp. ...... 54,936 860 Community Financial Corp. .... 18,219 1,030 Community Shores Bank Corp. *........................... 16,171 4,374 Community West Bancshares..... 54,238 36,892 CompuCredit Corp. * (a)....... 1,638,742 700 Cooperative Bankshares, Inc. (a)......................... 13,489 23,560 Corus Bankshares, Inc. (a).... 1,291,794 1,600 Cowlitz Bancorp *............. 21,424 600 Desert Community Bank......... 19,500 1,307 Dollar Financial Corp. *...... 15,671 2,200 EFC Bancorp, Inc. ............ 73,260 1,090 Elmira Savings Bank, FSB...... 29,430 896 Evans Bancorp, Inc. .......... 19,667 7,610 Federal Agricultural Mortgage Corp., Class C (a).......... 185,227 650 Fidelity Bancorp, Inc. ....... 12,480 2,725 Fidelity Southern Corp. ...... 47,415 800 First Bancorp of Indiana, Inc. ....................... 18,000 700 First Bancshares, Inc. ....... 12,026 4,540 First BancTrust Corp. ........ 58,566 800 First Capital, Inc. .......... 14,000 2,200 First Citizens BancShares, Inc., Class A............... 375,430
Laudus Trust Semi-Annual Report 37 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 3,970 First Defiance Financial Corp. ...................... $ 108,897 7,300 First Federal Bancshares of Arkansas, Inc. ............. 172,207 2,693 First Federal Bancshares, Inc. ....................... 55,584 2,400 First Federal Bankshares, Inc. ....................... 46,680 10 First Financial Service Corp. ...................... 296 600 First Franklin Corp. ......... 10,020 400 First Indiana Corp. .......... 13,628 300 First Keystone Financial, Inc. ....................... 6,600 3,100 First M&F Corp. (a)........... 109,275 300 First Mariner Bancorp *....... 5,061 300 First Merchants Corp. (a)..... 7,749 216 First Niles Financial, Inc. ....................... 3,078 16,170 First Place Financial Corp. ...................... 358,489 4,937 First Regional Bancorp *...... 388,986 1,000 First United Corp. ........... 19,900 3,300 First West Virginia Bancorp, Inc. ....................... 60,390 4,020 FirstBank NW Corp. ........... 111,555 190 FirstFed Bancorp, Inc. ....... 2,071 36,960 FirstFed Financial Corp. * (a)......................... 1,988,817 5,320 Flag Financial Corp. (a)...... 85,618 1,377 FMS Financial Corp. .......... 24,098 100 FNB Corp. (a)................. 2,768 1,467 FNB Corp. .................... 27,668 625 FNB Financial Services Corp. ...................... 11,019 550 Fremont General Corp. (a)..... 12,007 400 Glen Burnie Bancorp........... 8,008 100 Greene County Bancshares, Inc. ....................... 2,588 600 GS Financial Corp. ........... 9,510 2,370 Guaranty Federal Bancshares, Inc. ....................... 64,368 5,150 HF Financial Corp. ........... 97,232 1,700 HMN Financial, Inc. (a)....... 53,873 1,618 Home Federal Bancorp.......... 40,879 675 Hopfed Bancorp, Inc. ......... 10,652 2,000 Horizon Bancorp............... 53,150 9,666 Independence Community Bank Corp. (a)................... 329,514 4,200 Independent Bank Corp. (a).... 121,968 12,732 Integra Bank Corp. ........... 276,284 12,579 Intervest Bancshares Corp. *........................... 276,109 3,147 ITLA Capital Corp. *.......... 165,186 2,351 Leesport Financial Corp. ..... 53,485 17,000 LSB Bancshares, Inc. ......... 295,800 315 LSB Financial Corp. .......... 8,921 3,154 MAF Bancorp, Inc. ............ 129,314 1,010 Meta Financial Group, Inc. ... 19,948 2,000 MFB Corp. .................... 50,500 2,301 MidWestOne Financial Group, Inc. ....................... 43,431 103 Monroe Bancorp................ 1,743 3,022 National Mercantile Bancorp *........................... 46,994 1,000 New Hampshire Thrift Bancshares, Inc. ........... 14,090 200 North Central Bancshares, Inc. ....................... 7,540 1,200 Northeast Bancorp............. 26,244
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 1,630 Northrim BanCorp, Inc. ....... $ 40,815 1,400 Northway Financial, Inc. ..... 47,761 4,643 OceanFirst Financial Corp. ... 112,082 2,100 PAB Bankshares, Inc. (a)...... 32,781 905 Park Bancorp, Inc. ........... 27,784 653 Parkvale Financial Corp. ..... 17,794 4,533 Peoples Bancorp of North Carolina.................... 96,213 1,790 Peoples BancTrust Co., Inc. ....................... 31,012 500 Peoples Financial Corp. ...... 8,875 4,310 PFF Bancorp, Inc. ............ 130,421 1,010 Pinnacle Bancshares, Inc. .... 13,761 1,800 Pocahontas Bancorp, Inc. ..... 22,509 997 Premier Community Bankshares, Inc. ....................... 20,304 2,740 Princeton National Bancorp, Inc. ....................... 93,160 32,700 Provident Bankshares Corp. (a)......................... 1,137,305 12,000 Provident Financial Holdings, Inc. ....................... 336,600 3,365 Renasant Corp. ............... 106,502 10 Republic Bancorp, Inc., Class A........................... 209 9,683 Republic First Bancorp, Inc. *........................... 119,682 600 River Valley Bancorp.......... 12,597 105 Riverview Bancorp, Inc. ...... 2,216 7,274 Shore Bancshares, Inc. ....... 234,223 100 Simmons First National Corp., Class A..................... 2,852 100 South Street Financial Corp. (a)......................... 967 200 Southern Missouri Bancorp, Inc. ....................... 2,913 1,459 Sterling Financial Corp. (a)......................... 32,900 36,260 SVB Financial Group * (a)..... 1,763,685 25,340 TD Banknorth, Inc. (a)........ 763,748 1,050 Team Financial, Inc. ......... 15,908 1,000 Teche Holding Co. ............ 38,870 3,477 Timberland Bancorp, Inc. ..... 80,667 3,367 UMB Financial Corp. (a)....... 221,145 800 Union Bankshares Corp. ....... 33,424 600 Union Community Bancorp....... 15,270 51 UnionBancorp, Inc. ........... 1,066 1,140 United Bancshares, Inc. ...... 18,297 17,042 United Community Financial Corp. (a)................... 191,211 1,184 United Financial Corp. ....... 29,600 872 United Security Bancshares, Inc. (a).................... 23,928 7,176 Unity Bancorp, Inc. .......... 93,432 2,556 Wainwright Bank & Trust Co. ........................ 26,608 65,490 Walter Industries, Inc. (a)... 3,203,770 3,814 Washington Banking Co. ....... 70,178 9,270 Washington Savings Bank, F.S.B....................... 84,450 16,792 Westcorp (a).................. 989,048 945 WFS Financial, Inc. *......... 63,495 5,030 World Acceptance Corp. *...... 127,812 2,202 WSFS Financial Corp. ......... 129,676 1,900 WVS Financial Corp. .......... 30,970
38 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 400 Yardville National Bancorp (a)......................... $ 14,100 ------------ 29,015,543 ------------ BASIC MINERALS & METALS - 2.6% 8,760 A. M. Castle & Co. *.......... 153,300 24,620 Aleris International, Inc. * (a)......................... 675,819 194,000 Allegheny Technologies, Inc. (a)......................... 6,010,120 32,690 Commercial Metals Co. ........ 1,102,961 1,000 Harsco Corp. ................. 65,570 63,300 Lone Star Technologies, Inc. * (a)......................... 3,518,847 3,101 Northwest Pipe Co. *.......... 80,285 48,300 NS Group, Inc. *.............. 1,895,775 7,584 Olin Corp. (a)................ 144,020 23,170 Quanex Corp. (a).............. 1,534,317 21,767 Roanoke Electric Steel Corp. (a)......................... 435,993 36,562 Ryerson Tull, Inc. (a)........ 778,771 13,188 Superior Essex, Inc. *........ 237,516 ------------ 16,633,294 ------------ BIOTECHNOLOGY - 1.0% 11,959 Harvard Bioscience, Inc. *.... 36,475 80,237 Invitrogen Corp. * (a)........ 6,036,229 ------------ 6,072,704 ------------ CELLULAR & WIRELESS - 1.0% 280 Nextel Partners, Inc., Class A * (a)....................... 7,028 32,503 NII Holdings, Inc. * (a)...... 2,744,878 49,160 Telephone & Data Systems, Inc. ....................... 1,917,240 17,610 Telephone & Data Systems, Inc., Special Shares........ 661,256 17,500 U.S. Cellular Corp. * (a)..... 934,850 8,850 USA Mobility, Inc. * (a)...... 238,773 ------------ 6,504,025 ------------ CHEMICALS & RUBBER - 1.8% 16,400 A. Schulman, Inc. ............ 294,380 3,301 American Pacific Corp. *...... 19,529 21,260 Arch Chemicals, Inc. ......... 494,295 1,200 Bairnco Corp. ................ 12,828 16,170 Bandag, Inc. (a).............. 693,046 402 Chemtura Corp. ............... 4,993 58,406 Eastman Chemical Co. (a)...... 2,743,330 3,100 FMC Corp. *................... 177,382 238,869 Hercules, Inc. *.............. 2,918,978 99,500 Hexcel Corp. * (a)............ 1,819,855 2,602 LESCO, Inc. *................. 41,242 18,660 RPM International, Inc. (a)... 343,344 5,200 Scotts Miracle-Gro Co., Class A (a)....................... 457,236 7,600 Stepan Co. ................... 190,456 147,670 Terra Industries, Inc. * (a)......................... 982,006 17,640 Westlake Chemical Corp. ...... 477,691 ------------ 11,670,591 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK continued COMMERCIAL AIRCRAFT & COMPONENTS - 0.1% 30,042 BE Aerospace, Inc. * (a)...... $ 497,796 3,970 Ladish Co., Inc. * (a)........ 69,237 1,590 Triumph Group, Inc. *......... 59,100 ------------ 626,133 ------------ COMMUNICATIONS UTILITIES - 0.4% 1,700 Atlantic Tele-Network, Inc. ....................... 56,440 1,040 CNET Networks, Inc. * (a)..... 14,113 33,156 CT Communications, Inc. ...... 410,140 1,610 D&E Communications, Inc. ..... 14,603 184,540 EarthLink, Inc. * (a)......... 1,974,578 4,800 Hector Communications Corp. (a)......................... 139,632 310 Valor Communications Group, Inc. (a).................... 4,225 ------------ 2,613,731 ------------ CONSTRUCTION & HOMEBUILDING - 3.5% 88,500 Beazer Homes USA, Inc. (a).... 5,192,295 8,200 Brookfield Homes Corp. ....... 455,346 402 Cavco Industries, Inc. *...... 14,585 1,520 Comfort Systems USA, Inc. *... 13,391 29,200 Granite Construction, Inc. ... 1,116,608 53,270 Hovnanian Enterprises, Inc., Class A * (a)............... 2,727,424 66,898 M.D.C. Holdings, Inc. ........ 5,277,582 8,170 M/I Homes, Inc. (a)........... 443,304 751 Meadow Valley Corp. *......... 7,150 34,080 Meritage Corp. * (a).......... 2,612,573 3,540 Orleans Homebuilders, Inc. (a)......................... 87,226 32,800 Ryland Group, Inc. (a)........ 2,244,176 5,200 Sterling Construction Co., Inc. * (a).................. 134,680 13,025 Technical Olympic USA, Inc. (a)......................... 340,734 21,870 WCI Communities, Inc. * (a)... 620,452 5,400 William Lyon Homes, Inc. * (a)......................... 838,080 ------------ 22,125,606 ------------ CONSTRUCTION MATERIALS - 1.8% 3,700 Ameron International Corp. (a)......................... 171,680 900 Apogee Enterprises, Inc. (a)......................... 15,390 19,170 Compass Minerals International, Inc. ........ 440,910 38,790 Eagle Materials, Inc. (a)..... 4,707,942 10,275 Florida Rock Industries, Inc. (a)......................... 658,525 17,620 Jarden Corp. * (a)............ 723,653 4,700 Martin Marietta Materials, Inc. (a).................... 368,762 19,000 MDU Resources Group, Inc. (a)......................... 677,350 6,300 Oil-Dri Corp. of America...... 110,061 157,238 Owens-Illinois, Inc. * (a).... 3,242,248 5,430 United States Lime & Minerals, Inc. *...................... 185,435 ------------ 11,301,956 ------------
Laudus Trust Semi-Annual Report 39 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK continued CONSUMER DURABLES - 0.4% 4,820 Brunswick Corp. (a)........... $ 181,859 14,710 Coachmen Industries, Inc. (a)......................... 169,018 55,800 Thor Industries, Inc. (a)..... 1,897,199 18,316 Universal Electronics, Inc. *........................... 316,684 ------------ 2,564,760 ------------ DRUGS & PHARMACEUTICALS - 1.0% 7,510 Dade Behring Holdings, Inc. ....................... 275,317 9,500 E-Z-EM, Inc. *................ 134,425 118,931 Endo Pharmaceuticals Holdings, Inc. * (a).................. 3,171,889 16,925 First Horizon Pharmaceutical Corp. * (a)................. 336,300 8,556 Immucor, Inc. *............... 234,777 1,740 Inverness Medical Innovations, Inc. *...................... 46,162 150 Lifecore Biomedical, Inc. *... 1,814 7,600 Natural Alternative International, Inc. *....... 52,744 23,100 Nature's Sunshine Products, Inc. ....................... 536,844 20,060 United Therapeutics Corp. *... 1,400,188 6,309 USANA Health Sciences, Inc. * (a)......................... 300,939 18,100 Weider Nutrition International, Inc. *....... 95,749 ------------ 6,587,148 ------------ ELECTRIC UTILITIES - 2.2% 68,880 Alliant Energy Corp. ......... 2,006,474 46,400 Avista Corp. ................. 900,160 2,281 CH Energy Group, Inc. (a)..... 108,302 72,100 Cleco Corp. .................. 1,700,118 117,540 Duquesne Light Holdings, Inc. (a)......................... 2,022,863 31,100 Energy East Corp. ............ 783,409 8,000 Florida Public Utilities Co. ........................ 127,040 5,700 Green Mountain Power Corp. ... 187,701 8,832 Pinnacle West Capital Corp. ...................... 389,315 4,482 PNM Resources, Inc. (a)....... 128,499 12,200 UIL Holdings Corp. ........... 638,182 20 Unitil Corp. ................. 562 188,690 Westar Energy, Inc. .......... 4,553,090 9,300 Wisconsin Energy Corp. (a).... 371,256 4,600 WPS Resources Corp. (a)....... 265,880 ------------ 14,182,851 ------------ FINANCIAL INVESTMENTS - 0.9% 2,775 Aaron Rents, Inc. (a)......... 58,691 3,140 Aaron Rents, Inc., Class A.... 61,858 63,703 American Capital Strategies Ltd. ....................... 2,335,352 1,540 California First National Bancorp..................... 20,020 300 Capital Southwest Corp. ...... 25,551 32,236 Electro Rent Corp. *.......... 405,529 9,480 ePlus, Inc. *................. 123,714
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, FINANCIAL INVESTMENTS continued 10,880 Jackson Hewitt Tax Service, Inc. (a).................... $ 260,141 84,741 MCG Capital Corp. ............ 1,429,581 783 McGrath Rentcorp (a).......... 22,182 22,010 Price Communications Corp. *........................... 362,065 15,790 Universal Compression Holdings, Inc. * (a)........ 627,968 8,060 Willis Lease Finance Corp. *........................... 80,519 ------------ 5,813,171 ------------ FOREST PRODUCTS & PAPER - 0.3% 14,149 Chesapeake Corp. ............. 260,200 11,480 CSS Industries, Inc. ......... 373,330 1,850 DSG International Ltd. *...... 11,322 9,700 Greif, Inc., Class A (a)...... 582,970 17,070 Lydall, Inc. *................ 152,435 4,940 Mod-Pac Corp. *............... 53,698 3,500 Nashua Corp. *................ 21,700 4,370 Packaging Dynamics Corp. ..... 55,062 5,800 Universal Forest Products, Inc. ....................... 332,456 ------------ 1,843,173 ------------ FURNITURE & HOUSEHOLD ITEMS - 1.5% 11,700 A.T. Cross Co., Class A *..... 56,043 10,790 Aldila, Inc. ................. 261,658 1,100 American Biltrite, Inc. *..... 13,585 760 American Locker Group, Inc. *........................... 3,526 12,640 Atlantis Plastics, Inc., Class A (a)....................... 126,274 6,430 AZZ, Inc. *................... 132,137 14,300 Bassett Furniture Industries, Inc. ....................... 266,266 30,851 Central Garden & Pet Co. * (a)......................... 1,396,008 5,350 Channell Commercial Corp. *... 50,560 1,300 Chase Corp. .................. 18,967 1,250 Chromcraft Revington, Inc. *........................... 16,975 9,840 Communications Systems, Inc. (a)......................... 110,700 4,460 Ethan Allen Interiors, Inc. ....................... 139,821 2,120 Flexsteel Industries, Inc. ... 31,842 1,794 Genlyte Group, Inc. *......... 86,256 10,800 Griffon Corp. *............... 265,680 34,790 HNI Corp. .................... 2,095,055 31,267 JAKKS Pacific, Inc. * (a)..... 507,463 1,492 K2, Inc. *.................... 17,009 5,400 Kimball International, Inc., Class B..................... 65,286 4,001 Knape & Vogt Manufacturing Co. ........................ 52,413 25,960 La-Z-Boy, Inc. (a)............ 342,412 18,000 Lamson & Sessions Co. * (a)... 329,760 11,900 LSI Industries, Inc. ......... 226,100 36,798 Mikohn Gaming *............... 489,045 205 Mity Enterprises, Inc. *...... 3,501 8,090 Movado Group, Inc. ........... 151,445 14,480 Myers Industries, Inc. (a).... 168,547 5,410 National Presto Industries, Inc. ....................... 231,602
40 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, FURNITURE & HOUSEHOLD ITEMS continued 4,100 Preformed Line Products Co. ........................ $ 193,520 4,000 Raven Industries, Inc. (a).... 117,000 4,628 RC2 Corp. *................... 156,241 10,668 Stanley Furniture Co., Inc. ....................... 279,395 5,940 Steelcase, Inc., Class A...... 85,892 1,241 Summa Industries.............. 9,370 33,110 Thomas & Betts Corp. *........ 1,139,315 4,630 West Pharmaceutical Services, Inc. (a).................... 137,372 ------------ 9,774,041 ------------ GAS & OTHER PUBLIC UTILITIES - 1.4% 1,701 Artesian Resources Corp., Class A..................... 51,166 54,890 Atmos Energy Corp. ........... 1,550,642 11,440 California Water Service Group....................... 471,328 6,820 Chesapeake Utilities Corp. ... 239,723 26,160 Clean Harbors, Inc. * (a)..... 888,132 13,450 Laclede Group, Inc. .......... 436,991 2,840 ONEOK, Inc. .................. 96,617 2,260 RGC Resources, Inc. .......... 60,410 8,040 SJW Corp. .................... 388,171 40,120 South Jersey Industries, Inc. ....................... 1,169,097 45,392 Southwest Water Co. (a)....... 658,184 82,720 Vectren Corp. ................ 2,345,111 13,512 Waste Industries USA, Inc. ... 179,710 16,000 WGL Holdings, Inc. ........... 514,080 ------------ 9,049,362 ------------ GOVERNMENT AIRCRAFT & DEFENSE - 0.1% 8,242 Herley Industries *........... 153,548 3,050 Todd Shipyards Corp. ......... 58,255 9,820 United Industrial Corp. (a)... 351,065 ------------ 562,868 ------------ HEALTH CARE & HOSPITAL - 2.8% 45,850 Allied Healthcare International, Inc. *....... 259,053 4,550 Almost Family, Inc. *......... 73,710 9,500 American Shared Hospital Services.................... 56,905 5,070 AmSurg Corp. *................ 138,715 910 Community Health Systems, Inc. *........................... 35,317 15,200 Five Star Quality Care, Inc. *........................... 104,880 117,382 Health Net, Inc. * (a)........ 5,554,516 17,240 HealthTronics, Inc. * (a)..... 171,710 5,330 Humana, Inc. *................ 255,200 57,400 Kindred Healthcare, Inc. * (a)......................... 1,710,520 5 LifePoint Hospitals, Inc. *... 219 57,100 Manor Care, Inc. ............. 2,193,211 15,412 MedCath Corp. *............... 366,035 14,700 MEDTOX Scientific, Inc. *..... 106,575 2,091 National Dentex Corp. *....... 43,075 5,434 National Healthcare Corp. .... 190,190
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, HEALTH CARE & HOSPITAL continued 1,891 National Home Health Care Corp. ...................... $ 21,406 450 Option Care, Inc. (a)......... 6,588 8,716 Pediatric Services of America, Inc. *...................... 121,937 48,220 Pediatrix Medical Group, Inc. *........................... 3,704,260 8,390 Psychemedics Corp. ........... 114,104 17,400 RehabCare Group, Inc. *....... 357,048 25,050 Res-Care, Inc. *.............. 385,520 35,900 Triad Hospitals, Inc. *....... 1,625,193 ------------ 17,595,887 ------------ INFORMATION & SERVICES - 6.1% 1,410 Ablest, Inc. *................ 13,014 19,800 ABM Industries, Inc. (a)...... 412,038 86,000 Adesa, Inc. .................. 1,900,600 2,160 Administaff, Inc. ............ 85,838 2,031 Albany Molecular Research, Inc. *...................... 24,738 15,200 Ambassadors Groups, Inc. ..... 338,960 2,900 American Dental Partners, Inc. *........................... 98,368 56,130 American Retirement Corp. *... 1,056,928 1,570 Angelica Corp. ............... 28,025 1,940 Asset Acceptance Capital Corp. * (a)....................... 58,142 1,200 Barrett Business Services, Inc. *...................... 27,420 6,914 Butler International, Inc. *........................... 26,619 41,066 Capital Title Group, Inc. .... 303,888 21,650 Carriage Services, Inc. * (a)......................... 137,261 375 Cass Information Systems, Inc. ....................... 11,790 87,532 CBIZ, Inc. *.................. 446,413 19,110 CDI Corp. (a)................. 564,509 13,630 Central Parking Corp. ........ 203,769 132,809 CheckFree Corp. * (a)......... 5,022,836 2,101 Cornell Cos., Inc. * (a)...... 30,906 37,400 Covance, Inc. * (a)........... 1,794,826 190 CPI Corp. .................... 3,342 515 Discovery Partners International *............. 1,658 15,010 Dun & Bradstreet Corp. *...... 988,709 3,230 Ecology & Environment, Inc. ....................... 26,486 143 Escala Group, Inc. *.......... 2,381 4,798 Exponent, Inc. *.............. 150,609 256 Forrester Research, Inc. *.... 5,330 2,990 Franklin Covey Co. * (a)...... 21,349 2,660 G & K Services, Inc., Class A (a)......................... 104,777 1,700 Hallwood Group, Inc. ......... 108,800 17,740 Harte-Hanks, Inc. (a)......... 468,868 17,518 Hudson Highland Group, Inc. * (a)......................... 437,424 435 ICT Group, Inc. *............. 5,107 5,557 Jones Lang LaSalle, Inc. (a)......................... 255,955 17,760 Kelly Services, Inc., Class A........................... 544,522 19,500 Kendle International, Inc. *........................... 548,730 3,480 Labor Ready, Inc. * (a)....... 89,262 11,900 Layne Christensen Co. *....... 280,245
Laudus Trust Semi-Annual Report 41 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, INFORMATION & SERVICES continued 8,800 Mac-Gray Corp. *.............. $ 113,960 6,620 Manpower, Inc. ............... 293,862 11,400 MAXIMUS, Inc. ................ 407,550 7,876 Metal Management, Inc. (a).... 199,657 17,000 Michael Baker Corp. *......... 442,850 24,200 Monro Muffler Brake, Inc. .... 635,734 203,900 Monster Worldwide, Inc. *..... 6,261,769 191,574 MPS Group, Inc. * (a)......... 2,260,573 11,740 National Technical Systems, Inc. *...................... 58,348 20,397 NCO Group, Inc. * (a)......... 421,402 15,900 Nobel Learning Communities, Inc. *...................... 148,824 3,000 Opinion Research Corp. *...... 19,860 7,758 Per-Se Technologies, Inc. * (a)......................... 160,280 82,354 Pharmaceutical Product Development, Inc. *......... 4,736,179 6,428 PRA International *........... 194,833 7,818 RCM Technologies, Inc. *...... 46,986 29,140 Regis Corp. (a)............... 1,102,075 1,375 Security National Financial Corp., Class A *............ 4,276 1,890 Shaw Group, Inc. * (a)........ 46,607 26,757 SOURCECORP, Inc. * (a)........ 573,670 1,101 SRI/Surgical Express, Inc. *........................... 6,958 17,996 Steiner Leisure Ltd. * (a).... 611,324 5,428 TALX Corp. ................... 177,984 15,860 Trammell Crow Co. *........... 391,425 25,900 URS Corp. *................... 1,046,101 15,219 Vertrue, Inc. *............... 553,211 6,600 Volt Information Sciences, Inc. *...................... 134,112 1,800 Watson Wyatt & Co. Holdings (a)......................... 48,510 36,733 West Corp. * (a).............. 1,373,447 ------------ 39,102,809 ------------ INSTRUMENTS - 6.0% 83 ADE Corp. *................... 1,866 4,700 Allied Healthcare Products, Inc. *...................... 25,051 143,141 American Medical Systems Holdings, Inc. *............ 2,884,291 11,200 American Science & Engineering, Inc. * (a)..... 734,608 4,585 Armor Holdings, Inc. * (a).... 197,201 1,200 Arrow International, Inc. (a)......................... 33,840 741 ArthroCare Corp. * (a)........ 29,803 440 Astro-Med, Inc. .............. 5,425 770 Atrion Corp. ................. 50,050 76,680 Bausch & Lomb, Inc. .......... 6,186,541 6,079 Bio-Logic Systems Corp. *..... 36,656 80,370 Checkpoint Systems, Inc. * (a)......................... 1,906,376 12,429 Compex Technologies, Inc. *... 53,693 16,448 CONMED Corp. * (a)............ 458,570 18,805 Datascope Corp. .............. 583,331 40,990 DJ Orthopedics, Inc. *........ 1,186,251
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, INSTRUMENTS continued 120,960 Edwards Lifesciences Corp. *........................... $ 5,371,834 12,600 Esterline Technologies Corp. *........................... 477,414 7,970 Frequency Electronics, Inc. ....................... 86,873 39,520 Haemonetics Corp. *........... 1,878,386 4,799 Integra LifeSciences Holdings * (a)....................... 183,610 31,700 Invacare Corp. ............... 1,320,939 4,500 Iridex Corp. *................ 39,555 2,400 K-Tron International, Inc. *........................... 81,192 7,380 Langer, Inc. *................ 37,520 9,000 LeCroy Corp. *................ 133,650 1,308 Mesa Laboratories, Inc. ...... 16,677 5,802 Misonix, Inc. *............... 41,716 3,123 MOCON, Inc. .................. 30,231 8,092 Molecular Devices Corp. * (a)......................... 169,042 23,460 MTS Systems Corp. ............ 886,084 4,260 New Brunswick Scientific Co., Inc. *...................... 26,029 1,800 O.I. Corp. *.................. 19,170 6,200 Oakley, Inc. (a).............. 107,508 510 Orthofix International NV *... 22,236 17,300 Perceptron, Inc. *............ 110,832 11,380 PerkinElmer, Inc. ............ 231,811 10,120 Respironics, Inc. *........... 426,862 600 Schmitt Industries, Inc. *.... 4,127 2,712 Span-America Medical Systems, Inc. ....................... 27,649 133,140 Steris Corp. ................. 3,167,401 14,790 Symmetry Medical, Inc. * (a)......................... 350,523 74,963 Teleflex, Inc. (a)............ 5,284,892 88,500 Thoratec Corp. *.............. 1,571,760 51,080 Viasys Healthcare, Inc. * (a)......................... 1,276,489 7,961 Vital Signs, Inc. ............ 366,922 10,880 Zygo Corp. *.................. 166,682 ------------ 38,289,169 ------------ INSURANCE - 7.7% 3,475 Alleghany Corp. *............. 1,063,350 12,222 American National Insurance Co. ........................ 1,455,885 15,519 American Physicians Capital, Inc. *...................... 762,448 3,200 American Safety Insurance Holdings Ltd. *............. 55,168 51,578 AmerUs Group Co. (a).......... 2,959,030 12,667 Argonaut Group, Inc. * (a).... 342,136 19,646 Ceres Group, Inc. *........... 110,607 69,590 CNA Financial Corp. * (a)..... 2,078,653 7,600 Commerce Group, Inc. ......... 440,952 11,800 Delphi Financial Group, Inc., Class A..................... 552,240 119,740 Endurance Specialty Holdings Ltd. ....................... 4,084,330 1,300 FBL Financial Group, Inc., Class A..................... 38,935 26,160 Great American Financial Resources, Inc. ............ 523,200
42 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, INSURANCE continued 141,899 HCC Insurance Holdings, Inc. (a)......................... $ 4,048,378 88,500 Horace Mann Educators Corp. ...................... 1,750,530 2,411 Investors Title Co. .......... 94,632 89,874 IPC Holdings Ltd. ............ 2,934,386 3,613 Kansas City Life Insurance Co. ........................ 184,877 67,175 Max Re Capital Ltd. .......... 1,665,268 24,711 Meadowbrook Insurance Group, Inc. *...................... 138,382 400 Merchants Group, Inc. ........ 10,680 5,465 Midland Co. (a)............... 196,904 27,750 National Financial Partners Corp. ...................... 1,252,635 2,007 National Western Life Insurance Co., Class A *.... 423,979 7,150 NYMAGIC, Inc. ................ 173,960 12,630 Odyssey Re Holdings Corp. (a)......................... 322,570 200 Ohio Casualty Corp. .......... 5,424 76,580 Old Republic International Corp. ...................... 2,042,389 29,949 Philadelphia Consolidated Holding Corp. *............. 2,542,670 35,617 Presidential Life Corp. ...... 641,106 36,160 PXRE Group Ltd. (a)........... 486,714 118,080 Radian Group, Inc. ........... 6,270,047 3,900 RTW, Inc. *................... 44,460 28,561 Safety Insurance Group, Inc. ....................... 1,016,486 62,640 Scottish Re Group Ltd. (a).... 1,493,338 10,600 Selective Insurance Group, Inc. ....................... 518,340 12,500 StanCorp Financial Group, Inc. ....................... 1,052,500 3,044 State Auto Financial Corp. ... 96,312 3,410 Stewart Information Services Corp. ...................... 174,592 39,910 UICI.......................... 1,436,760 10,910 Unico American Corp. *........ 100,045 26,483 United America Indemnity Ltd., Class A * (a)............... 485,963 5,900 United Fire & Casualty Co. (a)......................... 266,149 10,450 W. R. Berkley Corp. (a)....... 412,566 29,210 Zenith National Insurance Corp. (a)................... 1,831,175 ------------ 48,581,151 ------------ IT HARDWARE - 4.9% 11,460 American Technical Ceramics Corp. *..................... 124,341 14,125 Amphenol Corp., Class A....... 569,803 3,100 Applied Innovation, Inc. *.... 11,935 73,177 Arris Group, Inc. * (a)....... 867,879 84,671 ATMI, Inc. * (a).............. 2,624,800 10,438 Avocent Corp. *............... 330,258 790 Blonder Tongue Laboratories, Inc. *...................... 1,706 6,575 BTU International, Inc. *..... 59,767 192,221 Cirrus Logic, Inc. *.......... 1,458,957 3,591 Cobra Electronics Corp. *..... 29,877 28,624 Cohu, Inc. ................... 676,958 861 Comtech Telecommunications Corp. * (a)................. 35,706
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, IT HARDWARE continued 500 Diodes, Inc. * (a)............ $ 18,130 20,944 DSP Group, Inc. * (a)......... 537,423 15,468 EMS Technologies, Inc. *...... 253,211 17,870 Emulex Corp. *................ 361,153 65,330 Entegris, Inc. *.............. 738,229 740 Espey Manufacturing & Electronics Corp. .......... 25,882 8,351 Giga-tronics, Inc. *.......... 35,158 19,330 Globecomm Systems, Inc. *..... 151,741 139,900 Harris Corp. ................. 5,847,819 42,200 Imation Corp. (a)............. 1,809,114 200 Innovex, Inc. * (a)........... 850 295,800 Intersil Corp., Class A....... 6,442,523 11,230 IXYS Corp. *.................. 118,589 8,900 MEMC Electronic Materials, Inc. * (a).................. 202,831 1,400 Merrimac Industries, Inc. *... 12,803 70,270 Microsemi Corp. * (a)......... 1,794,696 6,070 MKS Instruments, Inc. *....... 104,586 21,600 Netlogic Microsystems, Inc. * (a)......................... 466,344 160,070 ON Semiconductor Corp. * (a)......................... 827,562 600 Optical Cable Corp. *......... 3,342 781 Orbit International Corp. * (a)......................... 7,711 84,434 Photronics, Inc. * (a)........ 1,638,020 200 Semitool, Inc. *.............. 1,590 22,680 SonicWALL, Inc. * (a)......... 144,018 9,685 Sparton Corp. ................ 96,850 18,331 Stratos International, Inc. * (a)......................... 107,053 63,886 Symmetricom, Inc. *........... 494,478 18,690 Tekelec *..................... 391,556 4,610 Teledyne Technologies, Inc. *........................... 158,907 46,874 Trident Microsystems, Inc. * (a)......................... 1,491,062 19,210 Woodhead Industries, Inc. .... 263,753 ------------ 31,338,971 ------------ LAND & WATER TRANSPORTATION - 1.7% 3,376 Alexander & Baldwin, Inc. (a)......................... 179,738 730 B & H Ocean Carriers Ltd. *... 15,257 2,214 Celadon Group, Inc. *......... 49,372 92,152 CNF, Inc. .................... 4,837,980 3,273 Covenant Transport, Inc., Class A * (a)............... 39,603 26,802 Frozen Food Express Industries, Inc. * (a)...... 281,153 6,400 Hub Group, Inc., Class A *.... 234,944 11,940 International Shipholding Corp. *..................... 203,577 882 Isramco, Inc. *............... 12,586 25,150 Kirby Corp. * (a)............. 1,243,165 7,366 Marten Transport Ltd. *....... 186,360 44,600 Overseas Shipholding Group, Inc. (a).................... 2,601,518 22,238 Swift Transportation Co., Inc. * (a)....................... 393,613 5,490 Transport Corp. of America, Inc. *...................... 41,175 300 USA Truck, Inc. *............. 7,590
Laudus Trust Semi-Annual Report 43 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, LAND & WATER TRANSPORTATION continued 40,000 Werner Enterprises, Inc. (a)......................... $ 691,600 ------------ 11,019,231 ------------ METAL PRODUCTS & MACHINERY - 5.4% 4,606 Allied Motion Technologies, Inc. *...................... 18,194 4,570 Astec Industries, Inc. *...... 129,742 2,800 Baldor Electric Co. .......... 70,980 19,910 Blount International, Inc. *........................... 351,212 11,233 Bonso Electronics International, Inc. ........ 55,716 7,310 Crown Holdings, Inc. *........ 116,521 68,033 Cummins, Inc. (a)............. 5,986,224 3,280 Eastern Co. .................. 71,340 43,700 Energizer Holdings, Inc. * (a)......................... 2,477,790 14,824 EnerSys *..................... 224,880 39,660 EnPro Industries, Inc. *...... 1,336,145 15,200 ESCO Technologies, Inc. * (a)......................... 761,064 2,706 Evans & Sutherland Computer Corp. * (a)................. 16,128 15,630 Gardner Denver, Inc. * (a).... 697,098 12,513 Gehl Co. *.................... 348,737 2,650 Greenbrier Cos., Inc. (a)..... 88,086 5,628 Hardinge, Inc. ............... 82,661 2,100 International Aluminum Corp. ...................... 77,910 17,500 JLG Industries, Inc. ......... 640,325 96,768 Joy Global, Inc. ............. 4,882,913 64,000 Kennametal, Inc. ............. 3,138,560 8,000 L.S. Starrett Co., Class A (a)......................... 146,480 75,300 Lennox International, Inc. (a)......................... 2,063,973 800 Lincoln Electric Holdings, Inc. ....................... 31,520 1,300 Material Sciences Corp. *..... 19,591 10,700 Mestek, Inc. *................ 132,252 16,300 NCI Building Systems, Inc. * (a)......................... 664,877 3,459 NN, Inc. ..................... 41,473 10,700 Omega Flex, Inc. *............ 171,093 2,689 Q.E.P. Co., Inc. *............ 30,789 57,290 Regal-Beloit Corp. (a)........ 1,858,488 2,200 Reinhold Industries, Inc., Class A..................... 42,900 6,250 Rimage Corp. * (a)............ 166,688 18,800 Robbins & Myers, Inc. (a)..... 422,624 70 Rofin-Sinar Technologies, Inc. * (a)....................... 2,659 450 Shiloh Industries, Inc. *..... 6,026 10,470 SL Industries, Inc. *......... 149,407 3,670 SPX Corp. .................... 168,637 7,350 Standex International Corp. ...................... 193,526 1,837 TB Wood's Corp. *............. 13,226 900 Tecumseh Products Co., Class B........................... 18,530 200 Tennant Co. .................. 8,196 155,180 Timken Co. (a)................ 4,597,983 1,680 Twin Disc, Inc. .............. 66,377 900 Velcro Industries N.V. (a).... 12,063 4,940 Water Pik Technologies, Inc. *........................... 100,282 8,870 Woodward Governor Co. ........ 754,394
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, METAL PRODUCTS & MACHINERY continued 12,983 York International Corp. ..... $ 727,957 ------------ 34,184,237 ------------ MISCELLANEOUS FINANCE - 1.6% 36,770 A.G. Edwards, Inc. (a)........ 1,610,894 63,950 Affiliated Managers Group, Inc. * (a).................. 4,631,259 6,820 BKF Capital Group, Inc. (a)... 210,943 10,350 Cohen & Steers, Inc. (a)...... 207,000 2,500 Nuveen Investments, Class A (a)......................... 98,475 85,510 Raymond James Financial, Inc. (a)......................... 2,746,581 2,070 Stifel Financial Corp. *...... 74,313 35,800 SWS Group, Inc. .............. 587,120 ------------ 10,166,585 ------------ OIL & COAL RESOURCES - 3.8% 2,600 Arch Coal, Inc. (a)........... 175,500 782 Atlas America, Inc. * (a)..... 38,201 5,400 ATP Oil & Gas Corp. *......... 177,336 19,800 Berry Petroleum Co., Class A (a)......................... 1,320,462 30,830 Callon Petroleum Co. * (a).... 645,272 14,807 Comstock Resources, Inc. *.... 485,818 49,296 CONSOL Energy, Inc. .......... 3,759,806 3,700 Eastern American Natural Gas Trust....................... 115,625 22,900 Energy Partners Ltd. *........ 714,938 6,200 Forest Oil Corp. * (a)........ 323,020 1,900 Houston Exploration Co. * (a)......................... 127,775 50,200 Massey Energy Co. (a)......... 2,563,714 4,656 Noble Energy, Inc. ........... 218,366 90 Penn Virginia Corp. .......... 5,194 45,790 Pogo Producing Co. ........... 2,698,863 8,800 Remington Oil & Gas Corp. *... 365,200 2,376 Resource America, Inc., Class A........................... 42,126 18,900 Southwestern Energy Co. * (a)......................... 1,387,260 52,130 Stone Energy Corp. * (a)...... 3,182,015 12,300 Swift Energy Co. * (a)........ 562,725 200 Tidelands Royalty Trust, Class B........................... 3,778 57,500 Ultra Petroleum Corp. * (a)... 3,270,600 8,900 Vintage Petroleum, Inc. ...... 406,374 9,700 W&T Offshore, Inc. ........... 314,571 27,232 Whiting Petroleum Corp. *..... 1,193,851 ------------ 24,098,390 ------------ OIL DISTRIBUTION - 0.7% 6,819 Adams Resources & Energy, Inc. ....................... 149,336 41,730 Frontier Oil Corp. (a)........ 1,850,726 38,070 Tesoro Petroleum Corp. ....... 2,559,826 21,040 TransMontaigne, Inc. *........ 168,110 ------------ 4,727,998 ------------ OIL DRILLING & SERVICES - 3.1% 150,400 Grant Prideco, Inc. * (a)..... 6,113,760 10,000 Grey Wolf, Inc. * (a)......... 84,300
44 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, OIL DRILLING & SERVICES continued 6,800 Hydril * (a).................. $ 466,752 9,400 Lufkin Industries, Inc. (a)... 409,370 2,700 NATCO Group, Inc., Class A *........................... 68,364 40,700 Oceaneering International, Inc. *...................... 2,173,787 8,300 Oil States International, Inc. *........................... 301,373 53,800 Pride International, Inc. *... 1,533,838 109,280 Rowan Cos., Inc. ............. 3,878,347 17,121 TETRA Technologies, Inc. *.... 534,518 63,690 Tidewater, Inc. (a)........... 3,099,792 4,100 Veritas DGC, Inc. *........... 150,142 34,750 W-H Energy Services, Inc. * (a)......................... 1,126,595 ------------ 19,940,938 ------------ PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 1.6% 30,400 Baldwin Technology Co., Inc., Class A *................... 131,024 1,550 Dataram Corp. ................ 10,445 7,170 Diebold, Inc. (a)............. 247,078 6,800 Global Payment Technologies, Inc. *...................... 24,480 6,870 Hypercom Corp. * (a).......... 44,792 1,510 Interphase Corp. *............ 6,871 600 Key Tronic Corp. *............ 2,472 74,892 M-Systems Flash Disk Pioneers Ltd. * (a).................. 2,240,769 1,000 PAR Technology Corp. * (a).... 23,000 4,190 Printronix, Inc. ............. 65,574 49,185 SafeNet, Inc. * (a)........... 1,785,907 112,100 UNOVA, Inc. * (a)............. 3,921,258 55,554 VASCO Data Security International, Inc. * (a)... 503,875 85,416 Western Digital Corp. * (a)... 1,104,429 ------------ 10,111,974 ------------ PUBLISHING, BROADCASTING & CINEMA - 1.1% 97,403 American Greetings Corp., Class A (a)................. 2,668,842 41,800 Banta Corp. (a)............... 2,127,202 2,700 Cadmus Communications Corp. .. 56,700 8,137 Central European Media Enterprises Ltd., Class A * (a)......................... 429,715 2,810 Outlook Group Corp. .......... 44,679 2,400 Point.360 *................... 5,472 37,370 Reader's Digest Association, Inc. ....................... 596,799 22,304 Regent Communications, Inc. *........................... 117,319 3,200 SBS Broadcasting SA *......... 173,952 22,423 Scholastic Corp. * (a)........ 828,754 3,506 Tufco Technologies, Inc. *.... 22,088 8,160 World Wrestling Entertainment, Inc. (a).................... 106,080 ------------ 7,177,602 ------------ REAL ESTATE DEVELOPMENT - 0.4% 28,990 Alderwoods Group, Inc. *...... 474,856 11,150 AMREP Corp. .................. 298,263
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, REAL ESTATE DEVELOPMENT continued 5,097 Avatar Holdings, Inc. *....... $ 301,946 5,600 Bluegreen Corp. * (a)......... 98,840 3,100 ILX Resorts, Inc. (a)......... 27,730 500 J.W. Mays, Inc. *............. 7,760 600 Patriot Transportation Holding, Inc. *............. 41,220 26,470 Service Corp. International (a)......................... 219,436 103,427 Stewart Enterprises, Inc., Class A (a)................. 685,721 3,846 Tarragon Corp. *.............. 71,382 7,800 United Capital Corp. * (a).... 182,988 ------------ 2,410,142 ------------ REAL ESTATE INVESTMENT TRUSTS - 3.9% 3,540 Ashford Hospitality Trust (a)......................... 38,090 6,900 Bedford Property Investors, Inc. (a).................... 164,496 21,530 Boykin Lodging Co. * (a)...... 267,403 16,220 Brandywine Realty Trust (a)... 504,280 12,900 Camden Property Trust (a)..... 719,175 41,100 CBL & Associates Properties, Inc. (a).................... 1,684,689 13,100 Colonial Properties Trust (a)......................... 582,688 3,300 Commercial NET Lease Realty... 66,000 15,695 Correctional Properties Trust....................... 461,590 1,410 Eagle Hospitality Properties Trust, Inc. ................ 14,072 31,720 ECC Capital Corp. (a)......... 103,407 15,500 Entertainment Properties Trust....................... 691,765 1,080 Gladstone Commercial Corp. (a)......................... 18,036 21,250 Highland Hospitality Corp. (a)......................... 218,025 400,502 HRPT Properties Trust......... 4,970,230 250 Income Opportunity Realty Investors *................. 1,825 33 Investors Real Estate Trust... 314 4,604 Lexington Corporate Properties Trust....................... 108,424 28,850 LTC Properties, Inc. ......... 611,620 19,330 Mission West Properties, Inc. (a)......................... 194,073 200 Monmouth Capital Corp. ....... 1,134 1,604 Monmouth Real Estate Investment Corp., Class A... 13,137 11,090 National Health Investors, Inc. ....................... 306,195 7,100 National Health Realty, Inc. (a)......................... 137,811 13,820 New Plan Excel Realty Trust (a)......................... 317,169 12,230 One Liberty Properties, Inc. ....................... 243,499 140 Pennsylvania Real Estate Investment Trust (a)........ 5,905 5,310 Presidential Realty Corp., Class B..................... 42,427 8,870 PS Business Parks, Inc. ...... 406,246 1,630 Roberts Realty Investors, Inc. *........................... 12,600 14,090 Sizeler Property Investors, Inc. (a).................... 171,053 77,530 SL Green Realty Corp. (a)..... 5,285,995
Laudus Trust Semi-Annual Report 45 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, REAL ESTATE INVESTMENT TRUSTS continued 58,790 Strategic Hotel Capital, Inc. (a)......................... $ 1,073,505 60,090 Sunstone Hotel Investors, Inc. (a)......................... 1,465,595 173,150 Trizec Properties, Inc. (a)... 3,992,839 200 Urstadt Biddle Properties..... 3,216 5,190 Windrose Medical Properties Trust....................... 79,303 5,302 Winston Hotels, Inc. ......... 53,020 ------------ 25,030,851 ------------ RESTAURANTS, HOTELS & THEATERS - 2.3% 4,595 Benihana, Inc. *.............. 81,377 80 Brinker International, Inc. * (a)......................... 3,005 81,397 CBRL Group, Inc. (a).......... 2,739,823 30 CEC Entertainment, Inc. * (a)......................... 953 375 Champps Entertainment, Inc. * (a)......................... 2,595 12,439 Checkers Drive-In Restaurants, Inc. *...................... 190,068 340 Churchill Downs, Inc. ........ 12,009 4,000 Dave & Buster's, Inc. * (a)... 53,400 186,700 Denny's Corp. * (a)........... 774,805 4,500 Famous Dave's of America, Inc. *........................... 53,640 7,416 Fox & Hound Restaurant Group *........................... 75,495 2,000 Frisch's Restaurants, Inc. ... 48,320 16,950 Interstate Hotels & Resorts, Inc. *...................... 78,818 9,812 Isle of Capri Casinos, Inc. * (a)......................... 209,781 7,710 J. Alexander's Corp. *........ 65,766 48,330 Jack in the Box, Inc. * (a)... 1,445,550 10,700 Lone Star Steakhouse & Saloon, Inc. ....................... 278,200 6,100 Luby's, Inc. * (a)............ 79,666 29,410 Marcus Corp. ................. 589,376 2,680 Monarch Casino & Resort, Inc. * (a)....................... 45,533 4,524 Nathan's Famous, Inc. *....... 40,716 4,200 Orient- Express Hotels Ltd., Class A..................... 119,364 14,152 Papa John's International, Inc. * (a).................. 709,298 82,800 Penn National Gaming, Inc. *........................... 2,575,908 53,500 Ryan's Restaurant Group, Inc. *........................... 624,345 12,777 Sands Regent *................ 119,594 3,600 Star Buffet, Inc. ............ 27,720 30,900 Station Casinos, Inc. (a)..... 2,050,524 61,740 The Steak n Shake Co. *....... 1,120,581 11,500 Vail Resorts, Inc. * (a)...... 330,625 ------------ 14,546,855 ------------ RETAIL - 5.9% 1,950 1-800 CONTACTS, Inc. * (a).... 36,563 51,719 1-800-FLOWERS.COM, Inc., Class A *......................... 362,550
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, RETAIL continued 427 Acco Brands Corp. * (a)....... $ 12,050 9,990 Advance Auto Parts, Inc. * (a)......................... 386,413 400 AutoNation, Inc. *............ 7,988 11,762 Bakers Footwear Group, Inc. * (a)......................... 176,430 8,980 Barnes & Noble, Inc. ......... 338,546 5,343 Big Dog Holdings, Inc. *...... 38,042 205,760 Big Lots, Inc. * (a).......... 2,261,302 2,538 Blair Corp. (a)............... 93,627 9,630 Books-A-Million, Inc. ........ 86,670 107,590 Borders Group, Inc. .......... 2,385,270 41,270 Brown Shoe Co., Inc. ......... 1,361,910 36,500 Burlington Coat Factory Warehouse Corp. ............ 1,388,460 53,430 Cato Corp., Class A........... 1,064,860 138,255 Charming Shoppes, Inc. * (a)......................... 1,475,181 13,900 Circuit City Stores, Inc. (a)......................... 238,524 28,957 Coldwater Creek, Inc. * (a)... 730,296 6,400 Conn's, Inc. * (a)............ 177,408 7,460 Cost-U-Less, Inc. *........... 45,880 2,880 CSK Auto Corp. *.............. 42,854 943 Deb Shops, Inc. .............. 20,501 8,100 Dress Barn, Inc. * (a)........ 184,356 21,994 EZCORP, Inc., Class A * (a)... 353,224 1,804 Factory Card & Party Outlet Corp. *..................... 13,079 21,914 Finish Line, Inc., Class A.... 319,725 8,400 Finlay Enterprises, Inc. * (a)......................... 76,020 9,194 First Cash Financial Services, Inc. *...................... 241,986 1,400 Foodarama Supermarkets, Inc. *........................... 50,225 8,900 GameStop Corp., Class A * (a)......................... 280,083 3,563 GameStop Corp., Class B *..... 101,154 9,367 Gottschalks, Inc. *........... 85,427 10,160 Group 1 Automotive, Inc. *.... 280,416 73,251 GSI Commerce, Inc. * (a)...... 1,457,695 10,600 Guess?, Inc. * (a)............ 227,158 16,030 Hastings Entertainment, Inc. *........................... 93,295 32,500 Lithia Motors, Inc., Class A........................... 941,850 27,200 Longs Drug Stores Corp. (a)... 1,166,608 13,681 Matria Healthcare, Inc. *..... 516,458 860 PolyMedica Corp. ............. 30,048 55,959 Restoration Hardware, Inc. * (a)......................... 353,661 13,800 Retail Ventures, Inc. * (a)... 151,524 20,500 REX Stores Corp. * (a)........ 280,850 2,100 Ruddick Corp. ................ 48,405 19,197 Rush Enterprises, Inc., Class B *......................... 288,147 7,500 Shoe Carnival, Inc. *......... 119,325 2,702 Sport Chalet, Inc., Class A *........................... 29,041 450 Sport Chalet, Inc., Class B *........................... 6,006 36,870 Sports Authority, Inc. * (a)......................... 1,085,453 60,923 Stage Store, Inc. ............ 1,637,001 53,150 Stein Mart, Inc. ............. 1,078,945 1,400 Syms Corp. (a)................ 18,746 14,786 Systemax, Inc. *.............. 104,093 15,022 TBC Corp. *................... 518,109
46 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, RETAIL continued 11,228 The Bon-Ton Stores, Inc. (a)......................... $ 218,048 400 The Buckle, Inc. ............. 13,588 32,340 The Men's Wearhouse, Inc. *... 863,478 36,060 Trans World Entertainment Corp. * (a)................. 284,513 70,304 UGI Corp. .................... 1,979,058 790 United Retail Group, Inc. *... 6,036 191,626 Urban Outfitters, Inc. * (a)......................... 5,633,803 1,000 Village Super Market, Inc., Class A..................... 52,100 29,660 Weis Markets, Inc. ........... 1,186,697 84,450 Zale Corp. * (a).............. 2,295,351 ------------ 37,402,110 ------------ SOAPS & COSMETICS - 0.1% 12,800 Church & Dwight Co., Inc. (a)......................... 472,832 4,567 CPAC, Inc. ................... 22,835 13,860 Parlux Fragrances, Inc. * (a)......................... 403,880 ------------ 899,547 ------------ SOFTWARE - 7.6% 46,874 Activision, Inc. * (a)........ 958,573 33,594 Allscripts Healthcare Solution, Inc. * (a)........ 605,364 18,750 American Software, Inc., Class A........................... 105,000 2,775 ANSYS, Inc. *................. 106,810 2,000 Anteon International Corp. * (a)......................... 85,520 10,747 Black Box Corp. (a)........... 450,944 21,135 Blackbaud, Inc. .............. 299,483 262,390 BMC Software, Inc. *.......... 5,536,428 13,653 CACI International, Inc., Class A * (a)............... 827,372 52,200 Cerner Corp. * (a)............ 4,537,746 37,300 CIBER, Inc. * (a)............. 277,139 52,456 Cognizant Technology Solutions Corp., Class A *............ 2,443,925 14,479 Computer Programs & Systems, Inc. ....................... 500,105 3,845 Computer Task Group, Inc. * (a)......................... 14,227 157,800 Compuware Corp. * (a)......... 1,499,100 20,300 Covansys Corp. * (a).......... 323,988 7,152 CSP, Inc. *................... 51,065 7,159 Dendrite International, Inc. *........................... 143,824 660 Digital Insight Corp. * (a)... 17,200 9,470 Edgewater Technology, Inc. *........................... 45,172 3,440 eFunds Corp. *................ 64,775 68,320 First American Corp. (a)...... 3,120,174 726 First Consulting Group, Inc. *........................... 4,211 60,700 Hyperion Solutions Corp. *.... 2,953,055 12,483 IDX Systems Corp. * (a)....... 539,016 2,290 Inforte Corp. ................ 9,595 84,800 Internet Security Systems, Inc. * (a).................. 2,036,048 11,213 Intrado, Inc. * (a)........... 202,170 22,700 John H. Harland Co. .......... 1,007,880 5,621 Keynote Systems, Inc. *....... 72,961 40,040 Lawson Software, Inc. *....... 277,878
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SOFTWARE continued 51,675 Lightbridge, Inc. *........... $ 417,534 1,920 Manatron, Inc. *.............. 15,552 13,045 ManTech International Corp., Class A *................... 344,518 645 MapInfo Corp. * (a)........... 7,901 83 Marchex, Inc., Class B * (a)......................... 1,374 710 McAfee, Inc. *................ 22,308 2,649 Merge Technologies, Inc. *.... 45,271 5,772 Micros Systems, Inc. *........ 252,525 13,167 Moldflow Corp. *.............. 209,619 8,861 NetManage, Inc. *............. 44,571 570 NetScout Systems, Inc. *...... 3,095 1,410 NWH, Inc. .................... 20,234 1,650 Pacific Internet Ltd. *....... 11,352 1,146 PDF Solutions, Inc. * (a)..... 19,024 29,640 Pegasus Solutions, Inc. * (a)......................... 266,167 110,120 Perot Systems Corp., Class A *........................... 1,558,198 9,450 Pervasive Software, Inc. *.... 39,690 43,854 Phoenix Technologies Ltd. * (a)......................... 330,221 11,360 Progress Software Corp. * (a)......................... 360,907 33,100 ProQuest Co. * (a)............ 1,198,220 16,268 Quality Systems, Inc. (a)..... 1,123,956 57,100 Radiant Systems, Inc. *....... 589,272 2,300 Redback Networks, Inc. * (a)......................... 22,816 67,127 Source Interlink Cos., Inc. *........................... 742,425 16,770 SPSS, Inc. *.................. 402,480 134,901 Sybase, Inc. *................ 3,159,381 48,799 Sykes Enterprises, Inc. *..... 580,708 19,810 Syniverse Holdings, Inc. *.... 305,074 18,459 TechTeam Global, Inc. * (a)... 222,985 66,176 THQ, Inc. * (a)............... 1,410,872 1,800 Tier Technologies, Inc., Class B * (a)..................... 15,570 1,710 Tripos, Inc. *................ 7,182 28,020 TriZetto Group, Inc. * (a).... 395,642 3,900 TSR, Inc. .................... 20,085 3,200 Tyler Technologies, Inc. *.... 26,496 11,400 Ulticom, Inc. *............... 125,742 380,544 WebMD Corp. *................. 4,216,428 17,260 WebSideStory, Inc. * (a)...... 305,847 23,579 Witness Systems, Inc. *....... 492,565 ------------ 48,450,555 ------------ TEXTILES & APPAREL - 1.8% 6,830 Albany International Corp., Class A..................... 251,822 5,654 Ashworth, Inc. * (a).......... 38,617 4,300 Coach, Inc. * (a)............. 134,848 3,110 Culp, Inc. * (a).............. 14,555 6,096 Cutter & Buck, Inc. .......... 74,981 3,640 Decorator Industries, Inc. (a)......................... 31,923 26,647 Dixie Group, Inc. * (a)....... 424,753 2,546 G-III Apparel Group Ltd. *.... 28,133 4,691 Haggar Corp. ................. 133,365 9,900 Hampshire Group Ltd. *........ 233,640 39,950 Hartmarx Corp. * (a).......... 261,673 1,074 K-Swiss, Inc., Class A (a).... 31,758
Laudus Trust Semi-Annual Report 47 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Discovery Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, TEXTILES & APPAREL continued 8,300 Kenneth Cole Productions, Inc. ....................... $ 226,507 90,710 Liz Claiborne, Inc. .......... 3,566,716 2,600 McRae Industries, Inc., Class A........................... 32,474 16,500 Phillips-Van Heusen Corp. .... 511,830 27,970 Polo Ralph Lauren Corp. (a)... 1,406,891 3,676 Rocky Shoes & Boots, Inc. * (a)......................... 105,134 17,774 Russell Corp. (a)............. 249,547 40,920 Skechers U.S.A., Inc., Class A *........................... 669,860 26,771 Steven Madden Ltd. *.......... 613,591 64,485 Stride Rite Corp. (a)......... 826,698 9,134 The Gymboree Corp. *.......... 124,588 62,400 Tommy Hilfiger Corp. *........ 1,082,640 3,137 Weyco Group, Inc. (a)......... 61,172 20,000 Wolverine World Wide, Inc. ... 421,000 ------------ 11,558,716 ------------ WHOLESALE - 2.7% 400 ADDvantage Technologies Group, Inc. *...................... 1,556 7,810 All American Semiconductor, Inc. *...................... 35,536 47,885 Applied Industrial Technologies, Inc. (a)...... 1,718,114 6,459 Aristotle Corp. *............. 46,957 146,111 Arrow Electronics, Inc. * (a)......................... 4,582,040 35,350 Aviall, Inc. *................ 1,194,123 70,840 Avnet, Inc. * (a)............. 1,732,038 10,060 Beacon Roofing Supply, Inc. * (a)......................... 328,660 61,273 Bell Microproducts, Inc. * (a)......................... 614,568 23,700 BlueLinx Holdings, Inc. ...... 318,528 8,868 Central European Distribution Corp. * (a)................. 377,688 9,400 Coast Distribution System, Inc. ....................... 55,930 3,840 Delta Apparel, Inc. .......... 54,950 12,150 Department 56, Inc. * (a)..... 151,875 1,850 DXP Enterprises, Inc. *....... 41,385 2,600 First Aviation Services, Inc. *........................... 10,400 4,513 Fresh Brands, Inc. * (a)...... 32,494 3,394 GTSI Corp. * (a).............. 24,946 27,360 Handleman Co. (a)............. 345,557 16,301 Huttig Building Products, Inc. *........................... 147,524 8,800 IKON Office Solutions, Inc. (a)......................... 87,824 5,463 Industrial Distribution Group, Inc. *...................... 50,369 15,580 Interline Brands, Inc. * (a)......................... 327,336 18,728 Keystone Automotive Industries, Inc. *.......... 539,554 3,000 Lawson Products, Inc. ........ 110,160 10,880 Lazare Kaplan International, Inc. *...................... 107,277 2,232 LKQ Corp. * (a)............... 67,406 3,100 NACCO Industries, Inc., Class A........................... 354,795
SHARES OR PRINCIPAL VALUE ---------------------------------------------------------- COMMON STOCK, WHOLESALE continued 15,300 Nash Finch Co. (a)............ $ 645,507 60 Nu Horizons Electronics Corp. *........................... 434 1,700 P & F Industries, Inc. *...... 25,687 1,380 Performance Food Group Co. *.. 43,553 15,700 Pomeroy IT Solutions, Inc. * (a)......................... 178,352 44,935 Spartan Stores, Inc. *........ 462,831 1,160 SYNNEX Corp. * (a)............ 19,534 8,400 TESSCO Technologies, Inc. *... 109,872 5,590 Traffix, Inc. (a)............. 34,826 11,800 Valley National Gases, Inc. ....................... 194,464 15,079 Ventiv Health, Inc. *......... 395,221 100 Watsco, Inc., Class B......... 5,260 51,600 WESCO International, Inc. *... 1,747,691 ------------ 17,322,822 ------------ TOTAL COMMON STOCK (COST $572,617,015)............... 632,912,696 ------------ SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING - 8.5% 53,993,755 State Street Navigator Securities Lending Prime Portfolio................... 53,993,755 ------------ TOTAL SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (COST $53,993,755)................ 53,993,755 ------------ REPURCHASE AGREEMENT - 5.3% $34,079,000 State Street Bank dated 9/30/05, due 10/3/05 at 2.75% with a maturity value of $34,086,810 (fully collateralized by various U.S. Government Securities)................. 34,079,000 ------------ TOTAL REPURCHASE AGREEMENT (COST $34,079,000).......... 34,079,000 ------------ TOTAL INVESTMENTS (COST $660,689,770) (B) - 113.1%................ 720,985,451 NET OTHER ASSETS (LIABILITIES) - (13.1)%..... (83,659,304) ------------ NET ASSETS - 100.0%........... $637,326,147 ============
--------------- * Non-income producing security. (a) All or a portion of this security was on loan as of September 30, 2005. (b) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.................. $ 76,361,221 Unrealized depreciation.................. (16,065,540) ------------ Net unrealized appreciation.............. $ 60,295,681 ============
48 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG U.S. SMALL CAPITALIZATION FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 99.8% AGRICULTURE, FOOD & BEVERAGE - 2.9% 31,555 Andersons, Inc. (a).......... $ 923,930 10 Cagle's, Inc., Class A *..... 104 265,246 Chiquita Brands International, Inc. (a).... 7,413,626 14,736 Diedrich Coffee, Inc. *...... 117,910 295,424 Flowers Foods, Inc. ......... 8,059,167 480 Glacier Water Services, Inc. *.......................... 9,600 8,254 J & J Snack Foods Corp. ..... 477,081 156,800 Lance, Inc. ................. 2,737,728 69,800 National Beverage Corp. *.... 541,648 212,670 Ralcorp Holdings, Inc. (a)... 8,915,126 4,580 Seaboard Corp. (a)........... 6,288,340 400 Seneca Foods Corp., Class B *.......................... 7,400 140,358 Zapata Corp. *............... 1,003,560 -------------- 36,495,220 ------------- AIRLINES - 0.7% 16,514 Air Methods Corp. * (a)...... 186,938 89,430 AirNet Systems, Inc. * (a)... 424,793 257,500 Alaska Air Group, Inc. * (a)........................ 7,482,950 101,530 MAIR Holdings, Inc. * (a).... 591,920 4,140 Offshore Logistics, Inc. *... 153,180 -------------- 8,839,781 ------------- AUTOS - 0.3% 79,483 Aftermarket Technology Corp. * (a)...................... 1,461,692 95,551 R&B, Inc. *.................. 979,398 7,900 Sequa Corp., Class A *....... 466,100 5,082 Spartan Motors, Inc. ........ 55,241 36,694 Supreme Industries, Inc., Class A.................... 344,557 68,801 Sypris Solutions, Inc. (a)... 738,923 -------------- 4,045,911 ------------- BANKS & CREDIT INSTITUTIONS - 7.5% 29,179 1st Source Corp. ............ 675,494 175,457 Accredited Home Lenders Holding Co. * (a).......... 6,169,067 178,531 Advanta Corp., Class A....... 4,652,518 5,400 American Community Bancshares, Inc. .......... 92,664 100,567 Anchor BanCorp Wisconsin, Inc. (a)................... 2,964,715 100 Auburn National Bancorporation, Inc. ...... 2,350 19 Bancorp Rhode Island, Inc. ...................... 697 73,920 Banner Corp. ................ 1,969,229 20,100 Berkshire Bancorp, Inc. ..... 360,994 10,396 Beverly Hills Bancorp, Inc. ...................... 106,663 16,761 BNCCORP, Inc. *.............. 222,083 301 BOE Financial Services of Virginia, Inc. ............ 9,182 5,473 Britton & Koontz Capital Corp. ..................... 111,704 210 Brunswick Bancorp *.......... 2,549 540 Camco Financial Corp. ....... 7,690
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 6,000 Camden National Corp. ....... $ 226,020 25,078 Capital Crossing Bank * (a)........................ 871,210 22,600 Carver Bancorp, Inc. ........ 374,934 320 Central Bancorp, Inc. ....... 8,971 10,100 Centrue Financial Corp. *.... 264,287 24,352 CFS Bancorp, Inc. ........... 326,317 20 Codorus Valley Bancorp, Inc. ...................... 364 20 Collegiate Funding Services * (a)........................ 296 3,006 Colony Bankcorp, Inc. (a).... 81,342 1,030 Community Bank Shares of Indiana, Inc. ............. 25,369 100 Community Bankshares, Inc. .. 1,700 1,900 Community Capital Corp. ..... 45,600 96 Community Central Bank Corp. ..................... 1,382 2,175 Community Financial Corp. ... 46,077 180 Community Shores Bank Corp. *.......................... 2,826 11,000 Community West Bancshares.... 136,400 61,138 CompuCredit Corp. * (a)...... 2,715,750 38,827 Consumer Portfolio Services, Inc. * (a)................. 194,135 289 Cooperative Bankshares, Inc. (a)........................ 5,569 22,320 Corus Bankshares, Inc. (a)... 1,223,806 36,907 Cowlitz Bancorp *............ 494,185 1,473 Crescent Banking Co. ........ 48,992 19,679 Desert Community Bank........ 639,568 2,089 ECB Bancorp, Inc. ........... 60,884 4,000 EFC Bancorp, Inc. ........... 133,200 10,909 Elmira Savings Bank, FSB..... 294,543 110 Federal Agricultural Mortgage Corp., Class C (a)......... 2,677 60 Fidelity Bancorp, Inc. ...... 1,152 9,457 Fidelity Southern Corp. (a)........................ 164,552 2,646 First Bancorp of Indiana, Inc. ...................... 59,535 11,901 First Bancshares, Inc. ...... 204,459 12,550 First BancTrust Corp. ....... 161,895 64,226 First Citizens BancShares, Inc., Class A.............. 10,960,166 2,891 First Defiance Financial Corp. ..................... 79,300 14,584 First Federal Bancshares of Arkansas, Inc. ............ 344,037 1,050 First Federal Bancshares, Inc. ...................... 21,672 5,999 First Federal Bankshares, Inc. ...................... 116,681 1,753 First Indiana Corp. (a)...... 59,725 5,093 First Mariner Bancorp *...... 85,919 59,056 First Place Financial Corp. (a)........................ 1,309,272 4,000 First Regional Bancorp *..... 315,160 330 First West Virginia Bancorp, Inc. ...................... 6,039 1,300 FirstBank NW Corp. .......... 36,075 8,666 FirstFed Bancorp, Inc. ...... 94,459 89,920 FirstFed Financial Corp. * (a)........................ 4,838,595 580 FMS Financial Corp. ......... 10,150
Laudus Trust Semi-Annual Report 49 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 3,340 FNB Corp. ................... $ 62,992 300 Glen Burnie Bancorp.......... 6,006 1,900 Great Pee Dee Bancorp, Inc. ...................... 28,880 60 Greene County Bancshares, Inc. ...................... 1,553 8,200 GS Financial Corp. .......... 129,970 3,052 Guaranty Federal Bancshares, Inc. ...................... 82,891 25,078 Habersham Bancorp (a)........ 591,841 23,406 HF Financial Corp. .......... 441,905 9,400 Hingham Institution for Savings.................... 384,554 16,950 HMN Financial, Inc. ......... 537,146 6,123 Horizon Bancorp.............. 162,719 14,818 Integra Bank Corp. .......... 321,551 48,600 Intervest Bancshares Corp. *.......................... 1,066,770 2,509 ITLA Capital Corp. *......... 131,697 2,000 Lincoln Bancorp.............. 31,800 3,698 LSB Financial Corp. ......... 104,727 12,169 Massbank Corp. (a)........... 404,479 10,276 Matrix Bancorp, Inc. *....... 132,149 40 Mayflower Co-operative Bank.. 685 21,129 Medallion Financial Corp. ... 209,388 2,000 Meta Financial Group, Inc. ...................... 39,500 100 MetroCorp Bancshares, Inc. ...................... 2,368 3,400 MFB Corp. ................... 85,850 14,119 MidWestOne Financial Group, Inc. ...................... 266,496 11,016 National Mercantile Bancorp *.......................... 171,304 10,030 New Hampshire Thrift Bancshares, Inc. .......... 141,323 13,450 North Valley Bancorp (a)..... 229,995 14,700 Northway Financial, Inc. .... 501,491 12,608 Park Bancorp, Inc. .......... 387,066 1,900 Parkvale Financial Corp. .... 51,775 11,590 Patriot National Bancorp, Inc. (a)................... 218,692 36 PennFed Financial Services, Inc. ...................... 658 1,454 Peoples Bancorp of North Carolina................... 30,861 900 Peoples Bancorp, Inc. ....... 17,910 14,700 Peoples BancTrust Co., Inc. ...................... 254,678 2,700 Peoples Community Bancorp.... 57,645 1,197 Peoples Financial Corp. ..... 21,247 1,640 Pinnacle Bancshares, Inc. ... 22,345 19,597 Pocahontas Bancorp, Inc. .... 245,060 2,200 Premier Financial Bancorp, Inc. *..................... 28,875 327 Princeton National Bancorp, Inc. ...................... 11,118 46,266 Provident Bankshares Corp. (a)........................ 1,609,131 37,531 Provident Financial Holdings, Inc. ...................... 1,052,745 44,225 PSB Bancorp, Inc. *.......... 619,150 8,250 QCR Holdings, Inc. .......... 169,538
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 4,058 Renasant Corp. .............. $ 128,436 33,283 Republic Bancorp, Inc., Class A (a)...................... 696,280 5,061 Republic First Bancorp, Inc. *.......................... 62,554 393 South Street Financial Corp. (a)........................ 3,798 14,828 Southern Missouri Bancorp, Inc. ...................... 215,970 133,189 Sterling Financial Corp. (a)........................ 3,003,412 99,955 SVB Financial Group * (a).... 4,861,811 16,178 Team Financial, Inc. ........ 245,097 3,900 Teche Holding Co. ........... 151,593 10,166 TF Financial Corp. (a)....... 289,375 20,500 Timberland Bancorp, Inc. .... 475,602 79,690 UMB Financial Corp. (a)...... 5,234,038 310 Union Community Bancorp...... 7,890 11,438 United Bancshares, Inc. ..... 183,580 18,651 United Community Financial Corp. ..................... 209,264 3,687 United Financial Corp. ...... 92,175 1,180 United Security Bancshares, Inc. ...................... 32,379 18,201 Unity Bancorp, Inc. ......... 236,977 49,814 Wainwright Bank & Trust Co. (a)........................ 518,564 305,100 Walter Industries, Inc. (a)........................ 14,925,491 8,397 Washington Banking Co. ...... 154,505 12,240 Washington Savings Bank, F.S.B...................... 111,506 71,022 Westcorp..................... 4,183,196 44,340 World Acceptance Corp. *..... 1,126,679 10,114 WSFS Financial Corp. (a)..... 595,613 252 WVS Financial Corp. ......... 4,108 -------------- 93,263,263 ------------- BASIC MINERALS & METALS - 2.1% 1,740 A. M. Castle & Co. *......... 30,450 73,850 Aleris International, Inc. *.......................... 2,027,183 6,033 Insteel Industries, Inc. .... 92,245 61,200 L.B. Foster Co., Class A * (a)........................ 810,900 30,000 Lone Star Technologies, Inc. * (a)...................... 1,667,700 43,927 Northwest Pipe Co. *......... 1,137,270 160,000 NS Group, Inc. * (a)......... 6,280,000 130,580 Quanex Corp. (a)............. 8,647,007 14,542 Roanoke Electric Steel Corp. ..................... 291,276 242,476 Ryerson Tull, Inc. (a)....... 5,164,739 1,000 Synalloy Corp. *............. 11,189 -------------- 26,159,959 ------------- BIOTECHNOLOGY - 0.0% 116,564 Harvard Bioscience, Inc. *... 355,520 ------------- CELLULAR & WIRELESS - 0.2% 69,728 USA Mobility, Inc. * (a)..... 1,881,261 -------------
50 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued CHEMICALS & RUBBER - 2.6% 354,582 A. Schulman, Inc. (a)........ $ 6,364,747 72,936 American Pacific Corp. *..... 431,489 125,140 Arch Chemicals, Inc. (a)..... 2,909,505 16,400 Bairnco Corp. ............... 175,316 314,085 Chemtura Corp. .............. 3,900,936 805,600 Hercules, Inc. * (a)......... 9,844,432 259,000 Hexcel Corp. * (a)........... 4,737,110 3,387 LESCO, Inc. *................ 53,684 19,200 Stepan Co. (a)............... 481,152 278,400 Terra Industries, Inc. * (a)........................ 1,851,360 82,180 Westlake Chemical Corp. (a)........................ 2,225,434 -------------- 32,975,165 ------------- COMMERCIAL AIRCRAFT & COMPONENTS - 0.3% 230,121 BE Aerospace, Inc. * (a)..... 3,813,105 2 Ladish Co., Inc. *........... 35 -------------- 3,813,140 ------------- COMMUNICATIONS UTILITIES - 1.5% 27,300 Atlantic Tele-Network, Inc. ...................... 906,360 39,576 CT Communications, Inc. ..... 489,555 37,557 D&E Communications, Inc. .... 340,642 1,093,026 EarthLink, Inc. * (a)........ 11,695,378 31,480 Golden Telecom, Inc. (a)..... 993,824 19,500 Hector Communications Corp. ..................... 567,255 293,240 Valor Communications Group, Inc. (a)................... 3,996,861 -------------- 18,989,875 ------------- CONSTRUCTION & HOMEBUILDING - 2.6% 143,200 Brookfield Homes Corp. (a)... 7,951,896 590 Cavco Industries, Inc. *..... 21,405 346,300 Granite Construction, Inc. (a)........................ 13,242,512 5,830 Meadow Valley Corp. * (a).... 55,502 3,030 Orleans Homebuilders, Inc. ...................... 74,659 49,800 Sterling Construction Co., Inc. * (a)................. 1,289,820 62,349 Technical Olympic USA, Inc. (a)........................ 1,631,050 53,200 William Lyon Homes, Inc. * (a)........................ 8,256,640 -------------- 32,523,484 ------------- CONSTRUCTION MATERIALS - 0.8% 52,000 Ameron International Corp. (a)........................ 2,412,800 183,200 Compass Minerals International, Inc. (a).... 4,213,601 6,600 Continental Materials Corp. * (a)........................ 202,455 2,525 Devcon International Corp. *.......................... 25,957 12,120 Jarden Corp. * (a)........... 497,768 4,370 Oil-Dri Corp. of America..... 76,344 7,274 Patrick Industries, Inc. *... 77,832 55,437 Rock of Ages Corp. .......... 299,914
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, CONSTRUCTION MATERIALS continued 196,910 U.S. Concrete, Inc. * (a).... $ 1,518,176 4,802 United States Lime & Minerals, Inc. *........... 163,988 -------------- 9,488,835 ------------- CONSUMER DURABLES - 0.2% 137,360 Coachmen Industries, Inc. (a)........................ 1,578,267 84,584 Universal Electronics, Inc. * (a)........................ 1,462,457 -------------- 3,040,724 ------------- DRUGS & PHARMACEUTICALS - 2.4% 95,100 E-Z-EM, Inc. *............... 1,345,665 95,608 First Horizon Pharmaceutical Corp. * (a)................ 1,899,731 2 Immucor, Inc. *.............. 55 26,930 Inverness Medical Innovations, Inc. * (a).... 714,453 4,690 Natural Alternative International, Inc. *...... 32,549 127,260 Nature's Sunshine Products, Inc. (a)................... 2,957,522 5,391 Polydex Pharmaceuticals Ltd. *.......................... 28,842 194,249 United Therapeutics Corp. * (a)........................ 13,558,579 99,545 USANA Health Sciences, Inc. * (a)........................ 4,748,297 92,222 Ventana Medical Systems, Inc. * (a)...................... 3,510,892 257,400 Weider Nutrition International, Inc. *...... 1,361,646 -------------- 30,158,231 ------------- ELECTRIC UTILITIES - 2.1% 205,600 Avista Corp. (a)............. 3,988,640 148,449 CH Energy Group, Inc. ....... 7,048,359 457,530 Duquesne Light Holdings, Inc. (a)........................ 7,874,091 600 Florida Public Utilities Co. ....................... 9,528 4,000 Green Mountain Power Corp. .. 131,720 4,030 Maine & Maritimes Corp. ..... 79,391 137,800 UIL Holdings Corp. .......... 7,208,318 -------------- 26,340,047 ------------- FINANCIAL INVESTMENTS - 1.6% 17,340 Aaron Rents, Inc. (a)........ 366,741 36,431 California First National Bancorp.................... 473,603 100 Capital Southwest Corp. ..... 8,517 700 Cherokee, Inc. .............. 24,486 65,616 Electro Rent Corp. * (a)..... 825,449 39,279 ePlus, Inc. *................ 512,591 51,014 G-III Apparel Group Ltd. *... 563,705 192,846 Jackson Hewitt Tax Service, Inc. (a)................... 4,610,948 309,432 MCG Capital Corp. (a)........ 5,220,118 294,005 Price Communications Corp. * (a)........................ 4,836,382
Laudus Trust Semi-Annual Report 51 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, FINANCIAL INVESTMENTS continued 39,800 Universal Compression Holdings, Inc. * (a)....... $ 1,582,846 66,658 Willis Lease Finance Corp. * (a)........................ 665,913 -------------- 19,691,299 ------------- FOREST PRODUCTS & PAPER - 1.1% 2,050 Chesapeake Corp. ............ 37,700 67,800 CSS Industries, Inc. (a)..... 2,204,856 4,900 DSG International Ltd. *..... 29,988 4,610 Lydall, Inc. *............... 41,167 2,410 Nashua Corp. *............... 14,942 201,730 Universal Forest Products, Inc. (a)................... 11,563,163 -------------- 13,891,816 ------------- FURNITURE & HOUSEHOLD ITEMS - 2.5% 69,600 A.T. Cross Co., Class A * (a)........................ 333,384 38,429 Aldila, Inc. (a)............. 931,903 26,010 American Biltrite, Inc. *.... 321,224 16,100 American Locker Group, Inc. *.......................... 74,704 5,790 Atlantis Plastics, Inc., Class A (a)................ 57,842 103,716 Bassett Furniture Industries, Inc. (a)................... 1,931,192 164,299 Central Garden & Pet Co. * (a)........................ 7,434,529 3,197 Channell Commercial Corp. *.. 30,213 8,700 Chase Corp. ................. 126,933 12,200 Chromcraft Revington, Inc. *.......................... 165,676 59,900 Communications Systems, Inc. ...................... 673,875 25,914 Flexsteel Industries, Inc. ...................... 389,228 130,400 Genlyte Group, Inc. * (a).... 6,269,632 297,003 JAKKS Pacific, Inc. * (a).... 4,820,359 10,776 K2, Inc. * (a)............... 122,846 25,988 Kimball International, Inc., Class B.................... 314,195 1,690 Knape & Vogt Manufacturing Co. ....................... 22,139 1,500 La-Z-Boy, Inc. (a)........... 19,785 166,800 Movado Group, Inc. .......... 3,122,496 6,000 National Presto Industries, Inc. ...................... 256,860 965 Preformed Line Products Co. (a)........................ 45,548 2,500 Summa Industries (a)......... 18,875 1,650 Thomas & Betts Corp. *....... 56,777 130,710 West Pharmaceutical Services, Inc. (a)................... 3,878,166 -------------- 31,418,381 ------------- GAS & OTHER PUBLIC UTILITIES - 1.0% 35 American Ecology Corp. (a)... 687 1,375 Artesian Resources Corp., Class A.................... 41,360 11,280 California Water Service Group...................... 464,736 4,380 Chesapeake Utilities Corp. (a)........................ 153,957 26,400 Clean Harbors, Inc. * (a).... 896,280
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, GAS & OTHER PUBLIC UTILITIES continued 499 Delta Natural Gas Co., Inc. ...................... $ 13,303 2,500 RGC Resources, Inc. ......... 66,825 12,500 SJW Corp. ................... 603,500 344,600 South Jersey Industries, Inc. (a)........................ 10,041,644 690 Southwest Water Co. (a)...... 10,005 15,582 Waste Industries USA, Inc. (a)........................ 207,241 -------------- 12,499,538 ------------- GOVERNMENT AIRCRAFT & DEFENSE - 0.1% 3,440 Herley Industries * (a)...... 64,087 6 Lowrance Electronics, Inc. ...................... 152 46,980 Todd Shipyards Corp. ........ 897,319 -------------- 961,558 ------------- HEALTH CARE & HOSPITAL - 2.3% 201,140 Allied Healthcare International, Inc. *...... 1,136,441 14,141 Almost Family, Inc. *........ 229,084 47,400 American Shared Hospital Services................... 283,926 12,800 Chemed Corp. (a)............. 554,752 101,231 HealthTronics, Inc. * (a).... 1,008,261 297,043 Kindred Healthcare, Inc. * (a)........................ 8,851,882 138,582 Matria Healthcare, Inc. * (a)........................ 5,231,471 75,952 MedCath Corp. * (a).......... 1,803,860 6,110 MEDTOX Scientific, Inc. *.... 44,298 56,400 National Dentex Corp. * (a)........................ 1,161,840 10,959 National Healthcare Corp. ... 383,565 63,292 National Home Health Care Corp. (a).................. 716,465 97,255 Option Care, Inc. (a)........ 1,423,813 3,300 Pediatric Services of America, Inc. *............ 46,167 20,360 Pediatrix Medical Group, Inc. *.......................... 1,564,055 129,820 RehabCare Group, Inc. *...... 2,663,906 76,419 Res-Care, Inc. * (a)......... 1,176,088 200 SunLink Health Systems, Inc. *.......................... 1,738 -------------- 28,281,612 ------------- INFORMATION & SERVICES - 5.5% 2,560 Ablest, Inc. *............... 23,629 51,010 ABM Industries, Inc. (a)..... 1,061,518 3,388 Albany Molecular Research, Inc. *..................... 41,266 38,000 American Dental Partners, Inc. *..................... 1,288,960 185,050 American Retirement Corp. *.. 3,484,492 18,280 Angelica Corp. .............. 326,298 5,179 Capital Title Group, Inc. ... 38,325 155,840 Carriage Services, Inc. * (a)........................ 988,026 122,610 CDI Corp. (a)................ 3,621,899 28,340 Central Parking Corp. (a).... 423,683 7,305 Cornell Cos., Inc. * (a)..... 107,457
52 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, INFORMATION & SERVICES continued 35,910 Corrections Corp. of America * (a)...................... $ 1,425,627 80 CPI Corp. ................... 1,407 18 Discovery Partners International *............ 58 24,930 Ecology & Environment, Inc. ...................... 204,426 52,600 Exponent, Inc. * (a)......... 1,651,114 431 Forrester Research, Inc. * (a)........................ 8,973 97,510 Franklin Covey Co. *......... 696,221 26 Gevity HR, Inc. (a).......... 708 13,200 Hallwood Group, Inc. ........ 844,800 22,250 Healthcare Services Group, Inc. (a)................... 428,313 65,838 Horizon Health Corp. *....... 1,788,818 8,130 Hudson Highland Group, Inc. * (a)........................ 203,006 21,970 ICT Group, Inc. *............ 257,928 223,895 Kelly Services, Inc., Class A (a)........................ 6,864,621 143,100 Kendle International, Inc. * (a)........................ 4,026,834 118,120 Labor Ready, Inc. * (a)...... 3,029,778 60,520 Layne Christensen Co. * (a)........................ 1,425,246 4,800 Mac-Gray Corp. *............. 62,160 57,070 Macquarie Infrastructure Company Trust (a).......... 1,609,374 23,902 Metal Management, Inc. (a)... 605,916 64,790 Michael Baker Corp. *........ 1,687,780 93,620 Monro Muffler Brake, Inc. (a)........................ 2,459,397 824,508 MPS Group, Inc. * (a)........ 9,729,194 6,126 National Technical Systems, Inc. *..................... 30,446 307,911 NCO Group, Inc. * (a)........ 6,361,441 4,650 Nobel Learning Communities, Inc. *..................... 43,524 69,616 Opinion Research Corp. *..... 460,858 47,144 PAREXEL International Corp. *.......................... 947,123 91,523 RCM Technologies, Inc. *..... 550,053 11,160 Regis Corp. ................. 422,071 55,200 Schnitzer Steel Industries, Inc., Class A (a).......... 1,797,864 34,846 Security National Financial Corp., Class A *........... 108,371 4,170 Shaw Group, Inc. *........... 102,832 68,822 SOURCECORP, Inc. *........... 1,475,544 3,222 SRI/Surgical Express, Inc. *.......................... 20,363 135,073 Steiner Leisure Ltd. *....... 4,588,430 2,922 TALX Corp. (a)............... 95,812 860 Traffix, Inc. ............... 5,358 15,169 Vertrue, Inc. *.............. 551,393 7,280 Volt Information Sciences, Inc. * (a)................. 147,930 -------------- 68,126,665 -------------
SHARES VALUE ----------------------------------------------------------- INSTRUMENTS - 6.0% 78,652 Allied Healthcare Products, Inc. *..................... $ 419,215 400,861 American Medical Systems Holdings, Inc. * (a)....... 8,077,349 41,449 American Science & Engineering, Inc. * (a).... 2,718,640 28,469 Armor Holdings, Inc. * (a)... 1,224,452 7,330 ArthroCare Corp. * (a)....... 294,813 12,370 Atrion Corp. (a)............. 804,050 4,400 Badger Meter, Inc. .......... 173,096 56,233 Bio-Logic Systems Corp. *.... 339,085 382,540 Checkpoint Systems, Inc. * (a)........................ 9,073,848 2,299 CNS, Inc. (a)................ 59,935 1,500 Coherent, Inc. * (a)......... 43,920 82,930 Compex Technologies, Inc. *.......................... 358,258 334,211 CONMED Corp. * (a)........... 9,317,802 145,114 Datascope Corp. (a).......... 4,501,436 20,010 DJ Orthopedics, Inc. *....... 579,089 3,330 Escalon Medical Corp. * (a)........................ 20,480 129,720 Esterline Technologies Corp. * (a)...................... 4,915,091 11,990 Frequency Electronics, Inc. ...................... 130,691 239,700 Haemonetics Corp. *.......... 11,392,940 152,040 Invacare Corp. (a)........... 6,335,507 17,000 Iridex Corp. *............... 149,430 25,210 K-Tron International, Inc. *.......................... 852,854 25,868 Kewaunee Scientific Corp. ... 233,200 23,112 LeCroy Corp. *............... 343,213 1,700 Mesa Laboratories, Inc. ..... 21,675 66,972 Misonix, Inc. *.............. 481,529 33,776 Molecular Devices Corp. * (a)........................ 705,581 28,185 MTS Systems Corp. ........... 1,064,547 49,758 New Brunswick Scientific Co., Inc. *..................... 304,021 29,264 O.I. Corp. *................. 311,662 26,434 OYO Geospace Corp. *......... 523,658 64,037 Perceptron, Inc. *........... 410,253 20,966 Schmitt Industries, Inc. *... 144,225 27,300 Span-America Medical Systems, Inc. ...................... 278,324 300 Tech/Ops Sevcon, Inc. ....... 1,790 393,770 Thoratec Corp. * (a)......... 6,993,355 72,100 Viasys Healthcare, Inc. * (a)........................ 1,801,779 42,290 Vicon Industries, Inc. *..... 128,985 -------------- 75,529,778 ------------- INSURANCE - 6.1% 17,250 Ambassadors International, Inc. ...................... 241,674 4,430 American National Insurance Co. ....................... 527,702 11,203 American Physicians Capital, Inc. *..................... 550,403 76,900 American Safety Insurance Holdings Ltd. *............ 1,325,756 53,751 Argonaut Group, Inc. * (a)... 1,451,815 14,745 Ceres Group, Inc. * (a)...... 83,014 96,161 Commerce Group, Inc. (a)..... 5,579,261
Laudus Trust Semi-Annual Report 53 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, INSURANCE continued 1,600 Crawford & Co., Class B (a)........................ $ 12,528 238,750 Delphi Financial Group, Inc., Class A.................... 11,173,499 42,500 FBL Financial Group, Inc., Class A (a)................ 1,272,875 83,400 FPIC Insurance Group, Inc. * (a)........................ 3,001,566 84,200 Great American Financial..... 1,684,000 Resources, Inc. 417,060 Horace Mann Educators Corp. (a)........................ 8,249,447 28,738 Independence Holding Co. (a)........................ 523,032 38,701 Kansas City Life Insurance Co. (a).................... 1,980,330 341,257 Max Re Capital Ltd. ......... 8,459,760 2,700 Merchants Group, Inc. ....... 72,090 46,686 Midland Co. (a).............. 1,682,097 530 National Financial Partners Corp. ..................... 23,924 24,363 National Western Life Insurance Co., Class A *... 5,146,684 26,930 NYMAGIC, Inc. ............... 655,207 3,950 Odyssey Re Holdings Corp. (a)........................ 100,883 57,171 Ohio Casualty Corp. ......... 1,550,478 38,217 Presidential Life Corp. (a)........................ 687,906 66,580 PXRE Group Ltd. ............. 896,167 41,410 RTW, Inc. *.................. 472,074 70,190 Scottish Re Group Ltd. (a)... 1,673,330 11,400 SCPIE Holdings, Inc. * (a)... 163,020 95,013 Selective Insurance Group, Inc. (a)................... 4,646,136 6,383 State Auto Financial Corp. ..................... 201,958 124,540 Stewart Information Services Corp. (a).................. 6,376,448 68,886 UICI (a)..................... 2,479,896 50,686 Unico American Corp. *....... 464,791 18,581 United America Indemnity Ltd., Class A *............ 340,961 47,178 United Fire & Casualty Co. (a)........................ 2,128,200 -------------- 75,878,912 ------------- IT HARDWARE - 6.2% 300 Advanced Power Technology, Inc. *..................... 2,595 1,500 American Technical Ceramics Corp. *.................... 16,275 29,100 Amtech Systems, Inc. * (a)... 167,325 652,924 Arris Group, Inc. * (a)...... 7,743,679 119,320 ATMI, Inc. * (a)............. 3,698,920 6,690 Avocent Corp. * (a).......... 211,672 1,650 Blonder Tongue Laboratories, Inc. *..................... 3,564 810 BTU International, Inc. *.... 7,363 361,944 Cirrus Logic, Inc. *......... 2,747,155 63,985 Cobra Electronics Corp. *.... 532,355 9,678 Comtech Telecommunications Corp. * (a)................ 401,347
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, IT HARDWARE continued 38,201 Diodes, Inc. * (a)........... $ 1,385,168 138,648 DSP Group, Inc. *............ 3,557,708 131,819 EMS Technologies, Inc. *..... 2,157,877 85,870 Emulex Corp. *............... 1,735,433 11,000 Espey Manufacturing & Electronics Corp. ......... 384,725 25,252 Giga-tronics, Inc. * (a)..... 106,311 47,700 Globecomm Systems, Inc. *.... 374,445 228,940 Imation Corp. ............... 9,814,657 820 Innovex, Inc. * (a).......... 3,485 72,308 IXYS Corp. *................. 763,572 34,300 Merrimac Industries, Inc. *.......................... 313,674 470,648 Microsemi Corp. * (a)........ 12,020,349 8,640 MKS Instruments, Inc. * (a)........................ 148,867 20,719 Netlogic Microsystems, Inc. * (a)................. 447,323 1,337,190 ON Semiconductor Corp. * (a)........................ 6,913,272 11,000 Optical Cable Corp. *........ 61,270 5,856 Orbit International Corp. *.......................... 57,801 15,413 Park Electrochemical Corp. (a)........................ 410,756 14,190 Peak International Ltd. *.... 42,996 382,632 Photronics, Inc. * (a)....... 7,423,061 60,957 Semitool, Inc. * (a)......... 484,608 128,966 SonicWALL, Inc. * (a)........ 818,934 3,685 Sparton Corp. ............... 36,850 94,256 Spectrum Control, Inc. *..... 698,437 47,465 Stratos International, Inc. *.......................... 277,196 7,175 Supertex, Inc. * (a)......... 215,178 384,757 Symmetricom, Inc. * (a)...... 2,978,019 52,150 Teledyne Technologies, Inc. *.......................... 1,797,611 219,828 Trident Microsystems, Inc. * (a)................. 6,992,729 489 Woodhead Industries, Inc. (a)........................ 6,714 22,277 Zoom Technologies, Inc. * (a)........................ 47,896 -------------- 78,009,172 ------------- LAND & WATER TRANSPORTATION - 1.1% 5,270 B & H Ocean Carriers Ltd. * (a)........................ 110,143 29,492 Celadon Group, Inc. *........ 657,672 38 Covenant Transport, Inc., Class A *.................. 460 7,800 Hub Group, Inc., Class A * (a)........................ 286,338 10,725 Isramco, Inc. * (a).......... 153,046 3,530 Kirby Corp. * (a)............ 174,488 4,400 Maritrans, Inc. ............. 140,800 7,537 Marten Transport Ltd. *...... 190,686 161,800 Overseas Shipholding Group, Inc. (a)................... 9,437,793 7,945 Transport Corp. of America, Inc. *..................... 59,588 77,669 USA Truck, Inc. * (a)........ 1,965,025 -------------- 13,176,039 ------------- MAINFRAME & MINICOMPUTERS - 0.0% 10 Neoware Systems, Inc. *...... 167 -------------
54 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued METAL PRODUCTS & MACHINERY - 5.5% 54,816 Allied Motion Technologies, Inc. *..................... $ 216,523 19,644 Astec Industries, Inc. * (a)........................ 557,693 69,900 Blount International, Inc. *.......................... 1,233,036 51,296 Bonso Electronics International, Inc. ....... 254,428 8,016 Cascade Financial Corp. ..... 146,292 6,600 Chicago Rivet & Machine Co. ....................... 160,380 900 Eastern Co. ................. 19,575 5,318 EnerSys * (a)................ 80,674 213,990 EnPro Industries, Inc. * (a)........................ 7,209,323 69,800 ESCO Technologies, Inc. *.... 3,494,886 68,451 Evans & Sutherland Computer Corp. * (a)................ 407,968 67,799 Gehl Co. * (a)............... 1,889,558 54,400 Gerber Scientific, Inc. *.... 426,496 500 Greenbrier Cos., Inc. (a).... 16,620 85,092 Hardinge, Inc. .............. 1,249,789 14,000 Hawk Corp., Class A *........ 175,000 37,100 International Aluminum Corp. ..................... 1,376,410 116,040 JLG Industries, Inc. ........ 4,245,904 225,600 Kennametal, Inc. ............ 11,063,424 1,200 L.S. Starrett Co., Class A... 21,972 509,700 Lennox International, Inc. (a)........................ 13,970,878 8,961 NN, Inc. .................... 107,442 800 Peerless Manufacturing Co. *.......................... 13,980 9,388 Q.E.P. Co., Inc. *........... 107,493 239,960 Regal-Beloit Corp. (a)....... 7,784,302 2 Rofin-Sinar Technologies, Inc. * (a)................. 76 35,600 SL Industries, Inc. * (a).... 508,012 84,780 Standex International Corp. ..................... 2,232,257 71,080 Tecumseh Products Co., Class B.......................... 1,463,466 31,500 Twin Disc, Inc. ............. 1,244,568 3,500 Water Pik Technologies, Inc. *.......................... 71,050 84,574 Woodward Governor Co. ....... 7,193,019 -------------- 68,942,494 ------------- MISCELLANEOUS FINANCE - 1.0% 98,455 Affiliated Managers Group, Inc. * (a)................. 7,130,111 89,062 Cohen & Steers, Inc. (a)..... 1,781,240 45,300 Stifel Financial Corp. *..... 1,626,270 123,019 SWS Group, Inc. ............. 2,017,512 -------------- 12,555,133 ------------- OIL & COAL RESOURCES - 2.9% 57,046 Atlas America, Inc. *........ 2,786,697 115,758 ATP Oil & Gas Corp. * (a).... 3,801,493 3,860 Barnwell Industries, Inc. (a)........................ 246,963 109,800 Berry Petroleum Co., Class A (a)........................ 7,322,561 40,070 Callon Petroleum Co. * (a)... 838,665
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, OIL & COAL RESOURCES continued 31,226 Carrizo Oil & Gas, Inc. * (a)........................ $ 914,922 58,913 Castle Energy Corp. ......... 1,221,856 3,400 Eastern American Natural Gas Trust...................... 106,250 48,796 Edge Petroleum Corp. * (a)... 1,287,726 229,500 Energy Partners Ltd. *....... 7,164,990 41,030 Forest Oil Corp. *........... 2,137,663 6,600 Prime Energy, Inc. *......... 323,466 134,734 Resource America, Inc., Class A (a)...................... 2,388,834 3,700 Southwestern Energy Co. * (a)........................ 271,580 2,940 Stone Energy Corp. * (a)..... 179,458 114,800 Swift Energy Co. * (a)....... 5,252,100 1,644 Whiting Petroleum Corp. * (a)........................ 72,073 -------------- 36,317,297 ------------- OIL DISTRIBUTION - 1.3% 9,300 Adams Resources & Energy, Inc. ...................... 203,670 358,000 Frontier Oil Corp. (a)....... 15,877,300 -------------- 16,080,970 ------------- OIL DRILLING & SERVICES - 2.3% 54,488 Dawson Geophysical Co. * (a)........................ 1,648,262 68,546 Lufkin Industries, Inc. (a)........................ 2,985,178 20,000 McDermott International, Inc. *.......................... 732,200 153,900 NATCO Group, Inc., Class A * (a)........................ 3,896,748 30,500 Oceaneering International, Inc. *..................... 1,629,005 109,300 Oil States International, Inc. *..................... 3,968,683 17,685 TETRA Technologies, Inc. * (a)........................ 552,126 345,100 Veritas DGC, Inc. * (a)...... 12,637,562 34,100 W-H Energy Services, Inc. *.......................... 1,105,522 -------------- 29,155,286 ------------- PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 2.0% 330 Baldwin Technology Co., Inc., Class A *.................. 1,422 6,469 Dataram Corp. ............... 43,595 3,572 Delphax Technologies, Inc. * (a)........................ 10,537 46,100 Global Payment Technologies, Inc. *..................... 165,960 24,300 Hypercom Corp. * (a)......... 158,436 44 Interphase Corp. *........... 200 2,000 Key Tronic, Corp. *.......... 8,240 230,453 M-Systems Flash Disk Pioneers Ltd. * (a)................. 6,895,154 43,800 PAR Technology Corp. * (a)... 1,007,400 67,977 Printronix, Inc. ............ 1,063,840 253,106 SafeNet, Inc. * (a).......... 9,190,279
Laudus Trust Semi-Annual Report 55 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, PHOTOOPTICAL, MICROS & OFFICE MACHINERY continued 127,320 UNOVA, Inc. * (a)............ $ 4,453,654 180,235 VASCO Data Security International, Inc. * (a)........................ 1,634,731 -------------- 24,633,448 ------------- PUBLISHING, BROADCASTING & CINEMA - 0.4% 11,275 Emak Worldwide, Inc. * (a)... 85,577 29,603 Outlook Group Corp. ......... 470,688 10,109 Regent Communications, Inc. * (a)........................ 53,173 99,406 Scholastic Corp. * (a)....... 3,674,046 17,915 Tufco Technologies, Inc. *... 112,865 20 World Wrestling Entertainment, Inc. (a).... 260 -------------- 4,396,609 ------------- REAL ESTATE DEVELOPMENT - 1.2% 137,819 Alderwoods Group, Inc. *..... 2,257,475 34,825 AMREP Corp. (a).............. 931,569 29,009 Avatar Holdings, Inc. * (a)........................ 1,718,493 165,620 Bluegreen Corp. * (a)........ 2,923,193 28,300 ILX Resorts, Inc. (a)........ 253,144 17,100 J.W. Mays, Inc. *............ 265,392 4,236 Patriot Transportation Holding, Inc. *............ 291,013 938,605 Stewart Enterprises, Inc., Class A (a)................ 6,222,952 24,956 Tarragon Corp. * (a)......... 463,183 6,190 United Capital Corp. *....... 145,217 -------------- 15,471,631 ------------- REAL ESTATE INVESTMENT TRUSTS - 2.4% 124,080 Ashford Hospitality Trust.... 1,335,101 46,000 Bedford Property Investors, Inc. (a)................... 1,096,640 59,370 Boykin Lodging Co. *......... 737,375 23,440 Colonial Properties Trust (a)........................ 1,042,611 34,900 Commercial NET Lease Realty.. 698,000 6,300 Correctional Properties Trust...................... 185,283 740 Eagle Hospitality Properties Trust, Inc. ............... 7,385 440,630 ECC Capital Corp. (a)........ 1,436,454 65,790 FelCor Lodging Trust, Inc. *.......................... 996,719 4,690 Five Star Quality Care, Inc. * (a)...................... 32,361 2,360 Gladstone Commercial Corp. .. 39,412 73,020 Highland Hospitality Corp. (a)........................ 749,185 8,080 Investors Real Estate Trust (a)........................ 76,760 185,000 LTC Properties, Inc. ........ 3,922,000 23,360 Maguire Properties, Inc. (a)........................ 701,968 103,690 Mission West Properties, Inc. (a)........................ 1,041,048 129,600 National Health Investors, Inc. ...................... 3,578,256 10,200 National Health Realty, Inc. ...................... 197,982 16,900 One Liberty Properties, Inc. (a)........................ 336,479
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, REAL ESTATE INVESTMENT TRUSTS continued 197 Pennsylvania Real Estate Investment Trust (a)....... $ 8,309 1,000 Presidential Realty Corp., Class B.................... 7,990 7,050 PS Business Parks, Inc. ..... 322,890 274,625 Strategic Hotel Capital, Inc. (a)........................ 5,014,653 267,311 Sunstone Hotel Investors, Inc. (a)................... 6,519,715 2,600 Windrose Medical Properties Trust...................... 39,728 3,807 Winston Hotels, Inc. (a)..... 38,070 -------------- 30,162,374 ------------- RESTAURANTS, HOTELS & THEATERS - 2.3% 38,200 Ark Restaurants Corp. ....... 1,193,196 10,604 Benihana, Inc. *............. 187,797 5,300 CBRL Group, Inc. ............ 178,398 4,090 Champps Entertainment, Inc. * (a)........................ 28,303 74,808 Checkers Drive-In Restaurants, Inc. *........ 1,143,066 206 Churchill Downs, Inc. ....... 7,276 95,860 Dave & Buster's, Inc. * (a)........................ 1,279,731 1,014,040 Denny's Corp. * (a).......... 4,208,266 12,000 Dover Motorsports, Inc. (a)........................ 82,080 138,154 Famous Dave's of America, Inc. * (a)................. 1,646,796 800 Fox & Hound Restaurant Group *.......................... 8,144 26,500 Frisch's Restaurants, Inc. ...................... 640,240 119,010 Interstate Hotels & Resorts, Inc. *..................... 553,397 127,342 Isle of Capri Casinos, Inc. * (a)........................ 2,722,572 24,440 J. Alexander's Corp. *....... 208,473 14,190 Jack in the Box, Inc. * (a)........................ 424,423 210,900 Lone Star Steakhouse & Saloon, Inc. (a)........... 5,483,399 13,950 Marcus Corp. (a)............. 279,558 4,833 Max & Erma's Restaurants, Inc. *..................... 64,037 11,710 Monarch Casino & Resort, Inc. * (a)...................... 198,953 33,977 Nathan's Famous, Inc. *...... 305,793 31,438 Papa John's International, Inc. *..................... 1,575,673 570 Red Lion Hotels Corp. *...... 3,990 24,004 Rubio's Restaurants, Inc. *.......................... 222,997 75,637 Ryan's Restaurant Group, Inc. * (a)...................... 882,684 42,752 Sands Regent * (a)........... 400,163 7,723 Star Buffet, Inc. ........... 59,467 147,400 Vail Resorts, Inc. * (a)..... 4,237,750 -------------- 28,226,622 -------------
56 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued RETAIL - 6.7% 10 1-800 CONTACTS, Inc. * (a)... $ 188 256,396 1-800-FLOWERS.COM, Inc., Class A * (a).............. 1,797,336 350 Big Dog Holdings, Inc. *..... 2,492 734,730 Big Lots, Inc. * (a)......... 8,074,683 15,070 Blair Corp. (a).............. 555,932 32,410 Books-A-Million, Inc. ....... 291,690 190,580 Brown Shoe Co., Inc. ........ 6,289,140 24,458 Building Materials Holding Corp. ..................... 2,279,241 193,300 Burlington Coat Factory Warehouse Corp. ........... 7,353,132 885,605 Charming Shoppes, Inc. * (a)........................ 9,449,405 38,049 Cost-U-Less, Inc. *.......... 234,005 2,903 Dress Barn, Inc. * (a)....... 66,072 107,491 EZCORP, Inc., Class A * (a)........................ 1,726,305 1,740 Factory Card & Party Outlet Corp. *.................... 12,615 52,461 Finlay Enterprises, Inc. * (a)........................ 474,772 3,440 Foodarama Supermarkets, Inc. *.......................... 123,410 5,200 GameStop Corp., Class A * (a)........................ 163,644 29,740 Gottschalks, Inc. * (a)...... 271,229 18,820 Group 1 Automotive, Inc. *... 519,432 227,609 GSI Commerce, Inc. * (a)..... 4,529,419 62,000 Hastings Entertainment, Inc. *.......................... 360,840 160,400 Longs Drug Stores Corp. (a)........................ 6,879,556 153,526 Restoration Hardware, Inc. * (a)........................ 970,284 150,480 Retail Ventures, Inc. * (a)........................ 1,652,270 47,400 REX Stores Corp. * (a)....... 649,380 174,900 Ruddick Corp. (a)............ 4,031,445 6,000 Rush Enterprises, Inc., Class A *........................ 91,680 12,100 Rush Enterprises, Inc., Class B * (a).................... 181,621 421 Shoe Carnival, Inc. * (a).... 6,698 53,850 Sport Chalet, Inc., Class A *.......................... 578,888 8,975 Sport Chalet, Inc., Class B *.......................... 119,727 258,665 Stage Store, Inc. (a)........ 6,950,329 121,024 Stein Mart, Inc. ............ 2,456,787 7,200 Syms Corp. .................. 96,408 29,658 Systemax, Inc. * (a)......... 208,792 8,282 TBC Corp. *.................. 285,646 63,768 The Bon-Ton Stores, Inc. (a)........................ 1,238,375 180,390 Trans World Entertainment Corp. * (a)................ 1,423,277 2,160 United Retail Group, Inc. *.......................... 16,502 17,092 Village Super Market, Inc., Class A.................... 890,493 33,900 Weis Markets, Inc. (a)....... 1,356,339 337,700 Zale Corp. * (a)............. 9,178,686 -------------- 83,838,165 -------------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued SOAPS & COSMETICS - 0.2% 39,200 Cascade International, Inc. * (a) (b).................... -- 35,810 CPAC, Inc. .................. $ 179,050 84,383 Parlux Fragrances, Inc. * (a)........................ 2,458,921 -------------- 2,637,971 ------------- SOFTWARE - 7.7% 271,375 Allscripts Healthcare Solution, Inc. * (a)....... 4,890,178 245,300 American Software, Inc., Class A.................... 1,373,680 4,332 Ansoft Corp. *............... 126,061 172,279 ANSYS, Inc. * (a)............ 6,631,018 168,550 Black Box Corp. (a).......... 7,072,357 33,473 Blackbaud, Inc. (a).......... 474,312 98,252 CBIZ, Inc. *................. 501,085 652,600 CIBER, Inc. * (a)............ 4,848,818 50,838 Computer Task Group, Inc. *.......................... 188,101 130,080 Covansys Corp. * (a)......... 2,076,077 19,592 CSP, Inc. *.................. 139,887 90,328 Dendrite International, Inc. * (a)...................... 1,814,690 2,410 Digital Insight Corp. * (a)........................ 62,805 111,194 Edgewater Technology, Inc. *.......................... 530,395 9,838 eFunds Corp. *............... 185,250 5,808 EuroWeb International Corp. *.......................... 20,386 7,050 First Consulting Group, Inc. *.......................... 40,890 2,042 IDX Systems Corp. * (a)...... 88,174 13,080 Inforte Corp. ............... 54,805 5 Innotrac Corp. * (a)......... 42 223,215 Internet Security Systems, Inc. * (a)................. 5,359,392 65,776 Intrado, Inc. * (a).......... 1,185,941 104,760 John H. Harland Co. (a)...... 4,651,344 120,853 Keynote Systems, Inc. * (a)........................ 1,568,672 75,225 Lightbridge, Inc. *.......... 607,818 45,439 Manatron, Inc. *............. 368,056 71,906 ManTech International Corp., Class A * (a).............. 1,899,037 1,979 MapInfo Corp. * (a).......... 24,243 22,900 Merge Technologies, Inc. *... 391,361 15,394 Micros Systems, Inc. *....... 673,488 80,470 Moldflow Corp. *............. 1,281,082 97,797 NetManage, Inc. *............ 491,919 4,571 NetScout Systems, Inc. * (a)........................ 24,821 26,832 NWH, Inc. ................... 385,039 1,604 Omtool Ltd. *................ 13,955 2,560 Pacific Internet Ltd. *...... 17,613 38,640 PDF Solutions, Inc. * (a).... 641,424 186,748 Pegasus Solutions, Inc. * (a)........................ 1,676,997 715,100 Perot Systems Corp., Class A * (a)...................... 10,118,664 62,230 Pervasive Software, Inc. * (a)........................ 261,366 77,684 Phoenix Technologies Ltd. * (a)........................ 584,961 51,931 Quality Systems, Inc. (a).... 3,587,913 88,753 Radiant Systems, Inc. *...... 915,931
Laudus Trust Semi-Annual Report 57 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, SOFTWARE continued 14,791 Redback Networks, Inc. * (a)........................ $ 146,727 25,454 ScanSoft, Inc. * (a)......... 135,670 1,990 Scientific Learning Corp. *.......................... 10,448 203,935 Source Interlink Cos., Inc. * (a)........................ 2,255,521 72,533 SPSS, Inc. *................. 1,740,792 24,770 Sybase, Inc. * (a)........... 580,113 306,831 Sykes Enterprises, Inc. * (a)........................ 3,651,289 186,860 Syniverse Holdings, Inc. * (a)........................ 2,877,644 86,138 TechTeam Global, Inc. * (a)........................ 1,040,547 128,681 THQ, Inc. * (a).............. 2,743,479 170,900 Tier Technologies, Inc., Class B *.................. 1,478,285 2,230 Tripos, Inc. *............... 9,366 460,294 TriZetto Group, Inc. * (a)... 6,499,350 51,100 TSR, Inc. ................... 263,165 1,300 Tyler Technologies, Inc. * (a)........................ 10,764 36,472 Ulticom, Inc. *.............. 402,286 330 Websidestory, Inc. * (a)..... 5,848 206,403 Witness Systems, Inc. * (a)........................ 4,311,759 -------------- 96,013,101 ------------- TEXTILES & APPAREL - 1.5% 19,150 Albany International Corp., Class A.................... 706,061 2,070 Ashworth, Inc. *............. 14,138 15,210 Bakers Footwear Group, Inc. * (a)........................ 228,150 38,280 Culp, Inc. * (a)............. 179,150 12,900 Cutter & Buck, Inc. ......... 158,670 710 Decorator Industries, Inc. (a)........................ 6,227 40,070 Haggar Corp. ................ 1,139,190 68,352 Hampshire Group Ltd. *....... 1,613,107 600 Hartmarx Corp. * (a)......... 3,930 19,500 Jaclyn, Inc. *............... 150,930 24,400 McRae Industries, Inc., Class A.......................... 304,756 235,900 Phillips-Van Heusen Corp. ... 7,317,618 16,240 Stride Rite Corp. (a)........ 208,197 45,616 The Gymboree Corp. *......... 622,202 326,000 Tommy Hilfiger Corp. *....... 5,656,100 1,673 Weyco Group, Inc. (a)........ 32,624 -------------- 18,341,050 ------------- WHOLESALE - 2.7% 36,512 All American Semiconductor, Inc. *..................... 166,130 6,000 Anixter International * (a)........................ 241,980 26,037 Applied Industrial Technologies, Inc. ........ 934,208 21,018 Aristotle Corp. *............ 152,801 408,600 Aviall, Inc. * (a)........... 13,802,507
SHARES OR PRINCIPAL VALUE ----------------------------------------------------------- COMMON STOCK, WHOLESALE continued 16,328 Bell Microproducts, Inc. * (a)........................ $ 163,770 24,200 BlueLinx Holdings, Inc. ..... 325,248 28,330 Coast Distribution System, Inc. ...................... 168,564 47,150 Delta Apparel, Inc. ......... 674,717 139,860 Department 56, Inc. * (a).... 1,748,250 3,193 DXP Enterprises, Inc. * (a)........................ 71,427 8,200 First Aviation Services, Inc. *.......................... 32,800 48,445 GTSI Corp. * (a)............. 356,071 39,425 Handleman Co. (a)............ 497,938 104,600 IKON Office Solutions, Inc. (a)........................ 1,043,908 97,800 Industrial Distribution Group, Inc. *.............. 901,716 129,540 Interline Brands, Inc. *..... 2,721,635 1,300 Keystone Automotive Industries, Inc. *......... 37,453 17,580 Lazare Kaplan International, Inc. *..................... 173,339 47,620 NACCO Industries, Inc., Class A (a)...................... 5,450,108 9,350 P & F Industries, Inc. *..... 141,279 91,979 Pomeroy IT Solutions, Inc. * (a)........................ 1,044,881 13,484 Spartan Stores, Inc. *....... 138,885 28,671 TESSCO Technologies, Inc. *.. 375,017 13,600 Valley National Gases, Inc. ...................... 224,128 41,234 Ventiv Health, Inc. * (a).... 1,080,743 3,300 Watsco, Inc., Class B........ 173,580 16,680 WESCO International, Inc. * (a)........................ 564,952 -------------- 33,408,035 ------------- TOTAL COMMON STOCK (COST $943,601,859).............. 1,246,015,539 ------------- REPURCHASE AGREEMENT - 0.4% $ 5,612,000 State Street Bank dated 9/30/05, due 10/3/05 at 2.75% with a maturity value of $5,613,286 (fully collateralized by Federal Home Loan Bank Securities)................ 5,612,000 ------------- TOTAL REPURCHASE AGREEMENT (COST $5,612,000).......... 5,612,000 -------------
58 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Small Capitalization Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING - 8.4% 104,837,394 State Street Navigator Securities Lending Prime Portfolio.................. $ 104,837,394 ------------- TOTAL SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (COST $104,837,394).............. 104,837,394 ------------- TOTAL INVESTMENTS (COST $1,054,051,253) (C) - 108.6%..................... 1,356,464,933 NET OTHER ASSETS (LIABILITIES) - (8.6)%..... (107,931,163) -------------- NET ASSETS - 100.0%.......... $1,248,533,770 ==============
--------------- * Non-income producing security. (a) All or a portion of this security was on loan as of September 30, 2005. (b) Bankrupt security/delisted; fair-valued by Management. (c) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.................. $335,131,750 Unrealized depreciation.................. (32,718,070) ------------ Net unrealized appreciation.............. $302,413,680 ============
Laudus Trust Semi-Annual Report 59 See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 96.2% AUSTRALIA - 4.7% Agriculture, Food & Beverage - 0.1% 2,074 ABB Grain Ltd. ................... $ 10,752 10,485 Futuris Corp., Ltd. .............. 16,868 4,890 Ridley Corp., Ltd. ............... 5,219 4,427 Timbercorp Ltd. .................. 7,290 ----------- 40,129 ----------- Banks & Credit Institutions - 2.0% 1,822 Adelaide Bank Ltd. ............... 17,947 11,310 Australia & New Zealand Banking Group Ltd. ..................... 206,945 7,255 Commonwealth Bank of Australia.... 212,454 105 Macquarie Bank Ltd. .............. 6,032 741 National Australia Bank Ltd. ..... 18,671 10,441 Westpac Banking Corp. ............ 167,960 ----------- 630,009 ----------- Basic Minerals & Metals - 0.8% 5,057 BHP Billiton Ltd. ................ 85,783 5,698 Downer EDI Ltd. .................. 26,239 3,783 GRD NL............................ 8,104 1,377 Iluka Resources Ltd. ............. 9,207 7,999 OneSteel Ltd. .................... 23,235 1,278 Rio Tinto Ltd. ................... 57,623 16,365 Smorgon Steel Group Ltd. ......... 20,649 2,727 Straits Resources Ltd. ........... 5,801 4,188 Ticor Ltd. ....................... 5,907 ----------- 242,548 ----------- Beer, Liquor & Tobacco - 0.1% 4,602 Lion Nathan Ltd. ................. 29,437 ----------- Cellular & Wireless - 0.3% 30,222 Telstra Corp., Ltd. .............. 93,778 ----------- Construction & Homebuilding - 0.0% 4,534 Sunland Group Ltd. ............... 5,392 ----------- Construction Materials - 0.0% 1,453 Adelaide Brighton Ltd. ........... 2,548 ----------- Forest Products & Paper - 0.1% 7,588 Amcor Ltd. ....................... 38,818 ----------- Information & Services - 0.0% 3,618 AWB Ltd. ......................... 14,095 11 Campbell Brothers Ltd. ........... 83 ----------- 14,178 ----------- Instruments - 0.1% 3,157 Ansell Ltd. ...................... 27,150 ----------- Insurance - 0.6% 16,343 Insurance Australia Group Ltd. ... 68,031 7,916 Promina Group Ltd. ............... 30,176 5,550 SunCorp.-Metway Ltd. ............. 83,399 ----------- 181,606 ----------- Oil & Coal Resources - 0.3% 9,112 Oil Search Ltd. .................. 26,885 5,958 Santos Ltd. ...................... 56,825 ----------- 83,710 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, AUSTRALIA continued Publishing, Broadcasting & Cinema - 0.1% 8,242 Austereo Group Ltd. .............. $ 10,399 450 John Fairfax Holdings Ltd. ....... 1,561 4,248 Village Roadshow Ltd. *........... 9,263 ----------- 21,223 ----------- Real Estate Development - 0.0% 624 Lend Lease Corp., Ltd. ........... 6,660 ----------- Restaurants, Hotels & Theaters - 0.0% 2,575 Amalgamated Holdings Ltd. ........ 8,834 ----------- Retail - 0.1% 4,870 Mayne Group Ltd. ................. 19,975 ----------- Wholesale - 0.1% 29 Australian Pharmaceutical Industries Ltd. ................ 68 1,628 Sims Group Ltd. .................. 23,707 ----------- 23,775 ----------- 1,469,770 ----------- AUSTRIA - 1.0% Basic Minerals & Metals - 0.3% 900 voestalpine AG.................... 79,147 ----------- Oil Distribution - 0.7% 4,002 OMV AG............................ 237,624 ----------- 316,771 ----------- BELGIUM - 1.8% Banks & Credit Institutions - 1.3% 12,600 Fortis NPV........................ 364,153 1,200 Fortis............................ 34,797 ----------- 398,950 ----------- Financial Investments - 0.2% 600 Almancora Comm. Va................ 59,304 ----------- Retail - 0.3% 1,600 Delhaize Group.................... 94,637 ----------- 552,891 ----------- DENMARK - 0.7% Agriculture, Food & Beverage - 0.1% 255 Danisco A/S....................... 17,189 ----------- Communications Utilities - 0.0% 263 TDC A/S........................... 14,149 ----------- Land & Water Transportation - 0.6% 18 A P Moller -- Maersk A/S.......... 183,819 ----------- 215,157 ----------- FINLAND - 1.7% Airlines - 0.0% 1,001 Finnair Oyj....................... 13,028 ----------- Basic Minerals & Metals - 0.1% 2,034 Rautaruukki Oyj................... 45,683 ----------- Cellular & Wireless - 0.0% 430 Elisa Corp. ...................... 7,431 -----------
60 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, FINLAND continued Chemicals & Rubber - 0.1% 3,000 Kemira Oyj........................ $ 42,468 ----------- Electric Utilities - 0.3% 4,878 Fortum Oyj........................ 97,894 ----------- IT Hardware - 1.2% 1,600 Elcoteq Network Corp., Class A.... 35,705 17,769 Nokia Oyj......................... 297,663 ----------- 333,368 ----------- 539,872 ----------- FRANCE - 8.4% Autos - 0.6% 2,876 PSA Peugeot Citroen............... 195,270 ----------- Banks & Credit Institutions - 2.6% 5,800 BNP Paribas....................... 440,847 30 Natexis Banques Populaires........ 4,524 3,200 Societe Generale.................. 365,126 ----------- 810,497 ----------- Basic Minerals & Metals - 0.0% 280 Nexans SA......................... 12,938 ----------- Construction & Homebuilding - 0.6% 4,000 Bouygues SA....................... 185,880 ----------- Construction Materials - 0.5% 2,450 Compagnie de Saint-Gobain......... 140,908 ----------- Drugs & Pharmaceuticals - 0.3% 1,200 Sanofi-Aventis.................... 99,141 ----------- Financial Investments - 0.2% 270 Societe Fonciere Financiere et de Participations (FFP)............ 62,296 ----------- Instruments - 0.2% 600 Bacou-Dalloz...................... 58,295 ----------- Insurance - 0.3% 1,500 CNP Assurances.................... 100,583 ----------- Integrated Oil Cos. - 1.2% 1,320 Total SA.......................... 360,238 ----------- IT Hardware - 0.1% 1,285 StMicroelectronics NV *........... 22,097 ----------- Metal Products & Machinery - 0.0% 216 Valeo SA.......................... 8,976 ----------- Publishing, Broadcasting & Cinema - 1.2% 11,000 Vivendi Universal SA.............. 359,022 ----------- Restaurants, Hotels & Theaters - 0.0% 390 Sodexho Alliance SA............... 14,721 ----------- Retail - 0.1% 526 Rallye SA......................... 24,854 ----------- Soaps & Cosmetics - 0.4% 1,500 Christian Dior SA................. 123,746 ----------- Wholesale - 0.1% 361 Casino Guichard-Perrachon SA...... 25,595 ----------- 2,605,057 -----------
SHARES VALUE ----------------------------------------------------------- GERMANY - 6.7% Autos - 0.1% 506 DaimlerChrysler AG................ $ 26,846 ----------- Banks & Credit Institutions - 0.1% 276 Allianz AG........................ 37,280 ----------- Cellular & Wireless - 1.1% 19,600 Deutsche Telekom AG............... 356,599 ----------- Chemicals & Rubber - 2.4% 5,000 BASF AG........................... 376,134 9,200 Bayer AG.......................... 338,083 ----------- 714,217 ----------- Drugs & Pharmaceuticals - 0.6% 2,667 Degussa AG........................ 117,750 1,000 Merck KGaA........................ 83,999 ----------- 201,749 ----------- Electric Utilities - 1.2% 3,900 E.ON AG........................... 358,998 ----------- Health Care & Hospital - 0.4% 1,200 Fresenius Medical Care AG......... 109,307 ----------- Instruments - 0.2% 600 Fresenius AG...................... 76,573 ----------- IT Hardware - 0.2% 800 Siemens AG........................ 61,672 ----------- Miscellaneous Finance - 0.4% 1,400 Deutsche Bank AG.................. 131,142 ----------- 2,074,383 ----------- GREECE - 0.1% Banks & Credit Institutions - 0.1% 160 Bank of Greece.................... 17,737 ----------- HONG KONG - 1.6% Airlines - 0.1% 13,000 Cathay Pacific Airways Ltd. ...... 23,127 ----------- Cellular & Wireless - 0.0% 3,000 SmarTone Telecommunications Holdings Ltd. .................. 3,113 ----------- Electric Utilities - 0.5% 9,500 CLP Holdings Ltd. ................ 56,642 19,500 HongKong Electric Holdings Ltd. ........................... 97,285 ----------- 153,927 ----------- IT Hardware - 0.0% 4,640 Truly International Holdings Ltd. ........................... 5,084 ----------- Land & Water Transportation - 0.0% 800 Kowloon Motor Bus Holdings Ltd. ........................... 4,878 ----------- Miscellaneous Finance - 0.1% 3,000 Guoco Group Ltd. ................. 30,436 11,000 Sun Hung Kai & Co., Ltd. ......... 3,049 ----------- 33,485 ----------- Real Estate Development - 0.6% 6,000 Hang Lung Properties Ltd. ........ 9,553 10,909 Henderson Investment Ltd. ........ 15,540 4,000 Hong Kong Ferry (Holdings) Co., Ltd. ........................... 4,899 5,000 Hongkong Land Holdings Ltd. ...... 15,700
Laudus Trust Semi-Annual Report 61 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, HONG KONG continued Real Estate Development continued 10,500 Kerry Properties Ltd. ............ $ 26,598 10,000 Swire Pacific Ltd., Class A....... 92,110 3,000 Wheelock & Co., Ltd. ............. 5,337 6,000 Wing On Co. International Ltd. ... 8,663 ----------- 178,400 ----------- Restaurants, Hotels & Theaters - 0.1% 3,000 Harbour Centre Development Ltd. ........................... 5,066 18,500 Hongkong & Shanghai Hotels Ltd. ........................... 20,511 ----------- 25,577 ----------- Retail - 0.1% 2,000 Jardine Strategic Holdings Ltd. ........................... 20,400 ----------- Wholesale - 0.1% 2,000 Jardine Matheson Holdings Ltd. ... 34,200 5,940 Tan Chong International Ltd. ..... 1,286 ----------- 35,486 ----------- 483,477 ----------- IRELAND - 0.5% Construction Materials - 0.5% 5,352 Crh............................... 145,031 ----------- ITALY - 3.8% Banks & Credit Institutions - 1.3% 40,000 Banca Intesa S.p.A. .............. 186,384 17,181 Banca Monte dei Paschi di Siena S.p.A. ......................... 76,186 4,545 Banche Popolari Unite Scrl........ 92,249 9,000 Capitalia S.p.A. ................. 49,210 ----------- 404,029 ----------- Communications Utilities - 0.3% 30,000 Telecom Italia S.p.A. ............ 97,518 ----------- Construction Materials - 0.2% 743 Italmobiliare S.p.A. ............. 50,670 ----------- Electric Utilities - 0.0% 11 Enel S.p.A. ...................... 95 ----------- Integrated Oil Cos. - 2.0% 21,000 Eni S.p.A. ....................... 623,578 ----------- Publishing, Broadcasting & Cinema - 0.0% 7,558 Cofide S.p.A. -- Compagnia Finanziaria de Benedetti........ 10,145 ----------- 1,186,035 ----------- JAPAN - 21.8% Agriculture, Food & Beverage - 0.2% 2,000 Kinki Coca-Cola Bottling Co., Ltd. ........................... 19,718 400 Kirin Beverage Corp. ............. 8,705 2,000 Mikuni Coca-Cola Bottling Co., Ltd. ........................... 18,996 ----------- 47,419 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Autos - 0.9% 6,000 Fuji Heavy Industries Ltd. ....... $ 27,119 2,000 Topre Corp. ...................... 17,251 5,400 Toyota Motor Corp. ............... 247,401 ----------- 291,771 ----------- Banks & Credit Institutions - 3.7% 600 Acom Co., Ltd. ................... 43,559 2,000 Chugoku Bank Ltd. ................ 27,242 6,000 Daishi Bank Ltd. ................. 29,075 2,000 Joyo Bank Ltd. ................... 12,194 2,000 Kagoshima Bank Ltd. .............. 14,855 20 Mitsubishi Tokyo Financial Group, Inc. ........................... 257,829 10,000 Mitsui Trust Holdings, Inc. ...... 138,502 18 Mizuho Financial Group, Inc. ..... 114,502 13,000 Orient Corp. *.................... 59,330 3,000 San-in Godo Bank Ltd. ............ 31,004 5,000 Shiga Bank Ltd. .................. 34,934 2,000 Shizuoka Bank Ltd. ............... 20,599 23 Sumitomo Mitsui Financial Group, Inc. ........................... 216,828 9,000 Sumitomo Trust & Banking Co., Ltd. ........................... 74,062 1,100 Takefuji Corp. ................... 85,771 ----------- 1,160,286 ----------- Basic Minerals & Metals - 1.9% 4,300 JFE Holdings, Inc. ............... 139,797 50,000 Kobe Steel Ltd. .................. 151,982 61,000 Nippon Steel Corp. ............... 228,951 17,000 Nisshin Steel Co., Ltd. .......... 58,714 700 Tokyo Steel Manufacturing Co., Ltd. ........................... 10,885 ----------- 590,329 ----------- Beer, Liquor & Tobacco - 0.8% 2,000 Asahi Breweries Ltd. ............. 25,322 10 Japan Tobacco, Inc. .............. 157,708 7,000 Kirin Brewery Co., Ltd. .......... 77,093 ----------- 260,123 ----------- Cellular & Wireless - 0.2% 10 Kddi Corp. ....................... 56,388 ----------- Chemicals & Rubber - 1.3% 7,000 Bridgestone Corp. ................ 149,867 14,000 Dainippon Ink & Chemicals, Inc. ........................... 46,009 36,000 Mitsubishi Chemical Corp. ........ 119,260 3,000 Mitsui Chemicals, Inc. ........... 17,709 1,000 Nippon Shokubai Co., Ltd. ........ 10,582 3,000 Sakai Chemical Industry Co., Ltd. ........................... 14,247 2,000 Toyo Tire & Rubber Co., Ltd. ..... 10,520 6,000 Yokohama Rubber Co., Ltd. ........ 28,863 ----------- 397,057 ----------- Communications Utilities - 0.7% 43 Nippon Telegraph & Telephone Corp.(NTT)...................... 211,401 ----------- Construction & Homebuilding - 0.6% 600 Chudenko Corp. ................... 9,996 3,000 Daiwa House Industry Co., Ltd. ... 39,251
62 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Construction & Homebuilding continued 6,000 Kinden Corp. ..................... $ 51,806 2,000 Kyudenko Corp. ................... 14,097 3,000 Maeda Corp. ...................... 20,300 2,000 Nippo Corp. ...................... 14,696 2,000 Taikisha Ltd. .................... 31,965 2,000 Yurtec Corp. ..................... 12,194 ----------- 194,305 ----------- Construction Materials - 0.4% 10,000 Asahi Glass Co., Ltd. ............ 104,934 3,000 Maeda Road Construction Co., Ltd. ........................... 22,573 ----------- 127,507 ----------- Consumer Durables - 1.2% 3,000 Japan Radio Co., Ltd. *........... 12,661 13,000 Matsushita Electric Industrial Co., Ltd. ...................... 220,255 24,000 NEC Corp. ........................ 130,044 ----------- 362,960 ----------- Drugs & Pharmaceuticals - 0.1% 200 Cawachi Ltd. ..................... 7,789 2,000 Nippon Shinyaku Co., Ltd. ........ 16,000 200 Torii Pharmaceutical Co., Ltd. ... 4,361 ----------- 28,150 ----------- Electric Utilities - 1.5% 2,800 Chubu Electric Power Co., Inc. ... 68,335 2,800 Kansai Electric Power Co., Inc. ........................... 61,797 4,700 Kyushu Electric Power Co., Inc. ........................... 104,559 6,200 Tohoku Electric Power Co., Inc. ........................... 137,930 4,300 Tokyo Electric Power Co., Inc. ... 108,731 ----------- 481,352 ----------- Furniture & Household Items - 0.4% 800 Sankyo Co., Ltd. ................. 42,150 12,000 Sekisui Chemical Co., Ltd. ....... 85,533 ----------- 127,683 ----------- Information & Services - 0.1% 2,000 Kinki Nippon Tourist Co., Ltd. ... 6,167 600 TKC Corp. ........................ 10,600 ----------- 16,767 ----------- Instruments - 0.0% 1,000 Hitachi Medical Corp. ............ 12,758 ----------- Insurance - 0.6% 15,000 Mitsui Sumitomo Insurance Co., Ltd. ........................... 173,657 3,000 Nisshin Fire & Marine Insurance Co., Ltd. ...................... 11,947 ----------- 185,604 ----------- IT Hardware - 0.1% 300 Daiichikosho Co., Ltd. ........... 6,634 4,000 Toshiba TEC Corp. ................ 17,657 ----------- 24,291 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Land & Water Transportation - 0.3% 2,000 Nippon Yusen Kabushiki Kaisha..... $ 13,410 23 West Japan Railway Co. ........... 86,934 ----------- 100,344 ----------- Metal Products & Machinery - 1.9% 2,000 Amada Co., Ltd. .................. 15,947 1,100 Glory Ltd. ....................... 21,322 2,200 Heiwa Corp. ...................... 33,727 29,000 Hitachi Ltd. ..................... 183,708 1,000 Komatsu Ltd. ..................... 13,621 3,000 Makita Corp. ..................... 60,793 28,000 Mitsubishi Heavy Industries Ltd. ........................... 99,171 2,000 NGK Spark Plug Co., Ltd. ......... 28,987 700 Nitto Kogyo Corp. ................ 10,158 700 Sega Sammy Holdings, Inc. ........ 27,630 700 Sega Sammy Holdings, Inc. W/I *... 27,137 2,000 Sekisui Jushi Corp. .............. 15,912 3,000 Toyo Seikan Kaisha Ltd. .......... 44,564 ----------- 582,677 ----------- Oil Distribution - 1.6% 10,000 Cosmo Oil Co., Ltd. .............. 54,185 16,000 Nippon Mining Holdings, Inc. ..... 126,872 18,000 Nippon Oil Corp. ................. 159,382 7,300 Showa Shell Sekiyu K.K............ 99,949 6,000 TonenGeneral Sekiyu K.K........... 69,780 ----------- 510,168 ----------- Photooptical, Micros & Office Machinery - 0.8% 1,800 Canon, Inc. ...................... 97,216 4,600 Fuji Photo Film Co., Ltd. ........ 151,577 ----------- 248,793 ----------- Real Estate Development - 0.4% 10,000 Sekisui House Ltd. ............... 122,555 ----------- Restaurants, Hotels & Theaters - 0.5% 1,300 Nintendo Co., Ltd. ............... 151,648 ----------- Retail - 0.9% 2,000 Aichi Toyota Motor Co., Ltd. ..... 42,291 1,400 Aoyama Trading Co., Ltd. ......... 39,471 3,960 Seven & I Holdings Co., Ltd. *.... 131,186 4,000 Uny Co., Ltd. .................... 52,793 ----------- 265,741 ----------- Soaps & Cosmetics - 0.2% 2,000 Kao Corp. ........................ 49,251 ----------- Software - 0.5% 200 Fujitsu Business Systems Ltd. .... 2,959 23,000 Fujitsu Ltd. ..................... 151,577 ----------- 154,536 ----------- 6,761,864 ----------- LUXEMBURG - 0.6% Basic Minerals & Metals - 0.6% 8,100 Arcelor........................... 189,420 -----------
Laudus Trust Semi-Annual Report 63 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- NETHERLANDS - 2.3% Agriculture, Food & Beverage - 0.1% 581 Unilever NV....................... $ 41,298 ----------- Banks & Credit Institutions - 0.4% 4,000 ING Groep NV...................... 119,113 ----------- Chemicals & Rubber - 0.4% 2,800 DSM NV............................ 109,995 ----------- Commercial Aircraft & Components - 0.5% 4,200 European Aeronautic Defence & Space Co. ...................... 148,891 ----------- Insurance - 0.1% 1,249 Aegon NV.......................... 18,537 ----------- Integrated Oil Cos. - 0.8% 8,700 Royal Dutch Shell plc, Class A.... 287,194 ----------- 725,028 ----------- NEW ZEALAND - 0.2% Construction Materials - 0.0% 5,597 Fletcher Building Ltd. ........... 30,653 ----------- Forest Products & Paper - 0.1% 15,301 Carter Holt Harvey Ltd. .......... 26,663 ----------- Publishing, Broadcasting & Cinema - 0.1% 4,183 Sky Network Television Ltd. *..... 17,820 ----------- 75,136 ----------- NORWAY - 1.5% Oil & Coal Resources - 1.5% 1,611 Norsk Hydro ASA................... 180,345 12,000 Statoil ASA....................... 297,810 ----------- 478,155 ----------- 478,155 ----------- PORTUGAL - 0.5% Electric Utilities - 0.5% 54,000 Electricidade de Portugal SA...... 150,550 ----------- SINGAPORE - 0.8% Agriculture, Food & Beverage - 0.1% 51,000 Asia Food & Properties Ltd. *..... 11,306 36,654 Golden Agri-Resources Ltd. *...... 7,908 ----------- 19,214 ----------- Airlines - 0.1% 4,000 Singapore Airlines Ltd. .......... 27,428 ----------- Banks & Credit Institutions - 0.1% 3,000 DBS Group Holdings Ltd. .......... 28,019 3,000 Oversea-Chinese Banking Corp. .... 11,084 ----------- 39,103 ----------- Communications Utilities - 0.3% 76,000 Singapore Telecommunications Ltd. ........................... 110,066 ----------- Financial Investments - 0.1% 3,000 Overseas Union Enterprise Ltd. ... 16,936 ----------- Oil Distribution - 0.0% 3,000 Singapore Petroleum Co., Ltd. .... 10,463 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, SINGAPORE continued Real Estate Development - 0.1% 3,000 Jardine Cycle & Carriage Ltd. .... $ 19,684 ----------- 242,894 ----------- SPAIN - 5.6% Banks & Credit Institutions - 1.6% 3,000 Banco Bilbao Vizcaya Argentaria SA.............................. 52,599 33,846 Banco Santander Central Hispano SA.............................. 444,556 ----------- 497,155 ----------- Beer, Liquor & Tobacco - 0.2% 1,602 Altadis........................... 71,750 ----------- Communications Utilities - 0.2% 4,160 Telefonica SA..................... 68,088 ----------- Construction & Homebuilding - 1.1% 2,678 Abengoa SA........................ 47,114 1,000 Acciona SA........................ 114,462 1,800 Fomento de Construcciones y Contratas SA.................... 107,267 4,000 Obrascon Huarte Lain SA........... 59,989 ----------- 328,832 ----------- Electric Utilities - 1.1% 11,200 Endesa SA......................... 299,735 620 Gas Natural SDG SA................ 18,030 674 Union Fenosa SA................... 22,257 ----------- 340,022 ----------- Integrated Oil Cos. - 1.2% 11,900 Repsol YPF SA..................... 385,536 ----------- Real Estate Development - 0.2% 1,205 Corporacion Financiera Alba SA.... 51,377 ----------- 1,742,760 ----------- SWEDEN - 2.8% Banks & Credit Institutions - 0.7% 23,018 Nordea Bank AB.................... 230,144 ----------- Cellular & Wireless - 0.8% 4,200 Tele2 AB, Class B................. 42,806 40,000 TeliaSonera AB.................... 189,906 ----------- 232,712 ----------- Construction & Homebuilding - 0.3% 6,000 Skanska AB, Class B............... 88,631 ----------- Health Care & Hospital - 0.3% 5,999 Gambro AB, Class A................ 90,939 ----------- Information & Services - 0.2% 4,504 Securitas, Class B................ 69,729 ----------- IT Hardware - 0.2% 14,000 Telefonaktiebolaget LM Ericsson, Class B......................... 51,115 ----------- Metal Products & Machinery - 0.3% 7,006 AB SKF, Class B................... 91,290 ----------- 854,560 -----------
64 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- SWITZERLAND - 7.9% Agriculture, Food & Beverage - 0.4% 52 Barry Callebaut AG *.............. $ 15,348 420 Nestle SA......................... 122,995 ----------- 138,343 ----------- Airlines - 0.0% 30 Swissair Group * (a).............. 0 ----------- Biotechnology - 0.3% 140 Serono SA, Class B................ 92,057 ----------- Chemicals & Rubber - 0.3% 1,500 Ciba Specialty Chemicals AG....... 88,491 ----------- Construction Materials - 0.2% 824 Holcim Ltd. ...................... 54,723 ----------- Drugs & Pharmaceuticals - 1.5% 5,600 Novartis AG....................... 284,067 1,300 Roche Holding AG.................. 180,606 ----------- 464,673 ----------- Electric Utilities - 0.0% 80 Centralschweizerische Kraftwerke AG.............................. 14,588 ----------- Furniture & Household Items - 0.9% 7,200 Compagnie Financiere Richemont AG, Class A......................... 285,118 ----------- Instruments - 0.1% 99 Leica Geosystems AG............... 44,826 ----------- Insurance - 1.3% 500 Swiss Life Holding *.............. 70,777 1,900 Zurich Financial Services AG...... 323,714 ----------- 394,491 ----------- Metal Products & Machinery - 0.9% 15,000 ABB Ltd. *........................ 109,643 191 Saurer AG *....................... 12,913 77 SIG Holding AG.................... 19,619 150 Sulzer AG......................... 76,032 400 Unaxis Holding AG *............... 52,944 ----------- 271,151 ----------- Miscellaneous Finance - 2.0% 1,442 Credit Suisse Group............... 63,844 6,200 UBS AG............................ 526,967 ----------- 590,811 ----------- Retail - 0.0% 107 Charles Voegele Holding AG........ 8,722 ----------- 2,447,994 ----------- UNITED KINGDOM - 21.2% Agriculture, Food & Beverage - 0.9% 25,815 Unilever plc...................... 269,523 ----------- Banks & Credit Institutions - 4.4% 17,100 Barclays plc...................... 172,803 29,400 HBOS plc.......................... 442,540 15,600 HSBC Holdings plc................. 252,287 17,991 Royal Bank of Scotland Group plc............................. 510,521 ----------- 1,378,151 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Basic Minerals & Metals - 0.6% 5,777 BHP Billiton plc.................. $ 93,325 88,000 Corus Group plc................... 79,927 ----------- 173,252 ----------- Beer, Liquor & Tobacco - 0.1% 1,400 SABMiller plc..................... 27,135 ----------- Cellular & Wireless - 2.4% 291,994 Vodafone Group plc................ 759,570 ----------- Construction & Homebuilding - 2.3% 5,400 Barratt Developments plc.......... 71,950 2,873 Bellway plc....................... 44,360 4,500 Bovis Homes Group plc............. 48,570 8,000 BPB plc........................... 103,840 9,000 George Wimpey plc................. 67,934 1,140 Kier Group plc.................... 21,412 4,900 McCarthy & Stone plc.............. 53,406 1,426 Mowlem plc........................ 4,024 5,600 Persimmon plc..................... 84,738 7,000 Redrow plc........................ 53,455 12,000 Taylor Woodrow plc................ 68,622 6,000 Westbury plc...................... 45,713 2,500 Wilson Bowden plc................. 51,409 ----------- 719,433 ----------- Construction Materials - 0.4% 11,000 Hanson plc........................ 114,167 ----------- Drugs & Pharmaceuticals - 1.5% 1,450 AstraZeneca plc................... 67,383 12,000 GlaxoSmithKline plc............... 305,175 7,200 Shire Pharmaceuticals plc......... 87,552 ----------- 460,110 ----------- Electric Utilities - 0.0% 37 Scottish Power plc................ 373 ----------- Financial Investments - 0.2% 3,950 3I Group plc...................... 54,615 ----------- Forest Products & Paper - 1.5% 15,600 Anglo American plc................ 464,957 ----------- Gas & Other Public Utilities - 0.2% 3,803 Severn Trent plc.................. 66,466 ----------- Insurance - 1.7% 29,448 Aviva plc......................... 323,298 30,000 Friends Provident plc............. 98,938 45,000 Old Mutual plc.................... 110,115 ----------- 532,351 ----------- Integrated Oil Cos. - 2.6% 33,000 BP plc............................ 391,970 12,067 Royal Dutch Shell plc, Class B.... 416,691 ----------- 808,661 -----------
Laudus Trust Semi-Annual Report 65 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Miscellaneous Finance - 0.9% 12,000 Amvescap plc...................... $ 77,881 36,912 Legal & General Group plc......... 73,886 14,000 Prudential plc.................... 127,033 ----------- 278,800 ----------- Oil & Coal Resources - 0.6% 7,500 Xstrata plc....................... 194,305 ----------- Oil Drilling & Services - 0.1% 991 Expro International Group plc..... 9,560 3,721 Venture Production plc *.......... 31,631 ----------- 41,191 ----------- Restaurants, Hotels & Theaters - 0.7% 260 De Vere Group plc................. 2,740 21,877 Hilton Group plc.................. 121,341 877 Luminar plc....................... 7,424 4,628 Whitbread plc..................... 77,498 ----------- 209,003 ----------- Retail - 0.1% 12,000 Somerfield plc.................... 41,797 ----------- 6,593,860 ----------- TOTAL COMMON STOCK (COST $24,906,352).................... 29,868,402 -----------
PRINCIPAL VALUE ----------------------------------------------------------- REPURCHASE AGREEMENT - 2.4% UNITED STATES - 2.4% $747,000 State Street Bank dated 9/30/05 due 10/3/05 at 2.75% with a maturity value of $747,171 (fully collateralized by a Federal National Mortgage Security)....................... $ 747,000 ----------- TOTAL REPURCHASE AGREEMENT (COST $747,000)....................... 747,000 ----------- TOTAL INVESTMENTS (COST $25,653,352) (B) -- 98.6%....... 30,615,402 NET OTHER ASSETS (LIABILITIES)-- 1.4%............................ 443,473 ----------- NET ASSETS -- 100.0%.............. $31,058,875 ===========
--------------- * Non-income producing security. (a) Bankrupt security/delisted; fair-valued by management. (b) Represents cost for financial reporting purposes, is substantially the same as federal Income tax purposes, and differs from value by net unrealized appreciation as follows: Unrealized appreciation.................... $5,198,958 Unrealized depreciation.................... (236,908) ---------- Net unrealized appreciation................ $4,962,050 ==========
FOREIGN CURRENCY CONTRACTS
CONTRACT UNREALIZED DELIVERY AMOUNT APPRECIATION/ DATE (LOCAL CURRENCY) (DEPRECIATION) -------- ---------------- -------------- Receive Australian Dollars Exchange for 10,000 U.S. Dollars 10/4/05 13,141 $ 16 Receive Danish Krones Exchange for 100,812 British Pounds 10/4/05 1,100,000 (561) ----- $(545) =====
66 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND as of 9/30/05 (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK - 94.8% AUSTRALIA 4.1% Agriculture, Food & Beverage - 0.6% 39,416 ABB Grain Ltd. ............... $ 204,345 1,399,077 Burns, Philp & Company Ltd. * (a)......................... 1,205,319 735,360 Futuris Corp., Ltd. .......... 1,182,945 303,719 Great Southern Plantations Ltd. (a).................... 655,300 340,500 Ridley Corp., Ltd. ........... 363,435 319,463 Timbercorp Ltd. (a)........... 526,086 ------------ 4,137,430 ------------ Banks & Credit Institutions - 0.2% 144,031 Adelaide Bank Ltd. ........... 1,418,733 79,431 Bank of Queensland Ltd. (a)... 747,892 ------------ 2,166,625 ------------ Basic Minerals & Metals - 0.9% 327,112 Downer EDI Ltd. .............. 1,506,314 263,270 GRD NL........................ 564,014 240,662 Iluka Resources Ltd. ......... 1,609,124 406,614 Macmahon Holdings Ltd. ....... 170,501 235,326 OneSteel Ltd. (a)............. 683,560 312,669 Resolute Mining Ltd. *........ 348,032 1,056,034 Smorgon Steel Group Ltd. ..... 1,332,472 58,024 Sons of Gwalia Ltd. * (b)..... 0 202,763 Straits Resources Ltd. ....... 431,296 150,235 Ticor Ltd. ................... 211,897 88,361 Zinifex Ltd. *................ 307,190 ------------ 7,164,400 ------------ Beer, Liquor & Tobacco - 0.2% 181,452 Lion Nathan Ltd. (a).......... 1,160,662 81,745 McGuigan Simeon Wines Ltd. (a)......................... 255,521 ------------ 1,416,183 ------------ Cellular & Wireless - 0.0% 150,000 B Digital Ltd. *.............. 42,313 ------------ Construction & Homebuilding - 0.0% 302,903 Sunland Group Ltd. (a)........ 360,255 ------------ Construction Materials - 0.0% 100,418 Adelaide Brighton Ltd. (a).... 176,085 ------------ Forest Products & Paper - 0.1% 29,541 Amcor Ltd. (a)................ 151,123 129,829 PaperlinX Ltd. (a)............ 312,781 ------------ 463,904 ------------ Government Aircraft & Defense - 0.0% 221,418 Austal Ltd. *................. 366,315 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, AUSTRALIA continued Information & Services - 0.3% 422,027 AWB Ltd. ..................... $ 1,644,157 309 Campbell Brothers Ltd. ....... 2,323 554,377 MYOB Ltd. (a)................. 454,355 5,686 Programmed Maintenance Services Ltd. .............. 13,395 235,048 Spotless Group Ltd. (a)....... 904,961 ------------ 3,019,191 ------------ Instruments - 0.2% 180,166 Ansell Ltd. .................. 1,549,402 341,714 Vision Systems Ltd. .......... 401,204 ------------ 1,950,606 ------------ Insurance - 0.2% 417,864 Promina Group Ltd. (a)........ 1,592,894 ------------ Land & Water Transportation - 0.0% 2,864 K & S Corp., Ltd. *........... 7,642 ------------ Oil & Coal Resources - 0.4% 73,280 Centennial Coal Co., Ltd. .... 278,225 171,075 Roc Oil Co., Ltd. * (a)....... 361,284 204,208 Santos Ltd. .................. 1,947,655 129,916 Washington H. Soul Pattinson & Co., Ltd. .................. 1,084,573 ------------ 3,671,737 ------------ Oil Distribution - 0.1% 44,711 Caltex Australia Ltd. (a)..... 699,478 15,561 Clough Ltd. *................. 6,050 ------------ 705,528 ------------ Publishing, Broadcasting & Cinema - 0.2% 62,858 APN News & Media Ltd. (a)..... 239,614 401,595 Austereo Group Ltd. (a)....... 506,720 3,726 Prime Television Ltd. ........ 9,516 63,227 Southern Cross Broadcasting (Australia) Ltd. (a)........ 708,602 215,998 Village Roadshow Ltd. *....... 470,975 ------------ 1,935,427 ------------ Real Estate Development - 0.0% 97,036 Central Equity Ltd. .......... 173,853 ------------ Restaurants, Hotels & Theaters - 0.0% 103,699 Amalgamated Holdings Ltd. .... 355,770 ------------ Retail - 0.3% 188,678 Brazin Ltd. .................. 280,503 116,341 Colorado Group Ltd. (a)....... 421,316 272,629 David Jones Ltd. (a).......... 530,022 375,704 Mayne Group Ltd. ............. 1,541,028 391,920 Miller's Retail Ltd. * (a).... 262,943 ------------ 3,035,812 ------------ Software - 0.0% 96,776 HPAL Ltd. .................... 125,429 ------------ Textiles & Apparel - 0.0% 158,206 Pacific Brands Ltd. .......... 343,756 ------------
Laudus Trust Semi-Annual Report 67 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, AUSTRALIA continued Wholesale - 0.4% 23,989 Alesco Corp., Ltd. (a)........ $ 145,948 304,577 Australian Pharmaceutical Industries Ltd. (a)......... 717,526 185,929 GWA International Ltd. ....... 470,617 98,389 Housewares International Ltd. (a)......................... 121,519 111,260 Sims Group Ltd. .............. 1,620,146 ------------ 3,075,756 ------------ 36,286,911 ------------ AUSTRIA - 0.7% Banks & Credit Institutions - 0.1% 4,145 Investkredit Bank AG.......... 689,381 ------------ Basic Minerals & Metals - 0.6% 59,400 voestalpine AG................ 5,223,688 ------------ Construction & Homebuilding - 0.0% 503 Allgemeine Baugesellschaft - A. Porr AG.......................... 77,685 ------------ 5,990,754 ------------ BELGIUM - 1.2% Construction & Homebuilding - 0.1% 1,440 Compagnie Francois d' Entreprises (CFE)........... 799,471 ------------ Financial Investments - 0.2% 10,624 Almancora Comm. Va............ 1,050,080 242 Compagnie Nationale a Portefeuille/ Nationale Portefeuille Maatschappij... 65,724 74,402 Econocom Group................ 562,385 3,798 Quest for Growth *............ 38,338 ------------ 1,716,527 ------------ Gas & Other Public Utilities - 0.2% 324 Distrigaz..................... 1,537,944 ------------ Metal Products & Machinery - 0.1% 45,000 Ion Beam Applications......... 343,928 8,712 Laundry Systems Group *....... 81,660 14,567 Picanol....................... 251,551 ------------ 677,139 ------------ Real Estate Development - 0.0% 1,550 Wereldhave Belgium............ 136,904 ------------ Retail - 0.5% 1,317 Brantano Group NV............. 72,802 80,400 Delhaize Group................ 4,755,499 ------------ 4,828,301 ------------ Software - 0.1% 46,023 Telindus Group NV *........... 796,408 ------------ Wholesale - 0.0% 928 Punch International NV *...... 80,349 ------------ 10,573,043 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK continued CANADA - 5.8% Agriculture, Food & Beverage - 0.2% 24,200 Canada Bread Co., Ltd. ....... $ 1,051,332 19,400 Saputo, Inc. ................. 616,954 ------------ 1,668,286 ------------ Airlines - 0.0% 600 CHC Helicopter Corp., Class A........................... 12,907 17,300 Transat A.T., Inc., Class A *........................... 278,360 ------------ 291,267 ------------ Autos - 0.1% 73,300 Linamar Corp. ................ 1,015,428 ------------ Basic Minerals & Metals - 1.4% 4,100 Agnico-Eagle Mines Ltd. ...... 60,784 11,700 Calfrac Well Services Ltd. ... 398,154 9,300 Cameco Corp. ................. 496,288 40,100 Inmet Mining Corp. *.......... 719,399 65,256 IPSCO, Inc. .................. 4,641,249 311,000 Kinross Gold Corp. *.......... 2,389,632 3,000 LionOre Mining International Ltd. *...................... 14,584 266,300 Sherritt International Corp. ...................... 2,509,022 23,300 Teck Cominco Ltd., Class B.... 1,045,513 ------------ 12,274,625 ------------ Biotechnology - 0.1% 163,200 QLT, Inc. *................... 1,239,938 ------------ Chemicals & Rubber - 0.2% 85,600 Methanex Corp. ............... 1,268,312 2,900 NOVA Chemicals Corp. ......... 106,673 ------------ 1,374,985 ------------ Communications Utilities - 0.4% 53,700 Cogeco Cable, Inc. ........... 1,414,812 74,500 Corus Entertainment, Inc., Class B..................... 2,156,409 ------------ 3,571,221 ------------ Drugs & Pharmaceuticals - 0.1% 78,600 Patheon, Inc. *............... 495,054 ------------ Electric Utilities - 0.4% 88,300 ATCO Ltd., Class I............ 3,206,212 ------------ Forest Products & Paper - 0.4% 6,800 Canfor Corp. *................ 81,563 15,800 Cascades, Inc. ............... 112,022 31,200 Domtar, Inc. ................. 200,537 80,600 Intertape Polymer Group, Inc. *........................... 575,615 49,600 Norbord, Inc. ................ 522,802 46,700 West Fraser Timber Co., Ltd. ....................... 1,785,706 ------------ 3,278,245 ------------ Furniture & Household Items - 0.0% 700 Dorel Industries, Inc., Class B *......................... 19,274 19,500 Royal Group Technologies Ltd. *........................... 196,309 ------------ 215,583 ------------
68 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, CANADA continued Health Care & Hospital - 0.1% 35,700 MDS, Inc. .................... $ 641,384 ------------ Insurance - 0.3% 1,934 E-L Financial Corp., Ltd. .... 707,020 1,000 Fairfax Financial Holdings Ltd. ....................... 173,292 98,600 Kingsway Financial Services, Inc. ....................... 1,768,895 ------------ 2,649,207 ------------ IT Hardware - 0.5% 600 ATI Technologies, Inc. *...... 8,296 383,600 CAE, Inc. .................... 2,581,098 174,700 Celestica, Inc. *............. 1,958,648 ------------ 4,548,042 ------------ Land & Water Transportation - 0.2% 94,800 CP Ships Ltd. ................ 2,009,871 ------------ Metal Products & Machinery - 0.1% 64,800 ShawCor Ltd. ................. 962,354 ------------ Oil & Coal Resources - 0.0% 6,000 PetroKazakhstan, Inc., Class A........................... 324,729 ------------ Publishing, Broadcasting & Cinema - 0.7% 62,100 Alliance Atlantis Communications, Inc., Class B *......................... 1,715,204 61,000 Astral Media, Inc. ........... 1,793,993 15,300 CanWest Global Communications Corp. *..................... 171,141 1,300 CHUM Ltd., Class B............ 38,591 22,100 Cinram International, Inc. ... 482,047 100 Quebecor Inc., Class B........ 2,560 1,800 Quebecor World, Inc. ......... 33,764 700 Torstar Corp., Class B........ 14,004 117,300 Transcontinental, Inc., Class A........................... 2,176,034 ------------ 6,427,338 ------------ Real Estate Development - 0.2% 41,600 BPO Properties Ltd. .......... 1,404,922 ------------ Restaurants, Hotels & Theaters - 0.2% 55,500 Intrawest Corp. .............. 1,509,512 ------------ Retail - 0.0% 2,300 Canadian Tire Corp., Ltd., Class A..................... 124,460 2,000 Empire Co., Ltd., Class A..... 65,600 9,200 Reitmans (Canada) Ltd., Class A........................... 133,701 ------------ 323,761 ------------ Soaps & Cosmetics - 0.1% 30,100 CCL Industries, Inc., Class B........................... 776,975 ------------ Software - 0.1% 88,600 CGI Group, Inc. *............. 647,996 38,400 Geac Computer Corp., Ltd. *... 359,153 ------------ 1,007,149 ------------ 51,216,088 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK continued CHINA - 0.5% Chemicals & Rubber - 0.1% 1,458,000 Sinopec Shanghai Petrochemical Co., Ltd., Class H.......... $ 512,182 ------------ Construction & Homebuilding - 0.1% 509,000 Shanghai Industrial Holdings Ltd. ....................... 1,030,192 ------------ Financial Investments - 0.0% 58,500 Asia Satellite Telecommunications Holdings Ltd. ....................... 110,860 ------------ Land & Water Transportation - 0.2% 290,120 Beijing Enterprises Holdings Ltd. ....................... 521,738 308,848 China National Aviation Co., Ltd. ....................... 68,083 824,000 GZI Transportation Ltd. ...... 305,398 3,560,146 Sichuan Expressway Co., Ltd., Class H..................... 546,154 193,200 Tianjin Development Holdings Ltd. ....................... 80,323 ------------ 1,521,696 ------------ Metal Products & Machinery - 0.1% 918,000 Harbin Power Equipment Co., Ltd., Class H............... 529,585 124,000 Jingwei Textile Machinery Co., Ltd., Class H............... 31,012 ------------ 560,597 ------------ Photooptical, Micros & Office Machinery - 0.0% 1,031,920 Great Wall Technology Co., Ltd., Class H............... 232,801 ------------ Software - 0.0% 846,465 Digital China Holdings Ltd. ....................... 245,523 ------------ 4,213,851 ------------ DENMARK - 1.5% Communications Utilities - 0.6% 86,000 TDC A/S....................... 4,626,709 ------------ Construction & Homebuilding - 0.1% 8,100 Monberg & Thorsen A/S, Class B........................... 615,821 ------------ Construction Materials - 0.2% 77,000 FLSmidth & Co. A/S, Class B (a)......................... 2,145,676 ------------ Financial Investments - 0.2% 34,400 A/S Schouw & Co. ............. 1,340,915 ------------ Information & Services - 0.0% 5,700 PER Aarsleff A/S, Class B..... 425,092 ------------ Land & Water Transportation - 0.1% 6,009 DFDS A/S...................... 409,421 7,500 Mols-Linien A/S............... 300,807 ------------ 710,228 ------------ Publishing, Broadcasting & Cinema - 0.0% 4,500 VT Holding.................... 229,773 ------------
Laudus Trust Semi-Annual Report 69 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, DENMARK continued Real Estate Development - 0.2% 15,752 Jeudan A/S.................... $ 1,215,342 6,656 Nordicom A/S.................. 605,744 ------------ 1,821,086 ------------ Wholesale - 0.1% 3,600 DLH A/S, Class B.............. 405,908 4,394 Sanistal A/S, Class B......... 431,735 ------------ 837,643 ------------ 12,752,943 ------------ FINLAND 2.2% Agriculture, Food & Beverage - 0.1% 13,978 Lannen Tehtaat Oyj............ 273,798 12,600 Olvi Oyj, Class A............. 254,377 9,134 Raisio plc, Class K *......... 25,904 165,000 Raisio plc, Class V........... 460,014 ------------ 1,014,093 ------------ Airlines - 0.3% 224,000 Finnair Oyj (a)............... 2,915,244 ------------ Basic Minerals & Metals - 0.5% 163,000 Rautaruukki Oyj............... 3,660,963 ------------ Cellular & Wireless - 0.4% 209,259 Elisa Corp. .................. 3,616,108 ------------ Chemicals & Rubber - 0.3% 214,868 Kemira Oyj.................... 3,041,693 ------------ IT Hardware - 0.0% 1,894 Elcoteq Network Corp., Class A........................... 42,266 ------------ Land & Water Transportation - 0.0% 10,800 Birka Line AB, Class A........ 150,550 ------------ Metal Products & Machinery - 0.6% 131,420 Wartsila Oyj, Class B......... 4,185,098 ------------ Miscellaneous Finance - 0.0% 29,500 Norvestia Oyj, Class B........ 262,333 ------------ Real Estate Development - 0.0% 6,070 Sponda Oyj.................... 64,336 63,000 Technopolis Oyj............... 352,040 ------------ 416,376 ------------ 19,304,724 ------------ FRANCE 6.5% Banks & Credit Institutions - 0.4% 815 Caisse Regionale du Credit Agricole Mutuel Loire Haute- Loire....................... 61,506 24,829 Natexis Banques Populaires.... 3,744,564 1,280 Societe de Developpement Regional de la Bretagne *... 30,072 ------------ 3,836,142 ------------ Basic Minerals & Metals - 0.5% 40,800 Eramet SLN.................... 4,525,434 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, FRANCE continued Beer, Liquor & Tobacco - 0.2% 424 Malteries Franco Belges....... $ 67,308 32,419 Remy Cointreau SA (a)......... 1,470,669 ------------ 1,537,977 ------------ Chemicals & Rubber - 0.6% 85,779 Compagnie Generale des Etablissements Michelin, Class B (a)................. 5,038,608 ------------ Construction & Homebuilding - 0.5% 47,100 Eiffage (a)................... 4,406,339 ------------ Construction Materials - 0.6% 51,600 Ciments Francais.............. 5,983,778 1,467 SA des Ciments Vicat.......... 246,806 ------------ 6,230,584 ------------ Financial Investments - 0.5% 19,440 Societe Fonciere Financiere et de Participations (FFP)..... 4,485,345 ------------ Forest Products & Paper - 0.0% 66,273 Otor *........................ 380,284 ------------ Furniture & Household Items - 0.1% 2,200 Signaux Girod................. 190,350 2,400 Smoby SA...................... 253,512 ------------ 443,862 ------------ Health Care & Hospital - 0.4% 86,400 Generale de Sante............. 3,124,168 ------------ Information & Services - 0.1% 64,846 A Novo *...................... 81,822 602 Groupe ONET................... 235,114 14,447 High Co. *.................... 175,867 2 Prodef SA..................... 1,173 ------------ 493,976 ------------ Instruments - 0.2% 18,550 Bacou-Dalloz.................. 1,802,280 ------------ IT Hardware - 0.2% 91,000 Thomson (a)................... 1,891,846 ------------ Metal Products & Machinery - 0.2% 202 Gevelot....................... 16,021 574 Groupe Finuchem............... 12,892 31,200 Valeo SA...................... 1,296,516 ------------ 1,325,429 ------------ Oil Distribution - 0.2% 733 Esso S.A.F.................... 157,144 20,544 Rubis......................... 1,676,305 ------------ 1,833,449 ------------ Real Estate Development - 0.1% 16,500 Bail Investissement Fonciere.................... 797,092 280 Compagnie Industrielle et Financiere d'Entreprises.... 62,013 ------------ 859,105 ------------
70 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, FRANCE continued Restaurants, Hotels & Theaters - 0.6% 5,422 Compagnie des Alpes........... $ 377,256 48,000 Groupe Flo *.................. 432,614 123,000 Sodexho Alliance SA (a)....... 4,642,709 ------------ 5,452,579 ------------ Retail - 0.4% 68,400 Rallye SA..................... 3,231,975 ------------ Software - 0.7% 40,400 Atos Orgin SA *............... 2,857,105 78,000 Cap Gemini SA *............... 3,035,079 ------------ 5,892,184 ------------ Wholesale - 0.0% 21,000 Groupe Ares *................. 111,795 4,000 Vet'Affaires.................. 144,205 ------------ 256,000 ------------ 57,047,566 ------------ GERMANY - 4.3% Banks & Credit Institutions - 0.0% 27,000 Albis Leasing AG.............. 260,218 ------------ Cellular & Wireless - 0.0% 4,416 Mobilcom (a).................. 101,730 ------------ Chemicals & Rubber - 0.0% 3,924 Linde AG...................... 289,626 ------------ Construction & Homebuilding - 0.5% 68,100 Bilfinger Berger AG........... 3,658,079 17,410 Hochtief AG................... 774,312 ------------ 4,432,391 ------------ Construction Materials - 0.3% 54,630 Dyckerhoff AG................. 2,310,196 ------------ Drugs & Pharmaceuticals - 1.0% 147,900 Degussa AG.................... 6,529,887 22,220 Merck KGaA.................... 1,866,464 ------------ 8,396,351 ------------ Electric Utilities - 0.1% 28,963 MVV Energie AG *.............. 670,345 ------------ Health Care & Hospital - 0.7% 62,600 Fresenius Medical Care AG (a)......................... 5,702,193 30,000 Marseille-Kliniken AG......... 387,911 ------------ 6,090,104 ------------ Information & Services - 0.0% 74,884 D. Logistics AG *............. 183,577 ------------ Instruments - 0.7% 51,200 Fresenius AG.................. 6,534,207 ------------ Insurance - 0.1% 31,200 Wuerttembergische Lebensversicherung AG....... 744,991 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, GERMANY continued IT Hardware - 0.2% 498 ADCapital AG.................. $ 5,141 203,000 Infineon Technologies AG *.... 1,993,042 7,427 Steag Hamatech AG *........... 16,422 ------------ 2,014,605 ------------ Land & Water Transportation - 0.0% 146 Bremer Lagerhaus Gesellschaft AG.......................... 1,900 ------------ Metal Products & Machinery - 0.2% 32,817 Deutz AG * (a)................ 173,915 37,500 Duerr AG * (a)................ 662,440 67,291 Jenoptik AG * (a)............. 627,505 2,790 KSB AG *...................... 507,943 ------------ 1,971,803 ------------ Photooptical, Micros & Office Machinery - 0.0% 491 Koenig & Bauer AG............. 14,102 ------------ Real Estate Development - 0.0% 2,962 Stodiek Europa Immobilien AG.......................... 27,942 37 TAG Tegernsee Immobilien- und Beteiligungs-AG. *.......... 369 ------------ 28,311 ------------ Restaurants, Hotels & Theaters - 0.2% 8,314 Sixt AG (a)................... 228,794 51,233 TUI AG........................ 1,090,967 ------------ 1,319,761 ------------ Retail - 0.2% 37,600 Hornbach Baumarkt Aktiengesellschaft.......... 1,328,414 ------------ Soaps & Cosmetics - 0.1% 22,398 Fuchs Petrolub AG............. 910,024 ------------ Software - 0.0% 12,650 GFT Technologies AG *......... 30,707 2,727 PC-Ware AG.................... 45,682 2,092 Teles AG *.................... 18,880 ------------ 95,269 ------------ Wholesale - 0.0% 425 KAP Beteiligungs AG........... 15,066 6,000 WMF-Wuerttembergische Metallwarenfabrik AG........ 112,841 ------------ 127,907 ------------ 37,825,832 ------------ GREECE - 0.4% Banks & Credit Institutions - 0.4% 26,314 Bank of Greece................ 2,917,139 ------------ Communications Utilities - 0.0% 15,000 Hellenic Telecommunications Organization SA *........... 299,946 ------------
Laudus Trust Semi-Annual Report 71 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, GREECE continued Oil Distribution - 0.0% 17,569 Hellenic Petroleum SA......... $ 274,044 ------------ 3,491,129 ------------ HONG KONG - 1.5% Agriculture, Food & Beverage - 0.0% 478,000 Vedan International (Holdings) Ltd. ....................... 57,924 ------------ Banks & Credit Institutions - 0.3% 1,066,000 Asia Financial Holdings Ltd. ....................... 261,103 998,000 Fubon Bank (Hong Kong) Ltd. ....................... 360,238 308,000 JCG Holdings Ltd. ............ 313,674 285,000 Liu Chong Hing Bank Ltd. ..... 439,049 93,800 Wing Lung Bank Ltd. .......... 718,878 ------------ 2,092,942 ------------ Cellular & Wireless - 0.0% 23,500 SmarTone Telecommunications Holdings Ltd. .............. 24,387 ------------ Communications Utilities - 0.0% 1,000,000 Tom Online, Inc. *............ 241,069 ------------ Electric Utilities - 0.0% 1,678,064 Sinolink Worldwide Holdings Ltd. ....................... 363,428 ------------ Financial Investments - 0.0% 84,000 Peregrine Investment Holdings Ltd. * (b).................. -- ------------ Furniture & Household Items - 0.0% 117,500 Peace Mark (Holdings) Ltd. ... 29,992 ------------ Information & Services - 0.0% 332,727 USI Holdings Ltd. ............ 112,595 ------------ Instruments - 0.0% 268,000 Moulin Global Eyecare Holdings Ltd. (b).................... -- ------------ IT Hardware - 0.1% 448,760 Truly International Holdings Ltd. ....................... 491,738 1,000 Varitronix International Ltd. ....................... 722 91,000 Vtech Holdings Ltd. .......... 329,060 ------------ 821,520 ------------ Land & Water Transportation - 0.0% 28,528 Kowloon Motor Bus Holdings Ltd. ....................... 173,953 12,323 Orient Overseas International Ltd. ....................... 46,070 ------------ 220,023 ------------ Miscellaneous Finance - 0.2% 8,768 Dah Sing Financial Group...... 58,777 164,000 Guoco Group Ltd. ............. 1,663,869 509,000 Sun Hung Kai & Co., Ltd. ..... 141,077 ------------ 1,863,723 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, HONG KONG continued Real Estate Development - 0.7% 52,500 Allied Group Ltd. ............ $ 70,049 4,000 China Motor Bus Co., Ltd. .... 33,002 885,281 Chinese Estates Holdings Ltd. ....................... 924,415 284,000 Far East Consortium International Ltd. ......... 114,411 460,000 Goldlion Holdings Ltd. ....... 66,417 294,280 Hong Kong Ferry (Holdings) Co., Ltd. .................. 360,400 821,000 Kerry Properties Ltd. ........ 2,079,728 171,015 New World China Land Ltd. *... 65,036 121,520 Tai Cheung Holdings Ltd. ..... 74,803 235,000 Tian An China Investments Co., Ltd. *...................... 56,045 283,820 Tomson Group Ltd. ............ 66,225 210,800 Wheelock & Co., Ltd. ......... 375,016 1,274,000 Wheelock Properties Ltd. ..... 845,819 249,500 Wing On Co. International Ltd. ....................... 360,238 ------------ 5,491,604 ------------ Restaurants, Hotels & Theaters - 0.2% 180,000 Harbour Centre Development Ltd. ....................... 303,980 952,192 Hongkong & Shanghai Hotels Ltd. ....................... 1,055,658 9,000 Mandarin Oriental International Ltd. ......... 7,695 ------------ 1,367,333 ------------ Software - 0.0% 855,582 Champion Technology Holdings Ltd. ....................... 134,562 260,280 SUNeVision Holdings Ltd. ..... 49,324 ------------ 183,886 ------------ Textiles & Apparel - 0.0% 16,333 Tungtex (Holdings) Co., Ltd. ....................... 5,632 ------------ Wholesale - 0.0% 1,236,000 Tan Chong International Ltd. ....................... 267,688 ------------ 13,143,746 ------------ IRELAND - 0.5% Construction & Homebuilding - 0.1% 92,000 Abbey plc..................... 972,902 ------------ Oil & Coal Resources - 0.3% 868,000 Dragon Oil plc *.............. 2,983,212 ------------ Wholesale - 0.1% 25,576 DCC plc....................... 513,272 ------------ 4,469,386 ------------ ITALY 4.2% Agriculture, Food & Beverage - 0.0% 3,855 La Doria S.p.A. .............. 12,045 ------------
72 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, ITALY continued Banks & Credit Institutions - 1.2% 484,056 Banca Monte dei Paschi di Siena S.p.A. (a)............ $ 2,146,448 436,000 Banca Popolare Italiana (a)... 4,275,384 1,532 Banco di Sardegna S.p.A. ..... 34,243 669,000 Capitalia S.p.A. ............. 3,657,934 ------------ 10,114,009 ------------ Construction & Homebuilding - 0.1% 70,039 Vianini Lavori S.p.A. ........ 693,530 ------------ Construction Materials - 0.7% 95,311 Buzzi Unicem S.p.A. .......... 1,498,129 58,000 Italcementi S.p.A. (a)........ 907,481 51,402 Italmobiliare S.p.A. ......... 3,505,453 ------------ 5,911,063 ------------ Electric Utilities - 0.4% 1,503,000 Edison S.p.A. *............... 3,350,436 ------------ Instruments - 0.0% 40,000 Gefran S.p.A. ................ 238,899 ------------ Insurance - 0.0% 12,393 Fondiaria-Sai S.p.A. ......... 376,042 ------------ Metal Products & Machinery - 0.0% 25,500 Biesse S.p.A. ................ 216,190 4,194 Danieli & Co S.p.A. (a)....... 32,205 ------------ 248,395 ------------ Oil Distribution - 1.0% 693,000 Cam Finanziaria S.p.A. ....... 1,894,580 258,000 ERG S.p.A. ................... 7,130,926 ------------ 9,025,506 ------------ Publishing, Broadcasting & Cinema - 0.6% 1,267,000 C.I.R. S.p.A. - Compagnie Industriali Riunite (a)..... 3,852,082 1,224,896 Cofide S.p.A. - Compagnia Finanziaria de Benedetti.... 1,644,185 57,727 Monrif S.p.A. ................ 95,177 ------------ 5,591,444 ------------ Real Estate Development - 0.0% 34,944 IPI S.p.A. ................... 329,431 ------------ Soaps & Cosmetics - 0.1% 47,233 Mirato S.p.A. ................ 485,300 ------------ Textiles & Apparel - 0.1% 132,000 Stefanel S.p.A. .............. 642,432 ------------ 37,018,532 ------------ JAPAN - 20.8% Agriculture, Food & Beverage - 0.6% 124 Coca-Cola Central Japan Co., Ltd. ....................... 1,001,833 30,300 DyDo Drinco, Inc. ............ 1,038,477 20,000 Fuji Foods, Inc. ............. 67,841 2,000 Fujicco Co., Ltd. ............ 30,308 135,000 Itoham Foods, Inc. (a)........ 550,705 135,400 Katokichi Co., Ltd. (a)....... 886,363
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Agriculture, Food & Beverage continued 10,000 Kinki Coca-Cola Bottling Co., Ltd. ....................... $ 98,590 72,100 Kirin Beverage Corp. (a)...... 1,569,049 22,000 Morinaga Milk Industry Co., Ltd. ....................... 82,960 19,000 Nichiwa Sangyo Co., Ltd. ..... 65,789 42,000 Nissin Sugar Manufacturing Co., Ltd. .................. 129,515 25,000 Tokatsu Foods Co., Ltd. ...... 117,841 ------------ 5,639,271 ------------ Autos - 0.3% 3,000 Diamond Electric Manufacturing Co., Ltd. .................. 18,767 265,000 Fuji Heavy Industries Ltd. ... 1,197,753 7,000 Kinki Sharyo Co., Ltd. *...... 28,185 11,000 Technol Eight Co., Ltd. ...... 43,031 18,000 Topre Corp. .................. 155,260 307,000 Topy Industries Ltd. ......... 1,141,445 ------------ 2,584,441 ------------ Banks & Credit Institutions - 3.2% 15,500 Aichi Bank Ltd. .............. 1,823,128 250,000 Akita Bank Ltd. .............. 1,215,859 90,000 Chiba Kogyo Bank Ltd. *....... 1,807,930 255,000 Daishi Bank Ltd. ............. 1,235,683 155,000 Eighteenth Bank Ltd. (a)...... 749,736 82,000 Higashi-Nippon Bank Ltd. *.... 455,154 39,000 Higo Bank Ltd. ............... 299,286 42,600 Hitachi Credit Corp. ......... 895,163 244,000 Hyakugo Bank Ltd. (a)......... 1,657,480 108,000 Kagawa Bank Ltd. ............. 720,317 10,300 Kita-Nippon Bank Ltd. ........ 529,974 522,000 Kiyo Bank Ltd. ............... 1,117,586 221,000 Mie Bank Ltd. (a)............. 1,203,330 2,000 Miyazaki Bank Ltd. ........... 9,868 63,000 Nanto Bank Ltd. .............. 432,396 292,000 Nippon Shinpan Co., Ltd. ..... 2,472,351 296,000 Nishi-Nippon City Bank Ltd. ....................... 1,468,264 502,000 Orient Corp. * (a)............ 2,291,066 46,000 San-in Godo Bank Ltd. ........ 475,401 47,300 Sanyo Electric Credit Co., Ltd. ....................... 1,016,846 10,100 Sanyo Shinpan Finance Co., Ltd. ....................... 820,458 251,000 Shiga Bank Ltd. .............. 1,753,683 10,300 Shimizu Bank Ltd. ............ 510,009 85,000 Shinki Co., Ltd. ............. 828,282 65,000 Taiko Bank Ltd. .............. 194,714 11,000 Tochigi Bank Ltd. ............ 78,211 80,000 Toho Bank Ltd. (a)............ 391,189 128,000 Yamagata Bank Ltd. ........... 664,247 ------------ 27,117,611 ------------ Basic Minerals & Metals - 1.2% 18,000 Fujikura Ltd. ................ 110,379 380,000 Mitsubishi Materials Corp. (a)......................... 1,342,555 259,000 Mitsui Mining & Smelting Co., Ltd. ....................... 1,503,797
Laudus Trust Semi-Annual Report 73 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Basic Minerals & Metals continued 668,000 Nisshin Steel Co., Ltd. ...... $ 2,307,102 67,100 Osaka Steel Co., Ltd. ........ 1,073,009 81,000 Ryobi Ltd. ................... 466,731 8,000 Sumitomo Pipe & Tube Co., Ltd. ....................... 51,806 44,800 Tokyo Steel Manufacturing Co., Ltd. ....................... 696,670 127,000 Toyo Kohan Co., Ltd. ......... 443,101 49,000 Yamato Kogyo Co., Ltd. ....... 760,687 279,000 Yodogawa Steel Works Ltd. .... 1,745,286 ------------ 10,501,123 ------------ Beer, Liquor & Tobacco - 0.1% 292,000 Mercian Corp. ................ 774,379 118,000 Oenon Holdings, Inc. (a)...... 385,709 ------------ 1,160,088 ------------ Chemicals & Rubber - 1.7% 50,000 Air Water, Inc. (a)........... 463,877 30,100 Arakawa Chemical Industrial Ltd. ....................... 460,119 9,000 Asahi Denka Co., Ltd. ........ 105,621 3,000 Atomix Co., Ltd. ............. 14,643 327,000 Dainippon Ink & Chemicals, Inc. ....................... 1,074,634 268,000 Kureha Chemical Industry Co., Ltd. ....................... 1,267,982 54,000 Nippon Shokubai Co., Ltd. .... 571,401 434,000 Nitto Boseki Co., Ltd. (a).... 1,059,189 183,000 Sakai Chemical Industry Co., Ltd. ....................... 869,048 83,000 Showa Denko K.K. (a).......... 265,454 9,300 SOFT99 Corp. ................. 110,617 9,300 SOFT99 Corp. W/I *............ 96,278 108,000 Sumitomo Rubber Industries Ltd. (a).................... 1,283,630 76,000 Sunstar, Inc. ................ 348,194 3,000 Tigers Polymer Corp. ......... 19,242 55,400 Tokyo Ohka Kogyo Co., Ltd. ... 1,361,815 7,000 Tokyo Printing Ink Manufacturing Co., Ltd. .... 24,978 482,000 Tosoh Corp. (a)............... 2,051,154 68,000 Toyo Tire & Rubber Co., Ltd. ....................... 357,674 772,000 Ube Industries Ltd. .......... 2,081,339 296,000 Yokohama Rubber Co., Ltd. (a)......................... 1,423,930 ------------ 15,310,819 ------------ Construction & Homebuilding - 2.0% 20,000 Asahi Kogyosha Co., Ltd. ..... 87,577 140,000 Asanuma Corp. ................ 304,670 22,000 Bunka Shutter Co., Ltd. ...... 138,396 19,200 C-Cube Corp. ................. 78,492 19,000 Dai-Dan Co., Ltd. (a)......... 133,419 17,000 Daiho Corp. .................. 43,586 9,000 Daiichi Kensetsu Corp. ....... 79,295 32,250 Fujita Corp. * (a)............ 312,271 58,000 Fukuda Corp. ................. 358,731 9,000 Hibiya Engineering Ltd. ...... 86,828
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Construction & Homebuilding continued 27,000 Hitachi Plant Engineering & Construction Co., Ltd. ..... $ 153,436 8,400 Japan Foundation Engineering Co., Ltd. .................. 46,700 55,000 Jgc Corp. (a)................. 1,005,507 2,000 Kaneshita Construction Co., Ltd. ....................... 15,507 3,000 Kawada Construction Co., Ltd. ....................... 12,608 206,000 Kinden Corp. ................. 1,778,677 6,000 Koatsu Kogyo Co., Ltd. ....... 23,366 15,000 Kodensha Co., Ltd. ........... 52,863 24,000 Komai Tekko, Inc. ............ 73,586 237,000 Kumagai Gumi Co., Ltd. * (a)......................... 945,912 134,000 Kyudenko Corp. ............... 944,493 160,000 Maeda Corp. .................. 1,082,643 109,000 Mitsui Home Co., Ltd. (a)..... 610,784 75,500 NEC Networks & System Integration Corp. .......... 766,974 52,000 Nippo Corp. .................. 382,097 69,000 Nippon Densetsu Kogyo Co., Ltd. ....................... 482,088 17,000 Nippon Dentsu Co., Ltd. ...... 62,159 22,000 Nippon Denwa Shisetsu Co., Ltd. ....................... 88,000 162,000 Nippon Road Co., Ltd. ........ 401,075 13,000 Ohmoto Gumi Co., Ltd. ........ 107,665 20,000 Oki Wintech Co., Ltd. ........ 122,996 12,200 Oriental Construction Co., Ltd. ....................... 62,129 173,000 Penta-Ocean Construction Co., Ltd. *...................... 307,894 11,300 Raito Kogyo Co., Ltd. ........ 48,685 15,000 Sanki Engineering Co., Ltd. ....................... 140,749 8,000 Sankyo Frontier Co., Ltd. *... 38,767 22,000 Sanyo Engineering & Construction, Inc. ......... 145,374 9,000 Seibu Electric Industry Co., Ltd. ....................... 57,013 1,800 Sho-Bond Corp. ............... 19,063 24,000 Taihei Dengyo Kaisha Ltd. .... 172,335 48,000 Taikisha Ltd. ................ 767,154 274,000 Taisei Corp. ................. 1,127,382 5,000 Taisei Oncho Co., Ltd. ....... 25,771 77,000 Taisei Rotec Corp. ........... 179,780 6,000 Takahashi Curtain Wall Corp. ...................... 20,511 4,000 Takasago Thermal Engineering Co., Ltd. .................. 30,062 2,300 Techno Ryowa Ltd. ............ 18,238 104,000 Toda Corp. ................... 525,040 111,000 Toenec Corp. ................. 510,502 15,000 Tokyo Energy & Systems, Inc. ....................... 112,203 60,000 Toshiba Plant Systems & Services Corp. (a).......... 336,740 24,000 Totetsu Kogyo Co., Ltd. ...... 134,273 7,200 Tsuchiya Home Co., Ltd. ...... 26,833 6,200 Yokogawa Construction Co., Ltd. ....................... 24,035 24,000 Yondenko Corp. ............... 139,559
74 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Construction & Homebuilding continued 50,000 Yurtec Corp. ................. $ 304,846 94,000 Zenitaka Corp. ............... 311,401 ------------ 16,368,740 ------------ Construction Materials - 0.9% 143,000 Central Glass Co., Ltd. (a)... 821,463 57,000 DC Co., Ltd. ................. 192,344 34,100 Fujimi, Inc. ................. 564,227 152,000 Maeda Road Construction Co., Ltd. (a).................... 1,143,683 5,000 Mitani Sekisan Co., Ltd. ..... 26,388 228,000 Nihon Yamamura Glass Co., Ltd. ....................... 685,004 69,000 Nittetsu Mining Co., Ltd. .... 372,661 275,000 Noritake Co., Ltd. ........... 1,313,215 47,100 Noritz Corp. ................. 794,683 4,000 Sankyo Rikagaku Co., Ltd. .... 47,930 71,000 Sanwa Shutter Corp. .......... 426,626 173,000 Toto Ltd. (a)................. 1,371,805 64,000 Yokogawa Bridge Corp. ........ 394,714 ------------ 8,154,743 ------------ Consumer Durables - 0.1% 12,100 Icom, Inc. ................... 362,467 152,000 Japan Radio Co., Ltd. * (a)... 641,480 15,000 Zojirushi Corp. .............. 121,586 ------------ 1,125,533 ------------ Drugs & Pharmaceuticals - 0.2% 64,000 Kaken Pharmaceutical Co., Ltd. (a)......................... 475,912 90,000 Nikken Chemicals Co., Ltd. ... 275,947 21,000 Nissui Pharmaceutical Co., Ltd. ....................... 143,392 48,300 Torii Pharmaceutical Co., Ltd. ....................... 1,053,238 ------------ 1,948,489 ------------ Electric Utilities - 0.1% 9,300 Okinawa Electric Power Co., Inc. ....................... 509,656 ------------ Financial Investments - 0.0% 300 JAFCO Co., Ltd. .............. 19,639 4,160 Nishio Rent All Co., Ltd. .... 53,182 8,000 Sankyo Frontier Co., Ltd. .... 42,291 ------------ 115,112 ------------ Forest Products & Paper - 0.0% 2,000 Nihon Decoluxe Co., Ltd. ..... 13,427 ------------ Furniture & Household Items - 0.6% 3,000 Koito Industries Ltd. ........ 13,744 500 Kuwayama Corp. ............... 3,683 390,000 Mitsubishi Plastics, Inc. .... 1,116,740 54,400 NAMCO BANDAI Holdings, Inc. * (a)......................... 905,868 13,800 Riso Kagaku Corp. ............ 333,753 13,800 Riso Kagaku Corp. W/I *....... 333,753 44,100 Roland Corp. ................. 860,630 185,000 Sekisui Chemical Co., Ltd. ... 1,318,635
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Furniture & Household Items continued 36,000 Tachikawa Corp. .............. $ 247,401 15,000 Toso Co., Ltd. ............... 43,348 74,000 Tsutsunaka Plastic Industry Co., Ltd. .................. 321,427 ------------ 5,498,982 ------------ Gas & Other Public Utilities - 0.1% 70,000 Kanto Natural Gas Development Co., Ltd. .................. 547,665 5,000 Keiyo Gas Co., Ltd. .......... 29,295 17,000 Otaki Gas Co., Ltd. .......... 82,379 ------------ 659,339 ------------ Government Aircraft & Defense - 0.2% 749,000 Mitsui Engineering & Shipbuilding Co., Ltd. (a)......................... 1,781,762 ------------ Information & Services - 0.4% 14,000 Chodai Co., Ltd. ............. 66,978 24,900 CTI Engineering Co., Ltd. .... 223,771 8 Eight Consultants Co., Ltd. ....................... 29,110 16,800 Eikoh, Inc. .................. 158,675 500 H.I.S. Co., Ltd. *............ 10,969 33,000 Higashi Nihon House Co., Ltd. *........................... 88,388 18,600 Hitachi Systems & Services Ltd. ....................... 357,251 16,900 Horipro, Inc. ................ 178,530 10,000 Ichishin Co., Ltd. ........... 37,004 15,000 Johnan Academic Preparatory Institute, Inc. ............ 66,344 4,300 Keiiyu Co., Ltd. ............. 55,313 183,000 Kinki Nippon Tourist Co., Ltd. ....................... 564,317 4,800 Nihon Jumbo Co., Ltd. ........ 37,216 48,000 Nomura Co., Ltd. (a).......... 217,374 5,000 Original Engineering Consultants Co., Ltd. ...... 22,467 9,700 Secom Joshinetsu Co., Ltd. *........................... 210,238 50,300 TKC Corp. .................... 888,559 2,900 Toyo TEC Co., Ltd. ........... 32,577 16,100 Wesco, Inc. .................. 66,244 ------------ 3,311,325 ------------ Instruments - 0.1% 13,000 Aichi Tokei Denki Co., Ltd. ....................... 43,410 3,800 Fukuda Denshi Co., Ltd. ...... 133,921 72,000 Hitachi Medical Corp. ........ 918,554 18,000 Kawasumi Laboratories, Inc. ....................... 126,714 ------------ 1,222,599 ------------ Insurance - 0.0% 42,000 Nisshin Fire & Marine Insurance Co., Ltd. ........ 167,260 ------------ IT Hardware - 1.4% 80,000 Alps Electric Co., Ltd. (a)... 1,299,031 160,500 Citizen Watch Co., Ltd. (a)... 1,308,040 46,800 Daiichikosho Co., Ltd. ....... 1,034,960 48,600 Futaba Corp. ................. 1,216,070 156,000 Hitachi Kokusai Electric, Inc. ....................... 1,539,383
Laudus Trust Semi-Annual Report 75 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued IT Hardware continued 157,000 Makino Milling Machine Co., Ltd. (a).................... $ 1,271,216 282,000 Minebea Co., Ltd. ............ 1,162,784 130,500 Mitsumi Electric Co., Ltd. ... 1,324,546 15,000 Nippon Antenna Co., Ltd. ..... 129,119 20,000 Star Micronics Co., Ltd. ..... 253,040 328,000 Toshiba TEC Corp. ............ 1,447,824 ------------ 11,986,013 ------------ Land & Water Transportation - 0.5% 2,000 Chuo Warehouse Co., Ltd. ..... 21,674 4,400 Daiwa Logistics Co., Ltd. .... 39,193 125,000 Hitachi Transport System Ltd. ....................... 1,112,335 8,000 Isewan Terminal Service Co., Ltd. ....................... 44,264 3,000 Japan Oil Transportation Co., Ltd. ....................... 10,176 900 K.R.S. Corp. ................. 13,306 3,000 Kawanishi Warehouse Co., Ltd. ....................... 21,410 8,000 Maruzen Showa Unyu Co., Ltd. (a)......................... 28,053 6,000 Meiko Trans Co., Ltd. ........ 61,322 119,000 Mitsubishi Logistics Corp. (a)......................... 1,403,885 40,000 Nagoya Railroad Co., Ltd. (a)......................... 142,731 78,210 Seino Transportation Co., Ltd. ....................... 714,571 9,000 Tokyo Kisen Co., Ltd. ........ 58,678 19,600 Yusen Air & Sea Service Co., Ltd. ....................... 675,207 ------------ 4,346,805 ------------ Mainframe & Minicomputers - 0.0% 43,000 Tsuzuki Denki Co., Ltd. ...... 198,520 ------------ Metal Products & Machinery - 2.3% 24,000 Aida Engineering Ltd. ........ 153,304 181,000 Amada Co., Ltd. .............. 1,443,217 144,000 Asahi Diamond Industrial Co., Ltd. ....................... 1,122,819 73,000 CKD Corp. (a)................. 659,251 29,600 Corona Corp. ................. 492,116 123,000 Fujitec Co., Ltd. ............ 688,150 72,400 Glory Ltd. ................... 1,403,348 86,500 Heiwa Corp. (a)............... 1,326,079 124,000 Hokkai Can Co., Ltd. ......... 394,396 16,000 Ishikawajima Transport Machinery Co., Ltd. ........ 53,568 440,000 Ishikawajima-Harima Heavy Industries Co., Ltd. *...... 887,753 115,000 Kioritz Corp. *............... 361,718 5,000 Koken Ltd. ................... 53,744 96,000 Komori Corp. ................. 1,708,547 244,000 Meidensha Corp. (a)........... 685,780 114,500 Mori Seiki Co., Ltd. ......... 1,548,525 2,000 Nakano Refrigerators Co., Ltd. ....................... 22,555 108,000 NGK Spark Plug Co., Ltd. (a)......................... 1,565,287 3,000 Nihon Kaiheiki Industry Co., Ltd. ....................... 28,018
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Metal Products & Machinery continued 107,000 Nippon Thompson Co., Ltd. (a)......................... $ 806,035 1,000 Nireco Corp. ................. 8,546 35,100 Nissei Plastic Industrial Co., Ltd. ....................... 331,826 28,000 Nissin Electric Co., Ltd. .... 111,753 18,900 Nitto Kogyo Corp. ............ 274,258 8,000 Sanso Electric Co., Ltd. ..... 59,912 30,000 Sekisui Jushi Corp. .......... 238,678 133,000 ShinMaywa Industries Ltd. .... 815,577 51,000 Sinko Kogyo Co., Ltd. ........ 141,542 113,000 Sintokogio Ltd. .............. 1,032,432 11,000 Sumitomo Heavy Industries Ltd. ....................... 78,018 63,000 Takuma Co., Ltd. (a).......... 497,894 6,000 Toyo Engineering Works Ltd. ....................... 14,009 50,000 Wakita & Co., Ltd. ........... 514,537 ------------ 19,523,192 ------------ Miscellaneous Finance - 0.2% 4,300 Daiko Clearing Services Corp. ...................... 41,712 96,000 Japan Asia Investment Co., Ltd. ....................... 503,260 72,000 Marusan Securities Co., Ltd. ....................... 568,387 62,000 Osaka Securities Finance Co., Ltd. ....................... 300,441 ------------ 1,413,800 ------------ Oil & Coal Resources - 0.0% 5,700 Japan Petroleum Exploration Co., Ltd. .................. 305,841 ------------ Oil Distribution - 0.5% 48,900 AOC Holdings, Inc. *.......... 973,692 461,000 Cosmo Oil Co., Ltd. (a)....... 2,497,930 122,400 Itochu Enex Co., Ltd. ........ 974,886 37,000 Toa Oil Co., Ltd. ............ 97,145 ------------ 4,543,653 ------------ Photooptical, Micros & Office Machinery - 0.0% 5,700 Noritsu Koki Co., Ltd. ....... 103,454 ------------ Publishing, Broadcasting & Cinema - 0.1% 500 Broadcasting System of Niigata, Inc. (BSN)......... 3,718 420 Impress Holdings, Inc. * (a)......................... 240,529 11,000 RKB Mainichi Broadcasting Corp. ...................... 91,101 79,000 Toei Co., Ltd. (a)............ 453,815 ------------ 789,163 ------------ Real Estate Development - 0.7% 5,000 Airport Facilities Co., Ltd. ....................... 26,476 5,000 Aoki Marine Co., Ltd. ........ 18,282 14,000 Cowboy Co., Ltd. ............. 45,639 320,000 Hankyu Holdings, Inc. ........ 1,299,736 180,000 Hanshin Electric Railway Co., Ltd. (a).................... 1,374,977 594,000 HASEKO Corp. * (a)............ 1,836,951 7,000 Hosoda Corp. ................. 43,789 45,300 Japan Airport Terminal Co., Ltd. ....................... 439,031 13,600 Japan General Estate Co., Ltd. *........................... 178,298
76 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Real Estate Development continued 300 Joint Corp. .................. $ 13,982 32,800 Nisshin Fudosan Co., Ltd. (a)......................... 411,806 89,000 Recruit Cosmos Co., Ltd. *.... 464,996 8,000 Sekisui House Ltd. ........... 98,044 300 Shinnihon Corp. .............. 3,256 8,500 Starts Corp., Inc. *.......... 107,093 ------------ 6,362,356 ------------ Restaurants, Hotels & Theaters - 0.3% 8,750 Colowide Co., Ltd. ........... 78,403 32,600 Daisyo Corp. (a).............. 396,657 6,000 Friendly Corp. ............... 27,753 20,000 Gourmet Kineya Co., Ltd. ..... 160,176 6,000 Green House Co., Ltd. ........ 126,872 4,700 Kyoritsu Maintenance Co., Ltd. (a)......................... 122,573 54,000 Royal Holdings Co., Ltd. ..... 662,749 72,200 SKYLARK Co., Ltd. (a)......... 1,064,235 ------------ 2,639,418 ------------ Retail - 0.8% 10,000 Aichi Toyota Motor Co., Ltd. ....................... 211,454 50,400 Aoki International Co., Ltd. ....................... 778,425 55,100 Aoyama Trading Co., Ltd. ..... 1,553,480 13,000 Blue Grass Co., Ltd. ......... 173,753 20,000 Daiwa Co., Ltd. .............. 52,687 7,400 Haruyama Trading Co., Ltd. ... 119,639 99,000 Izumiya Co., Ltd. ............ 805,084 13,300 Jeans Mate Corp. ............. 160,537 4,100 Konaka Co., Ltd. ............. 60,904 27,000 Laox Co., Ltd. (a)............ 82,308 1,700 Ministop Co., Ltd. ........... 33,775 147,000 Mizuno Corp. ................. 738,238 9,200 Poplar Co., Ltd. ............. 127,260 1,500 Sazaby, Inc. *................ 35,683 10 Seven & I Holdings Co., Ltd. *........................... 331 29,000 Takashimaya Co., Ltd. (a)..... 369,463 3,200 Three F Co., Ltd. ............ 27,545 3,000 Tokyo Derica Co., Ltd. ....... 25,110 147,000 Uny Co., Ltd. ................ 1,940,142 ------------ 7,295,818 ------------ Soaps & Cosmetics - 0.0% 85 ADERANS Co., Ltd. ............ 2,322 4,300 Mandom Corp. (a).............. 106,647 ------------ 108,969 ------------ Software - 0.2% 71,400 Capcom Co., Ltd. (a).......... 786,343 44,400 Fujitsu Business Systems Ltd. ....................... 656,807 6,300 INES Corp. ................... 43,240 5,000 Japan Process Development Co., Ltd. ....................... 48,899 ------------ 1,535,289 ------------ Textiles & Apparel - 0.5% 7,000 Fuji Corp. ................... 70,925
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, JAPAN continued Textiles & Apparel continued 5,000 Fujix Ltd. ................... $ 31,718 28,000 Ichikawa Co., Ltd. ........... 115,700 59,000 Japan Wool Textile Co., Ltd. ....................... 469,401 8,000 Jichodo Co., Ltd. ............ 64,564 27,000 King Co., Ltd. ............... 106,097 393,000 Kurabo Industries Ltd. ....... 1,094,167 5,000 Morishita Co., Ltd. .......... 48,128 20,000 ONWARD KASHIYAMA Co., Ltd. ... 317,181 151,000 Tokyo Style Co., Ltd. ........ 1,599,137 10,000 Yagi Corp. ................... 50,220 ------------ 3,967,238 ------------ Wholesale - 1.5% 9,200 Charle Co., Ltd. ............. 70,844 35,000 Daiwabo Information System Co., Ltd. (a)............... 576,035 4,000 Denkyosha Co., Ltd. .......... 40,599 800 Furusato Industries Ltd. ..... 10,918 75,000 Kamei Corp. (a)............... 910,573 49,000 Kanaden Corp. ................ 306,520 42,200 Kato Sangyo Co., Ltd. ........ 694,162 8,500 Kobayashi Pharmaceutical Co., Ltd. *...................... 287,577 94,000 MEDICEO Holdings Co., Ltd. (a)......................... 1,499,031 25,000 Mitani Corp. ................. 211,454 157,500 Mitsui Mining Co., Ltd. *..... 457,930 35,000 Mitsuuroko Co., Ltd. * (a).... 283,700 31,000 Nagahori Corp. ............... 121,269 21,000 Nissho Electronics Corp. ..... 144,132 43,200 Ryosan Co., Ltd. ............. 1,126,626 10,800 Ryoyo Electro Corp. .......... 161,762 64,000 San-Ai Oil Co., Ltd. ......... 327,048 65,000 Sanshin Electronics Co., Ltd. ....................... 658,018 27,000 Sekido Co., Ltd. *............ 63,515 37,000 Shinko Shoji Co., Ltd. ....... 386,952 150,000 Sinanen Co., Ltd. ............ 892,070 45,600 Suzuken Co. Ltd. ............. 1,317,780 1,400 Takachiho Koheki Co., Ltd. ... 15,270 220,000 Teikoku Oil Co., Ltd. (a)..... 2,374,449 5,000 Tokiwa Yakuhin Co., Ltd. ..... 20,617 13,000 Totech Corp. ................. 96,211 2,500 Tsuzuki Densan Co., Ltd. ..... 14,273 7,000 Uchida Yoko Co., Ltd. ........ 36,203 35,000 Uehara Sei Shoji Co., Ltd. ... 215,242 3,000 Yokohama Maruuo Co., Ltd. .... 23,789 26,000 Yuasa Funashoku Co., Ltd. .... 78,344 ------------ 13,422,913 ------------ 181,732,762 ------------ MALAYSIA - 0.0% Real Estate Development - 0.0% 24,000 Rekapacific Berhad * (b)...... -- ------------
Laudus Trust Semi-Annual Report 77 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK continued NETHERLANDS 3.9% Chemicals & Rubber - 0.7% 171,200 DSM NV........................ $ 6,725,384 ------------ Forest Products & Paper - 0.0% 8,400 Crown Van Gelder NV........... 211,981 ------------ Information & Services - 0.5% 9,200 Grontmij NV................... 635,150 22,464 Koninklijke BAM Groep NV...... 2,062,428 97,342 Vedior NV..................... 1,380,323 ------------ 4,077,901 ------------ Land & Water Transportation - 0.1% 18,000 H.E.S. Beheer NV.............. 243,346 14,400 Koninklijke Frans Maas Groep NV.......................... 428,288 ------------ 671,634 ------------ Metal Products & Machinery - 0.1% 4,955 Koninklijke Nedschroef Holding NV.......................... 155,709 7,500 Stork NV...................... 371,327 ------------ 527,036 ------------ Oil Distribution - 0.4% 110,435 Koninklijke Vopak NV.......... 3,117,368 ------------ Publishing, Broadcasting & Cinema - 0.8% 143 Roto Smeets de Boer........... 8,592 232,500 VNU NV (a).................... 7,306,225 46,851 Wegener NV.................... 591,162 ------------ 7,905,979 ------------ Real Estate Development - 0.4% 40,800 Rodamco Europe NV............. 3,525,230 ------------ Restaurants, Hotels & Theaters - 0.1% 29,763 Athlon Holding NV............. 786,503 ------------ Retail - 0.1% 15,200 Macintosh Retail Group NV..... 639,308 ------------ Wholesale - 0.7% 301,000 Buhrmann NV................... 3,635,222 49,200 Univar NV..................... 2,125,506 ------------ 5,760,728 ------------ 33,949,052 ------------ NEW ZEALAND - 0.4% Agriculture, Food & Beverage - 0.0% 185,627 AFFCO Holdings Ltd. *......... 59,046 101,057 Sanford Ltd. ................. 307,476 8,873 Wrightson Ltd. ............... 15,278 ------------ 381,800 ------------ Airlines - 0.0% 80,988 Air New Zealand Ltd. ......... 64,404 ------------ Biotechnology - 0.0% 436,530 Rubicon Ltd. *................ 316,954 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, NEW ZEALAND continued Construction Materials - 0.2% 187,957 Fletcher Building Ltd. (a).... $ 1,029,382 ------------ Electric Utilities - 0.0% 5,277 TrustPower Ltd. .............. 21,493 ------------ Forest Products & Paper - 0.0% 3,170 Carter Holt Harvey Ltd. ...... 5,524 ------------ Health Care & Hospital - 0.0% 134,295 Metlifecare Ltd. ............. 347,315 ------------ Land & Water Transportation - 0.0% 138,033 Mainfreight Ltd. ............. 334,075 ------------ Publishing, Broadcasting & Cinema - 0.2% 110,285 Sky Network Television Ltd. *........................... 469,776 ------------ Real Estate Development - 0.0% 146,473 CDL Hotels New Zealand Ltd. ....................... 58,746 ------------ Retail - 0.0% 38,184 Hallenstein Glasson Holdings Ltd. ....................... 132,021 ------------ 3,161,490 ------------ NORWAY - 0.3% Oil Drilling & Services - 0.3% 56,000 Kvaerner ASA *................ 1,796,023 90,004 Ocean Rig ASA *............... 1,034,363 ------------ 2,830,386 ------------ 2,830,386 ------------ PORTUGAL - 0.6% Electric Utilities - 0.6% 1,648,000 Electricidade de Portugal SA.......................... 4,594,556 ------------ Restaurants, Hotels & Theaters - 0.0% 35,747 Ibersol - SGPS SA............. 231,970 ------------ 4,826,526 ------------ SINGAPORE - 0.7% Agriculture, Food & Beverage - 0.0% 636,000 Asia Food & Properties Ltd. *........................... 140,982 1,218,200 Golden Agri-Resources Ltd. *........................... 262,838 ------------ 403,820 ------------ Airlines - 0.0% 90,000 Singapore Airport Terminal Services Ltd. .............. 118,638 ------------ Autos - 0.0% 269,000 Hong Leong Asia Ltd. ......... 214,666 ------------ Banks & Credit Institutions - 0.0% 111,425 Hong Leong Finance Ltd. ...... 243,703 ------------ Financial Investments - 0.3% 1,554,000 K1 Ventures Ltd. *............ 321,511 242,360 Kim Eng Holdings Ltd. ........ 189,109 500,000 Metro Holdings Ltd. .......... 184,725 199,500 Overseas Union Enterprise Ltd. ....................... 1,126,219 ------------ 1,821,564 ------------
78 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SINGAPORE continued Information & Services - 0.0% 122,000 United Engineers Ltd. ........ $ 128,368 ------------ IT Hardware - 0.0% 161,160 WBL Corp., Ltd. .............. 335,333 ------------ Land & Water Transportation - 0.0% 15,000 Neptune Orient Lines Ltd. .... 27,310 187,000 SBS Transit Ltd. ............. 235,449 ------------ 262,759 ------------ Metal Products & Machinery - 0.0% 28,120 Amtek Engineering Ltd. *...... 19,116 ------------ Miscellaneous Finance - 0.0% 34,000 G.K. Goh Holdings Ltd. ....... 14,672 244,250 UOB-Kay Hian Holdings Ltd. ... 147,269 ------------ 161,941 ------------ Oil Distribution - 0.1% 269,000 Singapore Petroleum Co., Ltd. (a)......................... 938,169 ------------ Real Estate Development - 0.3% 396,990 Ascott Group Ltd. ............ 172,482 188,200 Jardine Cycle & Carriage Ltd. ....................... 1,234,864 ------------ 1,407,346 ------------ Restaurants, Hotels & Theaters - 0.0% 125,000 Hotel Plaza Ltd. ............. 75,368 122,210 Hotel Properties Ltd. ........ 111,973 1,036,000 Stamford Land Corp., Ltd. .... 183,721 ------------ 371,062 ------------ Retail - 0.0% 19,000 Wearnes International (1994) Ltd. ....................... 14,320 ------------ Wholesale - 0.0% 169,000 GP Industries Ltd. ........... 74,425 ------------ 6,515,230 ------------ SOUTH KOREA - 3.7% Agriculture, Food & Beverage - 0.1% 1,425 Daehan Flour Mills Co., Ltd. ....................... 186,422 1,730 Dongwon F&B Co., Ltd. ........ 86,218 1,840 Lotte Samkang Co., Ltd. ...... 324,478 181 Namyang Dairy Products Co., Ltd. ....................... 97,664 ------------ 694,782 ------------ Banks & Credit Institutions - 0.2% 158,930 Pusan Bank.................... 1,728,825 ------------ Basic Minerals & Metals - 0.2% 59,520 Hyundai Hysco................. 986,866 34,620 INI Steel Co. ................ 895,860 ------------ 1,882,726 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SOUTH KOREA continued Chemicals & Rubber - 0.2% 4,970 Hankook Tire CO LTD. ......... $ 65,733 25,230 Honam Petrochemical Corp. .... 1,257,389 ------------ 1,323,122 ------------ Construction & Homebuilding - 0.6% 14,380 Halla Engineering & Construction Corp. ......... 388,649 69,110 Hyundai Development Co. ...... 2,185,767 15,090 Hyundai Engineering & Construction Co., Ltd. *.... 477,257 10,439 Korea Development Corp. ...... 299,143 13,102 Sambu Construction Co., Ltd. ....................... 294,462 3,920 Samwhan Corp. ................ 68,564 7,400 Tae Young Corp. .............. 269,504 ------------ 3,983,346 ------------ Construction Materials - 0.0% 8,520 Asia Cement Co., Ltd. ........ 316,010 3,970 Hyundai Cement Co., Ltd. ..... 109,770 ------------ 425,780 ------------ Drugs & Pharmaceuticals - 0.2% 13,050 Dong-A Pharmaceutical Co., Ltd. ....................... 781,699 2,820 Green Cross Holdings Corp. ... 113,514 4,280 Il Dong Pharmaceutical Co., Ltd. ....................... 174,334 2,770 Yuhan Corp. .................. 363,705 ------------ 1,433,252 ------------ Forest Products & Paper - 0.1% 54,980 Hansol Paper Co., Ltd. ....... 658,664 15,000 Shinmoorim Paper Manufacturing Co., Ltd. .................. 173,232 ------------ 831,896 ------------ Gas & Other Public Utilities - 0.1% 430 Pusan City Gas Co., Ltd. ..... 9,520 5,939 Samchully Co., Ltd. .......... 574,889 6,660 Seoul City Gas Co., Ltd. ..... 280,851 ------------ 865,260 ------------ Government Aircraft & Defense - 0.3% 5,740 Hyundai Heavy Industries Co., Ltd. ....................... 426,897 21,670 Hyundai Mipo Dockyard Co., Ltd. ....................... 1,557,647 48,110 Samsung Heavy Industries Co., Ltd. ....................... 700,855 ------------ 2,685,399 ------------ Information & Services - 0.2% 94,590 Doosan Heavy Industries & Construction Co., Ltd. ..... 1,785,914 19,920 Samho International Co., Ltd. ....................... 323,600 ------------ 2,109,514 ------------ Instruments - 0.0% 13,980 INTOPS Co., Ltd. ............. 298,117 ------------
Laudus Trust Semi-Annual Report 79 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SOUTH KOREA continued Insurance - 0.4% 69,310 Dongbu Insurance Co., Ltd. ... $ 1,006,370 2,440 Hyundai Marine & Fire Insurance Co., Ltd. (HDMF)...................... 24,204 135,880 Korean Reinsurance Co. ....... 1,250,189 40,220 LG Insurance Co., Ltd. ....... 526,167 12,700 Oriental Fire & Marine Insurance Co., Ltd. ........ 449,137 ------------ 3,256,067 ------------ IT Hardware - 0.0% 67,210 KEC Corp. .................... 109,827 5,200 Sam Young Electronics Co., Ltd. ....................... 39,620 ------------ 149,447 ------------ Metal Products & Machinery - 0.2% 133,800 Doosan Infracore Co., Ltd. ... 1,513,169 37,380 STX Corp. .................... 603,654 ------------ 2,116,823 ------------ Miscellaneous Finance - 0.2% 58,690 Daewoo Securities Co., Ltd. *........................... 722,797 25,840 Samsung Securities Co., Ltd. ....................... 1,089,669 ------------ 1,812,466 ------------ Photooptical, Micros & Office Machinery - 0.0% 3,610 Sindo Ricoh Co., Ltd. ........ 207,245 ------------ Retail - 0.3% 23,740 Hyundai Department Store Co., Ltd. ....................... 1,594,953 8,070 Hyundai Department Store H&S Co., Ltd. .................. 382,849 2,030 KCC Corp. .................... 418,296 ------------ 2,396,098 ------------ Soaps & Cosmetics - 0.1% 17,310 LG Household & Health Care Ltd. ....................... 993,741 ------------ Software - 0.0% 8,970 POSDATA Co., Ltd. ............ 339,148 ------------ Textiles & Apparel - 0.2% 66,408 Cheil Industries, Inc. ....... 1,425,666 43,780 Hyosung Corp. *............... 555,956 ------------ 1,981,622 ------------ Wholesale - 0.1% 80,630 LG International Corp. ....... 1,193,917 ------------ 32,708,593 ------------ SPAIN - 3.7% Beer, Liquor & Tobacco - 0.6% 111,600 Altadis....................... 4,998,296 ------------ Chemicals & Rubber - 0.0% 110,000 La Seda de Barcelona SA, Class B *......................... 360,872 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SPAIN continued Construction & Homebuilding - 1.0% 230,000 Abengoa SA.................... $ 4,046,385 225,000 Obrascon Huarte Lain SA....... 3,374,392 216,000 Uralita SA.................... 1,160,272 ------------ 8,581,049 ------------ Electric Utilities - 0.3% 85,000 Union Fenosa SA (a)........... 2,806,946 ------------ Information & Services - 0.0% 512 Funespana SA.................. 5,857 ------------ Instruments - 0.0% 18,951 Indo Internacional SA......... 154,632 ------------ Oil Distribution - 0.0% 1,310 Compania Espanola de Petroleos SA (CEPSA).................. 71,313 ------------ Real Estate Development - 1.3% 107,200 Corporacion Financiera Alba SA.......................... 4,570,638 7,585 Inmobiliaria Colonial......... 460,305 232,000 Inmobiliaria Urbis SA (a)..... 5,227,422 18,143 TESTA, Inmuebles en Renta SA.. 440,412 ------------ 10,698,777 ------------ Restaurants, Hotels & Theaters - 0.1% 77,000 NH Hoteles SA................. 1,189,954 ------------ Textiles & Apparel - 0.0% 39,029 Tavex Algodonera.............. 161,810 ------------ Wholesale - 0.4% 69,135 Compania de Distribucion Integral Logista SA (a)..... 3,572,438 376 Pescanova SA.................. 11,188 394 Unipapel SA *................. 8,949 ------------ 3,592,575 ------------ 32,622,081 ------------ SWEDEN - 3.0% Banks & Credit Institutions - 0.4% 2,946 Hagstromer & Oviberg AB....... 78,484 168,000 Skandinaviska Enskilda Banken AB, Class A (a)............. 3,077,717 ------------ 3,156,201 ------------ Basic Minerals & Metals - 0.3% 580,000 Boliden AB *.................. 2,850,913 ------------ Cellular & Wireless - 0.1% 114,000 Tele2 AB, Class B (a)......... 1,161,885 ------------ Financial Investments - 0.4% 147,000 Ratos AB, Class B............. 3,451,595 1,207 Vostok Nafta Investment Ltd. *........................... 48,039 ------------ 3,499,634 ------------ Government Aircraft & Defense - 0.4% 213,000 Saab AB....................... 3,613,570 ------------ Health Care & Hospital - 0.6% 360,000 Gambro AB, Class A (a)........ 5,457,220 ------------
80 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SWEDEN continued Metal Products & Machinery - 0.7% 318,000 AB SKF, Class B............... $ 4,143,615 45,800 SSAB Svenskt Stal AB, Class B (a)......................... 1,314,700 ------------ 5,458,315 ------------ Publishing, Broadcasting & Cinema - 0.0% 9,202 Stralfors AB, Class B......... 82,508 ------------ Real Estate Development - 0.1% 32,200 Fabege AB..................... 573,279 54,681 Hufvudstaden AB, Class A...... 366,835 ------------ 940,114 ------------ Software - 0.0% 840,000 Bure Equity AB *.............. 232,997 14,464 Observer AB................... 56,727 ------------ 289,724 ------------ Wholesale - 0.0% 42,938 Midway Holding AB, Class B.... 174,495 ------------ 26,684,579 ------------ SWITZERLAND - 6.3% Agriculture, Food & Beverage - 0.1% 1,500 Barry Callebaut AG *.......... 442,745 1,020 Bell Holding AG............... 788,131 ------------ 1,230,876 ------------ Banks & Credit Institutions - 0.6% 187 Banque Cantonale du Jura...... 56,351 9,977 Banque Cantonale Vaudoise..... 2,825,353 4,905 Berner Kantonalbank (a)....... 698,494 698 Graubuendner Kantonalbank..... 468,677 3,220 St. Galler Kantonalbank....... 1,027,555 ------------ 5,076,430 ------------ Biotechnology - 0.5% 6,600 Serono SA, Class B (a)........ 4,339,824 ------------ Chemicals & Rubber - 0.2% 98,000 Clariant AG *................. 1,408,438 ------------ Communications Utilities - 0.0% 8,000 Ascom Holding AG, Class R..... 117,756 ------------ Construction & Homebuilding - 0.1% 16,000 Batigroup Holding AG.......... 257,147 840 Zschokke Holding SA........... 535,466 ------------ 792,613 ------------ Construction Materials - 0.0% 546 Vetropack Holding AG.......... 404,163 ------------ Electric Utilities - 0.1% 1,113 Compagnie vaudoise d'electricite (CVE), Class B........................... 1,169,587 ------------
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SWITZERLAND continued Financial Investments - 0.1% 5,944 AIG Private Equity Ltd. *..... $ 631,969 3,000 Private Equity Holding AG *... 81,015 1,689 Sustainable Performance Group *........................... 463,294 ------------ 1,176,278 ------------ Forest Products & Paper - 0.1% 2,117 Industrieholding Cham AG...... 711,555 ------------ Furniture & Household Items - 0.1% 7,200 Quadrant AG *................. 898,470 ------------ Instruments - 0.4% 1,500 Harwanne Compagnie de participations industielles et financieres SA........... 279,265 4,600 Inficon Holding AG *.......... 650,440 5,680 Leica Geosystems AG........... 2,571,844 ------------ 3,501,549 ------------ Insurance - 1.4% 86,400 Baloise Holding AG, Class R... 4,339,360 11,554 Helvetia Patria Holding....... 2,142,605 33,300 Swiss Life Holding * (a)...... 4,713,770 7,874 Waadt Versicherungen Holding *........................... 866,980 ------------ 12,062,715 ------------ IT Hardware - 0.1% 10,200 Huber & Suhner AG............. 817,292 234 Lem Holding SA *.............. 21,426 ------------ 838,718 ------------ Land & Water Transportation - 0.1% 16,574 Jungfraubahn Holding AG....... 580,128 ------------ Metal Products & Machinery - 1.3% 272 AFG Arbonia-Forster Holding AG.......................... 78,183 4,400 Bucher Industries AG *........ 370,576 204 Conzzeta Holding AG........... 269,541 1,440 Feintool International Holding AG (a)...................... 380,529 1,200 Gurit-Heberlein AG............ 1,135,837 43,200 Saurer AG *................... 2,920,723 5,040 SIG Holding AG................ 1,284,145 5,355 Sulzer AG..................... 2,714,325 23,400 Unaxis Holding AG *........... 3,097,219 ------------ 12,251,078 ------------ Real Estate Development - 0.5% 360 MCH Messe Schweiz Holding AG.......................... 102,921 37,600 PSP Swiss Property AG *....... 1,888,425 12,700 Unique Zurich Airport *....... 2,139,237 ------------ 4,130,583 ------------ Restaurants, Hotels & Theaters - 0.0% 1,760 Moevenpick Holding AG *....... 403,894 ------------ Retail - 0.2% 16,699 Charles Voegele Holding AG.... 1,361,261 ------------
Laudus Trust Semi-Annual Report 81 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SWITZERLAND continued Wholesale - 0.4% 301 Daetwyler Holding AG.......... $ 912,861 420 Eichhof Holding AG............ 457,580 1,633 Metraux Services Holding SA... 261,820 1,950 Schweizerhall Holding AG *.... 176,287 7,360 Valora Holding AG............. 1,370,545 ------------ 3,179,093 ------------ 55,635,009 ------------ UNITED KINGDOM - 18.0% Agriculture, Food & Beverage - 0.0% 5,458 Anglo-Eastern Plantations plc *........................... 20,022 ------------ Banks & Credit Institutions - 0.2% 78,352 Hitachi Capital UK plc........ 260,473 147,055 Paragon Group Cos., plc....... 1,377,133 ------------ 1,637,606 ------------ Basic Minerals & Metals - 0.7% 288,000 Avocet Mining plc *........... 518,077 6,435,000 Corus Group plc............... 5,844,635 ------------ 6,362,712 ------------ Communications Utilities - 0.4% 652,000 Cable & Wireless plc.......... 1,644,315 1,079,273 COLT Telecom Group plc *...... 1,142,048 1,056,000 Kingston Communications (Hull) plc......................... 1,131,389 ------------ 3,917,752 ------------ Construction & Homebuilding - 2.5% 374,400 Barratt Developments plc...... 4,988,523 192,500 Bellway plc................... 2,972,272 30,000 Ben Bailey plc................ 201,580 521,000 George Wimpey plc............. 3,932,630 118,664 McCarthy & Stone plc.......... 1,293,329 167,000 Mowlem plc.................... 471,236 5,003 Persimmon plc................. 75,704 10,687 Redrow plc.................... 81,610 816,000 Taylor Woodrow plc............ 4,666,290 141,409 Wilson Bowden plc............. 2,907,885 ------------ 21,591,059 ------------ Construction Materials - 0.9% 84,000 Baggeridge Brick plc.......... 247,695 244,779 Cookson Group plc *........... 1,424,589 576,000 Hanson plc.................... 5,978,202 ------------ 7,650,486 ------------ Drugs & Pharmaceuticals - 0.7% 484,800 Shire Pharmaceuticals plc..... 5,895,199 ------------ Financial Investments - 0.6% 326,200 3I Group plc.................. 4,510,261 252,181 F&C Asset Management plc...... 855,028 66,649 Vp plc........................ 255,655 ------------ 5,620,944 ------------ Information & Services - 0.8% 105,640 Alfred McAlpine plc........... 715,420
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Information & Services continued 355,000 Communisis plc................ $ 611,993 51,000 Creston plc................... 162,061 19,426 DTZ Holdings plc.............. 115,027 1,053,000 First Choice Holidays plc..... 3,932,362 41,000 Interior Services Group plc... 175,708 57,242 MacLellan Group plc........... 80,510 288,000 MICE Group plc................ 170,254 408,512 Sygen International plc....... 342,216 133,542 Tribal Group plc.............. 491,050 ------------ 6,796,601 ------------ Instruments - 0.1% 50,530 Oxford Instruments plc........ 214,767 321,000 Senior plc.................... 336,840 ------------ 551,607 ------------ Insurance - 2.4% 353,618 Benfield Group plc............ 1,942,648 1,872,000 Friends Provident plc......... 6,173,750 2,655,000 Henderson Group plc *......... 3,137,191 480,000 Kiln plc *.................... 736,482 2,000,000 Old Mutual plc................ 4,894,007 2,352,000 Royal & Sun Alliance Insurance Group plc................... 4,023,562 273,424 SVB Holdings plc *............ 147,316 ------------ 21,054,956 ------------ IT Hardware - 0.1% 345,000 TT electronics plc............ 967,426 ------------ Land & Water Transportation - 1.0% 410,400 Arriva plc.................... 4,252,231 150,214 Autologic Holdings plc........ 382,542 746,000 FirstGroup plc................ 4,341,646 ------------ 8,976,419 ------------ Metal Products & Machinery - 0.0% 88,000 Alumasc Group plc............. 268,491 4,588 Delta plc *................... 10,762 ------------ 279,253 ------------ Miscellaneous Finance - 0.4% 523,971 Amvescap plc.................. 3,400,609 ------------ Oil & Coal Resources - 0.9% 141,724 Dana Petroleum plc *.......... 2,235,761 54,000 Global Energy Development plc *........................... 315,703 534,000 Paladin Resources plc......... 2,980,689 153,409 Premier Oil plc *............. 2,039,970 ------------ 7,572,123 ------------ Oil Drilling & Services - 0.9% 540,000 Abbot Group plc (a)........... 2,514,197 151,000 Expro International Group plc......................... 1,456,686 273,883 Hunting plc................... 1,521,519 256,368 Venture Production plc *...... 2,179,277 ------------ 7,671,679 ------------
82 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Real Estate Development - 1.7% 173,400 British Land Co., plc......... $ 2,876,137 264,000 Crest Nicholson plc........... 1,876,336 345,021 Enterprise Inns plc........... 5,126,453 170,400 Land Securities Group plc..... 4,444,668 250,137 Regus Group plc *............. 437,835 152,000 UK Coal plc................... 419,527 ------------ 15,180,956 ------------ Restaurants, Hotels & Theaters - 2.8% 216,000 De Vere Group plc............. 2,276,110 261,080 Greene King plc............... 2,944,529 808,000 Hilton Group plc.............. 4,481,606 1,176 Luminar plc................... 9,955 778,000 Mitchells & Butlers plc....... 5,011,543 42,000 Regent Inns plc *............. 75,553 1,624,000 Sportech plc *................ 261,005 25,200 Urbium plc.................... 475,539 309,000 Whitbread plc................. 5,174,340 151,197 Wolverhampton & Dudley Breweries plc............... 3,154,493 ------------ 23,864,673 ------------ Retail - 0.4% 620,052 N Brown Group plc............. 1,612,953 534,087 Somerfield plc................ 1,860,290 15,277 Woolworths Group plc.......... 9,026 ------------ 3,482,269 ------------ Soaps & Cosmetics - 0.0% 161,164 McBride plc................... 434,872 ------------ Software - 0.4% 357,049 Anite Group plc *............. 409,301 4,347,573 Dimension Data Holdings plc *........................... 2,875,278 350,000 InTechnology plc *............ 275,484 30,435 Microgen plc *................ 35,962 ------------ 3,596,025 ------------ Wholesale - 0.1% 110,000 Abacus Group plc *............ 228,917 71,615 Fayrewood plc................. 149,969 26,161 Goldshield Group plc.......... 161,897 16,363 James Latham plc.............. 44,730 99,000 Nichols plc................... 353,207 ------------ 938,719 ------------ 157,463,967 ------------ TOTAL COMMON STOCK (COST $716,968,975)......... 831,464,181 ------------ PREFERRED STOCK - 0.1% GERMANY - 0.1% Furniture & Household Items - 0.0% 2,785 Villeroy & Boch AG............ 46,855 ------------
SHARES OR PRINCIPAL VALUE ---------------------------------------------------------- PREFERRED STOCK, GERMANY continued Wholesale - 0.1% 47,379 Jungheinrich AG............... $ 1,192,801 ------------ TOTAL PREFERRED STOCK (COST $1,044,837)................. 1,239,656 ------------ RIGHTS - 0.0% AUSTRALIA - 0.0% Basic Minerals & Metals - 0.0% 67,769 Macmahon Holdings LTD. Rights...................... 6,200 ------------ TOTAL RIGHTS (COST $0)........ 6,200 ------------ REPURCHASE AGREEMENT - 4.7% UNITED STATES - 4.7% $40,879,000 State Street Bank dated 9/30/05 due 10/3/05 at 2.75% with a maturity value of $40,888,368 (fully collateralized by Federal National Mortgage Security)................... 40,879,000 ------------ TOTAL REPURCHASE AGREEMENT (COST $40,879,000).......... 40,879,000 ------------ SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING - 8.2% UNITED STATES - 8.2% 72,220,939 State Street Navigator Securities Lending Prime Portfolio................... 72,220,939 ------------ TOTAL SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (COST $72,220,939)................ 72,220,939 ------------ TOTAL INVESTMENTS (COST $831,113,751) (C) -- 107.8%............... 945,809,976 LIABILITIES IN EXCESS OF OTHER ASSETS - (7.8)%............. (68,523,032) ------------ NET ASSETS - 100.0%........... $877,286,944 ============
--------------- * Non-income producing security. (a) All or a portion of this security was on loan as of September 30, 2005. (b) Bankrupt security/delisted; fair-valued by management. (c) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation as follows: Unrealized appreciation.................. $126,285,965 Unrealized depreciation.................. (11,589,740) ------------ Net unrealized appreciation.............. $114,696,225 ============
Laudus Trust Semi-Annual Report 83 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg International Small Capitalization Fund (Unaudited) FORWARD CURRENCY EXCHANGE CONTRACTS
CONTRACT UNREALIZED DELIVERY AMOUNT APPRECIATION/ DATE (LOCAL CURRENCY) (DEPRECIATION) -------- ---------------- -------------- Receive Swiss Francs in Exchange for 132,973 U.S. Dollars 10/3/05 172,000 $ (36) Receive Singapore Dollars in Exchange for 500,000 U.S. Dollars 10/3/05 843,850 (1,129) Receive Canadian Dollars in Exchange for 680,034 U.S. Dollars 10/4/05 797,000 5,813 Receive New Zealand Dollars in Exchange for 350,000 U.S. Dollars 10/4/05 506,146 (126) Receive Singapore Dollars in Exchange for 250,000 U.S. Dollars 10/4/05 422,625 (142) ------- $ 4,380 =======
84 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND (A) as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 94.5% AGRICULTURE, FOOD & BEVERAGE - 2.4% 400 Dean Foods Co. *................. $ 15,544 2,890 General Mills, Inc. ............. 139,298 5,200 Kellogg Co. ..................... 239,876 3,310 Pepsi Bottling Group, Inc. ...... 94,501 ----------- 489,219 ----------- AUTOS - 0.3% 910 PACCAR, Inc. .................... 61,780 ----------- BANKS & CREDIT INSTITUTIONS - 8.3% 18,900 Bank of America Corp. ........... 795,689 7,110 Bank of New York Co., Inc. ...... 209,105 3,400 Comerica, Inc. .................. 200,260 2,600 KeyCorp.......................... 83,850 8,200 National City Corp. ............. 274,208 1,560 Wells Fargo & Co. ............... 91,369 ----------- 1,654,481 ----------- BASIC MINERALS & METALS - 0.2% 700 Freeport-McMoRan Copper & Gold, Inc., Class B.................. 34,013 60 Phelps Dodge Corp. .............. 7,796 20 Precision Castparts Corp. ....... 1,062 ----------- 42,871 ----------- BEER, LIQUOR & TOBACCO - 2.9% 8,000 Altria Group, Inc. .............. 589,680 ----------- CELLULAR & WIRELESS - 1.7% 12,050 SBC Communications, Inc. ........ 288,839 1,600 Telephone & Data Systems, Inc. .......................... 62,400 ----------- 351,239 ----------- CHEMICALS & RUBBER - 2.4% 3,700 PPG Industries, Inc. ............ 219,003 6,000 Sherwin-Williams Co. ............ 264,420 ----------- 483,423 ----------- COMMERCIAL AIRCRAFT & COMPONENTS - 0.2% 800 Rockwell Collins, Inc. .......... 38,656 ----------- COMMUNICATIONS UTILITIES - 0.6% 400 Google, Inc., Class A *.......... 126,584 ----------- CONSTRUCTION & HOMEBUILDING - 2.3% 2,100 KB HOME.......................... 153,720 7,400 Pulte Homes, Inc. ............... 317,608 ----------- 471,328 ----------- CONSTRUCTION MATERIALS - 1.3% 3,600 Vulcan Materials Co. ............ 267,156 ----------- CONSUMER DURABLES - 0.0% 110 Whirlpool Corp. ................. 8,335 ----------- DRUGS & PHARMACEUTICALS - 0.9% 3,260 Celgene Corp. *.................. 177,083 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued ELECTRIC UTILITIES - 3.5% 4,000 Entergy Corp. ................... $ 297,280 10,500 PG&E Corp. ...................... 412,125 ----------- 709,405 ----------- GAS & OTHER PUBLIC UTILITIES - 0.9% 670 KeySpan Corp. ................... 24,643 6,050 NiSource, Inc. .................. 146,712 ----------- 171,355 ----------- GOVERNMENT AIRCRAFT & DEFENSE - 1.6% 8,600 Raytheon Co. .................... 326,972 ----------- HEALTH CARE & HOSPITAL - 3.4% 1,400 Coventry Health Care, Inc. *..... 120,428 1,300 Laboratory Corp. of America Holdings *..................... 63,323 9,000 UnitedHealth Group, Inc. ........ 505,800 ----------- 689,551 ----------- INFORMATION & SERVICES - 5.1% 7,400 H&R Block, Inc. ................. 177,452 6,310 Moody's Corp. ................... 322,315 7,300 Prudential Financial, Inc. ...... 493,188 1,160 Robert Half International, Inc. .......................... 41,284 ----------- 1,034,239 ----------- INSTRUMENTS - 2.0% 50 Becton, Dickinson & Co. ......... 2,622 6,400 Johnson Controls, Inc. .......... 397,120 ----------- 399,742 ----------- INSURANCE - 5.6% 1,220 ACE Ltd. ........................ 57,425 1,210 Allstate Corp. .................. 66,901 1,900 Everest Re Group Ltd. ........... 186,010 5,000 Loews Corp. ..................... 462,050 3,000 MGIC Investment Corp. ........... 192,600 2,700 Torchmark Corp. ................. 142,641 ----------- 1,107,627 ----------- INTEGRATED OIL COS. - 3.8% 200 Amerada Hess Corp. .............. 27,500 1,670 ChevronTexaco Corp. ............. 108,099 1,700 Exxon Mobil Corp. ............... 108,018 6,200 Occidental Petroleum Corp. ...... 529,666 ----------- 773,283 ----------- IT HARDWARE - 5.8% 9,300 Marvell Technology Group Ltd. *.............................. 428,823 21,949 Motorola, Inc. .................. 484,853 2,240 Texas Instruments, Inc. ......... 75,936 9,800 The DIRECTV Group, Inc. *........ 146,804 ----------- 1,136,416 -----------
Laudus Trust Semi-Annual Report 85 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued LAND & WATER TRANSPORTATION - 3.3% 8,800 Burlington Northern Santa Fe Corp. ......................... $ 526,240 3,610 Norfolk Southern Corp. .......... 146,422 ----------- 672,662 ----------- METAL PRODUCTS & MACHINERY - 1.5% 2,600 Black & Decker Corp. ............ 213,434 1,920 Dover Corp. ..................... 78,317 ----------- 291,751 ----------- MISCELLANEOUS FINANCE - 3.6% 1,200 Chicago Mercantile Exchange...... 404,760 770 JPMorgan Chase & Co. ............ 26,126 4,600 Merrill Lynch & Co., Inc. ....... 282,210 ----------- 713,096 ----------- OIL & COAL RESOURCES - 6.6% 5,600 Anadarko Petroleum Corp. ........ 536,200 3,700 Ultra Petroleum Corp. *.......... 210,456 12,300 XTO Energy, Inc. ................ 557,436 ----------- 1,304,092 ----------- OIL DISTRIBUTION - 0.2% 560 Sunoco, Inc. .................... 43,792 ----------- OIL DRILLING & SERVICES - 0.3% 1,900 Patterson-UTI Energy, Inc. ...... 68,552 ----------- PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 2.1% 14,150 Hewlett-Packard Co. ............. 413,180 ----------- PUBLISHING, BROADCASTING & CINEMA - 1.8% 7,200 McGraw-Hill Cos., Inc. .......... 345,888 230 The Walt Disney Co. ............. 5,550 140 Tribune Co. ..................... 4,745 ----------- 356,183 ----------- REAL ESTATE INVESTMENT TRUSTS - 0.8% 4,200 iStar Financial, Inc. ........... 169,806 ----------- RESTAURANTS, HOTELS & THEATERS - 2.8% 18,370 Cendant Corp. ................... 379,157 3,800 YUM! Brands, Inc. ............... 183,958 ----------- 563,115 ----------- RETAIL - 8.2% 5,600 Chico's FAS, Inc. *.............. 206,080 6,600 Federated Department Stores, Inc. .......................... 441,341 10,000 Home Depot, Inc. ................ 381,400 5,050 Lowe's Cos., Inc. ............... 325,220 8,000 Nordstrom, Inc. ................. 274,560 ----------- 1,628,601 -----------
SHARES OR PRINCIPAL VALUE ----------------------------------------------------------- COMMON STOCK continued SOAPS & COSMETICS - 0.0% 230 Ecolab, Inc. .................... $ 7,344 ----------- SOFTWARE - 2.7% 4,019 Cognizant Technology Solutions Corp., Class A *............... 187,245 5,600 Computer Sciences Corp. *........ 264,936 1,990 Fidelity National Financial, Inc. .......................... 88,595 ----------- 540,776 ----------- TEXTILES & APPAREL - 3.1% 15,600 Coach, Inc. *.................... 489,216 2,200 VF Corp. ........................ 127,534 ----------- 616,750 ----------- WHOLESALE - 2.3% 400 Express Scripts, Inc. *.......... 24,880 6,500 McKesson Corp. .................. 308,425 2,200 W.W. Grainger, Inc. ............. 138,424 ----------- 471,729 ----------- TOTAL COMMON STOCK (COST $15,122,680)................... 18,971,854 ----------- REPURCHASE AGREEMENT - 5.4% $1,087,136 Bear Stearns dated 9/30/05, due 10/3/05 at 3.25% with a maturity value of $1,087,136 (fully collateralized by U.S. Treasury Bond)................. 1,087,136 ----------- TOTAL REPURCHASE AGREEMENT (COST $1,087,136).................... 1,087,136 ----------- TOTAL INVESTMENTS (COST $16,209,816) (B) - 99.9%....... 20,058,990 NET OTHER ASSETS (LIABILITIES) - 0.1%........................... 27,082 ----------- NET ASSETS - 100.0%.............. $20,086,072 ===========
--------------- * Non-income producing security. (a) All long positions are pledged as collateral for securities sold short. (b) Represents cost for financial reporting purposes, is substantially the same for federal tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.................... $3,975,663 Unrealized depreciation.................... (126,489) ---------- Net unrealized appreciation................ $3,849,174 ==========
86 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Securities Sold Short LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 95.0% AGRICULTURE, FOOD & BEVERAGE - 4.8% 2,700 Bunge Ltd. ....................... $ 142,074 5,700 Coca-Cola Co. .................... 246,183 16,300 Sara Lee Corp. ................... 308,885 3,800 Wm. Wrigley Jr. Co. .............. 273,144 ----------- 970,286 ----------- AUTOS - 0.2% 1,300 General Motors Acceptance Corp. .......................... 39,793 ----------- BANKS & CREDIT INSTITUTIONS - 7.5% 4,710 American Express Co. ............. 270,542 11,400 E*TRADE Financial Corp. *......... 200,640 8,600 Fifth Third Bancorp............... 315,878 4,500 Freddie Mac....................... 254,070 3,900 New York Community Bancorp, Inc. ........................... 63,960 9,800 North Fork Bancorporation, Inc. ........................... 249,900 6,500 Popular, Inc. .................... 157,430 ----------- 1,512,420 ----------- BASIC MINERALS & METALS - 1.7% 7,200 Newmont Mining Corp. ............. 339,624 ----------- BEER, LIQUOR & TOBACCO - 1.3% 6,260 Anheuser-Busch Cos., Inc. ........ 269,430 ----------- BIOTECHNOLOGY - 0.1% 600 MedImmune, Inc. *................. 20,190 ----------- CELLULAR & WIRELESS - 1.1% 8,940 Sprint Corp. ..................... 212,593 ----------- COMMUNICATIONS UTILITIES - 2.1% 380 NTL, Inc. *....................... 25,384 12,200 Verizon Communications, Inc. ..... 398,818 70 Yahoo!, Inc. *.................... 2,369 ----------- 426,571 ----------- CONSUMER DURABLES - 0.4% 800 Harman International Industries, Inc. ........................... 81,816 ----------- DRUGS & PHARMACEUTICALS - 5.6% 2,500 Barr Pharmaceuticals, Inc. *...... 137,300 7,700 Eli Lilly & Co. .................. 412,104 7,100 Forest Laboratories, Inc. *....... 276,687 5,400 Pfizer, Inc. ..................... 134,838 2,900 Sepracor, Inc. *.................. 171,071 ----------- 1,132,000 ----------- ELECTRIC UTILITIES - 3.8% 15,100 AES Corp. *....................... 248,093 5,700 Progress Energy, Inc. ............ 255,075 7,227 Southern Co. ..................... 258,438 ----------- 761,606 ----------- FINANCIAL INVESTMENTS - 4.2% 25,300 General Electric Co. ............. 851,851 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued FURNITURE & HOUSEHOLD ITEMS - 2.2% 10,500 International Game Technology..... $ 283,500 10,090 Mattel, Inc. ..................... 168,301 ----------- 451,801 ----------- GAS & OTHER PUBLIC UTILITIES - 2.0% 28,600 El Paso Corp. .................... 397,540 ----------- HEALTH CARE & HOSPITAL - 1.0% 17,700 Tenet Healthcare Corp. *.......... 198,771 ----------- INFORMATION & SERVICES - 3.4% 4,900 Apollo Group, Inc., Class A *..... 325,311 9,400 Paychex, Inc. .................... 348,552 ----------- 673,863 ----------- INSTRUMENTS - 5.0% 6,200 Medtronic, Inc. .................. 332,444 6,000 Stryker Corp. .................... 296,580 100 Varian Medical Systems, Inc. *.... 3,951 5,400 Zimmer Holdings, Inc. *........... 372,006 ----------- 1,004,981 ----------- INSURANCE - 5.7% 1,600 Jefferson-Pilot Corp. ............ 81,872 14,600 Marsh & McLennan Cos., Inc. ...... 443,694 4,400 Progressive Corp. ................ 460,988 4,200 Willis Group Holdings Ltd. ....... 157,710 ----------- 1,144,264 ----------- IT HARDWARE - 8.2% 12,800 Altera Corp. *.................... 244,608 4,900 Comverse Technology, Inc. *....... 128,723 6,600 KLA-Tencor Corp. ................. 321,816 12,400 Linear Technology Co. ............ 466,116 1,100 Maxim Integrated Products, Inc. ........................... 46,915 8,977 Microchip Technology, Inc. ....... 270,387 3,100 QUALCOMM, Inc. ................... 138,725 1,200 Xilinx, Inc. ..................... 33,420 ----------- 1,650,710 ----------- LAND & WATER TRANSPORTATION - 2.9% 1,904 Expeditors International of Washington, Inc................. 108,109 6,800 United Parcel Service, Inc., Class B............................... 470,084 ----------- 578,193 ----------- MISCELLANEOUS FINANCE - 4.6% 3,000 Bear Stearns Companies, Inc. ..... 329,250 4,000 Goldman Sachs Group, Inc. ........ 486,320 1,840 Morgan Stanley.................... 99,250 ----------- 914,820 ----------- PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 1.1% 1,000 EMC Corp. *....................... 12,940 1,100 Lexmark International, Inc., Class A *............................. 67,155 6,036 Network Appliance, Inc. *......... 143,295 ----------- 223,390 -----------
Laudus Trust Semi-Annual Report 87 See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued PUBLISHING, BROADCASTING & CINEMA - 1.4% 2,150 Interpublic Group of Cos., Inc. *............................... $ 25,026 37,700 Sirius Satellite Radio, Inc. *.... 246,935 ----------- 271,961 ----------- REAL ESTATE INVESTMENT TRUSTS - 6.4% 2,300 Avalonbay Communities, Inc. ...... 197,110 6,240 Equity Residential................ 236,184 6,500 General Growth Properties, Inc. ........................... 292,045 800 Kimco Realty Corp. ............... 25,136 6,800 Plum Creek Timber Co. ............ 257,788 3,700 Simon Property Group, Inc. ....... 274,244 ----------- 1,282,507 ----------- RESTAURANTS, HOTELS & THEATERS - 1.8% 7,200 Starbucks Corp. *................. 360,720 ----------- RETAIL - 9.3% 6,400 Amazon.com, Inc. *................ 289,920 8,400 Costco Wholesale Corp. ........... 361,956 13,700 eBay, Inc. *...................... 564,440 3,100 Tiffany & Co. .................... 123,287 5,650 Wal-Mart Stores, Inc. ............ 247,583 2,000 Whole Foods Market, Inc. ......... 268,900 ----------- 1,856,086 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued SOAPS & COSMETICS - 0.7% 2,630 Clorox Co. ....................... $ 146,070 ----------- SOFTWARE - 3.3% 7,300 Electronic Arts, Inc. *........... 415,297 9,700 Microsoft Corp. .................. 249,581 ----------- 664,878 ----------- TEXTILES & APPAREL - 1.2% 5,800 Cintas Corp. ..................... 238,090 ----------- WHOLESALE - 2.0% 3,100 Patterson Cos., Inc. *............ 124,093 8,700 Sysco Corp. ...................... 272,919 ----------- 397,012 ----------- TOTAL SECURITIES SOLD SHORT (PROCEEDS $18,781,311) - 95.0%............ $19,073,837 ===========
--------------- * Non-income producing security. 88 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND (A) as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 88.9% AUSTRIA - 0.3% Oil Distribution - 0.3% 1,600 OMV AG........................... $ 95,002 ----------- BELGIUM - 0.8% Banks & Credit Institutions - 0.2% 2,500 Fortis........................... 72,253 ----------- Financial Investments - 0.4% 600 Almancora Comm. Va............... 59,304 200 Compagnie Nationale a Portefeuille/ Nationale Portefeuille Maatschappij...... 54,317 ----------- 113,621 ----------- Retail - 0.2% 900 Delhaize Group................... 53,233 ----------- 239,107 ----------- DENMARK - 0.4% Insurance - 0.2% 600 Topdanmark A/S *................. 47,743 ----------- Land & Water Transportation - 0.2% 8 A P Moller - Maersk A/S.......... 81,697 ----------- 129,440 ----------- FINLAND - 0.4% Cellular & Wireless - 0.1% 2,000 Elisa Corp. ..................... 34,561 ----------- Chemicals & Rubber - 0.0% 738 Kemira Oyj....................... 10,447 ----------- Forest Products & Paper - 0.2% 1,800 Metso Oyj........................ 45,662 ----------- Metal Products & Machinery - 0.1% 829 Wartsila Oyj, Class B............ 26,400 ----------- 117,070 ----------- FRANCE - 2.3% Autos - 0.3% 1,200 PSA Peugeot Citroen.............. 81,476 ----------- Banks & Credit Institutions - 0.4% 400 Natexis Banques Populaires....... 60,325 400 Societe Generale................. 45,641 ----------- 105,966 ----------- Construction Materials - 0.2% 900 Compagnie de Saint-Gobain........ 51,763 43 SA des Ciments Vicat............. 7,234 ----------- 58,997 ----------- Financial Investments - 0.1% 81 Societe Fonciere Financiere et de Participations (FFP)........... 18,689 ----------- Insurance - 0.0% 200 CNP Assurances................... 13,411 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, FRANCE continued IT Hardware - 0.1% 2,100 Thomson.......................... $ 43,658 ----------- Land & Water Transportation - 0.2% 400 Bollore Investissement........... 57,201 ----------- Metal Products & Machinery - 0.1% 453 Valeo SA......................... 18,824 ----------- Publishing, Broadcasting & Cinema - 0.2% 9,000 Havas SA......................... 45,641 ----------- Restaurants, Hotels & Theaters - 0.2% 2,000 Elior............................ 27,759 920 Sodexho Alliance SA.............. 34,726 ----------- 62,485 ----------- Retail - 0.1% 449 Rallye SA........................ 21,216 ----------- Software - 0.3% 800 Atos Orgin SA *.................. 56,576 1,500 Cap Gemini SA *.................. 58,368 ----------- 114,944 ----------- Wholesale - 0.1% 600 Casino Guichard-Perrachon SA..... 42,540 ----------- 685,048 ----------- GERMANY - 2.1% Banks & Credit Institutions - 0.1% 6,544 Bankgesellschaft Berlin AG *..... 23,513 ----------- Basic Minerals & Metals - 0.2% 3,500 ThyssenKrupp AG.................. 73,184 ----------- Chemicals & Rubber - 0.2% 715 Linde AG......................... 52,773 ----------- Construction & Homebuilding - 0.1% 3,000 GEA Group AG *................... 34,321 ----------- Drugs & Pharmaceuticals - 0.3% 1,500 Degussa AG....................... 66,225 600 Merck KGaA....................... 50,400 ----------- 116,625 ----------- Electric Utilities - 0.3% 1,200 Energie Baden-Wuerttemberg AG.... 74,986 ----------- Gas & Other Public Utilities - 0.3% 1,200 RWE AG........................... 79,313 ----------- Health Care & Hospital - 0.3% 600 Fresenius Medical Care AG........ 54,654 600 Rhoen-Klinikum AG................ 22,784 ----------- 77,438 ----------- Instruments - 0.1% 228 Fresenius AG..................... 29,098 ----------- IT Hardware - 0.2% 6,000 Infineon Technologies AG *....... 58,908 ----------- 620,159 -----------
Laudus Trust Semi-Annual Report 89 See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued IRELAND - 0.8% Agriculture, Food & Beverage - 0.2% 2,700 Kerry Group plc.................. $ 63,108 ----------- Banks & Credit Institutions - 0.3% 4,000 Allied Irish Banks plc (AIB)..... 85,081 ----------- Insurance - 0.2% 1,200 FBD Holdings plc................. 47,789 ----------- Wholesale - 0.1% 2,000 DCC plc.......................... 40,137 ----------- 236,115 ----------- ITALY - 2.1% Autos - 0.2% 12,000 IFIL - Finanziaria di Partecipazioni S.p.A. ......... 53,644 ----------- Banks & Credit Institutions - 1.0% 16,000 Banca Intesa S.p.A. ............. 74,555 12,682 Banca Monte dei Paschi di Siena S.p.A. ........................ 56,236 2,700 Banche Popolari Unite Scrl....... 54,801 4,000 Bipielle Investimenti S.p.A. .... 28,913 12,000 Capitalia S.p.A. ................ 65,613 ----------- 280,118 ----------- Communications Utilities - 0.1% 12,000 Telecom Italia S.p.A. ........... 39,007 ----------- Electric Utilities - 0.1% 12,000 ASM Brescia S.p.A. .............. 38,178 ----------- Gas & Other Public Utilities - 0.2% 9,000 Snam Rete Gas S.p.A. ............ 52,454 ----------- Insurance - 0.1% 1,191 Fondiaria-Sai S.p.A. ............ 36,139 ----------- Land & Water Transportation - 0.1% 1,600 Autostrada Torino-Milano S.p.A. ........................ 32,879 ----------- Oil Distribution - 0.2% 2,400 ERG S.p.A. ...................... 66,334 ----------- Publishing, Broadcasting & Cinema - 0.1% 12,000 C.I.R. S.p.A. - Compagnie Industriali Riunite............ 36,484 ----------- 635,237 ----------- JAPAN - 22.5% Banks & Credit Institutions - 3.3% 8,000 77th Bank Ltd. .................. 58,784 1,300 Acom Co., Ltd. .................. 94,379 10,000 Bank of Fukuoka Ltd. ............ 72,070 5,000 Chugoku Bank Ltd. ............... 68,106 10,000 Daishi Bank Ltd. ................ 48,458 10,000 Hokkoku Bank Ltd. ............... 46,872 7,000 Hyakugo Bank Ltd. ............... 47,551 12 Mitsubishi Tokyo Financial Group, Inc. .......................... 154,645 4,000 San-in Godo Bank Ltd. ........... 41,339 6,000 Shiga Bank Ltd. ................. 41,921
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Banks & Credit Institutions continued 15 Sumitomo Mitsui Financial Group, Inc. .......................... $ 141,410 16,000 Sumitomo Trust & Banking Co., Ltd. .......................... 131,665 ----------- 947,200 ----------- Basic Minerals & Metals - 0.9% 10,000 Fujikura Ltd. ................... 61,322 6,000 Hitachi Cable Ltd. .............. 24,370 20,000 Nisshin Steel Co., Ltd. ......... 69,075 9,000 Sumitomo Electric Industries Ltd. .......................... 121,321 ----------- 276,088 ----------- Beer, Liquor & Tobacco - 1.2% 6,400 Asahi Breweries Ltd. ............ 81,029 9 Japan Tobacco, Inc. ............. 141,938 13,000 Kirin Brewery Co., Ltd. ......... 143,172 ----------- 366,139 ----------- Chemicals & Rubber - 1.5% 17,000 Asahi Kasie Corp. ............... 92,863 5,000 Bridgestone Corp. ............... 107,048 16,000 Dainippon Ink & Chemicals, Inc. .......................... 52,582 27,000 Mitsubishi Chemical Corp. ....... 89,445 11,000 Mitsui Chemicals, Inc. .......... 64,934 12,000 Tosoh Corp. ..................... 51,066 ----------- 457,938 ----------- Communications Utilities - 0.4% 22 Nippon Telegraph & Telephone Corp. (NTT).................... 108,159 ----------- Construction & Homebuilding - 1.8% 7,000 Daiwa House Industry Co., Ltd. .......................... 91,586 5,000 Jgc Corp. ....................... 91,410 16,000 Kajima Corp. .................... 76,123 6,000 Kinden Corp. .................... 51,806 11,000 Obayashi Corp. .................. 75,982 13,000 Shimizu Corp. ................... 85,101 18,000 Taisei Corp. .................... 74,062 ----------- 546,070 ----------- Construction Materials - 1.7% 13,000 Asahi Glass Co., Ltd. ........... 136,415 6,000 Central Glass Co., Ltd. ......... 34,467 5,000 JS Group Corp. .................. 85,154 6,000 NGK Insulators Ltd. ............. 76,282 4,000 Nippon Electric Glass Co., Ltd. .......................... 72,070 12,000 Nippon Sheet Glass Co., Ltd. .... 54,026 7,000 Toto Ltd. ....................... 55,507 ----------- 513,921 ----------- Consumer Durables - 0.7% 7,000 Matsushita Electric Industrial Co., Ltd. ..................... 118,599 18,000 NEC Corp. ....................... 97,533 ----------- 216,132 -----------
90 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Electric Utilities - 0.7% 500 Chugoku Electric Power Co., Inc. .......................... $ 10,308 4,400 Kyushu Electric Power Co., Inc. .......................... 97,885 3,400 Shikoku Electric Power Co., Inc. .......................... 73,692 1,200 Tokyo Electric Power Co., Inc. .......................... 30,344 ----------- 212,229 ----------- Furniture & Household Items - 0.7% 6,000 Matsushita Electric Works Ltd. .......................... 59,630 1,300 Sankyo Co., Ltd. ................ 68,493 12,000 Sekisui Chemical Co., Ltd. ...... 85,533 ----------- 213,656 ----------- Gas & Other Public Utilities - 0.4% 26,000 Tokyo Gas Co., Ltd. ............. 105,604 ----------- Information & Services - 0.1% 900 Autobacs Seven Co., Ltd. ........ 35,128 ----------- Insurance - 0.8% 7 Millea Holdings, Inc. ........... 112,247 11,000 Mitsui Sumitomo Insurance Co., Ltd. .......................... 127,348 ----------- 239,595 ----------- IT Hardware - 0.6% 1,100 Kyocera Corp. ................... 76,564 10,000 Minebea Co., Ltd. ............... 41,233 1,500 Nec Electronics Corp. ........... 49,956 ----------- 167,753 ----------- Land & Water Transportation - 0.6% 13,000 Nippon Yusen Kabushiki Kaisha.... 87,163 26 West Japan Railway Co. .......... 98,273 ----------- 185,436 ----------- Metal Products & Machinery - 2.1% 4,000 Amada Co., Ltd. ................. 31,894 1,400 Heiwa Corp. ..................... 21,463 23,000 Hitachi Ltd. .................... 145,700 24,000 Mitsubishi Electric Corp. ....... 153,727 38,000 Mitsubishi Heavy Industries Ltd. .......................... 134,590 4,000 NGK Spark Plug Co., Ltd. ........ 57,974 500 Sega Sammy Holdings, Inc. ....... 19,736 500 Sega Sammy Holdings, Inc. W/I *.. 19,383 3,600 Toyo Seikan Kaisha Ltd. ......... 53,477 ----------- 637,944 ----------- Oil & Coal Resources - 0.3% 12 Inpex Corp. ..................... 93,145 ----------- Oil Distribution - 1.3% 14,000 Cosmo Oil Co., Ltd. ............. 75,859 11,500 Nippon Mining Holdings, Inc. .... 91,189 14,000 Nippon Oil Corp. ................ 123,965 7,000 TonenGeneral Sekiyu K.K.......... 81,410 ----------- 372,423 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Photooptical, Micros & Office Machinery - 0.6% 3,100 Fuji Photo Film Co., Ltd. ....... $ 102,150 8,500 Konica Minolta Holdings, Inc. ... 77,286 ----------- 179,436 ----------- Real Estate Development - 0.9% 1,700 Daito Trust Construction Co., Ltd. .......................... 74,441 17,000 Hankyu Holdings, Inc. ........... 69,048 9,000 Sekisui House Ltd. .............. 110,300 ----------- 253,789 ----------- Restaurants, Hotels & Theaters - 0.4% 1,000 Nintendo Co., Ltd. .............. 116,652 ----------- Retail - 0.3% 1,500 Aoyama Trading Co., Ltd. ........ 42,291 80 Seven & I Holdings Co., Ltd. *... 2,650 4,000 Uny Co., Ltd. ................... 52,793 ----------- 97,734 ----------- Software - 0.4% 18,000 Fujitsu Ltd. .................... 118,626 ----------- Textiles & Apparel - 0.1% 3,000 Tokyo Style Co., Ltd. ........... 31,771 ----------- Trade Co. - 0.4% 18,000 ITOCHU Corp. .................... 123,859 ----------- Wholesale - 0.3% 7,000 Teikoku Oil Co., Ltd. ........... 75,551 ----------- 6,691,978 ----------- NETHERLANDS - 1.0% Agriculture, Food & Beverage - 0.2% 1,000 CSM NV........................... 28,361 600 Nutreco Holding NV............... 26,389 ----------- 54,750 ----------- Beer, Liquor & Tobacco - 0.1% 1,000 Heineken NV...................... 32,098 ----------- Chemicals & Rubber - 0.1% 800 DSM NV........................... 31,427 ----------- Metal Products & Machinery - 0.1% 600 Stork NV......................... 29,706 ----------- Oil Distribution - 0.1% 1,400 Koninklijke Vopak NV............. 39,519 ----------- Publishing, Broadcasting & Cinema - 0.3% 2,000 VNU NV........................... 62,850 ----------- Wholesale - 0.1% 3,000 Buhrmann NV...................... 36,231 ----------- 286,581 -----------
Laudus Trust Semi-Annual Report 91 See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued NORWAY - 0.5% Oil & Coal Resources - 0.5% 761 Norsk Hydro ASA.................. $ 85,191 3,000 Statoil ASA...................... 74,452 ----------- 159,643 ----------- 159,643 ----------- SPAIN - 1.8% Banks & Credit Institutions - 0.1% 400 Banco de Andalucia............... 34,946 ----------- Beer, Liquor & Tobacco - 0.2% 1,600 Altadis.......................... 71,660 ----------- Construction & Homebuilding - 0.4% 2,100 ACS, Actividades de Construccion y Servicios SA................. 61,197 753 Fomento de Construcciones y Contratas SA................... 44,873 ----------- 106,070 ----------- Integrated Oil Cos. - 0.3% 2,500 Repsol YPF SA.................... 80,995 ----------- Oil Distribution - 0.3% 1,500 Compania Espanola de Petroleos SA CEPSA)......................... 81,656 ----------- Real Estate Development - 0.3% 800 Corporacion Financiera Alba SA... 34,109 338 Inmobiliaria Colonial............ 20,512 1,400 Inmobiliaria Urbis SA............ 31,545 712 TESTA, Inmuebles en Renta SA..... 17,283 ----------- 103,449 ----------- Wholesale - 0.2% 900 Compania de Distribucion Integral Logista SA..................... 46,506 ----------- 525,282 ----------- SWEDEN - 0.9% Beer, Liquor & Tobacco - 0.2% 4,000 Swedish Match AB................. 47,735 ----------- Cellular & Wireless - 0.1% 2,000 Tele2 AB, Class B................ 20,384 ----------- Financial Investments - 0.2% 2,000 Ratos AB, Class B................ 46,960 ----------- Government Aircraft & Defense - 0.0% 604 Saab AB.......................... 10,247 ----------- Health Care & Hospital - 0.2% 2,000 Capio AB *....................... 39,478 3,021 Gambro AB, Class A............... 45,795 ----------- 85,273 ----------- Information & Services - 0.2% 3,000 Securitas, Class B............... 46,444 ----------- 257,043 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued SWITZERLAND - 2.1% Agriculture, Food & Beverage - 0.0% 22 Barry Callebaut AG *............. $ 6,494 ----------- Banks & Credit Institutions - 0.1% 90 St. Galler Kantonalbank.......... 28,720 ----------- Biotechnology - 0.3% 120 Serono SA, Class B............... 78,906 ----------- Chemicals & Rubber - 0.4% 900 Ciba Specialty Chemicals AG...... 53,094 1,473 Clariant AG *.................... 21,170 400 Syngenta AG...................... 41,879 ----------- 116,143 ----------- Construction Materials - 0.1% 386 Holcim Ltd. ..................... 25,635 ----------- Furniture & Household Items - 0.4% 1,800 Compagnie Financiere Richemont AG, Class A.................... 71,279 300 Swatch Group AG, Class B......... 41,331 ----------- 112,610 ----------- Insurance - 0.4% 900 Baloise Holding AG, Class R...... 45,202 300 Swiss Life Holding *............. 42,466 833 Swiss Re......................... 54,710 ----------- 142,378 ----------- Metal Products & Machinery - 0.4% 100 Schindler Holding AG............. 39,793 160 SIG Holding AG................... 40,766 200 Unaxis Holding AG *.............. 26,472 ----------- 107,031 ----------- 617,917 ----------- UNITED KINGDOM - 6.1% Basic Minerals & Metals - 0.2% 50,000 Corus Group plc.................. 45,413 ----------- Beer, Liquor & Tobacco - 0.5% 4,800 Gallaher Group plc............... 74,495 4,500 SABMiller plc.................... 87,219 ----------- 161,714 ----------- Communications Utilities - 0.1% 27,000 COLT Telecom Group plc *......... 28,570 ----------- Construction & Homebuilding - 0.5% 2,700 Barratt Developments plc......... 35,976 773 Bellway plc...................... 11,935 773 Berkeley Group Holdings plc *.... 11,847 2,274 George Wimpey plc................ 17,165 1,688 Persimmon plc.................... 25,542 6,000 Taylor Woodrow plc............... 34,311 565 Wilson Bowden plc................ 11,618 ----------- 148,394 ----------- Drugs & Pharmaceuticals - 0.2% 4,800 Shire Pharmaceuticals plc........ 58,368 -----------
92 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Electric Utilities - 0.0% 0 National Grid plc................ $ 1 ----------- Financial Investments - 0.2% 4,800 3I Group plc..................... 66,368 ----------- Government Aircraft & Defense - 0.2% 10,000 BAE Systems plc.................. 60,580 ----------- Information & Services - 0.3% 8,000 First Choice Holidays plc........ 29,875 7,000 Yell Group plc................... 59,042 ----------- 88,917 ----------- Insurance - 0.9% 6,400 Aviva plc........................ 70,261 15,000 Friends Provident plc............ 49,469 10,667 Henderson Group plc *............ 12,604 25,000 Old Mutual plc................... 61,175 28,000 Royal & Sun Alliance Insurance Group plc...................... 47,900 ----------- 241,409 ----------- IT Hardware - 0.1% 12,000 Carphone Warehouse............... 42,115 ----------- Land & Water Transportation - 0.3% 1,203 Arriva plc....................... 12,465 2,400 Exel plc......................... 51,935 6,000 FirstGroup plc................... 34,919 ----------- 99,319 ----------- Miscellaneous Finance - 0.7% 8,000 Amvescap plc..................... 51,921 12,000 Panmure Gordon & Co., plc *...... 37,829 9,000 Prudential plc................... 81,663 ----------- 171,413 ----------- Oil & Coal Resources - 0.6% 9,000 BG Group plc..................... 85,393 3,000 Xstrata plc...................... 77,722 ----------- 163,115 ----------- Oil Drilling & Services - 0.1% 6,000 AMEC plc......................... 38,517 ----------- Publishing, Broadcasting & Cinema - 0.1% 3,600 Trinity Mirror plc............... 38,126 ----------- Real Estate Development - 0.5% 2,739 British Land Co., plc............ 45,431 2,800 Enterprise Inns plc.............. 41,603 1,664 Hammerson plc.................... 27,336 1,783 Land Securities Group plc........ 46,508 ----------- 160,878 ----------- Restaurants, Hotels & Theaters - 0.3% 10,000 Hilton Group plc................. 55,466 1,529 Whitbread plc.................... 25,606 1,000 Wolverhampton & Dudley Breweries plc............................ 20,863 ----------- 101,935 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Retail - 0.2% 2,400 Associated British Foods plc..... $ 34,814 8,000 Somerfield plc................... 27,865 ----------- 62,679 ----------- Software - 0.1% 9,000 LogicaCMG plc.................... 27,936 ----------- 1,805,767 ----------- UNITED STATES - 44.8% Agriculture, Food & Beverage - 1.0% 1,900 Archer-Daniels-Midland Co. ...... 46,854 1,200 Dean Foods Co. *................. 46,632 2,300 General Mills, Inc. ............. 110,860 500 Hansen Natural Corp. *........... 23,540 1,450 Kellogg Co. ..................... 66,889 ----------- 294,775 ----------- Airlines - 0.0% 700 Continental Airlines, Inc., Class B *............................ 6,762 ----------- Autos - 0.3% 300 Miller Industries, Inc. *........ 5,892 1,300 PACCAR, Inc. .................... 88,257 ----------- 94,149 ----------- Banks & Credit Institutions - 2.9% 9 Banc Corp. *..................... 97 6,000 Bank of America Corp. ........... 252,600 3,400 Bank of New York Co., Inc. ...... 99,994 1,400 Comerica, Inc. .................. 82,460 200 First Regional Bancorp *......... 15,758 2,500 KeyCorp.......................... 80,625 4,000 National City Corp. ............. 133,760 1,600 Regions Financial Corp. ......... 49,792 900 SunTrust Banks, Inc. ............ 62,505 1,670 Wells Fargo & Co. ............... 97,812 ----------- 875,403 ----------- Basic Minerals & Metals - 0.7% 1,340 Allegheny Technologies, Inc. .... 41,513 1,200 Freeport-McMoRan Copper & Gold, Inc. .......................... 58,309 500 Lone Star Technologies, Inc. *... 27,795 70 Phelps Dodge Corp. .............. 9,095 1,000 Precision Castparts Corp. ....... 53,100 520 Walter Industries, Inc. ......... 25,438 ----------- 215,250 ----------- Beer, Liquor & Tobacco - 0.4% 1,600 Altria Group, Inc. .............. 117,936 ----------- Biotechnology - 1.1% 2,200 Amgen, Inc. *.................... 175,274 1,300 Genentech, Inc. *................ 109,473 600 Invitrogen Corp. *............... 45,138 ----------- 329,885 -----------
Laudus Trust Semi-Annual Report 93 See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Cellular & Wireless - 1.0% 1,600 Nextel Partners, Inc., Class A *.............................. $ 40,160 4,870 SBC Communications, Inc. ........ 116,734 5,900 Sprint Corp. .................... 140,302 100 Telephone & Data Systems, Inc. .......................... 3,900 ----------- 301,096 ----------- Chemicals & Rubber - 1.1% 1,800 Chemtura Corp. .................. 22,356 700 Hexcel Corp. *................... 12,803 1,350 Lyondell Chemical Co. ........... 38,637 1,800 Monsanto Co. .................... 112,950 1,500 PPG Industries, Inc. ............ 88,785 1,000 Sherwin-Williams Co. ............ 44,070 ----------- 319,601 ----------- Commercial Aircraft & Components - 0.0% 200 Rockwell Collins, Inc. .......... 9,664 ----------- Communications Utilities - 0.2% 200 Google, Inc., Class A *.......... 63,292 ----------- Construction & Homebuilding - 0.5% 600 Brookfield Homes Corp. .......... 33,318 1,200 D. R. Horton, Inc. .............. 43,464 720 KB HOME.......................... 52,704 400 Pulte Homes, Inc. ............... 17,168 280 Toll Brothers, Inc. *............ 12,508 ----------- 159,162 ----------- Construction Materials - 0.3% 710 Jarden Corp *.................... 29,160 800 Vulcan Materials Co. ............ 59,368 ----------- 88,528 ----------- Consumer Durables - 0.0% 120 Whirlpool Corp. ................. 9,092 ----------- Drugs & Pharmaceuticals - 1.0% 2,200 Celgene Corp. *.................. 119,504 320 Dade Behring Holdings, Inc. ..... 11,731 1,602 Genzyme Corp. *.................. 114,767 600 Immucor, Inc. *.................. 16,464 300 Lifecore Biomedical, Inc. *...... 3,627 500 United Therapeutics Corp. *...... 34,900 ----------- 300,993 ----------- Electric Utilities - 1.3% 1,500 Entergy Corp. ................... 111,480 2,550 PG&E Corp. ...................... 100,088 1,600 TXU Corp. ....................... 180,608 ----------- 392,176 ----------- Financial Investments - 0.1% 300 Document Security Systems, Inc. *......................... 2,805 400 SurModics, Inc. *................ 15,476 ----------- 18,281 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Furniture & Household Items - 0.3% 300 Genlyte Group, Inc. *............ $ 14,424 300 Lamson & Sessions Co. *.......... 5,496 500 Mikohn Gaming Corp. *............ 6,645 2,200 Newell Rubbermaid, Inc. ......... 49,830 ----------- 76,395 ----------- Gas & Other Public Utilities - 0.4% 300 Clean Harbors, Inc. *............ 10,185 1,300 KeySpan Corp. ................... 47,814 2,200 NiSource, Inc. .................. 53,350 ----------- 111,349 ----------- Government Aircraft & Defense - 0.6% 1,000 Boeing Co. ...................... 67,950 200 LaBarge, Inc. *.................. 2,584 3,000 Raytheon Co. .................... 114,060 ----------- 184,594 ----------- Health Care & Hospital - 1.4% 400 Chemed Corp. .................... 17,336 1,300 Coventry Health Care, Inc. *..... 111,826 300 HealthTronics, Inc. *............ 2,988 5,200 UnitedHealth Group, Inc. ........ 292,240 ----------- 424,390 ----------- Information & Services - 2.0% 520 Ambassadors Group, Inc. ......... 11,596 600 American Retirement Corp. *...... 11,298 500 Arena Pharmaceuticals, Inc. *.... 4,950 300 Butler International, Inc. *..... 1,155 1,200 Checkfree Corp. *................ 45,384 25 CRA International, Inc. *........ 1,042 800 Equifax, Inc. ................... 27,952 300 Essex Corp. *.................... 6,501 600 Getty Images, Inc. *............. 51,624 2,900 H&R Block, Inc. ................. 69,542 300 Hudson Highland Group, Inc. *.... 7,491 500 Labor Ready, Inc. *.............. 12,825 300 Layne Christensen Co. *.......... 7,065 1,430 Moody's Corp. ................... 73,044 500 Pharmaceutical Product Development, Inc. *............ 28,755 2,300 Prudential Financial, Inc. ...... 155,388 300 Steiner Leisure Ltd. *........... 10,191 400 TALX Corp. ...................... 13,116 900 Weight Watchers International, Inc. *......................... 46,422 30 West Corp. *..................... 1,122 ----------- 586,463 ----------- Instruments - 1.3% 230 Agilent Technologies, Inc. *..... 7,533 200 American Science & Engineering, Inc. *......................... 13,118 500 ArthroCare Corp. *............... 20,110 100 Becton Dickinson & Co. .......... 5,243 720 Checkpoint Systems, Inc. *....... 17,078
94 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Instruments continued 540 Edwards Lifesciences Corp. *..... $ 23,981 400 IRIS International, Inc. *....... 7,376 1,600 Johnson Controls, Inc. .......... 99,280 300 LoJack Corp. *................... 6,342 2,800 Medtronic, Inc. ................. 150,137 500 MTS Systems Corp. ............... 18,885 300 Natus Medical, Inc. *............ 3,651 130 Respironics, Inc. *.............. 5,483 900 Thoratec Corp. *................. 15,984 ----------- 394,201 ----------- Insurance - 1.3% 550 ACE Ltd. ........................ 25,889 220 Allstate Corp. .................. 12,164 10 Ambac Financial Group, Inc. ..... 721 600 Everest Re Group Ltd. ........... 58,740 900 Loews Corp. ..................... 83,168 800 MGIC Investment Corp. ........... 51,360 400 Philadelphia Consolidated Holding Corp. *........................ 33,960 1,000 Torchmark Corp. ................. 52,830 500 UnumProvident Corp. ............. 10,250 700 WellChoice, Inc. *............... 53,130 ----------- 382,212 ----------- Integrated Oil Cos. - 0.9% 1,100 ConocoPhillips................... 76,901 600 Murphy Oil Corp. ................ 29,922 1,880 Occidental Petroleum Corp. ...... 160,608 ----------- 267,431 ----------- IT Hardware - 3.9% 2,600 Advanced Micro Devices, Inc. *... 65,520 1,565 Arris Group, Inc. *.............. 18,561 800 Broadcom Corp., Class A *........ 37,528 200 DIRECTV Group, Inc. *............ 2,996 800 Evergreen Solar, Inc. *.......... 7,464 2,200 Harris Corp. .................... 91,960 5,900 Intel Corp. ..................... 145,435 600 Jabil Circuit, Inc. *............ 18,552 3,220 LSI Logic Corp. *................ 31,717 4,100 Marvell Technology Group Ltd. *.............................. 189,051 1,000 Microsemi Corp. *................ 25,540 11,820 Motorola, Inc. .................. 261,105 1,300 NVIDIA Corp. *................... 44,564 1,020 On Semiconductor Corp. *......... 5,273 1,700 Powerwave Technologies, Inc. *... 22,083 4,500 Texas Instruments, Inc. ......... 152,550 308 Trident Microsystems, Inc. *..... 9,797 ----------- 1,129,696 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Land & Water Transportation - 0.9% 2,280 Burlington Northern Santa Fe Corp. ......................... $ 136,344 600 CNF, Inc. ....................... 31,500 2,180 Norfolk Southern Corp. .......... 88,421 ----------- 256,265 ----------- Mainframe & Minicomputers - 0.5% 2,500 Apple Computer, Inc. *........... 134,025 ----------- Metal Products & Machinery - 1.2% 350 Black & Decker Corp. ............ 28,732 3,000 Caterpillar, Inc. ............... 176,250 1,800 Dover Corp. ..................... 73,422 600 ESCO Technologies, Inc. *........ 30,042 400 Flow International Corp. *....... 3,088 443 Intevac, Inc. *.................. 4,567 800 JLG Industries, Inc. ............ 29,272 ----------- 345,373 ----------- Miscellaneous Finance - 1.0% 90 BKF Capital Group, Inc. ......... 2,784 350 Chicago Mercantile Exchange...... 118,055 100 Franklin Resources, Inc. ........ 8,396 600 Legg Mason, Inc. ................ 65,814 1,700 Merrill Lynch & Co., Inc. ....... 104,295 ----------- 299,344 ----------- Oil & Coal Resources - 1.8% 500 Abraxas Petroleum Corp. *........ 3,965 1,100 Anadarko Petroleum Corp. ........ 105,325 2 Atlas America, Inc. *............ 98 400 Berry Petroleum Co. ............. 26,676 400 Callon Petroleum Co. *........... 8,372 400 Noble Energy, Inc. .............. 18,760 400 Peabody Energy Corp. ............ 33,740 900 Plains Exploration & Product Co. *.............................. 38,538 200 PrimeEnergy Corp. *.............. 9,802 300 Resource America, Inc., Class A.............................. 5,319 500 Southwestern Energy Co. *........ 36,700 400 Tri-Valley Corp. *............... 3,980 1,100 Ultra Petroleum Corp. *.......... 62,568 400 Vintage Petroleum, Inc. ......... 18,264 3,732 XTO Energy, Inc. ................ 169,134 ----------- 541,241 ----------- Oil Distribution - 0.5% 1,000 Sunoco, Inc. .................... 78,200 500 Valero Energy Corp. ............. 56,530 ----------- 134,730 ----------- Oil Drilling & Services - 3.7% 200 Atwood Oceanics, Inc. *.......... 16,842 1,800 Baker Hughes, Inc. .............. 107,424 600 Cal Dive International, Inc. *... 38,046 1,000 Diamond Offshore Drilling, Inc. .......................... 61,250 1,200 ENSCO International, Inc. ....... 55,908 1,800 Global Industries Ltd. *......... 26,532 1,400 Grant Prideco, Inc. *............ 56,910
Laudus Trust Semi-Annual Report 95 See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Oil Drilling & Services continued 2,300 Grey Wolf, Inc. *................ $ 19,389 2,100 Halliburton Co. ................. 143,893 1,000 McDermott International, Inc. *.............................. 36,610 1,200 Nabors Industries Ltd. *......... 86,196 769 National-Oilwell, Inc. *......... 50,600 1,100 Noble Corp. ..................... 75,306 1,790 Patterson-UTI Energy, Inc. ...... 64,583 300 Pioneer Drilling Co. *........... 5,856 383 Pride International, Inc. *...... 10,919 1,100 Rowan Cos., Inc. ................ 39,039 700 RPC, Inc. ....................... 18,032 1,200 Superior Energy Services, Inc. *.............................. 27,708 2,300 Transocean, Inc. *............... 141,013 300 W-H Energy Services, Inc. *...... 9,726 ----------- 1,091,782 ----------- Photooptical, Micros & Office Machinery - 0.8% 900 EMC Corp. *...................... 11,646 4,700 Hewlett-Packard Co. ............. 137,240 800 M-Systems Flash Disk Pioneers Ltd. *......................... 23,936 1,100 NCR Corp. *...................... 35,101 1,020 UNOVA, Inc. *.................... 35,680 700 VASCO Data Security International, Inc. *.......... 6,349 ----------- 249,952 ----------- Publishing, Broadcasting & Cinema - 0.6% 500 Central European Media Enterprises Ltd., Class A *.... 26,405 2,340 McGraw-Hill Cos., Inc. .......... 112,414 3,900 Sirius Satellite Radio, Inc. *... 25,545 300 Tribune Co. ..................... 10,167 70 Walt Disney Co. ................. 1,689 100 XM Satellite Radio Holdings, Inc., Class A *................ 3,591 ----------- 179,811 ----------- Real Estate Development - 0.0% 200 St Joe Co. ...................... 12,490 ----------- Real Estate Investment Trusts - 0.0% 300 iStar Financial, Inc. ........... 12,129 ----------- Restaurants, Hotels & Theaters - 0.9% 6,480 Cendant Corp. ................... 133,747 1,600 Denny's Corp. *.................. 6,640 300 Famous Dave's of America, Inc. *.............................. 3,576 400 Mgm Mirage *..................... 17,508 400 Monarch Casino & Resort, Inc. *.............................. 6,796 600 Penn National Gaming, Inc. *..... 18,666 500 Station Casinos, Inc. ........... 33,180 900 Yum! Brands, Inc. ............... 43,569 ----------- 263,682 ----------- Retail - 4.4% 1,300 7-Eleven, Inc. *................. 46,293 900 Abercrombie & Fitch Co., Class A.............................. 44,865
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Retail continued 150 Advance Auto Parts, Inc. *....... $ 5,802 110 American Eagle Outfitters, Inc. .......................... 2,588 170 Barnes & Noble, Inc. ............ 6,409 900 bebe stores, Inc................. 15,750 100 Best Buy Co., Inc. .............. 4,353 2,800 Caremark Rx, Inc. *.............. 139,804 2,100 Chico's FAS, Inc. *.............. 77,280 500 Children's Place Retail Stores, Inc. *......................... 17,820 6,440 CVS Corp. ....................... 186,824 1,300 Federated Department Stores, Inc. .......................... 86,931 930 GSI Commerce, Inc. *............. 18,507 3,700 Home Depot, Inc. ................ 141,118 1,800 J.C. Penney Co., Inc. ........... 85,356 1,860 Lowe's Cos., Inc. ............... 119,784 4,400 Nordstrom, Inc. ................. 151,008 1,050 O'Reilly Automotive, Inc. *...... 29,589 2,400 Office Depot, Inc. *............. 71,280 800 Restoration Hardware, Inc. *..... 5,056 500 Tractor Supply Co. *............. 22,825 230 United Retail Group, Inc. *...... 1,757 ----------- 1,280,999 ----------- Software - 2.3% 1,627 Activision, Inc. *............... 33,272 900 Allscripts Healthcare Solution, Inc. *......................... 16,218 1,000 Amdocs Ltd. *.................... 27,730 1,200 Autodesk, Inc. .................. 55,728 2,300 BMC Software, Inc. *............. 48,530 70 Bottomline Technologies, Inc. *.............................. 1,056 500 Cerner Corp. *................... 43,465 2,200 Cognizant Technology Solutions Corp. *........................ 102,499 1,700 Computer Sciences Corp. *........ 80,427 900 Convera Corp. *.................. 12,690 1,400 Entrust, Inc. *.................. 7,840 160 Fidelity National Financial, Inc. .......................... 7,123 1,619 Informatica Corp. *.............. 19,460 870 Internet Security Systems *...... 20,889 245 ManTech International Corp., Class A *...................... 6,470 570 McAfee, Inc. *................... 17,909 1,700 Micromuse, Inc. *................ 13,396 1,300 Openwave Systems, Inc. *......... 23,374 3,700 Oracle Corp. *................... 45,843 680 Radiant Systems, Inc. *.......... 7,018 100 Sybase, Inc. *................... 2,342 900 TriZetto Group, Inc. *........... 12,708 500 Ultimate Software Group, Inc. *.............................. 9,210 4,010 WebMD Corp. *.................... 44,431 300 Websense, Inc. *................. 15,363 500 Witness Systems, Inc. *.......... 10,445 ----------- 685,436 -----------
96 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements - Statement of Portfolio Investments continued Laudus Rosenberg Global Long/Short Equity Fund (a) (Unaudited)
SHARES OR PRINCIPAL VALUE ----------------------------------------------------------- Textiles & Apparel - 0.9% 4,800 Coach, Inc. *.................... $ 150,528 506 K-Swiss, Inc., Class A........... 14,962 600 Phillips-Van Heusen Corp. ....... 18,612 900 Polo Ralph Lauren Corp. ......... 45,270 600 VF Corp. ........................ 34,782 ----------- 264,154 ----------- Wholesale - 1.3% 147 Aristotle Corp. *................ 1,069 2,400 Cardinal Health, Inc. ........... 152,255 1,623 Express Scripts, Inc. *.......... 100,951 1,800 McKesson Corp. .................. 85,410 200 Omnicare, Inc. .................. 11,246 700 W.W. Grainger, Inc. ............. 44,044 100 WESCO International, Inc. *...... 3,387 ----------- 398,362 ----------- 13,302,551 ----------- TOTAL COMMON STOCK (COST $22,706,726)............. 26,403,940 ----------- REPURCHASE AGREEMENT - 17.7% UNITED STATES - 17.7% $5,247,139 Bear Stearns dated 9/30/05, due 10/3/05 at 3.25% with a maturity value of $5,248,560 (fully collateralized by U.S. Treasury Bond)................. 5,247,139 ----------- TOTAL REPURCHASE AGREEMENT (COST $5,247,139).................... 5,247,139 ----------- TOTAL INVESTMENTS (COST $27,953,865) (B) - 106.6%...... 31,651,079 NET OTHER ASSETS (LIABILITIES) - (6.6)%......................... (1,964,765) ----------- NET ASSETS - 100.0%.............. $29,686,314 ===========
--------------- * Non-income producing security. (a) All long positions are pledged as collateral for securities sold short. (b) Represents cost for financial reporting purposes, is substantially the same as federal income tax purposes, and differs from value by net unrealized appreciation as follows: Unrealized appreciation.................... $3,935,066 Unrealized depreciation.................... (237,852) ---------- Net unrealized appreciation................ $3,697,214 ==========
FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACT UNREALIZED DELIVERY AMOUNT APPRECIATION/ DATE (LOCAL CURRENCY) DEPRECIATION -------- ---------------- ------------- Receive Euro in Exchange for 7,233 U.S. Dollars 10/3/05 6,000 $ (22) Receive Japanese Yen in Exchange for 147,220 U.S. Dollars 10/3/05 16,683,000 (185) Receive Swiss Francs in Exchange for 88,940 U.S Dollars 10/4/05 115,000 (50) Receive Japanese Yen in Exchange for 530,894 U.S. Dollars 10/4/05 60,060,000 (1,497) Receive U.S. Dollars in Exchange for 552,853,000 Japanese Yen 1/31/06 5,081,369 140,513 Receive U.S. Dollars in Exchange for 42,036,000 Japanese Yen 1/31/06 382,946 7,270 Receive U.S. Dollars in Exchange for 18,200,000 Japanese Yen 1/31/06 165,569 2,915 Receive U.S. Dollars in Exchange for 84,937,000 Japanese Yen 1/31/06 783,154 24,071 Receive U.S. Dollars in Exchange for 9,461,000 Japanese Yen 1/31/06 87,198 2,645 Receive U.S. Dollars in Exchange for 37,799,000 Japanese Yen 1/31/06 388,034 224 Receive U.S. Dollars in Exchange for 60,060,000 Japanese Yen 1/31/06 538,018 1,261 -------- $177,145 ========
Laudus Trust Semi-Annual Report 97 See the accompanying notes to the financial statements. Financial Statements Statement of Securities Sold Short LAUDUS ROSENBERG GLOBAL LONG/SHORT EQUITY FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 89.6% BELGIUM - 1.5% Banks & Credit Institutions - 0.6% 4,200 Dexia............................. $ 94,735 900 KBC Bankverzekeringsholding....... 72,896 ----------- 167,631 ----------- Cellular & Wireless - 0.2% 900 Mobistar SA....................... 73,977 ----------- Drugs & Pharmaceuticals - 0.2% 1,200 UCB SA............................ 63,335 ----------- Financial Investments - 0.2% 600 Groupe Bruxelles Lambert SA....... 58,583 ----------- Retail - 0.3% 600 Colruyt SA........................ 78,015 ----------- 441,541 ----------- DENMARK - 1.0% Drugs & Pharmaceuticals - 0.6% 2,100 H. Lundbeck A/S................... 53,360 1,600 Novo-Nordisk A/S, Class B......... 79,120 1,200 Novozymes A/S, Class B............ 61,853 ----------- 194,333 ----------- Instruments - 0.2% 1,200 William Demant Holding A/S *...... 56,247 ----------- Metal Products & Machinery - 0.2% 2,000 Vestas Wind Systems A/S *......... 48,322 ----------- 298,902 ----------- FINLAND - 0.4% Forest Products & Paper - 0.3% 3,500 UPM-Kymmene Oyj................... 70,030 ----------- Software - 0.1% 1,200 Tietoenator Oyj................... 40,305 ----------- 110,335 ----------- FRANCE - 2.9% Banks & Credit Institutions - 0.3% 3,000 Credit Agricole................... 87,965 ----------- Chemicals & Rubber - 0.3% 540 L'Air Liquide SA.................. 99,285 ----------- Publishing, Broadcasting & Cinema - 0.3% 2,100 JC Decaux SA *.................... 46,333 1,152 Societe Television Francaise 1.... 30,553 ----------- 76,886 ----------- Real Estate Development - 0.4% 600 Klepierre......................... 60,206 400 Unibail........................... 58,066 ----------- 118,272 ----------- Retail - 0.6% 2,000 Carrefour SA...................... 92,003 650 Pinault-Printemps-Redoute SA...... 68,191 ----------- 160,194 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, FRANCE continued Soaps & Cosmetics - 0.3% 1,000 L' Oreal SA....................... $ 77,450 ----------- Software - 0.2% 1,200 Dassault Systemes SA.............. 62,008 ----------- Textiles & Apparel - 0.3% 1,200 LVMH Moet Hennessy Louis Vuitton SA.............................. 98,924 ----------- Wholesale - 0.2% 800 Essilor International SA.......... 66,238 ----------- 847,222 ----------- GERMANY - 1.9% Airlines - 0.2% 4,000 Deutsche Lufthansa AG............. 53,067 ----------- Autos - 0.2% 80 Porsche AG..................... 61,422 ----------- Banks & Credit Institutions - 0.2% 1,200 Hypo Real Estate Holding AG....... 60,854 ----------- Chemicals & Rubber - 0.0% 50 Continental AG................. 4,103 ----------- Drugs & Pharmaceuticals - 0.5% 1,200 Altana AG......................... 67,127 1,200 Schering AG....................... 76,040 ----------- 143,167 ----------- Insurance - 0.1% 2,000 MLP AG............................ 41,795 ----------- Miscellaneous Finance - 0.3% 800 Deutsche Boerse AG................ 76,323 ----------- Soaps & Cosmetics - 0.2% 800 Henkel KGaA....................... 67,892 ----------- Software - 0.2% 400 SAP AG............................ 69,218 ----------- 577,841 ----------- IRELAND - 0.2% Banks & Credit Institutions - 0.2% 4,630 Anglo Irish Bank Corp., plc....... 63,039 ----------- ITALY - 2.7% Banks & Credit Institutions - 0.9% 10,000 Banca Carige S.p.A. Cassa di Risparmio di Genova e Imperia... 38,034 3,000 Banca Lombarda e Piemontese S.p.A. ......................... 42,540 3,808 Mediobanca S.p.A. ................ 74,911 15,000 UniCredito Italiano S.p.A. ....... 84,540 ----------- 240,025 ----------- Electric Utilities - 0.2% 24,000 AEM S.p.A. ....................... 51,885 ----------- Furniture & Household Items - 0.2% 6,000 Bulgari S.p.A. ................... 67,488 -----------
98 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, ITALY continued Insurance - 0.7% 6,000 Alleanza Assicurazioni S.p.A. .... $ 74,049 2,500 Assicurazioni Generali S.p.A. .... 78,832 9,000 Mediolanum S.p.A. ................ 61,702 ----------- 214,583 ----------- Publishing, Broadcasting & Cinema - 0.5% 6,000 Gruppo Editoriale L'Espresso S.p.A. ......................... 33,942 117,000 Seat Pagine Gialle S.p.A. *....... 57,646 66,000 Telecom Italia Media S.p.A. *..... 43,225 ----------- 134,813 ----------- Restaurants, Hotels & Theaters - 0.1% 3,000 Autogrill S.p.A. ................. 42,324 ----------- Textiles & Apparel - 0.1% 4,000 Benetton Group S.p.A. ............ 42,877 ----------- 793,995 ----------- JAPAN - 22.4% Agriculture, Food & Beverage - 1.1% 7,000 Ajinomoto Co., Inc. .............. 73,639 600 Ito En Ltd. ...................... 28,070 4,000 Meiji Dairies Corp. .............. 21,991 5,000 Nichirei Corp. ................... 20,529 3,300 Nisshin Seifun Group, Inc. ....... 32,070 1,500 Nissin Food Products Co., Ltd. ... 39,053 2,000 Toyo Suisan Kaisha Ltd. .......... 34,150 3,000 Yakult Honsha Co., Ltd. .......... 75,991 ----------- 325,493 ----------- Autos - 2.6% 2,100 Aisin Seiki Co., Ltd. ............ 59,577 3,000 Daihatsu Motor Co., Ltd. ......... 30,396 3,600 Denso Corp. ...................... 104,352 5,000 Hino Motors Ltd. ................. 33,921 1,400 Honda Motor Co., Ltd. ............ 79,189 7,000 Isuzu Motors Ltd. ................ 25,780 2,000 Koito Manufacturing Co., Ltd. .... 24,670 2,000 Koyo Seiko Co., Ltd............... 30,167 9,400 Nissan Motors Co., Ltd. .......... 107,335 6,000 NTN Corp. ........................ 35,894 2,200 Stanley Electric Co., Ltd. ....... 33,320 2,000 Tokai Rika Co., Ltd. ............. 44,846 900 Toyoda Gosei Co., Ltd. ........... 17,128 1,800 Toyota Industries Corp. .......... 59,789 1,900 Toyota Motor Corp. ............... 87,048 ----------- 773,412 ----------- Banks & Credit Institutions - 0.8% 500 Aeon Credit Service Co., Ltd. .... 36,344 9,000 Chiba Bank Ltd. .................. 73,189 4,000 Ogaki Kyoritsu Bank Ltd. ......... 23,260 2,000 OMC Card, Inc. ................... 32,846 3,000 Shikoku Bank Ltd. ................ 14,934 4,000 Suruga Bank Ltd. ................. 44,053 ----------- 224,626 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Basic Minerals & Metals - 0.9% 7,000 Daido Steel Co., Ltd. ............ $ 45,022 41,000 Sumitomo Metal Industries Ltd. ... 143,771 8,000 Sumitomo Metal Mining Co., Ltd. ........................... 74,150 ----------- 262,943 ----------- Beer, Liquor & Tobacco - 0.1% 4,000 Takara Holdings, Inc. ............ 25,198 ----------- Cellular & Wireless - 0.3% 49 NTT DoCoMo, Inc. ................. 87,207 ----------- Chemicals & Rubber - 1.3% 3,000 JSR Corp. ........................ 62,380 3,000 Kaneka Corp. ..................... 39,145 7,000 Mitsubishi Gas Chemical Co., Inc. ........................... 46,749 8,000 Mitsubishi Rayon Co., Ltd. ....... 35,806 3,000 Nissan Chemical Industries Ltd. ........................... 37,612 2,300 Shin-Etsu Chemical Co., Ltd. ..... 100,309 4,000 Tokuyama Corp. ................... 39,189 3,000 Zeon Corp. ....................... 32,775 ----------- 393,965 ----------- Communications Utilities - 0.3% 1,800 Softbank Corp. ................... 99,912 ----------- Construction & Homebuilding - 0.2% 3,000 Chiyoda Corp. .................... 55,242 ----------- Consumer Durables - 0.2% 200 Funai Electric Co., Ltd. ......... 17,762 1,000 Pioneer Corp. .................... 14,238 1,300 Shimano, Inc. .................... 35,048 ----------- 67,048 ----------- Drugs & Pharmaceuticals - 1.8% 2,500 Astellas Pharma, Inc. ............ 94,054 3,100 Chugai Pharmaceutical Co. ........ 59,132 580 Daiichi Sankyo Co., Ltd. *........ 11,871 3,000 Dainippon Sumitomo Pharma Co., Ltd. ........................... 37,004 2,100 Eisai Co., Ltd. .................. 89,736 2,000 Hisamitsu Pharmaceutical Co., Inc. ........................... 53,392 5,000 Meiji Seika Laisha Ltd. .......... 25,947 1,300 Ono Pharmaceutical Co., Ltd. ..... 60,590 1,100 Santen Pharmaceutical Co., Ltd. ........................... 28,493 1,400 Takeda Pharmaceutical Co., Ltd. ........................... 83,383 ----------- 543,602 ----------- Electric Utilities - 0.2% 2,700 Hokuriki Electric Power Co. ...... 55,784 ----------- Financial Investments - 0.8% 2,200 Credit Saison Co., Ltd. .......... 96,528 600 JAFCO Co., Ltd. .................. 39,278 500 ORIX Corp. ....................... 90,308 300 Sumisho Lease Co., Ltd. .......... 12,529 ----------- 238,643 -----------
Laudus Trust Semi-Annual Report 99 See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Forest Products & Paper - 0.4% 12 Nippon Paper Group, Inc. ......... $ 43,454 11,000 Oji Paper Co., Ltd. .............. 60,088 600 Uni-Charm Corp. .................. 25,903 ----------- 129,445 ----------- Furniture & Household Items - 0.2% 3,000 Ushio, Inc. ...................... 60,925 ----------- Information & Services - 0.4% 600 Meitec Corp. ..................... 19,189 900 Park24 Co., Ltd. *................ 19,229 1,500 Secom Co., Ltd. .................. 72,159 ----------- 110,577 ----------- Instruments - 0.9% 3,000 Anritsu Corp. .................... 16,203 1,000 NEOMAX Co., Ltd. ................. 28,370 4,000 Nikon Corp. ...................... 50,467 3,000 Olympus Corp. .................... 66,476 2,100 Terumo Corp. ..................... 67,532 3,000 Yokogawa Electric Corp. .......... 46,837 ----------- 275,885 ----------- IT Hardware - 3.6% 700 Advantest Corp. .................. 54,273 3,000 Dainippon Screen Mfg. Co., Ltd. ........................... 19,586 400 Disco Corp. ...................... 16,634 1,200 Fanuc Ltd. ....................... 97,058 900 Hamamatsu Photonics K.K. ......... 20,775 500 Hirose Electric Co., Ltd. ........ 58,282 700 Hoya Corp. ....................... 23,251 2,100 Hoya Corp. W/I *.................. 71,419 1,400 Ibiden Co., Ltd. ................. 58,344 300 Keyence Corp. .................... 75,436 1,700 Murata Manufacturing Co., Ltd. ... 94,811 1,300 Nitto Denko Corp. ................ 73,189 3,000 Sanken Electric Co., Ltd. ........ 34,441 3,000 Sankyo Seiki Mfg. Co. Ltd. ....... 29,075 6,000 Sharp Corp. ...................... 86,907 1,000 Tdk Corp. ........................ 71,278 1,400 Tokyo Electron Ltd. .............. 74,379 18,000 Toshiba Corp. .................... 79,295 ----------- 1,038,433 ----------- Land & Water Transportation - 1.2% 12 Central Japan Railway Co. ........ 93,462 7,000 Keihin Electric Express Railway Co., Ltd. ...................... 43,974 3,000 Keisei Electric Railway Co., Ltd. ........................... 16,467 18,000 Kintetsu Corp. ................... 60,899 11,000 Mitsui O.S.K. Lines Ltd. ......... 87,903 10,000 Tobu Railway Co., Ltd. ........... 39,912 ----------- 342,617 ----------- Metal Products & Machinery - 1.0% 3,000 Bosch Corp. ...................... 15,965 3,000 Daikin Industries Ltd. ........... 80,352 400 Nidec Corp. ...................... 23,789 400 Nidec Corp. W/I *................. 23,753 7,000 NSK Ltd. ......................... 38,608
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, JAPAN continued Metal Products & Machinery continued 600 Smc Corp. ........................ $ 79,877 3,000 Yaskawa Electric Corp. ........... 22,969 ----------- 285,313 ----------- Miscellaneous Finance - 0.3% 6,000 Mizuho Investors Securities Co., Ltd. *.......................... 14,167 7,000 Nikko Cordial Corp. .............. 80,978 ----------- 95,145 ----------- Publishing, Broadcasting & Cinema - 0.2% 4,000 Dai Nippon Printing Co., Ltd. .... 64,493 600 Toppan Forms Co., Ltd. ........... 7,401 ----------- 71,894 ----------- Real Estate Development - 0.2% 5,000 Mitsubishi Estate Co., Ltd. ...... 68,634 ----------- Retail - 1.2% 5,300 Aeon Co., Ltd. ................... 106,467 4,000 Daimaru, Inc. .................... 47,084 300 Don Quijote Co., Ltd. ............ 19,295 800 Fast Retailing Co., Ltd. ......... 60,687 400 Hikari Tsushin, Inc. ............. 25,374 600 Izumi Co., Ltd. *................. 16,018 800 Komeri Co., Ltd. ................. 26,079 700 Matsumotokiyoshi Co., Ltd. ....... 22,758 300 Shimamura Co., Ltd. .............. 33,251 ----------- 357,013 ----------- Soaps & Cosmetics - 0.5% 3,000 Kao Corp. ........................ 73,877 2,000 Sanyo Chemical Industries Ltd. ... 15,859 5,000 Shiseido Co., Ltd. ............... 72,070 ----------- 161,806 ----------- Software - 0.3% 400 Hitachi Software Engineering Co., Ltd. ........................... 6,418 200 OBIC Co., Ltd. ................... 34,009 1,000 Oracle Corp. Japan................ 44,052 400 Sumisho Computer Systems Corp. ... 7,877 ----------- 92,356 ----------- Trade Co. - 0.9% 16,000 Marubeni Corp. ................... 74,432 5,000 Mitsubishi Corp. ................. 98,678 7,000 Mitsui & Co., Ltd. ............... 87,639 ----------- 260,749 ----------- Wholesale - 0.5% 3,000 Toyota Tsusho Corp. .............. 54,582 1,100 Yamada Denki Co., Ltd. ........... 83,638 ----------- 138,220 ----------- 6,642,087 ----------- NETHERLANDS - 1.2% Banks & Credit Institutions - 0.4% 3,765 ABN AMRO Holding NV............... 90,171 -----------
100 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, NETHERLANDS continued Chemicals & Rubber - 0.2% 1,600 Akzo Nobel NV..................... $ 69,737 ----------- Financial Investments - 0.2% 5,000 Reed Elsevier NV.................. 68,978 ----------- Miscellaneous Finance - 0.2% 1,500 Euronext NV....................... 66,010 ----------- Publishing, Broadcasting & Cinema - 0.2% 2,700 Wolters Kluwer NV................. 50,227 ----------- 345,123 ----------- NORWAY - 0.8% Banks & Credit Institutions - 0.2% 6,000 DNB NOR ASA....................... 61,853 ----------- Forest Products & Paper - 0.1% 3,000 Norske Skogindustrier ASA......... 44,328 ----------- Insurance - 0.2% 6,000 Storebrand ASA.................... 58,646 ----------- Real Estate Development - 0.3% 9,000 Telenor ASA....................... 80,408 ----------- 245,235 ----------- SPAIN - 1.1% Banks & Credit Institutions - 0.4% 1,000 Banco Bilbao Vizcaya Argentaria SA.............................. 17,533 4,500 Banco Popular Espanol SA.......... 54,834 900 Bankinter SA...................... 46,722 ----------- 119,089 ----------- Construction & Homebuilding - 0.3% 2,940 Abertis Infraestructuras SA....... 85,499 ----------- Metal Products & Machinery - 0.1% 1,467 Zardoya Otis SA................... 40,988 ----------- Retail - 0.3% 3,000 Industria de Diseno Textil SA..... 88,037 ----------- 333,613 ----------- SWEDEN - 1.3% Autos - 0.2% 1,400 Scania AB, Class B................ 50,573 ----------- Banks & Credit Institutions - 0.1% 1,000 Svenska Handelsbanken AB, Class A............................... 23,158 ----------- Communications Utilities - 0.2% 4,000 Eniro AB.......................... 46,702 ----------- Consumer Durables - 0.2% 3,000 Electrolux AB, Class B............ 70,247 ----------- Metal Products & Machinery - 0.3% 1,800 Sandvik AB........................ 89,522 ----------- Retail - 0.3% 2,800 Hennes & Mauritz AB, Series B..... 99,881 ----------- 380,083 ----------- SWITZERLAND - 0.2% Instruments - 0.2% 270 Nobel Biocare Holding AG.......... 63,630 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued UNITED KINGDOM - 6.7% Agriculture, Food & Beverage - 0.4% 9,000 Cadbury Schweppes plc............. $ 90,790 5,000 Tate & Lyle plc................... 40,056 ----------- 130,846 ----------- Airlines - 0.4% 6,300 BAA plc........................... 69,330 10,000 British Airways plc *............. 51,630 ----------- 120,960 ----------- Autos - 0.1% 6,000 GKN plc........................... 31,189 ----------- Banks & Credit Institutions - 0.6% 6,000 Cattles plc....................... 31,745 1,500 Intermediate Capital Group plc.... 32,512 4,400 Standard Chartered plc............ 94,903 ----------- 159,160 ----------- Basic Minerals & Metals - 0.1% 1,800 Lonmin plc........................ 41,110 ----------- Beer, Liquor & Tobacco - 0.3% 2,100 Diageo plc........................ 30,184 7,000 Scottish & Newcastle plc.......... 57,251 ----------- 87,435 ----------- Chemicals & Rubber - 0.2% 6,000 Imperial Chemical Industries plc............................. 31,666 1,500 Johnson Matthey plc............... 31,295 ----------- 62,961 ----------- Communications Utilities - 0.7% 10,000 British Sky Broadcasting Group plc............................. 98,850 24,000 BT Group plc...................... 94,071 ----------- 192,921 ----------- Financial Investments - 0.4% 2,100 Man Group plc..................... 61,331 7,000 Reed Elsevier plc................. 64,751 ----------- 126,082 ----------- Furniture & Household Items - 0.2% 3,600 Smiths Group plc.................. 60,887 ----------- Information & Services - 0.5% 7,000 Capita Group plc.................. 46,510 2,100 Intertek Group plc................ 25,314 6,000 Michael Page International plc.... 26,031 6,000 Serco Group plc................... 27,142 9,000 Taylor Nelson Sofres plc.......... 31,745 ----------- 156,742 ----------- Instruments - 0.2% 7,000 Smith & Nephew plc................ 58,763 ----------- Insurance - 0.1% 6,000 St. James's Place Capital plc..... 27,301 ----------- IT Hardware - 0.1% 16,000 ARM Holdings plc.................. 33,156 ----------- Land & Water Transportation - 0.1% 3,250 Associated British Ports Holdings plc............................. 30,106 -----------
Laudus Trust Semi-Annual Report 101 See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED KINGDOM continued Metal Products & Machinery - 0.2% 5,000 Rexam plc......................... $ 45,369 ----------- Miscellaneous Finance - 0.2% 611 ICAP plc.......................... 3,944 1,568 London Stock Exchange plc......... 15,762 2,100 Schroders plc..................... 34,221 ----------- 53,927 ----------- Publishing, Broadcasting & Cinema - 0.8% 4,000 Daily Mail & General Trust, Class A............................... 46,559 2,800 Emap plc.......................... 40,641 10,000 EMI Group plc..................... 42,767 4,800 Informa plc....................... 33,523 1,000 Johnston Press plc................ 8,765 2,471 United Business Media plc......... 24,117 ----------- 196,372 ----------- Restaurants, Hotels & Theaters - 0.1% 2,800 Punch Taverns plc................. 39,505 ----------- Retail - 0.5% 5,000 Burberry Group plc................ 38,094 3,750 GUS plc........................... 56,512 18,000 William Morrison Supermarkets plc............................. 56,427 ----------- 151,033 ----------- Soaps & Cosmetics - 0.3% 3,300 Reckitt Benckiser plc............. 100,510 ----------- Software - 0.1% 7,881 Sage Group plc.................... 32,037 ----------- Wholesale - 0.1% 6,000 Electrocomponents plc............. 25,740 6,000 Premier Farnell plc............... 15,978 ----------- 41,718 ----------- 1,980,090 ----------- UNITED STATES - 45.3% Agriculture, Food & Beverage - 1.6% 900 Bunge, Ltd. ...................... 47,358 2,300 Coca-Cola Co. .................... 99,337 1,300 ConAgra Foods, Inc. .............. 32,175 5,600 Sara Lee Corp. ................... 106,120 2,800 Wm. Wrigley Jr. Co. .............. 201,264 ----------- 486,254 ----------- Airlines - 0.2% 1,400 Airtran Holdings, Inc. *.......... 17,724 3,100 Southwest Airlines Co. ........... 46,035 ----------- 63,759 ----------- Autos - 0.2% 1,500 General Motors Corp. ............. 45,915 800 Tenneco Automotive, Inc. *........ 14,008 ----------- 59,923 ----------- Banks & Credit Institutions - 2.6% 1,600 American Express Co. ............. 91,904 400 Commerce Bancorp, Inc. ........... 12,276 2,900 E*Trade Financial Corp. *......... 51,040
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Banks & Credit Institutions continued 2,800 Federal Home Loan Mortgage Corporation..................... $ 158,088 3,900 Fifth Third Bancorp............... 143,247 11,300 Ford Motor Co. ................... 111,418 3,201 Hudson City Bancorp, Inc. ........ 38,087 3,400 North Fork Bancorporation, Inc. ........................... 86,700 100 Northern Trust Corp. ............. 5,055 2,100 Popular, Inc. .................... 50,862 900 UCBH Holdings, Inc. .............. 16,488 ----------- 765,165 ----------- Basic Minerals & Metals - 0.9% 600 Alcoa, Inc. ...................... 14,652 600 American Superconductor Corp. *... 6,210 900 Apex Silver Mines Ltd. *.......... 14,139 600 Century Aluminum Co. *............ 13,488 1,200 Hecla Mining Co. *................ 5,256 4,300 Newmont Mining Corp. ............. 202,831 2,000 Stillwater Mining Co. *........... 18,300 ----------- 274,876 ----------- Beer, Liquor & Tobacco - 0.6% 3,850 Anheuser-Busch Cos., Inc. ........ 165,704 ----------- Biotechnology - 1.5% 1,500 Applera Corp. - Celera Genomics Group *......................... 18,195 400 BioCryst Pharmaceuticals, Inc. *............................... 3,912 900 CuraGen Corp. *................... 4,455 1,000 Diversa Corp. *................... 5,790 761 Dyax Corp. *...................... 4,254 2,798 Gilead Sciences, Inc. *........... 136,430 1,800 Human Genome Sciences, Inc. *..... 24,462 1,000 ICOS Corp. *...................... 27,620 800 ImClone Systems, Inc. *........... 25,160 1,520 Incyte Corp. *.................... 7,144 1,500 Medimmune, Inc. *................. 50,475 4,700 Millennium Pharmaceuticals, Inc. *............................... 43,851 1,100 Nabi Biopharmaceuticals *......... 14,410 600 Neurocrine Biosciences, Inc. *.... 29,514 800 Onyx Pharmaceuticals, Inc. *...... 19,984 960 Seattle Genetics, Inc. *.......... 5,040 900 Tanox, Inc. *..................... 13,185 800 Telik, Inc. *..................... 13,088 ----------- 446,969 ----------- Chemicals & Rubber - 0.8% 500 Cabot Microelectronics Corp. *.... 14,690 600 FMC Corp. *....................... 34,332 600 Georgia Gulf Corp. ............... 14,448 500 International Flavors & Fragrances, Inc. ............... 17,820 600 MacDermid, Inc. .................. 15,756 1,600 PolyOne Corp. *................... 9,696 2,500 Praxair, Inc. .................... 119,825 800 Wellman, Inc. .................... 5,064 ----------- 231,631 -----------
102 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Communications Utilities - 1.3% 200 Earthlink, Inc. *................. $ 2,140 1,900 Mediacom Communications Corp. *... 14,022 1,270 NTL, Inc. *....................... 84,836 3,900 Verizon Communications, Inc. ..... 127,491 4,370 Yahoo!, Inc. *.................... 147,881 ----------- 376,370 ----------- Construction & Homebuilding - 0.1% 1,000 Dycom Industries, Inc. *.......... 20,220 ----------- Construction Materials - 0.0% 280 Ceradyne, Inc. *.................. 10,270 ----------- Consumer Durables - 0.0% 1,100 Fleetwood Enterprises, Inc. *..... 13,530 ----------- Drugs & Pharmaceuticals - 2.7% 900 Adolor Corp. *.................... 9,612 800 Allergan, Inc. ................... 73,296 1,000 Barr Pharmaceuticals, Inc. *...... 54,920 1,300 Chiron Corp. *.................... 56,706 1,400 Dendreon Corp. *.................. 9,394 1,000 Discovery Laboratories, Inc. *.... 6,450 4,800 Eli Lilly & Co. .................. 256,896 500 EPIX Pharmaceuticals, Inc. *...... 3,850 2,400 Forest Laboratories, Inc. *....... 93,528 500 Guilford Pharmaceuticals, Inc. *............................... 1,825 700 ImmunoGen, Inc. *................. 5,138 600 Inspire Pharmaceuticals, Inc. *... 4,560 200 Isis Pharmaceuticals, Inc. *...... 1,010 1,700 Ligand Pharmaceuticals, Inc., Class B *....................... 17,233 700 Martek Biosciences Corp. *........ 24,591 132 Nektar Therapeutic *.............. 2,237 400 Neose Technologies, Inc. *........ 940 649 Neurogen Corp. *.................. 4,465 700 NPS Pharmaceuticals, Inc. *....... 7,077 800 Pain Therapeutics, Inc. *......... 5,032 400 Pharmacyclics, Inc. *............. 3,608 1,000 Sepracor, Inc. *.................. 58,990 2,200 Wyeth............................. 101,794 ----------- 803,152 ----------- Electric Utilities - 1.0% 5,000 AES Corp. *....................... 82,150 2,100 Progress Energy, Inc. ............ 93,975 3,320 Southern Co. ..................... 118,723 ----------- 294,848 ----------- Financial Investments - 1.8% 400 CEVA, Inc. *...................... 2,072 400 Digital Theater Systems, Inc. *... 6,736 16,000 General Electric Co. ............. 538,720 ----------- 547,528 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Forest Products & Paper - 0.7% 900 Buckeye Technologies, Inc. *...... $ 7,308 700 Caraustar Industries, Inc. *...... 7,686 700 Sealed Air Corp. *................ 33,222 3,900 Smurfit-Stone Container Corp. *... 40,404 1,800 Weyerhaeuser Co. ................. 123,750 ----------- 212,370 ----------- Furniture & Household Items - 0.7% 4,000 International Game Technology..... 108,000 1,700 Jacuzzi Brands, Inc. *............ 13,702 3,600 Mattel, Inc. ..................... 60,048 400 Rogers Corp. *.................... 15,480 500 Select Comfort Corp. *............ 9,990 ----------- 207,220 ----------- Gas & Other Public Utilities - 0.5% 5,500 El Paso Corp. .................... 76,450 2,100 Waste Management, Inc. ........... 60,081 ----------- 136,531 ----------- Government Aircraft & Defense - 0.0% 100 Innovative Solutions & Support, Inc. *.......................... 1,553 ----------- Health Care & Hospital - 0.6% 100 Apria Healthcare Group, Inc. *.... 3,191 600 Array Biopharma, Inc. *........... 4,308 1,100 Laboratory Corp. of America Holdings *...................... 53,581 800 Odyssey Healthcare, Inc. *........ 13,576 900 Quest Diagnostics, Inc. .......... 45,486 400 RehabCare Group, Inc. *........... 8,208 4,300 Tenet Healthcare Corp. *.......... 48,289 300 VistaCare, Inc., Class A *........ 4,341 ----------- 180,980 ----------- Information & Services - 1.9% 4,500 Accenture Ltd., Class A *......... 114,570 1,200 Apollo Group, Inc., Class A *..... 79,668 500 Career Education Corp. *.......... 17,780 900 Charles River Laboratories International, Inc. *........... 39,258 1,500 DeVry, Inc. *..................... 28,575 800 DiamondCluster International, Inc. *............................... 6,064 800 Education Management Corp. *...... 25,792 1,300 Exelixis, Inc. *.................. 9,971 800 Hewitt Associates, Inc. *......... 21,824 800 Jupitermedia Corp. *.............. 14,168 900 Korn/Ferry International *........ 14,751 800 Netratings, Inc. *................ 12,176 700 Nuvelo, Inc. *.................... 6,720 2,300 Paychex, Inc. .................... 85,284 1,200 Regeneron Pharmaceuticals, Inc. *............................... 11,388 1,040 Sotheby's Holdings, Inc., Class A *............................... 17,389 1,200 Total System Services, Inc. ...... 27,972 1,300 Viad Corp. ....................... 35,555 ----------- 568,905 -----------
Laudus Trust Semi-Annual Report 103 See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Instruments - 2.1% 900 Align Technology, Inc. *.......... $ 6,048 1,800 Applera Corp. - Applied Biosystems Group........................... 41,832 1,900 Biomet, Inc. ..................... 65,949 400 Catapult Communications Corp. *... 7,336 800 Cepheid, Inc. *................... 5,912 1,000 Danaher Corp. .................... 53,830 600 FEI Co. *......................... 11,550 500 IDEXX Laboratories, Inc. *........ 33,440 300 KVH Industries, Inc. *............ 2,925 300 Measurement Specialties, Inc. *... 6,360 300 North American Scientific, Inc. *............................... 789 300 Photon Dynamics, Inc. *........... 5,745 500 Regeneration Technologies, Inc. *............................... 4,085 300 Staar Surgical Co. *.............. 1,653 1,600 Stryker Corp. .................... 79,088 900 Tektronix, Inc. .................. 22,707 93 Utah Medical Products, Inc. ...... 2,270 1,800 Varian Medical Systems, Inc. *.... 71,118 3,100 Zimmer Holdings, Inc. *........... 213,559 ----------- 636,196 ----------- Insurance - 1.5% 1,100 Jefferson-Pilot Corp. ............ 56,287 3,100 Marsh & McLennan Cos., Inc. ...... 94,209 600 Molina Healthcare, Inc. *......... 14,994 2,100 Progressive Corp. ................ 220,017 1,300 Willis Group Holdings Ltd. ....... 48,815 ----------- 434,322 ----------- IT Hardware - 4.4% 6,200 Altera Corp. *.................... 118,482 8,800 Applied Materials, Inc. .......... 149,248 700 Centillium Communications, Inc. *............................... 2,639 600 Comverse Technology, Inc. *....... 15,762 1,200 Cree, Inc. *...................... 30,024 1,600 Crown Castle International Corp. *............................... 39,408 700 Ditech Communications Corp. *..... 4,718 200 Foundry Networks, Inc. *.......... 2,540 300 hi/fn, Inc. *..................... 1,665 130 Integrated Device Technology, Inc. *............................... 1,396 900 Intervoice, Inc. *................ 8,109 400 Juniper Networks, Inc. *.......... 9,516 2,600 Kla-Tencor Corp. ................. 126,776 2,000 Lattice Semiconductor Corp. *..... 8,560 4,300 Linear Technology Corp. .......... 161,637 4,300 Maxim Integrated Products, Inc. ........................... 183,395 3,224 Microchip Technology, Inc. ....... 97,107 1,700 Molex, Inc. ...................... 45,356 1,900 Novellus Systems, Inc. ........... 47,652 1,000 Pixelworks, Inc. *................ 6,590 700 Plantronics, Inc. ................ 21,567 2,200 PMC - Sierra, Inc. *.............. 19,382 2,200 Qualcomm, Inc. ................... 98,450 2,000 Rambus, Inc. *.................... 24,200 600 Synaptics, Inc. *................. 11,280
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued IT Hardware continued 800 Vicor Corp. ...................... $ 12,120 2,000 Xilinx, Inc. ..................... 55,700 ----------- 1,303,279 ----------- Land & Water Transportation - 0.9% 1,000 Carnival Corp. ................... 49,980 1,578 Expeditors International of Washington, Inc. ............... 89,599 2,000 United Parcel Service, Inc., Class B............................... 138,260 ----------- 277,839 ----------- Mainframe & Minicomputers - 0.1% 600 Omnicell, Inc. *.................. 5,838 800 Palm, Inc. *...................... 22,664 ----------- 28,502 ----------- Metal Products & Machinery - 0.5% 300 Environmental Tectonics Corp. *... 1,548 2,000 GrafTech International Ltd. *..... 10,860 400 Illinois Tool Works, Inc. ........ 32,932 400 Littelfuse, Inc. *................ 11,252 200 Maxwell Technologies, Inc. *...... 2,824 800 Spectrum Brands, Inc. *........... 18,840 400 Ultralife Batteries, Inc. *....... 5,168 67 Varian Semiconductor Equipment Associates, Inc. *.............. 2,839 600 Veeco Instruments, Inc. *......... 9,624 1,200 Zebra Technologies Corp., Class A *............................... 46,908 ----------- 142,795 ----------- Miscellaneous Finance - 0.9% 800 Bear Stearns Cos., Inc. .......... 87,800 1,200 Goldman Sachs Group, Inc. ........ 145,896 1,900 Knight Capital Group, Inc., Class A *............................. 15,789 430 Morgan Stanley.................... 23,194 ----------- 272,679 ----------- Oil & Coal Resources - 0.0% 700 Harvest Natural Resources Inc. *............................... 7,511 ----------- Oil Drilling & Services - 0.2% 1,800 Smith International, Inc. ........ 59,958 ----------- Photooptical, Micros & Office Machinery - 0.8% 400 Interlink Electronics, Inc. *..... 2,152 1,200 Lexmark International, Inc. *..... 73,260 5,700 Network Appliance, Inc. *......... 135,318 400 RADWARE Ltd. *.................... 7,620 500 X-Rite, Inc. ..................... 6,200 1,000 Xerox Corp. *..................... 13,650 ----------- 238,200 ----------- Publishing, Broadcasting & Cinema - 1.9% 1,100 Dow Jones & Co., Inc. ............ 42,009 1,200 EW Scripps Co., Class A........... 59,964 5,270 Interpublic Group of Cos., Inc. *............................... 61,343 3,300 New York Times Co., Class A....... 98,175 1,100 Omnicom Group, Inc. .............. 91,993 700 Pixar *........................... 31,157
104 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Global Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Publishing, Broadcasting & Cinema continued 1,500 Sinclair Broadcast Group, Inc., Class A......................... $ 13,305 1,400 Spanish Broadcasting System, Class A *............................. 10,052 2,400 Univision Communications, Inc., Class A *....................... 63,672 120 Washington Post Co., Class B...... 96,300 400 Young Broadcasting, Inc., Class A *............................... 1,396 ----------- 569,366 ----------- Real Estate Development - 0.1% 500 Florida East Coast Industries, Inc. ........................... 22,645 ----------- Real Estate Investment Trusts - 1.4% 600 Avalonbay Communities, Inc. ...... 51,420 2,400 Equity Residential................ 90,840 1,600 General Growth Properties, Inc. ........................... 71,888 1,800 Kimco Realty Corp. ............... 56,556 1,700 Plum Creek Timber Co., Inc. ...... 64,447 1,100 Simon Property Group, Inc. ....... 81,532 ----------- 416,683 ----------- Restaurants, Hotels & Theaters - 0.6% 1,200 ARAMARK Corp., Class B............ 32,052 800 Ruby Tuesday, Inc. ............... 17,408 1,900 Starbucks Corp. *................. 95,190 1,279 Westwood One, Inc. ............... 25,439 ----------- 170,089 ----------- Retail - 4.8% 1,600 99 Cents Only Stores *............ 14,800 1,000 Alberto-Culver Co. ............... 44,750 4,900 Amazon.Com, Inc. *................ 221,970 3,760 Bed Bath & Beyond, Inc. *......... 151,077 300 Cost Plus, Inc. *................. 5,445 3,300 Costco Wholesale Corp. ........... 142,197 2,970 eBay, Inc. *...................... 122,364 100 Family Dollar Stores, Inc. ....... 1,987 487 Fastenal Co. ..................... 29,751 900 PETCO Animal Supplies, Inc. *..... 19,044 1,700 Safeway, Inc. .................... 43,520 1,900 Target Corp. ..................... 98,667 1,300 Tiffany & Co. .................... 51,701 2,000 TJX Cos., Inc. ................... 40,960 500 Tweeter Home Entertainment Group, Inc. *.......................... 1,645 8,600 Wal-Mart Stores, Inc. ............ 376,852 300 Whitehall Jewellers, Inc. *....... 507 500 Whole Foods Market, Inc. ......... 67,225 ----------- 1,434,462 ----------- Soaps & Cosmetics - 0.6% 1,700 Ecolab, Inc. ..................... 54,281 1,900 Procter & Gamble Co. ............. 112,974 ----------- 167,255 -----------
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, UNITED STATES continued Software - 3.2% 500 Accelrys, Inc. *.................. $ 3,380 800 ActivCard Corp. *................. 3,464 500 Altiris, Inc. *................... 7,645 800 Autobytel, Inc. *................. 4,008 2,800 Automatic Data Processing, Inc. ........................... 120,512 400 CoStar Group, Inc. *.............. 18,688 300 DocuCorp International, Inc. *.... 2,055 3,500 Electronic Arts, Inc. *........... 199,115 700 Electronic Data Systems Corp. .... 15,708 2,300 First Data Corp. ................. 92,000 300 Innotrac Corp. *.................. 2,547 1,270 Intuit, Inc. *.................... 56,909 1,100 Keane, Inc. *..................... 12,573 600 Kronos, Inc. *.................... 26,784 600 Manhattan Associates, Inc. *...... 13,920 8,800 Microsoft Corp. .................. 226,424 900 National Instruments Corp. ....... 22,176 5,300 Novell, Inc. *.................... 39,485 1,100 RSA Security, Inc. *.............. 13,981 700 Seachange International, Inc. *... 4,452 300 Symantec Corp. *.................. 6,798 1,000 Take-Two Interactive Software, Inc. *.......................... 22,090 5,800 Unisys Corp. *.................... 38,512 ----------- 953,226 ----------- Textiles & Apparel - 0.6% 2,700 Cintas Corp. ..................... 110,835 500 Columbia Sportswear Co. *......... 23,200 600 Mohawk Industries, Inc. *......... 48,150 ----------- 182,185 ----------- Wholesale - 1.0% 300 AmerisourceBergen Corp. .......... 23,190 1,300 Copart, Inc. *.................... 31,031 2,300 Patterson Cos., Inc. *............ 92,069 4,470 Sysco Corp. ...................... 140,224 ----------- 286,514 ----------- 13,471,464 ----------- TOTAL COMMON STOCK (PROCEEDS $25,831,833).................... 26,594,200 ----------- RIGHTS - 0.0% NORWAY - 0.0% Forest Products & Paper - 0.0% 1,285 Norske Skogindustrier ASA......... 2,865 ----------- TOTAL RIGHTS (PROCEEDS $0)........ 2,865 ----------- TOTAL SECURITIES SOLD SHORT (PROCEEDS $25,831,833).......... $26,597,065 ===========
--------------- * Non-income producing security. Laudus Trust Semi-Annual Report 105 See the accompanying notes to the financial statements. Financial Statements Statement of Portfolio Investments LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND (A) as of 9/30/05 (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK - 92.7% AGRICULTURE, FOOD & BEVERAGE - 1.7% 2,938 Andersons, Inc. .............. $ 86,025 440 Cagle's, Inc., Class A *...... 4,572 270 Chiquita Brands International, Inc. ....................... 7,547 700 Diedrich Coffee, Inc. *....... 5,601 26,775 Flowers Foods, Inc. .......... 730,421 20,525 Gold Kist, Inc. *............. 401,264 600 Hain Celestial Group, Inc. *........................... 11,640 1,800 J & J Snack Foods Corp. ...... 104,040 11,391 Lance, Inc. .................. 198,887 6,800 National Beverage Corp. *..... 52,768 5,800 Penford Corp. ................ 77,546 31,210 PepsiAmericas, Inc. .......... 709,402 8,700 Pilgrim's Pride Corp. ........ 316,680 238 Ralcorp Holdings, Inc. ....... 9,977 300 Seaboard Corp. ............... 411,900 3,200 Seneca Foods Corp., Class B *........................... 59,200 3,440 Tasty Baking Co. ............. 29,859 7,650 Zapata Corp. *................ 54,698 ------------ 3,272,027 ------------ AIRLINES - 0.7% 930 Air Methods Corp. *........... 10,528 4,880 AirNet Systems, Inc. *........ 23,180 10,800 Alaska Air Group, Inc. *...... 313,848 12,120 Macquarie Infrastructure Company Trust............... 341,784 6,368 MAIR Holdings, Inc. *......... 37,125 170 Mesa Air Group, Inc. *........ 1,403 4,940 Republic Airways Holdings, Inc. *...................... 70,691 22,200 SkyWest, Inc. ................ 595,404 2,030 TIMCO Aviation Services, Inc. *........................... 315 ------------ 1,394,278 ------------ AUTOS - 1.6% 4,900 Aftermarket Technology Corp. *........................... 90,111 8,300 Autoliv, Inc. ................ 361,050 10,398 BorgWarner, Inc. ............. 587,071 220 Commercial Vehicle Group, Inc. *........................... 4,607 22,950 Oshkosh Truck Corp. .......... 990,523 2,072 R&B, Inc. *................... 21,238 2,440 Sequa Corp., Class A *........ 143,960 4,204 Spartan Motors, Inc. ......... 45,697 2,300 Supreme Industries, Inc., Class A..................... 21,597 3,210 Sypris Solutions, Inc. ....... 34,475 23,865 TRW Automotive Holdings Corp. *........................... 700,199 ------------ 3,000,528 ------------ BANKS & CREDIT INSTITUTIONS - 3.4% 60 1st Independence Financial Group, Inc. ................ 1,170 2,447 ABC Bancorp................... 46,958 6,871 Accredited Home Lenders Holding Co. *............... 241,584
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 18,352 Advanta Corp., Class A........ $ 478,253 200 Ameriana Bancorp.............. 2,800 16,700 Bank of Hawaii Corp. ......... 821,973 5,700 Berkshire Bancorp, Inc. ...... 102,371 6,110 Beverly Hills Bancorp, Inc. ....................... 62,689 455 BOE Financial Services of Virginia, Inc. ............. 13,880 200 Britton & Koontz Capital Corp. ...................... 4,082 120 Brunswick Bancorp *........... 1,457 1,800 Camden National Corp. ........ 67,806 100 Capital Crossing Bank *....... 3,474 2,000 Capitol Bancorp Ltd. ......... 64,800 200 Carver Bancorp, Inc. ......... 3,318 450 Central Bancorp, Inc. ........ 12,616 2,400 Central Pacific Financial Corp. ...................... 84,432 200 Centrue Financial Corp. *..... 5,233 905 CFS Bancorp, Inc. ............ 12,127 200 Citizens First Bancorp, Inc. ....................... 4,268 10 Codorus Valley Bancorp, Inc. ....................... 182 3,800 Collegiate Funding Services *........................... 56,278 10 Community Shores Bank Corp. *........................... 157 808 Community West Bancshares..... 10,019 8,370 CompuCredit Corp. *........... 371,795 900 Consumer Portfolio Services, Inc. *...................... 4,500 100 Cowlitz Bancorp *............. 1,339 3,400 Dollar Financial Corp. *...... 40,766 3,510 Federal Agricultural Mortgage Corp., Class C.............. 85,433 510 Fidelity Southern Corp. ...... 8,874 200 First Bancshares, Inc. ....... 3,436 500 First Citizens BancShares, Inc., Class A............... 85,325 1,268 First Defiance Financial Corp. ...................... 34,781 40 First Federal Bancshares of Arkansas, Inc. ............. 944 600 First Federal Bancshares, Inc. ....................... 12,384 100 First Federal Bankshares, Inc. ....................... 1,945 20 First Financial Corp. ........ 540 800 First Keystone Financial, Inc. ....................... 17,600 21 First M&F Corp. .............. 740 310 First Merchants Corp. ........ 8,007 13,280 First Niagara Financial Group, Inc. ....................... 191,763 99 First Niles Financial, Inc. ....................... 1,411 3,045 First Place Financial Corp. ...................... 67,508 10 First West Virginia Bancorp, Inc. ....................... 183 120 FirstBank NW Corp. ........... 3,330 60 FirstFed Bancorp, Inc. ....... 654 9,300 FirstFed Financial Corp. *.... 500,432 10 FMS Financial Corp. .......... 175 330 FNB Corp. .................... 6,224 10 Fremont General Corp. ........ 218 10 Guaranty Federal Bancshares, Inc. ....................... 272 120 Heartland Financial USA, Inc. ....................... 2,332 700 HF Financial Corp. ........... 13,216 60 Hopfed Bancorp, Inc. ......... 947
106 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 750 Horizon Bancorp............... $ 19,931 2,730 Intervest Bancshares Corp. *........................... 59,924 2,187 ITLA Capital Corp. *.......... 114,796 8 Lincoln Bancorp............... 127 1,365 LSB Financial Corp. .......... 38,657 100 Mainsource Financial Group, Inc. ....................... 1,773 1,100 Meta Financial Group, Inc. ... 21,725 600 MFB Corp. .................... 15,150 4,230 NBC Capital Corp. ............ 106,088 100 NewMil Bancorp, Inc. ......... 2,882 3,000 North Central Bancshares, Inc. ....................... 113,100 3,200 North Valley Bancorp.......... 54,720 1,000 Northrim BanCorp, Inc. ....... 25,040 400 Northway Financial, Inc. ..... 13,646 1,100 OceanFirst Financial Corp. ... 26,554 100 Pamrapo Bancorp, Inc. ........ 2,113 790 PennFed Financial Services, Inc. ....................... 14,441 100 Pinnacle Bancshares, Inc. .... 1,363 2,399 Provident Financial Holdings, Inc. ....................... 67,292 3,800 PSB Bancorp, Inc. *........... 53,200 249 Renasant Corp. ............... 7,881 393 River Valley Bancorp.......... 8,251 1,824 Simmons First National Corp., Class A..................... 52,020 51 SVB Financial Group *......... 2,481 40,180 TD Banknorth, Inc. ........... 1,211,024 300 Tower Financial Corp. *....... 4,800 4,310 UnionBanCal Corp. ............ 300,493 560 United Bancorp, Inc. ......... 6,972 10 United Bancshares, Inc. ...... 161 3,971 United Community Financial Corp. ...................... 44,555 400 United Financial Corp. ....... 10,000 5 United Security Bancshares, Inc. ....................... 137 2,581 Unity Bancorp, Inc. .......... 33,605 4,611 Wainwright Bank & Trust Co. ........................ 48,001 1,460 Washington Savings Bank, F.S.B....................... 13,301 960 Westcorp...................... 56,544 794 WFS Financial, Inc. *......... 53,349 460 World Acceptance Corp. *...... 11,689 2,400 WSFS Financial Corp. ......... 141,336 ------------ 6,328,123 ------------ BASIC MINERALS & METALS - 3.8% 2,870 A. M. Castle & Co. *.......... 50,225 6,370 Aleris International, Inc. *........................... 174,857 46,860 Allegheny Technologies, Inc. ....................... 1,451,723 15,730 Commercial Metals Co. ........ 530,730 8,490 Freeport-McMoRan Copper & Gold, Inc., Class B......... 412,529 100 L.B. Foster Co., Class A *.... 1,325 16,400 Lone Star Technologies, Inc. *........................... 911,676 12,190 NS Group, Inc. *.............. 478,458 6,115 Phelps Dodge Corp. ........... 794,522 17,013 Precision Castparts Corp. .... 903,390 3,130 Quanex Corp. ................. 207,269
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, BASIC MINERALS & METALS continued 4,925 Roanoke Electric Steel Corp. ...................... $ 98,648 13,000 Ryerson Tull, Inc. ........... 276,900 14,350 Southern Peru Copper Corp. ... 803,026 2,600 Synalloy Corp. *.............. 29,091 1,470 Walter Industries, Inc. ...... 71,912 ------------ 7,196,281 ------------ BEER, LIQUOR & TOBACCO - 0.3% 15 MGP Ingredients, Inc. ........ 168 12,600 UST, Inc. .................... 527,436 ------------ 527,604 ------------ BIOTECHNOLOGY - 0.9% 5,800 Harvard Bioscience, Inc. *.... 17,690 21,395 Invitrogen Corp. *............ 1,609,546 ------------ 1,627,236 ------------ CELLULAR & WIRELESS - 0.4% 13,980 Telephone & Data Systems, Inc. ....................... 545,219 2,890 Telephone & Data Systems, Inc., Special Shares........ 108,520 2,503 USA Mobility, Inc. *.......... 67,531 ------------ 721,270 ------------ CHEMICALS & RUBBER - 2.3% 3,080 A. Schulman, Inc. ............ 55,286 500 American Pacific Corp. *...... 2,958 1,520 Arch Chemicals, Inc. ......... 35,340 2,900 Bairnco Corp. ................ 31,001 8,099 Chemtura Corp. ............... 100,590 18,630 Eastman Chemical Co. ......... 875,051 61,420 Hercules, Inc. *.............. 750,552 27,300 Hexcel Corp. *................ 499,317 520 LESCO, Inc. *................. 8,242 48,120 PolyOne Corp. *............... 291,607 10,539 RPM International, Inc. ...... 193,918 21,300 Sherwin-Williams Co. ......... 938,691 1,000 Stepan Co. ................... 25,060 51,240 Terra Industries, Inc. *...... 340,746 6,910 Westlake Chemical Corp. ...... 187,123 ------------ 4,335,482 ------------ COMMERCIAL AIRCRAFT & COMPONENTS - 0.5% 31,390 BE Aerospace, Inc. *.......... 520,132 3,200 Ducommun, Inc. *.............. 70,400 3,000 Ladish Co., Inc. *............ 52,320 8,980 Triumph Group, Inc. *......... 333,787 ------------ 976,639 ------------ COMMUNICATIONS UTILITIES - 1.0% 2,900 Atlantic Tele-Network, Inc. ....................... 96,280 10 CNET Networks, Inc. *......... 136 7,420 CT Communications, Inc. ...... 91,785 8,279 D&E Communications, Inc. ..... 75,091 42,150 EarthLink, Inc. *............. 451,005 2,200 Golden Telecom, Inc. ......... 69,454 2,100 Hector Communications Corp. ...................... 61,089 400 Lynch Interactive Corp. *..... 10,256
Laudus Trust Semi-Annual Report 107 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, COMMUNICATIONS UTILITIES continued 26,610 Monster Worldwide, Inc. *..... $ 817,193 21,400 Playboy Enterprises, Inc., Class A *................... 265,360 1,500 Valor Communications Group, Inc. ....................... 20,445 ------------ 1,958,094 ------------ CONSTRUCTION & HOMEBUILDING - 4.6% 21,060 Beazer Homes USA, Inc. ....... 1,235,590 1,120 Brookfield Homes Corp. ....... 62,194 4,500 Comfort Systems USA, Inc. *... 39,645 1,200 D.R. Horton, Inc. ............ 43,464 5,660 Hovnanian Enterprises, Inc., Class A *................... 289,792 16,674 Insituform Technologies, Inc., Class A *................... 288,293 3,450 KB HOME....................... 252,540 16,646 M.D.C. Holdings, Inc. ........ 1,313,203 50 M/I Homes, Inc. .............. 2,713 680 Meadow Valley Corp. *......... 6,474 12,520 Meritage Corp. *.............. 959,783 1,320 Orleans Homebuilders, Inc. ... 32,525 39,200 Pulte Homes, Inc. ............ 1,682,464 15,400 Ryland Group, Inc. ........... 1,053,668 100 Sterling Construction Co., Inc. *...................... 2,590 4,375 Technical Olympic USA, Inc. ....................... 114,450 8,870 Toll Brothers, Inc. *......... 396,223 19,390 WCI Communities, Inc. *....... 550,094 1,800 William Lyon Homes, Inc. *.... 279,360 ------------ 8,605,065 ------------ CONSTRUCTION MATERIALS - 1.4% 1,400 Ameron International Corp. ... 64,960 800 Continental Materials Corp. *........................... 24,540 10,000 Eagle Materials, Inc. ........ 1,213,699 24,310 Jarden Corp. *................ 998,412 570 Oil-Dri Corp. of America...... 9,958 5,202 Owens-Illinois, Inc. *........ 107,265 7,070 U.S. Concrete, Inc. *......... 54,510 250 United States Lime & Minerals, Inc. *...................... 8,538 1,500 Vulcan Materials Co. ......... 111,315 ------------ 2,593,197 ------------ CONSUMER DURABLES - 0.4% 5,400 Coachmen Industries, Inc. .... 62,046 16,980 Thor Industries, Inc. ........ 577,320 2,468 Universal Electronics, Inc. *........................... 42,672 ------------ 682,038 ------------ DRUGS & PHARMACEUTICALS - 1.9% 18,183 Celgene Corp. *............... 987,700 8,300 Dade Behring Holdings, Inc. ....................... 304,278 100 Diagnostic Products Corp. .... 5,273 3,300 E-Z-EM, Inc. *................ 46,695 27,999 Endo Pharmaceuticals Holdings, Inc. *...................... 746,733
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, DRUGS & PHARMACEUTICALS continued 6,356 First Horizon Pharmaceutical Corp. *..................... $ 126,294 2,090 Immucor, Inc. *............... 57,350 660 Inverness Medical Innovations, Inc. *...................... 17,510 110 Natural Alternative International, Inc. *....... 763 6,600 Nature's Sunshine Products, Inc. ....................... 153,384 11,400 Theragenics Corp. *........... 33,630 11,187 United Therapeutics Corp. *... 780,853 100 United-Guardian, Inc. ........ 820 5,731 USANA Health Sciences, Inc. *........................... 273,369 7,300 Weider Nutrition International, Inc. *....... 38,617 ------------ 3,573,269 ------------ ELECTRIC UTILITIES - 1.0% 17,109 Alliant Energy Corp. ......... 498,385 700 CH Energy Group, Inc. ........ 33,236 1,200 Cleco Corp. .................. 28,296 10,410 Duquesne Light Holdings, Inc. ....................... 179,156 1,800 Florida Public Utilities Co. ........................ 28,584 1,600 Green Mountain Power Corp. ... 52,688 1,090 Maine & Maritimes Corp. ...... 21,473 1,000 Unitil Corp. ................. 28,100 27,600 Westar Energy, Inc. .......... 665,988 21,180 Xcel Energy, Inc. ............ 415,340 ------------ 1,951,246 ------------ FINANCIAL INVESTMENTS - 0.9% 14,630 Aaron Rents, Inc. ............ 309,425 12,170 American Capital Strategies Ltd. ....................... 446,151 3,243 California First National Bancorp..................... 42,159 130 Capital Southwest Corp. ...... 11,072 9,044 Electro Rent Corp. *.......... 113,774 4,289 ePlus, Inc. *................. 55,971 160 Jackson Hewitt Tax Service, Inc. ....................... 3,826 12,900 KMG America Corp. *........... 103,200 19,737 MCG Capital Corp. ............ 332,963 5,789 Universal Compression Holdings, Inc. *............ 230,229 3,920 Willis Lease Finance Corp. *........................... 39,161 ------------ 1,687,931 ------------ FOREST PRODUCTS & PAPER - 0.3% 2,970 Chesapeake Corp. ............. 54,618 3,080 CSS Industries, Inc. ......... 100,162 2,900 DSG International Ltd. *...... 17,748 10,120 Lydall, Inc. *................ 90,372 300 Mod-Pac Corp. *............... 3,261 220 Nashua Corp. *................ 1,364 70 Packaging Dynamics Corp. ..... 882 500 Rock-Tenn Co., Class A........ 7,550 6,588 Universal Forest Products, Inc. ....................... 377,624 ------------ 653,581 ------------
108 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- FURNITURE & HOUSEHOLD ITEMS - 2.0% 1,000 A.T. Cross Co., Class A *..... $ 4,790 1,050 American Biltrite, Inc. *..... 12,968 1,190 American Locker Group, Inc. *........................... 5,522 120 Atlantis Plastics, Inc., Class A........................... 1,199 2,000 AZZ, Inc. *................... 41,100 4,000 Bassett Furniture Industries, Inc. ....................... 74,480 7,560 Central Garden & Pet Co. *.... 342,090 3,500 Channell Commercial Corp. *... 33,077 1,600 Chase Corp. .................. 23,344 150 Chromcraft Revington, Inc. *........................... 2,037 4,100 Communications Systems, Inc. ....................... 46,125 920 Ethan Allen Interiors, Inc. ....................... 28,842 2,306 Genlyte Group, Inc. *......... 110,872 5,270 Griffon Corp. *............... 129,642 9,540 HNI Corp. .................... 574,499 10,500 JAKKS Pacific, Inc. *......... 170,415 134 K2, Inc. *.................... 1,528 14,827 Kimball International, Inc., Class B..................... 179,258 10 Knape & Vogt Manufacturing Co. ........................ 131 5,950 La-Z-Boy, Inc. ............... 78,481 6,410 Lamson & Sessions Co. *....... 117,431 1,790 Mikohn Gaming *............... 23,789 560 Mity Enterprises, Inc. *...... 9,565 14,500 Movado Group, Inc. ........... 271,440 9,480 Myers Industries, Inc. ....... 110,347 300 National Presto Industries, Inc. ....................... 12,843 92 Raven Industries, Inc. ....... 2,691 1,300 RC2 Corp. *................... 43,888 5,059 Stanley Furniture Co., Inc. ....................... 132,495 6,800 Steelcase, Inc., Class A...... 98,328 27,120 Thomas & Betts Corp. *........ 933,198 5,859 Tredegar Corp. ............... 76,226 ------------ 3,692,641 ------------ GAS & OTHER PUBLIC UTILITIES - 0.6% 300 BIW Ltd. ..................... 5,910 2,340 California Water Service Group....................... 96,408 1,870 Chesapeake Utilities Corp. ... 65,731 7,930 Clean Harbors, Inc. *......... 269,223 3,270 KeySpan Corp. ................ 120,271 370 Laclede Group, Inc. .......... 12,021 74 NiSource, Inc. ............... 1,795 3,900 SJW Corp. .................... 188,292 700 South Jersey Industries, Inc. ....................... 20,398 2,796 Southwest Water Co. .......... 40,542 12,230 Vectren Corp. ................ 346,720 330 Waste Industries USA, Inc. ... 4,389 ------------ 1,171,700 ------------ GOVERNMENT AIRCRAFT & DEFENSE - 0.2% 1,300 Aerosonic Corp. *............. 7,800 7,920 Herley Industries *........... 147,550 376 Lowrance Electronics, Inc. ... 9,547 820 Todd Shipyards Corp. ......... 15,662 6,090 United Industrial Corp. ...... 217,717 ------------ 398,276 ------------
SHARES VALUE ---------------------------------------------------------- HEALTH CARE & HOSPITAL - 2.7% 18,560 Allied Healthcare International, Inc. *....... $ 104,864 660 Almost Family, Inc. *......... 10,692 3,200 American Shared Hospital Services.................... 19,168 1,216 AmSurg Corp. *................ 33,270 28,300 Health Net, Inc. *............ 1,339,156 19,969 HealthTronics, Inc. *......... 198,891 23,900 Humana, Inc. *................ 1,144,332 14,500 Kindred Healthcare, Inc. *.... 432,100 4,230 MedCath Corp. *............... 100,463 2,860 MEDTOX Scientific, Inc. *..... 20,735 130 National Dentex Corp. *....... 2,678 100 National Healthcare Corp. .... 3,500 5,244 National Home Health Care Corp. ...................... 59,362 600 Pediatric Services of America, Inc. *...................... 8,394 12,700 Pediatrix Medical Group, Inc. *........................... 975,614 6,070 RehabCare Group, Inc. *....... 124,556 2,269 Res-Care, Inc. *.............. 34,920 8,670 Triad Hospitals, Inc. *....... 392,491 ------------ 5,005,186 ------------ INFORMATION & SERVICES - 4.4% 2,100 Ablest, Inc. *................ 19,383 15,300 ABM Industries, Inc. ......... 318,393 190 Administaff, Inc. ............ 7,551 1,892 Albany Molecular Research, Inc. *...................... 23,045 15,300 American Retirement Corp. *... 288,099 830 Angelica Corp. ............... 14,816 900 Capital Title Group, Inc. .... 6,660 7,970 Carriage Services, Inc. *..... 50,530 660 Cass Information Systems, Inc. ....................... 20,750 770 CBIZ, Inc. *.................. 3,927 6,840 CDI Corp. .................... 202,054 6,870 Central Parking Corp. ........ 102,707 35,150 CheckFree Corp. *............. 1,329,372 120 Cornell Cos., Inc. *.......... 1,765 7,700 Corrections Corp. of America *........................... 305,690 4,550 CPI Corp. .................... 80,035 443 Discovery Partners International *............. 1,426 1,950 Dun & Bradstreet Corp. *...... 128,447 2,530 Ecology & Environment, Inc. ....................... 20,746 7,000 Exponent, Inc. *.............. 219,730 100 Forrester Research, Inc. *.... 2,082 860 Franklin Covey Co. *.......... 6,140 17,200 H&R Block, Inc. .............. 412,456 600 Hallwood Group, Inc. ......... 38,400 570 Harte-Hanks, Inc. ............ 15,065 2,205 Healthcare Services Group, Inc. ....................... 42,446 6,000 Horizon Health Corp. *........ 163,020 9,860 Hudson Highland Group, Inc. *........................... 246,204 1,295 ICT Group, Inc. *............. 15,203 2,649 Kelly Services, Inc., Class A........................... 81,218 5,100 Kendle International, Inc. *........................... 143,514 2,100 Labor Ready, Inc. *........... 53,865 5,500 Layne Christensen Co. *....... 129,525
Laudus Trust Semi-Annual Report 109 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, INFORMATION & SERVICES continued 480 Manpower, Inc. ............... $ 21,307 2,420 Michael Baker Corp. *......... 63,041 8,550 Monro Muffler Brake, Inc. .... 224,609 49,790 MPS Group, Inc. *............. 587,522 1,350 National Technical Systems, Inc. *...................... 6,710 10,044 NCO Group, Inc. *............. 207,509 40 Nobel Learning Communities, Inc. *...................... 374 5,100 Opinion Research Corp. *...... 33,762 7,640 PAREXEL International Corp. *........................... 153,488 8,640 Pharmaceutical Product Development, Inc. *......... 496,886 998 RCM Technologies, Inc. *...... 5,998 300 Refac *....................... 2,393 8,210 Regis Corp. .................. 310,502 36,840 Shaw Group, Inc. *............ 908,474 6,884 SOURCECORP, Inc. *............ 147,593 250 Steiner Leisure Ltd. *........ 8,493 10,060 URS Corp. *................... 406,323 1,915 Vertrue, Inc. *............... 69,610 6,400 Volt Information Sciences, Inc. *...................... 130,048 78 West Corp. *.................. 2,916 ------------ 8,281,822 ------------ INSTRUMENTS - 5.6% 787 Allied Healthcare Products, Inc. *...................... 4,195 29,466 American Medical Systems Holdings, Inc. *............ 593,740 2,900 American Science & Engineering, Inc. *......... 190,211 7,745 Arrow International, Inc. .... 218,409 13,741 ArthroCare Corp. *............ 552,663 110 Astro-Med, Inc. .............. 1,356 3,200 Badger Meter, Inc. ........... 125,888 19,100 Bausch & Lomb, Inc. .......... 1,540,987 150 Bio-Logic Systems Corp. *..... 905 1,600 Bio-Rad Laboratories, Inc., Class A *................... 87,984 20,240 Checkpoint Systems, Inc. *.... 480,093 15,898 Coherent, Inc. *.............. 465,493 3,500 Compex Technologies, Inc. *... 15,120 9,219 CONMED Corp. *................ 257,026 6,500 Datascope Corp. .............. 201,630 10,630 DJ Orthopedics, Inc. *........ 307,632 29,500 Edwards Lifesciences Corp. *........................... 1,310,094 1,300 Embrex, Inc. *................ 14,729 110 Escalon Medical Corp. *....... 677 3,170 Esterline Technologies Corp. *........................... 120,111 2,100 Frequency Electronics, Inc. ....................... 22,890 10,900 Haemonetics Corp. *........... 518,077 2,910 Integra LifeSciences Holdings *........................... 111,337 4,820 Invacare Corp. ............... 200,849 500 Iridex Corp. *................ 4,395 2,300 K-Tron International, Inc. *........................... 77,809 1,840 Kewaunee Scientific Corp. .... 16,588 1,200 LeCroy Corp. *................ 17,820
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, INSTRUMENTS continued 100 Mesa Laboratories, Inc. ...... $ 1,275 100 Misonix, Inc. *............... 719 4,990 Molecular Devices Corp. *..... 104,241 800 MTS Systems Corp. ............ 30,216 10 New Brunswick Scientific Co., Inc. *...................... 61 2,536 Orthofix International NV *... 110,570 5,800 Perceptron, Inc. *............ 37,158 1,100 Schmitt Industries, Inc. *.... 7,567 1,800 Span-America Medical Systems, Inc. ....................... 18,351 28,000 Steris Corp. ................. 666,120 16,080 Teleflex, Inc. ............... 1,133,640 11,463 Thoratec Corp. *.............. 203,583 8,500 Tollgrade Communications, Inc. *........................... 71,910 18,290 Viasys Healthcare, Inc. *..... 457,067 480 Vicon Industries, Inc. *...... 1,464 5,360 Zygo Corp. *.................. 82,115 ------------ 10,384,765 ------------ INSURANCE - 5.3% 1,175 Alleghany Corp. *............. 359,550 3,081 American National Insurance Co. ........................ 367,009 2,000 American Physicians Capital, Inc. *...................... 98,260 4,900 American Safety Insurance Holdings Ltd. *............. 84,476 2,700 AmerUs Group Co. ............. 154,899 1,080 Ceres Group, Inc. *........... 6,080 29,249 CNA Financial Corp. *......... 873,668 11,600 Crawford & Co., Class B....... 90,828 70 Endurance Specialty Holdings Ltd. ....................... 2,388 17,600 Everest Re Group Ltd. ........ 1,723,039 9,000 FPIC Insurance Group, Inc. *........................... 323,910 33,000 HCC Insurance Holdings, Inc. ....................... 941,489 18,242 Horace Mann Educators Corp. ...................... 360,827 8,081 IPC Holdings Ltd. ............ 263,845 210 Kansas City Life Insurance Co. ........................ 10,746 12,767 Max Re Capital Ltd. .......... 316,494 112 Medical Resources, Inc. (b)... -- 13,210 National Financial Partners Corp. ...................... 596,299 750 National Western Life Insurance Co., Class A *.... 158,438 1,010 NYMAGIC, Inc. ................ 24,573 2,970 Odyssey Re Holdings Corp. .... 75,854 10,680 Old Republic International Corp. ...................... 284,836 5,831 Philadelphia Consolidated Holding Corp. *............. 495,052 855 Presidential Life Corp. ...... 15,390 16,660 PXRE Group Ltd. .............. 224,244 22,300 Radian Group, Inc. ........... 1,184,129 100 RTW, Inc. *................... 1,140 21,070 Scottish Re Group Ltd. ....... 502,309 400 Selective Insurance Group, Inc. ....................... 19,560 100 Stewart Information Services Corp. ...................... 5,120
110 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, INSURANCE continued 2,900 Unico American Corp. *........ $ 26,593 10,255 United America Indemnity Ltd., Class A *................... 188,179 7,000 UnumProvident Corp. .......... 143,500 ------------ 9,922,724 ------------ INTEGRATED OIL COS. - 0.0% 263 Marathon Oil Corp. ........... 18,129 ------------ IT HARDWARE - 5.2% 28,650 Advanced Micro Devices, Inc. *........................... 721,980 2,460 Advanced Power Technology, Inc. *...................... 21,279 5,500 American Technical Ceramics Corp. *..................... 59,675 3,130 Amphenol Corp., Class A....... 126,264 9,220 Applied Innovation, Inc. *.... 35,497 16,390 Arris Group, Inc. *........... 194,385 10,213 ATMI, Inc. *.................. 316,603 1,510 Avocent Corp. *............... 47,776 900 BTU International, Inc. *..... 8,181 39,999 Cirrus Logic, Inc. *.......... 303,592 7,700 Cobra Electronics Corp. *..... 64,064 48 Cohu, Inc. ................... 1,135 20,300 CTS Corp. .................... 245,630 8,450 Diodes, Inc. *................ 306,397 3,790 DSP Group, Inc. *............. 97,251 3,341 EMS Technologies, Inc. *...... 54,692 18,990 Emulex Corp. *................ 383,788 1,426 Entegris, Inc. *.............. 16,117 600 Espey Manufacturing & Electronics Corp. .......... 20,985 5,400 Globecomm Systems, Inc. *..... 42,390 34,200 Harris Corp. ................. 1,429,560 6,840 Imation Corp. ................ 293,231 80 Innovex, Inc. *............... 340 67,858 Intersil Corp., Class A....... 1,477,947 5,449 IXYS Corp. *.................. 57,541 800 LSI Logic Corp. *............. 7,880 25,100 Marvell Technology Group Ltd. *........................... 1,157,361 11,700 MEMC Electronic Materials, Inc. *...................... 266,643 800 Merrimac Industries, Inc. *... 7,316 7,820 Microsemi Corp. *............. 199,723 150 MKS Instruments, Inc. *....... 2,585 1,070 Netlogic Microsystems, Inc. *........................... 23,101 41,075 ON Semiconductor Corp. *...... 212,358 3,900 Optical Cable Corp. *......... 21,723 4,105 Park Electrochemical Corp. ... 109,398 289 Peak International Ltd. *..... 876 18,294 Photronics, Inc. *............ 354,904 2,990 Semitool, Inc. *.............. 23,771 14,290 SonicWALL, Inc. *............. 90,742 456 Sparton Corp. ................ 4,560 7,900 Spectrum Control, Inc. *...... 58,539 200 Standard Microsystems Corp. *........................... 5,982 7,215 Stratos International, Inc. *........................... 42,136 300 Supertex, Inc. *.............. 8,997 29,307 Symmetricom, Inc. *........... 226,836
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, IT HARDWARE continued 5,520 Tekelec *..................... $ 115,644 180 Teledyne Technologies, Inc. *........................... 6,205 1,200 Trans-Lux Corp. .............. 7,260 9,257 Trident Microsystems, Inc. *........................... 294,465 50 White Electronic Designs Corp. *........................... 255 7,330 Woodhead Industries, Inc. .... 100,641 ------------ 9,676,201 ------------ LAND & WATER TRANSPORTATION - 1.7% 230 B & H Ocean Carriers Ltd. *... 4,807 6,631 Celadon Group, Inc. *......... 147,871 25,656 CNF, Inc. .................... 1,346,940 7,470 Frozen Food Express Industries, Inc. *.......... 78,360 8,900 Kirby Corp. *................. 439,927 6,075 Marten Transport Ltd. *....... 153,698 9,812 Overseas Shipholding Group, Inc. ....................... 572,334 15,555 Swift Transportation Co., Inc. *........................... 275,324 300 Transport Corp. of America, Inc. *...................... 2,250 3,100 USA Truck, Inc. *............. 78,430 6,700 Werner Enterprises, Inc. ..... 115,843 ------------ 3,215,784 ------------ MAINFRAME & MINICOMPUTERS - 0.0% 2,750 Neoware Systems, Inc. *....... 46,035 ------------ METAL PRODUCTS & MACHINERY - 4.9% 3,660 Allied Motion Technologies, Inc. *...................... 14,457 40 Ampco-Pittsburgh Corp. ....... 620 2,793 Astec Industries, Inc. *...... 79,293 2,300 Black & Decker Corp. ......... 188,807 9,190 Blount International, Inc. *........................... 162,112 2,830 Bonso Electronics International, Inc. ........ 14,037 53,987 Crown Holdings, Inc. *........ 860,553 12,370 Cummins, Inc. ................ 1,088,436 7,380 EnerSys *..................... 111,955 80 EnPro Industries, Inc. *...... 2,695 1,600 ESCO Technologies, Inc. *..... 80,112 300 Evans & Sutherland Computer Corp. *..................... 1,788 300 Gehl Co. *.................... 8,361 1,340 Gerber Scientific, Inc. *..... 10,506 1,790 Greenbrier Cos., Inc. ........ 59,500 740 Hardinge, Inc. ............... 10,869 1,600 International Aluminum Corp. ...................... 59,360 13,190 JLG Industries, Inc. ......... 482,622 25,840 Joy Global, Inc. ............. 1,303,885 2,100 Kennametal, Inc. ............. 102,984 500 L.S. Starrett Co., Class A.... 9,155 20,200 Lennox International, Inc. ... 553,682 4,900 Manitowoc Co., Inc. .......... 246,225 5,600 Material Sciences Corp. *..... 84,392 7,100 NCI Building Systems, Inc. *........................... 289,609 8,779 NN, Inc. ..................... 105,260
Laudus Trust Semi-Annual Report 111 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, METAL PRODUCTS & MACHINERY continued 2,125 Q.E.P. Co., Inc. *............ $ 24,331 13,920 Regal-Beloit Corp. ........... 451,565 450 Reinhold Industries, Inc., Class A..................... 8,775 4,500 Robbins & Myers, Inc. ........ 101,160 746 Standard Motor Products, Inc. ....................... 6,050 6,500 Standex International Corp. ...................... 171,145 209 Tecumseh Products Co., Class B........................... 4,303 3,200 Tennant Co. .................. 131,136 15,460 Terex Corp. *................. 764,188 41,000 Timken Co. ................... 1,214,830 6,361 Trinity Industries, Inc. ..... 257,557 270 Twin Disc, Inc. .............. 10,668 500 Water Pik Technologies, Inc. *........................... 10,150 2,370 York International Corp. ..... 132,886 ------------ 9,220,019 ------------ MISCELLANEOUS FINANCE - 2.1% 21,000 A.G. Edwards, Inc. ........... 920,010 18,900 Affiliated Managers Group, Inc. *...................... 1,368,739 10 BKF Capital Group, Inc. ...... 309 900 Chicago Mercantile Exchange... 303,570 3,540 Cohen & Steers, Inc. ......... 70,800 300 Nasdaq Stock Market, Inc. *... 7,605 26,090 Raymond James Financial, Inc. ....................... 838,011 6,166 Stifel Financial Corp. *...... 221,359 9,600 SWS Group, Inc. .............. 157,440 ------------ 3,887,843 ------------ OIL & COAL RESOURCES - 2.2% 2,940 Atlas America, Inc. *......... 143,619 2,410 Carrizo Oil & Gas, Inc. *..... 70,613 28,900 Chesapeake Energy Corp. ...... 1,105,425 2,807 Cimarex Energy Co. *.......... 127,241 4,300 Denbury Resources, Inc. *..... 216,892 5,900 Energy Partners Ltd. *........ 184,198 8,950 Massey Energy Co. ............ 457,077 6,959 Resource America, Inc., Class A........................... 123,383 29,185 Ultra Petroleum Corp. *....... 1,660,042 940 Whiting Petroleum Corp. *..... 41,210 ------------ 4,129,700 ------------ OIL DISTRIBUTION - 0.2% 100 Adams Resources & Energy, Inc. ....................... 2,190 4,400 Sunoco, Inc. ................. 344,080 4,900 TransMontaigne, Inc. *........ 39,151 ------------ 385,421 ------------ OIL DRILLING & SERVICES - 2.0% 1,670 Dawson Geophysical Co. *...... 50,518 35,610 Grant Prideco, Inc. *......... 1,447,546 554 Gulf Island Fabrication, Inc. ....................... 15,928 2,800 Lufkin Industries, Inc. ...... 121,940 600 NATCO Group, Inc., Class A *........................... 15,192 9,900 Oceaneering International, Inc. *...................... 528,759 200 Oil States International, Inc. *........................... 7,262 3,900 Patterson-UTI Energy, Inc. ... 140,712
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, OIL DRILLING & SERVICES continued 27,350 Pride International, Inc. *... $ 779,748 1,470 Superior Energy Services, Inc. *........................... 33,942 9,468 TETRA Technologies, Inc. *.... 295,591 9,800 W-H Energy Services, Inc. *... 317,716 ------------ 3,754,854 ------------ PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 1.1% 450 Dataram Corp. ................ 3,033 1,200 Global Payment Technologies, Inc. *...................... 4,320 1,450 Hypercom Corp. *.............. 9,454 168 Interphase Corp. *............ 764 11,095 M-Systems Flash Disk Pioneers Ltd. *...................... 331,962 1,030 PAR Technology Corp. *........ 23,690 4,000 Printronix, Inc. ............. 62,600 10,690 RadiSys Corp. *............... 207,386 10,168 SafeNet, Inc. *............... 369,200 27,500 UNOVA, Inc. *................. 961,951 300 VASCO Data Security International, Inc. *....... 2,721 210 Western Digital Corp. *....... 2,715 ------------ 1,979,796 ------------ PUBLISHING, BROADCASTING & CINEMA - 0.7% 11,590 American Greetings Corp., Class A..................... 317,565 1,820 Banta Corp. .................. 92,620 1,100 Cadmus Communications Corp. .. 23,100 3,750 Central European Media Enterprises Ltd., Class A *........................... 198,038 2,100 Outlook Group Corp. .......... 33,390 10,370 Reader's Digest Association, Inc. ....................... 165,609 12,354 Regent Communications, Inc. *........................... 64,982 4,127 Scholastic Corp. *............ 152,534 6,910 Tribune Co. .................. 234,180 100 Tufco Technologies, Inc. *.... 630 6,080 World Wrestling Entertainment, Inc. ....................... 79,040 ------------ 1,361,688 ------------ REAL ESTATE DEVELOPMENT - 1.2% 6,796 Alderwoods Group, Inc. *...... 111,318 1,200 AMREP Corp. .................. 32,100 2,555 Avatar Holdings, Inc. *....... 151,358 11,430 Bluegreen Corp. *............. 201,740 1,500 ILX Resorts, Inc. ............ 13,418 2,700 J.W. Mays, Inc. *............. 41,904 2,490 Patriot Transportation Holding, Inc. *............. 171,063 153,400 Service Corp. International... 1,271,685 41,808 Stewart Enterprises, Inc., Class A..................... 277,187 1,210 Tarragon Corp. *.............. 22,458 ------------ 2,294,231 ------------
112 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS - 4.9% 12,280 Ashford Hospitality Trust..... $ 132,133 1,000 Bedford Property Investors, Inc. ....................... 23,840 6,300 Boykin Lodging Co. *.......... 78,246 3,430 CarrAmerica Realty Corp. ..... 123,309 14,040 CBL & Associates Properties, Inc. ....................... 575,500 4,400 Correctional Properties Trust....................... 129,404 10,660 Eagle Hospitality Properties Trust, Inc. ................ 106,387 8,840 ECC Capital Corp. ............ 28,818 400 Entertainment Properties Trust....................... 17,852 2,300 Equity Inns, Inc. ............ 31,050 2,570 FelCor Lodging Trust, Inc. *........................... 38,936 800 First Union Real Estate Equity & Mortgage Investments *.... 3,600 8,000 Five Star Quality Care, Inc. *........................... 55,200 410 Gladstone Commercial Corp. ... 6,847 6,400 Government Properties Trust, Inc. ....................... 62,720 6,520 Highland Hospitality Corp. ... 66,895 90 Hospitality Properties Trust....................... 3,857 101,126 HRPT Properties Trust......... 1,254,973 390 Income Opportunity Realty Investors *................. 2,847 2,730 Innkeepers USA Trust.......... 42,179 12,213 Investors Real Estate Trust... 116,024 20,690 iStar Financial, Inc. ........ 836,497 8,140 LTC Properties, Inc. ......... 172,568 80 Maguire Properties, Inc. ..... 2,404 8,100 Mission West Properties, Inc. ....................... 81,324 2,550 Monmouth Capital Corp. ....... 14,459 7,480 Monmouth Real Estate Investment Corp., Class A... 61,261 3,080 National Health Investors, Inc. ....................... 85,039 4,000 National Health Realty, Inc. ....................... 77,640 48,970 New Plan Excel Realty Trust... 1,123,861 4,020 One Liberty Properties, Inc. ....................... 80,038 350 Presidential Realty Corp., Class B..................... 2,797 6,680 PS Business Parks, Inc. ...... 305,944 10 Roberts Realty Investors, Inc. *........................... 77 9,090 Sizeler Property Investors, Inc. ....................... 110,353 20,000 SL Green Realty Corp. ........ 1,363,599 17,970 Strategic Hotel Capital, Inc. ....................... 328,132 13,230 Sunstone Hotel Investors, Inc. ....................... 322,680 5,000 Supertel Hospitality, Inc. ... 23,750 46,650 Trizec Properties, Inc. ...... 1,075,749 1,602 Urstadt Biddle Properties, Class A..................... 24,286 4,980 Windrose Medical Properties Trust....................... 76,094 5,970 Winston Hotels, Inc. ......... 59,700 ------------ 9,128,869 ------------ RESTAURANTS, HOTELS & THEATERS - 2.4% 530 Benihana, Inc. *.............. 9,386 33,320 Brinker International, Inc. *........................... 1,251,498 148 CBRL Group, Inc. ............. 4,982 190 Champps Entertainment, Inc. *........................... 1,315
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, RESTAURANTS, HOTELS & THEATERS continued 310 Checkers Drive-In Restaurants, Inc. *...................... $ 4,737 16,200 Darden Restaurants, Inc. ..... 491,993 1,130 Dave & Buster's, Inc. *....... 15,086 47,840 Denny's Corp. *............... 198,536 1,500 Dover Motorsports, Inc. ...... 10,260 4,600 Famous Dave's of America, Inc. *........................... 54,832 5,798 Fox & Hound Restaurant Group *........................... 59,024 3,910 Frisch's Restaurants, Inc. ... 94,466 100 Gaylord Entertainment Co. *... 4,765 7,580 Interstate Hotels & Resorts, Inc. *...................... 35,247 790 J. Alexander's Corp. *........ 6,739 6,670 Jack in the Box, Inc. *....... 199,500 7,680 Lone Star Steakhouse & Saloon, Inc. ....................... 199,680 4,700 Luby's, Inc. *................ 61,382 8,240 Marcus Corp. ................. 165,130 800 Max & Erma's Restaurants, Inc. *........................... 10,600 15,571 Movie Gallery, Inc. .......... 161,783 150 Nathan's Famous, Inc. *....... 1,350 7,500 Outback Steakhouse, Inc. ..... 274,500 2,214 Papa John's International, Inc. *...................... 110,966 12,100 Penn National Gaming, Inc. *........................... 376,430 4,900 RARE Hospitality International, Inc. *....... 125,930 20 Red Lion Hotels Corp. *....... 140 2,480 Rubio's Restaurants, Inc. *... 23,039 750 Ryan's Restaurant Group, Inc. *........................... 8,753 841 Sands Regent *................ 7,872 7,340 Speedway Motorsports, Inc. ... 266,662 7,900 The Steak n Shake Co. *....... 143,385 680 Wendy's International, Inc. ....................... 30,702 ------------ 4,410,670 ------------ RETAIL - 5.1% 3,230 1-800 CONTACTS, Inc. *........ 60,563 17,430 1-800-FLOWERS.COM, Inc., Class A *......................... 122,184 860 Arden Group, Inc., Class A.... 64,724 2,550 AutoNation, Inc. *............ 50,924 3,876 Bakers Footwear Group, Inc. *........................... 58,140 1,460 Barnes & Noble, Inc. ......... 55,042 3,808 Big Dog Holdings, Inc. *...... 27,113 37,260 Big Lots, Inc. *.............. 409,487 906 Blair Corp. .................. 33,422 30 Books-A-Million, Inc. ........ 270 30,100 Borders Group, Inc. .......... 667,317 10,790 Brown Shoe Co., Inc. ......... 356,070 9,400 Burlington Coat Factory Warehouse Corp. ............ 357,576 7,090 Cato Corp., Class A........... 141,304 43,248 Charming Shoppes, Inc. *...... 461,456 27,700 Chico's FAS, Inc. *........... 1,019,359 4,720 Circuit City Stores, Inc. .... 80,995
Laudus Trust Semi-Annual Report 113 See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, RETAIL continued 2,470 Cost-U-Less, Inc. *........... $ 15,191 900 CSK Auto Corp. *.............. 13,392 100 Deb Shops, Inc. .............. 2,174 706 Dress Barn, Inc. *............ 16,069 5,570 EZCORP, Inc., Class A *....... 89,454 200 Factory Card & Party Outlet Corp. *..................... 1,450 7,770 Finish Line, Inc., Class A.... 113,364 2,900 Finlay Enterprises, Inc. *.... 26,245 8,400 First Cash Financial Services, Inc. *...................... 221,088 370 Foodarama Supermarkets, Inc. *........................... 13,274 810 Fresh Brands, Inc. *.......... 5,832 1,833 Gottschalks, Inc. *........... 16,717 2,270 Group 1 Automotive, Inc. *.... 62,652 17,300 GSI Commerce, Inc. *.......... 344,270 1,070 Hastings Entertainment, Inc. *........................... 6,227 3,250 Haverty Furniture Cos., Inc. ....................... 39,748 7,160 Lithia Motors, Inc., Class A........................... 207,497 10,400 Longs Drug Stores Corp. ...... 446,056 4,296 Matria Healthcare, Inc. *..... 162,174 2,880 Nordstrom, Inc. .............. 98,842 590 Payless ShoeSource, Inc. *.... 10,266 1,760 PolyMedica Corp. ............. 61,494 15,071 Restoration Hardware, Inc. *........................... 95,249 7,120 Retail Ventures, Inc. *....... 78,178 1,700 REX Stores Corp. *............ 23,290 4,030 Rush Enterprises, Inc., Class B *......................... 60,490 2,300 Shoe Carnival, Inc. *......... 36,593 6,740 Smart & Final, Inc. *......... 87,216 6,000 Sport Chalet, Inc., Class A *........................... 64,500 1,000 Sport Chalet, Inc., Class B *........................... 13,340 10,574 Stage Store, Inc. ............ 284,123 13,400 Stein Mart, Inc. ............. 272,020 3,778 Systemax, Inc. *.............. 26,597 878 TBC Corp. *................... 30,282 3,198 The Bon-Ton Stores, Inc. ..... 62,105 2,800 The Buckle, Inc. ............. 95,116 11,250 The Men's Wearhouse, Inc. *... 300,375 10,060 The Sports Authority, Inc. *........................... 296,166 100 Tractor Supply Co. *.......... 4,565 11,850 Trans World Entertainment Corp. *..................... 93,497 250 United Retail Group, Inc. *... 1,910 26,160 Urban Outfitters, Inc. *...... 769,104 1,500 Village Super Market, Inc., Class A..................... 78,150 5,020 Weis Markets, Inc. ........... 200,850 20,280 Zale Corp. *.................. 551,210 ------------ 9,464,348 ------------ SOAPS & COSMETICS - 0.1% 3,060 Church & Dwight Co., Inc. .... 113,036 750 CPAC, Inc. ................... 3,750 410 Ecolab, Inc. ................. 13,091 4,240 Parlux Fragrances, Inc. *..... 123,554 ------------ 253,431 ------------
SHARES VALUE ---------------------------------------------------------- SOFTWARE - 7.5% 9,440 Allscripts Healthcare Solution, Inc. *............ $ 170,109 7,800 American Software, Inc., Class A........................... 43,680 400 Ansoft Corp. *................ 11,640 90 ANSYS, Inc. *................. 3,464 8,790 AsiaInfo Holdings, Inc. *..... 42,632 32,090 Autodesk, Inc. ............... 1,490,259 2,125 Black Box Corp. .............. 89,165 79,400 BMC Software, Inc. *.......... 1,675,339 400 Bottomline Technologies, Inc. *........................... 6,036 1,310 CACI International, Inc., Class A *................... 79,386 25,360 Cadence Design Systems, Inc. *........................... 409,817 13,100 CIBER, Inc. *................. 97,333 31,640 Cognizant Technology Solutions Corp., Class A *............ 1,474,107 2,050 Computer Programs & Systems, Inc. ....................... 70,807 674 Computer Task Group, Inc. *... 2,494 104,634 Compuware Corp. *............. 994,022 5,950 Covansys Corp. *.............. 94,962 320 CSP, Inc. *................... 2,285 12,784 Dendrite International, Inc. *........................... 256,831 7,600 Digital Insight Corp. *....... 198,056 4,100 Edgewater Technology, Inc. *........................... 19,557 3,440 eFunds Corp. *................ 64,775 6,728 Entrust, Inc. *............... 37,677 5,030 Fidelity National Financial, Inc. ....................... 223,936 700 First American Corp. ......... 31,969 600 First Consulting Group, Inc. *........................... 3,480 4,816 Hyperion Solutions Corp. *.... 234,298 2,927 IDX Systems Corp. *........... 126,388 3,220 Inforte Corp. ................ 13,492 13,358 Internet Security Systems, Inc. *...................... 320,726 2,320 Intrado, Inc. *............... 41,830 5,096 JDA Software Group, Inc. *.... 77,357 4,900 John H. Harland Co. .......... 217,560 4,860 Keynote Systems, Inc. *....... 63,083 13,320 Lawson Software, Inc. *....... 92,441 16,600 Lightbridge, Inc. *........... 134,128 190 Manatron, Inc. *.............. 1,539 2,099 ManTech International Corp., Class A *................... 55,435 8,710 MapInfo Corp. *............... 106,698 1,700 McAfee, Inc. *................ 53,414 9,900 Merge Technologies, Inc. *.... 169,191 1,200 Micros Systems, Inc. *........ 52,500 1,970 Moldflow Corp. *.............. 31,362 5,300 MRO Software, Inc. *.......... 89,252 3,539 NetManage, Inc. *............. 17,801 9,000 NetScout Systems, Inc. *...... 48,870 910 NWH, Inc. .................... 13,059 2,390 Pacific Internet Ltd. *....... 16,443 246 PDF Solutions, Inc. *......... 4,084 8,900 Pegasus Solutions, Inc. *..... 79,922 25,919 Perot Systems Corp., Class A *........................... 366,754 5,717 Pervasive Software, Inc. *.... 24,011 11,460 Phoenix Technologies Ltd. *... 86,294 2,330 Progress Software Corp. *..... 74,024 14,016 Radiant Systems, Inc. *....... 144,645
114 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Portfolio Investments continued Laudus Rosenberg Value Long/Short Equity Fund (a) (Unaudited)
SHARES VALUE ---------------------------------------------------------- COMMON STOCK, SOFTWARE continued 1,360 Redback Networks, Inc. *...... $ 13,491 16,340 ScanSoft, Inc. *.............. 87,092 140 Scientific Learning Corp. *... 735 13,101 Source Interlink Cos., Inc. *........................... 144,897 5,577 SPSS, Inc. *.................. 133,848 517 Stellent, Inc. *.............. 4,431 34,776 Sybase, Inc. *................ 814,453 11,670 Sykes Enterprises, Inc. *..... 138,873 5,500 Syniverse Holdings, Inc. *.... 84,700 180 Synplicity, Inc. *............ 1,190 5,949 TechTeam Global, Inc. *....... 71,864 5,600 Tier Technologies, Inc., Class B *......................... 48,440 3,610 Tripos, Inc. *................ 15,162 7,680 TriZetto Group, Inc. *........ 108,442 3,200 TSR, Inc. .................... 16,480 15,600 Tyler Technologies, Inc. *.... 129,168 2,900 Ulticom, Inc. *............... 31,987 135,869 WebMD Corp. *................. 1,505,428 1,041 WebSideStory, Inc. *.......... 18,447 3,691 Witness Systems, Inc. *....... 77,105 ------------ 13,796,652 ------------ TEXTILES & APPAREL - 1.2% 2,400 Albany International Corp., Class A..................... 88,488 2,868 Ashworth, Inc. *.............. 19,588 7,000 Coach, Inc. *................. 219,520 5,500 Culp, Inc. *.................. 25,740 40 Decorator Industries, Inc. ... 351 2,980 G-III Apparel Group Ltd. *.... 32,929 93 Haggar Corp. ................. 2,644 800 Hampshire Group Ltd. *........ 18,880 2,230 Hartmarx Corp. *.............. 14,607 100 Jaclyn, Inc. *................ 774 6,400 Kenneth Cole Productions, Inc. ....................... 174,656 40 Liz Claiborne, Inc. .......... 1,573 800 McRae Industries, Inc., Class A........................... 9,992 19,900 Phillips-Van Heusen Corp. .... 617,297 4,900 Polo Ralph Lauren Corp. ...... 246,470 300 Rocky Shoes & Boots, Inc. *... 8,580 13,540 Skechers U.S.A., Inc., Class A *........................... 221,650 3,947 Steven Madden Ltd. *.......... 90,465 12,660 Stride Rite Corp. ............ 162,301 19,600 The Gymboree Corp. *.......... 267,344 2,170 Tommy Hilfiger Corp. *........ 37,650 ------------ 2,261,499 ------------ WHOLESALE - 2.3% 600 ADDvantage Technologies Group, Inc. *...................... 2,334 2,080 All American Semiconductor, Inc. *...................... 9,464 7,400 Applied Industrial Technologies, Inc. ......... 265,512 10 Aristotle Corp. *............. 73 28,730 Arrow Electronics, Inc. *..... 900,973 11,070 Avnet, Inc. *................. 270,662 18,000 Bell Microproducts, Inc. *.... 180,540 5,300 BlueLinx Holdings, Inc. ...... 71,232
SHARES OR PRINCIPAL VALUE ---------------------------------------------------------- COMMON STOCK, WHOLESALE continued 1,600 Coast Distribution System, Inc. ....................... $ 9,520 5,400 Delta Apparel, Inc. .......... 77,274 4,950 Department 56, Inc. *......... 61,875 1,700 Handleman Co. ................ 21,471 6,400 Huttig Building Products, Inc. *........................... 57,920 200 IKON Office Solutions, Inc. ....................... 1,996 4,130 Interline Brands, Inc. *...... 86,771 1,160 Keystone Automotive Industries, Inc. *.......... 33,420 3,810 Lazare Kaplan International, Inc. *...................... 37,567 1,500 LKQ Corp. *................... 45,300 400 NACCO Industries, Inc., Class A........................... 45,780 600 Nash Finch Co. ............... 25,314 1,610 Nu Horizons Electronics Corp. *........................... 11,656 700 P & F Industries, Inc. *...... 10,577 7,500 Pomeroy IT Solutions, Inc. *........................... 85,200 3,500 Spartan Stores, Inc. *........ 36,050 1,590 SYNNEX Corp. *................ 26,776 830 TESSCO Technologies, Inc. *... 10,856 360 Traffix, Inc. ................ 2,243 23,600 W.W. Grainger, Inc. .......... 1,484,911 1,400 Watsco, Inc., Class B......... 73,640 7,900 WESCO International, Inc. *... 267,573 ------------ 4,214,480 ------------ TOTAL COMMON STOCK (COST $144,787,638)............... 173,440,653 ------------ REPURCHASE AGREEMENT - 8.9% $16,673,722 Bear Stearns dated 9/30/05, due 10/3/05 at 3.25% with a maturity value of $16,678,238 (fully collateralized by U.S. Treasury Bonds)............. 16,673,722 ------------ TOTAL REPURCHASE AGREEMENT (COST $16,673,722).......... 16,673,722 ------------ TOTAL INVESTMENTS (COST $161,461,360) (C) - 101.6%................ 190,114,375 NET OTHER ASSETS (LIABILITIES) - (1.6)%...... (2,944,029) ------------ NET ASSETS - 100.0%........... $187,170,346 ============
--------------- * Non-income producing security. (a) All long positions are pledged as collateral for securities sold short. (b) Bankrupt security/delisted; fair valued by management. (c) Represents cost for financial reporting purposes, is substantially the same as federal tax purposes, and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation................... $31,469,913 Unrealized depreciation................... (2,816,898) ----------- Net unrealized appreciation............... $28,653,015 ===========
Laudus Trust Semi-Annual Report 115 See the accompanying notes to the financial statements. Financial Statements Statement of Securities Sold Short LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND as of 9/30/05 (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK - 89.9% AGRICULTURE, FOOD & BEVERAGE - 2.1% 1,600 Bridgford Foods Corp. *.......... $ 11,256 107,840 Del Monte Foods Co. *............ 1,157,123 300 Delta & Pine Land Co. ........... 7,923 2,743 Farmer Brothers Co. ............. 55,381 23,460 McCormick & Co., Inc. ........... 765,500 17,510 Monterey Pasta Co. *............. 70,215 44,337 Smithfield Foods, Inc. *......... 1,315,922 17,200 Tootsie Roll Industries, Inc. ... 546,100 ------------ 3,929,420 ------------ AIRLINES - 0.7% 45,670 AirTran Holdings, Inc. *......... 578,182 15,900 ExpressJet Holdings, Inc. *...... 142,623 40 Frontier Airlines, Inc. *........ 391 30,800 JetBlue Airways Corp. *.......... 542,080 ------------ 1,263,276 ------------ AUTOS - 1.7% 15,400 American Axle & Manufacturing Holdings, Inc. ................ 355,432 56,000 Dana Corp. ...................... 526,960 46,890 Gentex Corp. .................... 815,886 36,000 Lear Corp. ...................... 1,222,920 4,760 Proliance International, Inc. *.............................. 26,085 900 Quantum Fuel Systems Technologies Worldwide, Inc. *.............. 3,690 1,800 Superior Industries International, Inc. ........... 38,736 12,740 Tenneco Automotive, Inc. *....... 223,077 ------------ 3,212,786 ------------ BANKS & CREDIT INSTITUTIONS - 5.7% 37,500 AmeriCredit Corp. *.............. 895,125 1,400 Associated Banc-Corp. ........... 42,672 48,400 Astoria Financial Corp. ......... 1,278,728 12,600 BOK Financial Corp. ............. 606,942 3,200 Cardinal Financial Corp. *....... 30,880 10,690 Cash Systems, Inc. *............. 73,440 3,953 Cathay General Bancorp........... 140,173 22,400 CharterMac....................... 459,200 1,600 Citizens Banking Corp. .......... 45,440 103,380 E*TRADE Financial Corp. *........ 1,819,489 8,536 East West Bancorp, Inc. ......... 290,565 8 Encore Capital Group, Inc. *..... 143 13,600 F.N.B. Corp. .................... 235,008 2,224 Financial Institutions, Inc. .... 40,944 1 Hudson City Bancorp, Inc. ....... 6 4,300 Midwest Banc Holdings, Inc. ..... 99,416 9,730 Nelnet, Inc., Class A *.......... 369,837 45,800 New York Community Bancorp, Inc. .......................... 751,120 21,600 Ocwen Financial Corp. *.......... 149,904 38,800 Old National Bancorp............. 823,336 12,440 Oriental Financial Group, Inc. .......................... 152,266 900 Park National Corp. ............. 97,443 4,800 QC Holdings, Inc. *.............. 62,592 37,700 UCBH Holdings, Inc. ............. 690,664
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, BANKS & CREDIT INSTITUTIONS continued 56,100 Valley National Bancorp.......... $ 1,284,690 2,191 Westamerica Bancorp.............. 113,165 ------------ 10,553,188 ------------ BASIC MINERALS & METALS - 2.9% 67,500 AK Steel Holding Corp. *......... 578,475 11,200 American Superconductor Corp. *.............................. 115,920 27,200 Apex Silver Mines Ltd. *......... 427,312 22,900 CommScope, Inc. *................ 397,086 10,100 Encore Wire Corp. *.............. 164,226 40,800 Hecla Mining Co. *............... 178,704 55,200 Meridian Gold, Inc. *............ 1,209,432 14,800 OM Group, Inc. *................. 297,924 4,700 Steel Technologies, Inc. ........ 121,871 25,290 United States Steel Corp. ....... 1,071,032 9,500 Wolverine Tube, Inc. *........... 71,250 40,100 Worthington Industries, Inc. .... 843,303 ------------ 5,476,535 ------------ BEER, LIQUOR & TOBACCO - 0.1% 12,500 Alliance One International, Inc. .......................... 44,250 9,500 Star Scientific, Inc. *.......... 31,920 9,304 Vector Group Ltd. ............... 186,174 ------------ 262,344 ------------ BIOTECHNOLOGY - 3.5% 12,400 ABIOMED, Inc. *.................. 124,868 19,800 Alexion Pharmaceuticals, Inc. *.............................. 548,064 16,380 Applera Corp. - Celera Genomics Group *........................ 198,689 31,900 ARIAD Pharmaceuticals, Inc. *.... 237,017 2,300 ArQule, Inc. *................... 18,009 18,107 Avigen, Inc. *................... 50,337 12,500 BioCryst Pharmaceuticals, Inc. *.............................. 122,250 17,200 Cell Genesys, Inc. *............. 94,256 17,300 CuraGen Corp. *.................. 85,635 2,393 CYTOGEN Corp. *.................. 9,668 8,200 Digene Corp. *................... 233,700 21,796 Dyax Corp. *..................... 121,840 15,400 Dynavax Technologies Corp. *..... 103,180 66,020 Human Genome Sciences, Inc. *.... 897,212 28,454 ICOS Corp. *..................... 785,899 2,300 Idenix Pharmaceuticals, Inc. *... 57,730 12,074 Intermune, Inc. *................ 199,825 16,024 Keryx Biopharmaceuticals, Inc. *.............................. 252,538 16,900 Kosan Biosciences, Inc. *........ 122,863 13,700 Lexicon Genetics, Inc. *......... 54,526 20,500 Neurocrine Biosciences, Inc. *... 1,008,396 18,400 Onyx Pharmaceuticals, Inc. *..... 459,632 17,000 Seattle Genetics, Inc. *......... 89,250 9,805 Tanox, Inc. *.................... 143,643 29,600 Telik, Inc. *.................... 484,256 ------------ 6,503,283 ------------ CHEMICALS & RUBBER - 2.2% 9,100 BioSphere Medical, Inc. *........ 51,688 10,100 Cabot Microelectronics Corp. *... 296,738
116 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Value Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, CHEMICALS & RUBBER continued 39,400 Cooper Tire & Rubber Co. ........ $ 601,638 20,900 Cytec Industries, Inc. .......... 906,642 31,500 International Flavors & Fragrances, Inc. .............. 1,122,661 7,400 Landec Corp. *................... 54,094 10,400 MacDermid, Inc. ................. 273,104 4,120 USEC, Inc. ...................... 45,979 34,940 Valspar Corp. ................... 781,258 11,000 Wellman, Inc. ................... 69,630 ------------ 4,203,432 ------------ COMMUNICATIONS UTILITIES - 1.1% 4,799 Crown Media Holdings, Inc., Class A *............................ 52,549 6,400 InPhonic, Inc. *................. 88,000 466 Level 3 Communications, Inc. *... 1,081 35,200 Mediacom Communications Corp. *.. 259,776 1,500 MIVA, Inc. *..................... 9,045 22,019 NTL, Inc. *...................... 1,470,870 8,205 United Online, Inc. ............. 113,639 ------------ 1,994,960 ------------ CONSTRUCTION & HOMEBUILDING - 0.2% 3,100 Comstock Homebuilding Cos., Inc., Class A *...................... 61,752 20,000 Dycom Industries, Inc. *......... 404,400 50 Willbros Group, Inc. *........... 793 ------------ 466,945 ------------ CONSTRUCTION MATERIALS - 0.3% 12,700 Ceradyne, Inc. *................. 465,836 7,600 Nanophase Technologies Corp. *... 44,080 ------------ 509,916 ------------ CONSUMER DURABLES - 0.1% 21,900 Fleetwood Enterprises, Inc. *.... 269,370 ------------ DRUGS & PHARMACEUTICALS - 4.7% 23,400 Adolor Corp. *................... 249,912 34,900 Alkermes, Inc. *................. 586,320 49,000 Amylin Pharmaceuticals, Inc. *... 1,704,709 5,200 AtheroGenics, Inc. *............. 83,356 12,984 Bioenvision, Inc. *.............. 104,262 5,800 Cubist Pharmaceuticals, Inc. *... 124,932 34,300 CV Therapeutics, Inc. *.......... 917,525 19,600 Dendreon Corp. *................. 131,516 100 DepoMed, Inc. *.................. 648 34,790 Discovery Laboratories, Inc. *... 224,396 11,319 DOV Pharmaceutical, Inc. *....... 192,197 16,200 Enzo Biochem, Inc. *............. 248,832 6,800 Epix Pharmaceuticals, Inc. *..... 52,360 2,484 Guilford Pharmaceuticals, Inc. *.............................. 9,067 6,212 ImmunoGen, Inc. *................ 45,596 15,500 Indevus Pharmaceuticals, Inc. *.............................. 44,640 16,700 Inspire Pharmaceuticals, Inc. *.............................. 126,920 35,600 Isis Pharmaceuticals, Inc. *..... 179,780 8,370 Martek Biosciences Corp. *....... 294,038
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, DRUGS & PHARMACEUTICALS continued 6,600 Medicis Pharmaceutical Corp., Class A........................ $ 214,896 16,300 Myriad Genetics, Inc. *.......... 356,318 4,618 Nektar Therapeutics *............ 78,275 9,100 Neose Technologies, Inc. *....... 21,385 11,543 Neurogen Corp. *................. 79,416 6,000 NitroMed, Inc. *................. 108,000 25,300 NPS Pharmaceuticals, Inc. *...... 255,783 11,400 OrthoLogic Corp. *............... 43,662 17,022 Pain Therapeutics, Inc. *........ 107,068 12,200 Par Pharmaceutical Cos., Inc. *.............................. 324,764 13,735 Penwest Pharmaceuticals Co. *.... 240,775 8,171 Pharmacyclics, Inc. *............ 73,702 10,258 POZEN, Inc. *.................... 112,735 2,200 Protein Design Labs, Inc. *...... 61,600 3,300 Santarus, Inc. *................. 20,493 25,500 SciClone Pharmaceuticals, Inc. *.............................. 143,820 8,010 The Medicines Co. *.............. 184,310 38,906 Vertex Pharmaceuticals, Inc. *... 869,549 8,300 ZymoGenetics, Inc. *............. 136,950 ------------ 8,754,507 ------------ ELECTRIC UTILITIES - 0.9% 14,400 Allete, Inc. .................... 659,664 23,800 DTE Energy Co. .................. 1,091,468 ------------ 1,751,132 ------------ FINANCIAL INVESTMENTS - 1.0% 8,300 Acacia Research - Acacia Technologies *................. 50,962 6,800 Digital Theater Systems, Inc. *.............................. 114,512 1,670 Hanover Compressor Co. *......... 23,146 20,600 InterDigital Communications Corp. *.............................. 404,584 29,600 Marvel Entertainment, Inc. *..... 528,952 900 Royal Gold, Inc. ................ 24,183 40,440 United Rentals, Inc. *........... 797,073 ------------ 1,943,412 ------------ FOREST PRODUCTS & PAPER - 1.8% 10,200 Bowater, Inc. ................... 288,354 81 Caraustar Industries, Inc. *..... 889 27,200 Graphic Packaging Corp. *........ 76,160 28,010 Longview Fibre Co. .............. 545,915 21,210 Louisiana-Pacific Corp. ......... 587,305 9,832 Pope & Talbot, Inc. ............. 100,385 16,300 Sealed Air Corp. *............... 773,598 25,600 Temple-Inland, Inc. ............. 1,045,760 ------------ 3,418,366 ------------ FURNITURE & HOUSEHOLD ITEMS - 1.9% 28,900 Alliance Gaming Corp. *.......... 313,565 4,800 Constar International, Inc. *.... 9,696 300 Global-Tech Appliances, Inc. *... 1,503 24,890 Jacuzzi Brands, Inc. *........... 200,613 11,880 Kinetic Concepts, Inc. *......... 674,784 21,200 Leapfrog Enterprises, Inc. *..... 313,124 41,936 Mattel, Inc. .................... 699,492
Laudus Trust Semi-Annual Report 117 See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Value Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, FURNITURE & HOUSEHOLD ITEMS continued 44,000 Pactiv Corp. *................... $ 770,881 400 Research Frontiers, Inc. *....... 1,240 7,400 Rogers Corp. *................... 286,380 4,000 Select Comfort Corp. *........... 79,920 10,700 Spartech Corp. .................. 209,078 5,400 Virco Manufacturing Corp. *...... 41,040 ------------ 3,601,316 ------------ GAS & OTHER PUBLIC UTILITIES - 1.2% 107,500 El Paso Corp. ................... 1,494,250 11 Southern Union Co. *............. 289 13,236 Stericycle, Inc. *............... 756,437 ------------ 2,250,976 ------------ GOVERNMENT AIRCRAFT & DEFENSE - 0.7% 100 Allied Defense Group, Inc. *..... 2,255 27,200 Flir Systems, Inc. *............. 804,576 6,300 Microvision, Inc. *.............. 37,170 14,706 Sirf Technology Holdings, Inc. *.............................. 443,092 8,800 Sturm, Ruger & Co., Inc. ........ 80,960 ------------ 1,368,053 ------------ HEALTH CARE & HOSPITAL - 1.7% 5,000 America Service Group, Inc. *.... 82,950 4,980 AMERIGROUP Corp. *............... 95,218 26,200 Array BioPharma, Inc. *.......... 188,116 5,178 Bio-Reference Labs, Inc. *....... 89,528 4,501 Cardiac Science Corp. *.......... 48,251 16,200 LifePoint Hospitals, Inc. *...... 708,426 21,300 Odyssey Healthcare, Inc. *....... 361,461 5,100 Specialty Laboratories, Inc. *... 67,473 81,700 Tenet Healthcare Corp. *......... 917,490 17,604 VCA Antech, Inc. *............... 449,254 7,500 VistaCare, Inc., Class A *....... 108,525 ------------ 3,116,692 ------------ INFORMATION & SERVICES - 4.2% 8,300 American Reprographics Co. *..... 141,930 2,900 Arbinet-thexchange, Inc. *....... 20,880 22,700 Certegy, Inc. ................... 908,454 80 Clark, Inc. ..................... 1,346 34,100 Corinthian Colleges, Inc. *...... 452,507 7,512 Cross Country Healthcare, Inc. *.............................. 139,423 21,557 deCODE genetics, Inc. *.......... 180,863 40,300 DeVry, Inc. *.................... 767,715 17,100 DiamondCluster International, Inc. *......................... 129,618 4,313 Education Management Corp. *..... 139,051 7,900 Exact Sciences Corp. *........... 14,378 31,500 Exelixis, Inc. *................. 241,605 12,400 Hewitt Associates, Inc. *........ 338,272 2,900 Intersections, Inc. *............ 34,655 4,300 iPayment Holdings, Inc. *........ 162,712 38,670 Iron Mountain, Inc. *............ 1,419,189 9,000 NetRatings, Inc. *............... 136,980 24,980 Nuvelo, Inc. *................... 239,808 8,100 PDI, Inc. *...................... 124,011 10,800 PeopleSupport, Inc. *............ 84,780
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, INFORMATION & SERVICES continued 25,500 Regeneron Pharmaceuticals, Inc. *.............................. $ 241,995 8,200 Strayer Education, Inc. ......... 775,064 11,500 Syntroleum Corp. *............... 167,440 22,800 Tetra Tech, Inc. *............... 383,496 7 The Corporate Executive Board Co. ........................... 546 1,300 Total System Services, Inc. ..... 30,303 8,800 Universal Technical Institute, Inc. *......................... 313,368 13,300 Viad Corp. ...................... 363,755 ------------ 7,954,144 ------------ INSTRUMENTS - 4.8% 6,895 Abaxis, Inc. *................... 89,980 50 Adeza Biomedical Corp. *......... 871 1,400 Aksys Ltd. *..................... 2,954 36,400 Align Technology, Inc. *......... 244,608 7,000 Animas Corp. *................... 109,900 70,800 Applera Corp. ................... 1,645,392 500 ATS Medical, Inc. *.............. 1,850 5,350 Beckman Coulter, Inc. ........... 288,793 3,400 Caliper Life Sciences, Inc. *.... 23,902 6,200 Catapult Communications Corp. *.............................. 113,708 16,874 Cepheid, Inc. *.................. 124,699 5,900 Cholestech Corp. *............... 59,472 7,344 Cognex Corp. .................... 220,834 21,000 Conceptus, Inc. *................ 243,600 5,400 Conor Medsystems, Inc. *......... 126,900 6,300 CyberOptics, Inc. *.............. 87,759 26,720 Cytyc Corp. *.................... 717,432 200 Daxor Corp. *.................... 3,044 9,471 Dionex *......................... 513,802 6,100 Faro Technologies, Inc. *........ 118,889 5,762 FEI Co. *........................ 110,919 18,078 FormFactor, Inc. *............... 412,540 7,400 I-Flow Corp. *................... 101,454 250 IDEXX Laboratories, Inc. *....... 16,720 10,809 Illumina, Inc. *................. 138,463 24,600 Input/Output, Inc. *............. 196,308 3,200 IntraLase Corp. *................ 47,072 30 Kensey Nash Corp. *.............. 920 84 KVH Industries, Inc. *........... 819 15,900 Luminex Corp. *.................. 159,636 7,400 Measurement Specialties, Inc. *.............................. 156,880 14,435 Merit Medical Systems, Inc. *.... 256,077 1,600 Micro Therapeutics, Inc. *....... 8,944 7,060 North American Scientific, Inc. *.............................. 18,568 9,300 OSI Systems, Inc. *.............. 146,940 6,900 Photon Dynamics, Inc. *.......... 132,135 88 Possis Medical, Inc. *........... 964 9,600 RAE Systems, Inc. *.............. 33,024 15,730 Regeneration Technologies, Inc. *.............................. 128,514 7,900 STAAR Surgical Co. *............. 43,529 28,700 ThermoGenesis Corp. *............ 152,110 2,200 TriPath Imaging, Inc. *.......... 15,532 967 Utah Medical Products, Inc. ..... 23,604 11,500 Varian Medical Systems, Inc. *... 454,365 19,970 Varian, Inc. *................... 685,370
118 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Value Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, INSTRUMENTS continued 11,500 Waters Corp. *................... $ 478,400 12,200 Wright Medical Group, Inc. *..... 301,096 ------------ 8,959,292 ------------ INSURANCE - 3.6% 17,540 Brown & Brown, Inc. ............. 871,563 36,100 ChoicePoint, Inc. *.............. 1,558,437 7,840 Citizens, Inc. *................. 50,333 2,543 CorVel Corp. *................... 60,930 16,900 Hilb, Rogal & Hamilton Co. ...... 630,708 22,430 Jefferson-Pilot Corp. ........... 1,147,743 1,000 Markel Corp. *................... 330,500 6,900 Molina Healthcare, Inc. *........ 172,431 17,826 PMA Capital Corp., Class A *..... 156,512 70 White Mountains Insurance Group Ltd. .......................... 42,280 47,300 Willis Group Holdings Ltd. ...... 1,776,115 ------------ 6,797,552 ------------ IT HARDWARE - 5.2% 100 Adaptec, Inc. *.................. 383 61,373 ADC Telecommunications, Inc. *... 1,402,986 6,980 ADTRAN, Inc. .................... 219,870 9,600 Advanced Energy Industries, Inc. *.............................. 103,296 9,500 Altera Corp. *................... 181,545 24,500 AMIS Holdings, Inc. *............ 290,570 3,800 Atheros Communications *......... 37,088 33,880 Avaya, Inc. *.................... 348,964 1,680 Avici Systems, Inc. *............ 7,644 36,820 Axcelis Technologies, Inc. *..... 192,200 13,000 California Micro Devices Corp. *.............................. 100,360 600 Centillium Communications, Inc. *.............................. 2,262 2,820 Cherokee International Corp. *... 9,870 1,600 Color Kinetics, Inc. *........... 24,000 9,400 Daktronics, Inc. ................ 225,412 4,800 Ditech Communications Corp. *.... 32,352 12,900 ESS Technology, Inc. *........... 45,795 34,825 Integrated Device Technology, Inc. *......................... 374,021 14,400 Integrated Silicon Solution, Inc. *.............................. 120,960 3,300 Intervoice, Inc. *............... 29,733 11,500 Leadis Technology, Inc. *........ 78,775 2,600 Metalink Ltd. *.................. 10,660 11,696 Micrel, Inc. *................... 131,346 4,775 Micro Linear Corp. *............. 19,100 17,074 Microchip Technology, Inc. ...... 514,269 4,264 Nam Tai Electronics, Inc. ....... 108,434 27,810 National Semiconductor Corp. .... 731,403 14,210 O2Micro International Ltd. *..... 223,665 6,920 Plantronics, Inc. ............... 213,205 24,200 PMC-Sierra, Inc. *............... 213,202 11,473 Power Integrations, Inc. *....... 249,538 1,677 Radyne ComStream, Inc. *......... 17,793 39,900 Rambus, Inc. *................... 482,790 38,000 Semtech Corp. *.................. 625,860 13,200 Synaptics, Inc. *................ 248,160 71,100 Teradyne, Inc. *................. 1,173,150 26,893 Tessera Technologies, Inc. *..... 804,370
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, IT HARDWARE continued 1,800 Universal Display Corp. *........ $ 20,070 5,800 Vyyo, Inc. *..................... 22,330 ------------ 9,637,431 ------------ LAND & WATER TRANSPORTATION - 1.3% 26,538 Expeditors International of Washington, Inc. .............. 1,506,828 16,900 Heartland Express, Inc. ......... 343,746 13,000 Kansas City Southern *........... 303,030 13,300 Quality Distribution, Inc. *..... 106,267 13,600 Sirva, Inc. *.................... 101,456 ------------ 2,361,327 ------------ MAINFRAME & MINICOMPUTERS - 0.0% 9,300 Omnicell, Inc. *................. 90,489 ------------ METAL PRODUCTS & MACHINERY - 2.9% 1 American Power Conversion Corp. ......................... 26 10,900 Ball Corp. ...................... 400,466 11,400 Bucyrus International, Inc., Class A........................ 560,082 39,900 Donaldson Co., Inc. ............. 1,218,147 3,100 Environmental Tectonics Corp. *.............................. 15,996 8,000 Fedders Corp. ................... 17,120 27,400 Federal Signal Corp. ............ 468,266 22,200 Global Power Equipment Group, Inc. *......................... 158,286 50,850 GrafTech International Ltd. *.... 276,116 10,886 Littlefuse, Inc. *............... 306,223 5,100 NL Industries, Inc. ............. 95,829 1,149 Peerless Manufacturing Co. *..... 20,079 21,700 Plug Power, Inc. *............... 147,560 7,090 Spectrum Brands, Inc. *.......... 166,970 9,900 Ultralife Batteries, Inc. *...... 127,908 38,100 Zebra Technologies Corp., Class A *.............................. 1,489,328 ------------ 5,468,402 ------------ MISCELLANEOUS FINANCE - 1.6% 9,600 Calamos Asset Management, Inc., Class A........................ 236,928 3,500 CKX, Inc. *...................... 43,995 10,300 eSPEED, Inc., Class A *.......... 78,074 107,500 Janus Capital Group, Inc. ....... 1,553,375 1,686 Jefferies Group, Inc. ........... 73,425 54,200 Knight Capital Group, Inc., Class A *............................ 450,402 4,856 W.P. Stewart & Co., Ltd. ........ 108,386 24,000 Waddell & Reed Financial, Inc., Class A........................ 464,640 1,700 Westwood Holdings Group, Inc. ... 31,280 ------------ 3,040,505 ------------ OIL & COAL RESOURCES - 0.2% 1,100 Clayton Williams Energy, Inc. *.............................. 47,520 19,700 Exploration Co. of Delaware *.... 141,840 9,486 FX Energy, Inc. *................ 113,547 7,700 Infinity, Inc. *................. 62,755 ------------ 365,662 ------------
Laudus Trust Semi-Annual Report 119 See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Value Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK continued OIL DISTRIBUTION - 0.0% 800 Cheniere Energy, Inc. *.......... $ 33,088 ------------ PHOTOOPTICAL, MICROS & OFFICE MACHINERY - 1.0% 14,000 Avid Technology, Inc. *.......... 579,600 4,640 Diebold, Inc. ................... 159,894 27,300 Dot Hill Systems Corp. *......... 183,729 18,265 Echelon Corp. *.................. 168,221 4,984 Electronics for Imaging, Inc. *.............................. 114,333 11,200 Immersion Corp. *................ 78,512 9,800 Interlink Electronics, Inc. *.... 52,724 5,400 LaserCard Corp. *................ 47,898 12,100 Network Appliance, Inc. *........ 287,254 3,700 Overland Storage, Inc. *......... 30,155 2,750 Symbol Technologies, Inc. ....... 26,620 100 TransAct Technologies, Inc. *.... 760 12,350 X-Rite, Inc. .................... 153,140 ------------ 1,882,840 ------------ PUBLISHING, BROADCASTING & CINEMA - 2.6% 3,000 aQquantive, Inc. *............... 60,390 11,800 Dow Jones & Co., Inc. ........... 450,642 22,900 DreamWorks Animation SKG, Inc., Class A *...................... 633,414 6,600 E.W. Scripps Co., Class A........ 329,802 2,300 Fisher Communications, Inc. *.... 107,088 100 Journal Communications, Inc., Class A........................ 1,490 21,900 Journal Register Co. ............ 354,342 14,800 Knight-Ridder, Inc. ............. 868,464 17,300 Nexstar Broadcasting Group, Inc., Class A *...................... 98,610 18,176 Pixar *.......................... 809,014 14,500 R. H. Donnelley Corp. *.......... 917,270 54 Salem Communications Corp., Class A *............................ 996 17,200 Sinclair Broadcast Group, Inc., Class A........................ 152,564 6,300 Young Broadcasting, Inc., Class A *.............................. 21,987 ------------ 4,806,073 ------------ REAL ESTATE DEVELOPMENT - 0.9% 35,000 Forest City Enterprises, Inc., Class A........................ 1,333,500 1,800 Reading International, Inc. *.... 14,346 4,700 Tejon Ranch Co. *................ 220,900 1,980 Wellsford Real Properties, Inc. *.............................. 37,620 ------------ 1,606,366 ------------ REAL ESTATE INVESTMENT TRUSTS - 9.6% 900 Archstone-Smith Trust............ 35,883 22,400 Arden Realty, Inc. .............. 922,208 18,740 Avalonbay Communities, Inc. ..... 1,606,018 15,580 BRE Properties, Inc., Class A.... 693,310 26,700 CenterPoint Properties Trust..... 1,196,160 2,300 Duke Realty Corp. ............... 77,924 10,700 Equity Lifestyle Properties, Inc. .......................... 481,500 16,900 Federal Realty Investment Trust.......................... 1,029,717
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, REAL ESTATE INVESTMENT TRUSTS continued 700 First Industrial Realty Trust, Inc. .......................... $ 28,035 38,200 General Growth Properties, Inc. .......................... 1,716,326 1,300 Glenborough Realty Trust, Inc. .......................... 24,960 7,300 Glimcher Realty Trust............ 178,631 31,800 Health Care Property Investors, Inc. .......................... 858,282 1,520 Health Care REIT, Inc. .......... 56,377 48,290 Plum Creek Timber Co. ........... 1,830,673 22,300 Post Properties, Inc. ........... 830,675 7,020 Realty Income Corp. ............. 167,848 3,500 Saul Centers, Inc. .............. 125,965 24,200 Shurgard Storage Centers, Inc., Class A........................ 1,352,054 14,400 Tanger Factory Outlet Centers, Inc. .......................... 400,464 10,100 The Macerich Co. ................ 655,894 26,900 The Mills Corp. ................. 1,481,652 3,700 Town & Country Trust............. 107,374 40,000 United Dominion Realty Trust, Inc. .......................... 948,000 16,600 Ventas, Inc. .................... 534,520 13,145 Washington Real Estate Investment Trust.......................... 408,941 ------------ 17,749,391 ------------ RESTAURANTS, HOTELS & THEATERS - 2.0% 14,694 Applebee's International, Inc. .......................... 304,019 7,800 Buca, Inc. *..................... 47,346 200 Buffalo Wild Wings, Inc. *....... 5,300 29 Churchill Downs, Inc. ........... 1,024 26,900 Krispy Kreme Doughnuts, Inc. *... 168,394 1,000 Lakes Entertainment, Inc. *...... 10,225 4,500 Las Vegas Sands Corp. *.......... 148,095 15,200 Magna Entertainment Corp., Class A *............................ 101,232 3,600 MTR Gaming Group, Inc. *......... 28,836 9,500 Multimedia Games, Inc. *......... 92,245 2,900 Nevada Gold & Casinos, Inc. *.... 32,654 13,787 P.F. Chang's China Bistro, Inc. *.............................. 618,071 26,400 Ruby Tuesday, Inc. .............. 574,464 10,840 Six Flags, Inc. *................ 77,940 1,100 Smith & Wollensky Restaurant Group, Inc. *.................. 7,040 21,381 The Cheesecake Factory, Inc. *... 667,942 30,444 Westwood One, Inc. .............. 605,531 7,539 Wynn Resorts Ltd. *.............. 340,386 ------------ 3,830,744 ------------ RETAIL - 5.0% 16,900 99 Cents Only Stores *........... 156,325 46,100 Carmax, Inc. *................... 1,441,547 6,000 CDW Corp. ....................... 353,520 6,400 Charlotte Russe Holding, Inc. *.............................. 85,248 16,000 Christopher & Banks Corp. ....... 221,920 5,000 Design Within Reach, Inc. *...... 45,150 500 Dick's Sporting Goods, Inc. *.... 15,055 18,600 Family Dollar Stores, Inc. ...... 369,582 16,500 Fastenal Co. .................... 1,007,985 300 Hot Topic, Inc. *................ 4,608
120 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statement of Securities Sold Short continued Laudus Rosenberg Value Long/Short Equity Fund (Unaudited)
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, RETAIL continued 278 Mothers Work, Inc. *............. $ 2,780 9,280 Pathmark Stores, Inc. *.......... 104,586 16,400 PETCO Animal Supplies, Inc. *.... 347,024 36,590 PETsMART, Inc. .................. 796,930 44,800 Pier 1 Imports, Inc. ............ 504,896 7,000 PriceSmart, Inc. *............... 59,500 15,000 RadioShack Corp. ................ 372,000 31,609 Ross Stores, Inc. ............... 749,133 4,100 Saks, Inc. *..................... 75,850 27,300 Tiffany & Co. ................... 1,085,721 6,600 ValueVision Media, Inc., Class A *.............................. 74,910 30 West Marine, Inc. *.............. 443 5,149 Whitehall Jewellers, Inc. *...... 8,702 10,300 Whole Foods Market, Inc. ........ 1,384,835 ------------ 9,268,250 ------------ SOAPS & COSMETICS - 0.4% 14,400 Clorox Co. ...................... 799,776 ------------ SOFTWARE - 6.9% 2,500 Accelrys, Inc. *................. 16,900 10,600 Blackboard, Inc. *............... 265,106 13,600 Cogent, Inc. *................... 323,000 17,400 Concur Technologies, Inc. *...... 215,238 10,000 CoStar Group, Inc. *............. 467,200 17,674 CSG Systems International, Inc. *.............................. 383,703 2,430 DST Systems, Inc. *.............. 133,237 11,000 eCollege.com, Inc. *............. 163,460 27,492 eResearch Technology, Inc. *..... 390,111 12,170 GTECH Holdings Corp. ............ 390,170 14,287 Harris Interactive, Inc. *....... 61,005 52,500 Identix, Inc. *.................. 246,750 6,500 InterVideo, Inc. *............... 65,195 9,700 Intuit, Inc. *................... 434,657 2,500 Jamdat Mobile, Inc. *............ 52,500 3,000 Kanbay International, Inc. *..... 56,400 8,100 Kronos, Inc. *................... 361,584 900 Manhattan Associates, Inc. *..... 20,880 27,800 Mercury Interactive Corp. *...... 1,100,880 4,800 MicroStrategy, Inc., Class A *... 337,392 31,097 National Instruments Corp. ...... 766,230 31,000 NAVTEQ Corp. *................... 1,548,449 116,970 Novell, Inc. *................... 871,427 10,400 Open Solutions, Inc. *........... 226,928
SHARES VALUE ----------------------------------------------------------- COMMON STOCK, SOFTWARE continued 9,750 OPNET Technologies, Inc. *....... $ 82,095 1,800 PlanetOut, Inc. *................ 15,192 100 PLATO Learning, Inc. *........... 761 9,700 PortalPlayer, Inc. *............. 266,071 22,900 Red Hat, Inc. *.................. 485,251 100 Renaissance Learning, Inc. ...... 1,780 29,700 Salesforce.com, Inc. *........... 686,664 8,800 SM&A *........................... 77,528 14,700 Sohu.com, Inc. *................. 251,811 12,600 SupportSoft, Inc. *.............. 63,504 42,350 Take-Two Interactive Software, Inc. *......................... 935,512 5,686 Transaction Systems Architects, Inc. *......................... 158,355 76,800 Unisys Corp. *................... 509,952 5,925 Verint Systems, Inc. *........... 242,570 3,500 WebEx Communications, Inc. *..... 85,785 ------------ 12,761,233 ------------ TEXTILES & APPAREL - 1.1% 36,029 Cintas Corp. .................... 1,478,990 6,503 Columbia Sportswear Co. *........ 301,739 40 Innovo Group, Inc. *............. 79 14,170 Kellwood Co. .................... 366,295 ------------ 2,147,103 ------------ WHOLESALE - 2.1% 3,900 Action Performance Companies, Inc. .......................... 48,750 18,500 Advanced Medical Optics, Inc. *.............................. 702,075 1,035 GTSI Corp. *..................... 7,607 40,500 OfficeMax, Inc. ................. 1,282,635 7,090 Owens & Minor, Inc. ............. 208,092 6,426 Patterson Cos., Inc. *........... 257,233 5,300 ScanSource, Inc. *............... 258,322 30,800 Tech Data Corp. *................ 1,130,668 ------------ 3,895,382 ------------ TOTAL SECURITIES SOLD SHORT (PROCEEDS $166,267,628) - 89.9%.......... $168,304,959 ============
--------------- * Non-income producing security. Laudus Trust Semi-Annual Report 121 See the accompanying notes to the financial statements. Financial Statements Statements of Assets and Liabilities as of 9/30/05 (Unaudited)
LAUDUS LAUDUS LAUDUS ROSENBERG ROSENBERG ROSENBERG U.S. LARGE U.S. LARGE U.S. LARGE CAPITALIZATION CAPITALIZATION GROWTH CAPITALIZATION VALUE FUND FUND FUND -------------- --------------------- -------------------- ASSETS: Total Investments, at cost(1)........... $30,892,317 $15,500,831 $5,418,127 =========== =========== ========== Investments, at value(1)................ $38,362,418 $16,675,276 $5,957,084 Repurchase agreements, at amortized cost................................... 347,000 148,627 -- ----------- ----------- ---------- Total Investments...................... 38,709,418 16,823,903 5,957,084 ----------- ----------- ---------- Deposits with broker and custodian bank for securities sold short.............. -- -- -- Cash.................................... 689 -- 65,240 Foreign currency, at value(2)........... -- -- -- Unrealized gain on foreign currency contracts.............................. -- -- -- Dividends and interest receivable....... 40,832 12,217 6,152 Receivable for securities sold short.... -- -- -- Receivable for investments sold......... 432,473 156,116 13,390 Reclaims receivable..................... -- -- -- Receivable from Manager................. -- 2,076 9,897 Prepaid expenses........................ 12,304 10,227 501 ----------- ----------- ---------- Total Assets........................... 39,195,716 17,004,539 6,052,264 ----------- ----------- ---------- LIABILITIES: Securities sold short, proceeds......... $ -- $ -- $ -- =========== =========== ========== Securities sold short................... -- -- -- Unrealized loss on foreign currency contracts.............................. -- -- -- Cash overdraft.......................... -- -- -- Payable for investments purchased....... 763,084 245,345 63,667 Payable to cover securities sold short.. -- -- -- Payable for return of collateral received for securities loaned......... -- -- -- Accrued expenses and other liabilities: Manager fees........................... 4,030 -- -- Administrator and fund accounting fees................................... 5,555 4,508 3,836 Transfer agent fees.................... 2,422 2,235 1,999 Trustees' fees......................... 500 175 75 Trustees' Retirement Plan.............. 2,325 1,025 360 Distribution fees and shareholder service fees........................... 1,156 389 19 Other accrued expenses................. 32,021 19,911 1,109 ----------- ----------- ---------- Total Liabilities...................... 811,093 273,588 71,065 ----------- ----------- ---------- NET ASSETS.............................. $38,384,623 $16,730,951 $5,981,199 =========== =========== ========== NET ASSETS CONSIST OF: Capital................................. $26,275,380 $16,496,560 $5,351,772 Undistributed net investment income/(loss).......................... 240,470 10,074 50,349 Accumulated net realized gains/(losses) on investments......................... 4,051,672 (1,098,755) 40,121 Net unrealized appreciation/(depreciation) on investments............................ 7,817,101 1,323,072 538,957 ----------- ----------- ---------- NET ASSETS.............................. $38,384,623 $16,730,951 $5,981,199 =========== =========== ========== INSTITUTIONAL SHARES: Net Assets.............................. $32,090,427 $14,819,796 $5,879,780 Shares Outstanding...................... 2,535,032 1,701,429 524,430 Net Asset Value, Offering Price and Redemption Price per Share............. $ 12.66 $ 8.71 $ 11.21 =========== =========== ========== ADVISER SHARES: Net Assets.............................. $ -- $ -- $ -- Shares Outstanding...................... -- -- -- Net Asset Value, Offering Price and Redemption Price per Share............. $ -- $ -- $ -- =========== =========== ========== INVESTOR SHARES: Net Assets.............................. $ 6,294,196 $ 1,911,155 $ 101,419 Shares Outstanding...................... 497,017 217,668 9,062 Net Asset Value, Offering Price and Redemption Price per Share............. $ 12.66 $ 8.78 $ 11.19 =========== =========== ==========
--------------- (1) Includes Securities on loan for Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund and Laudus Rosenberg International Small Capitalization Fund of $52,932,745, $102,452,099 and $67,357,166, respectively. (2) Foreign currency at cost for Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/Short Equity Fund was $350,102, $13,409,629 and $6,499,331, respectively. 122 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statements of Assets and Liabilities (Unaudited) continued
LAUDUS LAUDUS LAUDUS LAUDUS ROSENBERG ROSENBERG LAUDUS ROSENBERG ROSENBERG INTERNATIONAL U.S. LARGE/MID ROSENBERG U.S. SMALL INTERNATIONAL SMALL CAPITALIZATION U.S. DISCOVERY CAPITALIZATION EQUITY CAPITALIZATION LONG/SHORT FUND FUND FUND FUND EQUITY FUND -------------- ----------------- ------------- -------------- -------------- ASSETS: Total Investments, at cost (1).......... $660,689,770 $1,054,051,253 $25,653,352 $831,113,751 $16,209,816 ============ ============== =========== ============ =========== Total Investments, at value (1)......... $686,906,451 $1,350,852,933 $29,868,402 $904,930,976 $18,971,854 Repurchase agreements, at amortized cost................................... 34,079,000 5,612,000 747,000 40,879,000 1,087,136 ------------ -------------- ----------- ------------ ----------- Total Investments...................... 720,985,451 1,356,464,933 30,615,402 945,809,976 20,058,990 ------------ -------------- ----------- ------------ ----------- Deposits with broker and custodian bank for securities sold short.............. -- -- -- -- 19,115,483 Cash.................................... 562 5,729 -- -- -- Foreign currency, at value (2).......... -- -- 345,578 13,353,329 -- Unrealized gain on foreign currency contracts.............................. -- -- 16 5,813 -- Dividends and interest receivable....... 535,098 1,251,782 77,704 1,419,090 44,039 Receivable for securities sold short.... -- -- -- -- 123,279 Receivable for investments sold......... 5,076,355 9,715,002 507,809 3,183,159 387,635 Reclaims receivable..................... -- -- 14,137 267,646 -- Receivable from Manager................. -- -- 2,000 -- -- Prepaid expenses........................ 36,653 103,384 12,348 82,735 16,811 ------------ -------------- ----------- ------------ ----------- Total Assets........................... 726,634,119 1,367,540,830 31,574,994 964,121,748 39,746,237 ------------ -------------- ----------- ------------ ----------- LIABILITIES: Securities sold short, proceeds......... $ -- $ -- $ -- $ -- $18,781,311 ============ ============== =========== ============ =========== Securities sold short................... -- -- -- -- 19,073,837 Unrealized loss on foreign currency contracts.............................. -- -- 561 1,433 -- Payable to custodian.................... -- -- 70 17,496 -- Payable for investments purchased....... 34,445,704 11,312,449 470,487 12,977,409 327,700 Payable to cover securities sold short.. -- -- -- -- 204,353 Payable for return of collateral received for securities loaned......... 53,993,755 104,837,394 -- 72,220,939 -- Accrued expenses and other liabilities: Manager fees........................... 357,687 924,550 -- 678,086 11,364 Administrator and fund accounting fees................................... 34,818 68,519 7,674 53,641 4,554 Transfer agent fees.................... 19,475 38,460 3,395 39,127 3,369 Trustee fees........................... 7,000 16,500 400 10,250 250 Trustee Retirement Plan................ 37,000 76,500 1,900 52,600 1,250 Distribution fees and shareholder service fees........................... 35,068 79,007 2,557 103,078 1,475 Other accrued expenses................. 377,465 1,653,681 29,075 680,745 32,013 ------------ -------------- ----------- ------------ ----------- Total Liabilities...................... 89,307,972 119,007,060 516,119 86,834,804 19,660,165 ------------ -------------- ----------- ------------ ----------- Net Assets.............................. $637,326,147 $1,248,533,770 $31,058,875 $877,286,944 $20,086,072 ============ ============== =========== ============ =========== NET ASSETS CONSIST OF: Capital................................. $558,182,580 $ 800,484,147 $27,101,930 $716,043,183 $20,366,255 Undistributed net investment income/(loss).......................... (21,807) (183,695) 338,866 4,218,988 174,273 Accumulated net realized gains/(losses) on investments......................... 18,869,693 145,819,638 (1,336,979) 42,408,506 (4,011,104) Net unrealized appreciation/(depreciation) on investments............................ 60,295,681 302,413,680 4,955,058 114,616,267 3,556,648 ------------ -------------- ----------- ------------ ----------- Net Assets.............................. $637,326,147 $1,248,533,770 $31,058,875 $877,286,944 $20,086,072 ============ ============== =========== ============ =========== INSTITUTIONAL SHARES: Net Assets.............................. $442,154,801 $ 902,633,167 $18,410,422 $349,641,121 $12,863,973 Shares Outstanding...................... 25,240,537 62,485,742 1,744,637 18,920,310 1,103,762 Net Asset Value, Offering Price and Redemption Price per Share............. $ 17.52 $ 14.45 $ 10.55 $ 18.48 $ 11.65 ============ ============== =========== ============ =========== ADVISER SHARES: Net Assets.............................. $ -- $ 41,061,570 $ -- $ -- $ -- Shares Outstanding...................... -- 2,871,510 -- -- -- Net Asset Value, Offering Price and Redemption Price per Share............. $ -- $ 14.30 $ -- $ -- $ -- ============ ============== =========== ============ =========== INVESTOR SHARES: Net Assets.............................. $195,171,346 $ 304,839,033 $12,648,453 $527,645,823 $ 7,222,099 Shares Outstanding...................... 11,213,521 21,461,028 1,202,613 28,875,007 619,238 Net Asset Value, Offering Price and Redemption Price per Share............. $ 17.41 $ 14.20 $ 10.52 $ 18.27 $ 11.66 ============ ============== =========== ============ =========== LAUDUS LAUDUS ROSENBERG ROSENBERG GLOBAL VALUE LONG/SHORT LONG/SHORT EQUITY EQUITY FUND FUND ------------ ------------ ASSETS: Total Investments, at cost (1).......... $27,953,865 $161,461,360 =========== ============ Total Investments, at value (1)......... $26,403,940 $173,440,653 Repurchase agreements, at amortized cost................................... 5,247,139 16,673,722 ----------- ------------ Total Investments...................... 31,651,079 190,114,375 ----------- ------------ Deposits with broker and custodian bank for securities sold short.............. 17,684,553 166,801,866 Cash.................................... -- -- Foreign currency, at value (2).......... 6,407,313 -- Unrealized gain on foreign currency contracts.............................. 178,899 -- Dividends and interest receivable....... 66,474 352,971 Receivable for securities sold short.... 1,908,434 2,242,970 Receivable for investments sold......... 432,845 4,935,447 Reclaims receivable..................... 10,264 -- Receivable from Manager................. -- -- Prepaid expenses........................ 14,373 28,075 ----------- ------------ Total Assets........................... 58,354,234 364,475,704 ----------- ------------ LIABILITIES: Securities sold short, proceeds......... $25,831,833 $166,267,628 =========== ============ Securities sold short................... 26,597,065 168,304,959 Unrealized loss on foreign currency contracts.............................. 1,754 -- Payable to custodian.................... -- -- Payable for investments purchased....... 1,608,747 5,367,356 Payable to cover securities sold short.. 370,088 3,028,409 Payable for return of collateral received for securities loaned......... -- -- Accrued expenses and other liabilities: Manager fees........................... 12,458 216,690 Administrator and fund accounting fees................................... 9,169 14,236 Transfer agent fees.................... 2,714 6,585 Trustee fees........................... 300 2,200 Trustee Retirement Plan................ 1,700 11,400 Distribution fees and shareholder service fees........................... 1,533 8,688 Other accrued expenses................. 62,392 344,835 ----------- ------------ Total Liabilities...................... 28,667,920 177,305,358 ----------- ------------ Net Assets.............................. $29,686,314 $187,170,346 =========== ============ NET ASSETS CONSIST OF: Capital................................. $28,153,124 $218,936,930 Undistributed net investment income/(loss).......................... 8,014 777,202 Accumulated net realized gains/(losses) on investments......................... (1,491,448) (59,159,470) Net unrealized appreciation/(depreciation) on investments............................ 3,016,624 26,615,684 ----------- ------------ Net Assets.............................. $29,686,314 $187,170,346 =========== ============ INSTITUTIONAL SHARES: Net Assets.............................. $21,555,891 $144,041,356 Shares Outstanding...................... 1,770,045 13,588,943 Net Asset Value, Offering Price and Redemption Price per Share............. $ 12.18 $ 10.60 =========== ============ ADVISER SHARES: Net Assets.............................. $ -- $ -- Shares Outstanding...................... -- -- Net Asset Value, Offering Price and Redemption Price per Share............. $ -- $ -- =========== ============ INVESTOR SHARES: Net Assets.............................. $ 8,130,423 $ 43,128,990 Shares Outstanding...................... 676,242 4,116,007 Net Asset Value, Offering Price and Redemption Price per Share............. $ 12.02 $ 10.48 =========== ============
Laudus Trust Semi-Annual Report 123 See the accompanying notes to the financial statements. Financial Statements Statements of Operations for the six months ended 9/30/05 (Unaudited)
LAUDUS LAUDUS LAUDUS ROSENBERG ROSENBERG ROSENBERG U.S. LARGE U.S. LARGE U.S. LARGE CAPITALIZATION CAPITALIZATION CAPITALIZATION GROWTH VALUE FUND FUND FUND* -------------- -------------- -------------- INVESTMENT INCOME: Dividends(1)........................... $ 348,481 $ 53,827 $ 49,486 Interest............................... 3,252 5,748 957 Securities lending..................... -- -- -- ---------- -------- -------- Total investment income................ 351,733 59,575 50,443 ---------- -------- -------- EXPENSES: Manager fees........................... 159,715 38,665 17,337 Administration fees.................... 11,845 2,805 1,245 Distribution and shareholder service fees (Investor Shares)................. 4,896 2,341 66 Service fees (Adviser Shares).......... -- -- -- Professional fees...................... 3,680 2,246 1,341 Custodian fees......................... 41,590 2,250 20,623 Interest expense....................... -- -- -- Fund accounting fees................... 21,419 30,038 18,267 Registration and filing fees........... 9,318 13,013 96 Transfer agent fees.................... 8,465 9,375 5,205 Trustees' fees......................... 1,195 493 166 Trustee Retirement Plan................ 245 147 36 Dividend expense for securities sold short(1)............................... -- -- -- Recoupment of prior expenses reimbursed by the Manager......................... -- -- -- Other expenses......................... 4,762 2,445 1,053 ---------- -------- -------- Total expenses before waivers/reimbursements................. 267,130 103,818 65,435 Less expenses waived/reimbursed by the Manager................................ (49,343) (49,596) (65,341) ---------- -------- -------- Net expenses........................... 217,787 54,222 94 ---------- -------- -------- NET INVESTMENT INCOME/(LOSS)........... 133,946 5,353 50,349 ---------- -------- -------- REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS Net realized gains/(losses) on securities and foreign currency transactions........................... 2,138,512 1,474 40,121 Net realized gains/(losses) on securities sold short.................. -- -- -- Change in unrealized appreciation/(depreciation) on investments............................ 728,021 745,001 538,957 ---------- -------- -------- NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS.......... 2,866,533 746,475 579,078 ---------- -------- -------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS............................. $3,000,479 $751,828 $629,427 ========== ======== ========
* For the period May 2, 2005 (commencement of operations) through September 30, 2005. (1) Net of foreign withholding tax for Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/Short Equity Fund was $45,395, $878,602 and $10,159, respectively. 124 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statements of Operations (Unaudited) continued
LAUDUS LAUDUS LAUDUS ROSENBERG LAUDUS ROSENBERG ROSENBERG INTERNATIONAL ROSENBERG U.S. SMALL INTERNATIONAL SMALL U.S. DISCOVERY CAPITALIZATION EQUITY CAPITALIZATION FUND FUND FUND FUND -------------- -------------- ------------- -------------- INVESTMENT INCOME: Dividends (1).......................... $ 2,545,280 $ 6,532,282 $ 496,346 $ 9,064,304 Interest............................... 156,932 102,041 13,037 281,087 Securities lending..................... 37,478 309,084 -- 151,356 ----------- ----------- ---------- ----------- Total investment income................ 2,739,690 6,943,407 509,383 9,496,747 ----------- ----------- ---------- ----------- EXPENSES: Manager fees........................... 2,001,038 5,592,087 123,334 3,531,600 Administration fees.................... 121,460 344,435 8,027 197,388 Distribution and shareholder service fees (Investor Shares)................. 166,236 366,783 15,298 516,174 Service fees (Adviser Shares).......... -- 44,611 -- -- Professional fees...................... 58,918 123,603 3,324 83,809 Custodian fees......................... 183,806 180,581 111,670 758,526 Interest expense....................... -- -- -- -- Fund accounting fees................... 29,260 23,104 49,922 84,054 Registration and filing fees........... 11,719 26,985 11,232 38,962 Transfer agent fees.................... 93,084 200,740 15,240 270,571 Trustees' fees......................... 16,325 38,999 969 24,404 Trustee Retirement Plan................ 4,244 9,058 215 5,978 Dividend expense for securities sold short (1).............................. -- -- -- -- Recoupment of prior expenses reimbursed by the Manger.......................... 7,083 -- -- 202,708 Other expenses......................... 68,325 176,116 4,102 104,427 ----------- ----------- ---------- ----------- Total expenses before waivers/reimbursements................ 2,761,497 7,127,102 343,333 5,818,601 Less expenses waived/reimbursed/recouped by the Manager............................... -- -- (125,397) -- ----------- ----------- ---------- ----------- Net expenses........................... 2,761,497 7,127,102 217,936 5,818,601 ----------- ----------- ---------- ----------- Net investment income/(loss)........... (21,807) (183,695) 291,447 3,678,146 ----------- ----------- ---------- ----------- REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS Net realized gains/(losses) on securities and foreign currency transactions........................... 16,984,384 78,621,985 1,055,563 29,118,295 Net realized gains/(losses) on securities sold short.................. -- -- -- -- Change in unrealized appreciation/(depreciation) on investments............................ 25,002,421 2,833,986 1,369,318 39,325,144 ----------- ----------- ---------- ----------- Net realized and unrealized gains/(losses) on investments.......... 41,986,805 81,455,971 2,424,881 68,443,439 ----------- ----------- ---------- ----------- Change in Net Assets Resulting from Operations............................. $41,964,998 $81,272,276 $2,716,328 $72,121,585 =========== =========== ========== =========== LAUDUS LAUDUS LAUDUS ROSENBERG ROSENBERG ROSENBERG U.S. LARGE/MID GLOBAL VALUE CAPITALIZATION LONG/SHORT LONG/SHORT LONG/SHORT EQUITY EQUITY EQUITY FUND FUND FUND -------------- ----------- ----------- INVESTMENT INCOME: Dividends (1).......................... $ 148,834 $197,430 $ 1,027,977 Interest............................... 302,165 271,489 2,186,486 Securities lending..................... -- -- -- ---------- ----------- ----------- Total investment income................ 450,999 468,919 3,214,463 ---------- ----------- ----------- EXPENSES: Manager fees........................... 102,775 169,743 1,189,675 Administration fees.................... 5,724 6,227 42,018 Distribution and shareholder service fees (Investor Shares)................. 10,454 7,133 48,365 Service fees (Adviser Shares).......... -- -- -- Professional fees...................... 1,891 2,941 18,161 Custodian fees......................... 5,115 14,170 31,854 Interest expense....................... -- 14,508 -- Fund accounting fees................... 20,357 56,677 31,277 Registration and filing fees........... 9,471 11,081 15,665 Transfer agent fees.................... 11,774 9,483 29,934 Trustees' fees......................... 509 693 5,299 Trustee Retirement Plan................ 127 188 1,269 Dividend expense for securities sold short (1).............................. 133,509 203,747 994,517 Recoupment of prior expenses reimbursed by the Manger.......................... -- -- 6,706 Other expenses......................... 2,536 3,305 22,521 ---------- ----------- ----------- Total expenses before waivers/reimbursements................ 304,242 499,896 2,437,261 Less expenses waived/reimbursed/recouped by the Manager............................... (27,516) (46,717) -- ---------- ----------- ----------- Net expenses........................... 276,726 453,179 2,437,261 ---------- ----------- ----------- Net investment income/(loss)........... 174,273 15,740 777,202 ---------- ----------- ----------- REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS Net realized gains/(losses) on securities and foreign currency transactions........................... 1,536,442 2,305,580 10,105,725 Net realized gains/(losses) on securities sold short.................. (958,352) (1,236,959) (9,057,975) Change in unrealized appreciation/(depreciation) on investments............................ (481,768) 13,239 (76,367) ---------- ----------- ----------- Net realized and unrealized gains/(losses) on investments.......... 96,322 1,081,860 971,383 ---------- ----------- ----------- Change in Net Assets Resulting from Operations............................. $ 270,595 $1,097,600 $ 1,748,585 ========== =========== ===========
Laudus Trust Semi-Annual Report 125 See the accompanying notes to the financial statements. Financial Statements Statements of Changes in Net Assets
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. LARGE CAPITALIZATION U.S. LARGE CAPITALIZATION U.S. LARGE CAPITALIZATION FUND GROWTH FUND VALUE FUND ---------------------------- ---------------------------- ------------------------- SIX MONTHS SIX MONTHS FOR THE PERIOD ENDED YEAR ENDED ENDED YEAR ENDED ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, 2005 2005 2005 2005 2005* ------------- ----------- ------------- ----------- ------------------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment income/(loss)......... $ 133,946 $ 428,197 $ 5,353 $ 29,497 $ 50,349 Net realized gains/(losses) from investments.......................... 2,138,512 2,535,289 1,474 (125,007) 40,121 Change in unrealized appreciation/(depreciation) from investments.......................... 728,021 1,367,953 745,001 322,230 538,957 ------------- ----------- ----------- ----------- ---------- Change in net assets resulting from operations........................... 3,000,479 4,331,439 751,828 226,720 629,427 ------------- ----------- ----------- ----------- ---------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares............................... -- (377,788) -- (24,040) -- Adviser Shares....................... -- -- -- -- -- Investor Shares...................... -- (7,542) -- (4,158) -- ------------- ----------- ----------- ----------- ---------- -- (385,330) -- (28,198) -- ------------- ----------- ----------- ----------- ---------- Net realized gains on investments Institutional Shares................. -- (343,706) -- -- -- Adviser Shares....................... -- -- -- -- -- Investor Shares...................... -- (9,148) -- -- -- ------------- ----------- ----------- ----------- ---------- -- (352,854) -- -- -- ------------- ----------- ----------- ----------- ---------- Change in net assets resulting from distributions........................ -- (738,184) -- (28,198) -- ------------- ----------- ----------- ----------- ---------- CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares................. 3,190,637 2,968,344 9,174,547 4,317,988 5,256,020 Adviser Shares....................... -- -- -- -- -- Investor Shares...................... 3,735,647 2,321,290 117,813 1,084,265 137,158 ------------- ----------- ----------- ----------- ---------- 6,926,284 5,289,634 9,292,360 5,402,253 5,393,178 ------------- ----------- ----------- ----------- ---------- Distributions reinvested Institutional Shares................. -- 521,743 -- 4,821 -- Adviser Shares....................... -- -- -- -- -- Investor Shares...................... -- 16,117 -- 4,144 -- ------------- ----------- ----------- ----------- ---------- -- 537,860 -- 8,965 -- ------------- ----------- ----------- ----------- ---------- Value of shares redeemed Institutional Shares(1).............. (18,354,285) (6,720,579) (25,606) (4,415,905) -- Adviser Shares....................... -- -- -- -- -- Investor Shares...................... (533,044) (246,026) (237,032) (729,570) (41,406) ------------- ----------- ----------- ----------- ---------- (18,887,329) (6,966,605) (262,638) (5,145,475) (41,406) ------------- ----------- ----------- ----------- ---------- Change in net assets from capital transactions......................... (11,961,045) (1,139,111) 9,029,722 265,743 5,351,772 ------------- ----------- ----------- ----------- ---------- Change in net assets.................. (8,960,566) 2,454,144 9,781,550 464,265 5,981,199 NET ASSETS: Beginning of period.................. 47,345,189 44,891,045 6,949,401 6,485,136 -- ------------- ----------- ----------- ----------- ---------- End of period........................ $ 38,384,623 $47,345,189 $16,730,951 $6,949,401 $5,981,199 ============= =========== =========== =========== ========== Undistributed net investment income/(loss)........................ $ 240,470 $ 106,524 $ 10,074 $ 4,721 $ 50,349 ============= =========== =========== =========== ==========
* For the period May 2, 2005 (commencement of operations) through September 30, 2005. (1) Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Discovery Fund included $37,419,391 for shares redeemed in-kind during the six months ended September 30, 2005. 126 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. DISCOVERY FUND U.S. SMALL CAPITALIZATION FUND ------------------------------ --------------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, 2005 2005 2005 2005 ------------- ------------ -------------- -------------- (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment income/(loss)........... $ (21,807) $ 341,670 $(183,695) $ 1,445,360 Net realized gains/(losses) from investments............................ 16,984,384 2,091,732 78,621,985 150,828,583 Change in unrealized appreciation/(depreciation) from investments............................ 25,002,421 16,673,803 2,833,986 (36,465,193) ------------ ------------ -------------- -------------- Change in net assets resulting from operations............................. 41,964,998 19,107,205 81,272,276 115,808,750 ------------ ------------ -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares................... -- (497,171) -- (2,204,683) Adviser Shares......................... -- -- -- -- Investor Shares........................ -- (25,025) -- -- ------------ ------------ -------------- -------------- -- (522,196) -- (2,204,683) ------------ ------------ -------------- -------------- Net realized gains on investments Institutional Shares................... -- (2,267,336) -- (107,378,123) Adviser Shares......................... -- -- -- (4,547,584) Investor Shares........................ -- (191,970) -- (32,261,234) ------------ ------------ -------------- -------------- -- (2,459,306) -- (144,186,941) ------------ ------------ -------------- -------------- Change in net assets resulting from distributions.......................... -- (2,981,502) -- (146,391,624) ------------ ------------ -------------- -------------- CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares................... 226,723,619 155,501,124 56,554,878 153,900,191 Adviser Shares......................... -- -- 3,250,795 6,390,720 Investor Shares........................ 135,659,510 57,871,754 22,041,919 67,774,260 ------------ ------------ -------------- -------------- 362,383,129 213,372,878 81,847,592 228,065,171 ------------ ------------ -------------- -------------- Distributions reinvested Institutional Shares................... -- 2,763,979 -- 105,539,726 Adviser Shares......................... -- -- -- 3,355,703 Investor Shares........................ -- 216,323 -- 28,286,080 ------------ ------------ -------------- -------------- -- 2,980,302 -- 137,181,509 ------------ ------------ -------------- -------------- Value of shares redeemed Institutional Shares(1)................ (67,943,560) (15,094,664) (161,190,264) (243,438,336) Adviser Shares......................... -- -- (5,943,343) (11,572,652) Investor Shares........................ (13,806,801) (3,313,776) (34,708,484) (63,211,612) ------------ ------------ -------------- -------------- (81,750,361) (18,408,440) (201,842,091) (318,222,600) ------------ ------------ -------------- -------------- Change in net assets from capital transactions........................... 280,632,768 197,944,740 (119,994,499) 47,024,080 ------------ ------------ -------------- -------------- Change in net assets.................... 322,597,766 214,070,443 (38,722,223) 16,441,206 NET ASSETS: Beginning of period.................... 314,728,381 100,657,938 1,287,255,993 1,270,814,787 ------------ ------------ -------------- -------------- End of period.......................... $637,326,147 $314,728,381 $1,248,533,770 $1,287,255,993 ============ ============ ============== ============== Undistributed net investment income/(loss).......................... $ (21,807) $ -- $(183,695) $ -- ============ ============ ============== ============== LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND ------------------------------ SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2005 2005 ------------- ------------ (UNAUDITED) OPERATIONS: Net investment income/(loss)........... $ 291,447 $ 151,794 Net realized gains/(losses) from investments............................ 1,055,563 1,113,542 Change in unrealized appreciation/(depreciation) from investments............................ 1,369,318 1,376,163 ----------- ------------ Change in net assets resulting from operations............................. 2,716,328 2,641,499 ----------- ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares................... -- (69,286) Adviser Shares......................... -- -- Investor Shares........................ -- (20,846) ----------- ------------ -- (90,132) ----------- ------------ Net realized gains on investments Institutional Shares................... -- -- Adviser Shares......................... -- -- Investor Shares........................ -- -- ----------- ------------ -- -- ----------- ------------ Change in net assets resulting from distributions.......................... -- (90,132) ----------- ------------ CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares................... 1,019,603 13,795,042 Adviser Shares......................... -- -- Investor Shares........................ 1,915,764 11,035,677 ----------- ------------ 2,935,367 24,830,719 ----------- ------------ Distributions reinvested Institutional Shares................... -- 69,286 Adviser Shares......................... -- -- Investor Shares........................ -- 20,846 ----------- ------------ -- 90,132 ----------- ------------ Value of shares redeemed Institutional Shares(1)................ (334,945) (9,404,551) Adviser Shares......................... -- -- Investor Shares........................ (2,843,070) (2,277,154) ----------- ------------ (3,178,015) (11,681,705) ----------- ------------ Change in net assets from capital transactions........................... (242,648) 13,239,146 ----------- ------------ Change in net assets.................... 2,473,680 15,790,513 NET ASSETS: Beginning of period.................... 28,585,195 12,794,682 ----------- ------------ End of period.......................... $31,058,875 $ 28,585,195 =========== ============ Undistributed net investment income/(loss).......................... $ 338,866 $ 47,419 =========== ============
Laudus Trust Semi-Annual Report 127 See the accompanying notes to the financial statements. Financial Statements Statements of Changes in Net Assets continued
LAUDUS ROSENBERG INTERNATIONAL SMALL SIX CAPITALIZATION MONTHS FUND --------------------------------- ENDED SEPTEMBER YEAR ENDED 30, MARCH 31, 2005 2005 ---------------- ------------- (UNAUDITED) OPERATIONS: Net investment income/(loss)........... $ 3,678,146 $ 877,750 Net realized gains/(losses) from investments............................ 29,118,295 18,811,743 Change in unrealized appreciation/(depreciation) from investments............................ 39,325,144 49,970,266 ------------- ------------- Change in net assets resulting from operations............................. 72,121,585 69,659,759 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares................... -- (391,031) Adviser Shares......................... -- -- Investor Shares........................ -- (208,630) ------------- ------------- -- (599,661) ------------- ------------- Net realized gains on investments Institutional Shares................... -- (5,437,032) Adviser Shares......................... -- -- Investor Shares........................ -- (6,811,538) ------------- ------------- -- (12,248,570) ------------- ------------- Change in net assets resulting from distributions.......................... -- (12,848,231) ------------- ------------- CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares................... 123,549,813 211,092,897 Adviser Shares......................... -- -- Investor Shares........................ 253,935,079 317,506,524 ------------- ------------- 377,484,892 528,599,421 ------------- ------------- Distributions reinvested Institutional Shares................... -- 5,659,036 Adviser Shares......................... -- -- Investor Shares........................ -- 6,658,840 ------------- ------------- -- 12,317,876 ------------- ------------- Value of shares redeemed Institutional Shares................... (75,289,115) (41,730,026) Adviser Shares......................... -- -- Investor Shares........................ (123,442,605) (82,747,971) ------------- ------------- (198,731,720) (124,477,997) ------------- ------------- Change in net assets from capital transactions........................... 178,753,172 416,439,300 ------------- ------------- Change in net assets.................... 250,874,757 473,250,828 NET ASSETS: Beginning of period.................... 626,412,187 153,161,359 ------------- ------------- End of period.......................... $ 877,286,944 $ 626,412,187 ============= ============= Undistributed net investment income/(loss).......................... $ 4,218,988 $ 540,842 ============= =============
128 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND --------------------------------- SIX SIX LAUDUS ROSENBERG MONTHS MONTHS GLOBAL LONG/SHORT EQUITY FUND --------------------------------- ENDED ENDED SEPTEMBER YEAR ENDED SEPTEMBER YEAR ENDED 30, MARCH 31, 30, MARCH 31, 2005 2005 2005 2005 --------------- --------------- --------------- --------------- (UNAUDITED) (UNAUDITED) OPERATIONS: Net investment income/(loss)........... $ 174,273 $ (54,057) $ 15,740 $ (229,788) Net realized gains/(losses) from investments............................ 578,090 (56,359) 1,068,621 (199,801) Change in unrealized appreciation/(depreciation) from investments............................ (481,768) 1,367,755 13,239 835,304 ----------- ------------ ----------- ----------- Change in net assets resulting from operations............................. 270,595 1,257,339 1,097,600 405,715 ----------- ------------ ----------- ----------- DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares................... -- -- -- -- Adviser Shares......................... -- -- -- -- Investor Shares........................ -- -- -- -- ----------- ------------ ----------- ----------- -- -- -- -- ----------- ------------ ----------- ----------- Net realized gains on investments Institutional Shares................... -- -- -- -- Adviser Shares......................... -- -- -- -- Investor Shares........................ -- -- -- -- ----------- ------------ ----------- ----------- -- -- -- -- ----------- ------------ ----------- ----------- Change in net assets resulting from distributions.......................... -- -- -- -- ----------- ------------ ----------- ----------- CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares................... 1,300,343 1,739,704 6,588,636 4,768,663 Adviser Shares......................... -- -- -- -- Investor Shares........................ 1,711,682 9,325,305 5,043,156 3,302,678 ----------- ------------ ----------- ----------- 3,012,025 11,065,009 11,631,792 8,071,341 ----------- ------------ ----------- ----------- Distributions reinvested Institutional Shares................... -- -- -- -- Adviser Shares......................... -- -- -- -- Investor Shares........................ -- -- -- -- ----------- ------------ ----------- ----------- -- -- -- -- ----------- ------------ ----------- ----------- Value of shares redeemed Institutional Shares................... (986,169) (10,458,623) (1,019,096) (2,528,093) Adviser Shares......................... -- -- -- -- Investor Shares........................ (7,346,366) (5,824,603) (3,257,401) (5,776,482) ----------- ------------ ----------- ----------- (8,332,535) (16,283,226) (4,276,497) (8,304,575) ----------- ------------ ----------- ----------- Change in net assets from capital transactions........................... (5,320,510) (5,218,217) 7,355,295 (233,234) ----------- ------------ ----------- ----------- Change in net assets.................... (5,049,915) (3,960,878) 8,452,895 172,481 NET ASSETS: Beginning of period.................... 25,135,987 29,096,865 21,233,419 21,060,938 ----------- ------------ ----------- ----------- End of period.......................... $20,086,072 $ 25,135,987 $29,686,314 $21,233,419 =========== ============ =========== =========== Undistributed net investment income/(loss).......................... $ 174,273 $ -- $ 8,014 $ (7,726) =========== ============ =========== =========== LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND --------------------------------- SIX MONTHS ENDED SEPTEMBER YEAR ENDED 30, MARCH 31, 2005 2005 --------------- --------------- (UNAUDITED) OPERATIONS: Net investment income/(loss)........... $ 777,202 $ (379,955) Net realized gains/(losses) from investments............................ 1,047,750 7,809,175 Change in unrealized appreciation/(depreciation) from investments............................ (76,367) (941,013) ------------ ------------ Change in net assets resulting from operations............................. 1,748,585 6,488,207 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional Shares................... -- -- Adviser Shares......................... -- -- Investor Shares........................ -- -- ------------ ------------ -- -- ------------ ------------ Net realized gains on investments Institutional Shares................... -- -- Adviser Shares......................... -- -- Investor Shares........................ -- -- ------------ ------------ -- -- ------------ ------------ Change in net assets resulting from distributions.......................... -- -- ------------ ------------ CAPITAL TRANSACTIONS: Proceeds from shares issued Institutional Shares................... 47,959,357 55,855,567 Adviser Shares......................... -- -- Investor Shares........................ 18,917,949 27,679,659 ------------ ------------ 66,877,306 83,535,226 ------------ ------------ Distributions reinvested Institutional Shares................... -- -- Adviser Shares......................... -- -- Investor Shares........................ -- -- ------------ ------------ -- -- ------------ ------------ Value of shares redeemed Institutional Shares................... (8,341,586) (53,731,082) Adviser Shares......................... -- -- Investor Shares........................ (11,017,833) (28,010,140) ------------ ------------ (19,359,419) (81,741,222) ------------ ------------ Change in net assets from capital transactions........................... 47,517,887 1,794,004 ------------ ------------ Change in net assets.................... 49,266,472 8,282,211 NET ASSETS: Beginning of period.................... 137,903,874 129,621,663 ------------ ------------ End of period.......................... $187,170,346 $137,903,874 ============ ============ Undistributed net investment income/(loss).......................... $ 777,202 $ -- ============ ============
Laudus Trust Semi-Annual Report 129 See the accompanying notes to the financial statements. Financial Statements Statements of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. LARGE U.S. LARGE U.S. LARGE CAPITALIZATION CAPITALIZATION GROWTH CAPITALIZATION VALUE FUND FUND FUND ------------------------------ ------------------------------ -------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED PERIOD ENDED SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, 2005 2005 2005 2005 2005* ---------------- ---------- ---------------- ---------- -------------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) SHARES SOLD: Institutional......................... 270,265 273,900 1,078,398 527,132 524,430 Adviser............................... -- -- -- -- -- Investor.............................. 305,873 202,406 13,895 137,256 12,838 ---------- -------- --------- -------- ------- 576,138 476,306 1,092,293 664,388 537,268 ---------- -------- --------- -------- ------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional......................... -- 45,290 -- 590 -- Adviser............................... -- -- -- -- -- Investor.............................. -- 1,394 -- 502 -- ---------- -------- --------- -------- ------- -- 46,684 -- 1,092 -- ---------- -------- --------- -------- ------- SHARES REDEEMED: Institutional(1)...................... (1,515,041) (597,178) (3,142) (540,385) -- Adviser............................... -- -- -- -- -- Investor.............................. (44,750) (21,732) (28,489) (92,319) (3,776) ---------- -------- --------- -------- ------- (1,559,791) (618,910) (31,631) (632,704) (3,776) ---------- -------- --------- -------- ------- NET INCREASE/(DECREASE): Institutional......................... (1,244,776) (277,988) 1,075,256 (12,663) 524,430 Adviser............................... -- -- -- -- -- Investor.............................. 261,123 182,068 (14,594) 45,439 9,062 ---------- -------- --------- -------- ------- (983,653) (95,920) 1,060,662 32,776 533,492 ========== ======== ========= ======== =======
* For the period May 2, 2005 (commencement of operations) through September 30, 2005. 1 Amounts for the Institutional Shares of the Laudus Rosenberg U.S. Discovery Fund included 2,459,060 shares redeemed in-kind during the six months ended September 30, 2005. 130 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Statements of Changes in Net Assets continued
LAUDUS ROSENBERG LAUDUS ROSENBERG U.S. U.S. SMALL DISCOVERY FUND CAPITALIZATION FUND ------------------------------------- ------------------------------------- SIX SIX MONTHS YEAR MONTHS YEAR ENDED ENDED ENDED ENDED SEPTEMBER MARCH SEPTEMBER MARCH 30, 31, 30, 31, 2005 2005 2005 2005 ------------------- ------------- ------------------- ------------- (UNAUDITED) (UNAUDITED) SHARES SOLD: Institutional.......................... 13,457,983 10,223,633 4,132,376 11,285,927 Adviser................................ -- -- 242,908 474,733 Investor............................... 8,377,926 3,695,403 1,635,193 5,051,312 ---------- ---------- ----------- ----------- 21,835,909 13,919,036 6,010,477 16,811,972 ---------- ---------- ----------- ----------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................... -- 175,938 -- 7,783,166 Adviser................................ -- -- -- 249,495 Investor............................... -- 13,823 -- 2,114,057 ---------- ---------- ----------- ----------- -- 189,761 -- 10,146,718 ---------- ---------- ----------- ----------- SHARES REDEEMED: Institutional(1)....................... (4,282,991) (1,002,866) (11,866,944) (17,904,388) Adviser................................ -- -- (442,854) (866,952) Investor............................... (833,928) (215,766) (2,572,303) (4,729,392) ---------- ---------- ----------- ----------- (5,116,919) (1,218,632) (14,882,101) (23,500,732) ---------- ---------- ----------- ----------- NET INCREASE/(DECREASE): Institutional.......................... 9,174,992 9,396,705 (7,734,568) 1,164,705 Adviser................................ -- -- (199,946) (142,724) Investor............................... 7,543,998 3,493,460 (937,110) 2,435,977 ---------- ---------- ----------- ----------- 16,718,990 12,890,165 (8,871,624) 3,457,958 ========== ========== =========== =========== LAUDUS ROSENBERG INTERNATIONAL EQUITY FUND ------------------------------------- SIX MONTHS YEAR ENDED ENDED SEPTEMBER MARCH 30, 31, 2005 2005 ------------------- ------------- (UNAUDITED) SHARES SOLD: Institutional.......................... 107,002 1,559,874 Adviser................................ -- -- Investor............................... 198,537 1,213,144 -------- ---------- 305,539 2,773,018 -------- ---------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................... -- 7,574 Adviser................................ -- -- Investor............................... -- 2,271 -------- ---------- -- 9,818 -------- ---------- SHARES REDEEMED: Institutional(1)....................... (34,299) (1,067,184) Adviser................................ -- -- Investor............................... (295,420) (256,233) -------- ---------- (329,719) (1,323,417) -------- ---------- NET INCREASE/(DECREASE): Institutional.......................... 72,703 500,237 Adviser................................ -- -- Investor............................... (96,883) 959,182 -------- ---------- (24,180) 1,459,419 ======== ==========
Laudus Trust Semi-Annual Report 131 See the accompanying notes to the financial statements. Financial Statements Statements of Changes in Net Assets continued
LAUDUS ROSENBERG INTERNATIONAL SMALL CAPITALIZATION FUND ------------------------------ SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, MARCH 31, 2005 2005 ---------------- ---------- (UNAUDITED) SHARES SOLD: Institutional.......................... 7,240,209 13,305,599 Adviser................................ -- -- Investor............................... 15,095,364 20,410,262 ----------- ---------- 22,335,573 33,715,861 ----------- ---------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................... -- 375,019 Adviser................................ -- -- Investor............................... -- 445,110 ----------- ---------- -- 820,129 ----------- ---------- SHARES REDEEMED: Institutional.......................... (4,340,265) (2,707,597) Adviser................................ -- -- Investor............................... (7,479,197) (5,580,312) ----------- ---------- (11,819,462) (8,287,909) ----------- ---------- NET INCREASE/(DECREASE): Institutional.......................... 2,899,944 10,973,021 Adviser................................ -- -- Investor............................... 7,616,167 15,275,060 ----------- ---------- 10,516,111 26,248,081 =========== ==========
* For the period May 2, 2005 (commencement of operations) through September 30, 2005. 132 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Statements of Changes in Net Assets continued
LAUDUS ROSENBERG U.S. LARGE/MID LAUDUS ROSENBERG CAPITALIZATION GLOBAL LONG/SHORT EQUITY FUND LONG/SHORT EQUITY FUND ------------------------------------- ------------------------------------- SIX SIX MONTHS YEAR MONTHS YEAR ENDED ENDED ENDED ENDED SEPTEMBER MARCH SEPTEMBER MARCH 30, 31, 30, 31, 2005 2005 2005 2005 ------------------- ------------- ------------------- ------------- (UNAUDITED) (UNAUDITED) SHARES SOLD: Institutional.......................... 113,965 161,528 554,435 422,609 Adviser................................ -- -- -- -- Investor............................... 149,597 860,959 430,855 293,687 -------- ---------- -------- -------- 263,562 1,022,487 985,290 716,296 -------- ---------- -------- -------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................... -- -- -- -- Adviser................................ -- -- -- -- Investor............................... -- -- -- -- -------- ---------- -------- -------- -- -- -- -- -------- ---------- -------- -------- SHARES REDEEMED: Institutional.......................... (86,848) (973,807) (87,513) (228,087) Adviser................................ -- -- -- -- Investor............................... (649,136) (542,390) (285,044) (524,213) -------- ---------- -------- -------- (735,984) (1,516,197) (372,557) (752,300) -------- ---------- -------- -------- NET INCREASE/(DECREASE): Institutional.......................... 27,117 (812,279) 466,922 194,522 Adviser................................ -- -- -- -- Investor............................... (499,539) 318,569 145,811 (230,526) -------- ---------- -------- -------- (472,422) (493,710) 612,733 (36,004) ======== ========== ======== ======== LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND ------------------------------------- SIX MONTHS YEAR ENDED ENDED SEPTEMBER MARCH 30, 31, 2005 2005 ------------------- ------------- (UNAUDITED) SHARES SOLD: Institutional.......................... 4,590,488 5,516,270 Adviser................................ -- -- Investor............................... 1,832,614 2,748,797 ---------- ---------- 6,423,102 8,265,067 ---------- ---------- ISSUED UPON REINVESTMENT OF DISTRIBUTIONS: Institutional.......................... -- -- Adviser................................ -- -- Investor............................... -- -- ---------- ---------- -- -- ---------- ---------- SHARES REDEEMED: Institutional.......................... (798,401) (5,394,490) Adviser................................ -- -- Investor............................... (1,072,907) (2,867,557) ---------- ---------- (1,871,308) (8,262,047) ---------- ---------- NET INCREASE/(DECREASE): Institutional.......................... 3,792,087 121,780 Adviser................................ -- -- Investor............................... 759,707 (118,760) ---------- ---------- 4,551,794 3,020 ========== ==========
Laudus Trust Semi-Annual Report 133 See the accompanying notes to the financial statements. Financial Statements Financial Highlights as of 9/30/05
INVESTMENT ACTIVITIES LESS DIVIDENDS FROM ------------------------------------------- ------------------------ NET REALIZED NET NET ASSET AND UNREALIZED TOTAL REALIZED VALUE, NET GAINS FROM NET GAINS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT INVESTMENT ON TOTAL OF PERIOD INCOME/(LOSS) INVESTMENTS ACTIVITIES INCOME INVESTMENTS DIVIDENDS --------- ------------- -------------- ---------- ---------- ----------- --------- INSTITUTIONAL SHARES U.S. LARGE CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............... $11.79 $ 0.04(6) $ 0.83 $ 0.87 $ -- $ -- $ -- For the Year Ended March 31, 2005........................... 10.92 0.11(6) 0.94 1.05 (0.09) (0.09) (0.18) For the Year Ended March 31, 2004........................... 8.28 0.06(6) 2.62 2.68 (0.04) -- (0.04) June 19, 2002 to March 31, 2003 (1)............................ 10.00 0.05(6) (1.73) (1.68) (0.04) -- (0.04) U.S. LARGE CAPITALIZATION GROWTH FUND Six months ended September 30, 2005 (Unaudited)............... 8.07 0.01(6) 0.63 0.64 -- -- -- For the Year Ended March 31, 2005........................... 7.84 0.04(6) 0.23 0.27 (0.04) -- (0.04) For the Year Ended March 31, 2004........................... 5.95 0.06(6) 1.89 1.95 (0.06) -- (0.06) For the Year Ended March 31, 2003........................... 7.77 0.07(6) (1.83) (1.76) (0.06) -- (0.06) For the Year Ended March 31, 2002........................... 7.70 0.06 0.07 0.13 (0.06) -- (0.06) June 7, 2000 to March 31, 2001 (1)............................ 10.00 0.04 (2.31) (2.27) (0.03) -- (0.03) U.S. LARGE CAPITALIZATION VALUE FUND Period ended September 30, 2005 (Unaudited)*................... 10.00 0.10(6) 1.11 1.21 -- -- -- U.S. DISCOVERY FUND Six months ended September 30, 2005 (Unaudited)............... 15.96 0.01(6) 1.55 1.56 -- -- -- For the Year Ended March 31, 2005........................... 14.71 0.03(6) 1.44 1.47 (0.04) (0.18) (0.22) For the Year Ended March 31, 2004........................... 9.55 0.06(6) 5.26 5.32 (0.04) (0.12) (0.16) For the Year Ended March 31, 2003........................... 11.10 0.04(6) (1.57) (1.53) (0.02) -- (0.02) September 4, 2001 to March 31, 2002 (1)....................... 10.00 0.02 1.10 1.12 (0.02) -- (0.02) U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............... 13.50 0.00(6)(7) 0.95 0.95 -- -- -- For the Year Ended March 31, 2005........................... 13.82 0.03(6) 1.27 1.30 (0.03) (1.59) (1.62) For the Year Ended March 31, 2004........................... 8.98 0.05 5.03 5.08 (0.04) (0.20) (0.24) For the Year Ended March 31, 2003........................... 11.18 0.03(6) (1.93) (1.90) (0.03) (0.27) (0.30) For the Year Ended March 31, 2002........................... 9.57 0.03(6) 2.17 2.20 (0.04) (0.55) (0.59) For the Year Ended March 31, 2001........................... 10.06 0.03(6) (0.16) (0.13) (0.03) (0.33) (0.36) INTERNATIONAL EQUITY FUND Six months ended September 30, 2005 (Unaudited)............... 9.63 0.10(6) 0.82 0.92 -- -- -- For the Year Ended March 31, 2005........................... 8.46 0.09(6) 1.12 1.21 (0.04) -- (0.04) For the Year Ended March 31, 2004........................... 5.56 0.08(6) 2.90 2.98 (0.08) -- (0.08) For the Year Ended March 31, 2003........................... 7.09 0.08(6) (1.55) (1.47) (0.07) -- (0.07) For the Year Ended March 31, 2002........................... 8.14 0.07(6) (0.76) (0.69) (0.36) -- (0.36) June 7, 2000 to March 31, 2001 (1)............................ 10.00 0.28 (2.14) (1.86) -- -- -- INTERNATIONAL SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............... 16.89 0.11(6) 1.48 1.59 -- -- -- For the Year Ended March 31, 2005........................... 13.94 0.08(6) 3.53 3.61 (0.04) (0.62) (0.66) For the Year Ended March 31, 2004........................... 7.92 0.07(6) 6.04 6.11 (0.09) -- (0.09) For the Year Ended March 31, 2003........................... 8.48 0.09(6) (0.56) (0.47) (0.11) -- (0.11) For the Year Ended March 31, 2002........................... 9.13 0.15(6) (0.61) (0.46) (0.19) --(7) (0.19) For the Year Ended March 31, 2001........................... 11.81 0.11 (1.28) (1.17) (0.16) (1.35) (1.51) U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............... 11.44 0.11(6) 0.10 0.21 -- -- -- For the Year Ended March 31, 2005........................... 10.80 (0.01)(6) 0.65 0.64 -- -- -- For the Year Ended March 31, 2004........................... 11.51 (0.06)(6) (0.65) (0.71) -- -- -- For the Year Ended March 31, 2003........................... 10.22 --(6),(7) 1.31 1.31 (0.03) -- (0.03) For the Year Ended March 31, 2002........................... 9.61 0.18(6) 0.69 0.87 (0.26) -- (0.26) For the Year Ended March 31, 2001........................... 11.05 0.53(6) (1.12) (0.59) (0.85) -- (0.85) GLOBAL LONG/SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............... 11.62 0.01(6) 0.55 0.56 -- -- -- For the Year Ended March 31, 2005........................... 11.30 (0.12)(6) 0.44 0.32 -- -- -- For the Year Ended March 31, 2004........................... 11.87 (0.12)(6) (0.45) (0.57) -- -- -- For the Year Ended March 31, 2003........................... 10.15 (0.03)(6) 1.73 1.70 -- -- -- For the Year Ended March 31, 2002........................... 9.43 0.16 0.96 1.12 (0.40) -- (0.40) September 29, 2000 to March 31, 2001 (1)....................... 10.00 0.22 (0.58) (0.36) (0.11) (0.10) (0.21) VALUE LONG/SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............... 10.51 0.06(6) 0.03 0.09 -- -- -- For the Year Ended March 31, 2005........................... 9.87 (0.03)(6) 0.67 0.64 -- -- -- For the Year Ended March 31, 2004........................... 10.48 (0.05)(6) (0.56) (0.61) -- -- -- For the Year Ended March 31, 2003........................... 8.96 (0.02)(6) 1.54 1.52 -- -- -- For the Year Ended March 31, 2002........................... 8.11 0.13(6) 0.94 1.07 (0.22) -- (0.22) For the Year Ended March 31, 2001........................... 7.42 0.34(6) 0.78 1.12 (0.43) -- (0.43)
--------------- * For the period May 2, 2005 (commencement of operations) through September 30, 2005. (1) From commencement of operations. (2) Not annualized for periods less than one year. (3) Annualized for periods less than one year. (4) Includes interest expense and dividend expense on securities sold short. (5) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (6) Calculated based on the average shares outstanding during the period. (7) Amount less than $0.005. (8) Exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short. 134 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Financial Highlights continued
RATIOS/SUPPLEMENTAL DATA ----------------------------- NET NET INVESTMENT NET ASSET ASSETS, INCOME/(LOSS) VALUE, END OF NET OF REDEMPTION END OF TOTAL PERIOD WAIVERS/ FEES PERIOD RETURN(2) (000'S) REIMBURSEMENTS(3) ---------- ----------- ----------- --------- ----------------- INSTITUTIONAL SHARES U.S. Large Capitalization Fund Six months ended September 30, 2005 (Unaudited) $ --(7) $12.66 7.38% $ 32,090 0.66% For the Year Ended March 31, 2005 -- 11.79 9.66 44,559 0.96 For the Year Ended March 31, 2004 --(7) 10.92 32.33 44,301 0.62 June 19, 2002 to March 31, 2003 (1) -- 8.28 (16.78) 14,479 0.80 U.S. LARGE CAPITALIZATION GROWTH FUND Six months ended September 30, 2005 (Unaudited) -- 8.71 7.93 14,820 0.17 For the Year Ended March 31, 2005 --(7) 8.07 3.42 5,056 0.53 For the Year Ended March 31, 2004 --(7) 7.84 32.84 5,006 0.80 For the Year Ended March 31, 2003 -- 5.95 (22.68) 3,418 1.03 For the Year Ended March 31, 2002 -- 7.77 1.69 4,297 0.76 June 7, 2000 to March 31, 2001 (1) -- 7.70 (22.71) 3,910 0.59 U.S. LARGE CAPITALIZATION VALUE FUND Period ended September 30, 2005 (Unaudited)* -- 11.21 12.10 5,880 2.20 U.S. DISCOVERY FUND Six months ended September 30, 2005 (Unaudited) --(7) 17.52 9.77 442,155 0.08 For the Year Ended March 31, 2005 --(7) 15.96 9.98 256,444 0.23 For the Year Ended March 31, 2004 --(7) 14.71 55.90 98,077 0.49 For the Year Ended March 31, 2003 -- 9.55 (13.83) 18,589 0.38 September 4, 2001 to March 31, 2002 (1) -- 11.10 11.25 2,980 0.38 U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited) --(7) 14.45 7.04 902,633 0.06 For the Year Ended March 31, 2005 --(7) 13.50 9.36 948,225 0.20 For the Year Ended March 31, 2004 --(7) 13.82 56.83 954,275 0.45 For the Year Ended March 31, 2003 -- 8.98 (17.10) 487,020 0.33 For the Year Ended March 31, 2002 -- 11.18 23.92 482,205 0.33 For the Year Ended March 31, 2001 -- 9.57 (1.26) 408,148 0.26 INTERNATIONAL EQUITY FUND Six months ended September 30, 2005 (Unaudited) --(7) 10.55 9.55 18,410 2.14 For the Year Ended March 31, 2005 --(7) 9.63 14.36 16,094 0.96 For the Year Ended March 31, 2004 0.01 8.46 53.81 9,914 1.12 For the Year Ended March 31, 2003 0.01 5.56 (20.66) 6,368 1.24 For the Year Ended March 31, 2002 -- 7.09 (8.36) 7,882 0.94 June 7, 2000 to March 31, 2001 (1) -- 8.14 (18.50) 9,071 4.20 INTERNATIONAL SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited) --(7) 18.48 9.41 349,641 1.24 For the Year Ended March 31, 2005 --(7) 16.89 26.52 270,646 0.50 For the Year Ended March 31, 2004 --(7) 13.94 77.37 70,382 0.65 For the Year Ended March 31, 2003 0.02 7.92 (5.36) 20,562 1.09 For the Year Ended March 31, 2002 -- 8.48 (4.80) 28,027 1.71 For the Year Ended March 31, 2001 -- 9.13 (10.78) 41,951 0.99 U.S. LARGE/ MID CAPITALIZATION LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited) --(7) 11.65 1.84 12,864 1.86 For the Year Ended March 31, 2005 --(7) 11.44 5.93 12,312 (0.13) For the Year Ended March 31, 2004 --(7) 10.80 (6.17) 20,404 (0.57) For the Year Ended March 31, 2003 0.01 11.51 12.90 26,736 0.01 For the Year Ended March 31, 2002 -- 10.22 9.20 10,037 1.87 For the Year Ended March 31, 2001 -- 9.61 (4.79) 11,855 5.19 GLOBAL LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited) --(7) 12.18 4.82 21,556 0.24 For the Year Ended March 31, 2005 -- 11.62 2.83 15,140 (1.04) For the Year Ended March 31, 2004 --(7) 11.30 (4.80) 12,527 (1.11) For the Year Ended March 31, 2003 0.02 11.87 16.95 13,491 (0.28) For the Year Ended March 31, 2002 -- 10.15 12.21 10,514 1.67 September 29, 2000 to March 31, 2001 (1) -- 9.43 (3.56) 14,924 4.59 VALUE LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited) --(7) 10.60 0.86 144,041 1.07 For the Year Ended March 31, 2005 --(7) 10.51 6.48 102,974 (0.28) For the Year Ended March 31, 2004 --(7) 9.87 (5.82) 95,541 (0.46) For the Year Ended March 31, 2003 -- 10.48 16.96 92,356 (0.15) For the Year Ended March 31, 2002 -- 8.96 13.53 69,629 1.61 For the Year Ended March 31, 2001 -- 8.11 15.96 61,923 4.56 RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------------------------- EXPENSES EXPENSES BEFORE NET OF EXPENSES PORTFOLIO WAIVERS/ WAIVERS/ NET OF WAIVERS/ TURNOVER REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(8) RATE(5) --------------------- --------------------- --------------------- --------- INSTITUTIONAL SHARES U.S. Large Capitalization Fund Six months ended September 30, 2005 (Unaudited) 1.21% 0.99% 0.99% 61.12% For the Year Ended March 31, 2005 1.23 0.99 0.99 127.89 For the Year Ended March 31, 2004 1.47 1.00 1.00 141.50 June 19, 2002 to March 31, 2003 (1) 2.73 0.99 0.99 100.79 U.S. LARGE CAPITALIZATION GROWTH FUND Six months ended September 30, 2005 (Unaudited) 1.96 0.99 0.99 40.41 For the Year Ended March 31, 2005 2.34 0.99 0.99 77.81 For the Year Ended March 31, 2004 2.59 0.80 0.80 177.43 For the Year Ended March 31, 2003 4.55 0.75 0.75 68.73 For the Year Ended March 31, 2002 3.81 0.75 0.75 111.54 June 7, 2000 to March 31, 2001 (1) 2.90 0.75 0.75 88.81 U.S. LARGE CAPITALIZATION VALUE FUND Period ended September 30, 2005 (Unaudited)* 2.84 0.00 0.00 48.37 U.S. DISCOVERY FUND Six months ended September 30, 2005 (Unaudited) 1.14 1.14 1.14 51.63 For the Year Ended March 31, 2005 1.20 1.14 1.14 62.60 For the Year Ended March 31, 2004 1.46 1.14 1.14 93.08 For the Year Ended March 31, 2003 3.71 1.15 1.15 98.65 September 4, 2001 to March 31, 2002 (1) 9.02 1.15 1.15 78.02 U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited) 1.06 1.06 1.06 37.01 For the Year Ended March 31, 2005 1.09 1.09 1.09 68.09 For the Year Ended March 31, 2004 1.13 1.13 1.13 75.65 For the Year Ended March 31, 2003 1.29 1.15 1.15 70.83 For the Year Ended March 31, 2002 1.29 1.15 1.15 101.08 For the Year Ended March 31, 2001 1.25 1.15 1.15 128.79 INTERNATIONAL EQUITY FUND Six months ended September 30, 2005 (Unaudited) 2.21 1.34 1.34 36.08 For the Year Ended March 31, 2005 2.69 1.34 1.34 52.06 For the Year Ended March 31, 2004 4.32 1.35 1.35 107.02 For the Year Ended March 31, 2003 5.30 1.35 1.35 138.85 For the Year Ended March 31, 2002 4.13 1.35 1.35 132.84 June 7, 2000 to March 31, 2001 (1) 3.48 1.35 1.35 86.18 INTERNATIONAL SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited) 1.42 1.42 1.42 68.12 For the Year Ended March 31, 2005 1.55 1.49 1.49 59.70 For the Year Ended March 31, 2004 1.94 1.47 1.47 102.50 For the Year Ended March 31, 2003 2.60 1.50 1.50 129.34 For the Year Ended March 31, 2002 2.24 1.50 1.50 147.52 For the Year Ended March 31, 2001 1.93 1.50 1.50 148.53 U.S. LARGE/ MID CAPITALIZATION LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited) 2.85 2.57 1.24 85.33 For the Year Ended March 31, 2005 3.23 2.94 1.24 180.14 For the Year Ended March 31, 2004 3.22 2.82 1.25 189.35 For the Year Ended March 31, 2003 3.59 2.67 1.25 185.66 For the Year Ended March 31, 2002 2.84 1.95 1.25 313.22 For the Year Ended March 31, 2001 2.67 2.12 1.25 399.02 GLOBAL LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited) 4.33 3.92 1.99 110.14 For the Year Ended March 31, 2005 4.38 3.82 1.99 152.24 For the Year Ended March 31, 2004 3.69 2.91 1.81 175.85 For the Year Ended March 31, 2003 4.04 2.50 1.50 189.09 For the Year Ended March 31, 2002 3.19 1.93 1.50 231.34 September 29, 2000 to March 31, 2001 (1) 3.19 2.15 1.50 216.10 VALUE LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited) 3.00 3.00 1.74 69.08 For the Year Ended March 31, 2005 3.04 2.98 1.74 111.19 For the Year Ended March 31, 2004 2.88 2.77 1.75 76.36 For the Year Ended March 31, 2003 2.72 2.42 1.74 209.95 For the Year Ended March 31, 2002 2.49 2.18 1.75 126.45 For the Year Ended March 31, 2001 3.05 2.72 1.84 129.80
Laudus Trust Semi-Annual Report 135 See the accompanying notes to the financial statements. Financial Statements Financial Highlights as of 9/30/05
INVESTMENT ACTIVITIES LESS DIVIDENDS FROM ------------------------------------------- ------------------------ NET REALIZED NET NET ASSET AND UNREALIZED TOTAL REALIZED VALUE, NET GAINS FROM NET GAINS BEGINNING INVESTMENT (LOSSES) ON INVESTMENT INVESTMENT ON TOTAL OF PERIOD INCOME/(LOSS) INVESTMENTS ACTIVITIES INCOME INVESTMENTS DIVIDENDS --------- ------------- -------------- ---------- ---------- ----------- --------- ADVISER SHARES U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)................ $13.38 $(0.01)(6) $ 0.93 $ 0.92 $ -- $ -- $ -- For the Year Ended March 31, 2005............................ 13.71 --(6),(7) 1.26 1.26 -- (1.59) (1.59) For the Year Ended March 31, 2004............................ 8.91 0.02 5.00 5.02 (0.02) (0.20) (0.22) For the Year Ended March 31, 2003............................ 11.12 0.01(6) (1.93) (1.92) (0.02) (0.27) (0.29) For the Year Ended March 31, 2002............................ 9.53 --(6) 2.17 2.17 (0.03) (0.55) (0.58) For the Year Ended March 31, 2001............................ 10.02 0.01(6) (0.16) (0.15) (0.01) (0.33) (0.34) INVESTOR SHARES U.S. LARGE CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)................ 11.81 0.02(6) 0.83 0.85 -- -- -- For the Year Ended March 31, 2005............................ 10.96 0.08(6) 0.93 1.01 (0.07) (0.09) (0.16) For the Year Ended March 31, 2004............................ 8.31 0.02(6) 2.63 2.65 -- -- -- July 31, 2002 to March 31, 2003 (1)............................. 8.88 0.05(6) (0.62) (0.57) -- -- -- U.S. LARGE CAPITALIZATION GROWTH FUND Six months ended September 30, 2005 (Unaudited)................ 8.15 (0.01)(6) 0.64 0.63 -- -- -- For the Year Ended March 31, 2005............................ 7.92 0.02(6) 0.23 0.25 (0.02) -- (0.02) August 15, 2003 to March 31, 2004 (1)............................. 6.95 0.09(6) 0.92 1.01 (0.04) -- (0.04) U.S. LARGE CAPITALIZATION VALUE FUND Period ended September 30, 2005 (Unaudited)*.................... 10.00 0.07(6) 1.12 1.19 -- -- -- U.S. DISCOVERY FUND Six months ended September 30, 2005 (Unaudited)................ 15.88 (0.02)(6) 1.55 1.53 -- -- -- For the Year Ended March 31, 2005............................ 14.66 (0.05)(6) 1.47 1.42 (0.02) (0.18) (0.20) For the Year Ended March 31, 2004............................ 9.53 0.01(6) 5.24 5.25 -- (0.12) (0.12) For the Year Ended March 31, 2003............................ 11.08 0.02(6) (1.57) (1.55) -- -- -- October 3, 2001 to March 31, 2002 (1)............................. 9.38 -- 1.72 1.72 (0.02) -- (0.02) U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)................ 13.30 (0.02)(6) 0.92 0.90 -- -- -- For the Year Ended March 31, 2005............................ 13.65 (0.02)(6) 1.26 1.24 -- (1.59) (1.59) For the Year Ended March 31, 2004............................ 8.88 0.01 4.98 4.99 (0.02) (0.20) (0.22) For the Year Ended March 31, 2003............................ 11.08 --(6),(7) (1.92) (1.92) (0.01) (0.27) (0.28) For the Year Ended March 31, 2002............................ 9.50 --(6) 2.15 2.15 (0.02) (0.55) (0.57) For the Year Ended March 31, 2001............................ 10.00 (0.01)(6) (0.14) (0.15) (0.02) (0.33) (0.35) INTERNATIONAL EQUITY FUND Six months ended September 30, 2005 (Unaudited)................ 9.61 0.09(6) 0.82 0.91 -- -- -- For the Year Ended March 31, 2005............................ 8.47 0.06(6) 1.11 1.17 (0.03) -- (0.03) For the Year Ended March 31, 2004............................ 5.57 0.03(6) 2.95 2.98 (0.08) -- (0.08) For the Year Ended March 31, 2003............................ 7.05 0.07(6) (1.54) (1.47) (0.02) -- (0.02) For the Year Ended March 31, 2002............................ 8.13 0.05(6) (0.78) (0.73) (0.35) -- (0.35) December 5, 2000 to March 31, 2001 (1)........................ 8.98 0.27 (1.12) (0.85) -- -- -- INTERNATIONAL SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)................ 16.73 0.07(6) 1.47 1.54 -- -- -- For the Year Ended March 31, 2005............................ 13.83 0.03(6) 3.51 3.54 (0.02) (0.62) (0.64) For the Year Ended March 31, 2004............................ 7.87 0.03(6) 6.01 6.04 (0.08) -- (0.08) For the Year Ended March 31, 2003............................ 8.43 0.08(6) (0.57) (0.49) (0.09) -- (0.09) For the Year Ended March 31, 2002............................ 9.09 0.07(6) (0.55) (0.48) (0.18) --(7) (0.18) For the Year Ended March 31, 2001............................ 11.77 0.08 (1.29) (1.21) (0.12) (1.35) (1.47) U.S. LARGE/MID CAPITALIZATION LONG/SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)................ 11.46 0.08(6) 0.12 0.20 -- -- -- For the Year Ended March 31, 2005............................ 10.86 (0.04)(6) 0.64 0.60 -- -- -- For the Year Ended March 31, 2004............................ 11.61 (0.10)(6) (0.65) (0.75) -- -- -- For the Year Ended March 31, 2003............................ 10.34 (0.05)(6) 1.33 1.28 (0.02) -- (0.02) For the Year Ended March 31, 2002............................ 9.73 0.10(6) 0.76 0.86 (0.25) -- (0.25) For the Year Ended March 31, 2001............................ 10.99 0.50(6) (1.10) (0.60) (0.66) -- (0.66) GLOBAL LONG/SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)................ 11.49 (0.01)(6) 0.54 0.53 -- -- -- For the Year Ended March 31, 2005............................ 11.21 (0.17)(6) 0.43 0.26 -- -- -- For the Year Ended March 31, 2004............................ 11.81 (0.17)(6) (0.43) (0.60) -- -- -- For the Year Ended March 31, 2003............................ 10.13 (0.09)(6) 1.75 1.66 -- -- -- August 23, 2001 to March 31, 2002 (1)............................. 10.19 0.01(6) 0.32 0.33 (0.39) -- (0.39) VALUE LONG/SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)................ 10.41 0.04(6) 0.03 0.07 -- -- -- For the Year Ended March 31, 2005............................ 9.81 (0.06)(6) 0.66 0.60 -- -- -- For the Year Ended March 31, 2004............................ 10.43 (0.09)(6) (0.53) (0.62) -- -- -- For the Year Ended March 31, 2003............................ 8.95 (0.05)(6) 1.53 1.48 -- -- -- For the Year Ended March 31, 2002............................ 8.10 0.09(6) 0.96 1.05 (0.20) -- (0.20) For the Year Ended March 31, 2001............................ 7.41 0.31(6) 0.78 1.09 (0.40) -- (0.40)
--------------- * For the period May 2, 2005 (commencement of operations) through September 30, 2005. (1) From commencement of operations. (2) Not annualized for periods less than one year. (3) Annualized for periods less than one year. (4) Includes interest expense and dividend expense on securities sold short. (5) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. (6) Calculated based on the average shares outstanding during the period. (7) Amount less than $0.005. (8) Exclusive of nonrecurring account fees, extraordinary expenses, interest expense, and dividends on securities sold short. 136 Laudus Trust Semi-Annual Report See the accompanying notes to the financial statements. Financial Statements--Financial Highlights continued
RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------- NET NET INVESTMENT NET ASSET ASSETS, INCOME/(LOSS) EXPENSES VALUE, END OF NET OF BEFORE REDEMPTION END OF TOTAL PERIOD WAIVERS/ WAIVERS/ FEES PERIOD RETURN(2) (000'S) REIMBURSEMENTS(3) REIMBURSEMENTS(3),(4) ---------- --------- --------- -------- ----------------- --------------------- ADVISER SHARES U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ $ --(7) $14.30 6.88% $41,062 (0.16)% 1.28% For the Year Ended March 31, 2005....... --(7) 13.38 9.12 41,104 (0.01) 1.31 For the Year Ended March 31, 2004....... --(7) 13.71 56.53 44,059 0.19 1.40 For the Year Ended March 31, 2003....... -- 8.91 (17.35) 25,973 0.07 1.54 For the Year Ended March 31, 2002....... -- 11.12 23.61 17,695 0.05 1.53 For the Year Ended March 31, 2001....... -- 9.53 (1.43) 8,137 0.07 1.45 INVESTOR SHARES U.S. LARGE CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 12.66 7.20 6,294 0.30 1.64 For the Year Ended March 31, 2005....... -- 11.81 9.22 2,786 0.69 1.58 For the Year Ended March 31, 2004....... --(7) 10.96 31.89 590 0.24 1.51 July 31, 2002 to March 31, 2003 (1)..... -- 8.31 (6.42) 666 0.87 3.05 U.S. LARGE CAPITALIZATION GROWTH FUND Six months ended September 30, 2005 (Unaudited)............................ -- 8.78 7.73 1,911 (0.18) 2.30 For the Year Ended March 31, 2005....... --(7) 8.15 3.14 1,894 0.21 2.68 August 15, 2003 to March 31, 2004 (1)... --(7) 7.92 14.50 1,479 1.12 2.72 U.S. LARGE CAPITALIZATION VALUE FUND Period ended September 30, 2005 (Unaudited)*........................... -- 11.19 11.90 101 1.62 3.52 U.S. DISCOVERY FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 17.41 9.63 195,171 (0.23) 1.49 For the Year Ended March 31, 2005....... --(7) 15.88 9.70 58,284 (0.30) 1.55 For the Year Ended March 31, 2004....... --(7) 14.66 55.22 2,581 0.04 1.63 For the Year Ended March 31, 2003....... -- 9.53 (13.99) 104 0.20 6.18 October 3, 2001 to March 31, 2002 (1)... -- 11.08 18.34 98 0.03 10.26 U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 14.20 6.77 304,839 (0.29) 1.40 For the Year Ended March 31, 2005....... --(7) 13.30 9.00 297,927 (0.15) 1.43 For the Year Ended March 31, 2004....... --(7) 13.65 56.40 272,481 0.11 1.47 For the Year Ended March 31, 2003....... -- 8.88 (17.42) 136,293 (0.02) 1.63 For the Year Ended March 31, 2002....... -- 11.08 23.50 108,449 (0.05) 1.65 For the Year Ended March 31, 2001....... -- 9.50 (1.52) 65,217 (0.13) 1.53 INTERNATIONAL EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 10.52 9.47 12,648 1.83 2.58 For the Year Ended March 31, 2005....... --(7) 9.61 13.79 12,491 0.65 2.96 For the Year Ended March 31, 2004....... 0.02 8.47 53.61 2,881 0.45 4.46 For the Year Ended March 31, 2003....... 0.01 5.57 (20.73) 17 1.06 5.27 For the Year Ended March 31, 2002....... -- 7.05 (8.83) 18 0.64 4.27 December 5, 2000 to March 31, 2001 (1).................................... -- 8.13 (9.47) 24 25.10 4.09 INTERNATIONAL SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 18.27 9.21 527,646 0.87 1.78 For the Year Ended March 31, 2005....... --(7) 16.73 26.16 355,766 0.20 1.98 For the Year Ended March 31, 2004....... --(7) 13.83 76.91 82,780 0.28 2.18 For the Year Ended March 31, 2003....... 0.02 7.87 (5.53) 16,834 0.99 2.93 For the Year Ended March 31, 2002....... -- 8.43 (5.08) 6,334 0.79 2.67 For the Year Ended March 31, 2001....... -- 9.09 (11.08) 1,731 0.67 2.24 U.S. LARGE/ MID CAPITALIZATION LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 11.66 1.75 7,222 1.45 3.12 For the Year Ended March 31, 2005....... --(7) 11.46 5.52 12,824 (0.33) 3.55 For the Year Ended March 31, 2004....... --(7) 10.86 (6.46) 8,693 (0.93) 3.51 For the Year Ended March 31, 2003....... 0.01 11.61 12.49 16,251 (0.45) 3.91 For the Year Ended March 31, 2002....... -- 10.34 8.96 471 0.99 3.42 For the Year Ended March 31, 2001....... -- 9.73 (5.06) 24 4.90 2.96 GLOBAL LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 12.02 4.61 8,130 (0.17) 4.70 For the Year Ended March 31, 2005....... 0.02 11.49 2.50 6,094 (1.57) 4.80 For the Year Ended March 31, 2004....... --(7) 11.21 (5.08) 8,533 (1.50) 4.01 For the Year Ended March 31, 2003....... 0.02 11.81 16.58 9,474 (0.80) 4.42 August 23, 2001 to March 31, 2002 (1)... -- 10.13 3.58 7 0.22 4.43 VALUE LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ --(7) 10.48 0.67 43,129 0.72 3.32 For the Year Ended March 31, 2005....... --(7) 10.41 6.12 34,930 (0.55) 3.37 For the Year Ended March 31, 2004....... --(7) 9.81 (5.94) 34,081 (0.90) 3.18 For the Year Ended March 31, 2003....... -- 10.43 16.54 38,473 (0.43) 2.97 For the Year Ended March 31, 2002....... -- 8.95 13.24 5,355 1.05 2.79 For the Year Ended March 31, 2001....... -- 8.10 15.49 3,952 4.23 3.37 RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------- EXPENSES NET OF EXPENSES PORTFOLIO WAIVERS/ NET OF WAIVERS/ TURNOVER REIMBURSEMENTS(3),(4) REIMBURSEMENTS(3),(8) RATE(5) --------------------- --------------------- --------- ADVISER SHARES U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ 1.28% 1.28% 37.01% For the Year Ended March 31, 2005....... 1.31 1.31 68.09 For the Year Ended March 31, 2004....... 1.40 1.40 75.65 For the Year Ended March 31, 2003....... 1.40 1.40 70.83 For the Year Ended March 31, 2002....... 1.39 1.39 101.08 For the Year Ended March 31, 2001....... 1.35 1.35 128.79 INVESTOR SHARES U.S. LARGE CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ 1.35 1.35 61.12 For the Year Ended March 31, 2005....... 1.35 1.35 127.89 For the Year Ended March 31, 2004....... 1.25 1.25 141.50 July 31, 2002 to March 31, 2003 (1)..... 1.25 1.25 100.79 U.S. LARGE CAPITALIZATION GROWTH FUND Six months ended September 30, 2005 (Unaudited)............................ 1.33 1.33 40.41 For the Year Ended March 31, 2005....... 1.32 1.32 77.81 August 15, 2003 to March 31, 2004 (1)... 1.11 1.39 177.43 U.S. LARGE CAPITALIZATION VALUE FUND Period ended September 30, 2005 (Unaudited)*........................... 0.36 0.36 48.37 U.S. DISCOVERY FUND Six months ended September 30, 2005 (Unaudited)............................ 1.49 1.49 51.63 For the Year Ended March 31, 2005....... 1.49 1.49 62.60 For the Year Ended March 31, 2004....... 1.40 1.40 93.08 For the Year Ended March 31, 2003....... 1.40 1.40 98.65 October 3, 2001 to March 31, 2002 (1)... 1.40 1.40 78.02 U.S. SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ 1.40 1.40 37.01 For the Year Ended March 31, 2005....... 1.43 1.43 68.09 For the Year Ended March 31, 2004....... 1.47 1.47 75.65 For the Year Ended March 31, 2003....... 1.49 1.49 70.83 For the Year Ended March 31, 2002....... 1.51 1.51 101.08 For the Year Ended March 31, 2001....... 1.43 1.43 128.79 INTERNATIONAL EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ 1.72 1.72 36.08 For the Year Ended March 31, 2005....... 1.72 1.72 52.06 For the Year Ended March 31, 2004....... 1.59 1.59 107.02 For the Year Ended March 31, 2003....... 1.60 1.60 138.85 For the Year Ended March 31, 2002....... 1.60 1.60 132.84 December 5, 2000 to March 31, 2001 (1).................................... 1.60 1.60 86.18 INTERNATIONAL SMALL CAPITALIZATION FUND Six months ended September 30, 2005 (Unaudited)............................ 1.78 1.78 68.12 For the Year Ended March 31, 2005....... 1.83 1.83 59.70 For the Year Ended March 31, 2004....... 1.75 1.75 102.50 For the Year Ended March 31, 2003....... 1.78 1.78 129.34 For the Year Ended March 31, 2002....... 1.78 1.78 147.52 For the Year Ended March 31, 2001....... 1.81 1.81 148.53 U.S. LARGE/ MID CAPITALIZATION LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ 2.86 1.61 85.33 For the Year Ended March 31, 2005....... 3.26 1.61 180.14 For the Year Ended March 31, 2004....... 3.12 1.55 189.35 For the Year Ended March 31, 2003....... 3.07 1.54 185.66 For the Year Ended March 31, 2002....... 2.42 1.56 313.22 For the Year Ended March 31, 2001....... 2.41 1.54 399.02 GLOBAL LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ 4.28 2.33 110.14 For the Year Ended March 31, 2005....... 4.27 2.34 152.24 For the Year Ended March 31, 2004....... 3.23 2.14 175.85 For the Year Ended March 31, 2003....... 2.92 1.80 189.09 August 23, 2001 to March 31, 2002 (1)... 2.34 1.75 231.34 VALUE LONG/ SHORT EQUITY FUND Six months ended September 30, 2005 (Unaudited)............................ 3.32 2.07 69.08 For the Year Ended March 31, 2005....... 3.30 2.06 111.19 For the Year Ended March 31, 2004....... 3.06 2.05 76.36 For the Year Ended March 31, 2003....... 2.69 2.02 209.95 For the Year Ended March 31, 2002....... 2.48 2.04 126.45 For the Year Ended March 31, 2001....... 3.04 2.16 129.80
Laudus Trust Semi-Annual Report 137 See the accompanying notes to the financial statements. Financial Statements Notes to Financial Statements as of 9/30/05 (Unaudited) 1. ORGANIZATION. Laudus Trust, (the "Trust") was established as a Massachusetts business trust under the laws of Massachusetts on April 1, 1988. The Trust is an open-end diversified management investment company consisting of eleven portfolios, ten of which were operational as of September 30, 2005 (individually, a "Fund" and collectively the "Funds"); Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Large Capitalization Value Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Small Capitalization Fund, Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund, Laudus Rosenberg Value Long/Short Equity Fund. As of September 30, 2005, the Laudus Rosenberg U.S. Long/Short Equity Fund was not operational. As of October 15, 2004, the Laudus Rosenberg U.S. Small Capitalization Fund was closed to new investors. Each Fund is authorized to issue an unlimited number of Institutional Shares and Investor Shares of no par value, and the Laudus Rosenberg U.S. Small Capitalization Fund is also authorized to issue an unlimited number of Adviser Shares of no par value. Each class of shares generally has identical rights and preferences, except that each class is subject to different eligibility conditions, bear different distribution and sub-transfer agent expenses, and has separate voting rights on matters pertaining solely to that class of shares. Under the Funds' organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with their vendors and others that provide for general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. 2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual amounts could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. SECURITY VALUATION Each Fund uses approved pricing services to provide values for its portfolio securities. Current market values are generally determined by the approved pricing services as follows: securities traded on stock exchanges are valued at the last-quoted sales price on the exchange on which such securities are primarily traded (closing values), or, lacking any sales, at the mean between the bid and ask prices; securities traded in the over-the-counter market are valued at the last sales price that day, or, if there are no sales that day, at the mean between the bid and ask prices. In addition, securities that are primarily traded on foreign exchanges are generally valued at the preceding closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the current exchange rate. Foreign securities are fair valued if a movement in the U.S. market exceeds a specific threshold that has been established using the guideline adopted by a fund's Board of Trustees. The fund uses a third party vendor to provide the fair valuation based on certain factors and methodologies including tracking valuation correlations between the U.S. market and each non-U.S. security. Securities may be fair valued pursuant to procedures approved by the Funds' Board of Trustees when approved pricing services do not provide a value for a security, a furnished price appears manifestly incorrect or events occur prior to the close of the New York Stock Exchange that materially affect the furnished price. The Board of Trustees regularly reviews fair value determinations made by the Funds pursuant to the procedures. 138 Laudus Trust Semi-Annual Report Financial Statements--Notes to Financial Statements continued SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME Changes in holdings of portfolio securities are reflected no later than on the first business day following the trade date. However, for financial reporting purposes, portfolio security transactions are reported on trade date. Net realized gains or losses from sales of securities are determined on the specific identification cost method. Interest income and expenses are recognized on the accrual basis. Dividend income less foreign taxes withheld (if any) is recorded on the ex-dividend date. Interest income is recorded as earned and includes premium amortization and discount accretion. FOREIGN CURRENCY TRANSACTIONS The accounting records of the Funds are maintained in U.S. dollars. All monetary items denominated in foreign currencies are translated to U.S. dollars based upon the prevailing exchange rate at the close of each business day. Net realized gains and losses on foreign currency transactions represent net gains and losses from currency gains and losses realized between the trade and settlement dates on securities transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. Further, the effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included with the net realized gain or loss and unrealized appreciation or depreciation on investments. FORWARD FOREIGN CURRENCY CONTRACTS Forward foreign currency contracts are valued at the daily exchange rate of the underlying currency. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized appreciation or depreciation until the contractual settlement date. Gains or losses from the purchase or sale of forward foreign currency contracts are recorded as realized on the settlement date. FOREIGN SECURITIES The Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Small Capitalization Fund, and Laudus Rosenberg Global Long/Short Equity Fund pursue their respective objectives by investing in foreign securities. Investments in securities of foreign issuers involve certain risks that are less significant for investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions, changes in currency exchange rates or exchange control regulations (including currency blockage). The Funds may be unable to obtain and enforce judgments against foreign entities, and issuers of foreign securities are subject to different, and often less comprehensive, accounting, reporting and disclosure requirements than domestic issuers. Also, the securities of some foreign companies may be less liquid and at times more volatile than securities of comparable U.S. companies. REAL ESTATE INVESTMENT TRUSTS Several Funds own shares of real estate investment trusts ("REITs") which report information on the source of their distributions annually. Certain distributions received from REITs during the year, which are known to be a return of capital, are recorded as a reduction to the cost of the individual REIT. REPURCHASE AGREEMENTS In a repurchase agreement, a Fund buys a security from another party (usually a financial institution) with the agreement that the security will be sold back in the future. The date, price and other conditions are all specified when the agreement is created. The Funds' repurchase agreements are currently fully collateralized by U.S. Government Securities. All collateral is held by the Funds' Custodian (or, with tri-party agreements, the agent's bank) and is monitored daily to ensure that its market value is at least equal to the repurchase price under the agreement. SHORT SALES The Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund and Laudus Rosenberg Value Long/Short Equity Fund are authorized to engage in short sales. Short sales are transactions in which a Fund sells a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to deliver to the buyer upon the short sale; the Fund is then obligated to replace the security borrowed by purchasing Laudus Trust Semi-Annual Report 139 Financial Statements--Notes to Financial Statements continued the security at current market value sometime in the future. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a gain if the price of the security declines between those dates. The potential for losses associated with short positions is much greater than the original value of the securities sold short and may exceed the market value of securities sold short recorded in the Statement of Assets and Liabilities. Until the Fund replaces the borrowed security, the Fund will maintain a segregated account at the Custodian Bank with cash, U.S. Government Securities and/or securities held long by the portfolio to sufficiently cover its short position on a daily basis. The collateral for the securities sold short includes the Deposits with Broker and Custodian Bank as shown in the Statement of Assets and Liabilities and the securities held long as shown in the Statement of Portfolio Investments. Interest accrued or dividends paid on Securities Sold Short are recorded as an expense on the Fund's records. SECURITIES LENDING Under the Securities Lending Program, securities held by the Laudus Rosenberg U.S. Discovery Fund, the Laudus Rosenberg U.S. Small Capitalization Fund and the Laudus Rosenberg International Small Capitalization Fund are loaned by State Street Bank, 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 various money market portfolios. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the respective Fund and State Street Bank in its capacity as lending agent. Securities lending fee income, net or related expense, is recorded as earned. The Funds bear the risk of loss with respect to the investment of the cash collateral. At September 30, 2005, the following Funds had collateral and loans outstanding of:
Value of Value of Loaned Collateral Securities ------------------------------------------------------------- Laudus Rosenberg U.S. Discovery Fund........... $ 53,993,755 $ 52,932,745 Laudus Rosenberg U.S. Small Capitalization Fund...... 104,837,394 102,452,099 Laudus Rosenberg International Small Capitalization Fund...... 72,220,939 67,357,166
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION Expenses directly attributable to a Fund are charged to that Fund; expenses not directly attributable to a Fund are allocated proportionately among each Fund within the Trust in relation to the net assets of each Fund or on another reasonable basis. Expenses specific to a class are charged to that class. Expenses other than class specific expenses are allocated daily to each class based upon the proportion of relative net assets or another reasonable basis. The investment income and expenses of the Fund (other than class specific expenses charged to a class) and realized and unrealized gains and losses on investments of the Fund are allocated to each class of shares based upon relative net assets on the date income is earned, or expenses and realized/unrealized gains and losses are incurred. DIVIDENDS AND DISTRIBUTIONS Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends and distributions are made annually on a tax basis, which may differ from distribution amounts determined under accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for foreign currency transactions, REITs, and wash sales for book and tax purposes. FEDERAL INCOME TAXES It is the Funds' policy to comply with the requirements of the Internal Revenue Code under Subchapter M, applicable to regulated investments companies, and to distribute substantially all of its taxable income, including any net realized gain on investments, to its shareholders. Therefore, no provisions are made for federal income taxes. 140 Laudus Trust Semi-Annual Report Financial Statements--Notes to Financial Statements continued 3. MANAGEMENT, ADMINISTRATION, FUND ACCOUNTING, DISTRIBUTION AND SHAREHOLDER SERVICE AGREEMENTS. The Trust's Board of Trustees oversees the general conduct of the Trust and the Funds. Charles Schwab Investment Management, Inc. ("CSIM" or the "Manager") is the investment adviser of the Funds and manages the Funds' business, subject to the supervision of the Board of Trustees. AXA Rosenberg Investment Management LLC ("AXA Rosenberg"), the Funds' sub-adviser, provides day-to-day portfolio management services to the Funds, subject to the supervision of CSIM. The Funds pay CSIM an advisory fee for these services on a monthly basis. CSIM -- and not the Funds -- pays a portion of the advisory fees it receives to AXA Rosenberg in return for its services. The table below sets forth the advisory fee payable to CSIM by each Fund.
Agreement Rate* ------------------------------------------------------------ Laudus Rosenberg U.S. Large Capitalization Fund............................ 1st $1 billion-0.75% Over $1 billion-0.70% Over $2 billion-0.675% Laudus Rosenberg U.S. Large Capitalization Growth Fund............................ 1st $1 billion-0.75% Over $1 billion-0.70% Over $2 billion-0.675% Laudus Rosenberg U.S. Large Capitalization Value Fund....... 1st $1 billion-0.75% Over $1 billion-0.70% Over $2 billion-0.675% Laudus Rosenberg U.S. Discovery Fund............. 1st $1 billion-0.90% Over $1 billion-0.85% Laudus Rosenberg U.S. Small Capitalization Fund............................ 0.90% Laudus Rosenberg International Equity Fund....... 1st $1 billion-0.85% Over $1 billion-0.80% Over $2 billion-0.775% Laudus Rosenberg International Small Capitalization Fund............. 1st $500 million-1.00% Over $500 million-0.95% Laudus Rosenberg U.S. Large/Mid Capitalization Long/ Short Equity Fund......... 1st $500 million-1.00% Over $500 million-0.95%
Agreement Rate* ------------------------------------------------------------ Laudus Rosenberg Global Long/Short Equity Fund... 1st $500 million-1.50% Over $500 million-1.45% Laudus Rosenberg Value Long/Short Equity Fund.... 1st $500 million-1.50% Over $500 million-1.45% * The advisory fee payable to CSIM varies based on fund assets.
Affiliated broker/dealers received $13,580 for the period ended September 30, 2005, for brokerage fees on the execution of portfolio trades. CSIM has contractually agreed, until at least March 31, 2007, to waive its management fee and bear certain expenses and fees of each Fund. As such, CSIM further agrees to reimburse the Funds to limit the annual expenses, exclusive of nonrecurring account fees, extraordinary expenses, interest expense, dividends on securities sold short, service fees, subtransfer agency and subaccounting fees and distribution and shareholder services fees as follows: Laudus Rosenberg U.S. Large Capitalization Fund........................................ 0.99% Laudus Rosenberg U.S. Large Capitalization Growth Fund................................. 0.99% Laudus Rosenberg U.S. Large Capitalization Value Fund.................................. 0.00%** Laudus Rosenberg U.S. Discovery Fund.......... 1.14% Laudus Rosenberg U.S. Small Capitalization Fund........................................ 1.14% Laudus Rosenberg International Equity Fund.... 1.34% Laudus Rosenberg International Small Capitalization Fund......................... 1.49% Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund...................... 1.24% Laudus Rosenberg Global Long/Short Equity Fund........................................ 1.99% Laudus Rosenberg Value Long/Short Equity Fund........................................ 1.74% ** Effective November 1, 2005, the contractual limit is 0.99%.
Any amounts waived or reimbursed in a particular fiscal year will be subject to repayment through the next two fiscal years, to the extent that the repayment will not cause the Fund's net expenses to exceed the current limit (as stated in CSIM's contractual undertaking) during the respective year. As of September 30, 2005, the balance of recoupable expenses is as follows: Laudus Trust Semi-Annual Report 141 Financial Statements--Notes to Financial Statements continued
Expires Expires Expires 3/31/06 3/31/07 3/31/08 ----------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund....... $33,231 $108,272 $ 49,343 Laudus Rosenberg U.S. Large Capitalization Growth Fund...................... 18,090 89,616 49,596 Laudus Rosenberg U.S. Large Capitalization Value Fund...................... -- -- 65,341 Laudus Rosenberg U.S. Discovery Fund............ 10,753 103,889 -- Laudus Rosenberg International Equity Fund...................... 34,256 231,815 125,397 Laudus Rosenberg U.S. Large/ Mid Capitalization Long/ Short Equity Fund......... 21,271 73,659 27,516 Laudus Rosenberg Global Long/Short Equity Fund.... 47,220 104,929 46,717 Laudus Rosenberg Value Long/Short Equity Fund.... -- 65,266 --
Prior to October 1, 2005, BISYS Fund Services Ohio, Inc. ("BISYS" or the "Administrator"), a wholly-owned subsidiary of The BISYS Group, Inc., served as the Trust's administrator and assisted the Trust in all aspects of its administration and operation. The Administrator was entitled to a complex level fee, computed and paid monthly, based upon the following schedule: 0.00% of average daily net assets of the Trust from $0 to $25 million, 0.09% of average daily net assets from $25 million to $500 million, 0.07% on the next $500 million of average daily net assets, and 0.04% of average daily net assets over $1 billion. Subsequent to September 30, 2005, State Street Bank & Trust Company performs these services under separate agreements. Prior to October 1, 2005, BISYS also served the Funds as fund accountant. Prior to October 10, 2005, BISYS also served the Funds as transfer agent. Under the terms of separate agreements, BISYS was entitled to receive a fixed fee per Fund for accounting and a per account fee, subject to a minimum charge, for transfer agent services, including reimbursement of certain expenses. BISYS may, from time to time, perform additional services for which it would receive additional fees. Effective October 1, 2005, State Street Bank & Trust Company performs the fund accounting services and effective October 10, 2005, Boston Financial Data Services, Inc. performs the transfer agent services under separate agreements. The Trust has adopted Distribution and Shareholder Service Plans 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. Prior to October 1, 2005, Laudus Distributor Inc. (an indirect wholly-owned subsidiary of the BISYS Group, Inc.) served as the Distributor, and effective October 1, 2005 ALPS Distributors, Inc. serves as the Distributor. Under the Distribution and Shareholder Service Plans, the Funds pay the Distributor for expenses primarily intended to result in the sale 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 and sub-accounting services in connection with such shares. 142 Laudus Trust Semi-Annual Report Financial Statements--Notes to Financial Statements continued 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 sub-transfer and sub-accounting services in connection with such shares. Interested Trustees and officers of the Trust do not receive compensation from the Trust. The Trust pays each Independent Trustee aggregate compensation of $55,000 per year. This sum includes a quarterly retainer fee of $8,788 and an additional $3,790 for each regular meeting attended. In addition, a retirement plan has been instituted for all of the Independent Trustees of the Trust and Trustees of the Laudus Variable Insurance Trust (the "Retirement Plan"). Under the terms of the Retirement Plan, upon retirement or other termination from service from the Trust and Laudus Variable Insurance 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 and the Laudus Variable Insurance Trust, including years of service prior to the adoption of the Retirement Plan. However, beginning April 1, 2005, each Independent Trustee is permitted to make a one-time election to have the $10,000 attributable to service for the coming year adjusted up or down at the end of each subsequent year based on the unweighted average performance of Institutional Shares of each Fund of the Trust and Class 2 Shares of the sole series of the Laudus Variable Insurance Trust that is in operation for all of such year. Each Independent Trustee also was given the opportunity to make a one-time election to have previously accrued benefits fluctuate beginning April 1, 2005 based on performance of the Funds as described in the previous sentence. As a result, the amount of the Retirement Payment payable to any Independent Trustee may increase or decrease based upon performance of the Funds. The portion of the total Retirement Payment owed to an Independent Trustee upon his or her retirement that is payable by any Fund will be determined based on the relative net assets of the Funds of the Trust and the sole series of the Laudus Variable Insurance Trust in operation on the date of the Independent Trustee's retirement. The Trust did not pay any pension or retirement benefits for its Trustees. 4. EARLY REDEMPTION FEE. For the Funds, certain shares purchased that were redeemed or exchanged in less than 30 days, are assessed a fee of 2% of the current net asset value of the shares. The fee, which is applied to shares redeemed or exchanged in the order in which they are purchased, is retained by the Fund and is intended to limit short-term trading in the Funds, or to the extent short-term trading persists, to impose the costs of that activity on the shareholders who engage in it. Such amounts are included in the proceeds from shares issued on the Statement of Changes in Net Assets. For the period ended September 30, 2005, early redemption fees assessed were as follows:
Early Redemption Fees ----------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund........................................ $ 4,759 Laudus Rosenberg U.S. Large Capitalization Growth Fund................................. -- Laudus Rosenberg U.S. Large Capitalization Value Fund.................................. -- Laudus Rosenberg U.S. Discovery Fund.......... 26,186 Laudus Rosenberg U.S. Small Capitalization Fund........................................ 1,428 Laudus Rosenberg International Equity Fund.... 303 Laudus Rosenberg International Small Capitalization Fund......................... 55,307 Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund...................... 530 Laudus Rosenberg Global Long/Short Equity Fund........................................ 910 Laudus Rosenberg Value Long/Short Equity Fund........................................ 989
Laudus Trust Semi-Annual Report 143 Financial Statements--Notes to Financial Statements continued 5. SECURITY PURCHASES AND SALES. For the period ended September 30, 2005, purchases and sales of securities (excluding short-term securities) were as follows:
Purchases Sales ------------------------------------------------------------ Laudus Rosenberg U.S. Large Capitalization Fund.......... $ 25,654,623 $ 37,127,321 Laudus Rosenberg U.S. Large Capitalization Growth Fund... 13,118,669 4,068,843 Laudus Rosenberg U.S. Large Capitalization Value Fund.... 7,321,486 1,943,480 Laudus Rosenberg U.S. Discovery Fund......................... 510,173,727 228,998,575 Laudus Rosenberg U.S. Small Capitalization Fund.......... 457,990,989 573,456,782 Laudus Rosenberg International Equity Fund.................. 10,866,046 9,916,962 Laudus Rosenberg International Small Capitalization Fund.... 619,324188 467,632,554 Laudus Rosenberg U.S. Large/ Mid Capitalization Long/Short Equity Fund.................. 16,965,952 23,272,451 Laudus Rosenberg Global Long/ Short Equity Fund............ 28,026,244 22,898,298 Laudus Rosenberg Value Long/ Short Equity Fund............ 134,242,519 100,862,096
6. LINE OF CREDIT. The custodian has established a loan agreement for a maximum amount of 10% of total net assets for the Laudus Rosenberg Value Long/Short Equity Fund for temporary purposes. In addition, the Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity Fund, and Laudus Rosenberg International Small Capitalization Fund had access to a committed line of credit up to a maximum of $35,000,000, as established by the Fund's custodian. Interest is calculated based on the market rates at the time of borrowing. A commitment fee of 0.09% per annum will be incurred on the unused portion of the line of credit, which is allocated to the applicable Funds based on net assets. There were no borrowings on the line of credit for the period ended September 30, 2005. 144 Laudus Trust Semi-Annual Report Financial Statements--Notes to Financial Statements continued 7. FEDERAL INCOME TAXES. As of the last tax year end of March 31, 2005, the following is the net capital loss carry forward, which is available to offset future realized gains.
Expires ---------------------------------------------------------------------------------------------- 2006 2007 2008 2009 2010 2011 2012 2013 ---------------------------------------------------------------------------------------------- Laudus Rosenberg U.S. Large Capitalization Fund.......................... $ -- $-- $ -- $ -- $ -- $ -- $ -- $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund................... -- -- -- -- 320,412 451,611 -- 193,612 Laudus Rosenberg U.S. Discovery Fund........... -- -- -- -- -- -- -- -- Laudus Rosenberg U.S. Small Capitalization Fund.......................... -- -- -- -- -- -- -- -- Laudus Rosenberg International Equity Fund..... 282,014 -- 7,313 -- 300,427 1,715,777 -- -- Laudus Rosenberg International Small Capitalization Fund........... -- -- -- -- -- -- -- -- Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund........ -- -- 429,084 -- 659,336 -- 2,980,970 385,119 Laudus Rosenberg Global Long/Short Equity Fund.......................... -- -- -- -- 397,465 -- 1,873,304 177,288 Laudus Rosenberg Value Long/Short Equity Fund.......................... -- -- 27,982,004 11,040,106 -- -- 20,890,231 -- Expires ----------- Total ----------- Laudus Rosenberg U.S. Large Capitalization Fund.......................... $ -- Laudus Rosenberg U.S. Large Capitalization Growth Fund................... 965,635 Laudus Rosenberg U.S. Discovery Fund........... -- Laudus Rosenberg U.S. Small Capitalization Fund.......................... -- Laudus Rosenberg International Equity Fund..... 2,305,531 Laudus Rosenberg International Small Capitalization Fund........... -- Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund........ 4,454,509 Laudus Rosenberg Global Long/Short Equity Fund.......................... 2,448,057 Laudus Rosenberg Value Long/Short Equity Fund.......................... 59,912,341
Laudus Trust Semi-Annual Report 145 APPROVALS 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 advisory agreements. In addition, the Securities and Exchange Commission (the "SEC") takes the position that, as part of their fiduciary duties with respect to fund fees, fund boards are required to evaluate the material factors applicable to a decision to approve an investment advisory agreement. Consistent with these responsibilities, the Board of Trustees (the "Board") 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 relating to the following funds: Laudus Rosenberg U.S. Large Capitalization Fund, Laudus Rosenberg U.S. Large Capitalization Growth Fund, Laudus Rosenberg U.S. Discovery Fund, Laudus Rosenberg U.S. Small Capitalization Fund, Laudus Rosenberg International Equity Fund, Laudus Rosenberg International Small Capitalization Fund, Laudus Rosenberg U.S. Large/Mid Capitalization Long/Short Equity Fund, Laudus Rosenberg Global Long/Short Equity Fund and Laudus Rosenberg Value Long/Short Equity Fund (such investment advisory and sub-advisory agreements, collectively, the "Agreements"). The Trustees also reviewed certain other agreements pursuant to which CSIM provides investment advisory services and AXA Rosenberg provides sub-advisory services to the Laudus Variable Insurance Trust. 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 Trustees also receive a memorandum from counsel regarding the responsibilities of trustees for the approval of investment advisory contracts. In addition, the Independent Trustees receive advice from independent counsel to 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. The Trustees received, among other materials and information: - descriptions of any significant changes (actual or anticipated) to principal activities, personnel and services provided to the funds; - a copy of CSIM's and AXA Rosenberg's most recent audited or unaudited financial statements as well as Parts I and II of its Form ADV; - summaries of any material past, pending or anticipated litigation or regulatory proceedings involving CSIM or AXA Rosenberg or their personnel, including the results of any recent regulatory examination or independent audit; - descriptions of CSIM's and AXA Rosenberg's experience providing portfolio management services, including the services provided to other clients, including other registered investment companies; - descriptions of the personnel who are assigned primary responsibility for managing the funds; 146 Laudus Trust Semi-Annual Report - descriptions of the basis upon which portfolio managers are compensated; - discussions regarding CSIM's and AXA Rosenberg's participation in "soft dollar" arrangements, if any, or other brokerage allocation policies with respect to fund transactions, including each firm's methodology for obtaining the best execution and the use of any affiliated broker-dealers; - descriptions of any actual or potential conflicts of interest anticipated in managing fund assets; - discussions of CSIM's and AXA Rosenberg's compliance programs with regard to federal regulations and fund requirements; - information regarding CSIM's and AXA Rosenberg's codes of ethics and insider trading policies, including a description of any material changes thereto; - descriptions of CSIM's and AXA Rosenberg's affiliation with any broker-dealer; - discussions of any anticipated change in CSIM's and AXA Rosenberg's controlling persons; and - verification of CSIM's and AXA Rosenberg's insurance coverage with regards to the services provided to the funds. At the September 19, 2005 meeting of the Board, the Trustees, including a majority of the Independent Trustees, approved the renewal of the Agreements for an additional one year period. In making such approvals, the Trustees considered the best interests of each Fund separately. In each instance, the Board's approval of the Agreements was based on consideration and evaluation of the information and material provided to the Board and 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 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; (4) the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. ("Schwab"), with respect to the Funds, including both direct and indirect benefits accruing to CSIM and its affiliates, as well as the profitability of AXA Rosenberg; 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, performance history of various products, and compliance program. The Trustees also considered Schwab's excellent reputation in connection with the OneSource mutual fund offering and its overall financial condition, and how this affects the success of the Funds. 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 dedicated to the Funds supported renewal of the Agreements. 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 of other mutual funds and appropriate indices/benchmarks, in light of total return, yield and market trends. As part of this review, the Trustees considered the composition of the peer group, selection criteria and the reputation of the third party who prepared the peer group analysis. In evaluating the performance of each Fund, the Trustees considered both risk and shareholder risk expectations for such Fund and whether, irrespective of relative performance, the Sub-Adviser's absolute performance was consistent with expectations for its unique quantitative investment methodology. Following such evaluation, the Board Laudus Trust Semi-Annual Report 147 concluded, within the context of its full deliberations, that the performance of the Funds supported renewal of the Agreements. 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 voluntary waiver of management fees to prevent total fund expenses from exceeding a specified cap. The Trustees also considered fees charged by CSIM and AXA Rosenberg to other similarly managed mutual funds, pooled vehicles and other types of accounts, such as separate accounts and wrap accounts. However, the Trustees accorded less weight to the comparisons to other types of pooled vehicles or accounts due to the unique legal, regulatory, compliance and operating features of mutual funds as compared to such other types of pooled vehicles or 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. Profitability. With regard to profitability, the Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly. In this connection, 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 its relationship with the Funds, such as whether, by virtue of its 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. The Board also considered the profitability of AXA Rosenberg with respect to the sub-advisory services it provides to the Funds, although it also considered that AXA Rosenberg 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 profitability of CSIM and AXA Rosenberg is reasonable and supported renewal of the Agreements. 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. 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 their 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 CSIM's agreement to contractual investment advisory fee schedules which include lower fees at higher graduated asset levels. 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 and concluded that the compensation under the Agreements 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. 148 Laudus Trust Semi-Annual Report Trustees and Officers of Laudus Trust and Laudus Variable Insurance Trust
INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------- Name, Address(1) and Number of Year of Birth Portfolios in (Term of Office(2) and Fund Complex Length of Time Served) Principal Occupation(s) and Other Directorships and Affiliations Overseen(3) ------------------------------------------------------------------------------------------------------- Jeffrey M. Lyons(5) Executive Vice President and President, Active Trader 11(4) 1955 Enterprise. Prior to July 2004, Mr. Lyons was Executive Vice (since 1/04) President, Asset Management Products & Services, Charles Schwab & Co., Inc. Prior to September 2001, Mr. Lyons was Executive Vice President, Mutual Funds, Charles Schwab & Co., Inc. INDEPENDENT TRUSTEES ------------------------------------------------------------------------------------------------------- Mariann Byerwalter Chairman of JDN Corporate Advisory LLC. From 1996 to 2001, Vice 67(3) 1960 President for Business Affairs and Chief Financial Officer of (since 1/04) Stanford University, and in 2001, Special Advisor to the President of Stanford University. Ms. Byerwalter is on the Boards of Stanford University, America First Companies, (venture capital/fund management), Redwood Trust, Inc. (mortgage finance), Stanford Hospitals and Clinics, SRI International (research), PMI Group Inc. (mortgage insurance), Lucile Packard Children's Hospital, and Pacific Life Insurance Company (insurance). Ms. Byerwalter is also a Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios. ------------------------------------------------------------------------------------------------------- William A. Hasler Until February 2004, Co-Chief Executive Officer, Aphton 67(3) 1941 Corporation (bio- pharmaceuticals). Prior to August 1998, Dean (since 1/04) of the Haas School of Business, University of California, Berkeley (higher education). Director, Aphton Corporation (bio-pharmaceuticals), Mission West Properties (commercial real estate), Stratex Networks (network equipment), Genitope Corp. (bio-pharmaceuticals), Pacific Stock & Option Exchange; Non-Executive Chairman, Solectron Corporation (manufacturing); Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, and Schwab Annuity Portfolios. ------------------------------------------------------------------------------------------------------- Nils H. Hakansson Sylvan C. Coleman Professor of Finance and Accounting Emeritus, 11(4) 1937 Haas School of Business, University of California, Berkeley, (since 3/90) since 2003. Mr. Hakansson was also a Professor of Finance and Accounting, Haas School of Business, University of California, Berkeley, from July 1969 to January 2003.
(1)The mailing address of each of the Trustees is 101 Montgomery Street, San Francisco, CA 94104. (2)There is no stated term of office for the Trustees of the Trusts. (3)This includes 56 Schwab Funds, 10 series of the Laudus Trust and the sole series of the Laudus Variable Insurance Trust. (4)This includes 10 series of the Laudus Trust and the sole series of the Laudus Variable Insurance Trust. (5)Mr. Lyons is an "interested person," as defined in the 1940 Act, because he is an employee of Charles Schwab & Co., Inc. The Statement of Additional Information includes additional information about Trustees and Officers and is available, without charge, upon written request, or by calling toll-free 1.866.452.8387. Laudus Trust Semi-Annual Report 149 Trustees and Officers of Laudus Trust and Laudus Variable Insurance Trust continued OFFICERS OF TRUSTS
----------------------------------------------------------------------------------------------------------------------- Name, Address(1) and Year of Birth (Term of Office(2) and Length of Time Served) Position with the Trust Principal Occupation(s) and Other Directorships and Affiliations ----------------------------------------------------------------------------------------------------------------------- Jana Thompson, 1959 President and Chief Senior Vice President, Charles Schwab & Co., Inc. and Charles (1/04-present) Executive Officer Schwab Investment Management, Inc. Until February 2004, Vice President, Charles Schwab & Co., Inc. ----------------------------------------------------------------------------------------------------------------------- Daniel Kern, 1961 Chief Financial Officer Vice President, Investment Operations, Charles Schwab Investment (3/05-present) and Treasurer Management, Inc.; Assistant Treasurer, Schwab Funds. Until (effective 10/1/05) September 2005, Assistant Treasurer, Laudus Trust and Laudus Variable Insurance Trust. Until December 2004, Vice President, Internal Audit, Charles Schwab Corporation. Prior to January 2003, Managing Director and Principal, Montgomery Asset Management. ----------------------------------------------------------------------------------------------------------------------- Jeffrey Mortimer, 1963 Vice President and Senior Vice President and Chief Investment Officer - Equities, (6/04-present) Chief Investment Charles Schwab Investment Management, Inc. and Schwab Funds. Officer Prior to 2004, Vice President and Sr. Portfolio Manager, Charles Schwab Investment Management, Inc. ----------------------------------------------------------------------------------------------------------------------- Alison Baur, 1964 Chief Legal Officer Vice President and Associate General Counsel, Charles Schwab & (1/04-present) Co., Inc. Until 2003, Senior Corporate Counsel, Charles Schwab & Co., Inc. From 2001-2004, Chief Legal Officer & Secretary, Excelsior Funds; Chief Legal Officer, Excelsior Directional Hedge Fund and Excelsior Private Equity Funds. ----------------------------------------------------------------------------------------------------------------------- Randall Fillmore, 1960 Chief Compliance Senior Vice President, Institutional Compliance and Chief (9/04-present) Officer Compliance Officer, Charles Schwab Investment Management, Inc.; Chief Compliance Officer, Schwab Funds. From 2002 to 2003, Vice President, Charles Schwab & Co., Inc., and Charles Schwab Investment Management, Inc. From 2000-2002, Vice President of Internal Audit, Charles Schwab & Co., Inc. ----------------------------------------------------------------------------------------------------------------------- Evelyn Dilsaver, 1955 Vice President Director, Executive Vice President and President, Charles Schwab (9/05-present) Investment Management, Inc.; President and Chief Executive Officer, Schwab Funds. From June 2003-July 2004, Senior Vice President, Asset Management Products and Services Enterprise, Charles Schwab & Co., Inc. Prior to June 2003, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, U.S. Trust, a subsidiary of The Charles Schwab Corporation. ----------------------------------------------------------------------------------------------------------------------- Bill Thomas, 1962 Vice President Senior Vice President, Asset Management Strategic Alliances, (6/04-present) Charles Schwab & Co., Inc. Until 2000, Managing Director, Scudder Kemper Investments. ----------------------------------------------------------------------------------------------------------------------- Michael Haydel, 1972 Vice President Vice President, Asset Management Client Services, Charles Schwab (6/05-present) & Co., Inc. Until March 2004, Director, Charles Schwab & Co., Inc. ----------------------------------------------------------------------------------------------------------------------- Alice Schulman, 1950 Clerk Vice President & Assistant Secretary, Charles Schwab Investment (1/04-present) Management, Inc.; Assistant Secretary, Schwab Funds and The Charles Schwab Bank, N.A. Until 2003, Director -- Project Management, Charles Schwab Investment Management, Inc. ----------------------------------------------------------------------------------------------------------------------- Troy Sheets, 1971 Chief Financial Officer Vice President of Financial Services, BISYS Fund Services, 2002 (9/02-9/05) to present; Senior Manager, KPMG LLP, 2000-2002; Manager, KPMG LLP, 1998-2000.
(1)The mailing address of each of the officers is 101 Montgomery Street, San Francisco, CA 94104. (2)There is no stated term of office for the officers of the Trusts. The Statement of Additional Information includes additional information about Trustees and Officers and is available, without charge, upon written request, or by calling toll-free 1.866.452.8387. 150 Laudus Trust Semi-Annual Report Definitions, Terms and Other Information 90 DAY T-BILL is a short-term discounted, government debt instrument of 90 days or less, issued in $10,000 denominations that pay its face value at maturity. The government issues Treasury bills weekly. ALPHA is a measure of a fund's risk-adjusted return. Alpha can be used to directly measure the value added or subtracted by a fund's manager. It is calculated by measuring the difference between a fund's actual returns and its expected performance given its level of market risk as measured by beta. BETA is a measure of the volatility of a stock relative to the overall market. A beta of less than one indicates lower historical risk than the market; a beta of more than one indicates higher historical risk than the market. DIVIDEND YIELD RISK measures the trailing 12 month dividend divided by current market price of the primary security of each company and is expressed in number of standard deviations from market mean. A higher reading on Yield in general means higher annual dividend yield based on current price relative to market. GDP, OR GROSS DOMESTIC PRODUCT, is the market value of the goods and services produced by labor and property in the United States. MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALASIA, FAR EAST INDEX (MSCI-EAFE(R)) is an international, unmanaged, weighted stock market index that includes over 1,000 securities listed on the stock exchanges of 21 developed market countries from Europe, Australia, and the Far East. NOMURA GLOBAL SMALL CAP INDEX EXCLUDING THE U.S. (NGSCEXUS) is an unmanaged index that represents the performance of companies in the lowest 15% by market capitalization in 22 developed markets other than the U.S. PRICE TO EARNINGS RATIO is the price of a stock divided by its historical earnings per share. PRICE TO BOOK RATIO compares the stock's market value to the value of the total assets less the total liabilities. PRICE TO CASH FLOW RATIO is the price of a stock dividend by its reported cash flow per share. RELATIVE STRENGTH is the rate that a stock falls relative to other stocks in a falling market or rises relative to other stocks in a rising market. RETURN ON EQUITY represents the amount earned on a company's common stock investment for a given period, calculated by dividing common stock equity into net income for the period after preferred stock dividends but before common stock dividends. RUSSELL 1000(R) GROWTH INDEX measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 1000(R) INDEX measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. RUSSELL 2000(R) INDEX measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. RUSSELL 2500(TM) INDEX measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index. STANDARD & POOR'S CITIGROUP WORLD EX US EXTENDED MARKET INDEX(R) (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. 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 Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request by visiting www.laudusfunds.com, the Securities and Exchange Commission's website at www.sec.gov, or by contacting Laudus Funds at 866.452.8387. Information regarding how the Funds 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.laudusfunds.com, or the Securities and Exchange Commission's website at www.sec.gov. QUARTERLY DISCLOSURE OF PORTFOLIO HOLDINGS The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' 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.laudusfunds.com. Laudus Trust Semi-Annual Report 151 (This Page Intentionally Left Blank) 152 Laudus Trust Semi-Annual Report [LAUDUS FUNDS LOGO] C O M M A N D P E R F O R M A N C E (tm) MANAGER Charles Schwab Investment Management, Inc. 101 Montgomery Street San Francisco, California 94104 SHAREHOLDER SERVICES 1.866.452.8387 Investment Professionals 1.800.447.3332 Individual Investors www.laudus.com This report is for the information of the shareholders of the Laudus Trust. Its use in connection with any offering of the Trust's shares is authorized only in case of concurrent or prior delivery of the current prospectus. 2005-3054-BAR ITEM 2. CODE OF ETHICS. Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so. NOT APPLICABLE -- ONLY FOR ANNUAL REPORTS. The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 11(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item. If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver. NOT APPLICABLE -- ONLY FOR ANNUAL REPORTS. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. (a) (1) Disclose that the registrant's board of directors has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)). (3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert. NOT APPLICABLE -- ONLY FOR ANNUAL REPORTS. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. (b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (e) (1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. (2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. (h) Disclose whether the registrant's audit committee of the board of directors has considered whether the provision of nonaudit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. NOT APPLICABLE -- ONLY FOR ANNUAL REPORTS. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. (a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state. (b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption from the listing standards for all audit committees. NOT APPLICABLE FOR TRUST -- NOT A LISTED REGISTRANT. ITEM 6. SCHEDULE OF INVESTMENTS. File Schedule I -- Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in Section 210.12-12 of Regulation S-X, unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form. COMPLETE SCHEDULE OF INVESTMENTS IS INCLUDED IN ITEM 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company's investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company's investment adviser, or any other third party, that the company uses, or that are used on the company's behalf, to determine how to vote proxies relating to portfolio securities. NOT APPLICABLE -- DISCLOSURE ONLY REQUIRED FOR CLOSED-END FUNDS. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. If the registrant is a closed-end management investment company that is filing an annual report on this Form N-CSR, provide the information specified in paragraphs (a) and (b) of this Item with respect to portfolio managers. NOT APPLICABLE -- DISCLOSURE ONLY REQUIRED FOR CLOSED-END FUNDS. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any "affiliated purchaser," as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant's equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781). NOT APPLICABLE -- DISCLOSURE ONLY REQUIRED FOR CLOSED-END FUNDS AND AFFILIATED PURCHASERS. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item. NO MATERIAL CHANGES. ITEM 11. CONTROLS AND PROCEDURES. (a) Disclose the conclusions of the registrant's principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS (I) ACCUMULATED AND COMMUNICATED TO THE INVESTMENT COMPANY'S MANAGEMENT, INCLUDING ITS CERTIFYING OFFICERS, TO ALLOW TIMELY DECISIONS REGARDING REQUIRED DISCLOSURE; AND (II) RECORDED, PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE COMMISSION'S RULES AND FORMS. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING THAT OCCURRED DURING THE SECOND FISCAL QUARTER OF THE PERIOD COVERED BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING. ITEM 12. EXHIBITS. (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. NOT APPLICABLE -- ONLY FOR ANNUAL REPORTS. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO RULE 30A-2(a) ARE ATTACHED HERETO. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. NOT APPLICABLE. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by rule 30a-2(b) under the Act as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant incorporates it by reference. CERTIFICATIONS PURSUANT TO RULE 30A-2(b) ARE FURNISHED HEREWITH. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Laudus Trust -------------------------------------------------------------------- By (Signature and Title) /s/ Daniel Kern -------------------------------------------------------- Daniel Kern, CFO Date November 28, 2005 ------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title /s/ Daniel Kern --------------------------------------------------------- Daniel Kern, CFO Date November 28, 2005 ------------------------- By (Signature and Title) /s/ Jana D. Thompson -------------------------------------------------------- Jana D. Thompson, President Date November 28, 2005 -------------------------