Securities lending risk. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.
Exchange traded fund (ETF) risk. When the fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in an ETF can result in its value being more volatile than the underlying portfolio of
securities.
Leverage risk. Certain fund transactions, such as derivatives, may give rise to a form of leverage and may expose the fund to greater risk. Leverage tends to magnify the effect of any increase or decrease in the value of the
fund’s portfolio securities.
Liquidity
risk. A particular investment may be difficult to purchase or sell. The fund may be unable to sell illiquid securities at an advantageous time or price.
Your investment in the fund is not a bank
deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
For more information on the risks of investing
in the fund please see the “Fund details” section in the prospectus.
Performance
The bar chart below shows how the fund's
investment results have varied from year to year, and the following table shows how the fund's average annual total returns for various periods compared to that of an index. This information provides some indication of the risks of investing in the
fund. All figures assume distributions were reinvested. Keep in mind that future performance (both before and after taxes) may differ from past performance. For current performance information, please see
www.laudus.com/prospectus.
Annual total returns (%) as of 12/31
Best quarter: 31.55% Q2 2009
Worst quarter: (18.23%) Q3 2011
Year-to-date
performance (non-annualized and pre-tax) as of 6/30/2014: 8.16%
Average annual total returns (%) as of 12/31/13
|
1
year |
5
years |
Since
Inception
(4/24/08) |
Before
taxes |
(9.82%)
|
12.34%
|
(0.83%)
|
After
taxes on distributions |
(9.98%)
|
12.24%
|
(0.96%)
|
After
taxes on distributions and sale of shares |
(5.10%)
|
10.18%
|
(0.42%)
|
Comparative
Index (reflects no deduction for expenses or taxes) |
|
|
|
MSCI
Emerging Markets Index (Net) |
(2.60%)
|
14.79%
|
(0.53%)
|
The after-tax figures reflect the highest
individual federal income tax rates in effect during the period and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation. In addition, after-tax returns are not relevant if you
hold your fund shares through a tax-deferred arrangement, such as a 401(k) plan, IRA or other tax-advantaged account.
Investment adviser
Charles Schwab Investment Management,
Inc.
Subadviser
Mondrian Investment Partners Limited
Portfolio managers
Andrew Miller,
Chief Investment Officer-Emerging Markets Equities Team of the subadviser, has been a portfolio manager of the fund since its inception.
Ginny Chong
(CFA), Senior Portfolio Manager-Emerging Markets Equities Team of the subadviser, has been a portfolio manager of the fund since its inception.
Purchase and sale of fund shares
The fund is open for business each day that
the New York Stock Exchange is open. The minimum initial investment is $1,000,000. There is no minimum subsequent investment. The minimum may be waived for certain investors or in the fund’s sole discretion.
You may invest directly in the fund by placing
purchase, exchange and redemption orders through the fund's transfer agent. Investors must contact the transfer agent by phone or in writing to obtain an account application. Investors may contact the transfer agent:
•by telephone at
1-
800-447-3332; or
•by mail to Boston
Financial Data Services, Attn: Laudus Funds, P.O. Box 8032,
Boston,
MA 02266.
When you place orders to purchase, exchange or
redeem fund shares through Charles Schwab & Co., Inc. (Schwab) or another financial intermediary, you must follow Schwab’s or the other financial intermediary’s transaction procedures.
Tax information
Dividends and capital gains distributions
received from the fund will generally be taxable as ordinary income or capital gains, unless you are investing through an IRA, 401(k) or other tax-advantaged account.
Payments to financial intermediaries
If you purchase shares of the fund through a
broker-dealer or other financial intermediary (such as a bank), the fund and its related companies may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the
broker-dealer or other financial intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial intermediary’s
website for more information.