Laudus Trust
06/01/2026 | Press release | Distributed by Public on 06/01/2026 13:57
Annual Report by Investment Company (Form N-CSR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05547
Laudus Trust
(Exact name of registrant as specified in charter)
425 Market Street, Suite 1700, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Omar Aguilar
Laudus Trust
425 Market Street, Suite 1700, San Francisco, California 94105
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 648-5300
Date of fiscal year end: March 31
Date of reporting period: March 31, 2026
Item 1: Report(s) to Shareholders.
Annual Report |
March 31, 2026
Schwab Select Large Cap Growth Fund
Ticker Symbol: LGILX
This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.
You
can find additional information about the fund at
www.schwabassetmanagement.com/prospectus
. You can also request this
information by calling
1-866-414-6349
or by sending an email request to
.
If you purchase or
hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to
shareholders and other information about the fund are available from your financial intermediary.
FUND COSTS FOR THE LAST year ENDED March 31, 2026
(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)
|
COSTS OF A
$10,000 INVESTMENT
|
COSTS PAID AS A
PERCENTAGE OF A
$10,000 INVESTMENT
|
|
|
Schwab Select Large Cap Growth Fund
|
$80
|
0.74%
|
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
For the 12-month period ended March 31, 2026, the fund returned 15.44%. The S&P 500
®
Index, which serves as the fund's
regulatory index and provides a broad measure of market performance, returned 17.80%. The Russell 1000
®
Growth Index which
returned 18.81%, is the fund's additional index, and is more representative of the fund's investment universe than the regulatory
index. Over the 12-month reporting period, both of the fund's active subadvisers posted positive returns.
J.P. Morgan Investment Management Inc. (JP Morgan)
underperformed its comparative index. As of March 31, 2026,
JP Morgan managed 38.9% of the fund's net assets.
■
Detracted from total return:
●
Financials sector securities, including Fiserv, Inc. (which
was sold prior to the end of the reporting period)
●
Utilities sector securities
■
Contributed to total return:
●
Information technology sector securities, including
NVIDIA Corp.
●
Communication services sector securities
■
From an individual security perspective:
●
Eli Lilly & Co. was the largest detractor from total return
●
NVIDIA Corp. was the largest contributor to total return
American Century Investment Management, Inc. (American
Century) underperformed its comparative index. As of March 31,
2026, American Century managed 58.1% of the fund's net
assets.
■
Detracted from total return:
●
Health care sector securities, including UnitedHealth
Group, Inc. (which was sold prior to the end of the reporting
period)
●
Financials sector securities
■
Contributed to total return:
●
Information technology sector securities, including
NVIDIA Corp.
●
Communication services sector securities
■
From an individual security perspective:
●
Oracle Corp. was the largest detractor from total return
●
NVIDIA Corp. was the largest contributor to total return
Portfolio holdings may have changed
since
the report date.
Schwab Select Large Cap Growth Fund | Annual Report
1
REG127392-01 00324188
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns
and principal value of an investment will fluctuate so that an investor's shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.
To obtain performance information current to the most
recent month end, please visit
www.schwabassetmanagement.com/prospectus
.
Performance of Hypothetical $10,000 Investment (March 31, 2016 - March 31, 2026)
1,2
Average Annual Total Returns
|
Fund and Inception Date
|
1 Year
|
5 Years
|
10 Years
|
|
Schwab Select Large Cap Growth Fund (10/10/1997)*
,1,2
|
15.44%
|
8.66%
|
14.94%
|
|
S&P 500
®
Index
3
|
17.80%
|
12.06%
|
14.16%
|
|
Russell 1000
®
Growth Index
|
18.81%
|
12.76%
|
16.83%
|
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs,
which
would lower
performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see www.schwabassetmanagement.com/glossary.
*
Inception date is that of the fund's predecessor fund, the Class Y Shares of the UBS U.S. Large Cap Growth Fund.
1
Fund expenses may have been partially absorbed by the investment adviser. Without these reductions, the fund's returns would have been lower.
These returns do not
reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Prior to September 15, 2023, the fund had a different subadviser. The performance history of the fund prior to that date is attributable to the previous subadviser.
3
The S&P 500
®
Index serves as the fund's regulatory index and provides a broad measure of market performance. The Russell 1000
®
Growth Index is the fund's additional
index and is more representative of the fund's investment universe than the regulatory index.
2
Schwab Select Large Cap Growth Fund | Annual Report
Statistics
|
Net Assets (millions)
|
$1,981
|
|
Number of Holdings
(excludes derivatives)
|
120
|
|
Portfolio Turnover Rate
|
39%
|
|
Advisory Fees Paid by the Fund
|
$13,643,986
|
|
Weighted Average Market Cap (millions)
|
$1,746,436
|
|
Price/Earnings Ratio (P/E)
|
33.1
|
|
Price/Book Ratio (P/B)
|
10.1
|
|
Long Term Capital Gain Distribution
|
$283,151,999
|
Sector Weightings % of Investments
1
Top Equity Holdings % of Net
Assets
Portfolio holdings may have
changed
since the report date.
The Sector/Industry classifications in this rep
ort use the
Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc.
(MSCI) and Standard & Poor's (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc.
1
Excludes derivatives.
2
Includes the fund's position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.
Schwab Select Large Cap Growth Fund | Annual Report
3
AVAILABILITY OF ADDITIONAL INFORMATION
You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,
holdings, certain tax information, proxy voting information, and other information about the fund online at
www.schwabassetmanagement.com/prospectus
.
Proxy Voting Policies, Procedures and Results
A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available
without charge, upon request, by visiting the Schwab Funds' website at
www.schwabassetmanagement.com/prospectus
, the
SEC's website at
www.sec.gov
, or by contacting Schwab Funds at 1-877-824-5615.
Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended
June 30 is available, without charge, by visiting the fund's website at
www.schwabassetmanagement.com/prospectus
or the
SEC's website at
www.sec.gov
, by calling
1-866-414-6349
, or by sending an email request to
.
4
Schwab Select Large Cap Growth Fund | Annual Report
Item 2: Code of Ethics.
| (a) |
Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party. |
| (c) |
During the period covered by the report, no amendments were made to the provisions of this code of ethics. |
| (d) |
During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics. |
| (e) |
Not applicable. |
| (f)(1) |
Registrant has filed this code of ethics as an exhibit pursuant to Item 19(a)(1) of Form N-CSR. |
Item 3: Audit Committee Financial Expert.
Registrant's Board of Trustees has determined that Kimberly S. Patmore, Michael J. Beer and J. Derek Penn, each currently serving on its audit, compliance and valuation committee, are each an "audit committee financial expert," as such term is defined in Item 3 of Form N-CSR. Each member of Registrant's audit, compliance and valuation committee is "independent" under the standards set forth in Item 3 of Form N-CSR.
The designation of each of Ms. Patmore, Mr. Beer and Mr. Penn as an "audit committee financial expert" pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant's audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant's audit, compliance and valuation committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of one series which has a fiscal year-end of March 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to the operational series during 2026 and 2025 fiscal years, as applicable.
The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:
|
(a)Audit Fees1 |
(b)Audit-Related Fees | (c) Tax Fees2 | (d) All Other Fees | |||||||||||||||||||||||||
|
Fiscal Year 2026 |
Fiscal Year 2025 |
Fiscal Year 2026 |
Fiscal Year 2025 |
Fiscal Year 2026 |
Fiscal Year 2025 |
Fiscal Year 2026 |
Fiscal Year 2025 |
|||||||||||||||||||||
|
$ 33,300 |
$ | 33,300 | $ | 0 | $ | 0 | $ | 3,285 | $ | 3,285 | $ | 0 | $ | 0 | ||||||||||||||
| 1 |
The nature of the services includes audit of the registrant's annual financial statements and normally provided services in connection with regulatory filings for those fiscal years. |
| 2 |
The tax fees consist of professional services relating to tax compliance, tax advice, tax planning, and the preparation of the Registrant's tax returns. |
(e) (1) Registrant's audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above that were approved by Registrant's audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant's principal accountant for services rendered to Registrant, to Registrant's investment adviser, and to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant.
| 2026: $2,186,868 | 2025: $1,533,328 |
(h) During the past fiscal year, all non-audit services provided by Registrant's principal accountant to either Registrant's investment adviser or to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committee's pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant's independence.
(i) Not applicable.
(j) Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included under Item 7 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Annual Holdings and Financial Statements | March 31, 2026
Schwab Select Large Cap Growth Fund
Ticker Symbol LGILX
In This Report
|
Item 7 - Financial Statements and Financial Highlights for Open-End
Management Investment Companies
|
|
|
Financial Statements and Portfolio Holdings
|
2
|
|
Financial Notes
|
9
|
|
Report of Independent Registered Public Accounting Firm
|
18
|
|
Item 8 - Changes in and Disagreements with Accountants for Open-End
Management Investment Companies
|
19
|
|
Item 9 - Proxy Disclosures for Open-End Management Investment
Companies
|
20
|
|
Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End
Management Investment Companies
|
21
|
|
Item 11 - Statement Regarding Basis for Approval of Investment Advisory
Contract
|
22
|
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management®
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor's (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
|
|
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
1
Schwab Select Large Cap Growth Fund
Financial Statements
FINANCIAL HIGHLIGHTS
|
|
4/1/25-
3/31/26
|
4/1/24-
3/31/25
|
4/1/23-
3/31/24
|
4/1/22-
3/31/23
|
4/1/21-
3/31/22
|
|
|
Per-Share Data
|
||||||
|
Net asset value at beginning of period
|
$23.42
|
$24.07
|
$19.87
|
$26.64
|
$29.23
|
|
|
Income (loss) from investment operations:
|
||||||
|
Net investment income (loss)1
|
(0.04
)
|
(0.03
)
|
(0.02
)
|
0.01
|
(0.09
)
|
|
|
Net realized and unrealized gains (losses)
|
3.95
|
1.45
|
8.07
|
(4.48
)
|
1.69
|
|
|
Total from investment operations
|
3.91
|
1.42
|
8.05
|
(4.47
)
|
1.60
|
|
|
Less distributions:
|
||||||
|
Distributions from net realized gains
|
(3.68
)
|
(2.07
)
|
(3.85
)
|
(2.30
)
|
(4.19
)
|
|
|
Net asset value at end of period
|
$23.65
|
$23.42
|
$24.07
|
$19.87
|
$26.64
|
|
|
Total return
|
15.44
%
|
4.75
%
|
43.44
%
|
(15.94
%)
|
3.88
%
|
|
|
Ratios/Supplemental Data
|
||||||
|
Ratios to average net assets:
|
||||||
|
Total expenses
|
0.74
%
|
0.73
%
|
0.74
%
|
0.75
%2
|
0.71
%
|
|
|
Net investment income (loss)
|
(0.16
%)
|
(0.14
%)
|
(0.09
%)
|
0.03
%
|
(0.28
%)
|
|
|
Portfolio turnover rate
|
39
%
|
26
%
|
63
%
|
49
%
|
50
%
|
|
|
Net assets, end of period (x 1,000,000)
|
$1,981
|
$1,981
|
$2,196
|
$1,876
|
$2,926
|
|
|
1
|
Calculated based on the average shares outstanding during the period.
|
|
2
|
Ratio includes less than 0.005% of non-routine proxy expenses.
|
See financial notes
2
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Portfolio Holdings as of March 31, 2026
|
SECURITY
|
NUMBER
OF SHARES
|
VALUE ($)
|
|
COMMON STOCKS 95.3% OF NET ASSETS
|
||
|
|
||
|
Automobiles & Components 3.8%
|
||
|
Tesla, Inc. *
|
204,009
|
75,840,346
|
|
|
||
|
Capital Goods 6.8%
|
||
|
3M Co.
|
74,539
|
10,825,299
|
|
Acuity, Inc.
|
24,041
|
6,736,769
|
|
Advanced Drainage Systems, Inc.
|
48,475
|
6,647,377
|
|
Deere & Co.
|
10,444
|
5,883,105
|
|
Donaldson Co., Inc.
|
50,333
|
4,271,762
|
|
GE Vernova, Inc.
|
20,406
|
17,812,397
|
|
General Electric Co.
|
38,754
|
10,997,223
|
|
HEICO Corp.
|
10,322
|
2,830,292
|
|
Howmet Aerospace, Inc.
|
45,830
|
10,561,982
|
|
Johnson Controls International PLC
|
46,653
|
6,109,210
|
|
Nordson Corp.
|
11,926
|
3,173,032
|
|
Quanta Services, Inc.
|
11,069
|
6,077,102
|
|
Rocket Lab Corp. *
|
32,816
|
2,107,444
|
|
Rolls-Royce Holdings PLC
|
170,269
|
2,586,799
|
|
RTX Corp.
|
50,911
|
9,820,732
|
|
Trane Technologies PLC
|
4,154
|
1,731,138
|
|
Vertiv Holdings Co., Class A
|
65,759
|
16,477,890
|
|
Westinghouse Air Brake Technologies
Corp.
|
37,422
|
9,352,132
|
|
|
134,001,685
|
|
|
|
||
|
Commercial & Professional Services 0.4%
|
||
|
Cintas Corp.
|
14,708
|
2,487,711
|
|
Planet Labs PBC *
|
196,201
|
5,483,818
|
|
|
7,971,529
|
|
|
|
||
|
Consumer Discretionary Distribution & Retail 5.8%
|
||
|
Alibaba Group Holding Ltd., ADR
|
56,138
|
7,043,074
|
|
Amazon.com, Inc. *
|
489,156
|
101,876,520
|
|
AutoZone, Inc. *
|
313
|
1,057,245
|
|
Carvana Co. *
|
2,396
|
753,254
|
|
MercadoLibre, Inc. *
|
504
|
871,426
|
|
Sea Ltd., ADR *
|
749
|
62,025
|
|
Tractor Supply Co.
|
59,864
|
2,711,839
|
|
Wayfair, Inc., Class A *
|
12,280
|
923,579
|
|
|
115,298,962
|
|
|
|
||
|
Consumer Durables & Apparel 0.1%
|
||
|
DR Horton, Inc.
|
15,002
|
2,058,574
|
|
|
||
|
Consumer Services 1.3%
|
||
|
Booking Holdings, Inc.
|
1,237
|
5,208,166
|
|
Chipotle Mexican Grill, Inc. *
|
108,137
|
3,461,465
|
|
DoorDash, Inc., Class A *
|
1,461
|
219,369
|
|
McDonald's Corp.
|
27,307
|
8,486,742
|
|
Viking Holdings Ltd. *
|
54,654
|
4,015,976
|
|
Wingstop, Inc.
|
22,110
|
3,426,387
|
|
|
24,818,105
|
|
|
|
||
|
Consumer Staples Distribution & Retail 2.3%
|
||
|
Costco Wholesale Corp.
|
27,951
|
27,851,215
|
|
Dollar General Corp.
|
22,137
|
2,628,326
|
|
SECURITY
|
NUMBER
OF SHARES
|
VALUE ($)
|
|
Walmart, Inc.
|
123,736
|
15,377,910
|
|
|
45,857,451
|
|
|
|
||
|
Energy 0.8%
|
||
|
Cheniere Energy, Inc.
|
3,399
|
964,500
|
|
EOG Resources, Inc.
|
24,595
|
3,555,699
|
|
Exxon Mobil Corp.
|
68,875
|
11,685,333
|
|
|
16,205,532
|
|
|
|
||
|
Financial Services 5.4%
|
||
|
Berkshire Hathaway, Inc., Class B *
|
18,871
|
9,042,983
|
|
Goldman Sachs Group, Inc.
|
17,565
|
14,859,814
|
|
Interactive Brokers Group, Inc., Class A
|
177,809
|
11,925,650
|
|
Intercontinental Exchange, Inc.
|
11,980
|
1,884,214
|
|
Mastercard, Inc., Class A
|
118,341
|
59,130,264
|
|
MSCI, Inc.
|
5,544
|
2,988,272
|
|
Robinhood Markets, Inc., Class A *
|
7,292
|
505,336
|
|
Tradeweb Markets, Inc., Class A
|
31,519
|
3,708,526
|
|
Visa, Inc., Class A
|
6,993
|
2,113,564
|
|
|
106,158,623
|
|
|
|
||
|
Food, Beverage & Tobacco 1.5%
|
||
|
Coca-Cola Co.
|
144,374
|
10,979,643
|
|
Monster Beverage Corp. *
|
90,269
|
6,540,892
|
|
Philip Morris International, Inc.
|
75,818
|
12,535,748
|
|
|
30,056,283
|
|
|
|
||
|
Health Care Equipment & Services 2.4%
|
||
|
Abbott Laboratories
|
65,788
|
6,754,454
|
|
Hims & Hers Health, Inc. *
|
10,040
|
208,430
|
|
IDEXX Laboratories, Inc. *
|
12,601
|
7,080,376
|
|
Insulet Corp. *
|
31,317
|
6,571,559
|
|
Intuitive Surgical, Inc. *
|
43,840
|
20,209,802
|
|
McKesson Corp.
|
8,331
|
7,209,314
|
|
|
48,033,935
|
|
|
|
||
|
Household & Personal Products 0.3%
|
||
|
Procter & Gamble Co.
|
37,163
|
5,367,824
|
|
|
||
|
Insurance 0.1%
|
||
|
Arthur J Gallagher & Co.
|
8,783
|
1,902,222
|
|
|
||
|
Materials 0.6%
|
||
|
Ecolab, Inc.
|
33,977
|
9,038,561
|
|
Freeport-McMoRan, Inc.
|
50,865
|
2,989,845
|
|
|
12,028,406
|
|
|
|
||
|
Media & Entertainment 13.9%
|
||
|
Alphabet, Inc., Class A
|
609,555
|
175,283,636
|
|
Meta Platforms, Inc., Class A
|
117,935
|
67,474,152
|
|
Netflix, Inc. *
|
340,228
|
32,712,922
|
|
ROBLOX Corp., Class A *
|
1,184
|
66,967
|
|
|
275,537,677
|
|
|
|
||
|
Pharmaceuticals, Biotechnology & Life Sciences 7.8%
|
||
|
AbbVie, Inc.
|
27,875
|
6,062,534
|
|
Alnylam Pharmaceuticals, Inc. *
|
50,334
|
16,654,010
|
|
Amgen, Inc.
|
19,159
|
6,741,094
|
|
Ascendis Pharma AS, ADR *
|
32,318
|
7,392,096
|
See financial notes
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
3
Schwab Select Large Cap Growth Fund
Portfolio Holdings as of March 31, 2026 (continued)
|
SECURITY
|
NUMBER
OF SHARES
|
VALUE ($)
|
|
Bristol-Myers Squibb Co.
|
64,237
|
3,895,974
|
|
Eli Lilly & Co.
|
39,280
|
36,128,566
|
|
Gilead Sciences, Inc.
|
91,572
|
12,762,390
|
|
Insmed, Inc. *
|
78,927
|
12,906,143
|
|
Johnson & Johnson
|
71,661
|
17,516,815
|
|
Merck & Co., Inc.
|
79,702
|
9,587,353
|
|
Natera, Inc. *
|
44,796
|
8,958,752
|
|
Regeneron Pharmaceuticals, Inc.
|
11,116
|
8,588,666
|
|
Vertex Pharmaceuticals, Inc. *
|
13,433
|
5,998,372
|
|
|
153,192,765
|
|
|
|
||
|
Semiconductors & Semiconductor Equipment 20.7%
|
||
|
Advanced Micro Devices, Inc. *
|
34,535
|
7,025,455
|
|
Analog Devices, Inc.
|
62,276
|
19,812,487
|
|
Applied Materials, Inc.
|
60,159
|
20,561,745
|
|
ASML Holding NV
|
10,969
|
14,586,094
|
|
Broadcom, Inc.
|
204,714
|
63,361,030
|
|
Lam Research Corp.
|
28,440
|
6,076,490
|
|
NVIDIA Corp.
|
1,489,966
|
259,850,069
|
|
Taiwan Semiconductor Manufacturing
Co. Ltd., ADR
|
31,826
|
10,755,597
|
|
Texas Instruments, Inc.
|
42,895
|
8,327,635
|
|
|
410,356,602
|
|
|
|
||
|
Software & Services 11.0%
|
||
|
AppLovin Corp., Class A *
|
6,179
|
2,459,242
|
|
Cloudflare, Inc., Class A *
|
77,929
|
16,079,870
|
|
Crowdstrike Holdings, Inc., Class A *
|
1,636
|
638,711
|
|
Datadog, Inc., Class A *
|
81,047
|
9,567,598
|
|
Docusign, Inc. *
|
48,379
|
2,293,648
|
|
Dynatrace, Inc. *
|
78,951
|
2,919,608
|
|
Fair Isaac Corp. *
|
6,544
|
6,985,982
|
|
International Business Machines Corp.
|
42,934
|
10,406,772
|
|
Intuit, Inc.
|
3,574
|
1,545,326
|
|
Microsoft Corp.
|
290,546
|
107,551,413
|
|
Okta, Inc. *
|
38,911
|
3,062,685
|
|
Oracle Corp.
|
77,481
|
11,398,230
|
|
Palantir Technologies, Inc., Class A *
|
91,168
|
13,336,055
|
|
ServiceNow, Inc. *
|
15,025
|
1,570,864
|
|
Shopify, Inc., Class A *
|
5,586
|
662,611
|
|
Snowflake, Inc., Class A *
|
62,272
|
9,391,863
|
|
Synopsys, Inc. *
|
20,451
|
8,108,413
|
|
Twilio, Inc., Class A *
|
15,054
|
1,894,094
|
|
Zscaler, Inc. *
|
57,280
|
8,035,811
|
|
|
217,908,796
|
|
|
|
||
|
Technology Hardware & Equipment 9.8%
|
||
|
Amphenol Corp., Class A
|
172,833
|
21,837,450
|
|
Apple, Inc.
|
559,446
|
141,981,800
|
|
SECURITY
|
NUMBER
OF SHARES
|
VALUE ($)
|
|
Celestica, Inc. *
|
12,553
|
3,535,929
|
|
Ciena Corp. *
|
38,114
|
14,796,998
|
|
Lumentum Holdings, Inc. *
|
6,433
|
4,520,855
|
|
Western Digital Corp.
|
28,349
|
7,668,121
|
|
|
194,341,153
|
|
|
|
||
|
Transportation 0.3%
|
||
|
Uber Technologies, Inc. *
|
10,092
|
725,918
|
|
Union Pacific Corp.
|
22,776
|
5,525,913
|
|
|
6,251,831
|
|
|
|
||
|
Utilities 0.2%
|
||
|
Constellation Energy Corp.
|
6,764
|
1,888,847
|
|
Vistra Corp.
|
15,119
|
2,272,839
|
|
|
4,161,686
|
|
|
Total Common Stocks
(Cost $978,376,620)
|
1,887,349,987
|
|
|
|
|
|
|
SHORT-TERM INVESTMENTS 3.5% OF NET ASSETS
|
||
|
|
||
|
Money Market Funds 3.5%
|
||
|
State Street Institutional U.S. Government
Money Market Fund, Premier Class
3.60% (a)
|
70,454,800
|
70,454,800
|
|
Total Short-Term Investments
(Cost $70,454,800)
|
70,454,800
|
|
|
Total Investments in Securities
(Cost $1,048,831,420)
|
1,957,804,787
|
|
|
|
NUMBER OF
CONTRACTS
|
NOTIONAL
AMOUNT
($)
|
CURRENT VALUE/
UNREALIZED
DEPRECIATION
($)
|
|
FUTURES CONTRACTS
|
|||
|
Long
|
|||
|
NASDAQ 100 Index, e-mini,
expires 06/18/26
|
126
|
60,265,800
|
(436,868
)
|
|
*
|
Non-income producing security.
|
|
(a)
|
The rate shown is the annualized 7-day yield.
|
|
ADR -
|
American Depositary Receipt
|
The following is a summary of the inputs used to value the fund's investments as of March 31, 2026:
|
DESCRIPTION
|
QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1)
|
OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3)
|
TOTAL
|
|
Assets
|
||||
|
Common Stocks1
|
$1,476,993,385
|
$-
|
$-
|
$1,476,993,385
|
|
Semiconductors & Semiconductor Equipment
|
395,770,508
|
14,586,094
|
-
|
410,356,602
|
|
Short-Term Investments1
|
70,454,800
|
-
|
-
|
70,454,800
|
See financial notes
4
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Portfolio Holdings as of March 31, 2026 (continued)
|
DESCRIPTION
|
QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1)
|
OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
|
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3)
|
TOTAL
|
|
Liabilities
|
||||
|
Futures Contracts2
|
($436,868
)
|
$-
|
$-
|
($436,868
)
|
|
Total
|
$1,942,781,825
|
$14,586,094
|
$-
|
$1,957,367,919
|
|
1
|
As categorized in the Portfolio Holdings.
|
|
2
|
Futures contracts are reported at cumulative unrealized appreciation or depreciation.
|
See financial notes
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
5
Schwab Select Large Cap Growth Fund
Statement of Assets and Liabilities
As of March 31, 2026
|
Assets
|
||
|
Investments in securities, at value - unaffiliated issuers (cost $1,048,831,420)
|
|
$1,957,804,787
|
|
Cash
|
|
4,362
|
|
Deposit with broker for futures contracts
|
|
4,627,174
|
|
Receivables:
|
|
|
|
Investments sold
|
|
13,580,428
|
|
Fund shares sold
|
|
6,764,974
|
|
Dividends
|
|
667,227
|
|
Variation margin on future contracts
|
|
474,458
|
|
Foreign tax reclaims
|
|
13,880
|
|
Prepaid expenses
|
+
|
21,317
|
|
Total assets
|
|
1,983,958,607
|
|
|
||
|
Liabilities
|
||
|
Payables:
|
|
|
|
Fund shares redeemed
|
|
1,268,602
|
|
Investment adviser fees
|
|
1,055,176
|
|
Investments bought
|
|
324,335
|
|
Sub-accounting and sub-transfer agent fees
|
|
152,568
|
|
Accrued expenses
|
+
|
107,094
|
|
Total liabilities
|
|
2,907,775
|
|
Net assets
|
|
$1,981,050,832
|
|
|
||
|
Net Assets by Source
|
||
|
Capital received from investors
|
|
$966,513,303
|
|
Total distributable earnings
|
+
|
1,014,537,529
|
|
Net assets
|
|
$1,981,050,832
|
|
Net Asset Value (NAV)
|
||||
|
Net Assets
|
÷
|
Shares
Outstanding
|
=
|
NAV
|
|
$1,981,050,832
|
|
83,779,240
|
$23.65
|
|
|
|
|
|||
|
|
|
|||
See financial notes
6
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Statement of Operations
|
For the period April 1, 2025 through March 31, 2026
|
||
|
Investment Income
|
||
|
Dividends received from securities - unaffiliated issuers (net of foreign withholding tax of $39,717)
|
|
$12,435,038
|
|
Other Interest
|
+
|
141,453
|
|
Total investment income
|
|
12,576,491
|
|
|
||
|
Expenses
|
||
|
Investment adviser fees
|
|
13,643,986
|
|
Sub-accounting and sub-transfer agent fees
|
|
2,050,113
|
|
Accounting and administration fees
|
|
100,408
|
|
Independent trustees' fees
|
|
75,191
|
|
Professional fees
|
|
75,071
|
|
Registration fees
|
|
53,820
|
|
Shareholder reports
|
|
35,774
|
|
Custodian fees
|
|
35,367
|
|
Transfer agent fees
|
|
12,428
|
|
Other expenses
|
+
|
20,277
|
|
Total expenses
|
-
|
16,102,435
|
|
Net investment loss
|
|
(3,525,944
)
|
|
|
||
|
REALIZED AND UNREALIZED GAINS (LOSSES)
|
||
|
Net realized gains on sales of securities - unaffiliated issuers
|
|
215,475,992
|
|
Net realized gains on futures contracts
|
|
8,047,407
|
|
Net realized gains on forward foreign currency exchange contracts
|
|
53,090
|
|
Net realized gains on foreign currency transactions
|
+
|
4,122
|
|
Net realized gains
|
|
223,580,611
|
|
Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers
|
|
96,243,281
|
|
Net change in unrealized appreciation (depreciation) on futures contracts
|
|
1,250,433
|
|
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts
|
|
(5,576
)
|
|
Net change in unrealized appreciation (depreciation) on foreign currency translations
|
+
|
1,889
|
|
Net change in unrealized appreciation (depreciation)
|
|
97,490,027
|
|
Net realized and unrealized gains
|
|
321,070,638
|
|
Increase in net assets resulting from operations
|
|
$317,544,694
|
See financial notes
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
7
Schwab Select Large Cap Growth Fund
Statement of Changes in Net Assets
For the current and prior report periods
|
OPERATIONS
|
|||
|
|
4/1/25-3/31/26
|
4/1/24-3/31/25
|
|
|
Net investment loss
|
|
($3,525,944
)
|
($3,038,276
)
|
|
Net realized gains
|
|
223,580,611
|
257,850,413
|
|
Net change in unrealized appreciation (depreciation)
|
+
|
97,490,027
|
(138,902,064
)
|
|
Increase in net assets resulting from operations
|
|
$317,544,694
|
$115,910,073
|
|
|
|||
|
DISTRIBUTIONS TO SHAREHOLDERS
|
|||
|
Total distributions
|
|
($283,151,999
)
|
($172,553,943
)
|
|
TRANSACTIONS IN FUND SHARES
|
|||||
|
|
4/1/25-3/31/26
|
4/1/24-3/31/25
|
|||
|
|
|
SHARES
|
VALUE
|
SHARES
|
VALUE
|
|
Shares sold
|
|
6,491,822
|
$168,665,679
|
8,150,938
|
$212,108,907
|
|
Shares reinvested
|
|
9,207,513
|
236,541,028
|
5,402,036
|
145,692,937
|
|
Shares redeemed
|
+
|
(16,510,460
)
|
(439,357,311
)
|
(20,184,737
)
|
(516,080,757
)
|
|
Net transactions in fund shares
|
|
(811,125
)
|
($34,150,604
)
|
(6,631,763
)
|
($158,278,913
)
|
|
|
|||||
|
SHARES OUTSTANDING AND NET ASSETS
|
|||||
|
|
4/1/25-3/31/26
|
4/1/24-3/31/25
|
|||
|
|
|
SHARES
|
NET ASSETS
|
SHARES
|
NET ASSETS
|
|
Beginning of period
|
|
84,590,365
|
$1,980,808,741
|
91,222,128
|
$2,195,731,524
|
|
Total increase (decrease)
|
+
|
(811,125
)
|
242,091
|
(6,631,763
)
|
(214,922,783
)
|
|
End of period
|
|
83,779,240
|
$1,981,050,832
|
84,590,365
|
$1,980,808,741
|
See financial notes
8
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Financial Notes
1. Business Structure of the Fund:
The Schwab Select Large Cap Growth Fund (the fund) is the only series of Laudus Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act).
The fund offers one share class. Shares are bought and sold at closing net asset value per share, which is the price for all outstanding shares of the fund. Each share has no par value, and the fund's Board of Trustees may authorize the issuance of as many shares as necessary.
The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the fund may also keep certain assets in segregated accounts, as required by securities law. The "Schwab Funds Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
Investment Objective
The Schwab Select Large Cap Growth Fund's goal is to seek long-term capital appreciation. Under normal circumstances, the fund invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in equity securities of U.S. large capitalization companies.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 946 Financial Services - Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).
During this reporting period, the fund adopted FASB Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which enhances income tax disclosures, including disclosure of income taxes paid disaggregated by jurisdiction. The adoption of ASU 2023-09 did not result in any material changes to the fund's financial statement presentation or disclosure.
The fund may invest in mutual funds and exchange-traded funds, which are referred to as "underlying funds." For more information about the underlying funds' operations and policies, please refer to those funds' semiannual and annual reports and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and available on the SEC's website at www.sec.gov.
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees has designated authority to a Valuation Designee, the fund's investment adviser, to make fair valuation determinations under adopted procedures, subject to Board of Trustees oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund's portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
● Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of the fund's holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter "arbitrage" market timers, who seek to exploit delays between the change in the value of the fund's portfolio holdings and the net asset value of the fund's shares and seeks to help ensure that the prices at which the fund's shares are purchased and redeemed
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
9
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
2. Significant Accounting Policies (continued):
are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of the fund and that of its comparative index or benchmark.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Forward foreign currency exchange contracts: Forward foreign currency exchange contracts are valued based on that day's forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.
● Mutual funds: Mutual funds are valued at their respective net asset values.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund's securities when market prices are not "readily available" or are unreliable. For example, a security may be fair valued when it's de-listed or its trading is halted or suspended; when a security's primary pricing source is unable or unwilling to provide a price; or when a security's primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee's judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 - quoted prices in active markets for identical investments - Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, exchange-traded funds and futures contracts. Mutual funds and exchange-traded funds are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2, or Level 3 in the fair value hierarchy.
● Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close hours before the valuation of the fund's holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
● Level 3 - significant unobservable inputs (including the Valuation Designee's assumptions in determining the fair value of investments) - Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund's results of operations.
10
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
2. Significant Accounting Policies (continued):
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund's investments are disclosed in the fund's Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are contracts to buy and sell a currency at a set price on a future date. The value of the forward foreign currency exchange contracts is accounted for as unrealized appreciation or depreciation until the contracts settle, at which time the gains or losses are realized.
Passive Foreign Investment Companies: The fund may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The fund may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities - unaffiliated issuers in the fund's Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations, if any, in the fund's Statement of Operations. The fund does not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the fund on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the fund records a liability based on unrealized appreciation to provide for potential non-U.S. taxes payable upon the sale of these securities. These capital gain taxes, if any, are paid by the fund and are disclosed in the fund's Statement of Operations in Net realized gain (losses) on securities - unaffiliated issuers (net of foreign capital gains tax paid). Foreign capital gain taxes accrued as of March 31, 2026, if any, are reflected in the fund's Statement of Assets and Liabilities.
When the fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
11
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the fund records certain foreign security dividends on the date the ex-dividend date is confirmed. Non-cash dividends in the form of additional securities are recorded on the ex-dividend date at fair value, if any. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities and there are no significant uncertainties on collectibility in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received. Foreign withholding tax expensed during the period, if any, is disclosed in Dividends received from securities - unaffiliated issuers (net of foreign withholding tax) in the Statement of Operations and is representative of taxes paid during the period.
(e) Expenses:
Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the Schwab Funds Complex generally are allocated among those funds in proportion to their average daily net assets.
(f) Distributions to Shareholders:
The fund makes distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.
(g) Accounting Estimates:
The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It's possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.
(h) Federal Income Taxes:
The fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax. The fund did not pay any federal taxes during the period.
(i) Foreign Taxes:
The fund may be subject to foreign taxes (a portion of which may be reclaimable) on investment income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the fund invests. These foreign taxes, if any, are paid by the fund and are disclosed in the fund's Statement of Operations and Statement of Assets and Liabilities.
(j) Segment Reporting:
An operating segment is defined in ASC Topic 280 Segment Reporting as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available.
The management committee of the fund's investment adviser acts as the fund's CODM. The CODM has determined that the fund operates as a single operating segment given the fund has a single defined investment strategy disclosed in its respective prospectus. The discrete financial information in the form of the fund's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, shares sold and shares redeemed), which is used by the CODM to assess performance against the prospectus and to make resource allocation decisions with respect to the fund, is presented within the fund's financial statements.
12
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
2. Significant Accounting Policies (continued):
(k) Indemnification:
Under the fund's organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects the risk of loss attributable to these arrangements to be remote.
3. Affiliates and Affiliated Transactions:
Investment Adviser
Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund's investment adviser pursuant to the Management Contract (Advisory Agreement) between the investment adviser and the trust. American Century Investment Management Inc. (ACIM) and J.P. Morgan Investment Management Inc. (JP Morgan), the fund's subadvisers, provide day-to-day portfolio management services to the fund, subject to the supervision of the investment adviser.
For its advisory services to the fund, the investment adviser is entitled to receive an annual fee, payable monthly, based on a percentage of the fund's average daily net assets as follows:
|
% OF AVERAGE DAILY NET ASSETS
|
|
|
First $500 million
|
0.700
%
|
|
$500 million to $1 billion
|
0.650
%
|
|
$1 billion to $1.5 billion
|
0.600
%
|
|
$1.5 billion to $2 billion
|
0.575
%
|
|
Over $2 billion
|
0.550
%
|
For the period ended March 31, 2026, the aggregate net advisory fee paid to the investment adviser by the fund was 0.62% (annualized), as a percentage of the fund's average daily net assets.
The investment adviser (not the fund) pays a portion of the advisory fees it receives to the subadvisers in return for their portfolio management services.
Shareholder Servicing
The Board of Trustees have authorized the fund to reimburse, out of the assets of the fund, financial intermediaries, including Charles Schwab & Co., Inc. (a broker-dealer affiliate of the investment adviser, Schwab) (together, "service providers") that provide sub-accounting and sub-transfer agency services in connection with the fund's shares in an amount of up to 0.10% of the average daily net assets of the fund on an annual basis. The sub-accounting and sub-transfer agency fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the fund (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab's written agreement with the fund), and the fund will pay no more than 0.10% of the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service provider. Payments are made as described above without regard to whether the fee is more or less than the service provider's actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.
Expense Limitation
The investment adviser has agreed, until at least July 30, 2027, to limit the total annual fund operating expenses charged excluding acquired fund fees and expenses, interest, taxes and certain non-routine expenses to 0.77%. Acquired fund fees and expenses are indirect expenses incurred by a fund through its investments in underlying funds.
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
13
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
3. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
Funds in the Schwab Funds Complex may own shares of other funds in the Schwab Funds Complex. The table below reflects the percentage of shares of the fund in this report that is owned by other funds in the Schwab Funds Complex as of March 31, 2026, as applicable:
|
Schwab Balanced Fund
|
5.2
%
|
|
Schwab Target 2010 Fund
|
0.1
%
|
|
Schwab Target 2015 Fund
|
0.1
%
|
|
Schwab Target 2020 Fund
|
0.6
%
|
|
Schwab Target 2025 Fund
|
0.8
%
|
|
Schwab Target 2030 Fund
|
2.6
%
|
|
Schwab Target 2035 Fund
|
2.2
%
|
|
Schwab Target 2040 Fund
|
4.7
%
|
|
Schwab Target 2045 Fund
|
1.5
%
|
|
Schwab Target 2050 Fund
|
1.7
%
|
|
Schwab Target 2055 Fund
|
1.3
%
|
|
Schwab Target 2060 Fund
|
0.6
%
|
|
Schwab Target 2065 Fund
|
0.2
%
|
|
Schwab Target 2070 Fund
|
0.0
%*
|
|
*
|
Less than 0.05%
|
Interfund Transactions
The fund's investment adviser or subadvisers may engage in direct transactions with other funds they manage in accordance with procedures adopted by the Board of Trustees pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser or subadvisers. For the period ended March 31, 2026, the fund did not have any purchases and sales of securities with other funds managed by the investment adviser or subadvisers.
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Schwab Funds Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board of Trustees. The fund had no interfund borrowing or lending activity during the period.
4. Board of Trustees:
The Board of Trustees may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such "interested persons" who may serve on a trust's board, and the trust was in compliance with these limitations throughout the report period. The fund did not pay any of these interested persons for their services as trustees, but did pay non-interested persons (independent trustees), as noted in the fund's Statement of Operations.
5. Borrowing from Banks:
During the period, the fund was a participant with other funds in the Schwab Funds Complex in a joint, syndicated, committed $1.2 billion line of credit (the Syndicated Credit Facility), which matured on September 25, 2025. On September 25, 2025, the Syndicated Credit Facility was amended to run for a new 28 day period with the line of credit amount remaining unchanged, maturing on October 23, 2025. On October 23, 2025, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on October 22, 2026. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund's proportionate share of the unused portion of the Syndicated Credit Facility.
14
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
5. Borrowing from Banks (continued):
During the period, the fund was a participant with other funds in the Schwab Funds Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility) with State Street Bank and Trust Company, which matured on September 25, 2025. On September 25, 2025, the Uncommitted Credit Facility was amended to run for a new 28 day period with the line of credit amount remaining unchanged, maturing on October 23, 2025. On October 23, 2025, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on October 22, 2026. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount the fund borrows. There were no borrowings by the fund from either line of credit during the period.
The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed in the fund's Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
6. Derivatives:
The fund entered into futures contracts during the report period to equitize available cash. The fund also invested in forward foreign currency exchange contracts to minimize the uncertainty of changes in future foreign currency exchange rates and to hedge exposure to certain currencies.
As of March 31, 2026, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:
|
|
EQUITY CONTRACTS
|
TOTAL
|
|
Liability Derivatives
|
||
|
Futures Contracts1
|
($436,868
)
|
($436,868
)
|
|
|
|
|
1
|
Includes cumulative unrealized appreciation of futures contracts as reported in each fund's Portfolio Holdings. Only current day's variation margin on futures contracts is
reported in the Statement of Assets and Liabilities.
|
The effects of the derivative contracts in the Statement of Operations for the period ended March 31, 2026, were:
|
|
EQUITY CONTRACTS
|
FOREIGN
CURRENCY
EXCHANGE
CONTRACTS
|
TOTAL
|
|
Net Realized Gains (Losses)
|
|||
|
Futures Contracts1
|
$8,047,407
|
$-
|
$8,047,407
|
|
Forward Foreign Currency Exchange Contracts1
|
-
|
53,090
|
53,090
|
|
Net Change in Unrealized Appreciation (Depreciation)
|
|||
|
Futures Contracts2
|
$1,250,433
|
$-
|
$1,250,433
|
|
Forward Foreign Currency Exchange Contracts2
|
-
|
(5,576
)
|
(5,576
)
|
|
|
|
|
1
|
Statement of Operations location: Net realized gains (losses) on futures contracts and Net realized gains (losses) on forward foreign currency exchange contracts.
|
|
2
|
Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts and Net change in unrealized appreciation (depreciation) on
forward foreign currency exchange contracts.
|
During the period ended March 31, 2026, the month-end average notional amounts of futures contracts held by the fund and the month-end average number of contracts held were as follows:
|
NOTIONAL AMOUNT
|
NUMBER OF CONTRACTS
|
|
$39,508,236
|
84
|
|
|
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
15
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
6. Derivatives (continued):
During the period ended March 31, 2026, the month-end average notional amounts of forward foreign currency exchange contracts held by the fund and the month-end average unrealized appreciation (depreciation) were as follows:
|
NOTIONAL AMOUNT
|
UNREALIZED APPRECIATION (DEPRECIATION)
|
|
$1,774,650
|
($2,968
)
|
|
|
7. Purchases and Sales of Investment Securities:
For the period ended March 31, 2026, purchases and sales of securities (excluding short-term obligations) were as follows:
|
PURCHASES
OF SECURITIES
|
SALES
OF SECURITIES
|
|
$831,864,021
|
$1,161,825,267
|
8. Federal Income Taxes:
As of March 31, 2026, the tax basis cost of the fund's investments and gross unrealized appreciation and depreciation were as follows:
|
|
TAX COST
|
GROSS UNREALIZED
APPRECIATION
|
GROSS UNREALIZED
DEPRECIATION
|
NET UNREALIZED
APPRECIATION
(DEPRECIATION)
|
|
$1,061,561,198
|
$941,942,740
|
($46,136,019
)
|
$895,806,721
|
|
The primary differences between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales and the realization for tax purposes of unrealized appreciation or depreciation on futures contracts. The tax cost of the fund's investments, disclosed above, have been adjusted from its book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.
As of March 31, 2026, the components of distributable earnings on a tax basis were as follows:
|
UNDISTRIBUTED
LONG-TERM
CAPITAL GAINS
|
NET UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS
|
NET OTHER UNREALIZED
APPRECIATION
(DEPRECIATION)
|
CAPITAL LOSS
CARRYFORWARDS AND OTHER LOSSES
|
TOTAL
|
|
$119,394,944
|
$895,806,721
|
$1,840
|
($665,976
)
|
$1,014,537,529
|
For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended March 31, 2026, the fund had late-year ordinary losses deferred of $665,976.
As of March 31, 2026, the fund had no capital loss carryforwards available to offset future realized capital gains for federal income tax purposes.
The tax basis components of distributions paid during the current and prior fiscal years were as follows:
|
|
CURRENT FISCAL YEAR END DISTRIBUTIONS
|
PRIOR FISCAL YEAR END DISTRIBUTIONS
|
|
|
|
LONG-TERM
CAPITAL
GAINS
|
ORDINARY
INCOME
|
LONG-TERM
CAPITAL
GAINS
|
|
|
$283,151,999
|
$18,898,785
|
$153,655,158
|
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
16
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Schwab Select Large Cap Growth Fund
Financial Notes (continued)
8. Federal Income Taxes (continued):
Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.
As of March 31, 2026, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund's financial statements. During the fiscal year ended March 31, 2026, the fund did not incur any interest or penalties.
9. Subsequent Events:
Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
17
Schwab Select Large Cap Growth Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Laudus Trust and Shareholders of Schwab Select Large Cap Growth Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab Select Large Cap Growth Fund (the "Fund"), the sole Fund constituting Laudus Trust, as of March 31, 2026, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the "financial statements and financial highlights"). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2026, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2026, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Denver, Colorado
May 15, 2026
Denver, Colorado
May 15, 2026
We have served as the auditor of one or more investment companies in the Schwab Funds Complex since 2020.
18
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
19
Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
20
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The remuneration paid to directors, officers and others are included under Item 7 (Financial Statements and Financial Highlights for Open-End Management Investment Companies).
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
21
Statement Regarding Basis for Approval of Investment Advisory Contract
Not applicable.
22
Schwab Select Large Cap Growth Fund | Annual Holdings and Financial Statements
MFR55508-16
00324202
00324202
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
The changes in and disagreements with accountants for open-end management investment companies are included under Item 7 of this Form.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
The proxy disclosures for open-end management investment companies are included under Item 7 of this Form.
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The remuneration paid to directors, officers and others are included under Item 7 of this Form.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.
The statement regarding basis for approval of investment advisory contract is included under Item 7 of this Form.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: Controls and Procedures.
(a) Based on their evaluation of Registrant's disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant's Principal Executive Officer, Omar Aguilar and Registrant's Principal Financial Officer, Dana Smith, have concluded that Registrant's disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant's officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
(b) During the period covered by this report, there have been no changes in Registrant's internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant's internal control over financial reporting.
Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation.
(a) Not applicable.
(b) Not applicable.
Item 19: Exhibits.
| (a) |
(1) |
| (2) |
Not applicable. |
| (3) |
Separate certifications for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (the "1940 Act"), are attached. |
| (b) |
A certification for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Laudus Trust
| By: | /s/ Omar Aguilar | |
|
Omar Aguilar Principal Executive Officer (Chief Executive Officer) |
||
| Date: | May 15, 2026 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Omar Aguilar | |
|
Omar Aguilar Principal Executive Officer (Chief Executive Officer) |
||
| Date: | May 15, 2026 | |
| By: | /s/ Dana Smith | |
|
Dana Smith Principal Financial Officer (Chief Financial Officer) |
||
| Date: |
May 15, 2026 |
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