(PUB) Morningstar FundInvestor

April 2 014

Morningstar FundInvestor

5

Data through March 31, 2014 Laudus US Large Cap Growth

Ticker

Status Yield Total Assets

Mstar Category

LGILX Open

0.0% $2,165 mil

Large Growth

Morningstar Analyst Rating 03-31-14

Investment Style Equity Stock %

Historical Profile Return Risk Rating High Above Avg Highest

99% 97% 97% 98% 99% 97% 98% 98%

´

Manager Change Partial Manager Change

15.0 20.0 26.0 33.0

Morningstar Pillars Process Performance

Growth of $10,000

¶ ∞ ∞ ∞ ∞

Positive Positive Positive Neutral Positive

Investment Values of Fund Investment Values of S&P 500

People Parent Price

10.0

Performance Quartile (within Category) History

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 03-14

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

7.51

8.41

9.61

10.12

11.87

7.39

11.00 49.58 23.12 12.37

12.58 14.46 -0.60 -2.25

12.44 1.19 -0.92 -1.45 0.00 1.19

14.42 18.16

18.57 37.67

18.19 -2.03 -3.84 -3.15 0.00 -2.03

NAV

29.71 1.03 -0.04 0.00 29.71

11.98

14.36

5.50

-37.74 18.25

Total Return %

1.10 5.68 0.00

-10.29 9.45

12.76

-0.74 0.70 0.00

2.16 2.90 0.13

5.28 4.19 0.00

+/-S&P 500

9.10 0.09

-3.57 0.19 5.31 0.02 0.00 0.80 0.09 137 66

6.44 0.13

+/-Russ 1000Gr Income Return % Capital Return %

0.56

0.10

11.98

14.27

-37.74 18.12

49.02

14.36

18.03

37.67

34

15

7

24

27

8

57

21

20

17

96

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

0.00 0.00 0.80 0.29

0.00 0.00 0.80 -0.07

0.01 0.00 0.80 0.29 145

0.01 0.08 0.80 0.35 112

0.00 0.00 0.80 0.05 102

0.04 0.00 0.80 0.41 132 167

0.01 0.00 0.78 0.12

0.00 0.28 0.78 0.06

0.02 0.26 0.78 -0.17

0.00 1.22 0.78 0.13

0.00 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 03-31-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

87

102

72

98

96

76

2009 2010 2011 2012 2013

0.14 17.30 13.76 11.95 49.58 2.09 -12.02 14.27 11.52 14.46 6.20 1.95 -14.02 8.70 1.19 19.21 -6.81 7.24 -0.82 18.16 8.04 1.54 11.69 12.35 37.67

3

4

5

6

66

56

393

667

1,471

1,994

2,165

Portfolio Analysis 12-31-13 Share change since 09-13 Total Stocks:60 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Google, Inc. Class A SOFTBANK Corp Visa, Inc. Class A priceline.com Incorporat Precision Castparts Corp Comcast Corp Class A

Technology 31.0 -0.55 4.78 Comm Svs 29.9 -13.99 3.72 Finan Svs 28.7 1.64 3.42 Cnsmr Cyc 33.0 2.54 3.28

1 Yr 3 Yr 5 Yr

24.83 14.94 22.49 10.30

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 1000Gr

Cat

$10,000

+Avg +Avg High

+Avg +Avg

3 Mo 6 Mo 1 Yr

-2.03 -3.84 10.06 -2.45 24.83 2.97 14.94 0.28 22.49 1.33 10.30 2.88 4.90 0.44

-3.15 -1.61 1.61 0.32 0.81 2.44 1.92

96 9,797 66 11,006 33 12,483 17 15,185 16 27,574 4 26,654 38 20,494

10 Yr Incept

Avg

Industrl

22.3 -4.24 3.12

6.26

Comm Svs 20.2 -0.53 3.01

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Amazon.com Inc

Cnsmr Cyc

-15.65 2.97

.

Other Measures

Standard Index

Best Fit Index S&P 500 M* U.S. Grwth TR

Eaton Corporation PLC

Industrl

19.1 -1.85 2.59

Autodesk, Inc. Yahoo! Inc

Technology 48.3 4.29 2.48 Technology 33.1 -4.38 2.47 Hlth care 45.7 10.24 2.40 Cnsmr Cyc 17.8 -3.26 2.34 Finan Svs 29.1 -10.46 2.34 Comm Svs . -2.75 2.38

Alpha

-1.1 1.12

-0.5 1.09

Beta

Gilead Sciences Inc Liberty Global PLC Class

R-Squared

82

96

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 13.88 20 0.92 68 21.76 16 0.59 69 9.94 4 0.32 43 Potential Capital Gain Exposure: 15% of assets Morningstar’s Take by Dan Culloton 03-31-14 Laudus US Large Cap Growth is looking like itself again. Charles Schwab Investment Management, this fund’s advisor, made a big change in 2013 to stop a string of manager changes. It replaced longtime subadvisor, UBS Global Asset Management, with BlackRock Investment Management. It was less of a replacement than a reunion--the BlackRock crew’s lead manager is Lawrence Kemp, who ran this fund for more than 10 years before leaving UBS for BlackRock in November 2012. Kemp’s seven-member BlackRock squad (including him), which runs BlackRock Capital Appreciation MDFGX, includes at least three UBS expatriates who worked with Kemp during his first tour here. This fund’s Morningstar Analyst Rating dropped to Neutral when Kemp left, but it’s back to Bronze now that Kemp has returned with a rebuilt team of investors who know his process. Kemp and his current team, which officially took over on Oct. 4, 2013, are using the same approach this fund has followed for more than 10 years. Kemp still

Standard Deviation

15.52 14.94

Time Warner Inc

MasterCard Incorporated

Mean

Union Pacific Corp Walt Disney Co

Industrl

19.9 12.24 2.34

Sharpe Ratio

0.97

Cnsmr Cyc 22.2 5.77 2.23

United Technologies Corp Valeant Pharmaceuticals United Therapeutics Corp

Industrl Hlth care

18.8 3.35 2.17

12.29 2.17

.

Hlth care 31.0 -10.31 2.15 Cnsmr Cyc 26.7 -0.13 2.13

attempts to craft a compact portfolio of 40-60 stocks that fall into three broad buckets: superior, durable, and periodic growth companies. Most of the fund’s assets usually will be in the superior and durable growers, and it will keep a smaller, more opportunistic stake in the cyclical firms. Diversifying across types of growth stocks and being unafraid to trim winners, even as they continue to run--as this fund did as stocks rallied in 2013--may keep a lid on the fund’s volatility, at least relative to its peers and benchmark. This is still a compact, unabashed growth fund. It’s willing to own highly valued stocks, such as Amazon AMZN, Facebook FB, Autodesk ADSK, and Starbucks SBUX. It attempts to buy such stocks when they are down and mixes in more undervalued stocks like Eastman Chemical EMN, but this is not a tame portfolio; it has hefty helpings of tech and consumer discretionary stocks, for instance. At least an accomplished management team that’s familiar and has delivered good risk-adjusted returns with the strategy in the past is at the helm.

Nike, Inc. Class B

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 39.2 Large 42.1 Mid 18.7 Small 0.0 Micro 0.0 Avg $mil: 40,410

Value Blnd Growth

Large Mid Small

Cyclical 33.54 1.17 BasicMat 1.91 0.62 7 2 CnsmrCyc23.81 2.78 22 18 FinanSvs 7.82 0.50 10 4 Real Est 0.00 0.00 1 0 Sensitive 51.12 1.17 CommSrvs10.47 2.61 4 2 Energy 3.55 0.33 8 5 Industrl 15.11 1.33 13 7 Technlgy 21.99 1.25 38 25 Defensive15.35 0.56 CnsmrDef 2.17 0.18 10 4 Hlthcare 13.18 1.12 15 6 Utilities 0.00 0.00 0 0

h r t y u j i o p a k s d f

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

24.82 3.98 3.51 16.17 0.59 16.00 11.58 9.30 13.30 21.06

1.39 1.39 1.94 1.62 0.45 1.19 1.12 1.16 1.03 0.95

% Rel Category

Composition - Net

Cash 0.0 Stocks 99.6 Bonds 0.0 Other 0.4 Foreign 18.2

Address:

211 MAIN STREET SAN FRANCISCO, CA 94105 800-447-3332

Minimum Purchase: Min Auto Inv Plan:

$100 $100

Add: $0 IRA: $0

Add: $50

Profitability

% Rel Category

Sales Fees:

No-load, 2.00%R

Return on Equity Return on Assets Net Margin

18.53 8.59 13.70

0.89 0.88 0.97

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

www.laudus.com

Management Fee:

0.70% mx./0.55% mn., 0.00%A Mgt:0.66% Dist: .

(% of Stock)

10-14-97

Actual Fees:

Charles Schwab Investment Management Inc BlackRock Investment Management, LLC

Expense Projections: Income Distribution:

3Yr:$252

5Yr:$445 10Yr:$1006

Semi-Annually

Federated Tr NTF

Mutual Funds ß ®

© 2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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