Laudus International MarketMasters Fund

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 877-252-8387. Please read the prospectus carefully before investing. Past performance is not an indication of future results.

1. Reflects the total annual operating expenses without the effect of contractual fee waivers.
2. Schwab and the investment adviser have agreed to limit the “net operating expenses (excluding interest, taxes and certain non-routine expenses) of the Investor Shares and Select Shares to 1.65% and 1.47%, respectively, for so long as the investment adviser serves as adviser to the fund.

International investing involves special risks such as currency fluctuation and political instability.

Diversification strategies do not assure a profit and do not protect against losses in declining markets.

The Laudus International MarketMasters Fund was ranked 3 stars out of 202 funds in the Foreign Large Growth category for the three-year period ending 09/30/2009. It was ranked 3 stars out of 153 funds for the five-year period ending 09/30/2009 and 4 stars out of 81 funds for the 10 year period ended 09/30/2009. For at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-adjusted Return measure that accounts for variation in a fund's monthly performance (including the effect of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. (Each share is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages). The top 10% of the funds in an investment category receive five stars, 22.5% receive four stars, 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star. Morningstar gives ratings of four or five stars to the top 33.3% of all fund (of the 33%, 10% get five stars and 22.5% get four stars) based on their risk adjusted returns.

The Morgan Stanley Capital International Europe, Australasia, Far East Index (MSCI EAFE®) is a free float-adjusted market capitalization index that is designed to measure equity market performance in 21 developed market countries, excluding the U.S. and Canada.

Approximately 2,100 funds participate in the Mutual Fund OneSource® service. Only these funds, including Schwab Affiliate Funds, are eligible for the OneSource Select List. Schwab receives remuneration from fund companies, and/or their affiliates, in the Mutual Fund OneSource service for record keeping, shareholder services, and other administrative services. Schwab and its affiliates also receive fees from the Schwab Affiliate Funds for investment advisory, administrative and transfer agency services, as well as shareholder and other fund services. Select List as of 09/30/2009.

The Laudus Group® of Funds includes the Laudus Rosenberg, Laudus Mondrian, and Laudus Growth Investors Funds, which are part of the Laudus Trust and Laudus Institutional Trust and distributed by ALPS Distributors, Inc.; and the Laudus MarketMasters Funds®, which are part of the Schwab Capital Trust and distributed by Charles Schwab & Co., Inc. Charles Schwab & Co., Inc. and ALPS Distributors, Inc. are unaffiliated entities.