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Investment value will fluctuate, and shares, when redeemed, may be worth more or less than original cost.

Fund concentration generally leads to greater price volatility.

There are risks associated with investing in foreign companies and emerging markets, such as erratic market conditions, economic and political instability, and fluctuations in currency and exchange rates. Investing in emerging markets accentuates those risks. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Moreover, Laudus Mondrian funds are also exposed to an increased risk of price volatility associated with less uniformity in accounting and reporting requirements.

Investments in any bond fund are subject to fluctuations in price due to issuer and credit quality, rising interest rates, inflation and call risks associated with the underlying bonds owned by the fund.

There are risks associated with investing in stocks of small- and mid-cap companies, which tend to be more volatile and less liquid than stocks of larger companies, including increased risk of price fluctuations.

Diversification does not eliminate the risk of experiencing investment losses.

The Laudus Mondrian Funds are available through the Charles Schwab & Co., Inc. (“Schwab”) Mutual Fund OneSource® service. Trades in no-load mutual funds available through the Mutual Fund OneSource service, as well as certain other funds, are available without transaction fees when placed through Schwab.com or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. Funds are also subject to management fees and expenses.

Schwab receives remuneration from fund companies participating in the Mutual Fund OneSource service for recordkeeping and shareholder services. Schwab and its affiliates may also receive fees from affiliated funds ("Schwab Affiliate Funds"), including the Laudus Funds, for certain investment advisory and administrative services, as well as shareholder and other fund services. The aggregate fees that Schwab receives from Schwab Affiliate Funds are greater than the fees received from fund companies participating in Schwab’s Mutual Fund OneSource service.

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.

1. As of 06/30/2009.
2. Correlation refers to the co-movement of returns (i.e., whether the returns are related to one another). The closer the correlation is to +1 or 1, the more closely the two return streams are related.
3. Total annual fund operating expenses. As of 07/29/2009.
4. Net expenses. Reflects expenses expected to be charged to shareholders through at least 07/30/2011 for the Funds. Advisor intends to hold expense ratio at this level by waiving management fee and/or bearing other expenses.