Schwab Announces New Laudus Large Cap Growth Fund

Growth Investors Team at UBS Brings 10-Year Track Record to Laudus Funds Investors

Monday, July 13, 2009 5:00 am PDT



Public Company Information:


SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab Investment Management, Inc. the asset management subsidiary of The Charles Schwab Corporation, has announced the newest addition to its Laudus Funds lineup – the Laudus Growth Investors U.S. Large Cap Growth Fund, successor to the UBS U.S. Large Cap Growth Fund.

The Fund seeks to benefit from the proven management of the portfolio management team at Growth Investors, who have managed the fund and its predecessor since 2002. The portfolio management team will utilize the Laudus model of making institutional-quality investment managers available for advisers and individual investors in relatively low-cost investment products.

“Large Cap Growth is a significant mutual fund category key to the success of well-diversified portfolios. We’re excited to make this available to Schwab clients,” said Jeff Mortimer, president of Laudus Funds and chief investment officer of Charles Schwab Investment Management, Inc. “The Growth Investors team has more than 20 years of investment industry experience, and we’re proud to make that experience available to Schwab clients.”

The Laudus Growth Investors U.S. Large Cap Growth Fund will continue to use a “pure growth” strategy, with a goal of consistent performance through the application of fundamental growth discipline and research to identify companies believed to have potential for sustainable above-average sales and profit growth.

Under the reorganization approved by shareholders, the Laudus Growth Investors U.S. Large Cap Growth Fund will retain the performance history and four-star Morningstar rating of its predecessor, the UBS U.S. Large Cap Growth Fund. The UBS Fund was ranked overall 4 stars out of 1565 funds in the Morningstar Large-Cap Growth category based on risk-adjusted return as of 06/30/2009*. Investors in the UBS fund became investors in the Laudus Fund as of the close of business on July 10, 2009.

“Under partnerships with AXA Rosenberg, Mondrian Investment Partners, and now Growth Investors, the Laudus Funds are able to put some of the best minds in the business to work for independent advisers and investors,” said Mortimer. “Our new partnership with Growth Investors gives our clients access to a global leader in large-cap growth investing at a highly competitive price.”

The fund will be available for a low minimum initial investment of $100. It addition, the fund will have no loads or transaction fees, and its net operating expense ratio (0.78%) is significantly below the Morningstar category average (1.37%).

Fund Management

Jeff Mortimer is President of Laudus Funds and Chief Investment Officer of Charles Schwab Investment Management, Inc. He has overall responsibility for Schwab Funds, Laudus Funds and managed accounts. He joined CSIM in October 1997. Mr. Mortimer has more than 15 years experience in asset allocation analysis and mutual fund selection. He earned an MBA degree, with an emphasis in finance, from the University of Chicago Graduate School of Business in 1992.

Lawrence Kemp, CFA, is the co-portfolio manager of the fund. Mr. Kemp is the head of the UBS U.S. Large Cap Growth Equity portfolio team and has 23 years of investment experience. He joined UBS Global Asset Management in 1992 and has worked in roles including co-head of fixed income and chief investment strategist. He joined the Growth Investors team in 2001.

Phil Ruvinsky, CFA, is the co-portfolio manager and senior investment analyst for the Fund. He joined UBS Global Asset Management in 2003.

About Charles Schwab Investment Management, Inc.

Founded in 1989, Charles Schwab Investment Management, Inc., a subsidiary of The Charles Schwab Corporation, is one of the nation's largest asset management companies with more than $228 billion in assets under management as of March 31, 2009. It is among the country's largest money market fund managers and is the third-largest provider of retail index funds. In addition to managing Schwab proprietary funds, the firm provides oversight for the institutional-style, sub-advised Laudus Fund family. The firm currently manages 85 mutual funds.

About Growth Investors

A global leader in asset management under the umbrella of UBS Global Asset Management, Growth Investors is a high-quality global growth manager focusing on high-alpha growth strategies, both in the U.S. and internationally. Growth Investors adheres to a disciplined investment process comprising both quantitative analysis and independent fundamental research, followed by distinct portfolio construction techniques to ensure consistent application of the growth style. The Fund’s management team comprises seasoned professionals with an average of more than 20 years of investment industry experience. The portfolio team on the Fund has been in place since 2002.

About Laudus Funds

Laudus Funds was founded in 2004 and now has more than $3 billion in assets under management as of March 31, 2009, in 16 funds managed by some of the world’s leading investment managers. The Laudus management team and sub-advisers adhere to highly disciplined management approach to ensure that the Funds are managed to optimize performance in diverse market conditions. The Laudus Funds’ line-up is designed to meet the needs of investment advisers and sophisticated investors.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.5 million client brokerage accounts, 1.5 million corporate retirement plan participants, 567,000 banking accounts, and $1.2 trillion in client assets as of May 31, 2009. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at (0509-9284)

* Morningstar proprietary ratings reflect historical risk-adjusted performance as of 06/30/2009. The Laudus Growth Investors U.S. Large Cap Growth Fund was ranked 4 stars overall in the Large-Cap Growth category as of 06/30/2009. The Overall Morningstar rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, ten-year (if applicable) Morningstar Rating metrics. It was rated 5 stars out of 1565 funds for the three-year period ending 06/30/2009. It was rated 5 stars out of 1294 funds for the five-year period ending 06/30/2009. It was rated 3 stars out of 663 funds for the 10 year period ending 06/30/2009. For each fund with 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 effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. (Each share class 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 5 stars, 22.5% receive 4 stars, 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star.

2009 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Past performance, rankings and ratings are no guarantee of future results. The performance of the fund during the 10 year period was negative.


An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the fund’s prospectus. To obtain a prospectus, visit or call 800.447.3332. Please read the prospectus carefully before investing.

Investments in the Laudus Growth Investors U.S. Large Cap Growth Fund involve risk, including loss of principal. Equity securities (stocks) are more volatile and carry more risk than other forms of investments. Foreign investing involves special risks such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates. The Fund is also exposed to an increased risk of price volatility associated with less uniformity in accounting and reporting requirements. The Fund’s use of derivatives involves risks different from or possibly greater than the risks associated with investing directly in securities and other traditional investments.

CFA Institute marks are trademarks owned by the CFA Institute.

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

©2009 Charles Schwab & Co., Inc. Member SIPC. FSC LAU001977-123109 (07/09)

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Jeff Mortimer, president of Laudus Funds and chief investment officer for Charles Schwab Investment Management, Inc. (Photo: Business Wire)

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