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Past due by almost 3 years 54% complete

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Proc-Type: 2001,MIC-CLEAR
Originator-Name: [email protected]
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Proc-Type: 2001,MIC-CLEAR
Originator-Name: [email protected]
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yeOnUvqigm2NeOIg6ZrE6A==

0000950134-06-004115.txt : 20060302
0000950134-06-004115.hdr.sgml : 20060302
20060302150848
ACCESSION NUMBER: 0000950134-06-004115
CONFORMED SUBMISSION TYPE: N-CSR
PUBLIC DOCUMENT COUNT: 4
CONFORMED PERIOD OF REPORT: 20051231
FILED AS OF DATE: 20060302
DATE AS OF CHANGE: 20060302
EFFECTIVENESS DATE: 20060302

FILER:

COMPANY DATA:	
	COMPANY CONFORMED NAME:			LAUDUS VARIABLE INSURANCE TRUST
	CENTRAL INDEX KEY:			0001058265
	IRS NUMBER:				046861560
	STATE OF INCORPORATION:			MA
	FISCAL YEAR END:			1231

FILING VALUES:
	FORM TYPE:		N-CSR
	SEC ACT:		1940 Act
	SEC FILE NUMBER:	811-08759
	FILM NUMBER:		06659501

BUSINESS ADDRESS:	
	STREET 1:		101 MONTGOMERY STREET
	CITY:			SAN FRANCISCO
	STATE:			CA
	ZIP:			94104
	BUSINESS PHONE:		800-447-3332

MAIL ADDRESS:	
	STREET 1:		101 MONTGOMERY STREET
	CITY:			SAN FRANCISCO
	STATE:			CA
	ZIP:			94104

FORMER COMPANY:	
	FORMER CONFORMED NAME:	BARR ROSENBERG VARIABLE INSURANCE TRUST
	DATE OF NAME CHANGE:	19980624
0001058265 S000011012 Laudus Rosenberg VIT Value Long/Short Equity Fund C000030407 Class 1 C000030408 Class 2 N-CSR 1 f16426nvcsr.txt 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: 811-08759

                   The Laudus Variable Insurance Trust
             -----------------------------------------------
           (Exact name of registrant as specified in charter)

         101 Montgomery Street, San Francisco, California 94104
   -------------------------------------------------------------------
           (Address of principal executive offices) (Zip code)

                             Evelyn Dilsaver

                   The Laudus Variable Insurance Trust
         101 Montgomery Street, San Francisco, California 94104
       -----------------------------------------------------------
                 (Name and address of agent for service)

Registrant's telephone number, including area code: (415) 627-7000

Date of fiscal year end: December 31

Date of reporting period: December 31, 2005

ITEM 1: REPORT(s) TO SHAREHOLDERS.

ANNUAL REPORT
December 31, 2005 (LAUDUS FUNDS LOGO)

                                                     COMMAND PERFORMANCE(TM)

Laudus Rosenberg VIT Value Long/Short Equity Fund

The Fund is a series of Laudus Variable Insurance Trust, which is an open-end
management investment company.

Charles Schwab Investment Management, Inc. is the Manager to the Fund and AXA
Rosenberg Investment Management LLC is the Sub-adviser.

Table of Contents

1 MANAGEMENT'S DISCUSSION
 3   PERFORMANCE AND FUND FACTS

 5   FUND EXPENSES

 6   FINANCIAL STATEMENTS AND NOTES

30   REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
     FIRM

31   APPROVALS OF INVESTMENT ADVISORY AND
     SUB-ADVISORY AGREEMENTS

34   TRUSTEES AND OFFICERS

36   DEFINITIONS, TERMS AND OTHER INFORMATION

The Fund is a series of the Laudus Variable Insurance Trust (the "Trust"), an
open-end management investment company. Except as explicitly described
otherwise, the investment objective and policies of the Fund may be changed
without shareholder approval. The Fund is advised by Charles Schwab Investment
Management, Inc. ("CSIM"). AXA Rosenberg Investment Management LLC ("AXA
Rosenberg") acts as Sub-adviser to the Fund. The Fund is distributed by ALPS
DISTRIBUTORS, INC.

Management's Discussion for the one-year period ended December 31, 2005

MARKET OVERVIEW

The U.S. equity markets showed modest gains in 2005. Robust corporate earnings,
resilient global growth, increased merger and acquisition activity, a benign
economic environment, and a lack of significant geopolitical crises helped
offset rising interest rates, higher energy costs, and environmental disasters
to propel some U.S. market indexes to multi-year highs. For the year, the S&P
500 Index(R) returned just 4.9% as U.S. investors tried to cope with rising
interest rates and increased fund flows to overseas markets.

It was another very positive year for commodities as many precious metals and
base metals reached all time highs. Continued demand from China, supply
disruptions and low stockpiles helped push the commodity market higher. Gold hit
a twenty-four year peak and copper, zinc, and aluminum reached all time highs.
On the back of the commodity rally this year, Energy was the best performing
U.S. sector while Consumer Discretionary and Telecommunications were the main
laggards. The Russell 1000(R) Growth Index returned 5.3%, the Russell 1000(R)
Value Index returned 7.1% and the Russell 2000(R) Index, a major index for U.S.
small-cap stocks, returned 4.5%.

The U.S. dollar ended the year at a much stronger level than had been
anticipated when the year began. Positive interest rate differentials and
repatriation of profits by U.S. companies taking advantage of a tax incentive
supported the dollar as it eclipsed its major rivals for the year. The dollar
gained 12.7% against the euro and 14.9% against the yen.

The U.S. economy grew this year at a rate greater than 3%, ignoring the impact
of hurricanes, higher energy prices and rising interest rates. In spite of this
positive economic news, the equity markets showed mediocre performance compared
to global peers. U.S. investors were generally nervous about the domestic market
as rising interest rates and natural disasters kept "animal spirits" well caged.
The Federal Reserve Open Market Committee raised rates for the 13th consecutive
time to 4.25%, although comments at the end of the year indicate that rate
increases may be coming to an end. Stubbornly low long-term rates produced a
conundrum for the Federal Reserve and a late-year yield inversion did not help
the equity markets as history has shown this may indicate an impending
recession.

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND PERFORMANCE OVERVIEW

TOTAL RETURNS BELOW are for the one-year period ended 12/31/05. For performance
details see pages 3-4.

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND(1)



Class 2 shares 90-Day U.S. Treasury Bills (T-bills)
7.51% 3.34%

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL
866.452.8387.

Total returns include change in share price and reinvestment of distributions.
Total returns reflect the waiver of a portion of a Fund's advisory fees for
certain periods since the inception date. In such instances, and without the
waiver of fees, total returns would have been lower.

Total returns do not reflect the additional fees and expenses imposed by the
insurance company under the variable insurance product contract. If those
contract fees and expenses were included, the returns would be less than those
shown. Please refer to the variable insurance product prospectus for a complete
listing of these expenses.

Investments in long/short funds are more volatile and risky than some other
forms of investments. Since they have both long and short portfolios, an
investment will involve risks associated with twice the number of investment
decisions made for a typical stock fund. These types of funds typically have a
high portfolio turnover that could increase transaction costs and cause short-
term capital gains to be realized. While it may be the intent of the Manager to
take long positions in stocks that outperform the market and short positions in
stocks that underperform the market, there is no assurance that the Manager will
be successful.

The Fund may sell a security short by borrowing it from a third party and
selling it at the then-current market price. The Fund is obligated to buy the
security on a later date so it can return the security to the lender. Short
sales involve the risk that the Fund will incur a loss by subsequently buying a
security at a higher price than the price at which the Fund previously sold the
security short. Moreover, because the Fund's loss on a short sale arises from
increases in the value of the security sold short, the extent of such loss is
theoretically unlimited.

Since risk in the Long/Short Funds relates specifically to the Manager's stock
selection techniques and not to any systematic or economy-wide factors, the
proper benchmark is an asset that also has the least exposure to systematic
influences. 90-day T-bills are such an asset. The full faith and credit of the
U.S. government back an investment in 90-day T-bills. T-bills have a

                            Laudus Variable Insurance Trust Annual Report  1

Management's Discussion continued

fixed rate of return, and investors do not bear the risk of losing their
investment. The income received from T-bills is free from state income tax.

(1) Value-based investments are subject to the risk that the broad market may
not recognize their value.

THE LAUDUS ROSENBERG VALUE LONG/SHORT EQUITY FUND The Laudus Rosenberg Value
Long/Short Equity Fund (the Fund), Class 2 Shares, were up 7.51% during the
year, outperforming its benchmark 90-day T-bill return of 3.34%. The Fund
invests long in equities the manager deems attractive, and short in equities the
manager deems unattractive. These positions are maintained to nearly equal
dollar levels, but still result in exposures to general equity market
characteristics like industry weights and style factors. In particular, the Fund
has a modest long exposure both to Value characteristics and to factors
consistent with near-terms earnings growth, such as recent price-performance, or
Relative Strength. During 2005, the Fund benefited from these net long
exposures. Another favorable element in the portfolio was an under-exposure to
leverage: the Fund benefited from owning lower leverage stocks during the rising
interest rate environment. Industry exposures were not a large contributor at
the net level, but long positions in basic inputs such as Energy helped the
fund, as did long positions in Insurance. The worst performer was a net short
position in REITs, which have continued to thrive as long rates stay low despite
the Federal Reserve's tightening campaign. The losses in REITs were offset
somewhat by long positions in Construction & Homebuilding firms, which serves as
a natural hedge. Contributions to return came from both the longs and short
positions.

2 Laudus Variable Insurance Trust Annual Report

Performance and Fund Facts

Laudus Rosenberg VIT Value Long/Short Equity Fund as of 12/31/05

PERFORMANCE OF A HYPOTHETICAL $10,000 INVESTMENT IN CLASS 2 SHARES(1) - ------------------------------------------------------------------------------------------------------------------------

Graphs

CLASS 2 SHARES 90-DAY T-BILLS -------------- -------------- 5/1/03 10,000 10,000 12/03 9,640 10,060 12/04 9,990 10,210 12/05 10,740 10,549

AVERAGE ANNUAL TOTAL RETURNS(1)


CLASS AND INCEPTION DATE 1 YEAR SINCE INCEPTION Class 2 Shares (5/1/03) 7.51% 2.71% 90-day T-bills 3.34% 2.02%

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE, AND CURRENT RETURNS MAY BE LOWER OR HIGHER. THE
PERFORMANCE INFORMATION DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. TO
OBTAIN PERFORMANCE INFORMATION CURRENT TO THE MOST RECENT MONTH END, PLEASE CALL
866.452.8387.

Investments in long/short funds are more volatile and risky than some other
forms of investments. Since they have both long and short portfolios, an
investment will involve risks associated with twice the number of investment
decisions made for a typical stock fund. These types of Funds typically have a
high portfolio turnover that could increase transaction costs and cause
short-term capital gains to be realized. While it may be the intent of the
Manager to take long positions in stocks that outperform the market and short
positions in stocks that underperform the market, there is no assurance that the
Manager will be successful.

The Fund uses the return that an investor could achieve through an investment in
3-month U.S. T-bills as a benchmark against which to measure the Fund's
performance. AXA Rosenberg attempts to achieve returns for the Fund's
shareholders, which exceed the benchmark. An investment in the Fund is different
from an investment in 3-month U.S. T-bills because, among other differences,
U.S. T-bills are backed by the full faith and credit of the U.S. Government,
U.S. T-bills have a fixed rate of return, investors in U.S. T-bills do not risk
losing their investment, and an investment in the Fund is more volatile than an
investment in U.S. T-bills.

Value-based investments are subject to the risk that the broad market may not
recognize their value.

(1) Total returns include change in share price and reinvestment of
distributions. Total returns reflect the waiver of a portion of a Fund's
advisory fees for certain periods since the inception date. In such
instances, and without the waiver of fees, total returns would have been
lower. Total returns do not reflect the additional fees and expenses imposed
by the insurance company under the variable insurance product contract. If
those contract fees and expenses were included, the returns would be less
than those shown. Please refer to the variable insurance product prospectus
for a complete listing of these expenses.

                           Laudus Variable Insurance Trust Annual Report  3

Performance and Fund Facts continued

Laudus Rosenberg VIT Value Long/Short Equity Fund as of 12/31/05

Class 2 FUND OVERVIEW(1) Shares - ------------------------------------------------------------- Inception Date 5/1/03 Total Net Assets ($ x 1,000) $144,730 Cusip 51855U102 NAV $10.74 Expense Ratio(2) 3.21% Expense Ratio(3) 1.99%
FUND CHARACTERISTICS(1) Long Short - ---------------------------------------------------------- Number of Securities 906 501 Median Market Capitalization $2,241 $2,600 ($ x 1,000,000) Portfolio Turnover 122.98% 197.61% (One year trailing) Price to Earnings (P/E) 20.66 83.85 Price to Book (P/B) 2.12 2.80 Price to Cash Flow 13.90 16.63 Beta 1.22 1.32 Return on Equity 11.15% 3.35% Five-Year Earnings Growth 28.90% 13.73%
TOP EQUITY HOLDINGS(1) % of Net Assets Long - ------------------------------------------------------------- Celgene Corp. 1.2% Darden Restaurants, Inc. 1.0% Cognizant Technology Solutions Corp., Class A 1.0% Allegheny Technologies, Inc. 0.9% KB HOME 0.9% A.G. Edwards, Inc. 0.9% Beazer Homes USA, Inc. 0.9% SL Green Realty Corp. 0.8% BMC Software, Inc. 0.8% Autoliv, Inc. 0.8% TOTAL 9.2% TOP EQUITY HOLDINGS(1) % of Net Assets Short - ------------------------------------------------------------- E*TRADE Financial Corp. -1.1% Smurfit-Stone Container Corp. -1.0% Plum Creek Timber Co. -1.0% Amylin Pharmaceuticals, Inc. -0.9% Boston Properties, Inc. -0.9% Janus Capital Group, Inc. -0.9% ChoicePoint, Inc. -0.9% Willis Group Holdings Ltd. -0.9% NCR Corp. -0.9% Tiffany & Co. -0.9% TOTAL -9.4%

PORTFOLIO COMPOSITION(1) % of Net Assets


SECTOR WEIGHTINGS--LONG HOLDINGS

PIE GRAPH

Consumer Discretionary 25.3 Financials 19.7 Information Technology 18.9 Industrials 12.8 Materials 7 Health Care 5.7 Energy 4.8 Consumer Staples 2.1 Utilities 2.1 Telecommunication Services 1.6

PORTFOLIO COMPOSITION(1) % of Net Assets


SECTOR WEIGHTINGS--SHORT POSITIONS

PIE GRAPH

Financials 25.4 Consumer Discretionary 22.1 Information Technology 18.8 Health Care 10.2 Industrials 9.3 Materials 6.8 Utilities 2.9 Consumer Staples 2.5 Energy 1 Telecommunication Services 1

(1) Portfolio holdings are subject to change and may not represent current or
future holdings.

(2) Reflects any applicable contractual limitations by Manager to waive its
management fee and/or bear certain expenses. This amount includes dividend
expense on securities sold short.

(3) Reflects any applicable contractual limitations by Manager to waive its
management fee and/or bear certain expenses, exclusive of nonrecurring
account fees, extraordinary expenses and dividend expenses on securities
sold short.

4 Laudus Variable Insurance Trust Annual Report

Fund Expenses (Unaudited)

EXAMPLES FOR A $1,000 INVESTMENT

As a fund shareholder, you may incur two types of costs: transactions costs,
such as redemption fees; and, ongoing costs, such as management fees, transfer
agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost
(in dollars) of investing in a fund and to compare this cost with the ongoing
cost of investing in other mutual funds. These examples are based on an
investment of $1,000 invested for six-months beginning July 1, 2005 and held
through December 31, 2005.

ACTUAL RETURN lines in the table below provide information about actual account
values and actual expenses. You may use this information, together with the
amount you invested, to estimate the expenses that you paid over the period. To
do so, simply divide your account value by $1,000 (for example, an $8,600
account value(LOGO)$1,000 = 8.6), then multiply the result by the number given
for your fund or share class under the heading entitled "Expenses Paid During
Period".

HYPOTHETICAL RETURN lines in the table below provide information about
hypothetical account values and hypothetical expenses based on a fund's share
class actual expense ratios and an assumed return of 5% per year before
expenses. Because the return used is not an actual return, it may not be used to
estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in the
fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your
ongoing costs only, and do not reflect any transactional costs, such as
redemption fees. While this Fund does not currently have redemption fees, if it
did and if such transactional cost were included, your costs would have been
higher.

BEGINNING ENDING EXPENSES EXPENSE RATIO(1) ACCOUNT VALUE ACCOUNT VALUE PAID DURING PERIOD(2) (Annualized) at 7/1/05 at 12/31/05 7/1/05 - 12/31/05 - --------------------------------------------------------------------------------------------------------------------------------- LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND Class 2 Shares 3.01% Actual Return $1,000.00 $1,014.16 $15.28 Hypothetical 5% Return $1,000.00 $1,010.43 $15.25 - ---------------------------------------------------------------------------------------------------------------------------------

(1) Based on the most recent six-month expense ratio (including dividend
expense) net of waiver; may differ from the expense ratio provided in
Financial Highlights. Refer to financial notes for more information about
the fund's expense.

(2) Expenses for each fund or share class are equal to that fund's or share
class' annualized expense ratio, multiplied by the average account value for
the hypothetical account over the period, multiplied by 184 days of the
period, and divided by 365 days of the fiscal year.

                            Laudus Variable Insurance Trust Annual Report  5

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND(A)
PORTFOLIO HOLDINGS as of December 31, 2005

HOLDINGS BY CATEGORY COST VALUE - ------------------------------------------------------------------ 90.8% COMMON STOCK 113,654,647 131,436,621 7.8% SHORT-TERM INVESTMENTS 11,291,405 11,291,405 - ------------------------------------------------------------------ 98.6% TOTAL INVESTMENTS 124,946,052(B) 142,728,026 (91.1)% SHORT SALES (130,148,416) (131,911,780) 91.7% DEPOSITS WITH BROKER AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT 132,661,751 0.8% OTHER ASSETS AND LIABILITIES 1,251,567 - ------------------------------------------------------------------ 100.0% NET ASSETS 144,729,564
NUMBER OF VALUE SECURITY SHARES ($) COMMON STOCK 90.8% OF NET ASSETS

AGRICULTURE, FOOD & BEVERAGE 1.6%


American Italian Pasta Co., Class
A 10,000 68,000
Andersons, Inc. 3,152 135,788
Cagle's, Inc. * 640 4,896
Diedrich Coffee, Inc. * 460 2,231
Gold Kist, Inc. * 8,768 131,081
Hain Celestial Group, Inc. * 13,300 281,428
Hansen Natural Corp. * 762 60,053
J & J Snack Foods Corp. 800 47,528
Lance, Inc. 9,030 168,229
National Beverage Corp. * 3,700 36,149
Penford Corp. 4,218 51,460
Pepsi Bottling Group, Inc. 11,500 329,015
PepsiAmericas, Inc. 27,580 641,511
Pilgrim's Pride Corp. * 2,460 81,574
Seaboard Corp. 200 302,200
Seneca Foods Corp., Class B * 300 5,737
Tasty Baking Co. 2,420 18,150
Zapata Corp. * 80 462
--------------
2,365,492

AIRLINES 0.8%


Air Methods Corp. * 1,550 26,815
AirNet Systems, Inc. * 5,500 18,755
Alaska Air Group, Inc. * 12,040 430,069
Macquaire Infrastructure Co.
Trust 10,490 323,092
Mesa Air Group, Inc. * 9 94
Republic Airways Holdings, Inc. * 6,989 106,233
SkyWest, Inc. 14,470 388,664
--------------
1,293,722

AUTOS 2.2%


Aftermarket Technology Corp. * 3,570 69,401
Autoliv, Inc. 25,510 1,158,664
BorgWarner, Inc. 3,485 211,296
Commercial Vehicle Group, Inc. * 780 14,648
Oshkosh Truck Corp. 23,210 1,034,934
R&B, Inc. * 580 5,498
Sequa Corp., Class A * 2,030 140,172
Spartan Motors, Inc. 5,791 59,589
Strattec Security Corp. * 245 9,903
Supreme Industries, Inc., Class A 1,600 12,384

NUMBER OF VALUE SECURITY SHARES ($) Sypris Solutions, Inc. 4,800 47,904 TRW Automotive Holdings Corp. * 17,909 471,902 -------------- 3,236,295

BANKS & CREDIT INSTITUTIONS 4.0%


1st Independence Financial Group,
Inc. 40 740
Accredited Home Lenders Holding
Co. * 7,525 373,089
Advanta Corp., Class A 440 13,257
Ameriana Bancorp 80 1,036
Ameris Bancorp 1,100 21,824
BancFirst Corp. 10 790
Bank of Granite Corp. 100 1,853
Bank of Hawaii Corp. 13,300 685,482
Bar Harbor Bankshares 5 132
Berkshire Hills Bancorp, Inc. 660 22,110
Beverly Hills Bancorp, Inc. 3,980 41,273
BNCCORP, Inc. * 200 2,550
BOE Financial Services of
Virginia, Inc. 300 10,620
Britton & Koontz Capital Corp. 700 14,770
Brunswick Bancorp * 170 2,022
Camden National Corp. 100 3,288
Capital Crossing Bank * 100 3,340
Capitol Bancorp Ltd. 2,600 97,344
Cardinal Financial Corp. 1,992 21,912
Carver Bancorp, Inc. 500 7,690
Cascade Financial Corp. 400 7,101
Central Bancorp, Inc. 100 2,793
Centrue Financial Corp. * 200 5,320
CFS Bancorp, Inc. 770 11,011
Citizens First Bancorp, Inc. 1,100 25,938
Citizens South Banking Corp. 119 1,418
Codorus Valley Bancorp, Inc. 10 194
Collegiate Funding Services * 5,950 117,513
Columbia Bancorp 440 9,715
Community Bankshares, Inc. 200 3,400
Community Capital Corp. 1,636 36,156
Community Central Bank Corp. 210 2,730
Community Financial Corp. 600 13,188
Community Shores Bank Corp. * 10 151
Community West Bancshares 836 11,725
CompuCredit Corp. * 8,045 309,572
Consumer Portfolio Services, Inc.

  •                                  8,200         47,134
    

Corus Bankshares, Inc. 8,329 468,673
Cowlitz Bancorp * 500 6,975
Dollar Financial Corp. * 140 1,680
EFC Bancorp, Inc. 100 3,435
Farmers Capital Bank Corp. 17 523
Federal Agricultural Mortgage
Corp., Class C 2,430 72,730
Fidelity Southern Corp. 2,200 39,380
Financial Institutions, Inc. 3,534 69,337
First Bancorp of Indiana, Inc. 200 4,400
First BancTrust Corp. 20 245
First Citizens BancShares, Inc.,
Class A 100 17,442
First Defiance Financial Corp. 1,476 39,985
First Federal Bancshares of
Arkansas, Inc. 320 7,776
First Federal Bancshares, Inc. 330 6,105

                                                        See financial notes.

6 Laudus Variable Insurance Trust Annual Report

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND

NUMBER OF VALUE SECURITY SHARES ($) First Federal Bankshares, Inc. 700 13,615 First Franklin Corp. 200 3,202 First M&F Corp. 300 10,200 First Merchants Corp. 420 10,920 First Niagra Financial Group, Inc. 22,142 320,395 First Place Financial Corp. 3,700 88,985 First South Bancorp, Inc. 300 10,596 First United Corp. 3,300 70,059 First West Virginia Bancorp, Inc. 100 1,935 FirstBank NW Corp. 840 26,804 FirstFed Bancorp, Inc. 100 1,098 FirstFed Financial Corp. * 6,620 360,922 Flag Financial Corp 90 1,517 FMS Financial Corp. 110 1,931 FNB Corp. 500 9,475 GS Financial Corp. 200 2,950 Guaranty Federal Bancshares, Inc. 10 279 Heartland Financial USA, Inc. 252 5,468 HF Financial Corp. 800 15,180 HMN Financial, Inc. 100 2,950 Home Federal Bancorp 220 5,500 Hopfed Bancorp, Inc. 40 634 Integra Bank Corp. 400 8,536 Intervest Bancshares Corp. * 4,100 101,475 ITLA Capital Corp. * 1,410 68,879 Lakeland Financial Corp. 400 16,152 Leesport Financial Corp. 500 12,000 LSB Bancshares, Inc. 300 5,306 Matrix Bancorp, Inc. * 500 9,446 Mayflower Co-operative Bank 1,200 16,488 Meta Financial Group, Inc. 800 16,200 MetroCorp Bancshares, Inc. 1,194 35,510 MutualFirst Financial, Inc. 200 4,405 National Mercantile Bancorp * 600 11,694 NBC Capital Corp. 3,260 77,555 New Hampshire Thrift Bancshares, Inc. 300 4,422 NewMil Bancorp, Inc. 1,299 39,645 North Central Bancshares, Inc. 100 3,860 North Valley Bancorp 1,860 33,145 Northrim BanCorp, Inc. 100 2,345 OceanFirst Financial Corp. 2,600 59,176 Pamrapo Bancorp, Inc. 100 2,155 Parkvale Financial Corp. 100 2,820 Peoples Bancorp of North Carolina 630 14,203 Peoples Bancorp, Inc. 100 2,108 Peoples BancTrust Co., Inc. 600 11,682 Peoples Financial Corp. 101 1,702 PFF Bancorp, Inc. 10 305 Pocahontas Bancorp, Inc. 300 3,885 Premier Community Bankshares, Inc. 1,092 25,116 Provident Financial Holdings, Inc. 2,021 53,152 PSB Bancorp, Inc. * 2,800 32,200 Pulaski Financial Corp. 600 10,776 Renasant Corp. 5,200 164,476 Republic Bancorp, Inc., Class A 3,110 66,710 Republic First Bancorp, Inc. * 2,128 27,983 River Valley Bancorp 7 131 Riverview Bancorp, Inc. 300 6,993 Simmons First National Corp., Class A 3,100 85,870
NUMBER OF VALUE SECURITY SHARES ($) TD Banknorth, Inc. 31,570 917,108 Team Financial, Inc. 200 2,870 Timberland Bancorp, Inc. 400 9,384 Tompkins Trustco, Inc. 1,000 44,800 Tower Financial Corp. * 463 7,964 United Bancorp, Inc., Ohio 451 5,480 United Bancshares, Inc 10 162 United Community Financial Corp. 3,050 36,021 United Financial Corp. 375 7,781 United Security Bancshares, Inc. 140 3,753 Unity Bancorp, Inc. 1,680 23,520 Wainwright Bank & Trust Co. 105 1,057 Washington Savings Bank, F.S.B. 410 3,567 WSFS Financial Corp. 1,300 79,625 ---------- 5,815,080

BASIC MINERALS & METALS 3.9%


A.M. Castle & Co. * 4,620 100,901
Aleris International, Inc. * 5,240 168,937
Allegheny Technologies, Inc. 37,030 1,336,042
Brush Engineered Materials, Inc.

  •                                  1,260         20,034
    

Commercial Metals Co. 27,200 1,021,088
CommScope, Inc. * 1,090 21,942
Freeport-McMoRan Copper & Gold,
Inc., Class B 7,900 425,020
Harsco Corp. 1,100 74,261
Insteel Industries, Inc. 200 3,312
L.B. Foster Co., Class A * 400 5,950
Northwest Pipe Co. * 700 18,760
NS Group, Inc. * 8,880 371,273
Precision Castparts Corp. 2,600 134,706
Ryerson Tull, Inc. 5,890 143,245
Southern Peru Copper Corp. 15,000 1,004,700
Superior Essex, Inc. * 1,768 35,643
Universal Stainless & Alloy
Products, Inc. * 2,700 40,500
Walter Industries, Inc. 13,400 666,248
----------
5,592,562

BEER, LIQUOR, & TOBACCO 0.2%


MGP Ingredients, Inc. 8,400 99,120
UST, Inc. * 3,700 151,071
----------
250,191

BIOTECHNOLOGY 0.0%


Harvard Bioscience, Inc. * 3,690 16,421

CELLULAR & WIRELESS 0.8%


NII Holdings, Inc. * 120 5,241
Telephone & Data Systems, Inc. 28,260 1,018,208
Telephone & Data Systems, Inc.,
Special Shares 3,380 116,982
----------
1,140,431

CHEMICALS & RUBBER 1.3%


A. Schulman, Inc. 5,449 117,263
Arch Chemicals, Inc. 6,920 206,908
Bairnco Corp. 100 872
Eastman Chemical Co. 2,087 107,669
H.B. Fuller Co. 3,200 102,624
Hercules, Inc. * 30,871 348,842

See financial notes.

                            Laudus Variable Insurance Trust Annual Report  7

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued

NUMBER OF VALUE SECURITY SHARES ($) Hexcel Corp. * 1,805 32,580 LESCO, Inc. * 4,700 71,722 NewMarket Corp. * 200 4,892 RPM International, Inc. 7,000 121,590 Scotts Miracle-Gro Co., Class A 4,980 225,295 Sherwin-Williams Co. 6,760 307,039 Stepan Co. 1,500 40,335 Terra Industries, Inc. * 8,412 47,107 Westlake Chemical Corp. 6,500 187,265 ---------- 1,922,003

COMMERCIAL AIRCRAFT & COMPONENTS 0.4%


BE Aerospace, Inc. * 24,400 536,800
Ladish Co., Inc. * 2,000 44,700
----------
581,500

COMMUNICATIONS UTILITIES 0.6%


Atlantic Tele-Network, Inc. 100 4,190
CNET Networks, Inc. * 2,355 34,595
CT Communications, Inc. 6,899 83,754
D&E Communications, Inc. 2,500 20,825
EarthLink, Inc. * 40,091 445,411
General Communication, Inc. * 2,292 23,676
Golden Telecom, Inc. 1,000 25,960
Hector Communications Corp. 200 5,660
Valor Communications Group, Inc. 11,120 126,768
Vignette Corp. * 8,550 139,451
----------
910,290

CONSTRUCTION & HOMEBUILDING 3.9%


Beazer Homes USA, Inc. 17,470 1,272,515
Brookfield Homes Corp. 1,581 78,623
Centex Corp. 300 21,447
Comfort Systems USA, Inc. 2,920 26,864
Insituform Technologies, Inc.,
Class A * 1,280 24,794
KB HOME 18,070 1,312,966
M.D.C. Holdings, Inc. 13,900 861,522
Meadow Valley Corp. * 710 8,222
Meritage Corp. * 5,900 371,228
Pulte Homes, Inc. 9,100 358,176
Ryland Group, Inc. 11,100 800,643
Technical Olympic USA, Inc. 7,900 166,611
WCI Communities, Inc. * 13,920 373,752
----------
5,677,363

CONSTRUCTION MATERIALS 1.0%


Ameron International Corp. 300 13,674
Apogee Enterprises, Inc. 1,100 17,842
Devcon International Corp. * 100 1,034
Eagle Materials, Inc. 8,200 1,003,352
Eagle Materials, Inc., Class B 14 1,649
Lafarge North America, Inc. 4,400 242,088
MDU Resources Group, Inc. 1,500 49,110
Oil-Dri Corp. of America 1,090 19,216
Patrick Industries, Inc. * 86 911
Rock of Ages Corp. 900 3,888
U.S. Concrete, Inc. * 2,010 19,055
Vulcan Materials Co. 600 40,650
----------
1,412,469

NUMBER OF VALUE SECURITY SHARES ($)

CONSUMER DURABLES 0.0%


Thor Industries, Inc. 410 16,429
Universal Electronics, Inc. * 3,153 54,326
----------
70,755

DRUGS & PHARMACEUTICALS 3.1%


Alpharma, Inc., Class A 12,000 342,120
Celgene Corp. * 26,076 1,689,725
Dade Behring Holdings, Inc. 25,019 1,023,027
E-Z-EM, Inc. * 1,200 27,480
Endo Pharmaceutical Holdings,
Inc. * 21,344 645,869
Natural Alternative
International, Inc. * 3,300 21,384
Nature's Sunshine Products, Inc. 5,259 95,083
Schiff Nutrition International,
Inc. * 1,700 8,653
United Therapeutics Corp. * 9,340 645,581
United-Guardian, Inc. 300 2,670
----------
4,501,592

ELECTRIC UTILITIES 1.6%


Alliant Energy Corp. 40,101 1,124,432
CH Energy Group, Inc. 1,103 50,628
Cleco Corp. 110 2,294
Duquesne Light Holdings, Inc. 2,220 36,230
Florida Public Utilities Co. 1,050 14,332
Foster Wheeler Ltd. * 13,412 493,293
Green Mountain Power Corp. 1,000 28,770
Maine & Maritimes Corp. 20 310
Westar Energy, Inc. 17,510 376,465
Xcel Energy, Inc. 9,490 175,185
----------
2,301,939

FINANCIAL INVESTMENTS 0.9%


American Capital Strategies Ltd.

  •                                 23,603        854,665
    

Electro Rent Corp. * 2,344 34,949
ePlus, Inc. * 2,380 32,920
KMG America Corp. * 9,200 84,456
MCG Capital Corp. 18,815 274,511
PICO Holdings, Inc. * 731 23,582
Willis Lease Finance Corp. * 4,300 35,045
----------
1,340,128

FOREST PRODUCTS & PAPER 0.2%


CSS Industries, Inc. 1,210 37,183
DSG International Ltd. * 100 550
Lydall, Inc. * 7,880 64,222
Mod-Pac Corp. * 160 1,799
Nashua Corp. * 800 5,616
Packaging Dynamics Corp. 1,642 18,341
Universal Forest Products, Inc. 1,700 93,925
----------
221,636

FURNITURE & HOUSEHOLD ITEMS 2.8%


A.T. Cross Co., Class A * 1,100 4,455
Aaron Rents, Inc. 3,310 64,214
Acuity Brands, Inc. 1,650 52,470
Aldila, Inc. 500 12,715
American Biltrite, Inc. * 320 3,472
American Locker Group, Inc. * 300 1,782

                                                        See financial notes.

8 Laudus Variable Insurance Trust Annual Report

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND

NUMBER OF VALUE SECURITY SHARES ($) Atlantis Plastics, Inc., Class A * 400 2,900 AZZ, Inc. * 2,460 44,378 Bassett Furniture Industries, Inc. 2,653 49,081 Callaway Golf Co. 28,460 393,886 Central Garden & Pet Co. * 5,266 241,920 Channell Commercial Corp. * 400 1,986 Chase Corp. 700 10,115 Chromcraft Revington, Inc. * 930 12,183 Communications Systems, Inc. 2,110 25,911 Craftmade International, Inc. 2,193 43,882 Ethan Allen Interiors, Inc. 9,759 356,496 Genlyte Group, Inc. * 544 29,142 Griffon Corp. * 7,940 189,051 Herman Miller, Inc. 6,393 180,219 JAKKS Pacific, Inc. * 5,872 122,960 LSI Industries, Inc. 4,233 66,289 Mity Enterprises, Inc. * 410 7,306 Movado Group, Inc. 8,460 154,818 Myers Industries, Inc. 13,200 192,456 National Presto Industries, Inc. 630 27,941 Preformed Line Products Co. 275 11,767 Raven Industries, Inc. 152 4,385 RC2 Corp. * 1,183 42,020 Stanley Furniture Co., Inc. 6,500 150,670 Steelcase, Inc., Class A 23,830 377,229 Summa Industries 700 5,460 The Lamson & Sessions Co. * 2,900 72,558 Thomas & Betts Corp. * 24,470 1,026,761 Tredegar Corp. 3,625 46,726 ---------- 4,029,604

GAS & OTHER PUBLIC UTILITIES 0.4%


Artesian Resources Corp., Class A 561 16,606
BIW Ltd. 500 8,975
California Water Service Group 2,380 90,987
Chesapeake Utilities Corp. 1,800 55,440
Connecticut Water Service Inc 129 3,162
Delta Natural Gas Co., Inc. 100 2,520
Laclede Group, Inc. 80 2,337
NiSource, Inc. 50 1,043
RGC Resources, Inc. 200 5,052
SJW Corp. 1,700 77,350
Southwest Water Co. 3,966 56,751
Vectren Corp. 6,910 187,675
Waste Industries USA, Inc. 994 12,803
----------
520,701

GOVERNMENT AIRCRAFT & DEFENSE 0.2%


Aerosonic Corp. * 890 5,741
Herley Industries, Inc. * 5,810 95,923
Lowrance Electronics, Inc. 1,000 26,210
Textron, Inc. 10 770
Todd Shipyards Corp. 610 15,860
United Industrial Corp. 3,790 156,792
----------
301,296

HEALTH CARE & HOSPITAL 2.0%


Allied Healthcare International,
Inc. * 13,972 85,788
Almost Family, Inc. * 200 3,200
American Shared Hospital Services 2,500 15,700

NUMBER OF VALUE SECURITY SHARES ($) Five Star Quality Care, Inc. * 6,100 48,007 Health Net, Inc. * 19,200 989,760 HealthTronics, Inc. * 846 6,472 Humana, Inc. * 11,440 621,535 MedCath Corp. * 3,900 72,345 MEDTOX Scientific, Inc. * 4,400 33,352 National Healthcare Corp. 265 9,906 Pediatric Services of America, Inc. * 1,750 24,727 Pediatrix Medical Group, Inc. * 9,640 853,815 Psychemedics Corp. 1,490 20,562 RehabCare Group, Inc. * 3,720 75,144 Res-Care, Inc. * 3,900 67,743 ---------- 2,928,056

INFORMATION & SERVICES 3.8%


Ablest, Inc. * 210 1,762
ABM Industries, Inc. 7,830 153,076
Albany Molecular Research, Inc. * 1,104 13,414
Ambassadors Groups, Inc. 800 18,312
American Retirement Corp. * 8,190 205,815
Butler International Inc * 2,700 9,045
Capital Title Group, Inc. 11,700 64,701
Carriage Services, Inc. * 7,740 38,700
Cass Information Systems, Inc. 495 16,434
CBIZ, Inc. * 5,800 34,916
CDI Corp. 5,600 153,440
CheckFree Corp. * 25,099 1,152,044
Convergys Corp. * 3,740 59,279
Cornell Cos., Inc. * 456 6,302
Corrections Corp. of America * 11,530 518,504
CPI Corp. 200 3,742
Ecology & Environment, Inc. 450 4,014
Equifax, Inc. 5,900 224,318
Exponent, Inc. * 1,200 34,056
Forrester Research, Inc. * 212 3,975
Franklin Covey Co. * 5,880 37,161
Getty Images, Inc. * 1,200 107,124
Hallwood Group, Inc. * 300 23,364
Horizon Health Corp. * 1,545 34,963
Hudson Highland Group, Inc. * 6,631 115,114
ICT Group, Inc. * 3,720 63,054
Kelly Services, Inc., Class A 2,490 65,288
Kendle International, Inc. * 1,600 41,184
Layne Christensen Co. * 320 8,138
Mac-Gray Corp. * 1,500 17,475
Manpower, Inc. 1,570 73,005
Michael Baker Corp. * 2,300 58,765
Monro Muffler Brake, Inc. 4,720 143,110
MPS Group, Inc. * 34,460 471,068
National Technical Systems, Inc.

  •                                  5,000         25,000
    

NCO Group, Inc. * 4,400 74,448
Nobel Learning Communities, Inc. 820 7,741
Opinion Research Corp. * 300 1,689
PAREXEL International Corp. * 8,720 176,667
Pharmaceutical Product
Development, Inc. * 3,500 216,825
RCM Technologies, Inc. * 2,798 14,270
Shaw Group, Inc. * 7,130 207,412
SOURCECORP, Inc. * 7,060 169,299
SRI/Surgical Express, Inc. * 261 1,566

See financial notes.

                            Laudus Variable Insurance Trust Annual Report  9

LAUDUS ROSENBERG VIT VALUE LONG/SHORT EQUITY FUND
PORTFOLIO HOLDINGS continued

NUMBER OF VALUE SECURITY SHARES ($) TeleTech Holdings, Inc. * 1,192 14,364 URS Corp. * 5,490 206,479 Vertrue, Inc. * 1,208 42,679 Volt Information Sciences, Inc. * 3,800 72,276 West Corp. * 6,900 290,835 Westaff, Inc. * 410 2,029 ---------- 5,498,241

INSTRUMENTS 4.8%


Allied Healthcare Products, Inc.

  •                                  2,138         12,272
    

American Science & Engineering,
Inc. * 470 29,314
ArthroCare Corp. * 10,490 442,048
Astro-Med, Inc. 2,900 33,031
Atrion Corp. 220 15,275
Badger Meter, Inc. 300 11,772
Bausch & Lomb, Inc. 15,560 1,056,524
Bio-Rad Laboratories, Inc. * 5,100 333,744
Bruker BioSciences Corp. * 2,298 11,168
Checkpoint Systems, Inc. * 15,640 385,526
Coherent, Inc. * 12,828 380,735
Compex Technologies, Inc. * 2,500 16,350
Datascope Corp. 2,000 66,100
DJ Orthopedics, Inc. * 8,300 228,914
Edwards Lifesciences Corp. * 20,800 865,488
Encore Medical Corp. * 11,700 57,915
Enpath Medical, Inc. * 3,300 28,050
Escalon Medical Corp. * 3,300 15,081
Esterline Technologies Corp. * 240 8,926
Frequency Electronics, Inc. 1,240 13,008
Integra LifeSciences Holdings * 584 20,709
Iridex Corp. * 4,100 32,226
K-Tron International, Inc. * 300 11,130
Kewaunee Scientific Corp. 640 5,990
Langer, Inc. * 780 4,056
LeCroy Corp. * 3,300 50,457
Mesa Laboratories, Inc. 400 5,720
Mikron Infrared, Inc. * 3,100 20,398
Misonix, Inc. * 1,000 4,340
Mocon, Inc. 10 93
Molecular Devices Corp. * 2,900 83,897
MTS Systems Corp. 2,642 91,519
New Brunswick Scientific Co.,
Inc. * 1,500 10,335
O.I. Corp. * 500 6,200
Oakley, Inc. 3,440 50,534
Orthofix International NV * 10 399
OYO Geospace Corp. * 201 5,720
Perceptron, Inc. * 4,400 31,152
PerkinElmer, Inc. 4,800 113,088
Schmitt Industries, Inc. * 110 685
Span-America Medical Systems,
Inc. 700 7,175
Steris Corp. 19,670 492,143
Teleflex, Inc. 14,700 955,206
Thermo Electron Corp. * 100 3,026
Thoratec Corp. * 18,940 391,869
Tollgrade Communications, Inc. * 1,500 16,395
Viasys Healthcare, Inc. * 14,400 370,080

NUMBER OF VALUE SECURITY SHARES ($) Vicon Industries, Inc. * 100 305 Zygo Corp. * 9,180 134,854 ---------- 6,930,942

INSURANCE 4.8%


Alleghany Corp. * 71 20,164
American National Insurance Co. 2,244 262,526
American Physicians Capital, Inc.

  •                                  1,100         50,369
    

American Safety Insurance

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