City National Rochdale Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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 811-0792

CNI Charter Funds

(Exact name of registrant as specified in charter)

400 North Roxbury Drive

Beverly Hills, CA 90210

 (Address of principal executive offices) (Zip code)

SEI Investments Distributors

1 Freedom Valley Drive

Oaks, PA 19456

 (Name and address of agent for service)

Registrant’s telephone number, including area code: 1-888-889-0799

Date of fiscal year end: September 30, 2012

Date of reporting period: March 31, 2012

Item 1. Reports to Stockholders.

This report and the financial statements contained herein are provided for the general information of the shareholders of CNI Charter Funds. This report is not authorized for distribution to prospective investors in CNI Charter Funds unless preceded or accompanied by an effective prospectus. Please remember that past performance is no guarantee of future results.

Shares of CNI Charter Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including the possible loss of the principal amount invested.

TABLE OF CONTENTS

CNI Charter Funds Semi-Annual Report

2	Letter to Our Shareholders
4	Schedule of Investments
62	Statements of Assets and Liabilities
66	Statements of Operations
70	Statements of Changes in Net Assets
76	Financial Highlights
80	Notes to Financial Statements
90	Disclosure of Fund Expenses

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within 60 days after the end of the period. The Funds’ Form N-Q filings are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The most current Form N-Q filing is also available on the Funds’ website at www.cnicharterfunds.com and without charge, upon request, by calling 1-888-889-0799.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the Funds’ portfolio securities, and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ending June 30 is available (1) without charge, upon request, by calling 1-888-889-0799, (2) on the Funds’ website at www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission’s website at www.sec.gov.

CNI CHARTER FUNDS | PAGE 1

letter to our shareholders

March 31, 2012

Dear Shareholder,

This semi-annual report covers the six-month period ended March 31, 2012. After a very difficult summer, global equity markets began a sharp rally in early October that carried nearly through the entire first quarter of 2012. Among the major catalysts for the rally was a marked pickup in job growth in the United States, increased support from the European Central Bank (ECB) for the beleaguered European banking system, and depressed equity valuation levels after the sharp selloff in August and September of last year. As we entered 2012, the United States continued to demonstrate better-than-expected strength in employment, consumer spending, and manufacturing activity.

Despite the improved tone of U.S. economic data, interest rates remained at exceptionally low levels. The yield on the bellwether 10-Year U.S. Treasury Note inched up from 1.92% in early October to 2.21% at the end of March, higher but still low relative to its 50-year history. While some economists raised their 2012 GDP growth forecasts after analyzing the early year data, most would still characterize the U.S. economic performance in the first quarter as sluggish. As a result, the Federal Open Market Committee reiterated its resolve to maintain its accommodative policy stance, implying that short-term interest rates are likely to remain at low levels for the foreseeable future.

Below is a summary of the performance of CNI Charter Funds for the six months ended March 31, 2012. Returns shown are for the class indicated. Other classes would have different returns.

MONEY MARKET FUNDS

In a market characterized by near-zero short term interest rates, we continue to waive a substantial amount of our fees to produce positive returns for investors. The three CNI Charter Money Market Funds’ results for the past six months are as follows:

• The Government Money Market Fund, Institutional Class provided a total return of 0.01%, matching the Lipper Institutional U.S. Government Money Market peer group average in the six-month period, while the return of the iMoneyNet Government Institutional Money Market Index was 0.00%.

•  The Prime Money Market Fund, Institutional Class returned 0.01% over this period. The iMoneyNet Prime Institutional Money Market Index and Lipper Institutional Money Market Funds peer group average return was 0.03%. In keeping with its high quality mandate, the Fund had eliminated all exposure to European bank debt by early October.

•  The California Tax Exempt Money Market Fund, Institutional Class also produced a return of 0.01%; the iMoneyNet State Specific Institutional-CA Average over this period was 0.00% while the Lipper California Tax-Exempt Money Market peer group average was 0.02%.

BOND FUNDS

All of our bond portfolios generated positive performance over the last two quarters:

• The Limited Maturity Fixed Income Fund, Institutional Class returned 0.94% over the six-month period, providing a healthy premium over the 0.11% return of the BofA Merrill Lynch 1-3 Year U.S. Treasury Index.

• The Government Bond Fund, Servicing Class posted a modest 0.06% return, compared to the Barclays Capital U.S. 1-5 Year Government Bond Index return of 0.31%.

• The Corporate Bond Fund, Servicing Class returned 3.28%, which outpaced the 2.72% return of the Barclays Capital U.S. Corporate 1-5 Year A3 or Higher Index, with 2% Issuer Constraint and ranked in the upper quartile of Lipper’s Short-Intermediate Grade Debt peer group average.

• The California Tax Exempt Bond Fund, Servicing Class returned 2.29%, closely tracking the Barclays Capital CA Intermediate-Short Municipal Bond Index return of 2.36%, and ahead of the 2.00% return posted by the Lipper CA Short-Intermediate Municipal Debt Objective peer group average.

• The Full Maturity Fixed Income Fund, Institutional Class posted a return of 1.45%, nearly matching the 1.46% return of the Barclays Capital U.S. Intermediate Government/Credit Bond Index.

• The High Yield Bond Fund, Servicing Class returned 10.45% while the Citigroup High Yield Market Capped Index returned 12.01%, benefitting from improving confidence about the investment outlook and the search for high income-producing investments.

CNI CHARTER FUNDS | PAGE 2

ABSOLUTE RETURN FUND

Our Multi-Asset Fund, Servicing Class, designed to provide stable performance in excess of inflation, returned 6.73% in the six-month period while its primary benchmark, the Barclays Capital U.S. TIPS Index, returned 3.57%. The average return for the Lipper Absolute Return Fund category was 2.49% and the CNI Charter Multi-Asset Fund ranked in the upper 16th percentile of the Lipper peer group for the half-year period.

EQUITY FUNDS

Reflecting the recovery in stock prices since the most recent low point on October 3, 2011, the six-month period ended March 31, 2012 produced returns as follows:

• The Diversified Equity Fund, Institutional Class returned 23.10% in the six-month period, trailing the S&P 500 Index’s return of 25.89%. As previously noted, we added a third manager to the Fund’s lineup in March and reduced the positions of the existing managers in order to seek to improve relative performance.

• The Large Cap Value Equity Fund, Servicing Class posted a six-month return of 22.48%, which trailed the S&P 500 Value Index’s return of 27.64%.

• The Large Cap Growth Equity Fund, Servicing Class returned 25.82%, ahead of the benchmark S&P 500 Growth Index, which returned 24.40%.

• The Socially Responsible Equity Fund, Institutional Class returned 21.74%, while the MSCI KLD 400 Social Index returned 24.22%.

We are grateful for the trust you have placed in us as evidenced by your investment in the CNI Charter Funds. We believe that our portfolio of Fund and sub-advisor strategies is capable of meeting the objectives of a variety of investors irrespective of the economic and investment challenges that lie ahead.

Sincerely,

Bruce D. Simon, CFA

President & Chief Investment Officer

City National Asset Management, Inc.

CNI CHARTER FUNDS | PAGE 3

schedule of investments

March 31, 2012 (Unaudited)

Government Money Market Fund

Description Face Amount(000) Value (000)

U.S. Government Agency Obligations [37.3%]
FAMC DN (A)
0.080%, 04/03/12	$	25,000	$	25,000
0.090%, 04/23/12		19,500		19,499
0.140%, 04/25/12		48,000		47,996
0.130%, 05/03/12		20,000		19,998
0.120%, 05/22/12		18,300		18,297
0.085%, 06/01/12		24,850		24,846
0.145%, 07/13/12		35,000		34,985
0.130%, 08/01/12		25,000		24,989
0.150%, 08/23/12		24,000		23,986
0.130%, 09/28/12		30,000		29,980
0.160%, 11/08/12		30,000		29,971
0.135%, 12/21/12		20,000		19,980
0.196%, 02/01/13		50,000		49,917
FFCB
0.250%, 07/02/12		24,400		24,399
FFCB DN (A)
0.050%, 04/06/12		30,000		30,000
FHLB
0.250%, 04/04/12		17,100		17,100
0.130%, 05/15/12		15,000		15,000
0.260%, 07/06/12		25,000		25,000
0.200%, 07/18/12(B)		20,000		20,000
0.250%, 07/25/12		14,190		14,194
0.330%, 08/08/12		20,000		20,000
0.875%, 08/22/12		20,000		20,056
0.230%, 08/28/12		20,000		20,006
0.170%, 01/24/13		23,000		23,000
0.160%, 02/08/13		10,000		9,992
FHLB DN (A)
0.130%, 04/18/12		27,350		27,348
0.075%, 04/25/12		35,000		34,998
0.090%, 05/01/12		25,000		24,998
0.130%, 08/01/12		39,800		39,782
0.180%, 10/03/12		20,000		19,982
FHLMC
5.125%, 07/15/12		25,000		25,359

Description Face Amount(000) Value (000)

0.202%, 08/10/12(B)	$	20,000	$	20,001
0.375%, 11/30/12		25,000		25,030
FHLMC DN (A)
0.060%, 05/15/12		25,000		24,998
0.070%, 06/04/12		15,000		14,998
0.120%, 06/06/12		28,331		28,325
0.120%, 06/12/12		20,000		19,995
0.140%, 08/06/12		30,010		29,996
0.120%, 09/18/12		12,000		11,993
0.159%, 10/01/12		40,873		40,840
FICO STRIP PO
0.190%, 04/05/12(A)		14,445		14,445
FNMA DN (A)
0.020%, 04/02/12		75,000		75,000
0.180%, 05/01/12		17,000		16,997
0.115%, 05/21/12		9,000		8,999
0.120%, 06/11/12		10,400		10,398
0.080%, 06/18/12		20,000		19,996
Total U.S. Government Agency Obligations (Cost $1,142,669)				1,142,669
Corporate Bonds [4.9%]
Banks [2.5%]
Bank of America, FDIC Insured, MTN
2.100%, 04/30/12		45,000		45,069
0.674%, 06/22/12(B)		9,100		9,107
Citibank
0.557%, 05/07/12(B)		7,800		7,804
Huntington National Bank
0.888%, 06/01/12(B)		12,330		12,342
Total Banks				74,322
Financial Services [1.2%]
General Electric Capital, FDIC Insured, MTN
2.000%, 09/28/12		30,000		30,265
0.473%, 05/08/12(B)		7,820		7,821
Total Financial Services				38,086
Investment Banker/Broker Dealer [1.2%]
Citigroup Funding
2.125%, 07/12/12		25,000		25,138
1.875%, 11/15/12		11,272		11,390
Total Investment Banker/Broker Dealer				36,528
Total Corporate Bonds (Cost $148,936)				148,936

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 4

schedule of investments

March 31, 2012 (Unaudited)

Government Money Market Fund (continued)

Description Face Amount(000) Value (000)

Municipal Bonds [2.0%]
California [0.9%]
California Statewide, Communities Development Authority, Fairway Family Apartments Project, Ser PP, RB, FNMA (B) (C)
0.180%, 04/05/12	$	8,000	$	8,000
Hayward California, RB, FNMA (B)
0.190%, 04/05/12		10,000		10,000
Sacramento County, Housing Authority, Ashford Heights Apartments Project, Ser H, RB, FNMA (B) (C)
0.190%, 04/05/12		9,000		9,000
Total California				27,000
Texas [0.8%]
Houston, Housing Finance, Regency Park Apartments Project, RB, FNMA (B) (C)
0.240%, 04/04/12		13,800		13,800
Texas State, Department of Housing & Community Affairs, Idlewilde Apartments Project, RB, FNMA (B) (C)
0.220%, 04/05/12		13,935		13,935
Total Texas				27,735
Washington [0.3%]
Washington State, Housing Finance Commission, Vintage Spokane Project, Ser A, RB, FNMA (B) (C)
0.230%, 04/05/12		8,000		8,000
Total Municipal Bonds (Cost $62,735)				62,735
U.S. Government Related Securities [16.4%]
Straight-A Funding
0.190%, 04/10/12		50,000		49,998
0.190%, 04/11/12		50,038		50,035
0.190%, 04/12/12		62,000		61,996
0.190%, 04/16/12		28,409		28,407
0.180%, 05/01/12		32,868		32,863
0.180%, 05/08/12		50,000		49,991
0.180%, 05/10/12		30,041		30,035
0.180%, 05/14/12		69,049		69,034
0.180%, 06/04/12		27,359		27,350

Description	Face Amount (000)/Shares			Value (000)
0.180%, 06/08/12		$	21,069	$	21,062
0.180%, 06/25/12			41,983		41,965
0.130%, 04/09/12			10,000		10,000
0.110%, 04/04/12			30,000		30,000
Total U.S. Government Related Securities (Cost $502,736)					502,736
U.S. Treasury Obligation [0.3%]
U.S. Treasury Bill 0.085%, 05/10/12 (A)			10,000		9,999
Total U.S. Treasury Obligation (Cost $9,999)					9,999
Short-Term Investment [15.4%]
Morgan Stanley Institutional Liquidity Funds - Government Portfolio, 0.050%*			470,900,192		470,900
Total Short-Term Investment (Cost $470,900)					470,900
Repurchase Agreements (D) [23.7%]
Bank of America
0.050%, dated 03/30/12, repurchased on 04/02/12, repurchase price $425,001,771 (collateralized by various U.S. Government obligations, ranging in par value $35,943,000 - $138,708,000, 0.000% - 6.250%, 09/19/12 - 07/15/32; with total market value $433,500,942)			425,000		425,000
Barclays
0.080%, dated 03/30/12, repurchased on 04/02/12, repurchase price $75,000,500 (collateralized by a U.S. Treasury Note, par value $76,740,300, 0.125%, 12/31/13; with total market value $78,500,031)			75,000		75,000

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 5

schedule of investments

March 31, 2012 (Unaudited)

Government Money Market Fund (concluded)

Description	Face Amount (000)			Value (000)
Deutsche Bank
0.100%, dated 03/30/12, repurchased on 04/02/12, repurchase price $150,001,250 (collateralized by various U.S. Government obligations, ranging in par value $13,095,000 - $97,950,000, 0.000% - 5.000%, 06/29/12 - 03/05/32; with total market value $153,000,593)		$	150,000	$	150,000
Goldman Sachs
0.080%, dated 03/30/12, repurchased on 04/02/12, repurchase price $75,000,500 (collateralized by various FNMA obligations, ranging in par value $23,755,000 - $51,393,000, 1.250% - 3.630%, 02/27/14 - 09/06/16; with total market value $76,500,650)			75,000		75,000
Total Repurchase Agreements (Cost $725,000)					725,000
Total Investments [100.0%] (Cost $3,062,975)				$	3,062,975

Percentages are based on Net Assets of $3,063,545 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Zero coupon security. The rate reported is the effective yield at time of purchase.

(B) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

(C) Put and Demand Feature — The date reported is the next reset date or put date.

(D) Tri-Party Repurchase Agreement.

DN — Discount Note

FAMC — Federal Agriculture Mortgage Corporation

FDIC Insured — Federal Deposit Insurance Corporation

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FICO — Fair Isaac Corporation

FNMA — Federal National Mortgage Association

MTN — Medium Term Note

PO — Principal Only

RB — Revenue Bond

Ser — Series

STRIP — Separate trading of registered interest and principal of securities.

Investments in Securities	Level 1		Level 2		Level 3		Total
U.S. Government Agency Obligations	$	—	$	1,142,669	$	—	$	1,142,669
Corporate Bonds		—		148,936		—		148,936
Municipal Bonds		—		62,735		—		62,735
U.S. Government Related Securities		—		502,736		—		502,736
U.S. Treasury Obligation		—		9,999		—		9,999
Short-Term Investment		470,900		—		—		470,900
Repurchase Agreements		—		725,000		—		725,000
Total Investments in Securities	$	470,900	$	2,592,075	$	—	$	3,062,975

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 – Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 6

schedule of investments

March 31, 2012 (Unaudited)

Prime Money Market Fund

Description	Face Amount (000)			Value (000)
Commercial Paper [51.3%]
Banks [20.2%]
Australia & New Zealand Banking Group (A)
0.220%, 05/31/12		$	10,000	$	9,996
0.210%, 06/08/12			10,000		9,996
Bank of Montreal
0.140%, 04/02/12			25,000		25,000
Bank of Nova Scotia
0.315%, 09/10/12			10,000		9,986
BNZ International Funding (A)
0.392%, 04/22/12			20,000		20,000
0.250%, 05/04/12			10,000		9,998
Commonwealth Bank of Australia (A)
0.517%, 06/22/12			10,000		9,999
0.180%, 04/26/12			10,000		9,999
Korea Development Bank
0.591%, 05/10/12			15,000		14,990
0.551%, 06/04/12			10,000		9,990
0.490%, 04/02/12			10,000		10,000
National Australia Funding Delaware (A)
0.280%, 04/02/12			10,000		10,000
0.240%, 06/04/12			10,000		9,996
Sumitomo Corp of America
0.420%, 04/10/12			15,000		14,998
0.370%, 05/02/12			10,000		9,997
0.350%, 06/05/12			10,000		9,994
Sumitomo Mitsui Banking (A)
0.370%, 06/04/12			10,000		9,993
0.280%, 04/18/12			10,000		9,999
Sumitomo Trust & Banking NY (A)
0.240%, 05/18/12			15,000		14,995
Total Banks					229,926

Description Face Amount (000) Value (000)

Computer System Design & Services [1.1%]
Dell (A)
0.200%, 04/09/12	$	12,500	$	12,500
Financial Services [13.0%]
American Honda Finance
0.140%, 04/03/12		10,000		10,000
BTM Capital (A)
0.350%, 04/13/12		14,000		13,998
0.330%, 04/05/12		15,000		15,000
CAFCO (A)
0.200%, 04/11/12		5,000		5,000
Caisse Centrale Desjardins du Quebec (A)
0.190%, 04/10/12		15,000		14,999
0.185%, 06/12/12		10,000		9,996
0.165%, 05/14/12		10,000		9,998
Caterpillar Financial Services
0.120%, 04/12/12		10,000		10,000
General Electric Capital
0.391%, 05/16/12		10,000		9,995
0.240%, 06/26/12		15,000		14,991
Toyota Financial Services de Puerto Rico
0.350%, 05/04/12		10,000		9,997
0.340%, 07/05/12		10,000		9,991
Toyota Motor Credit
0.361%, 08/10/12		15,000		14,980
Total Financial Services				148,945
Import/Export [3.0%]
Mitsui & USA
0.220%, 04/10/12		15,000		15,000
0.220%, 04/11/12		9,000		9,000
0.220%, 05/01/12		10,000		9,998
Total Import/Export				33,998
Instruments-Controls [1.3%]
Honeywell International (A)
0.160%, 06/28/12		15,000		14,994
Investment Banker/Broker Dealer [6.1%]
AllianceBernstein (A)
0.300%, 04/20/12		15,000		14,998
0.260%, 06/05/12		10,000		9,995
0.230%, 05/07/12		10,000		9,998

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 7

schedule of investments

March 31, 2012 (Unaudited)

Prime Money Market Fund (continued)

Description Face Amount(000) Value (000)

Macquarie Bank (A)
0.360%, 04/16/12	$	10,000	$	9,998
0.360%, 04/23/12		15,000		14,997
0.350%, 04/27/12		10,000		9,997
Total Investment Banker/Broker Dealer				69,983
Miscellaneous Manufacturing [1.8%]
Fairway Finance (A)
0.120%, 04/02/12		9,238		9,238
Liberty Street Funding (A)
0.130%, 04/30/12		9,400		9,399
MetLife Short Term Funding (A)
0.150%, 05/30/12		1,700		1,700
Total Miscellaneous Manufacturing				20,337
Petroleum & Fuel Products [2.2%]
BP Capital Markets (A)
0.300%, 06/05/12		10,000		9,995
0.300%, 07/02/12		15,000		14,988
Total Petroleum & Fuel Products				24,983
Schools [2.6%]
University of California
0.170%, 06/14/12		15,000		14,995
0.160%, 06/13/12		15,000		14,995
Total Schools				29,990
Total Commercial Paper (Cost $585,656)				585,656
Municipal Bonds [3.9%]
California [1.3%]
California State, Ser A-2, RB
2.000%, 06/26/12		15,000		15,056
Illinois [1.3%]
Chicago, Midway Airport Authority, RB, AMT (B) (C) (D)
0.170%, 04/01/12		14,500		14,500
North Carolina [1.3%]
Charlotte, Water and Sewer System, Ser B, RB (C) (D)
0.170%, 04/05/12		15,000		15,000
Total Municipal Bonds (Cost $44,556)				44,556

Description Face Amount(000) Value (000)

U.S. Government Related Securities [2.2%]
Straight-A Funding
0.180%, 05/08/12	$	10,027	$	10,025
0.180%, 05/24/12		5,000		4,999
0.180%, 06/08/12		10,000		9,996
Total U.S. Government Related Securities (Cost $25,020)				25,020
U.S. Government Agency Obligation [0.9%]
FHLMC
0.202%, 08/10/12(C)		10,000		10,001
Total U.S. Government Agency Obligation (Cost $10,001)				10,001
Certificates of Deposit [17.1%]
Banco Del Estado De Chile
0.600%, 04/11/12		9,000		9,000
0.560%, 04/11/12		6,000		6,000
0.500%, 05/03/12		10,000		10,000
0.480%, 06/18/12		10,000		10,000
Bank of America
0.300%, 04/13/12		10,000		10,000
0.500%, 04/16/12		15,000		15,002
0.470%, 05/07/12		10,000		10,000
Bank of Nova Scotia
0.390%, 04/05/12		7,750		7,750
Bank of Tokyo-Mitsubishi UFJ NY
0.540%, 04/30/12		6,000		6,000
Citibank
0.200%, 04/02/12		10,000		10,000
0.200%, 04/30/12		15,000		15,000
National Bank of Canada
0.400%, 07/17/12		11,000		11,000
Norinchukin Bank
0.550%, 04/23/12		10,000		10,000
0.470%, 05/21/12		15,000		15,000
0.460%, 06/01/12		10,000		10,000
Toronto-Dominion Bank
0.150%, 04/20/12		10,000		10,000
0.210%, 08/01/12		10,000		10,000
Westpac Banking
0.332%, 04/16/12		20,000		20,000
Total Certificates of Deposit (Cost $194,752)				194,752

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 8

schedule of investments

March 31, 2012 (Unaudited)

Prime Money Market Fund (concluded)

Description	Shares/Face Amount (000)			Value (000)
Short-Term Investment [8.0%]
Morgan Stanley Institutional Liquidity Funds - Government Portfolio, 0.050%*			91,413,987	$	91,414
Total Short-Term Investment (Cost $91,414)					91,414
Repurchase Agreements (E) [16.6%]
Bank of America
0.050%, dated 03/30/12, repurchased on 04/02/12, repurchase price $90,000,375 (collateralized by various U.S. Treasury obligations, ranging in par value $82,547,500 - $8,635,200, 1.000%, 02/07/13 - 04/15/16; with total market value $91,800,031)		$	90,000		90,000
Barclays
0.080%, dated 03/30/12, repurchased on 04/02/12, repurchase price $25,000,167 (collateralized by a U.S. Treasury Note, par value $24,728,300, 1.500%, 06/30/16; with total market value $25,500,040)			25,000		25,000
Deutsche Bank
0.100%, dated 03/30/12, repurchased on 04/02/12, repurchase price $50,000,417 (collateralized by a FHLB obligation, par value $49,710,000, 1.375%, 05/28/14; with total market value $51,002,943)			50,000		50,000
Goldman Sachs
0.080%, dated 03/30/12, repurchased on 04/02/12, repurchase price $25,000,167, collateralized by a FHLMC obligation, par value $24,938,000, 1.375% 02/25/14; with total market value $25,500,023)			25,000		25,000
Total Repurchase Agreements (Cost $190,000)					190,000
Total Investments [100.0%] (Cost $1,141,399)				$	1,141,399

Percentages are based on Net Assets of $1,141,370 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On March 31, 2012, the value of these securities amounted to $336,759 (000), representing 29.5% of the net assets of the Fund.

(B) Securities are held in conjunction with a letter of credit from a major bank or financial institution.

(C) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

(D) Put and Demand Feature — The date reported is the next reset date or put date.

(E) Tri-Party Repurchase Agreement.

AMT — Alternative Minimum Tax (subject to)

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

RB — Revenue Bond

Ser — Series

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
Commercial Paper	$	—	$	585,656	$	—	$	585,656
Municipal Bonds		—		44,556		—		44,556
U.S. Government Related Securities		—		25,020		—		25,020
U.S. Government Agency Obligation		—		10,001		—		10,001
Certificates of Deposit		—		194,752		—		194,752
Short-Term Investment		91,414		—		—		91,414
Repurchase Agreements		—		190,000		—		190,000
Total Investments in Securities	$	91,414	$	1,049,985	$	—	$	1,141,399

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 – Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 9

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Money Market Fund

Description	Face Amount (000)			Value (000)
Municipal Bonds [86.6%]
California [85.0%]
Bay Area Toll Authority, Ser A-2, RB (A) (B) (C)
0.150%, 04/05/12		$	5,000	$	5,000
Bay Area Toll Authority, Ser C-1, RB (A) (B) (C)
0.150%, 04/05/12			19,445		19,445
Bay Area Toll Authority, Ser C-1, RB (A) (B) (C)
0.150%, 04/05/12			23,350		23,350
Bay Area Toll Authority, Ser C-2, RB (A) (B) (C)
0.150%, 04/05/12			4,190		4,190
California State, Department of Water Resources, Ser A, RB (D)
Pre-Refunded @ 101
5.375%, 05/01/12			10,000		10,142
California State, Economic Recovery Project, Ser C-1, GO (A) (B) (C)
0.180%, 04/01/12			19,715		19,715
California State, Health Facilities Financing Authority, RB (A) (C)
0.177%, 04/04/12			10,885		10,885
California State, Health Facilities Financing Authority, RB (A) (B) (C)
0.170%, 04/04/12			6,750		6,750
California State, Health Facilities Financing Authority, Ser A, RB (A) (B) (C)
0.170%, 04/04/12			1,800		1,800
California State, Health Facilities Financing Authority, Ser B, RB (A) (B) (C)
0.180%, 04/04/12			15,955		15,955

Description Face Amount (000) Value (000)

California State, Health Facilities Financing Authority, Ser C, RB (A) (B) (C)
0.180%, 04/04/12	$	9,125	$	9,125
California State, Infrastructure & Economic Development Authority, Pacific Gas & Electric Project, Ser D, RB (A) (B) (C)
0.120%, 04/01/12		14,325		14,325
California State, Kindergarten Project, Ser A-2, GO (A) (B) (C)
0.200%, 04/01/12		24,550		24,550
California State, Kindergarten Project, Ser A-3, GO (A) (B) (C)
0.180%, 04/01/12		7,600		7,600
California State, Kindergarten Project, Ser A-8, GO (A) (B) (C)
0.170%, 04/05/12		29,400		29,400
California State, Kindergarten Project, Ser B-2, GO (A) (B) (C)
0.200%, 04/01/12		1,300		1,300
California State, Kindergarten Project, Ser B-5, GO (A) (B) (C)
0.180%, 04/05/12		9,200		9,200
California State, Ser A-1, GO (A) (B) (C)
0.150%, 04/04/12		5,000		5,000
California State, Ser A-2, GO (A) (B) (C)
0.160%, 04/01/12		5,100		5,100
California State, Ser A-2, GO (A) (B) (C)
0.140%, 04/04/12		7,000		7,000
California State, Ser A-2, RB
2.000%, 06/26/12		21,000		21,079
California State, Ser B-1, GO (A) (B) (C)
0.200%, 04/01/12		7,575		7,575
California State, Ser B-4, GO (A) (B) (C)
0.160%, 04/04/12		15,000		15,000
California Statewide, Communities Development Authority, RB (A) (C)
0.180%, 04/04/12		5,000		5,000
California Statewide, Communities Development Authority, Masters College Project, Ser A, RB (A) (B) (C)
0.170%, 04/05/12		3,000		3,000

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 10

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Money Market Fund (continued)

Description Face Amount(000) Value (000)

California Statewide, Communities Development Authority, Ser D, RB (A) (C)
0.180%, 04/04/12	$	21,500	$	21,500
East Bay, Municipal Utility District, Ser A-1, RB (A) (C)
0.140%, 04/04/12		21,885		21,885
Eastern Municipal Water District, Ser B, COP (A) (C)
0.140%, 04/04/12		10,000		10,000
Eastern Municipal Water District, Ser D, COP (A) (C)
0.150%, 04/04/12		22,375		22,375
Elsinore Valley, Municipal Water District, Ser A, COP (A) (B) (C)
0.160%, 04/04/12		3,485		3,485
Elsinore Valley, Municipal Water District, Ser B, COP (A) (B) (C)
0.150%, 04/04/12		14,700		14,700
Glendale, Police Building Project, COP (A) (C)
0.200%, 04/05/12		19,400		19,400
Hayward California, RB, FNMA (A) (C)
0.190%, 04/05/12		10,000		10,000
Irvine, Improvement Board, Act 1915 Project, District #97-16, COP (A) (B) (C)
0.150%, 04/01/12		3,500		3,500
Irvine, Improvement Board, Act 1915 Project, District #97-17, SAB (A) (B) (C)
0.150%, 04/01/12		7,150		7,150
Long Beach, TRAN
2.000%, 09/28/12		7,000		7,059
Los Angeles County, Metropolitan Transportation Authority, RB (A) (B) (C)
0.150%, 04/05/12		2,000		2,000
Los Angeles County, Metropolitan Transportation Authority, Ser A1, RB (A) (C)
0.200%, 04/05/12		10,785		10,785
Los Angeles County, Metropolitan Transportation Authority, Ser C2, RB (A) (B) (C)
0.150%, 04/05/12		9,325		9,325
Los Angeles County, Metropolitan Transportation Authority, Ser C4, RB, FGIC (A) (B) (C)
0.170%, 04/05/12		2,400		2,400

Description Face Amount(000) Value (000)

Los Angeles, Department of Water & Power, Ser A-3, RB (A) (C)
0.150%, 04/05/12	$	2,500	$	2,500
Los Angeles, Department of Water & Power, Ser B-2, RB (A) (C)
0.170%, 04/01/12		10,100		10,100
Los Angeles, Department of Water & Power, Ser B-3, RB (A) (C)
0.180%, 04/01/12		9,360		9,360
Los Angeles, Department of Water & Power, Ser B-4, RB (A) (C)
0.150%, 04/05/12		14,075		14,075
Metropolitan Water District of Southern California, Ser A-1, RB (A) (C)
0.190%, 04/05/12		10,000		10,000
Metropolitan Water District of Southern California, Ser A-2, RB (A) (C)
0.190%, 04/05/12		11,000		11,000
Metropolitan Water District of Southern California, Ser A-3, RB (A) (C)
0.190%, 04/05/12		10,000		10,000
Modesto, Water Revenue, Ser A, RB (A) (B) (C)
0.200%, 04/05/12		4,800		4,800
Newport Beach, Hoag Memorial Hospital Project, Ser C, RB (A) (C)
0.160%, 04/04/12		14,200		14,200
Oakland-Alameda County, Coliseum Authority, Ser C-1, RB (A) (B) (C)
0.170%, 04/04/12		13,600		13,600
Oakland-Alameda County, Coliseum Authority, Ser C-2, RB (A) (B) (C)
0.170%, 04/04/12		3,300		3,300
Orange County, Water District Authority, Ser A, COP (A) (B) (C)
0.190%, 04/04/12		24,350		24,350
Riverside County, Public Facilities Authority, Ser C, COP (A) (B) (C)
0.150%, 04/04/12		8,000		8,000
Riverside, Water Authority, Ser A, RB (A) (C)
0.260%, 04/05/12		4,915		4,915

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 11

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Money Market Fund (continued)

Description Face Amount(000) Value (000)

Sacramento County, Sanitation District Financing Authority, Ser D, RB (A) (B) (C)
0.200%, 04/01/12	$	29,875	$	29,875
Sacramento County, Sanitation District Financing Authority, Ser E, RB (A) (B) (C)
0.160%, 04/04/12		6,700		6,700
San Diego County, Regional Transportation Commission, Ser B, RB (A) (C)
0.160%, 04/05/12		12,980		12,980
San Diego County, Regional Transportation Commission, Ser D, RB (A) (C)
0.160%, 04/05/12		11,085		11,085
San Francisco City & County, Airports Commission, Ser 37C, RB (A) (B) (C)
0.160%, 04/04/12		10,000		10,000
San Francisco City & County, GO
0.100%, 04/03/12		17,007		17,007
San Francisco City & County, Ser A, GO, AMBAC (D)
Pre-Refunded @ 102
5.000%, 06/15/12		3,460		3,562
Santa Clara County, Financing Authority, VMC Facility Replacement Project, Ser B, RB (A) (C)
0.180%, 04/04/12		9,820		9,820
Santa Clara Valley, Transportation Authority, Ser C, RB (A) (C)
0.170%, 04/05/12		12,000		12,000
Santa Clara Valley, Transportation Authority, Ser C, RB (A) (C)
0.140%, 04/05/12		995		995
Santa Clara Valley, Transportation Authority, Ser D, RB (A) (C)
0.140%, 04/05/12		20,800		20,800
Southern California, Public Power Authority, RB (A) (B) (C)
0.190%, 04/04/12		9,000		9,000
University of California, Regents Medical Center, Ser B-1, RB (A) (C)
0.170%, 04/01/12		16,505		16,505
Total California				747,579

Description Face Amount(000) Value (000)

Nebraska [1.0%]
Nebraska State, Educational Finance Authority, RB (A) (B) (C)
0.200%, 04/01/12	$	9,010	$	9,010
New York [0.6%]
New York City, Transitional Finance Authority Future Tax Secured Revenue, Ser C, RB (B) (C)
0.190%, 04/01/12		5,000		5,000
Total Municipal Bonds (Cost $761,589)				761,589
Commercial Paper [8.8%]
California [8.8%]
California State, Department of Water Resources
0.090%, 04/04/12		4,559		4,559
Los Angeles, Municipal Improvement
0.110%, 06/06/12		10,000		10,000
Orange County
0.130%, 05/03/12		15,000		15,000
Regent of the University of California
0.110%, 06/06/12		20,000		20,000
Sacramento, Municipal Utility District
0.120%, 06/14/12		15,000		15,000
San Diego, Water Authority
0.120%, 06/06/12		13,100		13,100
Total California
Total Commercial Paper (Cost $77,659)				77,659
Total Investments [95.4%] (Cost $839,248)			$	839,248

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 12

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Money Market Fund (concluded)

Percentages are based on Net Assets of $880,109 ($ Thousands).

(A) Put and Demand Feature — The date reported is the next reset or put date.

(B) Securities are held in conjunction with a letter of credit from a major bank or financial institution.

(C) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

(D) Pre-Refunded Security — The maturity date shown is the pre-refunded date.

AMBAC — American Municipal Bond Assurance Company

COP — Certificate of Participation

FGIC — Financial Guaranty Insurance Company

FNMA — Federal National Mortgage Association

GO — General Obligation

RB — Revenue Bond

SAB — Special Assessment Board

Ser — Series

TRAN — Tax and Revenue Anticipation Note

As of March 31, 2012, all of the Fund’s investments are Level 2.

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 13

schedule of investments

March 31, 2012 (Unaudited)

Limited Maturity Fixed Income Fund

Description	Face Amount (000)			Value (000)
U.S. Government Agency Obligations [38.5%]
FHLB
5.750%, 05/15/12		$	1,750	$	1,762
0.875%, 08/22/12			2,000		2,005
FHLMC
4.375%, 07/17/15			1,300		1,454
2.500%, 04/23/14			1,200		1,252
2.125%, 09/21/12			1,750		1,766
FNMA
5.250%, 08/01/12			1,000		1,016
5.000%, 03/15/16			600		694
5.000%, 02/13/17			1,000		1,177
2.750%, 03/13/14			1,300		1,362
0.700%, 09/19/14			545		545
0.500%, 08/09/13			2,000		2,005
Total U.S. Government Agency Obligations (Cost $14,902)					15,038
Corporate Bonds [26.2%]
Banks [13.2%]
ANZ National International
6.200%, 07/19/13			625		656
Bank of America
4.875%, 01/15/13			150		153
Barclays Bank, MTN
2.930%, 04/10/12 (A)			545		529
Citigroup
6.375%, 08/12/14			600		651
Credit Suisse NY, MTN
5.000%, 05/15/13			600		623
Goldman Sachs Group
5.125%, 01/15/15			600		639
JPMorgan Chase, MTN
2.050%, 01/24/14			660		671
Morgan Stanley
5.375%, 10/15/15			600		620

Description Face Amount(000) Value (000)

Wachovia
5.750%, 06/15/17	$	545	$	628
Total Banks				5,170
Computer System Design & Services [1.1%]
Hewlett-Packard
2.950%, 08/15/12		120		121
IBM
4.750%, 11/29/12		165		170
2.100%, 05/06/13		140		142
Total Computer System Design & Services				433
Financial Services [7.8%]
CME Group
5.400%, 08/01/13		625		662
General Electric Capital
2.950%, 05/09/16		545		569
General Electric Capital, MTN
2.000%, 09/28/12		1,000		1,009
HSBC Finance
5.500%, 01/19/16		600		650
John Deere Capital, MTN
5.250%, 10/01/12		150		154
Total Financial Services				3,044
Food, Beverage & Tobacco [0.2%]
PepsiCo
5.150%, 05/15/12		60		60
Investment Banker/Broker Dealer [2.0%]
Merrill Lynch, MTN
5.000%, 01/15/15		600		626
Morgan Stanley
6.600%, 04/01/12		150		150
Total Investment Banker/Broker Dealer				776
Retail [0.4%]
Wal-Mart Stores
5.000%, 04/05/12		170		170
Telephones & Telecommunications [1.5%]
AT&T
2.400%, 08/15/16		545		563
Total Corporate Bonds (Cost $10,127)				10,216

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 14

schedule of investments

March 31, 2012 (Unaudited)

Limited Maturity Fixed Income Fund (continued)

Description Face Amount(000) Value (000)

U.S. Treasury Obligations [18.3%]
U.S. Treasury Notes
4.250%, 08/15/15	$	3,000	$	3,361
4.125%, 08/31/12		1,000		1,016
2.375%, 09/30/14		1,400		1,467
0.250%, 02/28/14		1,300		1,298
Total U.S. Treasury Obligations (Cost $6,953)				7,142
U.S. Government Mortgage-Backed Obligations [6.5%]
FHLMC, Pool G12806
5.500%, 09/01/22		134		145
FHLMC, Pool G18247
5.000%, 04/01/23		90		96
FHLMC, Pool G18251
5.000%, 05/01/23		133		143
FHLMC, Pool G18321
4.500%, 08/01/24		74		79
FHLMC, Pool J04241
5.500%, 01/01/22		70		76
FHLMC, Pool J04459
5.000%, 03/01/22		69		74
FHLMC, Pool J04508
5.000%, 03/01/22		82		89
FHLMC, Pool J07575
5.000%, 04/01/23		76		82
FNMA, Pool 541946
7.500%, 07/01/30		—		1
FNMA, Pool 837196
5.500%, 02/01/21		157		172
FNMA, Pool 933915
4.500%, 06/01/23		148		158
FNMA, Pool 961783
4.500%, 02/01/23		149		159
FNMA REMIC, Ser 2012-1, Cl AE
1.750%, 12/25/21		525		530
FNMA REMIC, Ser 2011-79, Cl GC
2.000%, 12/25/22		725		736
Total U.S. Government Mortgage-Backed Obligations (Cost $2,442)				2,540
Municipal Bonds [6.0%]
California [6.0%]
California State, Ser A2, RB
2.000%, 06/26/12		545		548
Southern California, Public Power Authority, Ser B, RB, AGM, ETM
6.930%, 05/15/17		1,000		1,255

Description	Face Amount (000)/Shares			Value (000)
University of California, RB (A)
1.988%, 06/14/12		$	545	$	552
Total California					2,355
Total Municipal Bonds (Cost $2,273)					2,355
Sovereign Debt [2.0%]
Province of Ontario, Canada
4.100%, 06/16/14			600		646
1.875%, 11/19/12			125		126
Total Sovereign Debt (Cost $759)					772
Asset-Backed Securities [0.8%]
Mercedes-Benz Auto Receivables Trust, Ser 2009-1, Cl A4
2.430%, 03/15/16			165		168
USAA Auto Owner Trust, Ser 2009-2, Cl A4
2.530%, 07/15/15			135		137
Total Asset-Backed Securities (Cost $300)					305
Short-Term Investment [1.1%]
AIM STIT-Treasury Portfolio, 0.020%*			433,439		433
Total Short-Term Investment (Cost $433)					433
Total Investments [99.4%] (Cost $38,189)				$	38,801

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 15

schedule of investments

March 31, 2012 (Unaudited)

Limited Maturity Fixed Income Fund (concluded)

Percentages are based on Net Assets of $39,036 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

AGM — Assured Guarantee Municipal

Cl — Class

ETM — Escrowed to Maturity

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

MTN — Medium Term Note

RB — Revenue Bond

REMIC — Real Estate Mortgage Investment Conduit

Ser — Series

Amounts designated as “—” are either $0 or have been rounded to $0.

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
U.S. Government Agency Obligations	$	—	$	15,038	$	—	$	15,038
Corporate Bonds		—		10,216		—		10,216
U.S. Treasury Obligations		—		7,142		—		7,142
U.S. Government Mortgage-Backed Obligations		—		2,540		—		2,540
Municipal Bonds		—		2,355		—		2,355
Sovereign Debt		—		772		—		772
Asset-Backed Securities		—		305		—		305
Short-Term Investment		433		—		—		433
Total Investments in Securities	$	433	$	38,368	$	—	$	38,801

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 16

schedule of investments

March 31, 2012 (Unaudited)

Government Bond Fund

Description	Face Amount (000)			Value (000)
U.S. Government Mortgage-Backed Obligations [47.2%]
FHLB CMO, Ser 2008-1239, Cl I
4.805%, 08/20/15		$	4,383	$	4,738
FHLMC REMIC, Ser 2004-2782, Cl HE
4.000%, 09/15/17			19		19
FHLMC REMIC, Ser 2006-R005, Cl AB
5.500%, 12/15/18			909		925
FHLMC REMIC, Ser 2006-R009, Cl AJ
5.750%, 12/15/18			2,657		2,709
FHLMC REMIC, Ser 2007-R010, Cl AB
5.500%, 12/15/19			2,063		2,121
FHLMC REMIC, Ser 2007-R011, Cl AB
5.500%, 12/15/20			3,493		3,598
FHLMC REMIC, Ser 2007-R012, Cl AB
5.500%, 12/15/20			1,101		1,122
FHLMC REMIC, Ser 2007-R013, Cl AB
6.000%, 12/15/21			92		93
FHLMC REMIC, Ser 2011-3805, Cl EK
4.000%, 06/15/40			6,520		6,809
FHLMC REMIC, Ser 2011-3806, Cl UP
4.500%, 02/15/41			7,569		8,270
FHLMC REMIC, Ser 2012-4020, Cl EJ
3.000%, 02/15/42			5,000		5,162
FNMA ARM
2.441%, 03/01/34 (A)			288		306
FNMA REMIC, Ser 2011-144, Cl CE
1.250%, 06/25/35			1,708		1,706
FNMA REMIC, Ser 2011-17, Cl EK
4.000%, 07/25/25			5,372		5,652
FNMA REMIC, Ser 2011-79, Cl GC
2.000%, 12/25/22			6,589		6,687

Description Face Amount(000) Value (000)

FNMA REMIC, Ser 2011-99, Cl AV
4.000%, 08/25/24	$	7,759	$	8,313
FNMA REMIC, Ser 2012-32, Cl DE
3.000%, 12/25/26		8,000		8,350
GNMA
8.000%, 08/15/22		10		11
7.500%, 06/15/24		3		3
7.500%, 05/15/26		3		4
7.500%, 04/15/32		29		33
7.000%, 12/15/16		7		8
6.000%, 01/15/29		5		6
GNMA ARM (A)
1.750%, 04/20/35		407		422
1.625%, 08/20/35		81		84
GNMA CMO, Ser 2010-87, Cl NE
3.000%, 09/20/38		6,987		7,259
GNMA CMO, Ser 2010-99, Cl XJ
3.500%, 08/20/39		7,169		7,558
Total U.S. Government Mortgage-Backed Obligations (Cost $81,435)				81,968
U.S. Government Agency Obligations [40.6%]
Egypt Government AID Bond
4.450%, 09/15/15		8,000		8,988
FAMC, MTN
3.250%, 06/25/14		7,000		7,376
FFCB
1.875%, 12/07/12		8,000		8,091
0.600%, 08/01/13		8,000		8,006
FHLB
3.250%, 09/12/14		3,000		3,196
0.683%, 04/08/14 (A)		8,000		8,040
FNMA
0.700%, 09/19/14		4,000		3,999
Israel Government AID Bond
4.038%, 05/15/20 (B)		15,528		12,701
Tennessee Valley Authority, Ser E
6.250%, 12/15/17		8,000		10,096
Total U.S. Government Agency Obligations (Cost $67,992)				70,493
U.S. Treasury Obligations [8.5%]
U.S. Treasury Notes
1.375%, 05/15/13		5,000		5,062
1.375%, 11/30/15		5,500		5,632
1.250%, 02/15/14		4,000		4,068
Total U.S. Treasury Obligations (Cost $14,548)				14,762

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 17

schedule of investments

March 31, 2012 (Unaudited)

Government Bond Fund (concluded)

Description	Shares		Value (000)
Short-Term Investment [3.5%]
Goldman Sachs Financial Square Funds - Government Fund, 0.040%*		6,163,645	$	6,164
Total Short-Term Investment (Cost $6,164)				6,164
Total Investments [99.8%] (Cost $170,139)			$	173,387

Percentages are based on Net Assets of $173,734 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

(B) Zero coupon security. The rate reported is the effective yield at time of purchase.

AID — Agency for International Development

ARM — Adjustable Rate Mortgage

Cl — Class

CMO — Collateralized Mortgage Obligation

FAMC — Federal Agriculture Mortgage Corporation

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GNMA — Government National Mortgage Association

MTN — Medium Term Note

REMIC — Real Estate Mortgage Investment Conduit

Ser — Series

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
U.S. Government Mortgage-Backed Obligations	$	—	$	81,968	$	—	$	81,968
U.S. Government Agency Obligations		—		70,493		—		70,493
U.S. Treasury Obligations		—		14,762		—		14,762
Short-Term Investment		6,164		—		—		6,164
Total Investments in Securities	$	6,164	$	167,223	$	—	$	173,387

For the period ended March 31, 2012, there have been no significant transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 18

schedule of investments

March 31, 2012 (Unaudited)

Corporate Bond Fund

Description	Face Amount (000)			Value (000)
Corporate Bonds [92.6%]
Automotive [0.8%]
Daimler Finance North America
1.875%, 09/15/14 (A)		$	1,000	$	1,014
Banks [20.2%]
ANZ National Int'l
3.250%, 04/02/12 (A)			2,000		2,000
Bank of America, FDIC Insured, MTN
3.125%, 06/15/12			1,500		1,509
Barclays Bank
6.050%, 12/04/17 (A)			1,000		1,028
Barclays Bank, MTN
2.930%, 03/10/17 (B)			1,950		1,890
Citigroup
5.850%, 08/02/16			980		1,070
5.500%, 02/15/17			250		262
Citigroup Funding, FDIC Insured
2.250%, 12/10/12			2,500		2,535
Countrywide Financial
6.250%, 05/15/16			1,200		1,250
Credit Suisse
5.500%, 08/15/13			1,250		1,313
Deutsche Bank, MTN
3.875%, 08/18/14			853		891
JPMorgan Chase
6.000%, 10/01/17			1,890		2,163

Description Face Amount(000) Value (000)

JPMorgan Chase, FDIC Insured
2.125%, 12/26/12	$	2,500	$	2,535
Nordea Bank
2.250%, 03/20/15 (A)		500		500
Societe Generale
2.200%, 09/14/13 (A)		2,000		1,997
Wachovia Bank, MTN
4.800%, 11/01/14		3,240		3,473
Total Banks				24,416
Chemicals [1.0%]
Dow Chemical
5.900%, 02/15/15		1,000		1,126
Communication & Media [2.2%]
CBS
8.875%, 05/15/19		1,000		1,314
Comcast Cable Communications Holdings
8.375%, 03/15/13		160		171
Time Warner Cable
5.850%, 05/01/17		1,000		1,167
Total Communication & Media				2,652
Computer System Design & Services [3.4%]
Cisco Systems
5.500%, 02/22/16		1,250		1,451
Dell
5.625%, 04/15/14		1,000		1,096
Hewlett-Packard
6.125%, 03/01/14		1,470		1,600
Total Computer System Design & Services				4,147
Diversified Operations [2.4%]
3M, MTN
4.375%, 08/15/13		500		527
Siemens Financieringsmat
5.750%, 10/17/16 (A)		2,000		2,330
Total Diversified Operations				2,857
Electric Utilities [1.6%]
Commonwealth Edison
6.950%, 07/15/18		1,000		1,207
Exelon
4.900%, 06/15/15		638		696
Total Electric Utilities				1,903

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 19

schedule of investments

March 31, 2012 (Unaudited)

Corporate Bond Fund (continued)

Description Face Amount(000) Value (000)

Electrical Services [2.0%]
Alabama Power
4.850%, 12/15/12	$	1,380	$	1,422
American Electric Power
5.250%, 06/01/15		986		1,075
Total Electrical Services				2,497
Finance Auto Loans [0.9%]
Harley-Davidson Financial Services, MTN
3.875%, 03/15/16 (A)		1,000		1,043
Financial Services [14.2%]
Ally Financial, FDIC Insured
2.200%, 12/19/12		2,500		2,535
American Express Credit, MTN
2.800%, 09/19/16		2,100		2,158
Caisse Centrale Desjardins du Quebec
2.650%, 09/16/15 (A)		3,000		3,089
CME Group
5.400%, 08/01/13		95		101
General Electric Capital
2.150%, 01/09/15		3,000		3,064
General Electric Capital, FDIC Insured, MTN
2.625%, 12/28/12		2,770		2,819
HSBC Finance
5.250%, 04/15/15		1,250		1,341
John Deere Capital, MTN
1.250%, 12/02/14		2,000		2,026
Total Financial Services				17,133
Food, Beverage & Tobacco [4.2%]
Anheuser-Busch InBev Worldwide
5.375%, 11/15/14		1,195		1,327
Bottling Group
6.950%, 03/15/14		1,000		1,121
5.500%, 04/01/16		1,000		1,158
4.625%, 11/15/12		435		446
Dr Pepper Snapple Group
2.900%, 01/15/16		1,000		1,039
Total Food, Beverage & Tobacco				5,091
Internet Security [0.9%]
Symantec
2.750%, 09/15/15		1,000		1,041
Investment Banker/Broker Dealer [6.7%]
Goldman Sachs Group
5.625%, 01/15/17	$	1,700	$	1,786
Jefferies Group
8.500%, 07/15/19		870		966
Macquarie Group
6.000%, 01/14/20 (A)		2,000		1,997
Morgan Stanley, MTN
6.250%, 08/28/17		2,000		2,106
Nomura Holdings, MTN
4.125%, 01/19/16		1,200		1,210
Total Investment Banker/Broker Dealer				8,065
Medical Products & Services [2.5%]
Teva Pharmaceutical Finance IV
1.700%, 11/10/14		3,000		3,047
Metal-Copper [0.8%]
Freeport-McMoRan Copper
1.400%, 02/13/15		1,000		996
Petroleum & Fuel Products [9.5%]
BP Capital Markets
5.250%, 11/07/13		2,000		2,137
ConocoPhillips Canada Funding I
5.625%, 10/15/16		2,000		2,353
Duke Capital
5.500%, 03/01/14		615		655
Kinder Morgan Energy Partners
6.000%, 02/01/17		1,000		1,153
Shell International Finance
3.250%, 09/22/15		1,500		1,617
Total Capital International
1.500%, 02/17/17		2,500		2,433
Transocean
6.000%, 03/15/18		1,000		1,107
Total Petroleum & Fuel Products				11,455
Real Estate Investment Trusts [4.7%]
HCP
5.650%, 12/15/13		500		530
5.625%, 05/01/17		500		550
Health Care REIT
4.700%, 09/15/17		1,000		1,049
Kimco Realty
6.875%, 10/01/19		1,080		1,263

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 20

schedule of investments

March 31, 2012 (Unaudited)

Corporate Bond Fund (continued)

Description	Face Amount (000)/Shares			Value (000)
Simon Property Group
6.100%, 05/01/16		$	2,000	$	2,301
Total Real Estate Investment Trusts					5,693
Retail [4.8%]
CVS Caremark
6.125%, 08/15/16			1,000		1,173
Kroger
5.500%, 02/01/13			450		468
Tesco
2.000%, 12/05/14 (A)			2,000		2,033
Wal-Mart Stores
2.875%, 04/01/15			2,000		2,122
Total Retail					5,796
Telephones & Telecommunications [9.8%]
AT&T
5.100%, 09/15/14			2,000		2,201
2.400%, 08/15/16			1,870		1,933
Deutsche Telekom International Finance
5.250%, 07/22/13			475		500
Motorola Solutions
6.000%, 11/15/17			1,000		1,158
Telefonica Emisiones
6.421%, 06/20/16			1,000		1,066
Verizon Communications
5.550%, 02/15/16			2,195		2,521
Vodafone Group
5.000%, 09/15/15			2,250		2,525
Total Telephones & Telecommunications					11,904
Total Corporate Bonds (Cost $108,354)					111,876
Unaffiliated Registered Investment Company [2.1%]
Vanguard High-Yield Corporate Fund			427,350		2,496
Total Unaffiliated Registered Investment Company (Cost $2,500)					2,496
Municipal Bonds [1.8%]
California [1.8%]
California State, GO
5.700%, 11/01/21			185		209

Description Face Amount (000)/Shares Value (000)

California State, Ser A-2, RB
2.000%, 06/26/12	$	2,000	$	2,008
Total California				2,217
Total Municipal Bonds (Cost $2,196)				2,217
Sovereign Debt [1.2%]
Korea National Oil
2.875%, 11/09/15 (A)		1,000		1,012
United Mexican States, MTN
5.875%, 01/15/14		450		487
Total Foreign Governments				1,499
Total Sovereign Debt (Cost $1,452)				1,499
U.S. Treasury Obligation [0.6%]
U.S. Treasury Inflation Protection Security
2.000%, 01/15/14		613		656
Total U.S. Treasury Obligation (Cost $618)				656
U.S. Government Mortgage-Backed Obligation [0.2%]
FNMA REMIC, Ser 2002-56, Cl MC
5.500%, 09/25/17		264		287
Total U.S. Government Mortgage-Backed Obligation (Cost $263)				287
Short-Term Investment [0.6%]
Fidelity Institutional Money Market Portfolio, Cl I, 0.218%*		730,302		730
Total Short-Term Investment (Cost $730)				730
Total Investments [99.1%] (Cost $116,113)			$	119,761

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 21

schedule of investments

March 31, 2012 (Unaudited)

Corporate Bond Fund (concluded)

Percentages are based on Net Assets of $120,819 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On March 31, 2012, the value of these securities amounted to $18,043 (000), representing 14.9% of the net assets of the Fund.

(B) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

Cl — Class

FDIC Insured — Federal Depositary Insurance Corporation

FNMA — Federal National Mortgage Association

GO — General Obligation

MTN — Medium Term Note

RB — Revenue Bond

REIT — Real Estate Investment Trust

REMIC — Real Estate Mortgage Investment Conduit

Ser — Series

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	111,876	$	—	$	111,876
Unaffiliated Registered Investment Company		2,496		—		—		2,496
Municipal Bonds		—		2,217		—		2,217
Sovereign Debt		—		1,499		—		1,499
U.S. Treasury Obligation		—		656		—		656
U.S. Government Mortgage-Backed Obligation		—		287		—		287
Short-Term Investment		730		—		—		730
Total Investments in Securities	$	3,226	$	116,535	$	—	$	119,761

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 22

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Bond Fund

Description	Face Amount (000)			Value (000)
Municipal Bonds [95.2%]
Arizona [1.4%]
Arizona State, School Facilities Board, Ser C, COP, AGM
Callable 09/01/14 @ 100
5.000%, 09/01/15		$	750	$	811
California [87.5%]
Azusa, Redevelopment Agency, Mortgage-Backed Securities Program, Ser A, RB, FNMA, ETM
6.875%, 10/01/12			200		206
Bay Area, Infrastructure Financing Authority, State Payment Acceleration Project, RB, NATL-RE FGIC
Callable 08/01/14 @ 100
5.000%, 08/01/17			600		650
California State, Economic Recovery Authority, Ser A, GO, NATL-RE
Callable 07/01/14 @ 100
5.000%, 07/01/15			965		1,055
California State, Economic Recovery Authority, Ser B, GO (A)
4.000%, 07/01/23			750		802
California State, Educational Facilities Authority, Loyola Marymount, RB
4.000%, 10/01/13			500		525
California State, Educational Facilities Authority, Stanford University Project, Ser T-4, RB
5.000%, 03/15/14			350		381

Description Face Amount (000) Value (000)

California State, GO
Callable 03/01/15 @ 100
5.000%, 03/01/16	$	1,500	$	1,667
California State, GO
Callable 05/04/12 @ 100
5.000%, 02/01/18		175		176
California State, GO
4.000%, 02/01/18		1,000		1,116
California State, GO
5.000%, 09/01/20		1,000		1,175
California State, GO
Callable 11/01/20 @ 100
5.000%, 11/01/22		1,025		1,172
California State, GO
Callable 09/01/21 @ 100
5.250%, 09/01/25		900		1,028
California State, Health Facilities Financing Authority, Ser A, RB
5.000%, 07/01/18		500		576
California State, Health Facilities Financing Authority, Ser A, RB
5.500%, 08/15/18		125		152
California State, Health Facilities Financing Authority, Stanford Hospital, Ser A, RB
Callable 11/15/13 @ 100
5.000%, 11/15/23		1,000		1,063
California State, Infrastructure & Economic Authority, Bay Area Toll Bridges Project, Ser A, RB, AGM (B)
Pre-Refunded @ 100
5.250%, 07/01/13		125		133
California State, Public Works Board, Department of Corrections-Administration Project, Ser A, RB, AMBAC
Callable 05/04/12 @ 100
5.250%, 03/01/18		155		155
California State, Public Works Board, Department of Corrections-State Prisons, Ser A, RB, AMBAC
5.000%, 12/01/19		850		925
California State, Public Works Board, Department of Mental Health Project, Ser A, RB
5.250%, 06/01/13		200		209
California State, Public Works Board, Ser A, RB
4.000%, 04/01/17		500		545

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 23

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Bond Fund (continued)

Description Face Amount(000) Value (000)

California State, Public Works Board, State Prisons, Ser C, RB
5.000%, 10/01/16	$	1,000	$	1,131
California State, Public Works Board, University of California Project, Ser C-1, RB
Callable 03/01/20 @ 100
5.000%, 03/01/21		660		774
California State, Public Works Board, University of California Research Project, Ser L, RB, NATL-RE
Callable 11/01/15 @ 100
5.250%, 11/01/16		1,000		1,152
California Statewide, Communities Development Authority, Kaiser Permanente, Ser A, RB
5.000%, 04/01/19		200		235
California Statewide, Communities Development Authority, Kaiser Permanente, Ser B, RB (A)
3.900%, 08/01/31		625		667
California Statewide, Communities Development Authority, Proposition 1A Receivables, Ser PG, RB
5.000%, 06/15/13		2,460		2,592
Carlsbad, Public Financing Authority, Municipal Golf Course Project, Ser A, RB, AMBAC
4.500%, 09/01/16		350		394
Castaic Lake, Water Agency, 1999 Project, Ser A, COP, AMBAC
Callable 08/01/16 @ 100
5.000%, 08/01/22		275		302
Castaic Lake, Water Agency, Water Systems Improvement Project, Ser A, COP, NATL-RE
7.000%, 08/01/13		300		324
El Camino, Hospital District, GO, NATL-RE
Callable 02/01/17 @ 100
5.000%, 08/01/20		500		547
Fresno, Unified School District, Election 2001 Project, Ser D, GO, NATL-RE (B)
Pre-Refunded @ 102
5.000%, 08/01/13		200		216
Gilroy, Unified School District, GO (C)
3.564%, 04/01/13		500		491

Description Face Amount (000) Value (000)

Gilroy, Unified School District, GO, NATL-RE FGIC
Callable 08/01/13 @ 100
5.250%, 08/01/19	$	800	$	844
Golden State, Tobacco Settlement, Enhanced-Asset Backed, Ser A, RB, AMBAC
Callable 04/19/12 @ 100
5.000%, 06/01/20		500		501
Golden State, Tobacco Settlement, Ser A-1, RB (B)
Pre-Refunded @ 100
6.750%, 06/01/13		920		989
Jefferson, Unified High School District, Ser A, GO, NATL-RE FGIC
5.000%, 08/01/14		200		215
Los Angeles County, Metropolitan Transportation Authority, Proposition C, Ser A, RB, NATL-RE
Callable 07/01/14 @ 100
5.000%, 07/01/16		200		220
Los Angeles County, Sanitation Districts Financing Authority, Capital Projects (District #14), Sub-Ser B, RB, NATL-RE FGIC
3.750%, 10/01/14		175		189
Los Angeles, Department of Water & Power, Power Systems Project, Sub-Ser A-2, RB, AGM
Callable 07/01/15 @ 100
5.000%, 07/01/25		1,000		1,110
Los Angeles, Municipal Improvement Authority, Capital Equipment, Ser A, RB
4.000%, 11/01/19		475		527
Los Angeles, Municipal Improvement Authority, Central Library Project, Ser A, RB, NATL-RE
5.250%, 06/01/12		300		302
Los Angeles, Municipal Improvement Authority, Central Library Project, Ser A, RB, NATL-RE
Callable 06/01/12 @ 100
5.500%, 06/01/18		500		503
Los Angeles, Municipal Improvement Authority, Real Property, Ser E, RB
5.000%, 09/01/15		275		305

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 24

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Bond Fund (continued)

Description Face Amount(000) Value (000)

Los Angeles, Municipal Improvement Authority, Ser C, RB
4.000%, 09/01/16	$	500	$	551
Los Angeles, Unified School District, COP, AMBAC
5.000%, 10/01/12		750		766
Los Angeles, Unified School District, Ser A-1, GO, NATL-RE
Callable 07/01/14 @ 100
5.000%, 07/01/17		165		182
Los Angeles, Unified School District, Ser I, GO
Callable 07/01/19 @ 100
5.250%, 07/01/23		1,000		1,172
Los Angeles, Wastewater Systems Authority, Ser A, RB
5.000%, 06/01/14		825		902
Modesto, Irrigation District, Ser A, RB
5.000%, 07/01/17		1,000		1,161
Mount San Antonio, Community College District, GO (C)
3.928%, 05/01/15		500		478
M-S-R Public Power Agency, Sub-Ser L, RB, AGM
5.000%, 07/01/18		500		581
Oakley, Civic Center Project, COP
4.000%, 05/01/12		230		230
Orange County, Public Financing Authority, RB, NATL-RE
5.000%, 07/01/17		1,050		1,225
Orange County, Sanitation District, Ser A, COP
3.000%, 02/01/17		500		548
Port of Oakland, Ser B, RB, NATL-RE
Callable 11/01/17 @ 100
5.000%, 11/01/23		500		527
Port of Oakland, Ser C, RB, NATL-RE
5.000%, 11/01/15		450		497
Riverside County, Ser A, COP, AMBAC
5.000%, 11/01/17		1,500		1,727
Sacramento, Area Flood Control Agency, Ser A, SAB, NATL-RE FGIC
Callable 10/01/17 @ 100
5.000%, 10/01/21		400		451

Description Face Amount (000) Value (000)

Sacramento, City Financing Authority, EPA Building Project, Ser A, RB, AMBAC
Callable 05/04/12 @ 100
4.750%, 05/01/17	$	525	$	526
Sacramento, Municipal Utility District, Ser T, RB, NATL-RE FGIC
Callable 05/15/14 @ 100
5.250%, 05/15/22		805		878
Sacramento, Unified School District, Election of 2002, GO, NATL-RE
Callable 07/01/15 @ 100
5.000%, 07/01/18		300		330
San Diego, Public Facilities Financing Authority Sewer Revenue, Ser A, RB
Callable 05/15/20 @ 100
5.250%, 05/15/24		500		596
San Diego, Public Facilities Financing Authority, Ser B, RB
5.000%, 05/15/14		750		819
San Francisco City & County, Airports Commission, Ser B, RB
5.000%, 05/01/17		495		578
San Francisco City & County, Finance, RB, NATL-RE
Callable 07/01/14 @ 100
3.750%, 07/01/18		500		509
San Francisco City & County, Multiple Capital Improvement Projects, Ser B, COP
Callable 04/01/19 @ 100
5.000%, 04/01/22		735		802
San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA
5.000%, 08/01/17		540		604
San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA, NATL-RE
5.000%, 08/01/15		300		324
San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA, NATL-RE FGIC
5.250%, 08/01/13		500		528
San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA, NATL-RE FGIC
Callable 08/01/13 @ 100
5.250%, 08/01/18		600		623

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 25

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Bond Fund (continued)

Description Face Amount(000) Value (000)

San Francisco, Bay Area Transit Financing Authority, Ser A, RB, NATL-RE
Callable 07/01/15 @ 100
5.000%, 07/01/24	$	550	$	596
San Mateo, Unified High School District, GO (C)
1.049%, 02/15/15		1,000		966
Santa Margarita, Dana Point Authority, Improvement Districts 3-3A-4-4A, Ser A, RB, AMBAC
Callable 08/01/14 @ 100
5.000%, 08/01/15		290		320
Santa Monica, Public Financing Authority, Ser A, RB
5.000%, 06/01/21		580		701
Solano County, COP, NATL-RE (B)
Pre-Refunded @ 100
5.250%, 11/01/12		100		103
Southern California, Public Power Authority, Subordinated Southern Transmission Project, Ser A, RB
5.000%, 07/01/17		1,200		1,418
University of California, Regents Medical Center, Ser E, RB
Callable 05/15/17 @ 101
5.000%, 05/15/21		250		285
University of California, Revenues Unrefunded Balance General, Ser A, RB, AMBAC
Callable 05/15/13 @ 100
5.125%, 05/15/15		510		536
Total California				51,281
Illinois [0.6%]
Cook County, Forest Preservation District, GO, AMBAC
Callable 11/15/14 @ 100
5.250%, 11/15/15		300		327
New York [1.9%]
New York City, Housing Development, Ser F, RB
Callable 05/04/12 @ 100
1.950%, 11/01/12		500		500
New York State, Local Assistance Correction Authority, Ser E, RB
6.000%, 04/01/14		540		579
Total New York				1,079

Description	Face Amount (000)/Shares			Value (000)
South Carolina [0.7%]
South Carolina State, Jobs & Economic Development Authority, Palmetto Health Project, Ser C, RB (B)
Pre-Refunded @ 100
6.875%, 08/01/13		$	400	$	434
Washington [1.9%]
Central Puget Sound, Regional Transit Authority, Ser A, RB, AMBAC
Callable 05/01/15 @ 100
5.000%, 11/01/21			1,000		1,109
Puerto Rico [1.2%]
Puerto Rico, Sales Tax Financing, Sub-Ser A, RB, ETM
4.000%, 08/01/16			130		148
Puerto Rico, Sales Tax Financing, Sub-Ser A, RB
4.000%, 08/01/16			475		514
Total Puerto Rico					662
Total Municipal Bonds (Cost $53,944)					55,703
Short-Term Investment [2.9%]
Federated California Municipal Money Market Fund, Cl I, 0.020%*			1,707,684		1,708
Total Short-Term Investment (Cost $1,708)					1,708
Total Investments [98.1%] (Cost $55,652)				$	57,411

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 26

schedule of investments

March 31, 2012 (Unaudited)

California Tax Exempt Bond Fund (concluded)

Percentages are based on Net Assets of $58,509 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

(B) Pre-Refunded Security — The maturity date shown is the pre-refunded date.

(C) Zero coupon security. The rate reported is the effective yield at time of purchase.

AGM — Assured Guarantee Municipal

AMBAC — American Municipal Bond Assurance Company

Cl — Class

COP — Certificate of Participation

ETM — Escrowed to Maturity

FGIC — Financial Guaranty Insurance Company

FNMA — Federal National Mortgage Association

GO — General Obligation

NATL-RE — National Public Finance Guarantee Corporation

RB — Revenue Bond

SAB — Special Assessment Board

Ser — Series

TA — Tax Allocation

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
Municipal Bonds	$	—	$	55,703	$	—	$	55,703
Short-Term Investment		1,708		—		—		1,708
Total Investments in Securities	$	1,708	$	55,703	$	—	$	57,411

For the period ended March 31, 2012, there have been no significant transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 27

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund

Description	Face Amount (000)			Value (000)
Corporate Bonds [39.7%]
Agriculture [0.2%]
Bunge NA Finance
5.900%, 04/01/17		$	100	$	111
Automotive [0.6%]
Johnson Controls
5.500%, 01/15/16			100		113
Volkswagen International Finance
2.375%, 03/22/17 (A)			125		126
Total Automotive					239
Banks [10.5%]
Bank of America
10.200%, 07/15/15			100		112
Bank of America, MTN
7.375%, 05/15/14			170		184
Bank of Nova Scotia
2.250%, 01/22/13			325		329
Barclays Bank
5.125%, 01/08/20			100		105
BB&T, MTN
3.375%, 09/25/13			260		269
Canadian Imperial Bank of Commerce
2.350%, 12/11/15			320		329
Capital One Financial
7.375%, 05/23/14			100		111
Citigroup
6.375%, 08/12/14			300		325
Commonwealth Bank of Australia
5.000%, 10/15/19 (A)			150		162

Description Face Amount (000) Value (000)

Credit Suisse NY, MTN
5.300%, 08/13/19	$	150	$	166
Deutsche Bank, MTN
3.450%, 03/30/15		100		104
Dresdner Bank - New York
7.250%, 09/15/15		150		154
Goldman Sachs Group
3.625%, 02/07/16		330		330
ING Bank
3.750%, 03/07/17 (A)		200		198
JPMorgan Chase
4.650%, 06/01/14		305		325
4.250%, 10/15/20		150		154
KeyCorp, MTN
3.750%, 08/13/15		175		185
Kookmin Bank
7.250%, 05/14/14 (A)		100		110
PNC Funding
4.250%, 09/21/15		300		327
3.000%, 05/19/14		125		130
Sumitomo Mitsui Banking
3.150%, 07/22/15 (A)		200		208
SunTrust Banks
6.000%, 09/11/17		119		134
Wachovia, MTN
5.500%, 05/01/13		140		147
Wells Fargo
3.625%, 04/15/15		125		133
Total Banks				4,731
Cable/Media [1.4%]
Comcast
4.950%, 06/15/16		165		185
DIRECTV Holdings
3.500%, 03/01/16		175		184
TCI Communications
7.875%, 08/01/13		75		82
Time Warner Cable
4.125%, 02/15/21		175		182
Total Cable/Media				633
Chemicals [0.4%]
Dow Chemical
2.500%, 02/15/16		180		185

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 28

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund (continued)

Description Face Amount(000) Value (000)

Computer System Design & Services [0.8%]
Hewlett-Packard
4.650%, 12/09/21	$	150	$	157
2.125%, 09/13/15		180		181
Total Computer System Design & Services				338
Drugs [0.6%]
Teva Pharmaceutical
5.550%, 02/01/16		75		85
Wyeth
5.500%, 02/15/16		160		185
Total Drugs				270
Energy [1.6%]
Carolina Power & Light
5.150%, 04/01/15		80		89
Exelon
5.625%, 06/15/35		75		81
Korea Electric Power
7.750%, 04/01/13		95		100
6.750%, 08/01/27		75		87
PPL Energy Supply, Ser A
5.700%, 10/15/15		75		82
Trans-Allegheny Interstate Line
4.000%, 01/15/15 (A)		100		106
Virginia Electric and Power
8.875%, 11/15/38		100		159
Total Energy				704
Finance Auto Loans [0.2%]
Toyota Motor Credit, MTN
2.000%, 09/15/16		100		102
Financial Services [3.4%]
American Express Credit, MTN
7.300%, 08/20/13		170		184
Associates Corp of North America
6.950%, 11/01/18		150		170
Bank of New York Mellon, MTN
3.100%, 01/15/15		175		183
Caterpillar Financial Services, MTN
6.200%, 09/30/13		165		179
General Electric Capital, MTN
6.000%, 08/07/19		125		146
2.250%, 11/09/15		250		257

Description Face Amount (000) Value (000)

HSBC Finance
6.676%, 01/15/21 (A)	$	83	$	88
National Rural Utilities Cooperative Finance
10.375%, 11/01/18		125		181
UFJ Finance Aruba
6.750%, 07/15/13		125		133
Total Financial Services				1,521
Food, Beverage & Tobacco [0.6%]
General Mills
5.650%, 02/15/19		80		95
Kraft Foods
6.500%, 08/11/17		150		181
Total Food, Beverage & Tobacco				276
Gas-Distribution [0.1%]
KeySpan
8.000%, 11/15/30		50		66
Insurance [2.2%]
Berkshire Hathaway
3.200%, 02/11/15		175		186
Manulife Financial
3.400%, 09/17/15		198		204
MetLife
5.000%, 06/15/15		165		183
Protective Life
4.300%, 06/01/13		100		102
Prudential Financial, MTN
6.200%, 01/15/15		25		28
5.375%, 06/21/20		165		185
Travelers
3.900%, 11/01/20		120		129
Total Insurance				1,017
Insurance Brokers [0.7%]
Aon
3.500%, 09/30/15		200		209
Marsh & McLennan
5.750%, 09/15/15		79		89
Total Insurance Brokers				298
Invest Mgmnt/Advis Serv [0.4%]
BlackRock
3.500%, 12/10/14		170		182

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 29

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund (continued)

Description Face Amount(000) Value (000)

Investment Banker/Broker Dealer [1.9%]
Goldman Sachs Group
5.150%, 01/15/14	$	75	$	79
Jefferies Group
6.450%, 06/08/27		100		99
Morgan Stanley
5.300%, 03/01/13		320		329
4.750%, 04/01/14		75		76
Morgan Stanley, MTN
6.625%, 04/01/18		100		105
TD Ameritrade Holding
4.150%, 12/01/14		175		187
Total Investment Banker/Broker Dealer				875
Manufacturing [0.4%]
Tyco International Finance
4.125%, 10/15/14		180		192
Medical Products [0.2%]
Zimmer Holdings
4.625%, 11/30/19		75		83
Medical-HMO [0.4%]
UnitedHealth Group
4.750%, 02/10/14		40		43
4.700%, 02/15/21		115		129
Total Medical-HMO				172
Metal-Copper [0.3%]
Freeport-McMoRan Copper
2.150%, 03/01/17		120		119
Metals & Mining [0.6%]
Rio Tinto Finance USA
6.500%, 07/15/18		100		123
Vale Overseas
6.875%, 11/21/36		100		116
Total Metals & Mining				239
Multi-Media [1.4%]
CBS
3.375%, 03/01/22		110		106
Time Warner
7.700%, 05/01/32		150		196
5.875%, 11/15/16		155		181

Description Face Amount (000) Value (000)

Viacom
6.250%, 04/30/16	$	125	$	146
Total Multi-Media				629
Networking Products [0.3%]
Cisco Systems
5.500%, 01/15/40		100		117
Oil, Gas & Consumable Fuels [2.1%]
BP Capital Markets
3.200%, 03/11/16		100		106
3.125%, 10/01/15		310		328
Husky Energy
3.950%, 04/15/22		150		151
Marathon Oil
6.000%, 10/01/17		150		175
Petrobras International Finance
3.875%, 01/27/16		100		105
Total Capital International
1.500%, 02/17/17		100		97
Total Oil, Gas & Consumable Fuels				962
Petroleum & Fuel Products [1.7%]
Anadarko Finance
7.500%, 05/01/31		150		185
DCP Midstream
9.750%, 03/15/19 (A)		114		146
Energy Transfer Partners
6.625%, 10/15/36		75		78
Enterprise Products Operating
3.700%, 06/01/15		125		134
Kinder Morgan Energy Partners
5.300%, 09/15/20		125		137
ONEOK
4.250%, 02/01/22		100		101
Total Petroleum & Fuel Products				781
Pharmacy Services [0.3%]
Aristotle Holding
3.500%, 11/15/16 (A)		150		157
Property Trust [0.3%]
WEA Finance
7.500%, 06/02/14 (A)		125		138
REITS-Health Care [0.4%]
Health Care REIT
4.950%, 01/15/21		175		179

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 30

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund (continued)

Description Face Amount(000) Value (000)

REITS-Office Property [0.4%]
Boston Properties
5.875%, 10/15/19	$	160	$	183
REITS-Regional Malls [0.5%]
Simon Property Group
2.150%, 09/15/17		230		227
Retail [0.9%]
Home Depot
5.400%, 03/01/16		205		236
Lowe's
5.000%, 10/15/15		165		186
Total Retail				422
Retail-Drug Store [0.4%]
CVS Caremark
5.750%, 06/01/17		155		183
Retail-Regnl Dept Store [0.4%]
Macy's Retail Holdings
5.900%, 12/01/16		160		184
Telephones & Telecommunications [2.9%]
AT&T
5.600%, 05/15/18		275		325
British Telecommunications
9.625%, 12/15/30		100		147
Deutsche Telekom International Finance
8.750%, 06/15/30		75		103
6.000%, 07/08/19		50		58
GTE
6.840%, 04/15/18		100		122
New Cingular Wireless Services
8.750%, 03/01/31		75		109
Telecom Italia Capital
7.200%, 07/18/36		75		73
Telefonica Emisiones
6.421%, 06/20/16		75		80
Verizon Communications
3.000%, 04/01/16		310		328
Total Telephones & Telecommunications				1,345
Waste Disposal [0.2%]
Waste Management
2.600%, 09/01/16		90		92
Total Corporate Bonds (Cost $17,168)				17,952

Description Face Amount (000) Value (000)

U.S. Treasury Obligations [25.4%]
U.S. Treasury Bonds
6.250%, 08/15/23	$	1,000	$	1,385
5.250%, 11/15/28		725		947
4.375%, 02/15/38		700		841
U.S. Treasury Notes
2.750%, 02/15/19		815		878
2.625%, 04/30/16		395		424
2.625%, 11/15/20		860		904
2.375%, 09/30/14		450		471
2.375%, 07/31/17		3,780		4,019
2.125%, 08/15/21		870		869
1.750%, 07/31/15		700		726
Total U.S. Treasury Obligations (Cost $11,137)				11,464
U.S. Government Mortgage-Backed Obligations [18.6%]
FHLMC, Pool A93505
4.500%, 08/01/40		125		133
FHLMC, Pool A93996
4.500%, 09/01/40		155		165
FHLMC, Pool C03490
4.500%, 08/01/40		926		982
FHLMC, Pool C20300
6.500%, 01/01/29		6		7
FHLMC, Pool E01280
5.000%, 12/01/17		14		15
FHLMC, Pool G04222
5.500%, 04/01/38		98		106
FHLMC, Pool G08003
6.000%, 07/01/34		55		61
FHLMC, Pool G11431
6.000%, 02/01/18		9		10
FHLMC, Pool G11880
5.000%, 12/01/20		43		47
FHLMC, Pool G18124
6.000%, 06/01/21		31		34
FHLMC ARM, Pool 1B2677
2.780%, 01/01/35 (B)		13		13
FHLMC ARM, Pool 1B2683
2.755%, 01/01/35 (B)		8		8
FHLMC ARM, Pool 1B2692
2.621%, 12/01/34 (B)		24		26
FHLMC Multifamily Structured Pass-Through Certificates, Ser 2011-K704, Cl A2
2.412%, 08/25/18		400		407
FHLMC Multifamily Structured Pass-Through Certificates, Ser 2012-K705, Cl A2
2.303%, 09/25/18		200		202

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 31

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund (continued)

Description Face Amount(000) Value (000)

FHLMC Multifamily Structured Pass-Through Certificates, Ser 2012-K706, Cl A2
2.323%, 10/25/18	$	150	$	152
FHLMC REMIC, Ser 2007-R010, Cl VA
5.500%, 04/15/17		85		90
FHLMC REMIC, Ser 2730, Cl PD
5.000%, 05/15/21		23		23
FHLMC REMIC, Ser 2804, Cl VC
5.000%, 07/15/21		129		145
FHLMC REMIC, Ser 3122, Cl VA
6.000%, 01/15/17		72		73
FHLMC REMIC, Ser 3132, Cl MA
5.500%, 12/15/23		11		11
FHLMC REMIC, Ser R003, Cl VA
5.500%, 08/15/16		95		99
FHLMC REMIC, Ser R009, Cl AJ
5.750%, 12/15/18		16		16
FHLMC REMIC, Ser R010, Cl AB
5.500%, 12/15/19		58		60
FNMA, Pool 252570
6.500%, 07/01/29		13		14
FNMA, Pool 253183
7.500%, 04/01/30		1		1
FNMA, Pool 253398
8.000%, 08/01/30		4		5
FNMA, Pool 254510
5.000%, 11/01/17		19		21
FNMA, Pool 254545
5.000%, 12/01/17		39		42
FNMA, Pool 254685
5.000%, 04/01/18		32		35
FNMA, Pool 254949
5.000%, 11/01/33		39		42
FNMA, Pool 255814
5.500%, 08/01/35		95		104
FNMA, Pool 303168
9.500%, 02/01/25		3		4
FNMA, Pool 725424
5.500%, 04/01/34		69		76
FNMA, Pool 735060
6.000%, 11/01/34		41		46
FNMA, Pool 735228
5.500%, 02/01/35		38		42
FNMA, Pool 735230
5.500%, 02/01/35		90		99

Description Face Amount (000) Value (000)

FNMA, Pool 745275
5.000%, 02/01/36	$	422	$	456
FNMA, Pool 745418
5.500%, 04/01/36		518		567
FNMA, Pool 844809
5.000%, 11/01/35		264		286
FNMA, Pool AD0454
5.000%, 11/01/21		97		105
FNMA, Pool AD8522
4.000%, 08/01/40		132		139
FNMA, Pool AE0828
3.500%, 02/01/41		367		378
FNMA, Pool AE0949
4.000%, 02/01/41		714		749
FNMA, Pool AH0621
3.500%, 01/01/41		177		182
FNMA, Pool AJ1407
4.000%, 09/01/41		182		191
FNMA, Pool AJ9355
3.000%, 01/01/27		618		641
FNMA ARM, Pool 827223
2.215%, 04/01/35 (B)		100		105
FNMA REMIC, Ser 136, Cl PK
6.000%, 08/25/22		13		15
FNMA REMIC, Ser 33, Cl LD
4.250%, 09/25/22		35		36
FNMA Whole Loan, Ser W6, Cl 1A6
5.500%, 07/25/34		41		43
GNMA, Pool 479168
8.000%, 02/15/30		8		8
GNMA, Pool 780315
9.500%, 12/15/17		6		7
GNMA, Pool G2 4696
4.500%, 05/20/40		340		371
GNMA, Pool G2 4747
5.000%, 07/20/40		138		153
GNMA, Pool G2 4923
4.500%, 01/20/41		175		191
NCUA Guaranteed Notes, Ser 2010-C1, Cl A2
2.900%, 10/29/20		225		236
NCUA Guaranteed Notes, Ser 2010-R1, Cl 2A
1.840%, 10/07/20		110		111
Total U.S. Government Mortgage-Backed Obligations (Cost $8,122)				8,386
U.S. Government Agency Obligations [5.0%]
FHLMC
2.500%, 01/07/14		475		493

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 32

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund (continued)

Description Face Amount(000) Value (000)

FNMA
4.625%, 10/15/13	$	550	$	586
2.875%, 12/11/13		460		480
2.375%, 07/28/15		265		279
1.375%, 11/15/16		205		207
1.125%, 04/27/17		200		199
Total U.S. Government Agency Obligations (Cost $2,193)				2,244
Asset-Backed Securities [4.9%]
American Express Credit Account Master Trust, Ser 2008-5, Cl A
1.042%, 03/15/16 (B)		200		202
Bayview Financial Acquisition Trust, Ser 2007-A, Cl 1A2
6.205%, 05/28/37		198		192
Citibank Credit Card Issuance Trust, Ser 2009-A2, Cl A2
1.792%, 05/15/14(B)		575		576
Cityscape Home Equity Loan Trust, Ser 1997-C, Cl A4
7.000%, 07/25/28		5		5
Discover Card Master Trust, Ser 2010-A1
0.892%, 09/15/15 (B)		650		654
GE Capital Credit Card Master Note Trust, Ser 2007-4, Cl A
0.292%, 06/15/15 (B)		375		375
GMAC Mortgage Corporation Loan Trust, Ser 2004-GH1, Cl A6
4.810%, 07/25/35		89		86
Green Tree Financial, Ser 1997-7, Cl A6
6.760%, 07/15/29		54		58
RAAC, Ser 2004-SP1, Cl AI4
5.285%, 08/25/27 (B)		41		41
Residential Asset Mortgage Products, Ser 2002-RS3, Cl AI5
5.572%, 06/25/32(B)		43		34
Total Asset-Backed Securities (Cost $2,238)				2,223
Commercial Mortgage-Backed Obligations [2.2%]
Citigroup, Ser 2005-CD1
5.225%, 07/15/44 (B)		200		223
Citigroup, Ser 2007-CD4, Cl A2B
5.205%, 12/11/49		88		89

Description Face Amount (000) Value (000)

Commercial Mortgage, Ser 2005-C5, Cl A5A
5.116%, 06/10/44 (B)	$	200	$	220
JPMorgan Chase, Ser 2006-CB17, Cl ASB
5.415%, 12/12/43		185		198
Wachovia Bank Commercial Mortgage Trust, Ser 2005-C22
5.271%, 12/15/44 (B)		250		279
Total Commercial Mortgage-Backed Obligations (Cost $945)				1,009
Mortgage-Backed Securities [0.6%]
Banc of America Alternative Loan Trust, Ser 2004-2, Cl 5A1
5.500%, 03/25/19		60		62
Chase Mortgage Finance, Ser 2003-S13, Cl A11
5.500%, 11/25/33		43		44
Residential Accredit Loans, Ser 2004-QS5, Cl A5
4.750%, 04/25/34		21		21
Residential Accredit Loans, Ser 2004-QS6, Cl A1
5.000%, 05/25/19		34		34
WaMu Mortgage Pass-Through Certificates, Ser 2004-CB2, Cl 5A
5.000%, 07/25/19		97		99
Total Mortgage-Backed Securities (Cost $253)				260
Sovereign Debt [0.3%]
United Mexican States, MTN
5.125%, 01/15/20		100		115
Total Sovereign Debt (Cost $99)				115
Municipal Bond [0.2%]
Puerto Rico [0.2%]
Government Development Bank for Puerto Rico, Ser B, RB
4.704%, 05/01/16		100		103
Total Municipal Bond (Cost $100)				103

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 33

schedule of investments

March 31, 2012 (Unaudited)

Full Maturity Fixed Income Fund (concluded)

Description	Shares		Value (000)
Short-Term Investment [2.5%]
AIM STIT-Treasury Portfolio, 0.020%*		1,126,617	$	1,127
Total Short-Term Investment (Cost $1,127)				1,127
Total Investments [99.4%] (Cost $43,382)			$	44,883

Percentages are based on Net Assets of $45,169 ($ Thousands).

* The rate reported is the 7-day effective yield as of March 31, 2012.

(A) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On March 31, 2012, the value of these securities amounted to $1,439 (000), representing 3.2% of the net assets of the Fund.

(B) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

ARM — Adjustable Rate Mortgage

Cl — Class

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GNMA — Government National Mortgage Association

MTN — Medium Term Note

NA — National Association

NCUA — National Credit Union Administration

RB — Revenue Bond

REIT — Real Estate Investment Trust

REMIC — Real Estate Mortgage Investment Conduit

Ser — Series

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	17,952	$	—	$	17,952
U.S. Treasury Obligations		—		11,464		—		11,464
U.S. Government Mortgage-Backed Obligations		—		8,386		—		8,386
U.S. Government Agency Obligations		—		2,244		—		2,244
Asset-Backed Securities		—		2,223		—		2,223
Commercial Mortgage-Backed Obligations		—		1,009		—		1,009
Mortgage-Backed Securities		—		260		—		260
Sovereign Debt		—		115		—		115
Municipal Bond		—		103		—		103
Short-Term Investment		1,127		—		—		1,127
Total Investments in Securities	$	1,127	$	43,756	$	—	$	44,883

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 34

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund

Description	Face Amount (000)			Value (000)
Corporate Bonds [91.4%]
Advertising Agencies [0.4%]
MDC Partners
11.000%, 11/01/16 (C)		$	600	$	654
Aerospace & Defense [1.1%]
Global Aviation Holdings
14.000%, 08/15/13 (A)			547		170
L-3 Communications
10.000%, 02/01/18			250		274
Sequa
13.500%, 12/01/15 (C)			101		107
11.750%, 12/01/15(C)			775		824
Total Aerospace & Defense					1,375
Airlines [1.1%]
American Airlines 2011-2 Class A Pass-Through Trust
8.625%, 10/15/21			500		528
Continental Airlines, Ser 2007-1, Cl C
7.339%, 04/19/14			328		333
Continental Airlines 2009-2 Class B Pass-Through Trust
9.250%, 05/10/17			168		180
DAE Aviation Holdings
11.250%, 08/01/15 (C)			150		156
Delta Airlines
12.250%, 03/15/15 (C)			250		269
Total Airlines					1,466
Auto Rent & Lease [0.2%]
Avis Budget Car Rental
8.250%, 01/15/19			300		313

Description Face Amount (000) Value (000)

Autoparts [0.8%]
Asbury Automotive Group
7.625%, 03/15/17	$	100	$	104
Exide Technologies
8.625%, 02/01/18		160		134
Stanadyne
10.000%, 08/15/14		800		732
Total Autoparts				970
Banks [0.8%]
CIT Group
7.000%, 05/02/17 (C)		1,000		1,003
Broadcasting & Cable [3.5%]
Atlantic Broadband Finance
9.375%, 01/15/14		100		100
Bonten Media Acquisition
9.000%, 06/01/15 (C) (D)		190		132
Bresnan Broadband Holdings
8.000%, 12/15/18 (C)		750		773
Cablevision Systems
8.000%, 04/15/20		400		423
CSC Holdings
7.625%, 07/15/18		100		111
6.750%, 11/15/21 (C)		300		312
DCP
10.750%, 08/15/15 (C)		500		379
Kabel BW Erste Beteiligungs
7.500%, 03/15/19 (C)		500		540
Local TV Finance
9.250%, 06/15/15 (C)		122		124
Newport Television
13.000%, 03/15/17 (C)		149		151
Univision Communications
6.875%, 05/15/19 (C)		1,275		1,293
Total Broadcasting & Cable				4,338
Building & Construction [1.8%]
AM Castle
12.750%, 12/15/16 (C)		220		238
APERAM
7.375%, 04/01/16 (C)		400		391
Building Materials Corp of America
6.750%, 05/01/21 (C)		950		1,008
Columbus McKinnon
7.875%, 02/01/19		200		208
Dycom Investments
7.125%, 01/15/21		300		306

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 35

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (continued)

Description Face Amount(000) Value (000)

Interline Brands
7.000%, 11/15/18	$	190	$	200
Total Building & Construction				2,351
Chemicals [0.5%]
Nexeo Solutions
8.375%, 03/01/18 (C)		250		248
Polymer Group
7.750%, 02/01/19		380		400
Total Chemicals				648
Coal Mining [0.3%]
Consol Energy
8.250%, 04/01/20		400		418
Commercial Services [3.8%]
Bankrate
11.750%, 07/15/15		162		186
CKE Holdings
10.500%, 03/14/16 (C)		758		781
DynCorp International
10.375%, 07/01/17		1,000		869
NCO Group
11.875%, 11/15/14		1,340		1,380
ServiceMaster
8.000%, 02/15/20 (C)		425		453
7.450%, 08/15/27		275		234
7.100%, 03/01/18		380		358
Tube City IMS
9.750%, 02/01/15		575		591
Total Commercial Services				4,852
Communications Software [0.5%]
Aspect Software
10.625%, 05/15/17		600		641
Computer Graphics [0.3%]
Eagle Parent
8.625%, 05/01/19		400		409
Computer System Design & Services [3.0%]
Compucom Systems
12.500%, 10/01/15 (C)		1,125		1,181
iGate
9.000%, 05/01/16		850		923
Stratus Technologies Bermuda
12.000%, 03/29/15		708		625

Description Face Amount (000) Value (000)

Stream Global Services
11.250%, 10/01/14	$	1,000	$	1,040
Total Computer System Design & Services				3,769
Consumer Products & Services [6.0%]
American Achievement
10.875%, 04/15/16 (C)		500		362
American Standard Americas
10.750%, 01/15/16 (C)		250		180
Amscan Holdings
8.750%, 05/01/14		400		402
Armored Autogroup
9.250%, 11/01/18 (C)		1,160		969
Central Garden and Pet
8.250%, 03/01/18(C)		1,250		1,289
Prestige Brands
8.250%, 04/01/18		250		273
Reynolds Group Issuer
6.875%, 02/15/21 (C)		1,325		1,371
Spectrum Brands Holdings
9.500%, 06/15/18		450		508
Spectrum Brands Holdings
9.500%, 06/15/18 (C)		400		451
WMG Acquisition
11.500%, 10/01/18 (C)		660		706
9.500%, 06/15/16		200		218
Yankee Acquisition
8.500%, 02/15/15		300		308
Yankee Acquisition, Ser B
9.750%, 02/15/17		50		52
YCC Holdings
10.250%, 02/15/16 (B)		400		407
Total Consumer Products & Services				7,496
Containers & Packaging [1.6%]
Intertape Polymer US
8.500%, 08/01/14		100		101
Pregis
12.375%, 10/15/13		650		654
Pretium Packaging
11.500%, 04/01/16		350		367
Sealed Air
8.125%, 09/15/19 (C)		750		828
Total Containers & Packaging				1,950
Data Processing/Mgmt [1.8%]
Fidelity National Information Services
7.875%, 07/15/20		365		405

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 36

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (continued)

Description Face Amount(000) Value (000)

First Data
8.875%, 08/15/20 (C)	$	150	$	163
8.750%, 01/15/22 (B) (C)		1,710		1,650
Total Data Processing/Mgmt				2,218
Distribution/Wholesale [1.2%]
Baker & Taylor
11.500%, 07/01/13 (C)		500		283
Intcomex
13.250%, 12/15/14		750		746
VWR Funding
10.250%, 07/15/15 (D)		423		437
Total Distribution/Wholesale				1,466
Diversified Operations [0.4%]
Amsted Industries
8.125%, 03/15/18 (C)		450		481
Drugs [0.6%]
Endo Pharmaceuticals Holdings
7.000%, 07/15/19		400		427
Giant Funding
8.250%, 02/01/18		300		325
Total Drugs				752
E-Commerce/Products [0.5%]
GXS Worldwide
9.750%, 06/15/15		650		632
Electric Utilities [0.9%]
AES
7.375%, 07/01/21 (C)		850		939
RRI Energy
7.625%, 06/15/14		200		202
Total Electric Utilities				1,141
Engines-Internal Combust [0.4%]
Briggs & Stratton
6.875%, 12/15/20		500		515
Enterprise Software/Serv [1.0%]
Lawson Software
9.375%, 04/01/19 (C)		1,260		1,304

Description Face Amount (000) Value (000)

Entertainment & Gaming [9.1%]
Buffalo Thunder Development Authority
9.375%, 12/15/14 (A) (C)	$	75	$	26
Caesars Entertainment Operating
10.000%, 12/15/18		650		502
8.500%, 02/15/20 (C)		650		662
Chester Downs & Marina
9.250%, 02/01/20 (C)		500		528
Choctaw Resort Development Enterprise
7.250%, 11/15/19 (C)		175		147
Chukchansi Economic Development Authority
8.000%, 11/15/13 (C)		250		179
4.159%, 11/15/12 (C) (D)		250		179
Diamond Resorts
12.000%, 08/15/18		750		803
Inn of the Mountain Gods Resort & Casino
8.750%, 11/30/20 (C)		32		31
1.250%, 11/30/20 (C)		102		70
Lions Gate Entertainment
10.250%, 11/01/16 (C)		1,200		1,322
Mashantucket Western Pequot Tribe
8.500%, 11/15/15 (A) (C)		170		12
MGM Resorts International
11.375%, 03/01/18		400		475
8.625%, 02/01/19 (C)		975		1,046
Mohegan Tribal Gaming Authority
11.000%, 09/15/18 (C)		100		73
NAI Entertainment Holdings
8.250%, 12/15/17 (C)		500		549
Regal Entertainment Group
9.125%, 08/15/18		225		246
Scientific Games
8.125%, 09/15/18		325		354
Seminole Indian Tribe of Florida
7.750%, 10/01/17 (C)		360		390
Shingle Springs Tribal Gaming Authority
9.375%, 06/15/15 (C)		100		72
Snoqualmie Entertainment Authority
9.125%, 02/01/15 (C)		300		301
4.532%, 02/01/14 (C) (D)		450		423
Speedway Motorsports
6.750%, 02/01/19		250		260
Sugarhouse HSP Gaming Prop Mezz
8.625%, 04/15/16 (C)		700		742

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 37

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (continued)

Description Face Amount(000) Value (000)

Tunica-Biloxi Gaming Authority
9.000%, 11/15/15 (C)	$	125	$	125
Vail Resorts
6.500%, 05/01/19		500		525
Waterford Gaming
8.625%, 09/15/14 (C) (E)		55		30
Wynn Las Vegas
7.875%, 05/01/20		175		192
7.750%, 08/15/20		400		440
5.375%, 03/15/22 (C)		600		585
Total Entertainment & Gaming				11,289
Financial Services [2.2%]
CNH Capital
6.250%, 11/01/16 (C)		250		268
Credit Acceptance
9.125%, 02/01/17		500		540
Icahn Enterprises
8.000%, 01/15/18 (C)		450		468
7.750%, 01/15/16		1,150		1,190
National Rural Utility Co-op
10.125%, 07/15/19 (C)		300		282
Total Financial Services				2,748
Food, Beverage & Tobacco [2.7%]
Beverages & More
9.625%, 10/01/14 (C)		750		782
Bumble Bee Acquisition
9.000%, 12/15/17 (C)		665		678
Bumble Bee Holdco SCA
9.625%, 03/15/18 (B) (C)		500		454
Darling International
8.500%, 12/15/18		350		390
Le-Nature's
9.000%, 06/15/13 (A) (C) (E)		150		9
US Foodservice
8.500%, 06/30/19 (C)		1,050		1,063
Total Food, Beverage & Tobacco				3,376
Human Resources [0.5%]
Emergency Medical Services
8.125%, 06/01/19		650		668
Insurance [2.2%]
CNO Financial Group
9.000%, 01/15/18 (C)		725		783
Ironshore Holdings US
8.500%, 05/15/20 (C)		950		1,034

Description Face Amount (000) Value (000)

National Life Insurance
10.500%, 09/15/39 (C)	$	150	$	188
USI Holdings
9.750%, 05/15/15 (C)		638		641
4.378%, 11/15/14 (C) (D)		125		117
Total Insurance				2,763
Internet Connectiv Svcs [0.3%]
Zayo Group
10.250%, 03/15/17		300		335
Investment Banker/Broker Dealer [0.2%]
Jefferies Group
8.500%, 07/15/19		240		266
Machinery [1.8%]
CPM Holdings
10.625%, 09/01/14		500		532
Tempel Steel
12.000%, 08/15/16 (C)		500		490
Thermadyne Holdings
9.000%, 12/15/17		995		1,020
9.000%, 12/15/17 (C)		300		308
Total Machinery				2,350
Medical Products & Services [4.8%]
Apria Healthcare Group
12.375%, 11/01/14		800		798
11.250%, 11/01/14		300		314
Biomet
11.625%, 10/15/17		750		811
BioScrip
10.250%, 10/01/15		600		650
DJO Finance
9.750%, 10/15/17		210		156
HCA
7.500%, 02/15/22		1,225		1,305
Omnicare
7.750%, 06/01/20		350		388
OnCure Holdings
11.750%, 05/15/17		500		328
Physio-Control International
9.875%, 01/15/19 (C)		125		131
PSS World Medical
6.375%, 03/01/22 (C)		100		103
STHI Holding
8.000%, 03/15/18 (C)		200		212
Symbion
11.000%, 08/23/15 (B)		418		395

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 38

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (continued)

Description Face Amount(000) Value (000)

Tenet Healthcare
6.250%, 11/01/18 (C)	$	350	$	361
Total Medical Products & Services				5,952
Metal-Copper [0.7%]
Quadra FNX Mining
7.750%, 06/15/19 (C)		800		910
Metals & Mining [1.7%]
Midwest Vanadium
11.500%, 02/15/18 (C)		500		345
Mirabela Nickel
8.750%, 04/15/18 (C)		630		542
Noranda Aluminum Acquisition
4.659%, 05/15/15 (B) (D)		673		650
Novelis
8.375%, 12/15/17		500		542
Total Metals & Mining				2,079
Miscellaneous Business Services [0.3%]
Affinion Group
11.500%, 10/15/15		100		94
Carriage Services
7.875%, 01/15/15		200		202
MCBC Holdings
6.817%, 10/15/14 (C) (E)		50		12
Total Miscellaneous Business Services				308
Miscellaneous Manufacturing [2.1%]
AGY Holding
11.000%, 11/15/14		100		40
Atkore International
9.875%, 01/01/18		435		456
CEVA Group
11.625%, 10/01/16 (C)		250		265
11.500%, 04/01/18 (C)		100		99
8.375%, 12/01/17 (C)		300		297
Coleman Cable
9.000%, 02/15/18		1,150		1,210
Thermon Industries
9.500%, 05/01/17		284		312
Total Miscellaneous Manufacturing				2,679
Multi-line Insurance [0.2%]
Kemper
6.000%, 05/15/17		195		208

Description Face Amount (000) Value (000)

Office Automation and Equip [0.3%]
CDW
8.000%, 12/15/18	$	400	$	433
Oil-Field Services [1.0%]
Exterran Holdings
7.250%, 12/01/18		1,300		1,248
Paper & Related Products [0.1%]
Verso Paper Holdings
8.750%, 02/01/19		300		165
Petroleum & Fuel Products [7.8%]
Bill Barrett
9.875%, 07/15/16		250		275
7.625%, 10/01/19		1,025		1,040
BreitBurn Energy Partners
7.875%, 04/15/22 (C)		1,260		1,285
Continental Resources
7.375%, 10/01/20		500		555
Crestwood Midstream Partners
7.750%, 04/01/19 (C)		1,550		1,587
Denbury Resources
8.250%, 02/15/20		500		559
Eagle Rock Energy Partners
8.375%, 06/01/19		1,000		1,030
Helix Energy Solutions Group
9.500%, 01/15/16 (C)		58		61
Milagro Oil & Gas
10.500%, 05/15/16		400		312
Penn Virginia
7.250%, 04/15/19		900		774
Precision Drilling
6.500%, 12/15/21 (C)		400		418
SandRidge Energy
8.000%, 06/01/18 (C)		150		153
7.500%, 03/15/21		250		246
SESI
7.125%, 12/15/21 (C)		1,000		1,080
6.375%, 05/01/19		300		318
Total Petroleum & Fuel Products				9,693
Printing & Publishing [0.2%]
Houghton Mifflin Harcourt Publishers
10.500%, 06/01/19 (C)		400		212

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 39

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (continued)

Description Face Amount(000) Value (000)

Real Estate [0.5%]
Kennedy-Wilson
8.750%, 04/01/19	$	600	$	626
Research and Development [1.8%]
Alion Science and Technology
12.000%, 11/01/14 (B)		596		560
10.250%, 02/01/15		330		185
Catalent Pharma Solutions
9.500%, 04/15/15 (D)		695		714
Pharmaceutical Product Development
9.500%, 12/01/19 (C)		675		732
Total Research and Development				2,191
Retail [5.7%]
Academy
9.250%, 08/01/19 (C)		750		770
AmeriGas Finance
7.000%, 05/20/22		1,330		1,356
Brands
5.625%, 02/15/22		250		252
Burlington Coat Factory Warehouse
10.000%, 02/15/19		1,500		1,560
Easton-Bell Sports
9.750%, 12/01/16		500		553
Liz Claiborne
10.500%, 04/15/19 (C)		400		444
Mobile Mini
7.875%, 12/01/20		755		804
Penske Automotive Group
7.750%, 12/15/16		100		104
Rare Restaurant Group
9.250%, 05/15/14 (C)		100		90
Roadhouse Financing
10.750%, 10/15/17		750		731
Sally Holdings
6.875%, 11/15/19 (C)		350		373
Total Retail				7,037
Rubber & Plastic [0.2%]
Goodyear Tire & Rubber
7.000%, 05/15/22		250		243
Schools-Day Care [0.3%]
Knowledge Learning
7.750%, 02/01/15 (C)		400		332

Description Face Amount (000) Value (000)

Semi-Conductors [0.2%]
Stoneridge
9.500%, 10/15/17 (C)	$	200	$	212
Shipbuilding [0.4%]
Huntington Ingalls Industries
7.125%, 03/15/21		250		268
6.875%, 03/15/18		250		265
Total Shipbuilding				533
Steel & Steel Works [0.5%]
Standard Steel
12.000%, 05/01/15 (C)		600		678
Telephones & Telecommunications [4.8%]
Avaya
9.750%, 11/01/15		250		246
7.000%, 04/01/19 (C)		1,350		1,354
CommScope
8.250%, 01/15/19 (C)		925		985
L-3 Communications
4.506%, 02/15/15 (D)		1,250		1,209
Nextel Communications
6.875%, 10/31/13		335		335
Sprint Nextel
7.000%, 03/01/20 (C)		400		406
Syniverse Holdings
9.125%, 01/15/19		750		827
UPCB Finance
7.250%, 11/15/21 (C)		500		529
Total Telephones & Telecommunications				5,891
Textile-Home Furnishings [0.6%]
Empire Today
11.375%, 02/01/17 (C)		750		741
Transactional Software [0.4%]
Open Solutions
9.750%, 02/01/15 (C)		600		492
Transportation Services [5.1%]
ACL I
10.625%, 02/15/16 (B) (C)		670		672
Commercial Barge Line
12.500%, 07/15/17		250		281
Florida East Coast Railway
8.125%, 02/01/17		750		765
Marquette Transportation
10.875%, 01/15/17		1,100		1,159

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 40

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (continued)

Description	Face Amount (000)/Shares			Value (000)
Pegasus Solutions
10.500%, 04/15/15 (C)		$	100	$	50
Quality Distribution
9.875%, 11/01/18			800		878
Rural/Metro
10.125%, 07/15/19 (C)			650		599
Sabre Holdings
8.350%, 03/15/16			745		676
Stena
7.000%, 12/01/16			150		140
Travelport
11.875%, 09/01/16			90		29
9.875%, 09/01/14			300		190
United Maritime Group
11.750%, 06/15/15			800		831
Total Transportation Services					6,270
Web Hosting/Design [0.2%]
Equinix
7.000%, 07/15/21			250		274
Total Corporate Bonds (Cost $112,966)					114,364
		Number of Warrants
Warrants [0.1%]
Alion Science and Technology,
Expires 03/15/17 (E) *			380		—
CUI Acquisition (E) (F) (G) *			2,756		126
Total Warrants (Cost $250)					126
Special Stock [0.0%]
Broadcasting & Cable [0.0%]
Olympus CVV (E) (F) *			8,500		7
Total Special Stock (Cost $9)					7
Convertible Bond [0.0%]
Food, Beverage & Tobacco [0.0%]
Vector Group
3.875%, 06/15/26 (D)			54		61
Total Convertible Bond (Cost $56)					61

Description	Shares		Value (000)
Short-Term Investments [7.1%]
Fidelity Institutional Money Market Portfolio, Cl I, 0.143%**		4,465,068	$	4,465
SEI Daily Income Trust, Prime Obligation Fund, Cl A, 0.070%**		4,465,068		4,465
Total Short-Term Investments (Cost $8,930)				8,930
Total Investments [98.6%] (Cost $122,211)			$	123,488

Percentages are based on Net Assets of $125,194 ($ Thousands).

* Non-income producing security.

** The rate reported is the 7-day effective yield as of March 31, 2012.

(A) In default on interest payments. Rate shown represents the last coupon rate prior to default.

(B) Payment in Kind.

(C) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutions. On March 31, 2012, the value of these securities amounted to $54,582 (000), representing 44.0% of the net assets of the Fund.

(D) Floating Rate Security — The rate reported is the rate in effect on March 31, 2012.

(E) Security is considered illiquid.

(F) Security is fair valued.

(G) This warrant is a result of the restructuring of Cleveland Unlimited, has an exercise price of $0.0001 per share of common stock and does not have an expiration date.

Cl — Class

CVV — Contingent Value Vehicle

Ser — Series

Amounts designated as “—” are either $0 or have been rounded to $0.

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
Corporate Bonds	$	—	$	114,343	$	21	$	114,364
Warrants		—		—		126		126
Special Stock		—		—		7		7
Convertible Bond		—		61		—		61
Short-Term Investments		8,930		—		—		8,930
Total Investments in Securities	$	8,930	$	114,404	$	154	$	123,488

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 41

schedule of investments

March 31, 2012 (Unaudited)

High Yield Bond Fund (concluded)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value:

	Investments in Corporate Bonds ($ Thousands)			Investments in Warrants ($ Thousands)			Investments in Special Stock ($ Thousands)
Beginning balance as of October 1, 2011	$	47		$	171		$	7
Accrued discounts/premiums		—			—			—
Realized gain/(loss)		—			—			—
Change in unrealized appreciation/(depreciation)		(26	)		(45	)		—
Purchases		—			—			—
Sales		—			—			—
Transfers into Level 3		—			—			—
Transfers out of Level 3		—			—			—
Ending balance as of March 31, 2012	$	21		$	126		$	7
Changes in unrealized gains (losses) included in earnings related to securities held at reporting date	$	(26	)	$	—		$	(46	)

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. For the period ended March 31, 2012, there have been no transfers between Level 2 and Level 3 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 42

schedule of investments

March 31, 2012 (Unaudited)

Multi-Asset Fund

Description	Shares		Value (000)
Exchange-Traded Funds [49.4%]
iPath S&P 500 VIX		31,048	$	1,436
iPATH S&P 500 VIX Short-Term Futures ETN *		45,501		765
iShares Russell 3000 Index Fund		15,745		1,311
iShares S&P MidCap 400 Index Fund		25,124		2,493
Powershares DB Gold Fund		23,905		1,381
SPDR S&P 500 Fund		33,902		4,770
SPDR S&P Dividend ETF Fund		21,350		1,209
Vanguard Dividend Appreciation		25,921		1,518
Vanguard Emerging Markets		44,369		1,929
Vanguard REIT		11,021		701
Vanguard Short-Term Bond Index Fund		499,151		5,296
Vanguard Small Cap Value		16,301		1,283
Total Exchange-Traded Funds (Cost $23,161)				24,092
Unaffiliated Registered Investment Companies [29.6%]
DoubleLine Total Return Bond Fund		174,966		1,954
Fidelity Floating Rate High Income Fund		216,682		2,125
Harbor High Yield Bond Fund		76,087		828
ING Global Real Estate Fund		97,363		1,636
Oppenheimer International Bond Fund, Class A		233,871		1,480
PIMCO Commodity Real Return Strategy Fund		126,772		848
PIMCO Emerging Markets Bond Fund		142,018		1,527
PIMCO Emerging Markets Bond Fund, Institutional Class		71,785		838
Principal Preferred Securities Fund		322,426		3,218
Total Unaffiliated Registered Investment Companies (Cost $14,253)				14,454

Description	Shares/Face Value (000)			Value (000)
Affiliated Registered Investment Companies [10.2%]
CNI Corporate Bond Fund, Institutional Class			186,727	$	2,007
CNI Government Bond Fund, Institutional Class			150,912		1,610
CNI High Yield Bond Fund, Institutional Class			161,966		1,374
Total Affiliated Registered Investment Companies (Cost $4,883)					4,991
Corporate Bonds [8.3%]
Financial Services [8.3%]
Citigroup
5.500%, 08/27/12		$	1,000		1,018
HSBC Finance
7.000%, 05/15/12			1,000		1,007
Merrill Lynch, MTN
6.050%, 08/15/12			1,000		1,018
Morgan Stanley
6.600%, 04/01/12			1,000		1,000
Total Financial Services					4,043
Total Corporate Bonds (Cost $4,027)					4,043
Short-Term Investment [1.9%]
Fidelity Institutional Money Market Portfolio, Cl I, 0.218%**			908,556		909
Total Short-Term Investment (Cost $909)					909
Total Investments [99.4%] (Cost $47,233)				$	48,489

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 43

schedule of investments

March 31, 2012 (Unaudited)

Multi-Asset Fund (concluded)

Percentages are based on Net Assets of $48,771 ($ Thousands).

* Non-income producing security.

** The rate reported is the 7-day effective yield as of March 31, 2012.

Cl — Class

ETF — Exchange-Traded Fund

ETN — Exchange-Traded Note

MTN — Medium Term Note

REIT — Real Estate Investment Trust

SPDR — Standard & Poor’s Depository Receipts

The following is a summary of the inputs used as of March 31, 2012 in valuing the Fund’s investments carried at value ($ Thousands) in accordance with ASC 820:

Investments in Securities	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	24,092	$	—	$	—	$	24,092
Unaffiliated Registered Investment Companies		14,454		—		—		14,454
Affiliated Registered Investment Companies		4,991		—		—		4,991
Corporate Bonds		—		4,043		—		4,043
Short-Term Investment		909		—		—		909
Total Investments in Securities	$	44,446	$	4,043	$	—	$	48,489

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 44

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund

Description	Shares	Value (000)
Common Stock [98.4%]
Aerospace & Defense [1.9%]
Boeing	4,670	$	347
General Dynamics	340		25
Goodrich	120		15
Honeywell International	738		45
L-3 Communications Holdings, Cl 3	94		7
Lockheed Martin	254		23
Northrop Grumman	241		15
Precision Castparts	668		115
Raytheon	4,739		250
Rockwell Collins	142		8
United Technologies	867		72
Total Aerospace & Defense			922
Airlines [0.0%]
Southwest Airlines	736		6
Apparel/Textiles [0.9%]
Coach	1,954		151
Lululemon Athletica *	1,060		79
Nike, Cl B	350		38
Ralph Lauren, Cl A	962		168
VF	83		12
Total Apparel/Textiles			448
Auto Components [0.0%]
BorgWarner *	104		9
Goodyear Tire & Rubber *	233		2
Total Auto Components			11

Description Shares Value (000)

Automotive [3.9%]
AutoZone *	26	$	10
Ford Motor	65,940		823
Harley-Davidson	218		11
Johnson Controls	13,148		427
Paccar	13,940		653
Total Automotive			1,924
Banks [4.2%]
Bank of America	10,221		98
Bank of New York Mellon	1,147		28
CIT Group *	14,400		594
Citigroup	2,789		102
Comerica	5,408		175
Fifth Third Bancorp	876		12
First Horizon National	244		3
Huntington Bancshares	823		5
KeyCorp	908		8
Leucadia National	189		5
M&T Bank	4,320		375
Moody's	187		8
PNC Financial Services Group	502		32
State Street	465		21
SunTrust Banks	507		12
US Bancorp	13,420		425
Wells Fargo	5,022		171
Zions Bancorporation	175		4
Total Banks			2,078
Beauty Products [0.7%]
Estee Lauder, Cl A	2,944		182
Procter & Gamble	2,623		176
Total Beauty Products			358
Biomedical Research & Products [0.1%]
Celgene *	418		32
Biotechnology [0.8%]
Alexion Pharmaceuticals *	2,120		197
Amgen	754		51
Biogen Idec *	227		29
Gilead Sciences *	2,661		130
Total Biotechnology			407
Broadcasting & Cable [4.2%]
Acme Packet *	2,810		77
Aruba Networks *	5,940		132

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 45

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

Cisco Systems	37,029		$	783
F5 Networks *	1,325			179
Finisar *	6,320			128
Harris	108			5
JDS Uniphase *	219			3
Motorola Mobility Holdings *	251			10
Motorola Solutions	280			14
Qualcomm	10,141			690
Ubiquiti Networks *	1,620			51
Total Broadcasting & Cable				2,072
Building & Construction [1.2%]
DR Horton	266			4
Masco	340			5
Owens Corning *	16,100			580
Total Building & Construction				589
Business Services [1.4%]
Accenture, Cl A	616			40
Automatic Data Processing	467			26
Cognizant Technology Solutions, Cl A *	289			22
Computer Sciences	148			4
eBay *	8,521			314
Fidelity National Information Services	223			7
Fiserv *	132			9
Mastercard, Cl A	101			43
Omnicom Group	260			13
Paychex	307			10
SAIC	263	��		3
Total System Services	153			4
VeriFone Systems *	2,120			110
Visa, Cl A	474			56
Xerox	1,268			10
Total Business Services				671
Chemicals [1.6%]
Air Products & Chemicals	201			18
Airgas	65			6
CF Industries Holdings	62			11
Dow Chemical	1,129			39
Eastman Chemical	130			7
Ecolab	277			17
EI du Pont de Nemours	888			47
FMC	67			7
International Flavors & Fragrances	77			4
Monsanto	3,320			265

Description Shares Value (000)

Mosaic	284		$	16
Potash Corp of Saskatchewan	6,300			288
PPG Industries	145			14
Praxair	284			33
Sigma-Aldrich	115			8
Total Chemicals				780
Commercial Banks [1.7%]
BB&T	26,864			843
Regions Financial	1,346			9
Total Commercial Banks				852
Communication & Media [1.9%]
Cablevision Systems, Cl A	206			3
CBS, Cl B	618			21
Comcast, Cl A	10,188			306
DIRECTV, Cl A *	644			32
Discovery Communications, Cl A *	246			13
Interpublic Group	425			5
McGraw-Hill	265			13
News, Cl A	2,050			40
Scripps Networks Interactive, Cl A	91			4
Time Warner	11,989			453
Time Warner Cable, Cl A	299			24
Viacom, Cl B	514			24
Washington Post, Cl B	5			2
Total Communication & Media				940
Computer & Electronics Retail [0.0%]
GameStop, Cl A	130			3
Computer Software [2.0%]
Adobe Systems *	470			16
CA	347	��		10
Microsoft	25,283			815
Oracle	3,733			109
Symantec *	695			13
Total Computer Software				963
Computer System Design & Services [4.9%]
Apple *	3,177			1,905
Dell *	1,454			24
Hewlett-Packard	1,882			45
IBM	1,103			230
Lexmark International, Cl A	67			2
NetApp *	346			15

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 46

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

SanDisk *	2,821	$	140
Teradata *	159		11
Western Digital *	223		9
Total Computer System Design & Services			2,381
Computers & Peripherals [0.1%]
EMC *	1,955		59
Construction & Engineering [0.2%]
Jacobs Engineering Group *	122		6
KBR	3,070		109
Quanta Services *	201		4
Total Construction & Engineering			119
Construction Materials [0.0%]
Vulcan Materials	123		5
Consumer Products & Services [0.2%]
Clorox	124		8
Colgate-Palmolive	457		45
Hasbro	110		4
Kimberly-Clark	375		28
Mattel	323		11
Total Consumer Products & Services			96
Containers & Packaging [1.1%]
Ball	149		7
Bemis	98		3
Crown Holdings *	11,900		438
Owens-Illinois *	4,337		101
Total Containers & Packaging			549
Distributors [0.0%]
Genuine Parts	148		9
Diversified Consumer Services [0.0%]
DeVry	57		2
H&R Block	279		5
Total Diversified Consumer Services			7
Diversified Manufacturing [0.6%]
3M	661		59
Danaher	545		31
General Electric	10,077		202
Parker Hannifin	144		12

Description Shares Value (000)

Textron	266	$	7
Total Diversified Manufacturing			311
Diversified Metals & Mining [0.5%]
Alcoa	1,015		10
Allegheny Technologies	102		4
Cliffs Natural Resources	135		10
Freeport-McMoRan Copper & Gold, Cl B	903		35
Goldcorp	3,750		169
Newmont Mining	471		24
Titanium Metals	78		1
United States Steel	137		4
Total Diversified Metals & Mining			257
Drugs [3.2%]
Abbott Laboratories	1,497		92
Allergan	2,010		192
AmerisourceBergen, Cl A	246		10
Bristol-Myers Squibb	10,208		345
Eli Lilly	972		39
Forest Laboratories *	253		9
Johnson & Johnson	2,614		172
Merck	2,899		111
Mylan *	17,207		403
Perrigo	89		9
Pfizer	7,179		163
Watson Pharmaceuticals *	121		8
Total Drugs			1,553
Electrical Equipment [0.1%]
Emerson Electric	699		36
Electrical Services [1.9%]
Ameren	231		7
American Electric Power	460		18
AMETEK	4,120		200
CenterPoint Energy	406		8
CMS Energy	245		5
Consolidated Edison	279		16
Cooper Industries	151		9
DTE Energy	161		9
Duke Energy	1,272		27
Exelon	811		32
First Solar *	56		1
FirstEnergy	398		18
Integrys Energy Group	75		4
NextEra Energy	396		24
NiSource	269		6

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 47

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

Northeast Utilities	9,969	$	370
Pepco Holdings	217		4
Pinnacle West Capital	104		5
PPL	552		16
Progress Energy	281		15
Public Service Enterprise Group	482		15
Rockwell Automation	136		11
Roper Industries	92		9
SCANA	110		5
Southern	825		37
TECO Energy	206		4
Wisconsin Energy	219		8
Xcel Energy	464		12
Total Electrical Services			895
Electronic Equipment & Instruments [1.4%]
Amphenol, Cl A	156		9
Avnet *	17,500		637
FLIR Systems	147		4
Jabil Circuit	176		5
Molex	131		4
TE Connectivity	406		15
Total Electronic Equipment & Instruments			674
Energy [0.2%]
Dominion Resources	543		28
Edison International	310		13
Entergy	168		11
PG&E	392		17
Sempra Energy	229		14
Total Energy			83
Engineering Services [0.0%]
Fluor	161		10
Entertainment [1.8%]
Carnival	431		14
Chipotle Mexican Grill, Cl A *	30		13
Darden Restaurants	122		6
International Game Technology	283		5
Las Vegas Sands	2,990		172
Marriott International, Cl A	254		10
Starbucks	3,707		207
Starwood Hotels & Resorts Worldwide	1,987		112
Wendy's	61,500		308

Description Shares Value (000)

Wyndham Worldwide	139	$	6
Wynn Resorts	76		9
Total Entertainment			862
Financial Services [2.4%]
American Express	11,406		660
Capital One Financial	7,527		420
Charles Schwab	1,029		15
CME Group, Cl A	63		18
Discover Financial Services	505		17
Hudson City Bancorp	502		4
IntercontinentalExchange *	69		9
Nasdaq Stock Market *	119		3
NYSE Euronext	246		7
People's United Financial	342		4
SLM	485		8
Western Union	591		10
Total Financial Services			1,175
Food, Beverage & Tobacco [3.6%]
Beam	149		9
Brown-Forman, Cl B	95		8
Coca-Cola	11,465		848
Coca-Cola Enterprises	286		8
ConAgra Foods	393		10
Constellation Brands, Cl A *	164		4
Dr Pepper Snapple Group	202		8
General Mills	614		24
Kellogg Company	235		13
Kraft Foods, Cl A	1,684		64
Molson Coors Brewing, Cl B	150		7
PepsiCo	11,105		737
Safeway	255		5
Total Food, Beverage & Tobacco			1,745
Gas/Natural Gas [0.1%]
AGL Resources	112		5
El Paso	736		22
ONEOK	99		8
Total Gas/Natural Gas			35
Healthcare Technology [0.3%]
Cerner *	1,969		150
Healthcare Products & Services [2.3%]
Agilent Technologies	3,741		167
Cardinal Health	329		14

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 48

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

Express Scripts Holding, Cl A *	4,322	$	234
Humana	156		14
Life Technologies *	170		8
McKesson	6,096		535
Medco Health Solutions *	370		26
Medtronic	991		39
PerkinElmer	108		3
Thermo Fisher Scientific	348		20
UnitedHealth Group	995		59
Waters *	85		8
Total Healthcare Products & Services			1,127
Household Furniture & Fixtures [0.4%]
Harman International Industries	67		3
Lennar, Cl A	2,855		77
Newell Rubbermaid	275		5
PulteGroup *	321		3
Stanley Black & Decker	1,451		112
Whirlpool	73		6
Total Household Furniture & Fixtures			206
Independent Power Producers & Energy Trader [0.0%]
AES *	613		8
NRG Energy *	217		3
Total Independent Power Producers & Energy Trader			11
Industrial [0.2%]
Dun & Bradstreet	45		4
Equifax	114		5
Manpower	2,190		104
Robert Half International	135		4
Total Industrial			117
Insurance [6.0%]
ACE	321		24
Aetna	334		17
Aflac	445		20
Allstate	475		16
American International Group *	512		16
AON	310		15
Assurant	83		3
Berkshire Hathaway, Cl B *	9,696		787
Chubb	3,258		225
Cigna	273		13
Cincinnati Financial	155		5
Coventry Health Care	134		5
DaVita *	89		8

Description Shares Value (000)

Genworth Financial, Cl A *	468	$	4
Hartford Financial Services Group	419		9
HCC Insurance Holdings	20,400		636
Lincoln National	277		7
Loews	5,391		215
Marsh & McLennan	518		17
MetLife	11,910		445
Principal Financial Group	287		8
Progressive	582		14
Prudential Financial	448		28
Tenet Healthcare *	390		2
Torchmark	95		5
Travelers	374		22
Unum Group	15,077		369
XL Group, Cl A	301		7
Total Insurance			2,942
Internet & Catalog Retail [0.1%]
Expedia	90		3
Netflix *	53		6
priceline.com *	47		34
TripAdvisor *	90		3
Total Internet & Catalog Retail			46
Investment Banker/Broker Dealer [1.4%]
Affiliated Managers Group *	2,020		226
Ameriprise Financial	211		12
BlackRock, Cl A	96		20
E*Trade Financial *	242		3
Federated Investors, Cl B	88		2
Franklin Resources	136		17
Goldman Sachs Group	471		59
Invesco	425		11
JPMorgan Chase	3,635		167
Legg Mason	118		3
Morgan Stanley	1,451		28
Northern Trust	230		11
T Rowe Price Group	241		16
TD Ameritrade Holding	5,590		110
Total Investment Banker/Broker Dealer			685
Machinery [2.2%]
AGCO *	6,200		293
Caterpillar	3,707		395
Cummins	183		22
Deere	383		31
Dover	175		11
Eaton	319		16

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 49

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

Flowserve	52	$	6
Illinois Tool Works	461		26
Ingersoll-Rand	283		12
Joy Global	101		7
Pall	2,190		131
Snap-on	56		3
SPX	1,730		134
Xylem	176		5
Total Machinery			1,092
Manufacturing [1.8%]
Tyco International	15,289		859
Medical Products & Services [6.5%]
Bard (C.R.)	80		8
Baxter International	534		32
Becton Dickinson	200		15
Boston Scientific *	1,382		8
CareFusion *	27,556		714
Covidien	12,410		679
DENTSPLY International	135		5
Edwards Lifesciences *	110		8
Hospira *	157		6
Intuitive Surgical *	287		155
Laboratory Corp of America Holdings *	6,693		613
Patterson	15,083		504
Quest Diagnostics	3,151		193
St. Jude Medical	4,415		196
Stryker	308		17
Varian Medical Systems *	108		7
WellPoint	319		24
Zimmer Holdings	170		11
Total Medical Products & Services			3,195
Miscellaneous Manufacturing [0.0%]
Leggett & Platt	133		3
Multi-Media [0.2%]
Walt Disney	1,707		75
Office Equipment & Supplies [0.0%]
Avery Dennison	101		3
Office Furniture & Fixtures [1.1%]
Autodesk *	215		9
BMC Software *	156		6
Citrix Systems *	177		14
Electronic Arts *	316		5

Description Shares Value (000)

Fortinet *	3,040	$	84
Intuit	281		17
Red Hat *	184		11
Salesforce.com *	1,480		229
VMware, Cl A *	1,390		156
Total Office Furniture & Fixtures			531
Paper & Related Products [0.7%]
International Paper	416		15
MeadWestvaco	163		5
Packaging Corp of America	10,200		302
Sealed Air	183		3
Total Paper & Related Products			325
Personal Products [0.0%]
Avon Products	410		8
Petroleum & Fuel Products [10.0%]
Alpha Natural Resources *	210		3
Anadarko Petroleum	3,905		306
Apache	366		37
Baker Hughes	417		17
Cabot Oil & Gas	5,540		173
Cameron International *	3,674		194
Chesapeake Energy	631		15
Chevron	1,883		202
Concho Resources *	2,910		297
ConocoPhillips	6,519		496
Consol Energy	216		7
Denbury Resources *	372		7
Devon Energy	385		27
Diamond Offshore Drilling	66		4
Enbridge	2,730		106
EOG Resources	256		28
EQT	142		7
Exxon Mobil	4,489		389
FMC Technologies *	228		11
Halliburton	879		29
Helmerich & Payne	102		6
Hess	288		17
Marathon Oil	670		21
Marathon Petroleum	331		14
Murphy Oil	185		10
Nabors Industries *	275		5
National Oilwell Varco	404		32
Newfield Exploration *	126		4
Noble	16,440		616
Noble Energy	169		17
Occidental Petroleum	772		74
Peabody Energy	2,089		61

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 50

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

Pioneer Natural Resources	117	$	13
QEP Resources	169		5
Range Resources	150		9
Rowan *	118		4
Schlumberger	6,540		457
Southwestern Energy *	9,532		292
Spectra Energy	21,620		682
Sunoco	102		4
Tesoro *	132		4
Valero Energy	529		14
Whiting Petroleum *	3,400		185
Williams	564		17
WPX Energy *	189		3
Total Petroleum & Fuel Products			4,921
Printing & Publishing [0.1%]
Cintas	105		4
Gannett	226		3
Iron Mountain	163		5
Pitney Bowes	190		3
Republic Services, Cl A	300		9
RR Donnelley & Sons	170		2
Stericycle *	81		7
Total Printing & Publishing			33
Railroads [0.0%]
CSX	1,002		22
Real Estate Investment Trust [0.7%]
American Tower, Cl A	375		24
Apartment Investment & Management, Cl A	115		3
AvalonBay Communities	91		13
Boston Properties	141		15
Equity Residential	286		18
HCP	390		15
Health Care REIT	200		11
Host Hotels & Resorts	674		11
Kimco Realty	388		7
Plum Creek Timber	154		6
ProLogis	437		16
Public Storage	135		19
Simon Property Group	1,002		146
Ventas	275		16
Vornado Realty Trust	176		15
Weyerhaeuser	511		11
Total Real Estate Investment Trust			346

Description Shares Value (000)

Real Estate Management & Development [1.9%]
Brookfield Asset Management, Cl A	23,600	$	745
CBRE Group, Cl A *	8,722		174
Total Real Estate Management & Development			919
Retail [3.3%]
Abercrombie & Fitch, Cl A	82		4
AutoNation *	43		1
Bed Bath & Beyond *	3,385		223
Best Buy	270		6
Big Lots *	62		3
CarMax *	216		8
Costco Wholesale	414		38
CVS	1,240		55
Dollar Tree *	113		11
Family Dollar Stores	112		7
Gap	316		8
Guess ?	4,330		135
Home Depot	1,468		74
JC Penney	8,538		303
Kohl's	241		12
Kroger	547		13
Limited Brands	234		11
Lowe's	1,182		37
Macy's	394		16
McDonald's	970		95
Nordstrom	152		8
O'Reilly Automotive *	121		11
Ross Stores	218		13
Sears Holdings *	36		2
Sherwin-Williams	82		9
Staples	661		11
Supervalu	202		1
SYSCO	557		17
Target	640		37
Tiffany	121		8
TJX	718		29
Urban Outfitters *	106		3
Walgreen	832		28
Wal-Mart Stores	1,663		102
Whole Foods Market	1,755		146
Yum! Brands	1,708		122
Total Retail			1,607
Schools [0.0%]
Apollo Group, Cl A *	107		4

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 51

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (continued)

Description Shares Value (000)

Semi-Conductors [3.3%]
Advanced Micro Devices *	559	$	4
Altera	8,287		330
Analog Devices	284		11
Applied Materials	15,930		198
Broadcom, Cl A	7,347		289
Intel	4,758		134
KLA-Tencor	159		9
Lam Research *	3,070		137
Linear Technology	218		7
LSI *	540		5
Microchip Technology	183		7
Micron Technology *	941		8
Novellus Systems *	67		3
NVIDIA *	582		9
NXP Semiconductor *	4,800		128
Teradyne *	178		3
Texas Instruments	10,360		348
Xilinx	249		9
Total Semi-Conductors			1,639
Steel & Steel Works [0.0%]
Nucor	302		13
Telephones & Telecommunications [2.9%]
AT&T	16,646		520
CenturyLink	590		23
Corning	30,749		433
Crown Castle International *	238		13
Frontier Communications	948		4
MetroPCS Communications *	280		2
Sprint Nextel *	2,855		8
Verizon Communications	2,700		103
Vodafone Group ADR	11,600		321
Windstream	559		7
Total Telephones & Telecommunications			1,434
Trading Companies & Distributors [0.1%]
Fastenal	281		15
WW Grainger	58		13
Total Trading Companies & Distributors			28
Transportation Services [1.0%]
CH Robinson Worldwide	156		10
Expeditors International of Washington	202		9
FedEx	299		27
Norfolk Southern	314		21

Description Shares Value (000)

Union Pacific	3,087	$	332
United Parcel Service, Cl B	913		74
Total Transportation Services			473
Trucking [0.0%]
Ryder System	49		3
Waste Management Services [0.0%]
Waste Management	439		15
Web Portals/ISP [2.7%]
Akamai Technologies *	169		6
Amazon.com *	1,957		396
Google, Cl A *	1,044		669
Juniper Networks *	5,591		128
LinkedIn, Cl A *	1,070		109
VeriSign	152		6
Yahoo! *	1,156		18
Total Web Portals/ISP			1,332
Wholesale [0.4%]
Archer-Daniels-Midland	630		20
Campbell Soup	170		6
Dean Foods *	175		2
Hershey	146		9
HJ Heinz	305		16
Hormel Foods	131		4
JM Smucker	108		9
McCormick	127		7
Mead Johnson Nutrition, Cl A	1,574		130
Sara Lee	563		12
Tyson Foods, Cl A	278		5
Total Wholesale			220
Total Common Stock (Cost $43,030)			48,301
Short-Term Investment [1.8%]
AIM STIT-Treasury Portfolio, 0.020%**	862,624		863
Total Short-Term Investment (Cost $863)			863
Total Investments [100.2%] (Cost $43,893)		$	49,164

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 52

schedule of investments

March 31, 2012 (Unaudited)

Diversified Equity Fund (concluded)

Percentages are based on Net Assets of $49,058 ($ Thousands).

* Non-income producing security.

** The rate reported is the 7-day effective yield as of March 31, 2012.

ADR — American Depositary Receipt

Cl — Class

REIT — Real Estate Investment Trust

As of March 31, 2012, all of the Fund’s investments are Level 1.

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 53

schedule of investments

March 31, 2012 (Unaudited)

Large Cap Value Equity Fund

Description	Shares		Value (000)
Common Stock [97.8%]
Aerospace & Defense [1.4%]
General Dynamics		9,000	$	661
L-3 Communications Holdings, Cl 3		15,600		1,104
Total Aerospace & Defense				1,765
Auto Components [1.3%]
Magna International		32,500		1,552
Beverages [0.5%]
PepsiCo		10,200		677
Biotechnology [1.3%]
Gilead Sciences *		31,600		1,544
Capital Markets [4.0%]
Bank of New York Mellon		52,900		1,277
Goldman Sachs Group		16,531		2,056
State Street		34,800		1,583
Total Capital Markets				4,916
Chemicals [0.9%]
EI du Pont de Nemours		19,600		1,037
Commercial Banks [4.7%]
US Bancorp		74,500		2,360
Wells Fargo		98,960		3,379
Total Commercial Banks				5,739

Description Shares Value (000)

Commercial Services & Supplies [2.1%]
Iron Mountain	53,700	$	1,547
Waste Management	30,500		1,066
Total Commercial Services & Supplies			2,613
Communications Equipment [3.0%]
Cisco Systems	146,000		3,088
Research In Motion *	39,300		578
Total Communications Equipment			3,666
Computers & Peripherals [0.6%]
Western Digital *	17,300		716
Consumer Finance [1.9%]
American Express	40,200		2,326
Diversified Financial Services [5.7%]
Citigroup	88,397		3,231
JPMorgan Chase	83,200		3,825
Total Diversified Financial Services			7,056
Diversified Telecommunication Services [3.0%]
AT&T	79,917		2,496
Verizon Communications	30,500		1,166
Total Diversified Telecommunication Services			3,662
Electric Utilities [2.1%]
American Electric Power	13,100		506
Edison International	35,500		1,509
NextEra Energy	10,200		623
Total Electric Utilities			2,638
Electronic Equipment [2.0%]
Corning	177,200		2,495
Food & Staples Retailing [3.9%]
CVS	25,500		1,142
SUPERVALU	124,500		711
Wal-Mart Stores	48,200		2,950
Total Food & Staples Retailing			4,803
Food Products [0.9%]
Dean Foods *	90,000		1,090

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 54

schedule of investments

March 31, 2012 (Unaudited)

Large Cap Value Equity Fund (continued)

Description Shares Value (000)

Healthcare Equipment & Supplies [0.7%]
Baxter International	4,300	$	257
Becton Dickinson	6,900		536
Total Healthcare Equipment & Supplies			793
Healthcare Providers & Services [2.1%]
Aetna	34,200		1,715
Cigna	18,500		911
Total Healthcare Providers & Services			2,626
Household Products [1.9%]
Procter & Gamble	34,700		2,332
Industrial Conglomerates [3.3%]
General Electric	160,700		3,225
Tyco International	13,600		764
Total Industrial Conglomerates			3,989
Insurance [7.7%]
Aflac	58,362		2,684
Berkshire Hathaway, Cl B *	35,400		2,873
Marsh & McLennan	63,100		2,069
Travelers	31,700		1,877
Total Insurance			9,503
IT Services [0.9%]
Western Union	60,000		1,056
Leisure Equipment & Products [1.5%]
Mattel	53,300		1,794
Machinery [1.0%]
AGCO *	25,700		1,213
Media [2.6%]
Comcast, Cl A	108,400		3,253
Metals & Mining [1.7%]
Barrick Gold	25,100		1,091
Newmont Mining	19,800		1,015
Total Metals & Mining			2,106
Multiline Retail [2.1%]
Target	44,400		2,587

Description Shares Value (000)

Multi-Utilities [4.0%]
Consolidated Edison	7,000	$	409
National Grid ADR	27,200		1,373
PG&E	42,000		1,823
Public Service Enterprise Group	22,100		676
Sempra Energy	10,000		600
Total Multi-Utilities			4,881
Oil, Gas & Consumable Fuels [11.9%]
Apache	14,000		1,406
BP ADR	40,900		1,841
Chesapeake Energy	38,300		887
Chevron	25,440		2,728
ConocoPhillips	39,280		2,986
Exxon Mobil	37,000		3,209
Hess	26,000		1,533
Total Oil, Gas & Consumable Fuels			14,590
Pharmaceuticals [4.1%]
Abbott Laboratories	21,700		1,330
Merck	23,100		887
Pfizer	79,755		1,807
Teva Pharmaceutical Industries ADR	23,300		1,050
Total Pharmaceuticals			5,074
Real Estate Management & Development [1.8%]
Brookfield Asset Management, Cl A	68,200		2,153
Road & Rail [2.8%]
CSX	43,500		936
Union Pacific	23,000		2,472
Total Road & Rail			3,408
Semiconductors & Semiconductor Equipment [1.6%]
Intel	72,200		2,029
Software [3.0%]
Microsoft	114,600		3,696
Specialty Retail [2.7%]
Best Buy	56,200		1,331
Lowe's	22,500		706
Staples	82,700		1,338
Total Specialty Retail			3,375

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 55

schedule of investments

March 31, 2012 (Unaudited)

Large Cap Value Equity Fund (concluded)

Description Shares Value (000)

Wireless Telecommunication Services [1.1%]
Sprint Nextel *	469,000	$	1,337
Total Common Stock (Cost $108,415)			120,090
Short-Term Investments [2.1%]
Fidelity Institutional Domestic Money Market Portfolio, Cl I, 0.143%**	1,433,406		1,433
Goldman Sachs Financial Square Funds - Government Fund, 0.040%**	1,060,940		1,061
Total Short-Term Investments (Cost $2,494)			2,494
Total Investments [99.9%] (Cost $110,909)		$	122,584

Percentages are based on Net Assets of $122,758 ($ Thousands).

* Non-income producing security.

** The rate reported is the 7-day effective yield as of March 31, 2012.

ADR — American Depositary Receipt

Cl — Class

As of March 31, 2012, all of the Fund’s investments are Level 1.

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 56

schedule of investments

March 31, 2012 (Unaudited)

Large Cap Growth Equity Fund

Description Shares Value (000)

Common Stock [99.3%]
Aerospace & Defense [1.4%]
Boeing	8,500	$	632
Air Freight & Logistics [1.6%]
FedEx	8,400		772
Beverages [3.3%]
Dr Pepper Snapple Group	13,800		555
Fomento Economico Mexicano ADR	12,300		1,012
Total Beverages			1,567
Biotechnology [6.5%]
Celgene *	15,600		1,209
Gilead Sciences *	25,300		1,236
Onyx Pharmaceuticals *	16,000		603
Total Biotechnology			3,048
Chemicals [1.0%]
Mosaic	8,800		486
Commercial Banks [1.3%]
Wells Fargo	17,650		602
Communications Equipment [3.5%]
Qualcomm	24,000		1,633

Description Shares Value (000)

Computers & Peripherals [12.7%]
Apple *	7,900	$	4,736
EMC *	42,100		1,258
Total Computers & Peripherals			5,994
Diversified Financial Services [1.6%]
JPMorgan Chase	16,400		754
Diversified Telecommunication Services [0.8%]
Verizon Communications	9,500		363
Energy Equipment & Services [5.5%]
Baker Hughes	16,300		684
Halliburton	14,100		468
National Oilwell Varco	8,300		659
Schlumberger	11,600		811
Total Energy Equipment & Services			2,622
Food & Staples Retailing [4.1%]
CVS	28,000		1,254
Wal-Mart Stores	11,500		704
Total Food & Staples Retailing			1,958
Food Products [3.6%]
Bunge	12,500		856
Dean Foods *	68,700		832
Total Food Products			1,688
Healthcare Equipment & Supplies [2.1%]
Baxter International	17,000		1,016
Hotels, Restaurants & Leisure [2.1%]
Starbucks	17,500		978
Independent Power Producers & Energy Traders [0.8%]
AES *	27,700		362
Industrial Conglomerates [2.0%]
Danaher	16,700		935
Insurance [1.6%]
Prudential Financial	12,000		761

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 57

schedule of investments

March 31, 2012 (Unaudited)

Large Cap Growth Equity Fund (concluded)

Description Shares Value (000)

Internet & Catalog Retail [2.0%]
priceline.com *	1,300	$	933
Internet Software & Services [3.0%]
Google, Cl A *	2,250		1,443
IT Services [5.6%]
IBM	8,000		1,669
Mastercard, Cl A	2,300		967
Total IT Services			2,636
Life Sciences Tools & Services [1.7%]
Agilent Technologies	18,000		801
Machinery [3.8%]
Caterpillar	7,400		788
Cummins	8,500		1,021
Total Machinery			1,809
Media [6.1%]
Comcast, Cl A	31,100		933
DIRECTV, Cl A *	22,200		1,095
Omnicom Group	16,800		851
Total Media			2,879
Metals & Mining [2.8%]
Allegheny Technologies	13,700		564
Worthington Industries	38,200		733
Total Metals & Mining			1,297
Multiline Retail [1.3%]
Target	11,100		647
Oil, Gas & Consumable Fuels [5.8%]
Chevron	8,400		901
Exxon Mobil	21,200		1,839
Total Oil, Gas & Consumable Fuels			2,740
Personal Products [1.3%]
Avon Products	31,000		600

Description Shares Value (000)

Pharmaceuticals [5.0%]
Merck	14,200	$	545
Mylan *	49,900		1,170
Shire ADR	6,600		626
Total Pharmaceuticals			2,341
Road & Rail [1.5%]
Norfolk Southern	10,900		718
Semiconductors & Semiconductor Equipment [1.5%]
Marvell Technology Group *	45,900		722
Software [2.4%]
Microsoft	35,200		1,135
Total Common Stock (Cost $38,446)			46,872
Short-Term Investments [0.7%]
Fidelity Institutional Domestic Money Market Portfolio, Cl I, 0.143%**	280,640		281
Goldman Sachs Financial Square Funds - Government Fund, 0.040%**	44,938		45
Total Short-Term Investments (Cost $326)			326
Total Investments [100.0%] (Cost $38,772)		$	47,198

Percentages are based on Net Assets of $47,219 ($ Thousands).

* Non-income producing security.

** The rate reported is the 7-day effective yield as of March 31, 2012.

ADR — American Depositary Receipt

Cl — Class

As of March 31, 2012, all of the Fund’s investments are Level 1.

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 58

schedule of investments

March 31, 2012 (Unaudited)

Socially Responsible Equity Fund

Description Shares Value (000)

Common Stock [96.9%]
Automotive [6.1%]
Ford Motor	194,000	$	2,423
Johnson Controls	58,700		1,907
Paccar	42,000		1,967
Total Automotive			6,297
Banks [7.4%]
CIT Group *	49,500		2,042
Cullen	21,400		1,245
M&T Bank	24,100		2,094
US Bancorp	71,000		2,249
Total Banks			7,630
Broadcasting & Cable [2.0%]
Cisco Systems	98,800		2,090
Building & Construction [2.2%]
Owens Corning *	61,900		2,230
Business Services [2.0%]
Automatic Data Processing	37,000		2,042
Chemicals [2.4%]
EI du Pont de Nemours	46,200		2,444
Commercial Banks [0.9%]
BB&T	30,000		942
Communication & Media [1.6%]
Time Warner	41,700		1,574

Description Shares Value (000)

Computer Software [1.5%]
Microsoft	47,000	$	1,516
Distributors [2.0%]
Genuine Parts	33,200		2,083
Drugs [5.5%]
Abbott Laboratories	50,900		3,120
Bristol-Myers Squibb	76,100		2,568
Total Drugs			5,688
Electrical Equipment [2.0%]
Emerson Electric	39,200		2,046
Electrical Services [1.5%]
Northeast Utilities	40,700		1,511
Electronic Equipment & Instruments [2.0%]
Arrow Electronics *	50,000		2,098
Financial Services [4.0%]
American Express	37,000		2,141
NYSE Euronext	67,000		2,010
Total Financial Services			4,151
Food, Beverage & Tobacco [2.8%]
PepsiCo	43,700		2,899
Healthcare Products & Services [3.9%]
Cardinal Health	45,100		1,944
McKesson	23,200		2,037
Total Healthcare Products & Services			3,981
Insurance [10.6%]
Berkshire Hathaway, Cl B *	36,200		2,938
Chubb	44,000		3,041
HCC Insurance Holdings	64,500		2,010
Loews	38,600		1,539
Mercury General	29,900		1,308
Total Insurance			10,836
Machinery [0.8%]
AGCO *	18,400		869

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 59

schedule of investments

March 31, 2012 (Unaudited)

Socially Responsible Equity Fund (concluded)

Description Shares Value (000)

Manufacturing [2.1%]
Tyco International	37,475	$	2,105
Medical Products & Services [8.1%]
CareFusion *	58,100		1,506
Laboratory Corp of America Holdings *	33,300		3,048
Patterson	79,700		2,662
Quest Diagnostics	17,100		1,046
Total Medical Products & Services			8,262
Paper & Related Products [1.9%]
Packaging Corp of America	65,800		1,947
Petroleum & Fuel Products [9.4%]
ConocoPhillips	42,000		3,193
Encana	95,100		1,869
Southwestern Energy *	40,600		1,242
Spectra Energy	106,600		3,363
Total Petroleum & Fuel Products			9,667
Real Estate Management & Development [3.2%]
Brookfield Asset Management, Cl A	103,500		3,267
Semi-Conductors [4.3%]
Analog Devices	70,500		2,848
Intel	56,400		1,586
Total Semi-Conductors			4,434
Steel & Steel Works [2.2%]
Nucor	54,300		2,332
Telephones & Telecommunications [0.6%]
Corning	40,000		563
Transportation Services [2.0%]
United Parcel Service, Cl B	25,300		2,042
Waste Management Services [1.9%]
Waste Management	56,300		1,968
Total Common Stock (Cost $85,712)			99,514

Description Shares Value (000)

Short-Term Investment [3.4%]
AIM STIT-Government TaxAdvantage Portfolio, 0.020%**	3,530,228	$	3,530
Total Short-Term Investment (Cost $3,530)			3,530
Total Investments [100.3%] (Cost $89,242)		$	103,044

Percentages are based on Net Assets of $102,698 ($ Thousands).

* Non-income producing security.

** The rate reported is the 7-day effective yield as of March 31, 2012.

Cl — Class

As of March 31, 2012, all of the Fund’s investments are Level 1.

For the period ended March 31, 2012, there have been no transfers between Level 1 and Level 2 assets and liabilities. Transfers between Levels are recognized at period end.

For more information on valuation inputs, see Note 2 — Significant Accounting Policies in the Notes to Financial Statements.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 60

This page intentionally left blank.

CNI CHARTER FUNDS | PAGE 61

statements of assets and liabilities (000)

March 31, 2012 (Unaudited)

	Government Money Market Fund			Prime Money Market Fund			California Tax Exempt Money Market Fund
ASSETS:
Cost of securities (including repurchase agreements)	$	3,062,975		$	1,141,399		$	839,248
Investments in securities, at value	$	2,337,975		$	951,399		$	839,248
Repurchase agreements, at value		725,000			190,000			—
Cash		—			—			25,336
Receivable for investment securities sold		—			—			15,000
Dividend and interest receivable		1,078			290			658
Prepaid expenses		114			47			33
Total Assets		3,064,167			1,141,736			880,275
LIABILITIES:
Payable for income distributions		8			11			2
Investment adviser fees payable		162			158			32
Shareholder servicing & distribution fees payable		—			5			—
Administrative fees payable		101			38			29
Trustees' fees payable		15			7			5
Accrued expenses		336			147			98
Total Liabilities		622			366			166
Net Assets	$	3,063,545		$	1,141,370		$	880,109
NET ASSETS:
Paid-in Capital (unlimited authorization — $0.01 par value)	$	3,063,552		$	1,141,384		$	880,108
Undistributed (distributions in excess of) net investment income		—			—			(1	)
Accumulated net realized gain (loss) on investments		(7	)		(14	)		2
Net Assets	$	3,063,545		$	1,141,370		$	880,109
Institutional Class Shares ($Dollars):
Net Assets	$	102,622,937		$	513,612,544		$	125,470,533
Total shares outstanding at end of period		102,624,378			513,691,909			125,472,272
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	1.00		$	1.00		$	1.00
Class N Shares ($Dollars):
Net Assets	$	2,683,416,133		$	394,070,064		$	685,393,158
Total shares outstanding at end of period		2,683,419,960			394,132,255			685,394,705
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	1.00		$	1.00		$	1.00
Class S Shares ($Dollars):
Net Assets	$	277,505,575		$	233,687,627		$	69,245,690
Total shares outstanding at end of period		277,507,330			233,653,050			69,242,000
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	1.00		$	1.00		$	1.00

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 62

statements of assets and liabilities (000)

March 31, 2012 (Unaudited)

	Limited Maturity Fixed Income Fund			Government Bond Fund			Corporate Bond Fund		California Tax Exempt Bond Fund
ASSETS:
Cost of securities	$	38,189		$	170,139		$	116,113	$	55,652
Investments in securities, at value	$	38,801		$	173,387		$	119,761	$	57,411
Cash		17			—			—		—
Receivable for investment securities sold		—			—			—		991
Dividend and income receivable		263			592			1,188		677
Receivable for capital shares sold		—			278			192		80
Prepaid expenses		1			6			4		2
Total Assets		39,082			174,263			121,145		59,161
LIABILITIES:
Payable for income distributions		9			53			165		62
Payable for capital shares redeemed		2			350			61		12
Payable for investment securities purchased		—			—			—		542
Investment adviser fees payable		16			67			42		13
Shareholder servicing & distribution fees payable		4			33			27		14
Administrative fees payable		2			7			5		3
Trustees' fee payable		—			1			1		—
Accrued expenses		13			18			25		6
Total Liabilities		46			529			326		652
Net Assets	$	39,036		$	173,734		$	120,819	$	58,509
NET ASSETS:
Paid-in Capital (unlimited authorization — $0.01 par value)	$	40,845		$	170,794		$	116,403	$	56,384
Undistributed (distributions in excess of) net investment income		—			(419	)		—		2
Accumulated net realized gain (loss) on investments		(2,421	)		111			768		364
Net unrealized appreciation on investments		612			3,248			3,648		1,759
Net Assets	$	39,036		$	173,734		$	120,819	$	58,509
Institutional Class Shares ($Dollars):
Net Assets	$	33,100,538		$	48,471,229		$	—	$	—
Total shares outstanding at end of period		2,958,626			4,540,954			—		—
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	11.19		$	10.67		$	—	$	—
Class N Shares ($Dollars):
Net Assets	$	5,935,365		$	2,886,566		$	2,482,319	$	4,655,036
Total shares outstanding at end of period		530,219			269,986			230,736		433,465
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	11.19		$	10.69		$	10.76	$	10.74
Servicing Class Shares ($Dollars):
Net Assets	$	—		$	122,375,891		$	118,336,819	$	53,854,072
Total shares outstanding at end of period		—			11,468,968			11,012,823		5,029,363
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	—		$	10.67		$	10.75	$	10.71

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 63

statements of assets and liabilities (000)

March 31, 2012 (Unaudited)

	Full Maturity Fixed Income Fund			High Yield Bond Fund			Multi-Asset Fund			Diversified Equity Fund
ASSETS:
Cost of securities (including affiliated investments)	$	43,382		$	122,211		$	47,233		$	43,893
Investments in securities, at value	$	44,883		$	123,488		$	43,498		$	49,164
Affiliated investments, at value		—			—			4,991			—
Cash		5			—			—			—
Dividend and income receivable		326			2,872			180			36
Receivable for investment securities sold		382			461			—			166
Receivable for capital shares sold		—			369			187			—
Prepaid expenses		1			3			2			2
Total Assets		45,597			127,193			48,858			49,368
LIABILITIES:
Payable for income distributions		15			416			45			3
Payable for capital shares redeemed		—			92			—			3
Payable for investment securities purchased		377			1,359			—			252
Investment adviser fees payable		19			81			21			30
Shareholder servicing & distribution fees payable		1			35			15			3
Administrative fees payable		2			5			2			2
Trustees' fees payable		—			1			—			—
Accrued expenses		14			10			4			17
Total Liabilities		428			1,999			87	��		310
Net Assets	$	45,169		$	125,194		$	48,771		$	49,058
NET ASSETS:
Paid-in Capital (unlimited authorization — $0.01 par value)	$	43,033		$	125,114		$	50,600		$	61,172
Undistributed (distributions in excess of) net investment income		(22	)		45			29			(2	)
Accumulated net realized gain (loss) on investments		657			(1,242	)		(3,114	)		(17,383	)
Net unrealized appreciation on investments		1,501			1,277			1,256			5,271
Net Assets	$	45,169		$	125,194		$	48,771		$	49,058
Institutional Class Shares ($Dollars):
Net Assets	$	44,792,511		$	27,641,365		$	13,634,756		$	44,326,690
Total shares outstanding at end of period		4,150,073			3,261,417			1,309,300			3,187,179
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	10.79		$	8.48		$	10.41		$	13.91
Class N Shares ($Dollars):
Net Assets	$	376,451		$	33,493,356		$	26,693,847		$	4,731,567
Total shares outstanding at end of period		34,904			3,952,744			2,563,207			339,195
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	10.79		$	8.47		$	10.41		$	13.95
Servicing Class Shares ($Dollars):
Net Assets	$	—		$	64,059,221		$	8,442,872		$	—
Total shares outstanding at end of period		—			7,561,206			809,809			—
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	—		$	8.47		$	10.43		$	—

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 64

statements of assets and liabilities (000)

March 31, 2012 (Unaudited)

	Large Cap Value Equity Fund			Large Cap Growth Equity Fund			Socially Responsible Equity Fund
ASSETS:
Cost of securities	$	110,909		$	38,772		$	89,242
Investments in securities, at value	$	122,584		$	47,198		$	103,044
Cash		27			—			16
Dividend and income receivable		157			35			141
Receivable for investment securities sold		—			—			639
Receivable for capital shares sold		202			63			75
Prepaid expenses		4			2			2
Total Assets		122,974			47,298			103,917
LIABILITIES:
Payable for income distributions		88			10			—
Payable for capital shares redeemed		20			24			187
Payable for investment securities purchased		—			—			941
Investment adviser fees payable		64			26			64
Shareholder servicing & distribution fees payable		26			13			6
Administrative fees payable		5			2			4
Trustees’ fees payable		1			—			—
Accrued expenses		12			4			17
Total Liabilities		216			79			1,219
Net Assets	$	122,758		$	47,219		$	102,698
NET ASSETS:
Paid-in Capital (unlimited authorization — $0.01 par value)	$	114,222		$	39,186		$	99,936
Distributions in excess of net investment income		(2	)		(1	)		(2	)
Accumulated net realized loss on investments		(3,137	)		(392	)		(11,038	)
Net unrealized appreciation on investments		11,675			8,426			13,802
Net Assets	$	122,758		$	47,219		$	102,698
Institutional Class Shares ($Dollars):
Net Assets	$	30,599,952		$	—		$	78,258,560
Total shares outstanding at end of period		3,397,121			—			7,728,380
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	9.01		$	—		$	10.13
Class N Shares ($Dollars):
Net Assets	$	10,269,826		$	11,539,712		$	24,439,161
Total shares outstanding at end of period		1,142,102			1,248,872			2,418,263
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	8.99		$	9.24		$	10.11
Servicing Class Shares ($Dollars):
Net Assets	$	81,888,296		$	35,678,910		$	—
Total shares outstanding at end of period		9,091,075			3,818,220			—
Net asset value, offering and redemption price per share
(net assets ÷ shares outstanding)	$	9.01		$	9.34		$	—

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 65

statements of operations

For the six months ended March 31, 2012 (Unaudited)

	Government Money Market Fund (000)			Prime Money Market Fund (000)			California Tax Exempt Money Market Fund (000)
INCOME:
Interest Income	$	2,040		$	1,393		$	479
Total Investment Income		2,040			1,393			479
EXPENSES:
Investment Advisory Fees		4,393			1,580			1,239
Shareholder Servicing Fees — Institutional Class(1)		145			708			194
Shareholder Servicing Fees — Class N(1)		11,121			1,569			2,559
Shareholder Servicing Fees — Class S(1)		1,117			1,047			301
Administration Fees		814			305			222
Transfer Agent Fees		109			41			30
Trustee Fees		75			29			21
Professional Fees		252			94			71
Printing Fees		74			27			20
Custody Fees		72			32			6
Registration Fees		63			27			19
Insurance and Other Expenses		143			63			44
Total Expenses		18,378			5,522			4,726
Less, Waivers of:
Investment Advisory Fees		(3,864	)		(834	)		(1,166	)
Shareholder Servicing Fees — Institutional Class(1)		(145	)		(708	)		(194	)
Shareholder Servicing Fees — Class N(1)		(11,121	)		(1,548	)		(2,559	)
Shareholder Servicing Fees — Class S(1)		(1,117	)		(1,033	)		(301	)
Administration Fees		(151	)		(57	)		(42	)
Transfer Agent Fees		(109	)		(41	)		(30	)
Net Expenses		1,871			1,301			434
Net Investment Income		169			92			45
Net Realized Loss From Securities Transactions		(2	)		(2	)		—
Net Increase in Net Assets Resulting from Operations	$	167		$	90		$	45

(1) Includes class specific distribution expenses.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 66

statements of operations

For the six months ended March 31, 2012 (Unaudited)

	Limited Maturity Fixed Income Fund (000)			Government Bond Fund (000)				Corporate Bond Fund (000)			California Tax Exempt Bond Fund (000)
INCOME:
Interest Income	$	352		$	1,496			$	1,888		$	901
Dividend Income		—			—				18			—
Total Investment Income		352			1,496				1,906			901
EXPENSES:							��
Investment Advisory Fees		96			375				243			81
Shareholder Servicing Fees — Class N(1)		15			7				6			12
Shareholder Servicing Fees — Servicing Class(1)		—			207				149			69
Administration Fees		9			42				29			14
Transfer Agent Fees		20			6				4			2
Trustee Fees		1			4				3			1
Professional Fees		3			12				9			4
Custody Fees		1			4				2			1
Registration Fees		1			4				2			1
Printing Fees		1			4				3			1
Insurance and Other Expenses		1			7				14			3
Total Expenses		148			672				464			189
Less, Waivers of:
Investment Advisory Fees		—			(11	)			—			(15	)
Shareholder Servicing Fees — Class N(1)		(8	)		—				—			—
Transfer Agent Fees		—			(6	)			(4	)		(2	)
Net Expenses		140			655				460			172
Net Investment Income		212			841				1,446			729
Net Realized Gain From Securities Transactions		35			110				768			398
Net Change in Unrealized Appreciation (Depreciation) on Investments		109			(832	)			1,672			204
Net Increase in Net Assets Resulting From Operations	$	356		$	119			$	3,886		$	1,331

(1) Includes class specific distribution expenses.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 67

statements of operations

For the six months ended March 31, 2012 (Unaudited)

	Full Maturity Fixed Income Fund (000)			High Yield Bond Fund (000)			Multi-Asset Fund (000)			Diversified Equity Fund (000)
INCOME:
Dividend Income	$	—		$	1		$	565		$	372
Interest Income		684			5,291			51			—
Income from Affiliated Investments		—			—			141			—
Less: Foreign Taxes Withheld		—			—			—			(3	)
Total Investment Income		684			5,292			757			369
EXPENSES:
Investment Advisory Fees		113			434			117			200
Shareholder Servicing Fees — Class N(1)		1			86			67			12
Shareholder Servicing Fees — Servicing Class(1)		—			103			24			—
Administration Fees		11			28			12			13
Transfer Agent Fees		21			4			2			23
Trustee Fees		1			2			1			1
Professional Fees		3			8			3			4
Custody Fees		1			2			1			1
Registration Fees		1			2			1			1
Printing Fees		1			2			1			1
Insurance and Other Expenses		2			4			2			3
Total Expenses		155			675			231			259
Less, Waiver of:
Investment Advisory Fees		—			(13	)		—			(1	)
Shareholder Servicing Fees — Class N(1)		(1	)		—			—			(6	)
Transfer Agent Fees		—			(4	)		(2	)		—
Net Expenses		154			658			229			252
Net Investment Income		530			4,634			528			117
Net Realized Gain (Loss) From Securities Transactions		774			766			(1,145	)		2,680
Net Realized Gain From Affiliated Investments		—			—			62			—
Net Change in Unrealized Appreciation (Depreciation) on Investments		(636	)		5,996			3,399			8,040
Net Change in Unrealized Appreciation on Affiliated Investments		—			—			132			—
Net Increase in Net Assets Resulting From Operations	$	668		$	11,396		$	2,976		$	10,837

(1) Includes class specific distribution expenses.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 68

statements of operations

For the six months ended March 31, 2012 (Unaudited)

	Large Cap Value Equity Fund (000)			Large Cap Growth Equity Fund (000)			Socially Responsible Equity Fund (000)
INCOME:
Dividend Income	$	1,408		$	321		$	986
Interest Income		1			—			—
Less: Foreign Taxes Withheld		(7	)		—			(11	)
Total Investment Income		1,402			321			975
EXPENSES:
Investment Advisory Fees		352			151			302
Shareholder Servicing Fees — Servicing Class(1)		126			45			—
Shareholder Servicing Fees — Class N(1)		24			26			22
Administration Fees		27			11			19
Transfer Agent Fees		4			2			24
Trustee Fees		2			1			2
Professional Fees		8			4			6
Custody Fees		3			1			2
Printing Fees		2			1			2
Registration Fees		2			1			1
Insurance and Other Expenses		5			2			3
Total Expenses		555			245			383
Less, Waiver of:
Shareholder Servicing Fees — Class N(1)		—			—			(11	)
Transfer Agent Fees		(4	)		(2	)		—
Net Expenses		551			243			372
Net Investment Income		851			78			603
Net Realized Gain From Securities Transactions		687			905			662
Net Change in Unrealized Appreciation on Investments		21,021			9,497			13,807
Net Increase in Net Assets Resulting from Operations	$	22,559		$	10,480		$	15,072

(1) Includes class specific distribution expenses.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 69

statements of changes in net assets

For the six months ended March 31, 2012 (Unaudited) and the year ended September 30, 2011

	Government Money Market Fund (000)						Prime Money Market Fund (000)
	2012			2011			2012			2011
OPERATIONS:
Net Investment Income	$	169		$	489		$	92		$	495
Net Realized Gain (Loss) from Security Transactions		(2	)		—			(2	)		(12	)
Net Change in Unrealized Appreciation (Depreciation) on Investments		—			—			—			—
Net Increase in Net Assets Resulting from Operations		167			489			90			483
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
Institutional Class		(6	)		(19	)		(57	)		(330	)
Class N		(148	)		(458	)		(21	)		(146	)
Class S		(15	)		(32	)		(14	)		(57	)
Servicing Class		—			—			—			—
Realized Capital Gains:
Class N		—			—			—			—
Servicing Class		—			—			—			—
Total Dividends & Distributions		(169	)		(509	)		(92	)		(533	)
CAPITAL SHARE TRANSACTIONS:(1)
Institutional Class:
Shares Issued		436,361			468,707			1,759,629			2,567,876
Shares Issued in Lieu of Dividends and Distributions		—			—			9			51
Shares Redeemed		(385,443	)		(498,052	)		(1,876,275	)		(2,427,636	)
Increase (Decrease) in Net Assets From Institutional Class Share Transactions		50,918			(29,345	)		(116,637	)		140,291
Class N:
Shares Issued		2,316,420			6,046,915			394,304			1,236,194
Shares Issued in Lieu of Dividends and Distributions		120			374			14			93
Shares Redeemed		(2,559,241	)		(5,719,187	)		(450,529	)		(1,218,312	)
Increase (Decrease) in Net Assets from Class N Share Transactions		(242,701	)		328,102			(56,211	)		17,975
Class S:
Shares Issued		369,986			849,467			680,110			1,490,167
Shares Issued in Lieu of Dividends and Distributions		—			—			—			—
Shares Redeemed		(383,675	)		(906,968	)		(711,538	)		(1,577,615	)
Increase (Decrease) in Net Assets from Class S Share Transactions		(13,689	)		(57,501	)		(31,428	)		(87,448	)
Servicing Class:
Shares Issued		—			—			—			—
Shares Issued in Lieu of Dividends and Distributions		—			—			—			—
Shares Redeemed		—			—			—			—
Increase (Decrease) in Net Assets from Servicing Class Share Transactions		—			—			—			—
Net Increase (Decrease) in Net Assets From Share Transactions		(205,472	)		241,256			(204,276	)		70,818
Total Increase (Decrease) in Net Assets		(205,474	)		241,236			(204,278	)		70,768
NET ASSETS:
Beginning of Period		3,269,019			3,027,783			1,345,648			1,274,880
End of Period	$	3,063,545		$	3,269,019		$	1,141,370		$	1,345,648
Distribution in Excess of Net Investment Income	$	—		$	—		$	—		$	—

(1) See Note 8 for shares issued and redeemed.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 70

California Tax Exempt Money Market Fund (000)						Limited Maturity Fixed Income Fund (000)						Government Bond Fund (000)						Corporate Bond Fund (000)
2012			2011			2012			2011			2012			2011			2012			2011
$	45		$	164		$	212		$	579		$	841		$	2,380		$	1,446		$	3,384
	—			—			35			359			110			1,609			768			1,063
	—			—			109			(607	)		(832	)		1,187			1,672			(3,970	)
	45			164			356			331			119			5,176			3,886			477
	(8	)		(36	)		(185	)		(471	)		(45	)		—			—			—
	(34	)		(121	)		(27	)		(108	)		(18	)		(52	)		(26	)		(63	)
	(4	)		(7	)		—			—			—			—			—			—
	—			—			—			—			(1,197	)		(3,304	)		(1,420	)		(3,327	)
	—			—			—			—			(2	)		—			(11	)		—
	—			—			—			—			(141	)		—			(527	)		—
	(46	)		(164	)		(212	)		(579	)		(1,403	)		(3,356	)		(1,984	)		(3,390	)
	549,607			1,057,959			1,801			2,339			49,179			—			—			—
	—			—			121			306			43			—			—			—
	(594,068	)		(1,028,266	)		(685	)		(3,982	)		(709	)		—			—			—
	(44,461	)		29,693			1,237			(1,337	)		48,513			—			—			—
	488,173			1,294,708			597			8,524			110			529			171			1,077
	33			117			27			76			11			29			23			33
	(430,976	)		(1,305,501	)		(1,114	)		(11,411	)		(153	)		(883	)		(229	)		(945	)
	57,230			(10,676	)		(490	)		(2,811	)		(32	)		(325	)		(35	)		165
	111,967			301,856			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	(120,942	)		(271,899	)		—			—			—			—			—			—
	(8,975	)		29,957			—			—			—			—			—			—
	—			—			—			—			26,301			56,798			25,613			40,990
	—			—			—			—			929			2,397			715			1,062
	—			—			—			—			(79,499	)		(40,511	)		(21,420	)		(33,215	)
	—			—			—			—			(52,269	)		18,684			4,908			8,837
	3,794			48,974			747			(4,148	)		(3,788	)		18,359			4,873			9,002
	3,793			48,974			891			(4,396	)		(5,072	)		20,179			6,775			6,089
	876,316			827,342			38,145			42,541			178,806			158,627			114,044			107,955
$	880,109		$	876,316		$	39,036		$	38,145		$	173,734		$	178,806		$	120,819		$	114,044
$	(1	)	$	—		$	—		$	—		$	(419	)	$	—		$	—		$	—

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 71

statements of changes in net assets

For the six months ended March 31, 2012 (Unaudited) and the year ended September 30, 2011

	California Tax Exempt Bond Fund (000)						Full Maturity Fixed Income Fund (000)
	2012			2011			2012			2011
OPERATIONS:
Net Investment Income	$	729		$	1,360		$	530		$	1,252
Net Realized Gain (Loss) from Security Transactions and Affiliated Investments		398			362			774			609
Net Change in Unrealized Appreciation (Depreciation) on Investments and Affiliated Investments		204			(50	)		(636	)		(395	)
Increase (Decrease) in Net Assets Resulting from Operations		1,331			1,672			668			1,466
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
Institutional Class		—			—			(547	)		(1,204	)
Class N		(51	)		(93	)		(5	)		(86	)
Servicing Class		(676	)		(1,267	)		—			—
Realized Capital Gains:
Institutional Class		—			—			(585	)		(225	)
Class N		(30	)		(14	)		(6	)		(22	)
Servicing Class		(365	)		(173	)		—			—
Total Dividends and Distributions		(1,122	)		(1,547	)		(1,143	)		(1,537	)
CAPITAL SHARE TRANSACTIONS:(1)
Institutional Class:
Shares Issued		—			—			483			1,116
Shares Issued in Lieu of Dividends and Distributions		—			—			937			1,207
Shares Redeemed		—			—			(50	)		(4,147	)
Increase (Decrease) in Net Assets From Institutional Class Share Transactions		—			—			1,370			(1,824	)
								��
Class N:
Shares Issued		231			1,527			53			2,493
Shares Issued in Lieu of Dividends and Distributions		59			67			11			66
Shares Redeemed		(213	)		(349	)		(181	)		(5,847	)
Increase (Decrease) in Net Assets from Class N Share Transactions		77			1,245			(117	)		(3,288	)
Servicing Class:
Shares Issued		10,037			26,410			—			—
Shares Issued in Lieu of Dividends and Distributions		508			691			—			—
Shares Redeemed		(10,349	)		(14,210	)		—			—
Increase (Decrease) in Net Assets from Servicing Class Share Transactions		196			12,891			—			—
Net Increase (Decrease) in Net Assets From Share Transactions		273			14,136			1,253			(5,112	)
Total Increase (Decrease) in Net Assets		482			14,261			778			(5,183	)
NET ASSETS:
Beginning of Period		58,027			43,766			44,391			49,574
End of Period	$	58,509		$	58,027		$	45,169		$	44,391
Undistributed (Distribution in Excess of) Net Investment Income	$	2		$	—		$	(22	)	$	—

(1) See Note 8 for shares issued and redeemed.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 72

High Yield Bond Fund (000)						Multi-Asset Fund (000)						Diversified Equity Fund (000)
2012			2011			2012			2011			2012			2011
$	4,634		$	6,045		$	528		$	675		$	117		$	232
	766			1,560			(1,083	)		1,914			2,680			4,639
	5,996			(5,656	)		3,531			(4,662	)		8,040			(6,927	)
	11,396			1,949			2,976			(2,073	)		10,837			(2,056	)
	(81	)		—			(69	)		—			(112	)		(224	)
	(1,211	)		(2,228	)		(276	)		(392	)		(7	)		(7	)
	(3,297	)		(3,817	)		(169	)		(270	)		—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	(4,589	)		(6,045	)		(514	)		(662	)		(119	)		(231	)
	29,025			—			13,624			—			329			3,691
	65			—			69			—			101			134
	(1,495	)		—			(12	)		—			(15,824	)		(8,556	)
	27,595			—			13,681			—			(15,394	)		(4,731	)
	5,267			8,503			1,744			10,429			24			526
	755			1,349			175			228			7			4
	(3,012	)		(3,817	)		(3,014	)		(4,754	)		(1,168	)		(2,060	)
	3,010			6,035			(1,095	)		5,903			(1,137	)		(1,530	)
	42,466			50,134			3,945			10,915			—			—
	1,223			1,254			147			225			—			—
	(50,408	)		(16,681	)		(15,830	)		(2,124	)		—			—
	(6,719	)		34,707			(11,738	)		9,016			—			—
	23,886			40,742			848			14,919			(16,531	)		(6,261	)
	30,693			36,646			3,310			12,184			(5,813	)		(8,548	)
	94,501			57,855			45,461			33,277			54,871			63,419
$	125,194		$	94,501		$	48,771		$	45,461		$	49,058		$	54,871
$	45		$	—		$	29		$	15		$	(2	)	$	—

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 73

statements of changes in net assets

For the six months ended March 31, 2012 (Unaudited) and the year ended September 30, 2011

	Large Cap Value Equity Fund (000)						Large Cap Growth Equity Fund (000)
	2012			2011			2012			2011
OPERATIONS:
Net Investment Income	$	851		$	1,480		$	78		$	47
Net Realized Gain (Loss) from Security Transactions		687			4,640			905			3,717
Net Change in Unrealized Appreciation (Depreciation) on Investments		21,021			(8,528	)		9,497			(5,911	)
Increase (Decrease) in Net Assets Resulting from Operations		22,559			(2,408	)		10,480			(2,147	)
DIVIDENDS FROM:
Net Investment Income:
Institutional Class		(119	)		—			—			—
Class N		(61	)		(114	)		—			(6	)
Servicing Class		(673	)		(1,364	)		(79	)		(56	)
Total Dividends		(853	)		(1,478	)		(79	)		(62	)
CAPITAL SHARE TRANSACTIONS:(1)
Institutional Class:
Shares Issued		30,712			—			—			—
Shares Issued in Lieu of Dividends and Distributions		119			—			—			—
Shares Redeemed		(622	)		—			—			—
Increase in Net Assets From Institutional Class Share Transactions		30,209			—			—			—
Class N:
Shares Issued		352			615			505			1,461
Shares Issued in Lieu of Dividends and Distributions		44			76			—			4
Shares Redeemed		(1,067	)		(1,463	)		(641	)		(1,072	)
Increase (Decrease) in Net Assets From Class N Share Transactions		(671	)		(772	)		(136	)		393
Servicing Class:
Shares Issued		13,050			24,244			4,246			18,340
Shares Issued in Lieu of Dividends and Distributions		494			1,032			31			22
Shares Redeemed		(41,399	)		(26,063	)		(11,013	)		(13,444	)
Increase (Decrease) in Net Assets From Servicing Class Share Transactions		(27,855	)		(787	)		(6,736	)		4,918
Net Increase (Decrease) in Net Assets from Share Transactions		1,683			(1,559	)		(6,872	)		5,311
Total Increase (Decrease) in Net Assets		23,389			(5,445	)		3,529			3,102
NET ASSETS:
Beginning of Period		99,369			104,814			43,690			40,588
End of Period	$	122,758		$	99,369		$	47,219		$	43,690
Distribution in Excess of Net Investment Income	$	(2	)	$	—		$	(1	)	$	—

(1) See Note 8 for shares issued and redeemed.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 74

Socially Responsible Equity Fund (000)
2012			2011
$	603		$	901
	662			(1,057	)
	13,807			(2,820	)
	15,072			(2,976	)
	(522	)		(867	)
	(83	)		(35	)
	—			—
	(605	)		(902	)
	7,346			16,039
	522			867
	(4,977	)		(10,863	)
	2,891			6,043
	20,390			1,850
	83			34
	(458	)		(894	)
	20,015			990
	—			—
	—			—
	—			—
	—			—
	22,906			7,033
	37,373			3,155
	65,325			62,170
$	102,698		$	65,325
$	(2	)	$	—

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 75

financial highlights

For a Share Outstanding Throughout Each Period

For the six months ended March 31, 2012 (Unaudited) and the year or period ended September 30,

	Net Asset Value Beginning of Period		Net Investment Income†			Dividends from Net Investment Income			Net Asset Value End of Period		Total Return‡			Net Assets End of Period (000)		Ratio of Expenses to Average Net Assets(1)(2)			Ratio of Net Investment Income to Average Net Assets(1)			Ratio of Expenses to Average Net Assets (Excluding Waivers & Recovered Fees)(1)
Government Money Market Fund
Institutional Class (commenced operations on April 3, 2000)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	102,623		0.11	%		0.01	%		0.60	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.02			51,705		0.14			0.03			0.61
2010		1.00		0.000	^		(0.000	)^		1.00		0.04			81,050		0.17			0.04			0.62
2009		1.00		0.003			(0.003	)		1.00		0.27			123,863		0.36			0.26			0.65
2008		1.00		0.027			(0.027	)		1.00		2.72			100,674		0.59			2.62			0.59
2007		1.00		0.047			(0.047	)		1.00		4.77			47,858		0.60			4.67			0.61
Class N (commenced operations on June 21, 1999)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	2,683,416		0.11	%		0.01	%		1.10	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.02			2,926,120		0.14			0.02			1.11
2010		1.00		0.000	^		(0.000	)^		1.00		0.02			2,598,035		0.19			0.02			1.12
2009		1.00		0.002			(0.002	)		1.00		0.19			2,549,147		0.47			0.21			1.13
2008		1.00		0.025			(0.025	)		1.00		2.49			3,006,935		0.81			2.40			1.09
2007		1.00		0.044			(0.044	)		1.00		4.54			2,291,138		0.82			4.45			1.11
Class S (commenced operations on October 6, 1999)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	277,506		0.11	%		0.01	%		1.10	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.01			291,194		0.15			0.01			1.11
2010		1.00		0.000	^		(0.000	)^		1.00		0.01			348,698		0.20			0.01			1.12
2009		1.00		0.001			(0.001	)		1.00		0.12			298,842		0.54			0.13			1.13
2008		1.00		0.023			(0.023	)		1.00		2.29			408,747		1.02			2.23			1.09
2007		1.00		0.042			(0.042	)		1.00		4.33			321,061		1.02			4.24			1.11
Prime Money Market Fund
Institutional Class (commenced operations on March 23, 1998)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	513,612		0.20	%		0.02	%		0.60	%
2011		1.00		0.001			(0.001	)		1.00		0.06			630,250		0.22			0.05			0.60
2010		1.00		0.001			(0.001	)*		1.00		0.09			489,980		0.24			0.08			0.60
2009		1.00		0.005			(0.005	)		1.00		0.46			543,326		0.44			0.46			0.65
2008		1.00		0.030			(0.030	)		1.00		3.01			532,931		0.58			2.90			0.58
2007		1.00		0.047			(0.047	)		1.00		4.85			438,639		0.59			4.74			0.60
Class N (commenced operations on October 18, 1999)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	394,070		0.21	%		0.01	%		1.10	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.03			450,282		0.25			0.03			1.10
2010		1.00		0.000	^		(0.000	)*^		1.00		0.06			432,235		0.28			0.04			1.10
2009		1.00		0.003			(0.003	)		1.00		0.33			656,769		0.61			0.39			1.15
2008		1.00		0.027			(0.027	)		1.00		2.78			1,123,900		0.80			2.65			1.08
2007		1.00		0.045			(0.045	)		1.00		4.62			870,537		0.81			4.52			1.10
Class S (commenced operations on October 26, 1999)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	233,688		0.21	%		0.01	%		1.10	%
2011		1.00		0.000	^		0.000	^		1.00		0.02			265,116		0.27			0.01			1.10
2010		1.00		0.000	^		(0.000	)*^		1.00		0.04			352,575		0.30			0.02			1.10
2009		1.00		0.002			(0.002	)		1.00		0.23			372,762		0.73			0.28			1.15
2008		1.00		0.025			(0.025	)		1.00		2.57			633,815		1.00			2.54			1.08
2007		1.00		0.043			(0.043	)		1.00		4.41			620,195		1.01			4.32			1.10
California Tax Exempt Money Market Fund
Institutional Class (commenced operations on April 3, 2000)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	125,470		0.09	%		0.01	%		0.62	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.02			169,932		0.16			0.02			0.62
2010		1.00		0.000	^		(0.000	)*^		1.00		0.04			140,238		0.19			0.04			0.63
2009		1.00		0.003			(0.003	)		1.00		0.33			141,579		0.30			0.31			0.65
2008		1.00		0.018			(0.018	)		1.00		1.80			157,427		0.55			1.69			0.61
2007		1.00		0.030			(0.030	)		1.00		3.01			89,237		0.55			2.97			0.62
Class N (commenced operations on June 21, 1999)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	685,393		0.09	%		0.01	%		1.12	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.02			628,163		0.17			0.02			1.12
2010		1.00		0.000	^		(0.000	)*^		1.00		0.03			638,839		0.20			0.02			1.12
2009		1.00		0.002			(0.002	)		1.00		0.23			704,840		0.41			0.25			1.16
2008		1.00		0.016			(0.016	)		1.00		1.57			880,794		0.78			1.47			1.11
2007		1.00		0.027			(0.027	)		1.00		2.78			695,318		0.78			2.73			1.12
Class S (commenced operations on November 12, 1999)
2012**	$	1.00	$	0.000	^	$	(0.000	)^	$	1.00		0.01	%	$	69,246		0.09	%		0.01	%		1.12	%
2011		1.00		0.000	^		(0.000	)^		1.00		0.01			78,221		0.17			0.01			1.12
2010		1.00		0.000	^		(0.000	)*^		1.00		0.01			48,265		0.22			0.01			1.12
2009		1.00		0.002			(0.002	)		1.00		0.17			74,396		0.54			0.26			1.16
2008		1.00		0.014			(0.014	)		1.00		1.37			141,757		0.98			1.40			1.11
2007		1.00		0.025			(0.025	)		1.00		2.57			178,918		0.98			2.55			1.12

** For the six months ended March 31, 2012.

† Per share calculations are based on Average Shares outstanding throughout the period.

‡ Returns are for the period indicated and have not been annualized. Fee waivers are in effect; if they had not been in effect, performance would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

^ Amount represents less than $0.001.

* Includes a realized capital gain distribution of less than $0.001.

(1) Annualized for periods less than one year.

(2) Ratio includes waivers and previously waived investment advisory fees recovered. The impact of the recovered fees may cause a higher net expense ratio.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 76

	Net Asset Value Beginning of Period		Net Investment Income†		Net Realized and Unrealized Gains (Losses) on Securities†			Dividends from Net Investment Income			Distri- butions from Realized Capital Gains			Net Asset Value End of Period		Total Return‡			Net Assets End of Period (000)		Ratio of Expenses to Average Net Assets(1)(2)			Ratio of Net Investment Income to Average Net Assets(1)			Ratio of Expenses to Average Net Assets (Excluding Waivers & Recovered Fees)(1)			Portfolio Turnover Rate
Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on October 22,1988)
2012**	$	11.15	$	0.06	$	0.04		$	(0.06	)	$	—		$	11.19		0.94	%	$	33,101		0.69	%		1.15	%		0.69	%		15	%
2011		11.21		0.16		(0.06	)		(0.16	)		—			11.15		0.92			31,743		0.66			1.46			0.67			50
2010		11.06		0.20		0.16			(0.21	)		—			11.21		3.28			33,279		0.73			1.82			0.71			118
2009		10.49		0.30		0.57			(0.30	)		—			11.06		8.44			37,255		0.75			2.66			0.76			98
2008		10.59		0.37		(0.10	)		(0.37	)		—			10.49		2.54			92,681		0.76			3.44			0.67			79
2007		10.56		0.45		0.03			(0.45	)		—			10.59		4.63			44,365		0.76			4.25			0.77			76
Class N (commenced operations on October 22, 2004)
2012**	$	11.15	$	0.05	$	0.04		$	(0.05	)	$	—		$	11.19		0.81	%	$	5,935		0.94	%		0.90	%		1.19	%		15	%
2011		11.22		0.14		(0.08	)		(0.13	)		—			11.15		0.58			6,402		0.91			1.21			1.17			50
2010		11.07		0.16		0.17			(0.18	)		—			11.22		3.04			9,262		0.98			1.48			1.22			118
2009		10.51		0.27		0.57			(0.28	)		—			11.07		8.07			1,471		1.00			2.29			1.24			98
2008		10.61		0.35		(0.10	)		(0.35	)		—			10.51		2.29			432		1.00			3.24			0.92			79
2007		10.57		0.42		0.04			(0.42	)		—			10.61		4.47			310		1.00			3.99			1.02			76
Government Bond Fund
Institutional Class (commenced operations on February 1, 2012)
2012**	$	10.75	$	0.02	$	(0.07	)	$	(0.03	)	$	—		$	10.67		(0.48	)%	$	48,471		0.57	%		1.18	%		0.55	%		27	%
Class N (commenced operations on April 13, 2000)
2012**	$	10.77	$	0.04	$	(0.05	)	$	(0.06	)	$	(0.01	)	$	10.69		(0.07	)%	$	2,887		1.01	%		0.71	%		1.03	%		27	%
2011		10.68		0.12		0.15			(0.18	)		—			10.77		2.60			2,940		0.95			1.17			1.03			86
2010		10.60		0.16		0.16			(0.24	)		—			10.68		3.10			3,251		0.95			1.57			1.03			93
2009		10.42		0.32		0.18			(0.32	)		—			10.60		4.91			3,109		0.95			3.04			1.02			85
2008		10.35		0.40		0.07			(0.40	)		—			10.42		4.59			2,761		0.95			3.80			1.02			36
2007		10.30		0.44		0.04			(0.43	)		—			10.35		4.77			2,632		0.95			4.25			1.02			83
Servicing Class (commenced operations on January 14, 2000)^
2012**	$	10.75	$	0.05	$	(0.04	)	$	(0.08	)	$	(0.01	)	$	10.67		0.06	%	$	122,376		0.75	%		0.96	%		0.78	%		27	%
2011		10.66		0.15		0.15			(0.21	)		—			10.75		2.86			175,866		0.70			1.40			0.78			86
2010		10.58		0.19		0.16			(0.27	)		—			10.66		3.37			155,376		0.70			1.81			0.78			93
2009		10.40		0.35		0.18			(0.35	)		—			10.58		5.18			71,966		0.70			3.29			0.77			85
2008		10.33		0.42		0.08			(0.43	)		—			10.40		4.87			66,097		0.70			4.05			0.77			36
2007		10.28		0.46		0.05			(0.46	)		—			10.33		5.04			52,606		0.70			4.50			0.77			83
Corporate Bond Fund
Class N (commenced operations on April 13, 2000)
2012**	$	10.59	$	0.11	$	0.22		$	(0.11	)	$	(0.05	)	$	10.76		3.15	%	$	2,482		1.00	%		2.15	%		1.01	%		20	%
2011		10.89		0.29		(0.30	)		(0.29	)		—			10.59		(0.10	)		2,481		1.00			2.69			1.00			40
2010		10.57		0.33		0.32			(0.33	)		—			10.89		6.23			2,384		0.99			3.05			1.00			28
2009		9.77		0.36		0.81			(0.37	)		—			10.57		12.19			995		0.99			3.59			1.00			30
2008		10.18		0.41		(0.41	)		(0.41	)		—			9.77		(0.11	)		608		0.98			4.02			0.99			12
2007		10.17		0.42		0.01			(0.42	)		—			10.18		4.30			1,043		0.99			4.13			1.00			30
Servicing Class (commenced operations on January 14, 2000)^
2012**	$	10.58	$	0.13	$	0.22		$	(0.13	)	$	(0.05	)	$	10.75		3.28	%	$	118,337		0.75	%		2.39	%		0.76	%		20	%
2011		10.88		0.32		(0.30	)		(0.32	)		—			10.58		0.15			111,563		0.75			2.94			0.75			40
2010		10.56		0.35		0.32			(0.35	)		—			10.88		6.50			105,571		0.74			3.32			0.75			28
2009		9.76		0.39		0.80			(0.39	)		—			10.56		12.48			88,897		0.74			3.88			0.75			30
2008		10.18		0.43		(0.41	)		(0.44	)		—			9.76		0.04			69,709		0.73			4.25			0.74			12
2007		10.17		0.45		—			(0.44	)		—			10.18		4.57			62,210		0.74			4.39			0.75			30
California Tax Exempt Bond Fund
Class N (commenced operations on April 13, 2000)
2012**	$	10.70	$	0.12	$	0.11		$	(0.12	)	$	(0.07	)	$	10.74		2.16	%	$	4,655		0.81	%		2.21	%		0.87	%		16	%
2011		10.73		0.26		0.01			(0.26	)		(0.04	)		10.70		2.65			4,563		0.75			2.46			0.87			26
2010		10.60		0.29		0.13			(0.29	)		—			10.73		4.06			3,309		0.75			2.75			0.87			28
2009		10.09		0.30		0.51			(0.30	)		—			10.60		8.15			1,902		0.75			2.92			0.87			50
2008		10.27		0.30		(0.18	)		(0.30	)		—			10.09		1.12			1,049		0.75			2.87			0.86			55
2007		10.27		0.28		—			(0.28	)		—			10.27		2.82			922		0.75			2.78			0.87			43
Servicing Class (commenced operations on January 14, 2000)^
2012**	$	10.67	$	0.13	$	0.11		$	(0.13	)	$	(0.07	)	$	10.71		2.29	%	$	53,854		0.56	%		2.46	%		0.62	%		16	%
2011		10.70		0.29		0.01			(0.29	)		(0.04	)		10.67		2.92			53,464		0.50			2.73			0.62			26
2010		10.57		0.32		0.13			(0.32	)		—			10.70		4.34			40,457		0.50			3.03			0.62			28
2009		10.06		0.33		0.51			(0.33	)		—			10.57		8.45			38,581		0.50			3.18			0.61			50
2008		10.24		0.32		(0.18	)		(0.32	)		—			10.06		1.38			34,262		0.50			3.13			0.61			55
2007		10.25		0.31		(0.01	)		(0.31	)		—			10.24		2.98			33,802		0.50			3.04			0.62			43

** For the six months ended or period ended March 31, 2012.

† Per share calculations are based on Average Shares outstanding throughout the period.

‡ Returns are for the period indicated and have not been annualized. Fee waivers are in effect; if they had not been in effect, performance would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

^ Effective December 19, 2011, Institutional Class Shares were redesignated as Servicing Class Shares. This share class name change had no impact on the Fund’s operations or investment policy.

(1) Annualized for periods less than one year.

(2) Ratio includes waivers and previously waived investment advisory fees recovered. The impact of the recovered fees may cause a higher net expense ratio.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 77

financial highlights

For a Share Outstanding Throughout Each Period

For the six months ended March 31, 2012 (Unaudited) and the year or period ended September 30,

	Net Asset Value Beginning of Period		Net Investment Income†		Net Realized and Unrealized Gains (Losses) on Securities†			Dividends from Net Investment Income			Distri- butions from Realized Capital Gains			Net Asset Value End of Period		Total Return‡			Net Assets End of Period (000)		Ratio of Expenses to Average Net Assets(1)(2)			Ratio of Net Investment Income to Average Net Assets(1)			Ratio of Expenses to Average Net Assets (Excluding Waivers & Recovered Fees)(1)			Portfolio Turnover Rate
Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2012**	$	10.91	$	0.13	$	0.02		$	(0.13	)	$	(0.14	)	$	10.79		1.45	%	$	44,793		0.68	%		2.36	%		0.68	%		42	%
2011		10.91		0.29		0.07			(0.30	)		(0.06	)		10.91		3.36			43,894		0.66			2.70			0.67			43
2010		10.46		0.36		0.50			(0.36	)		(0.05	)		10.91		8.48			45,756		0.70			3.40			0.71			63
2009		9.90		0.40		0.56			(0.40	)		—			10.46		9.95			39,495		0.75			3.97			0.75			56
2008		10.16		0.44		(0.26	)		(0.44	)		—			9.90		1.76			42,579		0.64			4.32			0.64			34
2007		10.16		0.45		—			(0.45	)		—			10.16		4.48			42,096		0.79			4.48			0.73			55
Class N (commenced operations on May 11, 2004)
2012**	$	10.90	$	0.11	$	0.04		$	(0.12	)	$	(0.14	)	$	10.79		1.42	%	$	376		0.93	%		2.12	%		1.18	%		42	%
2011		10.90		0.26		0.07			(0.27	)		(0.06	)		10.90		3.10			497		0.91			2.46			1.17			43
2010		10.46		0.33		0.50			(0.34	)		(0.05	)		10.90		8.12			3,818		0.95			3.08			1.21			63
2009		9.89		0.39		0.56			(0.38	)		—			10.46		9.79			1,086		1.00			3.70			1.26			56
2008		10.16		0.42		(0.27	)		(0.42	)		—			9.89		1.42			687		0.89			4.02			0.89			34
2007		10.16		0.42		—			(0.42	)		—			10.16		4.23			235		1.04			4.23			0.99			55
High Yield Bond Fund
Institutional Class (commenced operations on February 2, 2012)
2012**	$	8.39	$	0.13	$	0.07		$	(0.11	)	$	—		$	8.48		2.41	%	$	27,642		0.92	%		8.79	%		0.92	%		29	%
Class N (commenced operations on January 14, 2000)
2012**	$	7.98	$	0.32	$	0.49		$	(0.32	)	$	—		$	8.47		10.29	%	$	33,493		1.36	%		7.82	%		1.39	%		29	%
2011		8.31		0.69		(0.33	)		(0.69	)		—			7.98		4.14			28,672		1.30			8.12			1.40			56
2010		7.56		0.70		0.74			(0.69	)		—			8.31		19.81			24,010		1.30			8.68			1.40			87
2009		7.40		0.60		0.18			(0.62	)		—			7.56		12.61			19,637		1.30			9.43			1.40			59
2008		8.91		0.62		(1.47	)		(0.66	)		—			7.40		(10.10	)		17,521		1.30			7.43			1.39			20
2007		8.96		0.68		(0.07	)		(0.66	)		—			8.91		6.95			20,121		1.30			7.44			1.40			26
Servicing Class (commenced operations on January 14, 2000)^^
2012**	$	7.98	$	0.33	$	0.49		$	(0.33	)	$	—		$	8.47		10.45	%	$	64,059		1.06	%		8.08	%		1.09	%		29	%
2011		8.31		0.72		(0.33	)		(0.72	)		—			7.98		4.45			65,829		1.00			8.43			1.10			56
2010		7.56		0.72		0.75			(0.72	)		—			8.31		20.17			33,845		1.00			8.89			1.10			87
2009		7.40		0.62		0.18			(0.64	)		—			7.56		12.94			16,355		1.00			9.75			1.10			59
2008		8.91		0.64		(1.47	)		(0.68	)		—			7.40		(9.83	)		13,926		1.00			7.72			1.09			20
2007		8.96		0.70		(0.06	)		(0.69	)		—			8.91		7.27			17,137		1.00			7.73			1.10			26
Multi-Asset Fund
Institutional Class (commenced operations on March 22, 2012)
2012**	$	10.45	$	0.02	$	(0.01	)	$	(0.05	)	$	—		$	10.41		0.13	%	$	13,635		0.70	%		6.61	%		0.71	%		35	%
Class N (commenced operations on October 1, 2007)
2012**	$	9.88	$	0.11	$	0.53		$	(0.11	)	$	—		$	10.41		6.48	%	$	26,694		1.09	%		2.15	%		1.10	%		35	%
2011		10.36		0.17		(0.48	)		(0.17	)		—			9.88		(3.11	)		26,377		1.09			1.57			1.10			67
2010		9.86		0.17		0.50			(0.17	)		—			10.36		6.89			22,019		1.09			1.69			1.10			76
2009		9.69		0.13		0.18			(0.14	)		—			9.86		3.29			16,837		1.09			1.46			1.10			94
2008		11.00		0.23		(1.33	)		(0.21	)		—			9.69		(10.12	)		16,708		1.53			2.22			1.54			141
Servicing Class (commenced operations on October 1, 2007)^^
2012**	$	9.88	$	0.12	$	0.54		$	(0.11	)	$	—		$	10.43		6.73	%	$	8,442		0.84	%		2.29	%		0.84	%		35	%
2011		10.37		0.19		(0.48	)		(0.20	)		—			9.88		(2.97	)		19,084		0.84			1.76			0.85			67
2010		9.87		0.20		0.50			(0.20	)		—			10.37		7.15			11,258		0.84			1.96			0.85			76
2009		9.70		0.15		0.18			(0.16	)		—			9.87		3.54			8,423		0.83			1.71			0.84			94
2008		11.00		0.25		(1.32	)		(0.23	)		—			9.70		(9.84	)		10,741		1.29			2.37			1.30			141
Diversified Equity Fund
Institutional Class (commenced operations on October 20, 1988)
2012**	$	11.33	$	0.03	$	2.58		$	(0.03	)	$	—		$	13.91		23.10	%	$	44,327		0.93	%		0.47	%		0.93	%		52	%
2011		11.88		0.05		(0.55	)		(0.05	)		—			11.33		(4.27	)		50,029		0.89			0.37			0.90			112
2010		11.19		0.06		0.69			(0.06	)*		—			11.88		6.69			56,809		0.94			0.51			0.95			105
2009		12.19		0.11		(1.00	)		(0.11	)^		—			11.19		(7.08	)		50,425		0.98			1.15			0.99			93
2008		18.48		0.14		(3.84	)		(0.14	)		(2.45	)		12.19		(22.73	)		74,997		0.97			0.98			0.94			143
2007		18.17		0.18		1.89			(0.18	)		(1.58	)		18.48		11.93			102,232		0.99			0.98			1.02			116
Class N (commenced operations on December 30, 2002)
2012**	$	11.37	$	0.01	$	2.59		$	(0.02	)	$	—		$	13.95		22.86	%	$	4,731		1.18	%		0.20	%		1.43	%		52	%
2011		11.92		0.02		(0.56	)		(0.01	)		—			11.37		(4.50	)		4,842		1.14			0.11			1.40			112
2010		11.22		0.03		0.70			(0.03	)		—			11.92		6.50			6,610		1.19			0.26			1.45			105
2009		12.22		0.09		(1.00	)		(0.09	)		—			11.22		(7.30	)		5,560		1.23			0.91			1.49			93
2008		18.52		0.11		(3.85	)		(0.11	)		(2.45	)		12.22		(22.93	)		7,102		1.22			0.74			1.19			143
2007		18.21		0.13		1.89			(0.13	)		(1.58	)		18.52		11.62			10,400		1.27			0.73			1.24			116

** For the six months ended or period ended March 31, 2012.

† Per share calculations are based on Average Shares outstanding throughout the period.

‡ Returns are for the period indicated and have not been annualized. Fee waivers are in effect; if they had not been in effect, performance would have been lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

* Includes return of capital less than $0.01 per share.

^ Includes return of capital of $0.01 per share.

^^ Effective December 19, 2011, Institutional Class Shares were redesignated as Servicing Class Shares. This share class name change had no impact on the Fund’s operations or investment policy.

(1) Annualized for periods less than one year.

(2) Ratio includes waivers and previously waived investment advisory fees recovered. The impact of the recovered fees may cause a higher net expense ratio.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 78

	Net Asset Value Beginning of Period		Net Investment Income (Loss)†			Net Realized and Unrealized Gains (Losses) on Securities†			Dividends from Net Investment Income			Distri- butions from Realized Capital Gains			Net Asset Value End of Period		Total Return‡			Net Assets End of Period (000)		Ratio of Expenses to Average Net Assets (1)(2)			Ratio of Net Investment Income (Loss) to Average Net Assets(1)			Ratio of Expenses to Average Net Assets (Excluding Waivers & Recovered Fees)(1)			Portfolio Turnover Rate
Large Cap Value Equity Fund
Institutional Class (commenced operations on February 1, 2012)
2012**	$	8.59	$	0.02		$	0.44		$	(0.04	)	$	—		$	9.01		5.30	%	$	30,600		0.75	%		1.59	%		0.76	%		14	%
Class N (commenced operations on April 13, 2000)
2012**	$	7.40	$	0.05		$	1.59		$	(0.05	)	$	—		$	8.99		22.24	%	$	10,270		1.21	%		1.27	%		1.22	%		14	%
2011		7.67		0.09			(0.27	)		(0.09	)		—			7.40		(2.45	)		9,064		1.21			1.09			1.22			43
2010		7.27		0.08			0.40			(0.08	)		—			7.67		6.59			10,089		1.21			1.03			1.22			26
2009		8.24		0.12			(0.98	)		(0.11	)		—			7.27		(10.27	)		8,960		1.21			1.89			1.22			18
2008		11.19		0.13			(2.46	)		(0.13	)		(0.49	)		8.24		(21.72	)		11,712		1.20			1.38			1.21			36
2007		10.35		0.16			1.37			(0.16	)		(0.53	)		11.19		15.24			17,190		1.21			1.47			1.22			24
Servicing Class (commenced operations on January 14, 2000)^^
2012**	$	7.41	$	0.06		$	1.60		$	(0.06	)	$	—		$	9.01		22.48	%	$	81,888		0.96	%		1.52	%		0.97	%		14	%
2011		7.68		0.11			(0.27	)		(0.11	)		—			7.41		(2.20	)		90,305		0.96			1.34			0.97			43
2010		7.28		0.10			0.40			(0.10	)		—			7.68		6.85			94,725		0.96			1.29			0.97			26
2009		8.25		0.13			(0.98	)		(0.12	)		—			7.28		(10.03	)		81,308		0.96			2.11			0.97			18
2008		11.21		0.16			(2.48	)		(0.15	)		(0.49	)		8.25		(21.57	)		88,361		0.95			1.64			0.96			36
2007		10.36		0.19			1.38			(0.19	)		(0.53	)		11.21		15.60			110,024		0.96			1.73			0.97			24
Large Cap Growth Equity Fund
Class N (commenced operations on March 28, 2000)
2012**	$	7.35	$	0.01		$	1.88		$	—		$	—		$	9.24		25.71	%	$	11,540		1.24	%		0.13	%		1.25	%		21	%
2011		7.59		(0.01	)		(0.23	)		(0.00	)^		—			7.35		(3.11	)		9,303		1.24			(0.10	)		1.25			82
2010		7.00		0.02			0.59			(0.02	)		—			7.59		8.72			9,271		1.24			0.27			1.25			61
2009		7.31		0.03			(0.31	)		(0.03	)		—			7.00		(3.77	)		9,120		1.24			0.45			1.25			12
2008		8.77		0.01			(1.46	)		(0.01	)		—			7.31		(16.55	)		11,341		1.23			0.11			1.24			26
2007		7.68		0.01			1.10			(0.02	)		—			8.77		14.51			15,063		1.24			0.28			1.25			30
Servicing Class (commenced operations on January 14, 2000)^^
2012**	$	7.44	$	0.02		$	1.90		$	(0.02	)	$	—		$	9.34		25.82	%	$	35,679		0.99	%		0.39	%		1.00	%		21	%
2011		7.67		0.01			(0.23	)		(0.01	)		—			7.44		(2.86	)		34,387		0.99			0.14			1.00			82
2010		7.08		0.04			0.59			(0.04	)		—			7.67		8.89			31,317		0.99			0.52			1.00			61
2009		7.38		0.04			(0.30	)		(0.04	)		—			7.08		(3.36	)		28,050		0.99			0.70			1.00			12
2008		8.86		0.03			(1.48	)		(0.03	)		—			7.38		(16.40	)		31,074		0.98			0.35			0.99			26
2007		7.75		0.05			1.10			(0.04	)		—			8.86		14.91			45,784		0.99			0.52			1.00			30
Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2012**	$	8.38	$	0.07		$	1.75		$	(0.07	)	$	—		$	10.13		21.74	%	$	78,259		0.90	%		1.50	%		0.90	%		14	%
2011		8.81		0.12			(0.43	)		(0.12	)		—			8.38		(3.67	)		62,193		0.88			1.27			0.89			22
2010		8.20		0.09			0.61			(0.09	)*		—			8.81		8.51			59,746		0.95			1.01			0.96			36
2009		9.51		0.12			(1.30	)		(0.13	)		—			8.20		(12.11	)		52,406		0.97			1.74			0.98			48
2008		12.12		0.16			(2.04	)		(0.15	)		(0.58	)		9.51		(16.24	)		53,256		0.99			1.51			0.90			41
2007		10.91		0.14			1.36			(0.14	)		(0.15	)		12.12		13.89			56,490		0.94			1.19			1.00			29
Class N (commenced operations on August 12, 2005)
2012**	$	8.37	$	0.07		$	1.73		$	(0.06	)	$	—		$	10.11		21.53	%	$	24,439		1.15	%		1.49	%		1.40	%		14	%
2011		8.79		0.10			(0.42	)		(0.10	)		—			8.37		(3.80	)		3,132		1.13			1.05			1.39			22
2010		8.19		0.07			0.60			(0.07	)		—			8.79		8.15			2,424		1.20			0.81			1.46			36
2009		9.50		0.11			(1.31	)		(0.11	)		—			8.19		(12.34	)		1,101		1.22			1.49			1.48			48
2008		12.11		0.14			(2.05	)		(0.12	)		(0.58	)		9.50		(16.46	)		885		1.24			1.26			1.15			41
2007		10.90		0.12			1.36			(0.11	)		(0.16	)		12.11		13.64			741		1.19			0.94			1.25			29

** For the six months ended or period ended March 31, 2012.

† Per share calculations are based on Average Shares outstanding throughout the period.

‡ Returns are for the period indicated and have not been annualized. Fee waivers are in effect; if they had not been in effect, performance would have been lower. Total return figures do not include applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

* Includes return of capital less than $0.01 per share.

^ Amount represents less than $0.01 per share.

^^ Effective December 19, 2011, Institutional Class Shares were redesignated as Servicing Class Shares. This share class name change had no impact on the Fund’s operations or investment policy.

(1) Annualized for periods less than one year.

(2) Ratio includes waivers and previously waived investment advisory fees recovered. The impact of the recovered fees may cause a higher net expense ratio.

Amounts designated as “—” are either $0 or have been rounded to $0.

See accompanying notes to financial statements.

CNI CHARTER FUNDS | PAGE 79

notes to financial statements

March 31, 2012 (Unaudited)

1.  ORGANIZATION:

CNI Charter Funds, a Delaware statutory trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company currently offering the following 14 series (each a “Fund” and collectively, the “Funds”): Government Money Market Fund, Prime Money Market Fund, California Tax Exempt Money Market Fund (collectively, the “Money Market Funds”); Limited Maturity Fixed Income Fund, Government Bond Fund, Corporate Bond Fund, California Tax Exempt Bond Fund, Full Maturity Fixed Income Fund, High Yield Bond Fund (collectively, the “Fixed Income Funds”); Multi-Asset Fund; and Diversified Equity Fund, Large Cap Value Equity Fund, Large Cap Growth Equity Fund and Socially Responsible Equity Fund (collectively, the “Equity Funds”). The Money Market Funds are registered to offer Institutional, Class N and Class S Shares. The Fixed Income Funds, Equity Funds and Multi-Asset Fund offer Institutional, Class N and/or Servicing Class Shares.

City National Asset Management, Inc. (“CNAM”) serves as the investment manager of the Funds.

The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. Each Fund is diversified with the exception of the California Tax Exempt Bond Fund, which is non-diversified. The Funds’ prospectus provides descriptions of each Fund’s investment objectives, policies and strategies.

2.  SIGNIFICANT ACCOUNTING POLICIES:

The following is a summary of significant accounting policies followed by the Funds.

Use of Estimates– The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Security Valuation – Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ) are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded, or, if there is no such reported sale, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price is used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of 60 days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Investments in registered open-end investment companies are priced at their daily net asset values. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.

Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Trust’s Board of Trustees. The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Trust’s Board of Trustees. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; for international securities, market events occur after the close of the foreign markets that make closing prices not representative of fair value; or the security’s primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.

In accordance with GAAP, the objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

CNI CHARTER FUNDS | PAGE 80

• Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;

• Level 2 — Quoted prices in inactive markets, or inputs that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and

• Level 3 — Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.

In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS.” ASU No. 2011-04 clarifies the application of existing fair value measurement and disclosure requirements, changes certain principles related to measuring fair value, and requires additional disclosures about fair value measurements. ASU No. 2011-04 is effective for periods beginning after December 15, 2011. Adoption of ASU No. 2011-04 will not materially affect the Company’s financial condition or results of operations.

For the six months ended March 31, 2012, there have been no significant changes to the Funds’ fair valuation methodologies.

Security Transactions and Related Income – Security transactions are accounted for on the trade date of the security purchase or sale. Costs used in determining net realized capital gains and losses on the sale of securities are those of the specific securities sold. Interest income is recognized on an accrual basis and dividend income is recognized on the ex-dividend date. Purchase discounts and premiums on securities held by the Funds are accreted and amortized to maturity using the scientific method, which approximates the effective interest method over the holding period of a security, except for the Money Market Funds, which use a straight line basis which is not materially different from the scientific method.

Repurchase Agreements – Securities pledged as collateral for repurchase agreements are held by each Fund’s custodian bank, U.S. Bank, N.A., until maturity of the repurchase agreements. Provisions of the agreements and procedures adopted by the investment adviser require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default by the counterparty. The Funds also invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained by the broker’s custodian bank in a segregated account until maturity of the repurchase agreement. Provisions of the agreements require that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default. If the counterparty defaults and the value of the collateral declines or if the counterparty enters into an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited.

TBA Transactions – The Funds may engage in “to be announced” (“TBA”) security transactions. Such transactions involve a commitment by a Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. The Funds record TBA securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payments for the securities purchased.

Expense Allocation – Common expenses incurred by the Funds are allocated among the Funds (i) based upon relative average daily net assets, (ii) as incurred on a specific identification basis, or (iii) equally among the Funds, depending on the nature of the expenditure.

Classes – Class-specific expenses are borne by that class. Income, non class-specific expenses, and realized and unrealized gains/losses are allocated to the respective class on the basis of relative net asset value each day.

Dividends and Distributions to Shareholders – Dividends from net investment income are declared daily and paid to shareholders monthly for the Money Market Funds and Fixed Income Funds. Dividends from net investment income are declared and paid quarterly for the Multi-Asset Fund and Equity Funds. Distributions from net realized capital gains are distributed to shareholders at least annually.

CNI CHARTER FUNDS | PAGE 81

notes to financial statements

March 31, 2012 (Unaudited)

3.  ADMINISTRATION, TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES AGREEMENTS:

Pursuant to an administration agreement dated April 1, 1999, as amended April 1, 2008, January 1, 2009, January 1, 2010, January 1, 2011 and January 1, 2012 (the “Agreement”), SEI Investments Global Funds Services (the “Administrator”), a wholly owned subsidiary of SEI Investments Company, acts as the Trust’s administrator. Under the terms of the Agreement, the Administrator is entitled to receive an annual fee of 0.065% of aggregate average daily net assets of the Trust not exceeding $2.5 billion, 0.045% of aggregate average daily net assets of the Trust exceeding $2.5 billion but not exceeding $5 billion, 0.025% of aggregate average daily net assets of the Trust exceeding $5 billion but not exceeding $7.5 billion, and 0.02% of aggregate average daily net assets of the Trust exceeding $7.5 billion. Each Fund is subject to a minimum annual fee of $90,000, which may be reduced at the sole discretion of the Administrator.

The Trust has adopted a Rule 12b-1 Distribution Plan (“the Plan”) with respect to Class N and Class S Shares that allows each Fund to pay distribution and servicing fees. Pursuant to the Plan, SEI Investments Distribution Co. (the “Distributor”) receives a distribution fee, computed daily and paid monthly, at the annual rate of 0.50% of the average daily net assets of the Class N Shares and Class S Shares of the Money Market Funds and 0.25% of the Class N Shares of the Fixed Income Funds, Multi-Asset Fund and Equity Funds, with the exception of 0.30% charged to the Class N Shares of the High Yield Bond Fund, which may be used by the Distributor to provide compensation for sales support and distribution-related activities.

SEI Institutional Transfer Agency, a division of SEI Investments Management Corporation (the “Transfer Agent”), serves as transfer agent for the Trust and provides services at an annual rate of $15,000 per share class. The Transfer Agent has agreed to waive these fees.

UMB Fund Services serves as sub-transfer agent for all share classes of the Limited Maturity Fund, Full Maturity Fund, Diversified Fund and Socially Responsible Fund, and provides services at an annual rate of $14,000 per share class plus other transaction based fees and out of pocket expenses.

The Trust has entered into Shareholder Servicing Agreements that permit payment of compensation to City National Bank (“CNB”) and its affiliates (including CNAM) which provide certain shareholder support for their customers who own Institutional Class (for the Money Market Funds only), Class N, Class S or Servicing Class Shares. In consideration for such services, a shareholder servicing fee is charged at the annual rate of up to 0.25% of average daily net assets of the relevant class of each Fund. CNB and CNAM have both agreed to voluntarily waive portions of their shareholder servicing fees with respect to certain Funds. For the six months ended March 31, 2012, CNB and CNAM received Shareholder Servicing fees from the Trust in the amounts of $837,858 and $0, respectively.

Certain officers of the Trust are also officers of CNAM or the Administrator. Such officers are paid no fees by the Trust for serving as officers of the Trust.

CNI CHARTER FUNDS | PAGE 82

4.  INVESTMENT ADVISORY FEES AND OTHER AGREEMENTS:

Under the terms of the current investment management agreements, CNAM receives an annual fee equal to a percentage of the average daily net assets of the Funds, as follows:

Fund	Fee
Government Money Market Fund	0.26%
Prime Money Market Fund	0.25
California Tax Exempt Money Market Fund	0.27
Limited Maturity Fixed Income Fund	0.50
Government Bond Fund	0.43
Corporate Bond Fund	0.40
California Tax Exempt Bond Fund	0.27
Full Maturity Fixed Income Fund	0.50
High Yield Bond Fund	0.75
Multi-Asset Fund	0.50
Diversified Equity Fund	0.75*
Large Cap Value Equity Fund	0.62
Large Cap Growth Equity Fund	0.65
Socially Responsible Equity Fund	0.75

* CNAM has contractually agreed to waive a portion of the annual management fee payable to it by the Diversified Equity Fund, thereby reducing the annual management fee from 0.75% of average daily net assets to 0.65% of average daily net assets. This limitation will be in effect until January 28, 2013.

Robert W. Baird & Co., Incorporated and Boyd Watterson Asset Management, LLC act as the investment sub-advisers with respect to the Full Maturity Fund.

Guggenheim Investment Management, LLC acts as the investment sub-adviser with respect to the High Yield Bond Fund.

SKBA Capital Management, LLC and Turner Investments, L.P. act as the investment sub-advisers with respect to the Diversified Fund.

SKBA Capital Management, LLC acts as the investment sub-adviser with respect to the Socially Responsible Fund.

Sub-adviser fees are paid by CNAM.

CNAM has agreed to limit its fees or reimburse expenses to the extent necessary to keep operating expenses at or below certain percentages of certain of the Funds’ respective average daily net assets. For the Limited Maturity Fixed Income Fund, Full Maturity Fixed Income Fund, Diversified Equity Fund and Socially Responsible Equity Fund the expense limitations are contractual and for the other funds they are voluntary. The expense limitations (expressed as percentages of average daily net assets) are as follows:

	Government Money Market Fund	Prime Money Market Fund	California Tax Exempt Money Market Fund
Institutional Class	0.63%	0.63%	0.55%
Class N	0.85%	0.85%	0.78%
Class S	1.05%	1.05%	0.98%

	Limited Maturity Fixed Income Fund	Government Bond Fund	Corporate Bond Fund	California Tax Exempt Bond Fund
Institutional Class	1.00%	0.55%	n/a	n/a
Class N	1.25%	1.05%	1.05%	0.85%
Servicing Class	n/a	0.80%	0.80%	0.60%

	Full Maturity Fixed Income Fund	High Yield Bond Fund	Multi-Asset Fund	Diversified Equity Fund
Institutional Class	1.00%	0.85%	1.25%	1.25%
Class N	1.25%	1.40%	1.75%	1.50%
Servicing Class	n/a	1.10%	1.50%	n/a

	Large Cap Value Equity Fund	Large Cap Growth Equity Fund	Socially Responsible Equity Fund
Institutional Class	0.75%	n/a	1.25%
Class N	1.25%	1.30%	1.50%
Servicing Class	1.00%	1.05%	n/a

Any fee reductions or expense reimbursements may be repaid by a Fund to CNAM, as applicable, within three years after occurrence, subject to certain restrictions and only if such repayments do not cause the Fund’s expense ratios, at the time of repayment, to exceed the applicable amount shown in the preceding table.

CNI CHARTER FUNDS | PAGE 83

notes to financial statements

March 31, 2012 (Unaudited)

As of March 31, 2012, fees which were previously waived by CNAM which may be subject to possible future reimbursement were as follows:

Fund	Potential Amount of Recovery (000)		Expiration
Government Money Market Fund	$	2,210		2012
		5,102		2013
		6,470		2014
		3,864		2015
Prime Money Market Fund		880		2012
		1,372		2013
		1,533		2014
		834		2015
California Tax Exempt Money Market Fund		1,568		2012
		1,560		2013
		1,498		2014
		1,166		2015
Government Bond Fund		49		2012
		101		2013
		122		2014
		11		2015
California Tax Exempt Bond Fund		39		2012
		46		2013
		56		2014
		15		2015
High Yield Bond Fund		25		2012
		43		2013
		67		2014
		13		2015
Diversified Equity Fund		1		2015

CNAM, CNB and the Administrator have voluntarily agreed to further waive and reduce their fees and/or reimburse certain expenses of the Money Market Funds in order to maintain a one-day net income yield (yield floor) of each Fund of not less than 0.01% of the Fund’s average daily net assets. The following table shows waivers, with respect to such yield floor, by class for the six months ended March 31, 2012:

	Shareholder Servicing Fee Waiver (000)			Investment Advisory Fee Waiver (000)		Administration Fee Waiver (000)
Government Money Market Fund
Institutional	$	145		$	132	$	5
Class N		7,266	(1)		3,392		132
Class S		1,027	(1)		341		13
Prime Money Market Fund
Institutional		708			373		26
Class N		1,004	(1)		276		19
Class S		949	(1)		186		12
California Tax Exempt Money Market Fund
Institutional		194			153		7
Class N		1,638	(1)		668		31
Class S		273	(1)		79		4

(1) Includes class specific distribution expenses.

5.  INVESTMENT TRANSACTIONS:

The cost of security purchases and proceeds from the sale and maturities of securities, other than temporary investments in short-term securities for the six months ended March 31, 2012, were as follows for the Fixed Income Funds, Multi-Asset Fund and Equity Funds:

	Purchases					Sales and Maturities
Fund	U.S. Gov’t (000)		Other (000)			U.S. Gov’t (000)		Other (000)
Limited Maturity Fixed Income Fund	$	5,941	$	1,244		$	3,035	$	2,015
Government Bond Fund		40,844		—			48,945		—
Corporate Bond Fund		—		29,505			87		22,272
California Tax Exempt Bond Fund		—		9,402			—		9,310
Full Maturity Fixed Income Fund		12,331		5,844			11,912		6,544
High Yield Bond Fund		—		50,595			—		30,343
Multi-Asset Fund		—		23,477	*		—		14,167	*
Diversified Equity Fund		—		26,557			—		41,448
Large Cap Value Equity Fund		—		16,188			—		15,418
Large Cap Growth Equity Fund		—		9,758			—		16,896
Socially Responsible Equity Fund		—		33,681			—		10,575

* Includes $240(000) and $1,580(000) of purchases and sales, respectively, of affiliated registered investment companies.

6. FEDERAL TAX INFORMATION:

It is each Fund’s intention to continue to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required.

Management has analyzed the Funds’ tax position taken on federal income tax returns for all open tax years and has concluded that as of September 30, 2011, no provision for income tax would be required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

The Funds may be subject to taxes imposed by countries in which they invest, with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned. The Funds accrue such taxes when the related income is earned.

The timing and characterization of certain income and capital gains distributions are determined annually in accordance with Federal tax regulations, which may differ from accounting

CNI CHARTER FUNDS | PAGE 84

principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss), or paid-in capital, as appropriate, in the period that the differences arise.

The tax character of dividends and distributions declared during the years ended September 30, 2011 and September 30, 2010 were as follows:

Fund	Tax Exempt Income (000)		Ordinary Income (000)		Long-Term Capital Gain (000)		Return of Capital (000)		Total (000)
Government Money Market Fund
2011	$	—	$	509	$	—	$	—	$	509
2010		—		680		—		—		680
Prime Money Market Fund
2011		—		533		—		—		533
2010		—		921		—		—		921
California Tax Exempt Money Market Fund
2011		163		1		—		—		164
2010		246		9		—		—		255
Limited Maturity Fixed Income Fund
2011		—		579		—		—		579
2010		—		848		—		—		848
Government Bond Fund
2011		—		3,356		—		—		3,356
2010		—		3,564		—		—		3,564
Corporate Bond Fund
2011		—		3,390		—		—		3,390
2010		—		3,307		—		—		3,307
California Tax Exempt Bond Fund
2011		1,360		—		187		—		1,547
2010		1,234		1		—		—		1,235
Full Maturity Fixed Income Fund
2011		—		1,427		110		—		1,537
2010		—		1,544		195		—		1,739
High Yield Bond Fund
2011		—		6,045		—		—		6,045
2010		—		4,049		—		—		4,049
Multi-Asset Fund
2011		—		662		—		—		662
2010		—		521		—		—		521
Diversified Equity Fund
2011		—		231		—		—		231
2010		—		304		—		2		306
Large Cap Value Equity Fund
2011		—		1,478		—		—		1,478
2010		—		1,234		—		—		1,234
Large Cap Growth Equity Fund
2011		—		62		—		—	��	62
2010		—		164		—		—		164
Socially Responsible Equity Fund
2011		—		902		—		—		902
2010		—		589		—		—		589

CNI CHARTER FUNDS | PAGE 85

notes to financial statements

March 31, 2012 (Unaudited)

As of September 30, 2011, the components of Distributable Earnings/(Accumulated Losses) on a tax basis were as follows:

Fund	Undistributed Tax-Exempt Income (000)		Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)		Capital Loss Carryforwards (000)			Post-October Losses (000)			Unrealized Appreciation (Depreciation) (000)			Other Temporary Differences (000)			Total Distributable Earnings (Accumulated Losses) (000)
Government Money Market Fund	$	—	$	28	$	—	$	(5	)	$	—		$	—		$	(28	)	$	(5	)
Prime Money Market Fund		—		17		—		—			(12	)		—			(17	)		(12	)
California Tax Exempt Money Market Fund		9		—		—		—			—			—			(7	)		2
Limited Maturity Fixed Income Fund		—		41		—		(2,456	)		—			503			(41	)		(1,953	)
Government Bond Fund		—		213		143		—			—			4,080			(212	)		4,224
Corporate Bond Fund		—		256		538		—			—			1,976			(256	)		2,514
California Tax Exempt Bond Fund		62		120		299		—			—			1,555			(120	)		1,916
Full Maturity Fixed Income Fund		—		157		432		—			—			2,121			(99	)		2,611
High Yield Bond Fund		—		621		—		(1,998	)		—			(4,729	)		(621	)		(6,727	)
Multi-Asset Fund		—		145		—		(2,014	)		—			(2,291	)		(131	)		(4,291	)
Diversified Equity Fund		—		62		—		(19,423	)		—			(3,409	)		(62	)		(22,832	)
Large Cap Value Equity Fund		—		383		—		(3,824	)		—			(9,346	)		(383	)		(13,170	)
Large Cap Growth Equity Fund		—		—		—		(1,195	)		—			(1,173	)		—			(2,368	)
Socially Responsible Equity Fund		—		235		—		(11,097	)		(589	)		(19	)		(235	)		(11,705	)

For tax purposes, the losses in the Funds can be carried forward for a maximum of eight years to offset any future net realized capital gains. As of September 30, 2011, the breakdown of capital loss carryforwards was as follows:

	Expiring September 30,
Fund		2012 (000)		2013 (000)		2014 (000)		2015 (000)		2016 (000)		2017 (000)		2018 (000)		2019 (000)
Government Money Market Fund	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5
Limited Maturity Fixed Income Fund		—		502		132		1,415		—		81		326		—
High Yield Bond Fund		—		—		—		—		—		257		1,741		—
Multi-Asset Fund		—		—		—		—		—		686		1,328		—
Diversified Equity Fund		—		—		—		—		—		6,090		13,333		—
Large Cap Value Equity Fund		—		—		—		—		—		—		3,824		—
Large Cap Growth Equity Fund		67		—		—		—		—		—		1,128		—
Socially Responsible Equity Fund		—		—		—		—		81		2,161		7,193		1,662

During the year ended September 30, 2011, the following Funds had utilized capital loss carryforwards to offset capital gains amounting to:

Fund	Amount (000)
Limited Maturity Fixed Income Fund	$	358
Government Bond Fund		26
Corporate Bond Fund		519
High Yield Bond Fund		1,364
Multi-Asset Fund Fund		1,623
Diversified Equity Fund		4,494
Large Cap Value Equity Fund		4,641
Large Cap Growth Equity Fund		2,812

Under the Regulated Investment Company Modernization Act of 2010, Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

CNI CHARTER FUNDS | PAGE 86

Post-October losses represent losses realized on investments and foreign currency transactions from November 1, 2010, through September 30, 2011, that, in accordance with Federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

The aggregate gross unrealized appreciation on securities, the aggregate gross unrealized depreciation on securities and the net unrealized appreciation/ (depreciation) for tax purposes at March 31 2012, for each of the Fixed Income Funds, Equity Funds and Multi-Asset Fund were as follows:

Fund	Federal Tax Cost (000)		Aggregate Gross Unrealized Appreciation (000)		Aggregate Gross Unrealized Depreciation (000)			Net Unrealized Appreciation (Deprecation) (000)
Limited Maturity Fixed Income Fund	$	38,189	$	657	$	(45	)	$	612
Government Bond Fund		170,139		3,574		(326	)		3,248
Corporate Bond Fund		116,113		3,901		(253	)		3,648
California Tax Exempt Bond Fund		55,652		1,858		(99	)		1,759
Full Maturity Fixed Income Fund		43,382		1,668		(167	)		1,501
High Yield Bond Fund		122,211		4,936		(3,659	)		1,277
Multi-Asset Fund		47,233		2,181		(925	)		1,256
Diversified Equity Fund		43,893		5,740		(469	)		5,271
Large Cap Value Equity Fund		110,909		17,156		(5,481	)		11,675
Large Cap Growth Equity Fund		38,815		9,748		(1,365	)		8,383
Socially Responsible Equity Fund		89,264		15,622		(1,842	)		13,780

At March 31, 2012, the Money Market Funds’ cost of securities for Federal income tax purposes approximates the cost disclosed in the Schedule of Investments.

7. CONCENTRATIONOF CREDIT RISK

In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote.

The Multi-Asset Fund may invest in exchange-traded notes (“ETNs”) as a non-principal investment strategy. ETNs are unsecured debt obligations of investment banks which are traded on exchanges and the returns of which are linked to the performance of market indexes. In addition to trading ETNs on exchanges, investors may redeem ETNs directly with the issuer on a weekly basis, typically in a minimum amount of 50,000 units, or hold the ETNs until maturity. ETNs are riskier than ordinary unsecured debt securities and have no principal protection. The Fund will generally invest in ETNs which are linked to commodities indexes. The Fund’s investment in an ETN may be influenced by many unpredictable factors, including highly volatile commodities prices, changes in supply and demand relationships, weather, agriculture, trade, changes in interest rates, and monetary and other governmental policies, action and inaction. Investing in ETNs is not equivalent to investing directly in index components or the relevant index itself. Because ETNs are debt securities, they possess credit risk; if the issuer has financial difficulties or goes bankrupt, the investor may not receive the return it was promised.

California Tax Exempt Funds – Specific Risks

The ability of issuers to pay interest on, and repay principal of, California municipal securities may be affected by economic and political developments in the State of California.

Certain securities are backed by letters of credit from various financial institutions and financial guaranty assurance agencies. These letters of credit enhance the credit quality of the individual securities; however, if any of the financial institutions or financial guaranty assurance agencies’ credit quality should deteriorate, it could cause the individual security’s credit quality to change. Additionally, if any of the Funds concentrate their letters of credit in any one financial institution, the risk of credit quality deterioration increases.

CNI CHARTER FUNDS | PAGE 87

notes to financial statements

March 31, 2012 (Unaudited)

8. CAPITAL SHARES ISSUED AND REDEEMED:

Capital share activity for the six months ended March 31, 2012 (Unaudited) and the year ended September 30, 2011 were as follows:

	Government Money Market Fund (000)						Prime Money Market Fund (000)						California Tax Exempt Money Market Fund (000)
	2012			2011			2012			2011			2012			2011
CAPITAL SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares issued		436,361			468,707			1,759,629			2,567,876			549,607			1,057,959
Shares issued in Lieu of Dividends and Distributions		—			—			9			51			—			—
Shares redeemed		(385,443	)		(498,052	)		(1,876,275	)		(2,427,636	)		(594,068	)		(1,028,266	)
Net Institutional Class transactions		50,918			(29,345	)		(116,637	)		140,291			(44,461	)		29,693
Class N:
Shares issued		2,316,420			6,046,915			394,304			1,236,194			488,174			1,294,708
Shares issued in Lieu of Dividends and Distributions		120			374			14			93			33			117
Shares redeemed		(2,559,242	)		(5,719,187	)		(450,529	)		(1,218,312	)		(430,977	)		(1,305,501	)
Net Class N transactions		(242,702	)		328,102			(56,211	)		17,975			57,230			(10,676	)
Class S:
Shares issued		369,986			849,467			680,110			1,490,167			111,967			301,856
Shares issued in Lieu of Dividends and Distributions		—			—			—			—			—			—
Shares redeemed		(383,675	)		(906,968	)		(711,538	)		(1,577,615	)		(120,942	)		(271,899	)
Net Class S transactions		(13,689	)		(57,501	)		(31,428	)		(87,448	)		(8,975	)		29,957

	Limited Maturity Fixed Income Fund (000)						Government Bond Fund (000)						Corporate Bond Fund (000)						California Tax Exempt Bond Fund (000)
	2012			2011			2012			2011			2012			2011			2012			2011
CAPITAL SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares issued		161			210			4,603			—			—			—			—			—
Shares issued in Lieu of Dividends and Distributions		11			28			4			—			—			—			—			—
Shares redeemed		(61	)		(358	)		(66	)		—			—			—			—			—
Net Institutional Class transactions		111			(120	)		4,541			—			—			—			—			—
Class N:
Shares issued		53			763			10			50			17			100			22			145
Shares issued in Lieu of Dividends and Distributions		3			5			1			3			2			3			5			6
Shares redeemed		(100	)		(1,021	)		(14	)		(84	)		(22	)		(88	)		(20	)		(33	)
Net Class N transactions		(44	)		(253	)		(3	)		(31	)		(3	)		15			7			118
Servicing Class:
Shares issued		—			—			2,454			5,375			2,409			3,825			939			2,513
Shares issued in Lieu of Dividends and Distributions		—			—			86			227			67			99			47			66
Shares redeemed		—			—			(7,431	)		(3,818	)		(2,005	)		(3,090	)		(967	)		(1,349	)
Net Servicing Class transactions		—			—			(4,891	)		1,784			471			834			19			1,230

CNI CHARTER FUNDS | PAGE 88

8. CAPITAL SHARES ISSUED AND REDEEMED (CONTINUED):

	Full Maturity Fixed Income Fund (000)						High Yield Bond Fund (000)						Multi-Asset Fund (000)						Diversified Equity Fund (000)
	2012			2011			2012			2011			2012			2011			2012			2011
CAPITAL SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares issued		44			103			3,430			—			1,303			—			26			271
Shares issued in Lieu of Dividends and Distributions		87			113			8			—			7			—			8			11
Shares redeemed		(5	)		(385	)		(177	)		—			(1	)		—			(1,261	)		(647	)
Net Institutional Class transactions		126			(169	)		3,261			—			1,309			—			(1,227	)		(365	)
Class N:
Shares issued		5			233			635			992			170			964			2			39
Shares issued in Lieu of Dividends and Distributions		1			6			91			159			17			21			1			—
Shares redeemed		(17	)		(544	)		(367	)		(446	)		(294	)		(439	)		(90	)		(168	)
Net Class N transactions		(11	)		(305	)		359			705			(107	)		546			(87	)		(129	)
Servicing Class:
Shares issued		—			—			5,133			6,022			381			1,023			—			—
Shares issued in Lieu of Dividends and Distributions		—			—			146			147			16			21			—			—
Shares redeemed		—			—			(5,971	)		(1,989	)		(1,519	)		(198	)		—			—
Net Servicing Class transactions		—			—			(692	)		4,180			(1,122	)		846			—			—

	Large Cap Value Equity Fund (000)						Large Cap Growth Equity Fund (000)						Socially Responsible Equity Fund (000)
	2012			2011			2012			2011			2012			2011
CAPITAL SHARES ISSUED AND REDEEMED:
Institutional Class:
Shares issued		3,453			—			—			—			776			1,674
Shares issued in Lieu of Dividends and Distributions		13			—			—			—			54			91
Shares redeemed		(69	)		—			—			—			(523	)		(1,127	)
Net Institutional Class transactions		3,397			—			—			—			307			638
Class N:
Shares issued		44			73			60			172			2,082			189
Shares issued in Lieu of Dividends and Distributions		3			9			—			—			8			4
Shares redeemed		(130	)		(172	)		(77	)		(128	)		(46	)		(95	)
Net Class N transactions		(83	)		(90	)		(17	)		44			2,044			98
Servicing Class:
Shares issued		1,597			2,893			502			2,163			—			—
Shares issued in Lieu of Dividends and Distributions		39			124			4			3			—			—
Shares redeemed		(4,728	)		(3,161	)		(1,310	)		(1,627	)		—			—
Net Servicing Class transactions		(3,092	)		(144	)		(804	)		539			—			—

9. SUBSEQUENT EVENTS

The Trust has evaluated the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no adjustments were required to the financial statements as of March 31, 2012.

CNI CHARTER FUNDS | PAGE 89

disclosure of fund expenses (Unaudited)

All mutual funds have operating expenses. As a shareholder of a Fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, class-specific distribution fees and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.

Operating expenses such as these are deducted from the Fund’s gross income and directly reduce your final investment return. These expenses are expressed as a percentage of the Fund’s average net assets; this percentage is known as the Fund’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

The table below illustrates your Fund’s costs in two ways:

Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

NOTE: Because the return is set at 5% for comparison purposes – NOT your Fund’s actual return – the account values shown do not apply to your specific investment.

	Beginning Account Value 10/1/2011		Ending Account Value 3/31/2012		Annualized Expense Ratios			Expense Paid During Period*
Government Money Market Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,000.10		0.11	%	$	0.55
Class N		1,000.00		1,000.10		0.11			0.55
Class S		1,000.00		1,000.10		0.11			0.55
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,024.45		0.11	%	$	0.56
Class N		1,000.00		1,024.45		0.11			0.56
Class S		1,000.00		1,024.45		0.11			0.56
Prime Money Market Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,000.10		0.20	%	$	1.00
Class N		1,000.00		1,000.10		0.21			1.05
Class S		1,000.00		1,000.10		0.21			1.05
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,024.00		0.20	%	$	1.01
Class N		1,000.00		1,023.95		0.21			1.06
Class S		1,000.00		1,023.95		0.21			1.06

	Beginning Account Value 10/1/2011		Ending Account Value 3/31/2012		Annualized Expense Ratios			Expense Paid During Period*
California Tax Exempt Money Market Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,000.10		0.09	%	$	0.45
Class N		1,000.00		1,000.10		0.09			0.45
Class S		1,000.00		1,000.10		0.09			0.45
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,024.55		0.09	%	$	0.46
Class N		1,000.00		1,024.55		0.09			0.46
Class S		1,000.00		1,024.55		0.09			0.46
Limited Maturity Fixed Income Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,009.40		0.69	%	$	3.47
Class N		1,000.00		1,008.10		0.94			4.72
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,021.55		0.69	%	$	3.49
Class N		1,000.00		1,020.30		0.94			4.75

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

CNI CHARTER FUNDS | PAGE 90

	Beginning Account Value 10/1/2011		Ending Account Value 3/31/2012		Annualized Expense Ratios			Expense Paid During Period*
Government Bond Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,028.60		0.57	%	$	0.95	**
Class N		1,000.00		1,026.00		1.01			5.12
Servicing Class		1,000.00		1,026.00		0.75			3.80
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,022.15		0.57	%	$	2.88
Class N		1,000.00		1,019.95		1.01			5.10
Servicing Class		1,000.00		1,021.25		0.75			3.79
Corporate Bond Fund
Actual Fund Return
Class N	$	1,000.00	$	1,031.50		1.00	%	$	5.08
Servicing Class		1,000.00		1,032.80		0.75			3.81
Hypothetical 5% Return
Class N	$	1,000.00	$	1,020.00		1.00	%	$	5.05
Servicing Class		1,000.00		1,021.25		0.75			3.79
California Tax Exempt Bond Fund
Actual Fund Return
Class N	$	1,000.00	$	1,021.60		0.81	%	$	4.09
Servicing Class		1,000.00		1,022.90		0.56			2.83
Hypothetical 5% Return
Class N	$	1,000.00	$	1,020.95		0.81	%	$	4.09
Servicing Class		1,000.00		1,022.20		0.56			2.83
Full Maturity Fixed Income Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,014.50		0.68	%	$	3.42
Class N		1,000.00		1,014.20		0.93			4.68
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,021.60		0.68	%	$	3.44
Class N		1,000.00		1,020.35		0.93			4.70
High Yield Bond Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,106.50		0.92	%	$	1.56	***
Class N		1,000.00		1,102.90		1.36			7.15
Servicing Class		1,000.00		1,104.50		1.06			5.58
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,020.40		0.92	%	$	4.65
Class N		1,000.00		1,018.20		1.36			6.86
Servicing Class		1,000.00		1,019.70		1.06			5.35

Beginning Account Value 10/1/2011 Ending Account Value 3/31/2012 Annualized Expense Ratios Expense Paid During Period*

Multi-Asset Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,066.70	0.70	%	$	1.19	****
Class N		1,000.00		1,064.80	1.09			5.63
Servicing Class		1,000.00		1,067.30	0.84			4.34
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,021.50	0.70	%	$	3.54
Class N		1,000.00		1,019.55	1.09			5.50
Servicing Class		1,000.00		1,020.80	0.84			4.24

Diversified Equity Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,231.00	0.93	%	$	5.19
Class N		1,000.00		1,228.60	1.18			6.57
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,020.35	0.93	%	$	4.70
Class N		1,000.00		1,019.10	1.18			5.96
Large Cap Value Equity Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,225.70	0.75	%	$	1.37	**
Class N		1,000.00		1,222.40	1.21			6.72
Servicing Class		1,000.00		1,224.80	0.96			5.34
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,021.25	0.75	%	$	3.79
Class N		1,000.00		1,018.95	1.21			6.11
Servicing Class		1,000.00		1,020.20	0.96			4.85
Large Cap Growth Equity Fund
Actual Fund Return
Class N	$	1,000.00	$	1,257.10	1.24	%	$	7.00
Servicing Class		1,000.00		1,258.20	0.99			5.59
Hypothetical 5% Return
Class N	$	1,000.00	$	1,018.80	1.24	%	$	6.26
Servicing Class		1,000.00		1,020.05	0.99			5.00
Socially Responsible Equity Fund
Actual Fund Return
Institutional Class	$	1,000.00	$	1,217.40	0.90	%	$	4.99
Class N		1,000.00		1,215.30	1.15			6.37
Hypothetical 5% Return
Institutional Class	$	1,000.00	$	1,020.50	0.90	%	$	4.55
Class N		1,000.00		1,019.25	1.15			5.81

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period).

** Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 60/366 (to reflect the period since inception).

*** Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 59/366 (to reflect the period since inception).

****  Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 10/366 (to reflect the period since inception).

CNI CHARTER FUNDS | PAGE 91

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CNI CHARTER FUNDS | PAGE 92

For more information on CNI Charter Funds, including charges

and expenses, please call 1-888-889-0799 or go to cnicharterfunds.com

for a free prospectus. Read it carefully before you invest or send money.

CNI-SA-004-0400

Item 2. Code of Ethics.

Not applicable for semi-annual report.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to open-end management investment companies.

Item 6. Schedule of Investments

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable to open-end management investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable to open-end management investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

CNI Charter Funds (the "Fund") has adopted the following procedures by which shareholders may recommend nominees to the Fund's Board of Trustees. The Fund has a Nominating Committee comprised solely of persons who are not considered "interested persons" of the Fund within the meaning of the Investment Company Act of 1940. The Committee periodically reviews such issues as the Board's composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of Trustees.  While the Committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the Board, so long as the shareholder or shareholder group submitting a proposed nominee: (a) beneficially owns more than 5% of the Fund's voting shares and has held such shares continuously for two years, and (b) is not an adverse holder.  No eligible shareholder or shareholder group may submit more than one independent Board member nominee each year.  Such suggestions must be sent in writing to the Fund 's Secretary, and must be accompanied by the shareholder's contact information, the nominee's contact information and number of Fund shares owned by the nominee, all information regarding the nominee that would be required to be disclosed in solicitations of proxies for elections of directors required under the Securities Exchange Act of 1934, and a notarized

letter from the nominee stating his or her intention to serve as a nominee and be named in the Fund's proxy statement, if so designated by the Committee and the Board of Trustees. 

Item 11. Controls and Procedures.

(a) The certifying officers, whose certifications are included herewith, have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing date of this report.  In their opinion, based on their evaluation, the registrant’s disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no significant changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Items 12. Exhibits.

(a)(1) Not applicable for semi-annual report.

(a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.

(b)  Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit.

­­SIGNATURES

Pursuant to the requirements of the securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	CNI Charter Funds
By (Signature and Title)*	/s/ Rich Gershen
	Rich Gershen, President & CEO
Date: 6/5/12

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Rich Gershen
	Rich Gershen, President  & CEO
Date: 6/5/12
By (Signature and Title)*	/s/ Eric Kleinschmidt
	Eric Kleinschmidt, Controller and COO
Date: 6/5/12

*     Print the name and title of each signing officer under his or her signature.