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 811-07923
City National Rochdale Funds
(Exact name of registrant as specified in charter)
400 North Roxbury Drive
Beverly Hills, CA 90210
(Address of principal executive offices) (Zip code)
William J. Souza, Esq.
400 North Roxbury Drive
Beverly Hills, CA 90210
(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, 2014
Date of reporting period: September 30, 2014
| Item 1. | Reports to Stockholders. |
TABLE OF CONTENTS
| City National Rochdale Funds Annual Report | |
| 2 | Letter to Our Shareholders |
| 4 | Fixed Income and Blended Funds Investment Adviser’s Report |
| 7 | Fixed Income and Blended Funds Overview |
| 16 | Equity Funds Investment Adviser’s Report |
| 18 | Equity Funds Overview |
| 22 | Schedule of Investments/Consolidated Schedule of Investments |
| 120 | Statements of Assets and Liabilities/Consolidated Statement of Assets and Liabilities |
| 124 | Statements of Operations/Consolidated Statement of Operations |
| 128 | Statements of Changes in Net Assets/Consolidated Statement of Changes in Net Assets |
| 134 | Consolidated Statement of Cash Flows |
| 136 | Financial Highlights/Consolidated Financial Highlights |
| 141 | Notes to Financial Statements/Consolidated Notes to Financial Statements |
| 157 | Report of Independent Registered Public Accounting Firm |
| 158 | Trustees and Officers |
| 161 | Notice to Shareholders |
| 163 | Disclosure of Fund Expenses |
| 166 | Board Approval of Advisory and Sub-Advisory Agreements |
The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “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. citynationalrochdalefunds.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.citynationalrochdalefunds.com, and (3) on the Securities and Exchange Commission’s website at www.sec.gov.
CITY NATIONAL ROCHDALE FUNDS | PAGE 1
letter to our shareholders
September 30, 2014
Dear Shareholders,
This annual report covers the one-year period ended September 30, 2014. As we head closer to the end of the calendar year, global equity and credit markets have generally continued to perform well against a backdrop of mixed economic trends. One of the biggest stories of 2014 has been the unexpected rally in U.S. interest rates, as the U.S. 10-Year Treasury yield went from 3.00% at the beginning of the calendar year to 2.51% at the end of the third quarter (“Q3”). With consensus expectations coming into the year calling for a rise in interest rates, most investors were caught flatfooted. This dynamic markedly influenced return patterns across asset classes, supporting a rally in most income-oriented equities as well as longer duration fixed income positions.
Sustaining the trend from last year, credit spreads continued to grind tighter up until the month of July, when market volatility picked up. Markets stabilized in August before taking another dive in September. Anxiety surrounding anticipated Federal Reserve decisions and a host of geopolitical concerns pushed most risk assets into the red towards the end of the most recent quarter. Commodity markets were among the most challenged, as evidenced by oil’s approximate 10% decline over the 12 months ending September 30, 2014. The significant strengthening of the U.S. Dollar during Q3 pressured the entire commodities complex, crippling nearly all agricultural, industrial, and precious metal sectors of the market.
Across global equity markets, the United States has remained the clear winner over the last 12 months, with the S&P 500 Index rallying nearly 20%. Reversing the trend from last year, large cap stocks have outperformed their smaller cap peers, as the Russell 2000 Index decline of 7.4% in Q3 resulted in a return just shy of 4.0% on a trailing one-year basis. Q3 proved to be a difficult period for international equities as well, marked by sharp declines in both developed and emerging market regions. Concerns linked to slowing economic growth within continental Europe have dominated headlines as of late, causing investors to re-assess global growth projections and reposition risk.
As we move closer to 2015, we remain intensely focused on identifying the most attractive opportunities for our clients. After a strong run in many equity and credit markets over the last few years, we believe risk management and downside protection will be as important as ever going forward. We thank you for your trust and confidence in our abilities to continue to serve you well through your investment in the City National Rochdale Funds.
Sincerely,
Bruce Simon
Chief Investment Officer
City National Rochdale Funds
Chief Investment Officer
City National Rochdale Funds
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
Past performance is no guarantee of future results. Certain shareholders may be subject to the Alternative Minimum Tax (AMT). Federal income tax rules apply to any capital gain distributions.
This information must be preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing.
City National Rochdale Funds do not generally accept investments by non-U.S. persons and may not be available in all states.
CITY NATIONAL ROCHDALE FUNDS | PAGE 2
The S&P 500 Index is a stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.
The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
CITY NATIONAL ROCHDALE FUNDS | PAGE 3
investment adviser’s report (Unaudited)
September 30, 2014
Fixed Income and Blended Funds
LIMITED MATURITY FIXED INCOME FUND - AHLFX
The Institutional Class Shares of the Fund underperformed its Barclays U.S. 1-3 Year Government/Credit Bond Index benchmark’s return of 0.04% by 15 basis points in Q3 with a return of -0.11%. Calendar year to date, as of September 30, 2014, the Fund has returned 0.52% versus a return of 0.60% for the benchmark. For the fiscal year ended September 30, 2014, the Institutional Class Shares of the Fund delivered a return of 0.75%, just below the 0.77% return for the Index.
The Fund maintains a material overweight to Corporate Credit (relative to the benchmark) which has been a positive contributor to performance over the last 12 months with the exception of last September when volatility in the credit markets picked up significantly. There is also a meaningful overweight to agency debt in the Fund, which was additive to relative performance in the most recent quarter. The manager has positioned the portfolio with a slight duration underweight to protect against an anticipated rise in interest rates heading into 2015.
GOVERNMENT BOND FUND – CNBIX
The Servicing Class Shares of the Fund posted a return of -0.11% for Q3, slightly lagging the Barclays U.S. 1-5 Year Government Bond Index’s -0.04% return. Calendar year to date, as of September 30, 2014, the Fund is lagging the benchmark’s return of 0.73% by 29 basis points with a return of 0.44%. For the fiscal year ended September 30, 2014, the Servicing Class Shares of the Fund have returned 0.54% and the benchmark has delivered a return of 0.67%.
As of the most recent quarter, the portfolio maintained its short duration positioning relative to the benchmark in anticipation of an eventual rise in interest rates. This proved to be a headwind during the quarter, as longer duration assets outperformed shorter duration positions as interest rates rallied. The yield enhancement garnered from the Fund’s overweight to agency bullet bonds was additive to performance. The portfolio also increased its allocation to 3-6 year maturity buckets to take advantage of the current steepness in the yield curve.
CORPORATE BOND FUND – CNCIX
The Servicing Class Shares of the Fund posted a return of -0.25% for Q3, slightly underperforming the Barclays U.S. Corporate 1-5 Year A3 or Higher, 2% Issuer Constrained Index’s return of -0.09%. Calendar year to date, as of September 30, 2014, the Fund is performing in line with benchmark’s return of 1.46% versus a 1.45% return for the benchmark. For the fiscal year ended September 30, 2014, the Servicing Class Shares of the Fund underperformed the benchmark’s return of 1.94% with a return of 1.89%.
As of the most recent quarter, the Fund continues to outpace the benchmark from a yield perspective, driven by an emphasis on investing in lower quality bonds within the investment grade universe. Sector and issuer selection was additive to relative performance as bonds within the Industrials sector outperformed bonds within the Financials sector. A slight underweight to duration relative to the benchmark was a performance headwind, as interest rates continued to grind tighter throughout the quarter.
CALIFORNIA TAX EXEMPT BOND FUND - CNTIX
The Servicing Class Shares of the Fund posted a return of 0.59% for Q3, underperforming the Barclays CA Intermediate Short Municipal Index’s return of 0.76%. Calendar year to date, as of September 30, 2014, the Fund is lagging the benchmark’s return of 3.64% by 58 basis points with a return of 3.06%. For the fiscal year ended September 30, 2014, the Servicing Class Shares of the Fund have underperformed the benchmark’s return of 4.13% with a return of 3.58%.
With short term interest rates continuing to remain low, it remains a challenging environment to deliver meaningful levels of income utilizing short duration fixed income assets. During the most recent quarter, duration increased modestly closer to a neutral position to the benchmark. Tender Option Bonds were also added to the portfolio to increase the cash equivalent yield. Exposure to California General Obligation Bonds was also increased during the quarter, though the portfolio remains underweight relative to the benchmark.
CITY NATIONAL ROCHDALE FUNDS | PAGE 4
MUNICIPAL HIGH INCOME FUND - CNRMX
The Servicing Class Shares of the Fund posted a return of 2.61% for Q3, underperforming the 4.61% return for Barclays High Yield Municipal Index. Calendar year to date, as of September 30, 2014, the Fund has delivered a 10.90% return relative to 12.48% for the benchmark. The Fund commenced operations on December 30, 2013. Since inception the Fund has returned 10.68% compared to 12.49% for the benchmark.
The return pattern exhibited by the Fund this year is consistent with our expectations, based on the manager’s investment process and conservative approach. 2014 has seen a strong resurgence in municipal credit, punctuated by bouts of volatility driven primarily by concerns surrounding the future creditworthiness of Puerto Rico. The Fund’s significant underweight to Puerto Rico exposure has largely been additive to relative performance thus far, however during periods of elevated risk appetite like what we saw during Q3, the portfolio’s defensive positioning will temper excess return potential.
HIGH YIELD BOND FUND - CHYIX
The Servicing Class Shares of the Fund posted a return of -1.30% for Q3, outperforming the Citigroup High Yield Market Capped Index’s return of -1.95% by 65 basis points. Calendar year to date, as of September 30, 2014, the Fund is ahead of the benchmark’s return of 3.30% by 131 basis points with a return of 4.61%. For the fiscal year ended September 30, 2014, the Servicing Class Shares of the Fund has returned 8.22%, outpacing the benchmark’s return of 6.79% by 143 basis points.
The Fund outperformed the benchmark during all four quarters of the fiscal year. Much of this is attributable to positive security selection, and avoiding or underweighting sectors with questionable creditworthiness. During the most recent quarter, the Fund’s approximate 7% allocation to bank loans helped insulate against the volatility seen in credit markets, particularly during the month of September. Weakness in the Energy sector was a significant headwind at the index level given the recent decline in Oil prices, however, the Fund’s underweight position in the Energy sector, combined with outperformance within the sector was additive on a relative basis. The recent sell-off in leveraged credit has presented opportunities for the manager to take advantage of oversold bonds and relative value trades.
INTERMEDIATE FIXED INCOME FUND – RIMCX
The Class N Shares of the Fund posted a return of -0.18% for Q3, slightly lagging the Barclays Intermediate US Government/Credit Bond Index’s return of -0.03%. Calendar year to date, as of September 30, 2014, the Fund is outperforming the benchmark’s return of 2.22% by 88 basis points with a return of 3.10%. For the fiscal year ended September 30, 2014, the Class N Shares of the Fund have returned 3.54%, outpacing the benchmark’s return of 2.20% by 134 basis points.
The Fund has outperformed the benchmark in three of the last four quarters, demonstrating the ability to protect capital during market volatility as well as capture the upside when risky assets outperform. A significant overweight to corporate credit has been the most meaningful driver of outperformance over the last year. As of the most recent quarter, the Fund’s duration was slightly lower than the benchmark. This was a slight performance headwind, as longer duration assets rallied in September during the elevated market volatility.
FIXED INCOME OPPORTUNITIES FUND - RIMOX
The Fund posted a return of -0.66% for Q3, underperforming the Credit Suisse Leveraged Loan Index’s return of -0.33% by 33 basis points. Calendar year to date, as of September 30, 2014, the Fund is outperforming the benchmark’s return of 2.43% by 47 basis points with a return of 2.90%. For the fiscal year ended September 30, 2014, the Fund has returned 6.20%, outpacing the benchmark’s return of 4.30% by 190 basis points.
The Fund’s diversified asset class exposures have been instrumental in delivering an attractive yield profile, without assuming an inordinate amount of interest rate risk. With just over 30% of the Fund allocated to a combination of domestic and European bank loans, the strategy was well positioned to withstand elevated volatility in the credit markets during the most recent quarter. On a year to date and trailing one year basis, the Fund’s emerging markets high yield bond allocation has been the most additive to performance. The
CITY NATIONAL ROCHDALE FUNDS | PAGE 5
investment adviser’s report (Unaudited)
September 30, 2014
Fixed Income and Blended Funds (continued)
domestic high yield segment of the Fund maintains a higher quality posture relative to its respective benchmark, which was particularly helpful during September’s selloff of risky assets.
MULTI-ASSET FUND – CNIIX
The Servicing Class Shares of the Fund posted a -2.11% return in Q3, underperforming the BofA Merrill Lynch U.S. 3-Month Treasury Bill Index of 0.01%. Calendar year to date, as of September 30, 2014, the Fund has delivered a 0.46% return compared to 0.03% for the benchmark. For the fiscal year ended September 30, 2014, the Servicing Class Shares of the Fund returned 3.94% compared to a 0.05% return for the benchmark.
The Fund delivered positive absolute performance in three of the last four quarters, with the bulk of the return coming in Q4 of 2013. As of the most recent quarter, approximately 48% of the Fund was invested in fixed income with the remaining amount allocated to a mix of U.S., developed international, and emerging market equities as well as real estate investment trusts (“REITs”). Energy exposure was a performance headwind during the most recent quarter, driven largely by a sharp decline in Oil prices. On the positive side, equities in the Information Technology sector and an allocation to longer duration fixed income assets helped boost performance.
This material represents the managers’ assessment of the portfolios and market environment at a specific point in time and should not be relied upon by the reader as research or investment advice.
Performance data quoted represents past performance and does not guarantee similar future results. The investment performance and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-889-0799.
Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
The Limited Maturity Fixed Income Fund’s, Government Bond Fund’s, Corporate Bond Fund’s, California Tax Exempt Bond Fund’s, Municipal High Income Fund’s, High Yield Bond Fund’s, Intermediate Fixed Income Fund’s, Multi-Asset Fund’s, and Fixed Income Opportunities Fund’s investment performance reflects voluntary fee waivers in effect. Absent these waivers, total return and yield would be lower. The Adviser intends to continue these arrangements at least through January 31, 2015, but there can be no assurance that City National Rochdale, LLC will continue to waive fees.
The Limited Maturity Fixed Income Fund’s investment performance reflects contractual fee waivers in effect. Absent these waivers, total return and yield would be lower. Waivers are in effect until January 31, 2015.
Mutual fund investing involves risk including loss of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. The securities of mid-cap companies may have greater price volatility and less liquidity than the securities of larger capitalized companies. Emerging markets involve heightened risk related to the same factors as well as increased volatility and lower trading volume.
The California Tax Exempt Bond Fund invests primarily in California securities and may be more volatile and susceptible to a single adverse economic or regulatory occurrence affecting those obligations than a fund investing in obligations of a number of states.
The credit quality breakdown depicts the credit quality ratings of the Fund’s portfolio securities that are rated by one or both of two major nationally recognized statistical rating organizations (“NRSROs”). The two NRSROs currently utilized for this purpose are Standard & Poor’s (S&P) and Moody’s. When a bond is rated by S&P that rating is utilized. If it is not rated by S&P, the Moody’s rating is utilized. When a security is rated by neither, it is classified as “Not Rated”. For bonds, these credit quality ratings are shown without regard to gradations within a given rating category. For example, securities rated “AA-” or “AA+” have been included in the “AA” rated category. Long-term ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).
CITY NATIONAL ROCHDALE FUNDS | PAGE 6
fund overview (Unaudited)
September 30, 2014
City National Rochdale Limited Maturity Fixed Income Fund
The Fund seeks to provide a high level of current income, consistent with the preservation of capital and liquidity, by investing primarily in fixed income securities either issued or guaranteed by the U.S. Government or its agencies or instrumentalities, money market instruments and non-convertible fixed income securities of U.S. companies.
Comparison of Change in the Value of a $1,000,000 Investment in the City National Rochdale Limited Maturity Fixed Income Fund, Institutional Class Shares, versus the Barclays U.S. 1-3 Year Government/Credit Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
AVERAGE ANNUAL TOTAL RETURNS
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Institutional Class*(1) | AHLFX | 0.75% | 0.82% | 1.33% | 2.62% |
Class N(2) | AHALX | 0.50% | 0.57% | 1.06% | 2.36% |
| Barclays U.S. 1-3 Year Government/Credit Index | n/a | 0.77% | 0.92% | 1.45% | 2.85% |
| * | The graph is based on only Institutional Class Shares; performance for Class N Shares would be different due to differences in fee structures. |
| (1) | Class I Shares of the predecessor to the City National Rochdale Limited Maturity Fixed Income Fund (the “Predecessor Fund”) commenced operations on October 22, 1988. On September 30, 2005, the Predecessor Fund reorganized into the Fund. The performance results for Institutional Class Shares of the Fund for the period of October 22, 1988 to September 29, 2005, reflect the performance of the Predecessor Fund’s Class I Shares. |
| (2) | Class A Shares of the Predecessor Fund, the predecessor to the Class N Shares of the Fund, commenced operations on October 22, 2004. On September 30, 2005, the Predecessor Fund reorganized into the Fund. The performance results for Class N Shares of the Fund for the period of October 22, 2004, to September 29, 2005, reflect the performance of the Predecessor Fund’s Class A Shares. The performance results for Class N Shares of the Fund for the period of October 22, 1988 to October 21, 2004, reflect the performance of the Predecessor Fund’s Class I Shares. The performance of the Predecessor Fund’s Class I Shares has not been adjusted to reflect the higher Rule 12b-1 fees and expenses applicable to the Fund’s Class N Shares. If it had, the performance of the Fund’s Class N Shares would have been lower than that shown. |
| TOP TEN HOLDINGS | |
| % OF PORTFOLIO | |
| FNMA | |
| 0.500%, 03/30/16 | 4.4% |
| Farmer Mac Guaranteed Notes Trust 2007-1 | |
| 5.125%, 04/19/17 | 4.0% |
| Bank of America | |
| 6.400%, 08/28/17 | 3.8% |
| FNMA | |
| 5.000%, 03/15/16 | 3.8% |
| AT&T | |
| 2.400%, 08/15/16 | 3.7% |
| America Movil | |
| 1.235%, 12/12/14 | 3.7% |
| Glencore Funding | |
| 1.700%, 05/27/16 | 3.7% |
| ConocoPhillips Canada Funding I | |
| 5.625%, 10/15/16 | 3.6% |
| General Electric Capital | |
| 2.950%, 05/09/16 | 3.6% |
| Province of Ontario, Canada | |
| 1.600%, 09/21/16 | 3.5% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 7
fund overview (Unaudited)
September 30, 2014
City National Rochdale Government Bond Fund
The Fund seeks to provide current income (as the primary component of a total return intermediate duration strategy) by investing primarily in securities either issued or guaranteed by the U.S. Government or its agencies or instrumentalities.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Government Bond Fund, Servicing Class Shares, versus the Barclays U.S. 1-5 Year Government Bond Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
AVERAGE ANNUAL TOTAL RETURNS
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Servicing Class*(1)^ | CNBIX | 0.54% | 0.14% | 1.32% | 2.59% |
Institutional Class(2)^^† | CNIGX | 0.80% | 0.36% | 1.45% | 2.65% |
Class N(3) | CGBAX | 0.29% | -0.11% | 1.06% | 2.32% |
| Barclays U.S. 1-5 Year Government Bond Index | n/a | 0.67% | 0.67% | 1.66% | 3.08% |
| * | The graph is based on only Servicing Class Shares; performance for Institutional Class and Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on January 14, 2000. |
| (2) | Commenced operations on February 1, 2012. |
| (3) | Commenced operations on April 13, 2000. |
| ^ | The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank. |
| ^^ | The Fund’s Institutional Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank which meet the Fund’s minimum initial investment requirement. |
| † | Institutional Class Shares’ performance for the period of January 14, 2000 to February 1, 2012 is that of the Servicing Class Shares. |
| TOP TEN HOLDINGS | |
| % OF PORTFOLIO | |
| FNMA | |
| 0.174%, 10/15/14 | 5.8% |
| FFCB | |
| 0.239%, 10/26/14 | 5.8% |
| Tennessee Valley Authority, Ser E | |
| 6.250%, 12/15/17 | 5.4% |
| FNMA | |
| 1.000%, 10/16/17 | 4.0% |
| FHLB | |
| 1.000% 06/09/17 | 3.9% |
| FNMA | |
| 5.000%, 03/15/16 | 3.4% |
| FNMA | |
| 5.000%, 02/13/17 | 3.3% |
| FNMA | |
| 4.875%, 12/15/16 | 3.2% |
| FNMA | |
| 0.875%, 02/08/18 | 3.2% |
| U.S. Treasury Notes | |
| 3.250%, 03/31/17 | 3.1% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 8
fund overview (Unaudited)
September 30, 2014
City National Rochdale Corporate Bond Fund
The Fund seeks to provide current income (as the primary component of a total return intermediate duration strategy) by investing in a diversified portfolio of fixed income securities, primarily investment grade corporate bonds issued by domestic and international companies denominated in U.S. dollars.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Corporate Bond Fund, Servicing Class Shares, versus the Barclays 1-5 Year U.S. Corporate A3 or Higher, 2% Issuer Constrained Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Servicing Class*(1)^ | CNCIX | 1.89% | 2.82% | 3.00% | 3.61% |
Class N(2) | CCBAX | 1.64% | 2.56% | 2.74% | 3.35% |
| Barclays 1-5 Year U.S. Corporate A3 or Higher, 2% Issuer Constrained Index | n/a | 1.94% | 2.64% | 3.39% | 3.91% |
| * | The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on January 14, 2000. |
| (2) | Commenced operations on April 13, 2000. |
| ^ | The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank. |
| TOP TEN HOLDINGS | |
| % OF PORTFOLIO | |
| Florida State, Hurricane Catastrophe Fund Finance, Ser A, RB | |
| 2.107%, 07/01/18 | 2.9% |
| Lowe's | |
| 6.100%, 09/15/17 | 2.3% |
| Caisse Centrale Desjardins du Quebec | |
| 2.650%, 09/16/15 | 2.1% |
| Fifth Third Bank | |
| 1.150%, 11/18/16 | 2.1% |
| VW Credit, MTN | |
| 1.875%, 10/13/16 | 2.1% |
| Total Capital International | |
| 1.500%, 02/17/17 | 2.1% |
| Harley Davidson Funding | |
| 6.800%, 06/15/18 | 2.0% |
| Ivy High Income Fund | 2.0% |
| Daimler Finance North America | |
| 2.250%, 07/31/19 | 2.0% |
| America Movil | |
| 5.000%, 03/30/20 | 2.0% |
| BOND CREDIT QUALITY | |
CREDIT RATINGS(1) | % OF NET ASSETS |
| U.S. Government Obligations | 0.1% |
| AAA | 0.4% |
| AA | 20.5% |
| A | 44.4% |
| BBB | 26.5% |
| NR | 1.1% |
| Registered Investment Company | 2.0% |
| Short-Term Investments and Other Net Assets | 5.0% |
| (1) | Credit quality is based on ratings from Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”). Where S&P ratings are not available, credit quality is based on ratings from Moody’s Investor Services, Inc. (“Moody’s”). S&P and Moody’s ratings have been selected fo several reasons, including the access to information and materials provided by S&P and Moody’s, as well as the Fund’s consideration of industry practice. The Not Rated category, if applicable, consists of securities that have not been rated by S&P or Moody’s. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 9
fund overview (Unaudited)
September 30, 2014
City National Rochdale California Tax Exempt Bond Fund
The Fund seeks to provide current income exempt from federal and California state income tax (as the primary component of a total return strategy) by investing primarily in California municipal bonds and notes.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale California Tax Exempt Bond Fund, Servicing Class Shares, versus the Barclays Intermediate-Short California Municipal Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Servicing Class*(1)^ | CNTIX | 3.58% | 2.64% | 3.03% | 3.26% |
Class N(2) | CCTEX | 3.31% | 2.37% | 2.76% | 3.00% |
| Barclays Intermediate-Short California Municipal Index | n/a | 4.13% | 3.18% | 3.59% | 3.93% |
| * | The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on January 14, 2000. |
| (2) | Commenced operations on April 13, 2000. |
| ^ | The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank. |
| TOP TEN HOLDINGS* | |
| % OF PORTFOLIO | |
| Fairfield County, Redevelopment Agency, TA | |
| 4.000%, 08/01/17 | 3.5% |
| Los Angeles, Unified School District, Ser B, GO, AMBAC Callable 07/01/17 @ 100 | |
| 5.000%, 07/01/19 | 2.7% |
| California Statewide, Communities Development Authority, Kaiser Permanente, Ser B, RB Callable 02/01/17 @ 100 | |
| 0.990%, 04/01/52 | 2.5% |
| Ventura County, Public Financing Authority, Ser 2008-3381X, RB Callable 11/01/22 @ 100 | |
| 0.080%, 11/01/43 | 2.4% |
| Riverside County, Public Safety Communication, Ser A, COP, AMBAC | |
| 5.000%, 11/01/17 | 2.2% |
| California State, GO Callable 03/01/15 @ 100 | |
| 5.000%, 03/01/16 | 1.9% |
| California State, GO | |
| 5.000%, 09/01/21 | 1.8% |
| Southern California, Public Power Authority, Subordinated Southern Transmission Project, Ser A, RB | |
| 5.000%, 07/01/17 | 1.7% |
| California State, GO | |
| 5.250%, 09/01/22 | 1.5% |
| California State, GO Callable 11/01/20 @ 100 | |
| 5.000%, 11/01/22 | 1.5% |
| * | Excludes Cash Equivalents |
CITY NATIONAL ROCHDALE FUNDS | PAGE 10
fund overview (Unaudited)
September 30, 2014
City National Rochdale Municipal High Income Fund
The Fund seeks to provide a high level of current income that is not subject to federal income tax.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Municipal High Income Fund, Servicing Class Shares, versus the Barclays High Yield Municipal Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | ||
| Shares | Ticker Symbol | Inception to Date |
Servicing Class*(1)^ | CNRMX | 10.68% |
Class N(1) | CNRNX | 10.38% |
| Barclays High Yield Municipal Index | n/a | 12.49% |
| * | The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on December 30, 2013. |
| ^ | The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank. |
| TOP TEN HOLDINGS* | |
| % OF PORTFOLIO | |
| Mid-Bay Bridge Authority, Ser A, RB Callable 10/01/21 @ 100 | |
| 7.250%, 10/01/34 | 1.6% |
| Texas State, Private Activity Bond Surface Transportation Corp., NTE Mobility Project, RB Callable 12/31/19 @ 100 | |
| 6.875%, 12/31/39 | 1.5% |
| Tarrant County, Cultural Education Facilities Finance Corp., Buckingham Senior Living Community Project, RB Callable 11/15/17 @ 100 | |
| 5.750%, 11/15/37 | 1.5% |
| California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB Callable 09/01/24 @ 100 | |
| 5.000%, 09/01/31 | 1.4% |
| Territory of Guam, Ser A, GO Callable 11/15/19 @ 100 | |
| 7.000%, 11/15/39 | 1.4% |
| Kentucky State, Public Transportation Infrastructure Authority, Downtown Crossing Project, RB Callable 07/01/23 @ 100 | |
| 5.750%, 07/01/49 | 1.4% |
| South Carolina State, Public Service Authority, Ser E, RB Callable 12/01/23 @ 100 | |
| 5.500%, 12/01/53 | 1.4% |
| Sanger, Industrial Development Authority, Pellets Project, Ser B, RB, AMT Callable 07/01/22 @ 100 | |
| 8.000%, 07/01/38 | 1.4% |
| Colorado State, Public Energy Authority, RB | |
| 6.500%, 11/15/38 | 1.3% |
| Public Finance Authority, Las Ventanas Retirement Community Project, RB Callable 10/01/20 @ 102 | |
| 7.000%, 10/01/42 | 1.3% |
| * | Excludes Cash Equivalents |
CITY NATIONAL ROCHDALE FUNDS | PAGE 11
fund overview (Unaudited)
September 30, 2014
City National Rochdale High Yield Bond Fund
The Fund seeks to maximize total return by investing primarily in fixed income securities rated below investment grade including corporate bonds and debentures, convertible and preferred securities, zero coupon obligations and debt securities that are issued by U.S. and foreign governments.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale High Yield Bond Fund, Servicing Class Shares, versus the Citigroup High Yield Market Capped Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Servicing Class*(1)^ | CHYIX | 8.22% | 10.36% | 11.02% | 7.52% |
Institutional Class(2)^^† | CNIHX | 8.49% | 10.61% | 11.18% | 7.60% |
Class N(1) | CHBAX | 7.95% | 10.06% | 10.71% | 7.21% |
| Citigroup High Yield Market Capped Index | n/a | 6.79% | 10.61% | 10.19% | 7.82% |
| * | The graph is based on only Servicing Class Shares; performance for Institutional and Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on January 14, 2000. |
| (2) | Commenced operations on February 2, 2012. |
| ^ | The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank. |
| ^^ | The Fund’s Institutional Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank which meet the Fund’s minimum initial investment requirement. |
| † | Institutional Class Shares’ performance for the period from January 14, 2000 to February 2, 2012 is that of the Servicing Class Shares. |
| TOP TEN HOLDINGS | |
| % OF PORTFOLIO | |
| GRD Holdings III | |
| 10.750%, 06/01/19 | 2.4% |
| MDC Partners | |
| 6.750%, 04/01/20 | 2.3% |
| BreitBurn Energy Partners | |
| 7.875%, 04/15/22 | 2.3% |
| Central Garden and Pet | |
| 8.250%, 03/01/18 | 2.2% |
| Opal Acquisition | |
| 8.875%, 12/15/21 | 1.8% |
| Vector Group | |
| 7.750%, 02/15/21 | 1.8% |
| Bill Barrett | |
| 7.625%, 10/01/19 | 1.6% |
| Endeavor Energy Resources | |
| 7.000%, 08/15/21 | 1.6% |
| Harbinger Group | |
| 7.750%, 01/15/22 | 1.6% |
| AmeriGas Finance | |
| 7.000%, 05/20/22 | 1.6% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 12
fund overview (Unaudited)
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund
The Fund seeks current income and, to the extent consistent with this goal, capital appreciation, by investing primarily in fixed income securities.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Intermediate Fixed Income Fund, Institutional Class Shares, versus the Barclays Intermediate U.S. Government/Credit Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Class N*(1) | RIMCX | 3.54% | 3.76% | 4.25% | 3.67% |
Institutional Class(2) | CNRIX | 3.94% | 3.89% | 4.33% | 3.71% |
| Barclays Intermediate U.S. Government/Credit Index | n/a | 2.20% | 2.01% | 3.42% | 4.05% |
| * | The graph is based on only Class N Shares; the performance for Institutional Class Shares would be different due to differences in fee structures. |
| (1) | Shares of the predecessor to the City National Rochdale Intermediate Fixed Income Fund (the “Predecessor Fund”) commenced operations on December 31, 1999. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period December 31, 1999 to March 29, 2013 reflect the performance of the Predecessor Fund’s Shares. |
| (2) | Commenced operations on December 20, 2013. The performance results for Institutional Class Shares of the Fund for the period of December 31, 1999 to March 28, 2013, reflect the performance of the Predecessor Fund’s shares. The performance results for the Institutional Class Shares of the Fund for the period March 29, 2013 to December 19, 2013, reflect the performance of the Class N Shares. |
| TOP TEN HOLDINGS* | |
| % OF PORTFOLIO | |
| Svenska Handelsbanken, MTN | |
| 5.125%, 03/30/20 | 3.1% |
| FNMA | |
| 5.000%, 03/15/16 | 2.9% |
| FNMA | |
| 1.625%, 11/27/18 | 2.8% |
| Carmax Auto Owner Trust, Ser 2014-2, Cl A3 | |
| 0.980%, 01/15/19 | 2.5% |
| Macquarie Bank, MTN | |
| 2.600%, 06/24/19 | 2.0% |
| Daimler Finance North America | |
| 1.875%, 01/11/18 | 2.0% |
| California State, Department of Water Resources, Ser L, RB Callable 05/01/20 @ 100 | |
| 5.000%, 05/01/21 | 1.9% |
| MetLife | |
| 6.817%, 08/15/18 | 1.9% |
| Rio Tinto Finance USA | |
| 3.500%, 03/22/22 | 1.9% |
| General Electric Capital, MTN | |
| 5.300%, 02/11/21 | 1.9% |
| * | Excludes Cash Equivalents |
CITY NATIONAL ROCHDALE FUNDS | PAGE 13
fund overview (Unaudited)
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund
The Fund seeks a high level of current income by investing primarily in fixed income securities.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Fixed Income Opportunities Fund, versus the Credit Suisse Leveraged Loan Index, the Barclays U.S. Aggregate Bond Index and the Barclays U.S. Corporate High Yield Bond Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | Inception to Date |
Class N(1) | RIMOX | 6.20% | 7.68% | 7.36% | 7.94% |
| Credit Suisse Leveraged Loan Index | n/a | 4.30% | 6.92% | 6.67% | 8.28% |
| Barclays U.S. Aggregate Bond Index | n/a | 3.96% | 2.43% | 4.12% | 4.64% |
| Barclays U.S. Corporate High Yield Bond Index | n/a | 7.20% | 11.09% | 10.57% | 12.80% |
| (1) | Shares of the predecessor to the City National Rochdale Fixed Income Opportunities Fund (the “Predecessor Fund”) commenced operations on July 1, 2009. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period December 31, 1999 to March 29, 2013 reflect the performance of the Predecessor Fund’s Shares. |
| TOP TEN HOLDINGS* | |
% OF PORTFOLIO | |
| Transamerica #2275 | 0.8% |
| Dubai Holding Commercial Operations | |
| 6.000%, 02/01/17 | 0.7% |
| AXA Equitable Life | 0.7% |
| Digicel Group | |
| 8.250%, 09/30/20 | 0.6% |
| BT SPE (Acquired 07/06/11, Acquisition Cost $13,916,998) | |
| 9.250%, 06/06/16 | 0.6% |
| Start CLO | |
| 15.231%, 06/09/16 | 0.5% |
| Republic of Angola | |
| 6.597%, 12/06/20 | 0.5% |
| Sea Trucks Group | |
| 9.000%, 03/26/18 | 0.5% |
| Transamerica #0152 | 0.4% |
| Fortescue Metals Group, Cov-Lite Term Loan | |
| 3.750%, 06/28/19 | 0.4% |
| * | Excludes Cash Equivalents |
CITY NATIONAL ROCHDALE FUNDS | PAGE 14
fund overview (Unaudited)
September 30, 2014
City National Rochdale Multi-Asset Fund
The Fund seeks to generate a positive total return in excess of inflation in a manner consistent with capital preservation in all market environments by investing all or a principal portion of its assets in other mutual funds or exchange-traded funds.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Multi-Asset Fund, Servicing Class Shares, versus the BofA Merrill Lynch 3-Month U.S. Treasury Index and a 40/60 hybrid of the following two indexes: the MSCI World Index and Barclays Intermediate U.S. Government/Credit Bond Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | Inception to Date |
Servicing Class*(1)^ | CNIIX | 3.94% | 5.43% | 4.03% | 1.86% |
Class N(1) | CNIAX | 3.67% | 5.16% | 3.79% | 1.61% |
| BofA Merrill Lynch U.S. 3-Month U.S. Treasury Index | n/a | 0.05% | 0.07% | 0.10% | 0.54% |
| 40/60 hybrid of the following two indexes: | n/a | 6.18% | 8.29% | 6.61% | 4.05% |
| MSCI World Index | n/a | 12.20% | 17.93% | 10.86% | 2.62% |
| Barclays Intermediate U.S. Government/Credit Bond Index | n/a | 2.20% | 2.01% | 3.42% | 4.29% |
| * | The graph is based on only Servicing Class Shares; performance for Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on October 1, 2007. |
| ^ | The Fund’s Servicing Class Shares are available only to fiduciary, advisory, agency, custodial and other similar accounts maintained at City National Bank. |
| TOP TEN HOLDINGS | |
| % OF PORTFOLIO | |
| iShares 7-10 Year Treasury Bond ETF | 10.7% |
| SPDR S&P 500 ETF | 7.4% |
| City National Rochdale Corporate Bond Fund, Servicing Class | 6.4% |
| iShares MSCI World ETF | 6.0% |
| Ivy High Income Fund | 5.7% |
| Vanguard FTSE Europe ETF | 5.6% |
| iShares Russell 3000 Index Fund | 5.5% |
| City National Rochdale Limited Maturity Fixed Income Fund, Insitutional Class | 4.9% |
| City National Rochdale Government Bond Fund, Insitutional Class | 4.6% |
| SPDR S&P Dividend | 4.6% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 15
investment adviser’s report (Unaudited)
September 30, 2014
Equity Funds
DIVIDEND & INCOME FUND - RIMHX
The Fund posted a return of -1.72% for Q3, underperforming the S&P 500 Index’s return of 1.13% by 285 basis points. Calendar year to date, as of September 30, 2014, the Fund delivered a return of 5.68%, lagging the benchmark’s 8.34% return by 266 basis points. For the fiscal year ended September 30, 2014, the Fund generated a 12.20% return, underperforming the benchmark’s return of 19.73% by 753 basis points.
During the most recent quarter, the Fund’s exposure to Consumer Staples stocks helped insulate performance against the periods of elevated market volatility. Companies in the portfolio continue to perform well operationally and provided solid guidance, offering confidence in forward looking dividend growth potential. The Fund’s exposure to the REIT segment was a headwind during Q3, as many of these securities declined on the back of global economic uncertainty.
U.S. CORE EQUITY FUND – CNRVX
The Servicing Class Shares of the Fund posted a return of 1.60% for Q3, outpacing the S&P 500 Index’s return of 1.13% by 47 basis points. Calendar year to date, as of September 30, 2014, the Fund delivered a return of 7.33%, 101 basis points behind the Index’s return of 8.34%. For the fiscal year ended September 30, 2014, the Servicing Class Shares of the Fund returned 19.15%, versus 19.73% for the Index.
In terms of performance attribution, the Fund has generally remained positioned with a pro-cyclical orientation throughout the year. Returns outpaced the benchmark in three of the last four quarters. During the most recent quarter, an overweight to stocks at the smaller end of the market capitalization spectrum pressured performance as both mid and small cap stocks lagged their larger cap peers by a wide margin. As of the end of Q3, the Fund was overweight in the Consumer Discretionary, Industrials, and Energy sectors, and underweight Utilities, Telecom, and Consumer Staples companies.
SOCIALLY RESPONSIBLE EQUITY FUND – AHSRX
The Institutional Class Shares of the Fund posted a return of -2.94% for Q3, trailing the MSCI KLD 400 Social Index’s return of 0.68%. Calendar year to date, as of September 30, 2014, the Fund delivered a return of 3.41%, lagging the benchmark’s 7.47% return by 406 basis points. For the fiscal year ended September 30, 2014, the Institutional Class Shares of the Fund has returned 12.46% versus 18.45% for the Index.
Recent underperformance is in large part attributable to the Fund’s significant overweight to the Energy sector as well as a bias towards stocks at the smaller end of the market capitalization range, as both of these factors were particularly challenged during Q3. The strategy generally maintains more of a value orientation than the benchmark, which can cause increased style variability when measuring relative performance. Exposure to the U.S. housing recovery in early to mid-2014 was a tailwind for the Fund. More recently, the Fund’s sensitivity to pro-cyclical positioning across Energy and Industrials companies has been a performance headwind.
EMERGING MARKETS FUND - RIMIX
The Fund posted a return of 0.21% for Q3, outperforming the MSCI Emerging Markets Index’s return of -3.49%. Calendar year to date, as of September 30, 2014, the Fund has delivered a return of 7.91%, outpacing the benchmark’s 2.43% return by 548 basis points. For the fiscal year ended September 30, 2014, the Fund is comfortably ahead of the benchmark, returning 13.96% versus 4.30% for the Index.
Over the last year, the Fund outperformed the benchmark in three out of four quarters, two of which were during negative quarters for the benchmark. The strategy’s downside protection attributes have been instrumental in the outperformance generated since inception. During the most recent quarter, significant overweight to India, the Philippines, and Thailand were particularly additive from a relative return standpoint. Industrial companies and exposure to the Macau gaming sector weighed on performance during Q3, but the manager’s long term views on each area remain constructive.
CITY NATIONAL ROCHDALE FUNDS | PAGE 16
Performance data quoted represents past performance and does not guarantee similar future results. The investment performance and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-888-889-0799.
Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.
The Dividend and Income Fund’s, U.S. Core Equity Fund’s, Socially Responsible Equity Fund’s, and Emerging Markets Fund’s investment performance reflects voluntary fee waivers in effect. Absent these waivers, total return and yield would be lower. The Adviser intends to continue these arrangements at least through January 31, 2015, but there can be no assurance that City National Rochdale, LLC will continue to waive fees.
The Socially Responsible Equity Fund’s investment performance reflects contractual fee waivers in effect. Absent these waivers, total return and yield would be lower. Waivers are in effect until January 31, 2015.
Mutual fund investing involves risk including lose of principal. Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise. The securities of mid-cap companies may have greater price volatility and less liquidity than the securities of larger capitalized companies. Emerging markets involve heightened risk related to the same factors as well as increased volatility and lower trading volume.
CITY NATIONAL ROCHDALE FUNDS | PAGE 17
fund overview (Unaudited)
September 30, 2014
City National Rochdale Dividend & Income Fund
The Fund seeks to provide significant income and, as a secondary focus, long-term capital appreciation, by investing primarily in income-generating securities, principally comprised of dividend-paying equity securities.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Dividend & Income Fund, versus the S&P 500 Index and the 60/25/15 Hybrid of the following 3 Indexes: Dow Jones U.S. Select Dividend Index, BofA ML Core Fixed Rate Preferred Securities Index and MSCI U.S. REIT Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
Class N(1) | RIMHX | 12.20% | 14.50% | 13.33% | 8.05% |
| S&P 500 Index | n/a | 19.73% | 22.99% | 15.70% | 8.11% |
| 60/25/15 Hybrid of the following 3 Indexes: | n/a | 14.69% | 16.30% | 14.74% | 6.63% |
| Dow Jones U.S. Select Dividend Index | n/a | 15.34% | 19.68% | 16.81% | 7.01% |
| BofA ML Core Fixed Rate Preferred Securities Index | n/a | 13.30% | 7.73% | 8.49% | 2.71% |
| MSCI U.S. REIT Index | n/a | 13.26% | 16.62% | 15.96% | 8.41% |
| (1) | Shares of the predecessor to the City National Rochdale Dividend & Income Fund (the “Predecessor Fund”) commenced operations on June 1, 1999. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period December 31, 1999 to March 29, 2013 reflect the performance of the Predecessor Fund’s Shares. |
| TOP TEN HOLDINGS | |
| % OF PORTFOLIO | |
| Lorillard | 2.9% |
| Philip Morris International | 2.5% |
| Johnson & Johnson | 2.4% |
| Chevron | 2.1% |
| Plains All American Pipeline | 2.1% |
| Dr Pepper Snapple Group | 2.0% |
| General Mills | 2.0% |
| Procter & Gamble | 1.9% |
| McDonald's | 1.9% |
| Consolidated Communications Holdings | 1.8% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 18
fund overview (Unaudited)
September 30, 2014
City National Rochdale U.S. Core Equity Fund
The Fund seeks to provide long-term capital appreciation by investing primarily in common stock of large and middle capitalization corporations domiciled in the United States.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale U.S. Core Equity Fund, Servicing Class Shares, versus the S&P 500 Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmark does not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||
| Shares | Ticker Symbol | 1-Year Return | Inception to Date |
Servicing Class*(1) | CNRVX | 19.15% | 22.52% |
Institutional Class(1) | CNRUX | 19.86% | 23.27% |
Class N(1) | CNRWX | 18.80% | 22.18% |
| S&P 500 Index | n/a | 19.73% | 22.78% |
| * | The graph is based on only Servicing Class Shares; performance for Institutional and Class N Shares would be different due to differences in fee structures. |
| (1) | Commenced operations on December 3, 2012. |
| TOP TEN HOLDINGS | |
% OF PORTFOLIO | |
| Apple | 4.5% |
| Gilead Sciences | 3.1% |
| Haliburton | 3.0% |
| Celgene | 3.0% |
| CVS Health | 2.6% |
| MasterCard | 2.3% |
| JPMorgan Chase | 2.3% |
| American Express | 2.2% |
| Prudential Financial | 2.2% |
| Google, Cl A | 2.1% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 19
fund overview (Unaudited)
September 30, 2014
City National Rochdale Socially Responsible Equity Fund
The Fund seeks to provide long-term capital growth by investing primarily in common stocks of U.S. issuers that meet certain socially responsible criteria.
Comparison of Change in the Value of a $1,000,000 Investment in the City National Rochdale Socially Responsible Equity Fund, Institutional Class Shares, versus the MSCI KLD 400 Social Index and the Russell 1000 Value Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||||
| Shares | Ticker Symbol | 1-Year Return | 3-Year Return | 5-Year Return | Inception to Date |
Institutional Class*(1) | AHSRX | 12.46% | 19.06% | 12.02% | 5.27% |
Class N(2) | AHRAX | 12.11% | 18.74% | 11.74% | 5.11% |
| MSCI KLD 400 Social Index | n/a | 18.45% | 22.81% | 15.26% | 7.56% |
| Russell 1000 Value Index | n/a | 18.89% | 23.93% | 15.26% | 6.90% |
| * | The graph is based on only Institutional Class Shares; performance for Class N Shares would be different due to differences in fee structures. |
| (1) | Class I Shares of the predecessor to the Institutional Class shares of the Socially Responsible Equity Fund (the “Predecessor Fund”) commenced operations on January 3, 2005. On September 30, 2005, the Predecessor Fund reorganized into the Fund. The performance results for Institutional Class Shares of the Fund for the period of January 3, 2005 to September 29, 2005, reflect the performance of the Predecessor Fund’s Class I Shares. |
| (2) | Class A Shares of the Predecessor Fund, the predecessor to the Class N Shares of the Fund, commenced operations on August 12, 2005. On September 30, 2005, the Predecessor Fund reorganized into the Fund. The performance results for Class N Shares of the Fund for the period of August 12, 2005, to September 29, 2005, reflect the performance of the Predecessor Fund’s Class A Shares. The performance results for Class N Shares of the Fund for the period of January 3, 2005 to August 12, 2005, reflect the performance of the Predecessor Fund’s Class I Shares. The performance of the Predecessor Fund’s Class I Shares has not been adjusted to reflect the higher Rule 12b-1 fees and expenses applicable to the Fund’s Class N Shares. If it had, the performance of the Fund’s Class N Shares would have been lower than that shown. |
| TOP TEN HOLDINGS* | |
| % OF PORTFOLIO | |
| Procter & Gamble | 2.6% |
| Verizon Communications | 2.6% |
| PepsiCo | 2.5% |
| American International Group | 2.4% |
| Eaton | 2.4% |
| Baxter International | 2.4% |
| Southwestern Energy | 2.3% |
| BB&T | 2.2% |
| Bank of America | 2.1% |
| DaVita HealthCare Partners | 2.1% |
| * | Excludes Cash Equivalent |
CITY NATIONAL ROCHDALE FUNDS | PAGE 20
fund overview (Unaudited)
September 30, 2014
City National Rochdale Emerging Markets Fund
The Fund seeks to provide long-term capital appreciation by investing primarily in the equity securities of companies that are operating principally in emerging market countries.
Comparison of Change in the Value of a $10,000 Investment in the City National Rochdale Emerging Markets Fund, versus the MSCI Emerging Markets Index and the MSCI Emerging Markets Asia Index(1)
| (1) | The performance in the above graph does not reflect the deduction of taxes the shareholder will pay on Fund distributions or the redemptions of Fund shares. Investment performance reflects fee waivers in effect. In the absence of such waivers, total return would be reduced. |
Past performance is no indication of future performance.
The Fund’s comparative benchmarks do not include the annual operating expenses incurred by the Fund. Please note that one cannot invest directly in an unmanaged index.
| AVERAGE ANNUAL TOTAL RETURNS | |||
| Shares | Ticker Symbol | 1-Year Return | Inception to Date |
Class N(1) | RIMIX | 13.96% | 17.28% |
| MSCI Emerging Markets Index | n/a | 4.30% | 6.61% |
| MSCI Emerging Markets Asia Index | n/a | 9.03% | 9.93% |
| (1) | Shares of the predecessor to the City National Rochdale Emerging Markets Fund (the “Predecessor Fund”) commenced operations on December 14, 2011. On March 29, 2013, the Predecessor Fund was reorganized into the Fund. The performance results for the Class N Shares of the Fund for the period December 31, 1999 to March 29, 2013 reflect the performance of the Predecessor Fund’s Shares. |
| TOP TEN HOLDINGS* | |
| % OF PORTFOLIO | |
| Tencent Holdings | 3.1% |
| ICICI Bank | 2.7% |
| Great Wall Motor | 2.7% |
| NagaCorp | 2.2% |
| Sunny Optical Technology Group | 2.0% |
| China Pioneer Pharma Holdings | 2.0% |
| Galaxy Entertainment Group | 2.0% |
| GT Capital Holdings | 1.9% |
| Baidu | 1.8% |
| Megaworld | 1.8% |
| * | Excludes Cash Equivalent |
CITY NATIONAL ROCHDALE FUNDS | PAGE 21
schedule of investments
September 30, 2014
City National Rochdale Government Money Market Fund
| Description | Face Amount (000) | Value (000) | ||||||
| U.S. Government Agency Obligations [72.5%] | ||||||||
| FAMC, MTN | ||||||||
| 0.107%, 10/03/14(A) | $ | 50,000 | $ | 49,998 | ||||
| 0.200%, 03/06/15 | 50,000 | 50,011 | ||||||
| 0.140%, 05/08/15 | 50,000 | 49,993 | ||||||
| 0.195%, 09/09/15 | 30,000 | 29,990 | ||||||
| FAMC DN | ||||||||
| 0.071%, 10/02/14(B) | 35,000 | 35,000 | ||||||
| 0.045%, 10/07/14 | 22,000 | 22,000 | ||||||
| 0.005%, 10/16/14(B) | 13,000 | 13,000 | ||||||
| 0.085%, 11/04/14 | 25,500 | 25,498 | ||||||
| 0.120%, 11/25/14(B) | 35,000 | 34,994 | ||||||
| 0.120%, 01/14/15(B) | 11,498 | 11,494 | ||||||
| 0.075%, 03/10/15(B) | 50,000 | 49,983 | ||||||
| FFCB | ||||||||
| 0.119%, 10/11/14 | 58,000 | 57,988 | ||||||
| 0.184%, 10/13/14(A) | 12,300 | 12,303 | ||||||
| 0.174%, 10/23/14(A) | 26,500 | 26,509 | ||||||
| 0.130%, 06/17/15 | 88,405 | 88,384 | ||||||
| FHLB | ||||||||
| 0.106%, 10/08/14(A) | 40,000 | 40,000 | ||||||
| 0.108%, 10/09/14(A) | 40,000 | 40,000 | ||||||
| 0.119%, 10/10/14(A) | 50,000 | 50,002 | ||||||
| 0.106%, 10/14/14(A) | 15,000 | 15,000 | ||||||
| 0.114%, 10/16/14(A) | 50,000 | 50,002 | ||||||
| 0.080%, 10/16/14 | 40,000 | 40,000 | ||||||
| 0.103%, 10/19/14(A) | 50,000 | 50,001 | ||||||
| 0.099%, 10/25/14(A) | 25,000 | 25,000 | ||||||
| 0.095%, 10/25/14(A) | 50,000 | 49,999 | ||||||
| 0.080%, 10/27/14 | 50,000 | 50,000 | ||||||
| 0.130%, 10/30/14 | 50,000 | 50,000 | ||||||
| 0.080%, 10/30/14 | 70,000 | 70,000 | ||||||
| 0.070%, 11/20/14 | 40,000 | 39,999 | ||||||
| 0.090%, 01/15/15 | 40,000 | 39,997 | ||||||
| 0.250%, 01/16/15 | 25,000 | 25,008 | ||||||
| 0.090%, 01/16/15 | 40,000 | 39,997 | ||||||
| 0.125%, 01/23/15 | 45,000 | 45,001 | ||||||
| 0.100%, 02/19/15 | 29,275 | 29,274 | ||||||
| 0.090%, 02/19/15 | 50,000 | 49,996 | ||||||
| 0.250%, 02/20/15 | 14,435 | 14,440 | ||||||
| 0.090%, 02/23/15 | 50,000 | 49,996 | ||||||
| 0.110%, 04/07/15 | 36,700 | 36,694 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| 0.170%, 07/22/15 | $ | 50,000 | $ | 49,995 | ||||
| 0.125%, 08/07/15 | 5,650 | 5,646 | ||||||
| FHLB DN | ||||||||
| 0.031%, 10/01/14(B) | 268,000 | 268,000 | ||||||
| 0.003%, 10/03/14(B) | 176,000 | 176,000 | ||||||
| 0.033%, 10/08/14(B) | 152,005 | 152,004 | ||||||
| 0.070%, 10/10/14(B) | 60,000 | 59,999 | ||||||
| 0.036%, 10/24/14(B) | 200,000 | 199,995 | ||||||
| 0.075%, 11/05/14(B) | 20,000 | 19,999 | ||||||
| 0.065%, 11/19/14(B) | 15,160 | 15,159 | ||||||
| 0.070%, 12/05/14(B) | 30,000 | 29,996 | ||||||
| 0.095%, 03/04/15 | 200,000 | 199,919 | ||||||
| FHLMC | ||||||||
| 0.144%, 10/16/14(A) | 50,000 | 50,014 | ||||||
| 0.134%, 10/16/14(A) | 50,000 | 50,007 | ||||||
| 0.144%, 10/26/14 | 50,000 | 50,014 | ||||||
| 0.320%, 12/03/14 | 47,004 | 47,017 | ||||||
| FNMA | ||||||||
| 1.150%, 11/18/14 | 10,000 | 10,013 | ||||||
| 2.625%, 11/20/14 | 41,749 | 41,893 | ||||||
| 0.375%, 03/16/15 | 84,125 | 84,218 | ||||||
| Total U.S. Government Agency Obligations | ||||||||
| (Cost $2,967,439) | 2,967,439 | |||||||
| U.S. Treasury Obligations [10.0%] | ||||||||
| U.S. Treasury Bill | ||||||||
| 0.000%, 10/02/14(B) | 300,000 | 300,000 | ||||||
| U.S. Treasury Notes | ||||||||
| 0.084%, 10/07/14(A) | 80,000 | 80,009 | ||||||
| 0.060%, 10/07/14(A) | 30,000 | 29,995 | ||||||
| Total U.S. Treasury Obligations | ||||||||
| (Cost $410,004) | 410,004 | |||||||
| Municipal Bonds [9.1%] | ||||||||
| California [1.7%] | ||||||||
| ABAG Finance Authority for Nonprofit, Miramar Apartments Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 15,000 | 15,000 | ||||||
| Anaheim, Housing Authority, Sea Wind Apartments Project, Ser C, RB, FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 6,300 | 6,300 | ||||||
| California Statewide, Communities Development Authority, Fairway Family Apartments Project, Ser PP, RB, FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 8,000 | 8,000 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 22
schedule of investments
September 30, 2014
City National Rochdale Government Money Market Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Los Angeles, Community Redevelopment Agency, Hollywood and Vine Apartments Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | $ | 28,450 | $ | 28,450 | ||||
| Sacramento County, Housing Authority, Ashford Heights Apartments Project, Ser H, RB, FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 9,000 | 9,000 | ||||||
| Total California | 66,750 | |||||||
| Florida [0.2%] | ||||||||
| Duval County, Housing Finance Authority, Camri Green Apartments Project, RB, FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 6,600 | 6,600 | ||||||
| Iowa [0.2%] | ||||||||
| Iowa State, Finance Authority, Various Mortgage, Ser D, RB, GNMA/FNMA, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 6,600 | 6,600 | ||||||
| New York [6.0%] | ||||||||
| New York City, Housing Development Authority, 26th Street Development Project, Ser A, RB, FHLMC | ||||||||
| 0.050%, 10/02/14(A) (C) | 13,500 | 13,500 | ||||||
| New York City, Housing Development Authority, 26th Street Development Project, Ser A, RB, FHLMC, AMT | ||||||||
| 0.060%, 10/02/14(A) (C) | 9,350 | 9,350 | ||||||
| New York State, Housing Finance Agency, 11th Avenue Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.030%, 10/01/14(A) (C) | 29,000 | 29,000 | ||||||
| New York State, Housing Finance Agency, 345 East 94th Street Project, Ser A, RB, FHLMC, AMT | ||||||||
| 0.040%, 10/01/14(A) (C) | 13,300 | 13,300 | ||||||
| New York State, Housing Finance Agency, 360 West 43rd Street Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.030%, 10/01/14(A) (C) | 23,800 | 23,800 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| New York State, Housing Finance Agency, 360 West 43rd Street Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.030%, 10/01/14(A) (C) | $ | 18,100 | $ | 18,100 | ||||
| New York State, Housing Finance Agency, 750 6th Avenue Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.030%, 10/01/14(A) (C) | 7,500 | 7,500 | ||||||
| New York State, Housing Finance Agency, East 84th Street Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.040%, 10/01/14(A) (C) | 15,000 | 15,000 | ||||||
| New York State, Housing Finance Agency, RB | ||||||||
| 0.020%, 10/01/14(A) (C) (D) | 72,950 | 72,950 | ||||||
| New York State, Housing Finance Agency, Victory Housing Project, Ser 2004-A, RB, FHLMC, AMT | ||||||||
| 0.030%, 10/01/14(A) (C) | 25,500 | 25,500 | ||||||
| New York State, Housing Finance Agency, West 38th Street Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.040%, 10/01/14(A) (C) | 20,000 | 20,000 | ||||||
| Total New York | 248,000 | |||||||
| Texas [0.6%] | ||||||||
| Houston, Housing Finance, Regency Park Apartments Project, RB, FNMA, AMT | ||||||||
| 0.070%, 10/01/14(A) (C) | 13,495 | 13,495 | ||||||
| Texas State, Department of Housing & Community Affairs, Idlewilde Apartments Project, RB, FNMA, AMT | ||||||||
| 0.070%, 10/02/14(A) (C) | 13,490 | 13,490 | ||||||
| Total Texas | 26,985 | |||||||
| Washington [0.4%] | ||||||||
| Washington State, Housing Finance Commission, Vintage Spokane Project, Ser A, RB, FNMA, AMT | ||||||||
| 0.080%, 10/02/14(A) (C) | 16,295 | 16,295 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $371,230) | 371,230 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 23
schedule of investments
September 30, 2014
City National Rochdale Government Money Market Fund (concluded)
| Description | Face Amount (000)/Shares | Value (000) | ||||||
| Repurchase Agreements (E) [5.5%] | ||||||||
| Bank of America | ||||||||
0.000%(1), dated 09/30/14, repurchased on 10/01/14, repurchase price $124,000,000 (collateralized by various U.S. Government obligations, par values ranging from $22,200,000 to $34,500,000, 0.170% - 5.250%, 07/22/15 to 09/15/39; with a total market value $126,480,692) | $ | 124,000 | $ | 124,000 | ||||
| Goldman Sachs | ||||||||
| 0.010%, dated 09/30/14, repurchased on 10/01/14, repurchase price $100,000,028 (collateralized by various U.S. Government obligations, par values ranging from $10,220,000 to $56,632,000, 0.625% - 5.625%, 08/26/16 to 07/15/37; with a total market value $102,000,153) | 100,000 | 100,000 | ||||||
| Total Repurchase Agreements | ||||||||
| (Cost $224,000) | 224,000 | |||||||
| Short-Term Investment [2.9%] | ||||||||
| Morgan Stanley Institutional Liquidity Funds - Government Portfolio, 0.040%** | 119,205,888 | 119,206 | ||||||
| Total Short-Term Investment | ||||||||
| (Cost $119,206) | 119,206 | |||||||
| Total Investments [100.0%] | ||||||||
| (Cost $4,091,879) | $ | 4,091,879 | ||||||
Percentages are based on Net Assets of $4,092,241 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| (A) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (B) | Zero coupon security. The rate reported is the effective yield at time of purchase. |
| (C) | Put and Demand Feature — The date reported is the next reset or put date. |
| (D) | Securities are held in conjunction with a letter of credit from a major bank or financial institution. |
| (E) | Tri-Party Repurchase Agreement. |
| (1) | Interest rate amounts to less than 0.0001%. |
ABAG — Association of Bay Area Governments
AMT — Alternative Minimum Tax (subject to)
DN — Discount Note
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
MTN — Medium Term Note
RB — Revenue Bond
Ser — Series
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| U.S. Government Agency Obligations | $ | — | $ | 2,967,439 | $ | — | $ | 2,967,439 | ||||||||
| U.S. Treasury Obligations | — | 410,004 | — | 410,004 | ||||||||||||
| Municipal Bonds | — | 371,230 | ��� | 371,230 | ||||||||||||
| Repurchase Agreements | — | 224,000 | — | 224,000 | ||||||||||||
| Short-Term Investment | 119,206 | — | — | 119,206 | ||||||||||||
| Total Investments in Securities | $ | 119,206 | $ | 3,972,673 | $ | — | $ | 4,091,879 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 24
schedule of investments
September 30, 2014
City National Rochdale Prime Money Market Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Commercial Paper [57.4%] | ||||||||
| Banks [30.7%] | ||||||||
| ANZ New Zealand International (A) | ||||||||
| 0.170%, 10/16/14 | $ | 20,000 | $ | 19,999 | ||||
| Bank of Tokyo-Mitsubishi UFJ NY | ||||||||
| 0.160%, 11/12/14 | 10,000 | 9,998 | ||||||
| 0.180%, 12/02/14 | 20,000 | 19,994 | ||||||
| Barclays Bank (A) | ||||||||
| 0.300%, 11/24/14 | 15,000 | 14,993 | ||||||
| BPCE (A) | ||||||||
| 0.170%, 12/04/14 | 15,000 | 14,995 | ||||||
| Credit Suisse NY | ||||||||
| 0.320%, 02/24/15 | 10,000 | 9,987 | ||||||
| Deutsche Bank Financial | ||||||||
| 0.320%, 01/28/15 | 10,000 | 9,989 | ||||||
| HSBC USA | ||||||||
| 0.220%, 02/02/15 | 9,843 | 9,836 | ||||||
| Korea Development Bank NY | ||||||||
| 0.220%, 01/28/15 | 30,000 | 29,979 | ||||||
| Macquarie Bank (A) | ||||||||
| 0.180%, 11/07/14 | 10,000 | 9,998 | ||||||
| 0.220%, 12/05/14 | 7,550 | 7,547 | ||||||
| National Australia Funding Delaware (A) | ||||||||
| 0.200%, 02/02/15 | 30,000 | 29,980 | ||||||
| Natixis US Finance | ||||||||
| 0.280%, 02/17/15 | 10,000 | 9,989 | ||||||
| Societe Generale North America | ||||||||
| 0.290%, 10/03/14 | 10,000 | 10,000 | ||||||
| 0.200%, 12/11/14 | 10,000 | 9,996 | ||||||
| Standard Chartered Bank (A) | ||||||||
| 0.280%, 03/02/15 | 10,000 | 9,988 | ||||||
| Sumitomo Corp of Americas | ||||||||
| 0.190%, 10/15/14 | 25,000 | 24,998 | ||||||
| Sumitomo Mitsui Banking (A) | ||||||||
| 0.200%, 10/02/14 | 25,000 | 25,000 | ||||||
| 0.200%, 11/26/14 | 10,000 | 9,997 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Westpac Banking (A) | ||||||||
| 0.260%, 06/19/15 | $ | 35,000 | $ | 34,934 | ||||
| Total Banks | 322,197 | |||||||
| Financial Services [23.4%] | ||||||||
| AllianceBernstein (A) | ||||||||
| 0.150%, 10/06/14 | 15,000 | 15,000 | ||||||
| 0.200%, 10/20/14 | 20,000 | 19,998 | ||||||
| ASB Finance (A) | ||||||||
| 0.190%, 12/05/14 | 10,800 | 10,796 | ||||||
| Caisse Centrale Desjardins (A) | ||||||||
| 0.120%, 10/27/14 | 15,000 | 14,999 | ||||||
| 0.340%, 08/27/15 | 15,000 | 14,953 | ||||||
| Collateralized Commercial Paper | ||||||||
| 0.250%, 10/27/14 | 15,000 | 14,997 | ||||||
| 0.270%, 03/09/15 | 15,000 | 14,982 | ||||||
| Fortis Funding (A) | ||||||||
| 0.130%, 10/06/14 | 20,000 | 20,000 | ||||||
| General Electric Capital | ||||||||
| 0.190%, 10/29/14 | 20,000 | 19,997 | ||||||
| 0.200%, 01/07/15 | 15,000 | 14,992 | ||||||
| John Deere Canada ULC (A) | ||||||||
| 0.080%, 10/10/14 | 35,000 | 34,999 | ||||||
| Mizuho Funding (A) | ||||||||
| 0.200%, 10/07/14 | 15,000 | 15,000 | ||||||
| Toyota Motor Credit | ||||||||
| 0.210%, 11/24/14 | 25,000 | 24,992 | ||||||
| 0.230%, 03/05/15 | 10,000 | 9,990 | ||||||
| Total Financial Services | 245,695 | |||||||
| Medical-HMO [3.3%] | ||||||||
| UnitedHealth Group (A) | ||||||||
| 0.220%, 11/03/14 | 35,000 | 34,993 | ||||||
| Total Commercial Paper | ||||||||
| (Cost $602,885) | 602,885 | |||||||
| Certificates of Deposit [16.9%] | ||||||||
| Banco Del Estado De Chile | ||||||||
| 0.200%, 11/07/14 | 20,000 | 20,000 | ||||||
| 0.200%, 12/11/14 | 15,000 | 15,000 | ||||||
| Bank of America | ||||||||
| 0.200%, 11/04/14 | 25,000 | 25,000 | ||||||
| Bank of Nova Scotia | ||||||||
| 0.180%, 12/01/14 | 35,000 | 35,000 | ||||||
| Citibank | ||||||||
| 0.220%, 12/24/14 | 35,000 | 35,000 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 25
schedule of investments
September 30, 2014
City National Rochdale Prime Money Market Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Fortis Bank | ||||||||
| 0.440%, 12/12/14 | $ | 12,000 | $ | 12,004 | ||||
| Mizuho Bank | ||||||||
| 0.200%, 10/14/14 | 10,000 | 10,000 | ||||||
| Nordea Bank Finland | ||||||||
| 0.205%, 10/10/14 | 10,000 | 10,000 | ||||||
| Norinchukin Bank | ||||||||
| 0.200%, 11/12/14 | 15,000 | 15,000 | ||||||
| Total Certificates of Deposit | ||||||||
| (Cost $177,004) | 177,004 | |||||||
| Municipal Bonds [13.6%] | ||||||||
| California [6.5%] | ||||||||
| California State, Health Facilities Financing Authority, St. Joseph Health System Project, Ser B, RB | ||||||||
| 0.030%, 10/01/14(B) (C) (D) | 29,000 | 29,000 | ||||||
| Los Angeles, Department of Water & Power, Sub-Ser B-1, RB | ||||||||
| 0.040%, 10/02/14(C) (D) | 25,000 | 25,000 | ||||||
| Southern California, Metropolitan Water District, Ser B-3, RB | ||||||||
| 0.010%, 10/01/14(C) (D) | 15,000 | 15,000 | ||||||
| Total California | 69,000 | |||||||
| North Carolina [1.5%] | ||||||||
| Charlotte, Water and Sewer System, Ser B, RB | ||||||||
| 0.040%, 10/02/14(C) (D) | 15,400 | 15,400 | ||||||
| Ohio [1.7%] | ||||||||
| Ohio State, Higher Educational Facility Commission, Cleveland Clinic Project, Ser B-4, RB | ||||||||
| 0.020%, 10/01/14(C) (D) | 17,485 | 17,485 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Texas [3.9%] | ||||||||
| Lower Neches Valley, Industrial Development Authority, Exxon Mobil Project, RB | ||||||||
| 0.020%, 10/01/14(C) (D) | $ | 16,700 | $ | 16,700 | ||||
| Lower Neches Valley, Industrial Development Authority, Exxon-Mobil Project, RB | ||||||||
| 0.020%, 10/01/14(C) (D) | 24,102 | 24,102 | ||||||
| Total Texas | 40,802 | |||||||
| Total Municipal Bonds | ||||||||
| (Cost $142,687) | 142,687 | |||||||
| U.S. Treasury Obligation [1.0%] | ||||||||
| U.S. Treasury Note | ||||||||
| 2.125%, 05/31/15 | 10,000 | 10,134 | ||||||
| Total U.S. Treasury Obligation | ||||||||
| (Cost $10,134) | 10,134 | |||||||
| Corporate Bond [1.0%] | ||||||||
| Petroleum & Fuel Products [1.0%] | ||||||||
| ConocoPhillips | ||||||||
| 4.600%, 01/15/15 | 10,000 | 10,121 | ||||||
| Total Corporate Bond | ||||||||
| (Cost $10,121) | 10,121 | |||||||
| Repurchase Agreement(E) [0.9%] | ||||||||
| Bank of America | ||||||||
0.000%(1), dated 09/30/14, repurchased on 10/01/14, repurchase price $10,000,000 (collateralized by various U.S. Government Agency obligations, par values ranging from $1,816,000 to $8,250,000, 0.000% - 3.250%, 07/15/20 to 06/09/23; with a total market value of $10,200,234) | 10,000 | 10,000 | ||||||
| Total Repurchase Agreement | ||||||||
| (Cost $10,000) | 10,000 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 26
schedule of investments
September 30, 2014
City National Rochdale Prime Money Market Fund (concluded)
| Description | Shares | Value (000) | ||||||
| Short-Term Investment [9.2%] | ||||||||
| SEI Daily Income Trust, Prime Obligation Fund, Cl A, 0.010%** | 96,399,228 | $ | 96,399 | |||||
| Total Short-Term Investment | ||||||||
| (Cost $96,399) | 96,399 | |||||||
| Total Investments [100.0%] | ||||||||
| (Cost $1,049,230) | $ | 1,049,230 | ||||||
Percentages are based on Net Assets of $1,049,308 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| (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 September 30, 2014, the value of these securities amounted to $358,169 (000), representing 34.1% 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 September 30, 2014. |
| (D) | Tri-Party Repurchase Agreement. |
| (1) | Interest rate amounts to less than 0.0001%. |
Cl — Class
NY — New York
RB — Revenue Bond
Ser — Series
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Commercial Paper | $ | — | $ | 602,885 | $ | — | $ | 602,885 | ||||||||
| Certificates of Deposit | — | 177,004 | — | 177,004 | ||||||||||||
| Municipal Bonds | — | 142,687 | — | 142,687 | ||||||||||||
| U.S. Treasury Obligation | — | 10,134 | — | 10,134 | ||||||||||||
| Corporate Bond | — | 10,121 | — | 10,121 | ||||||||||||
| Repurchase Agreement | — | 10,000 | — | 10,000 | ||||||||||||
| Short-Term Investment | 96,399 | — | — | 96,399 | ||||||||||||
| Total Investments in Securities | $ | 96,399 | $ | 952,831 | $ | — | $ | 1,049,230 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 27
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Money Market Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Municipal Bonds [78.6%] | ||||||||
| California [74.7%] | ||||||||
| Bay Area Toll Authority, Ser A-2, RB | ||||||||
| 0.030%, 10/02/14(A) (B) (C) | $ | 13,500 | $ | 13,500 | ||||
| Bay Area Toll Authority, Ser C-1, RB | ||||||||
| 0.040%, 10/02/14(A) (B) (C) | 8,095 | 8,095 | ||||||
| Bay Area Toll Authority, Ser C-2, RB | ||||||||
| 0.040%, 10/02/14(A) (B) (C) | 4,190 | 4,190 | ||||||
| Big Bear Lake California, Ser A, RB, AMT | ||||||||
| 0.040%, 10/01/14(A) (B) (C) | 15,000 | 15,000 | ||||||
| California State, Department of Water Resources, Ser AC, RB, NATL-RE | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 12/01/14(D) | 1,000 | 1,008 | ||||||
| California State, Department of Water Resources, Ser AC, RB, NATL-RE | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 12/01/14(D) | 1,000 | 1,008 | ||||||
| California State, Economic Recovery Project, Ser C-4, GO | ||||||||
| 0.010%, 10/01/14(A) (B) (C) | 6,000 | 6,000 | ||||||
| California State, RAN | ||||||||
| 1.500%, 06/22/15 | 25,000 | 25,251 | ||||||
| California State, Health Facilities Financing Authority, Adventis Health System Project, Ser A, RB | ||||||||
| 0.030%, 10/02/14(A) (B) (C) | 2,600 | 2,600 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| California State, Health Facilities Financing Authority, Adventis Health System Project, Ser B, RB | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | $ | 2,180 | $ | 2,180 | ||||
| California State, Health Facilities Financing Authority, Kaiser Permanente, Ser C, RB | ||||||||
| 0.030%, 10/01/14(A) (C) | 13,245 | 13,245 | ||||||
| California State, Health Facilities Financing Authority, Scripps Health Project, Ser C, RB | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 8,650 | 8,650 | ||||||
| California State, Health Facilities Financing Authority, Ser K, RB | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 20,000 | 20,000 | ||||||
| California State, Health Facilities Financing Authority, St. Joseph Health System Project, Ser B, RB | ||||||||
| 0.030%, 10/01/14(A) (B) (C) | 965 | 965 | ||||||
| California State, Health Facilities Financing Authority, Stanford Hospital Project, Ser B-2, RB | ||||||||
| 0.130%, 12/03/14(C) | 18,550 | 18,550 | ||||||
| California State, Infrastructure & Economic Development Bank, Independent System Operator, Ser A, RB | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.250%, 02/01/15(D) | 1,255 | 1,276 | ||||||
| California State, Infrastructure & Economic Development Bank, Ser A, RB | ||||||||
| 0.010%, 10/01/14(A) (B) (C) | 2,600 | 2,600 | ||||||
| California State, Kindergarten Project, Ser A-1, GO | ||||||||
| 0.010%, 10/01/14(A) (B) (C) | 12,000 | 12,000 | ||||||
| California State, Kindergarten Project, Ser A-2, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 5,240 | 5,240 | ||||||
| California State, Kindergarten Project, Ser A-3, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 3,705 | 3,705 | ||||||
| California State, Kindergarten Project, Ser B-2, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 1,030 | 1,030 | ||||||
| California State, Municipal Finance Authority, Chevron USA Recovery Zone Project, RB | ||||||||
| 0.020%, 10/01/14(A) (C) | 11,000 | 11,000 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 28
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Money Market Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| California State, Public Works Board, Ser F, RB | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 11/01/14(D) | $ | 1,810 | $ | 1,818 | ||||
| California State, Public Works Board, University of California Research Project, Ser L, RB, NATL-RE, ETM | ||||||||
| 5.250%, 11/01/14 | 1,000 | 1,004 | ||||||
| California State, Public Works Board, Various University of California Projects, Ser D, RB | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 05/01/15(D) | 5,800 | 5,963 | ||||||
| California State, Ser 2813, GO | ||||||||
| 0.100%, 10/02/14(A) (C) (E) | 8,000 | 8,000 | ||||||
| California State, Ser A-2, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 5,300 | 5,300 | ||||||
| California State, Ser A5, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 12,600 | 12,600 | ||||||
| California State, Ser B-5, RB | ||||||||
| 0.030%, 10/01/14(B) (C) | 21,000 | 21,000 | ||||||
| California State, Ser B-7, GO | ||||||||
| 0.010%, 10/01/14(A) (B) (C) | 10,000 | 10,000 | ||||||
| California State, Sub-Ser A-1, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 11,500 | 11,500 | ||||||
| California State, Sub-Ser A-2, GO | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 1,500 | 1,500 | ||||||
| California Statewide, Communities Development Authority, Kaiser Permanente Project, Ser B, RB | ||||||||
| 0.030%, 10/01/14(A) (C) | 3,700 | 3,700 | ||||||
| California Statewide, Communities Development Authority, Kaiser Permanente Project, Ser D, RB | ||||||||
| 0.040%, 10/01/14(A) (C) | 5,000 | 5,000 | ||||||
| California Statewide, Communities Development Authority, Masters College Project, Ser A, RB | ||||||||
| 0.040%, 10/02/14(A) (B) (C) | 3,000 | 3,000 | ||||||
| California Statewide, Communities Development Authority, RB, AMT | ||||||||
| 0.110%, 10/01/14(A) (B) (C) | 300 | 300 | ||||||
| California Statewide, Communities Development Authority, Ser A, RB, AMT | ||||||||
| 0.110%, 10/01/14(A) (B) (C) | 670 | 670 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Deutsche Bank Spears, RB, AMBAC, AMT | ||||||||
| 0.120%, 10/02/14(A) (C) (E) | $ | 35,000 | $ | 35,000 | ||||
| Deutsche Bank Spears, Ser DBE-1270, RB | ||||||||
| 0.130%, 10/02/14(A) (C) (E) | 3,750 | 3,750 | ||||||
| Deutsche Bank Spears, Ser DBE-1364, GO | ||||||||
| 0.120%, 10/02/14(A) (C) (E) | 13,120 | 13,120 | ||||||
| Deutsche Bank Spears, Ser DBE-1455, GO, NATL-RE | ||||||||
| 0.130%, 10/02/14(C) (E) | 860 | 860 | ||||||
| Eastern Municipal Water District, Ser A, RB | ||||||||
| 0.050%, 10/02/14(A) (C) | 7,500 | 7,500 | ||||||
| Eastern Municipal Water District, Ser C, COP | ||||||||
| 0.030%, 10/01/14(A) (C) | 8,475 | 8,475 | ||||||
| Eastern Municipal Water District, Ser D, COP | ||||||||
| 0.030%, 10/01/14(A) (C) | 14,000 | 14,000 | ||||||
| Elsinore Valley, Municipal Water District, Ser A, COP | ||||||||
| 0.040%, 10/01/14(A) (B) (C) | 3,140 | 3,140 | ||||||
| Elsinore Valley, Municipal Water District, Ser B, COP | ||||||||
| 0.040%, 10/01/14(A) (B) (C) | 9,200 | 9,200 | ||||||
| Irvine Ranch, Water District, SAB | ||||||||
| 0.040%, 10/02/14(A) (B) (C) | 4,600 | 4,600 | ||||||
| Irvine Ranch, Water District, Ser A, SAB | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 9,700 | 9,700 | ||||||
| Irvine Ranch, Water District, Ser B, SAB | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 1,290 | 1,290 | ||||||
| JPMorgan Chase Putters, Ser 4470Z, GO, NATL-RE-IBC | ||||||||
| 0.080%, 10/02/14(C) (E) | 2,500 | 2,500 | ||||||
| JPMorgan Chase Putters, Ser 4476Z, GO | ||||||||
| 0.050%, 10/02/14(C) (E) | 5,000 | 5,000 | ||||||
| Los Angeles County Schools, Ser A-1, TRAN | ||||||||
| 1.500%, 06/01/15 | 3,000 | 3,027 | ||||||
| Los Angeles County, GO | ||||||||
| 1.500%, 06/30/15 | 5,400 | 5,456 | ||||||
| Los Angeles Department of Water & Power, Sub-Ser A-1, RB | ||||||||
| 0.050%, 10/02/14(A) (C) | 10,000 | 10,000 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 29
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Money Market Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Los Angeles, Department of Water & Power, Sub-Ser B-1, RB | ||||||||
| 0.040%, 10/02/14(A) (C) | $ | 7,350 | $ | 7,350 | ||||
| Los Angeles, Department of Water & Power, Sub-Ser B-1, RB | ||||||||
| 0.030%, 10/02/14(A) (C) | 19,000 | 19,000 | ||||||
| Los Angeles, Department of Water & Power, Sub-Ser B-2, RB | ||||||||
| 0.020%, 10/01/14(A) (C) | 6,700 | 6,700 | ||||||
| Los Angeles, Department of Water & Power, Sub-Ser B-6, RB | ||||||||
| 0.020%, 10/01/14(A) (C) | 21,300 | 21,300 | ||||||
| Los Angeles, Wastewater System Revenue, Ser A, RB, NATL-RE | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 4.750%, 06/01/15(D) | 1,780 | 1,835 | ||||||
| Metropolitan Water District of Southern California, Ser A-1, RB | ||||||||
| 0.060%, 10/02/14(C) | 10,000 | 10,000 | ||||||
| Metropolitan Water District of Southern California, Ser A-2, RB | ||||||||
| 0.050%, 10/02/14(A) (C) | 11,000 | 11,000 | ||||||
| Metropolitan Water District of Southern California, Ser A-3, RB | ||||||||
| 0.060%, 10/02/14(C) | 11,000 | 11,000 | ||||||
| Metropolitan Water District of Southern California, Ser D, RB | ||||||||
| 0.040%, 10/02/14(A) (C) | 5,800 | 5,800 | ||||||
| Mount San Antonio, Community College District, GO, ETM | ||||||||
| 0.297%, 05/01/15(F) | 4,165 | 4,158 | ||||||
| Ohlone Community College District, Ser B, GO, AGM | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 08/01/15(D) | 1,000 | 1,041 | ||||||
| Orange County, Apartment Development Authority, Riverbend Apartments Project, Ser B, RB | ||||||||
| 0.050%, 10/02/14(A) (C) | 10,000 | 10,000 | ||||||
| Orange County, Water District Authority, Ser A, COP | ||||||||
| 0.040%, 10/01/14(A) (B) (C) | 25,350 | 25,350 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Riverside County, RAN | ||||||||
| 1.500%, 06/30/15 | $ | 10,000 | $ | 10,103 | ||||
| Riverside County, Public Facilities Authority, Ser C, COP | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 3,200 | 3,200 | ||||||
| Riverside County, Water Authority, Ser A, RB | ||||||||
| 0.060%, 10/02/14(A) (C) | 17,000 | 17,000 | ||||||
| Sacramento County, Sanitation District Financing Authority, Ser A, RB | ||||||||
| 5.000%, 12/01/14 | 2,725 | 2,747 | ||||||
| San Diego County, Regional Transportation Commission, Ser B, RB | ||||||||
| 0.040%, 10/02/14(A) (C) | 6,930 | 6,930 | ||||||
| San Diego County, Regional Transportation Commission, Ser D, RB | ||||||||
| 0.040%, 10/02/14(A) (C) | 12,540 | 12,540 | ||||||
| San Diego, Community College District, Election 2002, GO, AGM | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 05/01/15(D) | 1,765 | 1,815 | ||||||
| San Francisco City & County, Airports Commission, Ser 37C, RB | ||||||||
| 0.020%, 10/01/14(A) (B) (C) | 15,900 | 15,900 | ||||||
| San Francisco City & County, Finance Authority, Moscone Center Project, Ser 2008-1, RB | ||||||||
| 0.040%, 10/02/14(A) (B) (C) | 2,730 | 2,730 | ||||||
| San Mateo, Unified High School District, GO, ETM | ||||||||
| 0.190%, 02/15/15(F) | 1,000 | 999 | ||||||
| Santa Clara Valley, Transportation Authority, Ser D, RB | ||||||||
| 0.040%, 10/02/14(A) (C) | 18,000 | 18,000 | ||||||
| Southern California, Public Power Authority, Magnolia Power Project, Ser A-1, RB | ||||||||
| 0.030%, 10/01/14(A) (B) (C) | 11,045 | 11,045 | ||||||
| Southern California, Public Power Authority, Southern Transmission Project, Ser A, RB, AGM | ||||||||
| 0.050%, 10/01/14(A) (C) | 15,000 | 15,000 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 30
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Money Market Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| University of California, Regents Medical Center, Ser B-1, RB | ||||||||
| 0.010%, 10/01/14(A) (C) | $ | 3,320 | $ | 3,320 | ||||
| University of California, Ser AL-2, RB | ||||||||
| 0.030%, 10/02/14(A) (C) | 5,000 | 5,000 | ||||||
| Ventura County, TRAN | ||||||||
| 1.500%, 07/01/15 | 5,000 | 5,051 | ||||||
| Ventura County, Public Financing Authority, Ser 2008-3380X, RB | ||||||||
| 0.080%, 10/02/14(A) (C) (E) | 4,225 | 4,225 | ||||||
| Ventura County, Public Financing Authority, Ser 2008-3381X, RB | ||||||||
| 0.080%, 10/02/14(A) (C) (E) | 2,265 | 2,265 | ||||||
| Total California | 677,470 | |||||||
| Colorado [0.7%] | ||||||||
| Colorado State, Housing & Finance Authority, RB | ||||||||
| 0.040%, 10/01/14(A) (C) | 3,300 | 3,300 | ||||||
| Colorado State, Housing & Finance Authority, Ser B-3, RB | ||||||||
| 0.040%, 10/01/14(A) (C) | 3,200 | 3,200 | ||||||
| Total Colorado | 6,500 | |||||||
| Florida [0.5%] | ||||||||
| Jacksonville, Ser A, RB | ||||||||
| 0.050%, 10/02/14(A) (C) | 4,135 | 4,135 | ||||||
| Iowa [0.2%] | ||||||||
| Iowa State, Finance Authority, Ser C, RB, GNMA/FNMA, AMT | ||||||||
| 0.080%, 10/02/14(A) (C) | 1,500 | 1,500 | ||||||
| Utah [1.7%] | ||||||||
| Utah Housing, Ser A-1, RB, AMT | ||||||||
| 0.080%, 10/01/14(A) (C) | 3,895 | 3,895 | ||||||
| Utah Housing, Ser B, RB, AMT | ||||||||
| 0.080%, 10/01/14(A) (C) | 3,395 | 3,395 | ||||||
| Utah Housing, Ser G-2, RB, AMT | ||||||||
| 0.080%, 10/01/14(A) (C) | 8,040 | 8,040 | ||||||
| Total Utah | 15,330 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Washington [0.1%] | ||||||||
| Washington State, Housing Finance Commission, LTC Properties Inc. Project, RB | ||||||||
| 0.080%, 10/02/14 | $ | 1,300 | $ | 1,300 | ||||
| Wyoming [0.7%] | ||||||||
| Wyoming Community Development Authority, Ser 11, RB, AMT | ||||||||
| 0.070%, 10/02/14(A) (C) | 6,000 | 6,000 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $712,235) | 712,235 | |||||||
| Commercial Paper [16.5%] | ||||||||
| California [16.5%] | ||||||||
| California State, Ser A-2 | ||||||||
| 0.070%, 11/04/14 | 10,000 | 10,000 | ||||||
| California State, Ser A-6 | ||||||||
| 0.060%, 10/03/14 | 5,000 | 5,000 | ||||||
| California State, Department of Water Resources | ||||||||
| 0.070%, 10/16/14 | 1,001 | 1,001 | ||||||
| 0.070%, 11/12/14 | 26,701 | 26,701 | ||||||
| California State, Educational Facilities Authority | ||||||||
| 0.130%, 10/16/14 | 25,000 | 25,000 | ||||||
| Sacramento, Municipal Utility District | ||||||||
| 0.080%, 12/08/14 | 10,500 | 10,500 | ||||||
| San Diego, Water Authority | ||||||||
| 0.070%, 10/03/14 | 15,000 | 15,000 | ||||||
| 0.080%, 12/04/14 | 12,100 | 12,100 | ||||||
| San Francisco City & County | ||||||||
| 0.070%, 10/08/14 | 15,000 | 15,000 | ||||||
| 0.080%, 11/05/14 | 15,245 | 15,245 | ||||||
| Santa Clara Valley, Water District | ||||||||
| 0.080%, 11/25/14 | 13,865 | 13,865 | ||||||
| Total California | 149,412 | |||||||
| Total Commercial Paper | ||||||||
| (Cost $149,412) | 149,412 | |||||||
| Total Investments [95.1%] | ||||||||
| (Cost $861,647) | $ | 861,647 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 31
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Money Market Fund (concluded)
Percentages are based on Net Assets of $906,342 (000).
| (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 September 30, 2014. |
| (D) | Pre-Refunded Security — The maturity date shown is the pre-refunded date. |
| (E) | 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 September 30, 2014, the value of these securities amounted to $74,720 (000), representing 8.2% of the net assets of the Fund. |
| (F) | Zero coupon security. The rate reported is the effective yield at time of purchase. |
AGM — Assured Guarantee Municipal
AMBAC — American Municipal Bond Assurance Company
AMT — Alternative Minimum Tax (subject to)
COP — Certificate of Participation
ETM — Escrowed to Maturity
FNMA — Federal National Mortgage Association
GO — General Obligation
NATL-RE — National Public Finance Guarantee Corporation
RAN — Revenue Anticipation Note
RB — Revenue Bond
SAB — Special Assessment Board
Ser — Series
TRAN — Tax and Revenue Anticipation Note
As of September 30, 2014, all of the Fund’s investments are Level 2 in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 32
schedule of investments
September 30, 2014
City National Rochdale Limited Maturity Fixed Income Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Corporate Bonds [49.5%] | ||||||||
| Banks [23.9%] | ||||||||
| Bank of America, MTN | ||||||||
| 6.400%, 08/28/17 | $ | 940 | $ | 1,057 | ||||
| Barclays Bank, MTN | ||||||||
| 2.989%, 01/10/14(A) | 545 | 545 | ||||||
| Citigroup | ||||||||
| 1.934%, 05/15/18(A) | 805 | 838 | ||||||
| Deutsche Bank | ||||||||
| 3.250%, 01/11/16 | 900 | 928 | ||||||
| Goldman Sachs Group | ||||||||
| 6.150%, 04/01/18 | 730 | 823 | ||||||
| Korea Development Bank | ||||||||
| 3.250%, 03/09/16 | 575 | 592 | ||||||
| Morgan Stanley, MTN | ||||||||
| 5.950%, 12/28/17 | 745 | 834 | ||||||
| Wachovia | ||||||||
| 5.750%, 06/15/17 | 860 | 958 | ||||||
| Wells Fargo | ||||||||
| 2.125%, 04/22/19 | 40 | 39 | ||||||
| Total Banks | 6,614 | |||||||
| Diversified Operations [3.6%] | ||||||||
| Glencore Funding | ||||||||
| 1.700%, 05/27/16(B) | 1,000 | 1,007 | ||||||
| Financial Services [6.6%] | ||||||||
| Daimler Finance North America | ||||||||
| 1.450%, 08/01/16(B) | 850 | 856 | ||||||
| General Electric Capital, MTN | ||||||||
| 2.950%, 05/09/16 | 950 | 983 | ||||||
| Total Financial Services | 1,839 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Oil, Gas & Consumable Fuels [3.6%] | ||||||||
| ConocoPhillips Canada Funding I | ||||||||
| 5.625%, 10/15/16 | $ | 900 | $ | 989 | ||||
| Petroleum & Fuel Products [3.5%] | ||||||||
| Occidental Petroleum | ||||||||
| 1.750%, 02/15/17 | 940 | 952 | ||||||
| Telephones & Telecommunications [8.3%] | ||||||||
| America Movil | ||||||||
| 1.235%, 03/12/14(A) | 1,000 | 1,011 | ||||||
| AT&T | ||||||||
| 2.400%, 08/15/16 | 1,000 | 1,024 | ||||||
| Verizon Communications | ||||||||
| 1.764%, 03/17/14(A) | 250 | 256 | ||||||
| Total Telephones & Telecommunications | 2,291 | |||||||
| Total Corporate Bonds | ||||||||
| (Cost $13,626) | 13,692 | |||||||
| U.S. Government Agency Obligations [26.1%] | ||||||||
| Farmer Mac Guaranteed Notes Trust 2007-1 | ||||||||
| 5.125%, 04/19/17(B) | 1,000 | 1,101 | ||||||
| FFCB | ||||||||
| 0.290%, 01/21/16 | 830 | 828 | ||||||
| 0.204%, 07/17/14 | 395 | 395 | ||||||
| FNMA | ||||||||
| 5.000%, 03/15/16 | 980 | 1,045 | ||||||
| 1.375%, 11/15/16 | 800 | 812 | ||||||
| 1.000%, 09/27/17 | 900 | 896 | ||||||
| 0.500%, 03/30/16 | 1,200 | 1,201 | ||||||
| 0.174%, 01/16/14(A) | 940 | 941 | ||||||
| Total U.S. Government Agency Obligations | ||||||||
| (Cost $7,225) | 7,219 | |||||||
| U.S. Treasury Obligations [8.7%] | ||||||||
| U.S. Treasury Notes | ||||||||
| 3.125%, 10/31/16 | 625 | 657 | ||||||
| 1.875%, 08/31/17 | 820 | 839 | ||||||
| 1.000%, 08/31/16 | 900 | 907 | ||||||
| Total U.S. Treasury Obligations | ||||||||
| (Cost $2,405) | 2,403 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 33
schedule of investments
September 30, 2014
City National Rochdale Limited Maturity Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Municipal Bonds [5.9%] | ||||||||
| California [2.5%] | ||||||||
| Southern California Public Power Authority, Sub-Ser B, AGM, ETM | ||||||||
| 6.930%, 05/15/17 | $ | 595 | $ | 681 | ||||
| Florida [3.4%] | ||||||||
| Florida State, Hurricane Catastrophe Fund Finance, Ser A, RB | ||||||||
| 2.107%, 07/01/18 | 930 | 934 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $1,595) | 1,615 | |||||||
| U.S. Government Mortgage-Backed Obligations [4.0%] | ||||||||
| FHLMC, Pool G12806 | ||||||||
| 5.500%, 09/01/22 | 51 | 56 | ||||||
| FHLMC, Pool G18247 | ||||||||
| 5.000%, 04/01/23 | 31 | 33 | ||||||
| FHLMC, Pool G18251 | ||||||||
| 5.000%, 05/01/23 | 48 | 52 | ||||||
| FHLMC, Pool G18321 | ||||||||
| 4.500%, 08/01/24 | 25 | 27 | ||||||
| FHLMC, Pool J04241 | ||||||||
| 5.500%, 01/01/22 | 25 | 27 | ||||||
| FHLMC, Pool J04459 | ||||||||
| 5.000%, 03/01/22 | 27 | 29 | ||||||
| FHLMC, Pool J04508 | ||||||||
| 5.000%, 03/01/22 | 15 | 15 | ||||||
| FHLMC, Pool J07575 | ||||||||
| 5.000%, 04/01/23 | 23 | 25 | ||||||
| FHLMC REMIC, Ser 2011-3877, Cl ND, Pool FHR 3877 ND | ||||||||
| 3.000%, 02/15/25 | 401 | 415 | ||||||
| FNMA, Pool 837196 | ||||||||
| 5.500%, 02/01/21 | 54 | 58 | ||||||
| FNMA, Pool 933915 | ||||||||
| 4.500%, 06/01/23 | 31 | 33 | ||||||
| FNMA, Pool 961783 | ||||||||
| 4.500%, 02/01/23 | 47 | 51 | ||||||
| FNMA, Ser 2010-39, Cl PD, Pool FNR 2010-39 PD | ||||||||
| 3.000%, 06/25/38 | 285 | 291 | ||||||
| Total U.S. Government Mortgage-Backed Obligations | ||||||||
| (Cost $1,063) | 1,112 | |||||||
| Description | Face Amount (000)/Shares | Value (000) | ||||||
| Sovereign Debt [3.5%] | ||||||||
| Province of Ontario, Canada | ||||||||
| 1.600%, 09/21/16 | $ | 950 | $ | 965 | ||||
| Total Sovereign Debt | ||||||||
| (Cost $959) | 965 | |||||||
| Asset-Backed Security [1.2%] | ||||||||
| Hyundai Auto Receivables Trust, Ser 2013-B, Cl A2 | ||||||||
| 0.530%, 03/15/16 | 341 | 341 | ||||||
| Total Asset-Backed Security | ||||||||
| (Cost $341) | 341 | |||||||
| Short-Term Investments [0.6%] | ||||||||
| City National Rochdale Government Money Market Fund, 0.010%** ‡ | 87,759 | 88 | ||||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 87,759 | 88 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $176) | 176 | |||||||
| Total Investments [99.5%] | ||||||||
| (Cost $27,390) | $ | 27,523 | ||||||
Percentages are based on Net Assets of $27,655 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (A) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (B) | 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 September 30, 2014, the value of these securities amounted to $2,964 (000), representing 10.7% of the net assets of the Fund. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 34
schedule of investments
September 30, 2014
City National Rochdale Limited Maturity Fixed Income Fund (concluded)
AGM — Assured Guarantee Municipal
Cl — Class
ETM — Escrowed to Maturity
FFCB — Federal Farm Credit 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 list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds | $ | — | $ | 13,692 | $ | — | $ | 13,692 | ||||||||
| U.S. Government Agency Obligations | — | 7,219 | — | 7,219 | ||||||||||||
| U.S. Treasury Obligations | — | 2,403 | — | 2,403 | ||||||||||||
| Municipal Bonds | — | 1,615 | — | 1,615 | ||||||||||||
| U.S. Government Mortgage-Backed Obligations | — | 1,112 | — | 1,112 | ||||||||||||
| Sovereign Debt | — | 965 | — | 965 | ||||||||||||
| Asset-Backed Security | — | 341 | — | 341 | ||||||||||||
| Short-Term Investments | 176 | — | — | 176 | ||||||||||||
| Total Investments in Securities | $ | 176 | $ | 27,347 | $ | — | $ | 27,523 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 35
schedule of investments
September 30, 2014
City National Rochdale Government Bond Fund
| Description | Face Amount (000) | Value (000) | ||||||
| U.S. Government Agency Obligations [64.2%] | ||||||||
| Egypt Government AID Bond | ||||||||
| 4.450%, 09/15/15 | $ | 3,000 | $ | 3,119 | ||||
| FFCB | ||||||||
| 0.290%, 01/21/16 | 5,250 | 5,235 | ||||||
| 0.239%, 10/26/14(A) | 10,000 | 10,004 | ||||||
| FHLB | ||||||||
| 1.150%, 07/25/18 | 1,520 | 1,491 | ||||||
| 1.000%, 06/09/17 | 6,675 | 6,682 | ||||||
| FHLMC | ||||||||
| 1.250%, 05/12/17 | 2,350 | 2,366 | ||||||
| 1.000%, 06/29/17 | 4,000 | 3,994 | ||||||
| 1.000%, 09/29/17 | 4,130 | 4,111 | ||||||
| FNMA | ||||||||
| 5.000%, 03/15/16 | 5,475 | 5,839 | ||||||
| 5.000%, 02/13/17 | 5,200 | 5,704 | ||||||
| 4.875%, 12/15/16 | 5,000 | 5,454 | ||||||
| 2.430%, 10/09/19(B) | 5,805 | 5,149 | ||||||
| 2.375%, 04/11/16 | 5,000 | 5,147 | ||||||
| 1.875%, 02/19/19 | 445 | 446 | ||||||
| 1.625%, 11/27/18 | 5,000 | 4,990 | ||||||
| 1.000%, 10/16/17 | 7,000 | 6,925 | ||||||
| 0.875%, 02/08/18 | 5,500 | 5,412 | ||||||
| 0.875%, 05/21/18 | 4,500 | 4,407 | ||||||
| 0.625%, 08/26/16 | 4,805 | 4,808 | ||||||
| 0.174%, 10/15/14(A) | 10,000 | 10,006 | ||||||
| Tennessee Valley Authority, Ser E | ||||||||
| 6.250%, 12/15/17 | 8,000 | 9,235 | ||||||
| Total U.S. Government Agency Obligations | ||||||||
| (Cost $110,371) | 110,524 | |||||||
| U.S. Treasury Obligations [31.1%] | ||||||||
| U.S. Treasury Bonds | ||||||||
| 2.625%, 02/29/16 | 5,000 | 5,163 | ||||||
| 2.195%, 11/15/21(B) | 6,100 | 5,179 | ||||||
| U.S. Treasury Notes | ||||||||
| 3.250%, 05/31/16 | 5,000 | 5,232 | ||||||
| 3.250%, 03/31/17 | 5,000 | 5,294 | ||||||
| 3.000%, 02/28/17 | 2,415 | 2,540 | ||||||
| 2.875%, 03/31/18 | 5,000 | 5,262 | ||||||
| Description | Face Amount (000)/Shares | Value (000) | ||||||
| 2.750%, 02/28/18 | $ | 5,000 | $ | 5,241 | ||||
| 2.375%, 07/31/17 | 5,000 | 5,186 | ||||||
| 2.000%, 11/30/20 | 5,000 | 4,973 | ||||||
| 1.375%, 09/30/18 | 5,000 | 4,969 | ||||||
| 0.875%, 02/28/17 | 4,500 | 4,505 | ||||||
| Total U.S. Treasury Obligations | ||||||||
| (Cost $53,711) | 53,544 | |||||||
| U.S. Government Mortgage-Backed Obligations [1.7%] | ||||||||
| FHLMC REMIC, Ser 2011-3877, Cl ND | ||||||||
| 3.000%, 02/15/25 | 1,592 | 1,646 | ||||||
| FNMA ARM, Pool 766620 | ||||||||
| 2.419%, 10/01/14(A) | 207 | 224 | ||||||
| FNMA REMIC, Ser 2011-144, Cl CE | ||||||||
| 1.250%, 06/25/35 | 611 | 613 | ||||||
| GNMA, Pool 329656 | ||||||||
| 8.000%, 08/15/22 | 5 | 5 | ||||||
| GNMA, Pool 376533 | ||||||||
| 7.500%, 06/15/24 | 1 | 1 | ||||||
| GNMA, Pool 398660 | ||||||||
| 7.500%, 05/15/26 | 2 | 2 | ||||||
| GNMA, Pool 497411 | ||||||||
| 6.000%, 01/15/29 | 4 | 5 | ||||||
| GNMA, Pool 571376 | ||||||||
| 7.000%, 12/15/16 | 2 | 2 | ||||||
| GNMA, Pool 584992 | ||||||||
| 7.500%, 04/15/32 | 28 | 31 | ||||||
| GNMA ARM, Pool G2 81318 | ||||||||
| 1.625%, 10/01/14(A) | 264 | 275 | ||||||
| GNMA ARM, Pool G2 81447 | ||||||||
| 1.625%, 10/01/14(A) | 55 | 57 | ||||||
| Total U.S. Government Mortgage-Backed Obligations | ||||||||
| (Cost $2,772) | 2,861 | |||||||
| Short-Term Investments [2.7%] | ||||||||
| City National Rochdale Government Money Market Fund, 0.010%** ‡ | 2,370,953 | 2,371 | ||||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 2,370,953 | 2,371 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $4,742) | 4,742 | |||||||
| Total Investments [99.7%] | ||||||||
| (Cost $171,596) | $ | 171,671 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 36
schedule of investments
September 30, 2014
City National Rochdale Government Bond Fund (concluded)
Percentages are based on Net Assets of $172,234 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (A) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (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
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
REMIC — Real Estate Mortgage Investment Conduit
Ser — Series
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| U.S. Government Agency Obligations | $ | — | $ | 110,524 | $ | — | $ | 110,524 | ||||||||
| U.S. Treasury Obligations | — | 53,544 | — | 53,544 | ||||||||||||
| U.S. Government Mortgage-Backed Obligations | — | 2,861 | — | 2,861 | ||||||||||||
| Short-Term Investments | 4,742 | — | — | 4,742 | ||||||||||||
| Total Investments in Securities | $ | 4,742 | $ | 166,929 | $ | — | $ | 171,671 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 37
schedule of investments
September 30, 2014
City National Rochdale Corporate Bond Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Corporate Bonds [88.9%] | ||||||||
| Banks [13.3%] | ||||||||
| Bank of America, MTN | ||||||||
| 6.400%, 08/28/17 | $ | 400 | $ | 450 | ||||
| Barclays Bank, MTN | ||||||||
| 2.989%, 10/10/14(A) | 1,950 | 1,949 | ||||||
| Citigroup | ||||||||
| 5.850%, 08/02/16 | 980 | 1,060 | ||||||
| 5.500%, 02/15/17 | 250 | 271 | ||||||
| Countrywide Financial | ||||||||
| 6.250%, 05/15/16 | 1,200 | 1,294 | ||||||
| Fifth Third Bank | ||||||||
| 1.150%, 11/18/16 | 3,060 | 3,061 | ||||||
| HSBC Finance | ||||||||
| 5.250%, 04/15/15 | 1,250 | 1,282 | ||||||
| JPMorgan Chase | ||||||||
| 6.300%, 04/23/19 | 2,000 | 2,320 | ||||||
| 6.000%, 01/15/18 | 405 | 456 | ||||||
| Morgan Stanley, MTN | ||||||||
| 5.950%, 12/28/17 | 465 | 521 | ||||||
| National Australia Bank, MTN | ||||||||
| 2.750%, 03/09/17 | 480 | 497 | ||||||
| Nordea Bank | ||||||||
| 2.375%, 04/04/19(B) | 1,500 | 1,501 | ||||||
| UBS, MTN | ||||||||
| 5.875%, 12/20/17 | 2,000 | 2,252 | ||||||
| Wells Fargo Bank | ||||||||
| 5.750%, 05/16/16 | 2,400 | 2,586 | ||||||
| Total Banks | 19,500 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Broadcasting & Cable [1.5%] | ||||||||
| Time Warner Cable | ||||||||
| 5.000%, 02/01/20 | $ | 2,000 | $ | 2,222 | ||||
| Coatings/Paint [1.0%] | ||||||||
| Sherwin-Williams | ||||||||
| 3.125%, 12/15/14 | 1,450 | 1,459 | ||||||
| Computers-Memory Devices [0.7%] | ||||||||
| NetApp | ||||||||
| 2.000%, 12/15/17 | 1,000 | 1,005 | ||||||
| Diversified Metals & Mining [1.7%] | ||||||||
| Rio Tinto | ||||||||
| 2.250%, 09/20/16 | 2,500 | 2,559 | ||||||
| Diversified Minerals [3.3%] | ||||||||
| BHP Billiton | ||||||||
| 5.250%, 12/15/15 | 2,377 | 2,510 | ||||||
| Teck Resources | ||||||||
| 3.150%, 01/15/17 | 1,250 | 1,289 | ||||||
| 2.500%, 02/01/18 | 1,000 | 1,001 | ||||||
| Total Diversified Minerals | 4,800 | |||||||
| Diversified Operations [2.5%] | ||||||||
| Glencore Funding | ||||||||
| 1.700%, 05/27/16(B) | 1,500 | 1,510 | ||||||
| Siemens Finc | ||||||||
| 5.750%, 10/17/16(B) | 2,000 | 2,192 | ||||||
| Total Diversified Operations | 3,702 | |||||||
| Drugs [2.4%] | ||||||||
| AbbVie | ||||||||
| 1.200%, 11/06/15 | 1,000 | 1,004 | ||||||
| Wyeth | ||||||||
| 5.500%, 02/15/16 | 2,000 | 2,134 | ||||||
| 5.450%, 04/01/17 | 330 | 365 | ||||||
| Total Drugs | 3,503 | |||||||
| Electric Utilities [3.2%] | ||||||||
| American Electric Power | ||||||||
| 1.650%, 12/15/17 | 1,000 | 1,000 | ||||||
| Commonwealth Edison | ||||||||
| 6.950%, 07/15/18 | 1,000 | 1,165 | ||||||
| Exelon | ||||||||
| 4.900%, 06/15/15 | 1,138 | 1,171 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 38
schedule of investments
September 30, 2014
City National Rochdale Corporate Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Exelon Generation | ||||||||
| 6.200%, 10/01/17 | $ | 1,200 | $ | 1,349 | ||||
| Total Electric Utilities | 4,685 | |||||||
| Financial Services [18.0%] | ||||||||
| American Honda Finance | ||||||||
| 1.600%, 02/16/18(B) | 1,900 | 1,893 | ||||||
| Caisse Centrale Desjardins du Quebec | ||||||||
| 2.650%, 09/16/15(B) | 3,000 | 3,063 | ||||||
| Daimler Finance North America | ||||||||
| 2.250%, 07/31/19(B) | 2,900 | 2,878 | ||||||
| Ford Motor Credit | ||||||||
| 8.000%, 12/15/16 | 1,000 | 1,138 | ||||||
| 2.375%, 01/16/18 | 1,000 | 1,009 | ||||||
| General Electric Capital, MTN | ||||||||
| 5.300%, 02/11/21 | 2,500 | 2,817 | ||||||
| 2.950%, 05/09/16 | 50 | 52 | ||||||
| Harley Davidson Funding | ||||||||
| 6.800%, 06/15/18(B) | 2,500 | 2,919 | ||||||
| Harley-Davidson Financial Services, MTN | ||||||||
| 3.875%, 03/15/16(B) | 1,000 | 1,042 | ||||||
| Nissan Motor Acceptance, MTN | ||||||||
| 1.950%, 09/12/17(B) | 2,000 | 2,020 | ||||||
| PACCAR Financial, MTN | ||||||||
| 0.800%, 02/08/16 | 1,500 | 1,504 | ||||||
| Toyota Motor Credit, MTN | ||||||||
| 2.050%, 01/12/17 | 2,000 | 2,045 | ||||||
| VW Credit, MTN | ||||||||
| 1.875%, 10/13/16 | 3,000 | 3,049 | ||||||
| Western Union | ||||||||
| 5.930%, 10/01/16 | 1,000 | 1,090 | ||||||
| Total Financial Services | 26,519 | |||||||
| Food, Beverage & Tobacco [0.7%] | ||||||||
| Dr Pepper Snapple Group | ||||||||
| 2.900%, 01/15/16 | 1,000 | 1,027 | ||||||
| Home Decoration Products [0.4%] | ||||||||
| Newell Rubbermaid | ||||||||
| 2.000%, 06/15/15 | 500 | 505 | ||||||
| Insurance [5.3%] | ||||||||
| Aflac | ||||||||
| 8.500%, 05/15/19 | 1,100 | 1,392 | ||||||
| Berkshire Hathaway | ||||||||
| 2.100%, 08/14/19 | 2,000 | 1,989 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Genworth Financial | ||||||||
| 7.700%, 06/15/20 | $ | 1,400 | $ | 1,679 | ||||
| Metropolitan Life Global Funding I, MTN | ||||||||
| 1.875%, 06/22/18(B) | 2,700 | 2,686 | ||||||
| Total Insurance | 7,746 | |||||||
| Investment Banker/Broker Dealer [7.5%] | ||||||||
| Deutsche Bank | ||||||||
| 1.400%, 02/13/17 | 2,500 | 2,499 | ||||||
| Goldman Sachs Group | ||||||||
| 5.625%, 01/15/17 | 1,700 | 1,846 | ||||||
| 2.625%, 01/31/19 | 500 | 499 | ||||||
| Jefferies Group | ||||||||
| 8.500%, 07/15/19 | 1,370 | 1,693 | ||||||
| Macquarie Group | ||||||||
| 6.000%, 01/14/20(B) | 2,000 | 2,244 | ||||||
| Morgan Stanley, MTN | ||||||||
| 6.250%, 08/28/17 | 2,000 | 2,247 | ||||||
| Total Investment Banker/Broker Dealer | 11,028 | |||||||
| Medical Products & Services [1.7%] | ||||||||
| Genentech | ||||||||
| 4.750%, 07/15/15 | 2,500 | 2,585 | ||||||
| Medical-HMO [1.0%] | ||||||||
| UnitedHealth Group | ||||||||
| 1.625%, 03/15/19 | 1,500 | 1,468 | ||||||
| Petroleum & Fuel Products [9.6%] | ||||||||
| BP Capital Markets | ||||||||
| 1.375%, 05/10/18 | 2,800 | 2,750 | ||||||
| Kinder Morgan Energy Partners | ||||||||
| 6.000%, 02/01/17 | 1,000 | 1,099 | ||||||
| Plains Exploration & Production | ||||||||
| 6.125%, 06/15/19 | 1,300 | 1,423 | ||||||
| Shell International Finance | ||||||||
| 3.250%, 09/22/15 | 2,500 | 2,569 | ||||||
| Sunoco Logistics Partners Operations | ||||||||
| 4.650%, 02/15/22 | 1,300 | 1,383 | ||||||
| Total Capital International | ||||||||
| 1.550%, 06/28/17 | 425 | 428 | ||||||
| 1.500%, 02/17/17 | 2,980 | 3,006 | ||||||
| Transocean | ||||||||
| 6.500%, 11/15/20 | 1,250 | 1,328 | ||||||
| Total Petroleum & Fuel Products | 13,986 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 39
schedule of investments
September 30, 2014
City National Rochdale Corporate Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Real Estate Investment Trusts [4.8%] | ||||||||
| American Tower | ||||||||
| 7.250%, 05/15/19 | $ | 1,200 | $ | 1,432 | ||||
| HCP | ||||||||
| 5.625%, 05/01/17 | 1,000 | 1,100 | ||||||
| Health Care REIT | ||||||||
| 4.700%, 09/15/17 | 1,000 | 1,086 | ||||||
| Kimco Realty | ||||||||
| 6.875%, 10/01/19 | 1,080 | 1,283 | ||||||
| Simon Property Group | ||||||||
| 6.100%, 05/01/16 | 2,000 | 2,142 | ||||||
| Total Real Estate Investment Trusts | 7,043 | |||||||
| Regional Authority [0.9%] | ||||||||
| Province of Ontario, Canada | ||||||||
| 1.600%, 09/21/16 | 1,360 | 1,382 | ||||||
| Retail [4.0%] | ||||||||
| AutoZone | ||||||||
| 4.000%, 11/15/20 | 1,400 | 1,484 | ||||||
| CVS Health | ||||||||
| 2.250%, 08/12/19 | 1,000 | 990 | ||||||
| Lowe’s | ||||||||
| 6.100%, 09/15/17 | 3,000 | 3,395 | ||||||
| Total Retail | 5,869 | |||||||
| Telephones & Telecommunications [4.5%] | ||||||||
| America Movil | ||||||||
| 5.000%, 03/30/20 | 2,600 | 2,845 | ||||||
| AT&T | ||||||||
| 2.950%, 05/15/16 | 2,600 | 2,685 | ||||||
| Telefonica Emisiones SAU | ||||||||
| 6.421%, 06/20/16 | 1,000 | 1,087 | ||||||
| Total Telephones & Telecommunications | 6,617 | |||||||
| Trucking & Leasing [0.9%] | ||||||||
| Penske Truck Leasing | ||||||||
| 3.750%, 05/11/17(B) | 750 | 788 | ||||||
| 3.125%, 05/11/15(B) | 500 | 507 | ||||||
| Total Trucking & Leasing | 1,295 | |||||||
| Total Corporate Bonds | ||||||||
| (Cost $128,608) | 130,505 | |||||||
| Description | Face Amount (000)/Shares | Value (000) | ||||||
| Municipal Bonds [3.0%] | ||||||||
| California [0.2%] | ||||||||
| California State, GO | ||||||||
| 5.700%, 11/01/21 | $ | 185 | $ | 217 | ||||
| Florida [2.8%] | ||||||||
| Florida State, Hurricane Catastrophe Fund Finance, Ser A, RB | ||||||||
| 2.107%, 07/01/18 | 4,130 | 4,150 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $4,317) | 4,367 | |||||||
| Unaffiliated Registered Investment Company [2.0%] | ||||||||
| Ivy High Income Fund | 343,249 | 2,918 | ||||||
| Total Unaffiliated Registered Investment Company | ||||||||
| (Cost $3,000) | 2,918 | |||||||
| Sovereign Debt [1.7%] | ||||||||
| Petroleum & Fuel Products [1.7%] | ||||||||
| Korea National Oil | ||||||||
| 2.875%, 11/09/15(B) | 1,000 | 1,020 | ||||||
| 2.750%, 01/23/19 | 1,500 | 1,516 | ||||||
| Total Petroleum & Fuel Products | 2,536 | |||||||
| Total Sovereign Debt | ||||||||
| (Cost $2,520) | 2,536 | |||||||
| Asset-Backed Security [0.4%] | ||||||||
| Hyundai Auto Receivables Trust, Ser 2013-B, Cl A2 | ||||||||
| 0.530%, 03/15/16 | 512 | 512 | ||||||
| Total Asset-Backed Security | ||||||||
| (Cost $512) | 512 | |||||||
| U.S. Government Mortgage-Backed Obligation [0.0%] | ||||||||
| FNMA REMIC, Ser 2002-56, Cl MC | ||||||||
| 5.500%, 09/25/17 | 68 | 70 | ||||||
| Total U.S. Government Mortgage-Backed Obligation | ||||||||
| (Cost $67) | 70 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 40
schedule of investments
September 30, 2014
City National Rochdale Corporate Bond Fund (concluded)
| Description | Shares | Value (000) | ||||||
| Short-Term Investments [3.0%] | ||||||||
| City National Rochdale Prime Money Market Fund, Institutional Class, 0.010%** ‡ | 2,221,463 | $ | 2,222 | |||||
| SEI Daily Income Trust, Prime Obligation Fund, Cl A, 0.010%** | 2,221,463 | 2,222 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $4,444) | 4,444 | |||||||
| Total Investments [99.0%] | ||||||||
| (Cost $143,468) | $ | 145,352 | ||||||
Percentages are based on Net Assets of $146,774 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (A) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (B) | 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 September 30, 2014, the value of these securities amounted to $26,264 (000), representing 17.9% of the net assets of the Fund. |
Cl — Class
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
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds | $ | — | $ | 130,505 | $ | — | $ | 130,505 | ||||||||
| Municipal Bonds | — | 4,367 | — | 4,367 | ||||||||||||
| Registered Investment Company | 2,918 | — | — | 2,918 | ||||||||||||
| Sovereign Debt | — | 2,536 | — | 2,536 | ||||||||||||
| Asset-Backed Security | — | 512 | — | 512 | ||||||||||||
| U.S. Government Mortgage-Backed Obligation | — | 70 | — | 70 | ||||||||||||
| Short-Term Investments | 4,444 | — | — | 4,444 | ||||||||||||
| Total Investments in Securities | $ | 7,362 | $ | 137,990 | $ | — | $ | 145,352 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 41
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Bond Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Municipal Bonds [96.7%] | ||||||||
| California [92.7%] | ||||||||
| Beverly Hills, Community Facilities District, Ser 2002-A | ||||||||
| 4.000%, 09/01/22 | $ | 250 | $ | 275 | ||||
| Brea, Redevelopment Agency, Redevelopment Project AB, TA | ||||||||
| 5.000%, 08/01/20 | 500 | 592 | ||||||
| California State, Department of Water Resources, Ser F-3, RB | ||||||||
| Callable 05/01/18 @ 100 | ||||||||
| 4.375%, 05/01/20 | 200 | 225 | ||||||
| California State, Economic Recovery Authority, Ser A, GO | ||||||||
| Callable 07/01/19 @ 100 | ||||||||
| 5.000%, 07/01/20 | 1,000 | 1,179 | ||||||
| California State, GO | ||||||||
| Callable 03/01/15 @ 100 | ||||||||
| 5.000%, 03/01/16 | 1,500 | 1,528 | ||||||
| California State, GO | ||||||||
| 4.000%, 02/01/18 | 1,000 | 1,105 | ||||||
| California State, GO | ||||||||
| 4.000%, 02/01/19 | 1,000 | 1,122 | ||||||
| California State, GO | ||||||||
| 5.000%, 11/01/19 | 1,000 | 1,182 | ||||||
| California State, GO | ||||||||
| 5.000%, 09/01/20 | 1,000 | 1,193 | ||||||
| California State, GO | ||||||||
| 5.000%, 09/01/21 | 1,200 | 1,445 | ||||||
| California State, GO | ||||||||
| 5.000%, 12/01/21 | 1,000 | 1,207 | ||||||
| California State, GO | ||||||||
| 5.250%, 09/01/22 | 1,000 | 1,227 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| California State, GO | ||||||||
| Callable 11/01/20 @ 100 | ||||||||
| 5.000%, 11/01/22 | $ | 1,025 | $ | 1,216 | ||||
| California State, GO | ||||||||
| Callable 12/01/23 @ 100 | ||||||||
| 5.000%, 12/01/26 | 1,000 | 1,193 | ||||||
| California State, GO | ||||||||
| Callable 06/01/19 @ 100 | ||||||||
| 3.000%, 12/01/32(A) | 1,000 | 1,068 | ||||||
| California State, Health Facilities Financing Authority, Catholic Healthcare, Ser A, RB | ||||||||
| Callable 03/01/21 @ 100 | ||||||||
| 5.250%, 03/01/22 | 265 | 317 | ||||||
| California State, Health Facilities Financing Authority, Cedars-Sinai Medical Center, RB | ||||||||
| 5.000%, 08/15/17 | 750 | 840 | ||||||
| California State, Health Facilities Financing Authority, City of Hope, Ser A, RB | ||||||||
| 5.000%, 11/15/17 | 375 | 422 | ||||||
| California State, Health Facilities Financing Authority, Memorial Health Services Corp, Ser A, RB | ||||||||
| 5.000%, 10/01/15 | 450 | 472 | ||||||
| California State, Health Facilities Financing Authority, St. Joseph Health System, Ser B, RB | ||||||||
| 5.000%, 07/01/43(A) | 175 | 198 | ||||||
| California State, Health Facilities Financing Authority, St. Joseph Health System, Ser D, RB | ||||||||
| 5.000%, 07/01/43(A) | 500 | 591 | ||||||
| California State, Health Facilities Financing Authority, Sutter Health, Ser A, RB | ||||||||
| 5.500%, 08/15/17 | 500 | 569 | ||||||
| California State, Health Facilities Financing Authority, Sutter Health, Ser A, RB | ||||||||
| 5.500%, 08/15/18 | 125 | 146 | ||||||
| California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB | ||||||||
| 4.000%, 09/01/17 | 500 | 546 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 42
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB | ||||||||
| 5.000%, 09/01/22 | $ | 1,000 | $ | 1,201 | ||||
| California State, Public Works Board, Department of Corrections-Administration Project, Ser A, RB, AMBAC | ||||||||
| Callable 11/03/14 @ 100 | ||||||||
| 5.250%, 03/01/18 | 155 | 156 | ||||||
| California State, Public Works Board, Department of Corrections-State Prisons, Ser A, RB, AMBAC | ||||||||
| 5.000%, 12/01/19 | 850 | 944 | ||||||
| California State, Public Works Board, Judicial Council, Ser B, RB | ||||||||
| 5.000%, 10/01/23 | 475 | 574 | ||||||
| California State, Public Works Board, State Prisons, Ser C, RB | ||||||||
| 5.000%, 10/01/16 | 1,000 | 1,090 | ||||||
| California State, Public Works Board, Various Capital Projects, Ser A, RB | ||||||||
| 4.000%, 04/01/17 | 500 | 541 | ||||||
| California State, Public Works Board, Various Capital Projects, Ser G-1, RB | ||||||||
| Callable 10/01/19 @ 100 | ||||||||
| 5.250%, 10/01/23 | 250 | 291 | ||||||
| California State, Ser A5, GO | ||||||||
| Callable 10/01/14 @ 100 | ||||||||
| 0.030%, 05/01/34(A) (B) | 1,000 | 1,000 | ||||||
| California State, Ser E, GO | ||||||||
| Callable 06/01/18 @ 100 | ||||||||
| 0.937%, 12/01/29(A) | 1,000 | 1,015 | ||||||
| California Statewide, Communities Development Authority, Kaiser Permanente, Ser A, RB | ||||||||
| 5.000%, 04/01/19 | 850 | 990 | ||||||
| California Statewide, Communities Development Authority, Kaiser Permanente, Ser B, RB | ||||||||
| Callable 02/01/17 @ 100 | ||||||||
| 0.990%, 04/01/52(A) | 2,000 | 2,003 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| California Statewide, Communities Development Authority, Sutter Health, Ser A, RB | ||||||||
| 5.000%, 08/15/18 | $ | 200 | $ | 230 | ||||
| Carlsbad, Public Financing Authority, Municipal Golf Course Project, Ser A, RB, AMBAC | ||||||||
| 4.500%, 09/01/16 | 350 | 372 | ||||||
| Chula Vista, Elementary School District, School Building Project, Ser A, COP, AGM | ||||||||
| 5.000%, 09/01/22 | 1,000 | 1,181 | ||||||
| Chula Vista, Police Facility Project, COP | ||||||||
| 5.000%, 10/01/21 | 360 | 431 | ||||||
| El Dorado, Irrigation District, Ser A, RB, AGM | ||||||||
| 4.500%, 03/01/19 | 500 | 566 | ||||||
| Encinitas Unified School District, GO, NATL-RE | ||||||||
| 0.790%, 08/01/17(C) | 500 | 489 | ||||||
| Fairfield County, Redevelopment Agency, TA | ||||||||
| 4.000%, 08/01/17 | 2,630 | 2,872 | ||||||
| Gilroy, Public Facilities Fincancing Authority, RB | ||||||||
| 5.000%, 11/01/21 | 940 | 1,069 | ||||||
| Jurupa, Unified School District, GO, AGM | ||||||||
| 5.000%, 08/01/22 | 1,000 | 1,202 | ||||||
| Long Beach California, Harbor Revenue, Ser C, RB | ||||||||
| 4.000%, 11/15/18 | 500 | 563 | ||||||
| Los Angeles, Department of Airports, Ser C, RB | ||||||||
| 4.000%, 05/15/17 | 545 | 593 | ||||||
| Los Angeles, Department of Water & Power, Power Systems Revenue, Ser A, RB | ||||||||
| 5.000%, 07/01/19 | 500 | 591 | ||||||
| Los Angeles, Department of Water & Power, Ser C, RB | ||||||||
| 5.000%, 07/01/23 | 500 | 617 | ||||||
| Los Angeles, Municipal Improvement Authority, Capital Equipment, Ser A, RB | ||||||||
| 4.000%, 11/01/19 | 575 | 648 | ||||||
| Los Angeles, Municipal Improvement Authority, Real Property, Ser E, RB | ||||||||
| 5.000%, 09/01/15 | 275 | 287 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 43
schedule of investments
September 30, 2014
City National Rochdale 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 | $ | 532 | ||||
| Los Angeles, Ser A, GO | ||||||||
| 5.000%, 09/01/21 | 240 | 291 | ||||||
| Los Angeles, Ser B, GO | ||||||||
| Callable 09/01/21 @ 100 | ||||||||
| 5.000%, 09/01/22 | 500 | 604 | ||||||
| Los Angeles, Unified School District, Election of 2005, Ser E, GO, AGM | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 07/01/17(D) | 500 | 561 | ||||||
| Los Angeles, Unified School District, Headquarters Building Project, Ser A, COP | ||||||||
| 5.000%, 10/01/20 | 1,000 | 1,174 | ||||||
| Los Angeles, Unified School District, Headquarters Building Project, Ser B, COP | ||||||||
| Callable 10/01/22 @ 100 | ||||||||
| 5.000%, 10/01/25 | 1,000 | 1,156 | ||||||
| Los Angeles, Unified School District, Ser A, GO | ||||||||
| 5.000%, 07/01/18 | 350 | 405 | ||||||
| Los Angeles, Unified School District, Ser B, GO, AMBAC | ||||||||
| Callable 07/01/17 @ 100 | ||||||||
| 5.000%, 07/01/19 | 2,000 | 2,233 | ||||||
| Merced, Irrigation District, Ser A, RB, AGM | ||||||||
| 5.000%, 10/01/20 | 500 | 595 | ||||||
| Modesto, Irrigation District, Ser A, RB | ||||||||
| 5.000%, 07/01/17 | 1,000 | 1,120 | ||||||
| Northern California, Power Agency, Hydroelectric Project Number 1, Ser C, RB | ||||||||
| Callable 07/01/18 @ 100 | ||||||||
| 5.000%, 07/01/20 | 500 | 573 | ||||||
| Oakland-Alameda County, Coliseum Authority, Ser A, RB | ||||||||
| 5.000%, 02/01/20 | 795 | 931 | ||||||
| Orange County, Public Financing Authority, RB, NATL-RE | ||||||||
| 5.000%, 07/01/17 | 1,050 | 1,170 | ||||||
| Orange County, Sanitation District, Ser A, COP | ||||||||
| 3.000%, 02/01/17 | 500 | 530 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Petaluma, Joint Unified High School District, Election 2014, Ser A, GO | ||||||||
| 4.000%, 08/01/18 | $ | 595 | $ | 664 | ||||
| Port of Oakland, Ser B, RB, NATL-RE | ||||||||
| Callable 11/01/17 @ 100 | ||||||||
| 5.000%, 11/01/23 | 500 | 558 | ||||||
| Port of Oakland, Ser C, RB, NATL-RE | ||||||||
| 5.000%, 11/01/15 | 450 | 473 | ||||||
| Riverside County, Public Safety Communication, Ser A, COP, AMBAC | ||||||||
| 5.000%, 11/01/17 | 1,600 | 1,769 | ||||||
| Riverside, Public Financing Authority, Ser A, RB | ||||||||
| 5.000%, 11/01/21 | 1,000 | 1,158 | ||||||
| Roseville, Finance Authority, RB | ||||||||
| 4.000%, 02/01/18 | 500 | 551 | ||||||
| Sacramento County, Sanitation District Financing Authority, Sewer Revenue, Ser A, RB | ||||||||
| 5.000%, 12/01/20 | 500 | 597 | ||||||
| Sacramento, Area Flood Control Agency, Ser A, SAB, NATL-RE | ||||||||
| Callable 10/01/17 @ 100 | ||||||||
| 5.000%, 10/01/21 | 400 | 441 | ||||||
| Sacramento, Financing Authority, EPA Building Project, Ser A, RB | ||||||||
| 4.000%, 05/01/18 | 850 | 938 | ||||||
| Sacramento, Unified School District, Election of 2002, GO, NATL-RE | ||||||||
| Pre-Refunded @ 100 | ||||||||
| 5.000%, 07/01/15(D) | 300 | 311 | ||||||
| San Francisco City & County, Airports Commission, Ser B, RB | ||||||||
| 5.000%, 05/01/17 | 495 | 551 | ||||||
| San Francisco City & County, Multiple Capital Improvement Projects, Ser B, COP | ||||||||
| Callable 04/01/19 @ 100 | ||||||||
| 5.000%, 04/01/22 | 735 | 841 | ||||||
| San Francisco City & County, Public Utilities Commission Water Revenue, Sub-Ser A, RB | ||||||||
| 5.000%, 11/01/20 | 250 | 298 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 44
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA | ||||||||
| 5.000%, 08/01/17 | $ | 540 | $ | 573 | ||||
| San Francisco City & County, Redevelopment Agency, Redevelopment Projects, Ser B, TA, NATL-RE | ||||||||
| Callable 11/03/14 @ 100 | ||||||||
| 5.250%, 08/01/18 | 600 | 601 | ||||||
| San Francisco, City & Open Space Fund, Various Park Projects, RB, NATL-RE | ||||||||
| Callable 11/03/14 @ 100 | ||||||||
| 3.750%, 07/01/18 | 500 | 501 | ||||||
| San Mateo County, Joint Powers Financing Authority, Maple Street Project, RB | ||||||||
| 3.000%, 06/15/17 | 1,000 | 1,067 | ||||||
| San Mateo County, Transportation Authority, Ser A, RB, NATL-RE | ||||||||
| 5.250%, 06/01/19 | 755 | 881 | ||||||
| San Pablo County, Redevelopment Agency, Ser A, TA, AGM | ||||||||
| 5.000%, 06/15/21 | 480 | 567 | ||||||
| Santa Clara County, Financing Authority, Lease Revenue Capital Project, RB | ||||||||
| 5.000%, 02/01/20 | 500 | 588 | ||||||
| Santa Cruz County, Redevelopment Agency, TA | ||||||||
| 5.000%, 09/01/19 | 640 | 746 | ||||||
| Santa Rosa, Wastewater Revenue, Ser A, RB | ||||||||
| 4.000%, 09/01/17 | 415 | 454 | ||||||
| Southern California, Metropolitan Water District, Ser G-4, RB | ||||||||
| 3.000%, 07/01/37 | 1,000 | 1,073 | ||||||
| Southern California, Public Power Authority, Subordinated Southern Transmission Project, Ser A, RB | ||||||||
| 5.000%, 07/01/17 | 1,200 | 1,347 | ||||||
| Turlock, Irrigation District, Ser A, RB | ||||||||
| 5.000%, 01/01/17 | 575 | 632 | ||||||
| Turlock, Irrigation District, Sub-Ser, RB | ||||||||
| 5.000%, 01/01/19 | 200 | 231 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| University of California, Revenues Limited Project, Ser E, RB | ||||||||
| Callable 05/15/20 @ 100 | ||||||||
| 5.000%, 05/15/22 | $ | 500 | $ | 587 | ||||
| Ventura County, Public Financing Authority, Ser 2008-3381X, RB | ||||||||
| Callable 11/01/22 @ 100 | ||||||||
| 0.080%, 11/01/43(A) (E) | 2,000 | 2,000 | ||||||
| Ventura County, Public Financing Authority, Ser A, RB | ||||||||
| 4.000%, 11/01/18 | 500 | 564 | ||||||
| Ventura County, Public Financing Authority, Ser B, RB | ||||||||
| 5.000%, 11/01/18 | 500 | 584 | ||||||
| Walnut, Energy Center Authority, RB | ||||||||
| 5.000%, 01/01/19 | 300 | 350 | ||||||
| Total California | 75,745 | |||||||
| Connecticut [2.5%] | ||||||||
| Connecticut State, Ser A, GO | ||||||||
| Callable 03/01/15 @ 100 | ||||||||
| 1.390%, 03/01/19(A) | 1,000 | 1,005 | ||||||
| Connecticut State, Ser D, GO | ||||||||
| 0.920%, 08/15/19(A) | 1,000 | 1,013 | ||||||
| Total Connecticut | 2,018 | |||||||
| Guam [0.7%] | ||||||||
| Territory of Guam, Ser A, RB | ||||||||
| 5.000%, 01/01/17 | 500 | 545 | ||||||
| Illinois [0.8%] | ||||||||
| Illinois State, GO | ||||||||
| 4.000%, 07/01/18 | 600 | 646 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $76,996) | 78,954 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 45
schedule of investments
September 30, 2014
City National Rochdale California Tax Exempt Bond Fund (concluded)
| Description | Shares | Value (000) | ||||||
| Short-Term Investment [3.5%] | ||||||||
| City National Rochdale Tax Exempt Money Market Fund, Institutional Class, 0.010%** ‡ | 2,879,002 | $ | 2,879 | |||||
| Total Short-Term Investment | ||||||||
| (Cost $2,879) | 2,879 | |||||||
| Total Investments [100.2%] | ||||||||
| (Cost $79,875) | $ | 81,833 | ||||||
Percentages are based on Net Assets of $81,653 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (A) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (B) | Securities are held in conjunction with a letter of credit from a major bank or financial institution. |
| (C) | Zero coupon security. The rate reported is the effective yield at time of purchase. |
| (D) | Pre-Refunded Security — The maturity date shown is the pre-refunded date. |
| (E) | 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 September 30, 2014, the value of these securities amounted to $2,000 (000), representing 2.4% of the net assets of the Fund. |
AGM — Assured Guarantee Municipal
AMBAC — American Municipal Bond Assurance Company
COP — Certificate of Participation
EPA — Environmental Protection Agency
GO — General Obligation
NATL-RE — National Public Finance Guarantee Corporation
RB — Revenue Bond
SAB — Special Assessment Board
Ser — Series
TA — Tax Allocation
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Municipal Bonds | $ | — | $ | 78,954 | $ | — | $ | 78,954 | ||||||||
| Short-Term Investment | 2,879 | — | — | 2,879 | ||||||||||||
| Total Investments in Securities | $ | 2,879 | $ | 78,954 | $ | — | $ | 81,833 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 46
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Municipal Bonds [83.1%] | ||||||||
| Alabama [2.2%] | ||||||||
| Cullman County, Health Care Authority, Cullman Regional Medical Center Project, Ser A, RB | ||||||||
| Callable 02/01/19 @ 100 | ||||||||
| 7.000%, 02/01/36 | $ | 4,315 | $ | 4,689 | ||||
| Jefferson County, Sewer Revenue, Sub-Ser D, RB | ||||||||
| Callable 10/01/23 @ 105 | ||||||||
| 6.000%, 10/01/42 | 4,000 | 4,481 | ||||||
| Total Alabama | 9,170 | |||||||
| Alaska [1.1%] | ||||||||
| Northern Tobacco Securitization, Ser A, RB | ||||||||
| Callable 10/17/14 @ 100 | ||||||||
| 5.000%, 06/01/46 | 6,000 | 4,455 | ||||||
| Arizona [1.5%] | ||||||||
| La Paz County, Industrial Development Authority, Imperial Regional Detention Facility Project, RB | ||||||||
| Callable 10/01/21 @ 102 | ||||||||
| 6.750%, 10/01/23 | 2,000 | 2,099 | ||||||
| La Paz County, Industrial Development Authority, Imperial Regional Detention Facility Project, RB | ||||||||
| Callable 10/01/21 @ 102 | ||||||||
| 7.800%, 10/01/39 | 2,410 | 2,588 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Pima County, Industrial Development Authority, Noah Webster School Project, RB | ||||||||
| Callable 12/15/23 @ 100 | ||||||||
| 7.000%, 12/15/43 | $ | 1,500 | $ | 1,579 | ||||
| Total Arizona | 6,266 | |||||||
| California [9.6%] | ||||||||
| Adelanto, Public Utility Authority, Utility System Project, Ser A, RB | ||||||||
| Callable 07/01/19 @ 100 | ||||||||
| 6.750%, 07/01/39 | 1,000 | 1,141 | ||||||
| California State, GO | ||||||||
| Callable 12/01/23 @ 100 | ||||||||
| 5.000%, 12/01/31 | 1,500 | 1,734 | ||||||
| California State, Pollution Control Financing Authority, San Diego Water Project, RB | ||||||||
| Callable 07/01/17 @ 100 | ||||||||
| 5.000%, 11/21/45(A) | 2,000 | 2,055 | ||||||
| California State, Public Works Board, Department of Corrections and Rehab Project, Ser A, RB | ||||||||
| Callable 09/01/24 @ 100 | ||||||||
| 5.000%, 09/01/31 | 5,000 | 5,805 | ||||||
| California State, Public Works Board, Various Capital Projects, Ser A, RB | ||||||||
| Callable 04/01/22 @ 100 | ||||||||
| 5.000%, 04/01/37 | 1,000 | 1,100 | ||||||
| Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A, RB | ||||||||
| Callable 06/01/15 @ 100 | ||||||||
| 5.000%, 06/01/45 | 1,000 | 1,017 | ||||||
| Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A-1, RB | ||||||||
| Callable 06/01/17 @ 100 | ||||||||
| 4.500%, 06/01/27 | 5,000 | 4,612 | ||||||
| Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A-1, RB | ||||||||
| Callable 06/01/17 @ 100 | ||||||||
| 5.750%, 06/01/47 | 2,000 | 1,589 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 47
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Golden State Tobacco Securitization, Golden State Tobacco Settlement, Ser A-1, RB | ||||||||
| Callable 06/01/17 @ 100 | ||||||||
| 5.125%, 06/01/47 | $ | 4,500 | $ | 3,296 | ||||
| Inland Empire Tobacco Securitization Authority, Ser A, RB | ||||||||
| Callable 06/01/17 @ 100 | ||||||||
| 4.625%, 06/01/21 | 5,000 | 4,831 | ||||||
| M-S-R Energy Authority, Ser C, RB | ||||||||
| 7.000%, 11/01/34 | 2,500 | 3,468 | ||||||
| Palomar Pomerado Health Care District, COP | ||||||||
| Callable 11/01/20 @ 100 | ||||||||
| 6.000%, 11/01/30 | 3,920 | 4,134 | ||||||
| San Buenaventura, Community Memorial Health System Project, RB | ||||||||
| Callable 12/01/21 @ 100 | ||||||||
| 7.000%, 12/01/26 | 1,000 | 1,191 | ||||||
| San Buenaventura, Community Memorial Health System Project, RB | ||||||||
| Callable 12/01/21 @ 100 | ||||||||
| 7.500%, 12/01/41 | 1,000 | 1,203 | ||||||
| San Mateo, Community Facilities District, SAB | ||||||||
| Callable 09/01/22 @ 100 | ||||||||
| 5.500%, 09/01/44 | 1,000 | 1,092 | ||||||
| Southern California, Tobacco Securitization Authority, Ser A-1, RB | ||||||||
| Callable 10/17/14 @ 100 | ||||||||
| 5.000%, 06/01/37 | 3,000 | 2,424 | ||||||
| Total California | 40,692 | |||||||
| Colorado [4.6%] | ||||||||
| Arkansas State, River Power Authority, Colorado Improvement Project, RB | ||||||||
| Callable 10/01/20 @ 100 | ||||||||
| 6.125%, 10/01/40 | 2,500 | 2,671 | ||||||
| Arkansas State, River Power Authority, Colorado Improvement Project, RB | ||||||||
| Callable 10/01/18 @ 100 | ||||||||
| 6.000%, 10/01/40 | 3,000 | 3,129 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Colorado State, Educational & Cultural Facilities Authority, Charter School Skyview Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 5.375%, 07/01/44(A) | $ | 1,350 | $ | 1,381 | ||||
| Colorado State, Educational & Cultural Facilities Authority, Charter School Skyview Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 5.500%, 07/01/49(A) | 1,600 | 1,636 | ||||||
| Colorado State, High Performance Transportation Enterprise, US 36 & I-25 Managed Lanes Project, RB, AMT | ||||||||
| Callable 01/01/23 @ 100 | ||||||||
| 5.750%, 01/01/44 | 2,000 | 2,077 | ||||||
| Colorado State, Public Energy Authority, RB | ||||||||
| 6.500%, 11/15/38 | 4,000 | 5,492 | ||||||
| Denver City & County, United Airlines Project, Ser A, RB, AMT | ||||||||
| Callable 10/01/17 @ 100 | ||||||||
| 5.250%, 10/01/32 | 1,000 | 1,023 | ||||||
| Regional Transportation District, Denver Transportaion Partners Project, RB | ||||||||
| Callable 07/15/20 @ 100 | ||||||||
| 6.000%, 01/15/41 | 1,000 | 1,114 | ||||||
| Wildgrass County, Metropolitan District, GO | ||||||||
| Callable 12/01/16 @ 100 | ||||||||
| 6.200%, 12/01/34 | 1,000 | 1,008 | ||||||
| Total Colorado | 19,531 | |||||||
| Delaware [0.5%] | ||||||||
| Delaware State, Economic Development Authority, Indian River Power Project, RB | ||||||||
| Callable 10/01/20 @ 100 | ||||||||
| 5.375%, 10/01/45 | 2,000 | 2,176 | ||||||
| District of Columbia [0.5%] | ||||||||
| Metropolitan Washington, Airports Authority, Dulles Toll Road Revenue, Ser B, RB | ||||||||
| Callable 10/01/28 @ 100 | ||||||||
| 6.500%, 10/01/44 | 2,000 | 2,066 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 48
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Florida [6.9%] | ||||||||
| Alachua County, Health Facilities Authority, East Ridge Retirement Village Project, RB | ||||||||
| Callable 11/15/24 @ 100 | ||||||||
| 6.000%, 11/15/34 | $ | 2,500 | $ | 2,646 | ||||
| Alachua County, Health Facilities Authority, East Ridge Retirement Village Project, RB | ||||||||
| Callable 11/15/24 @ 100 | ||||||||
| 6.250%, 11/15/44 | 1,000 | 1,064 | ||||||
| Brevard County, Industrial Development Authority, TUFF Florida Tech Project, RB | ||||||||
| Callable 11/15/19 @ 100 | ||||||||
| 6.750%, 11/01/39 | 335 | 365 | ||||||
| Capital Trust Agency, Silver Creek Street Project, Ser A, RB | ||||||||
| Callable 01/01/21 @ 103 | ||||||||
| 8.250%, 01/01/44 | 1,890 | 1,964 | ||||||
| Capital Trust Agency, Silver Creek Street Project, Ser A, RB | ||||||||
| Callable 01/01/21 @ 103 | ||||||||
| 8.250%, 01/01/49 | 1,000 | 1,034 | ||||||
| Florida State, Development Finance Corp., Renaissance Charter School Project, Ser A, RB | ||||||||
| Callable 06/15/22 @ 100 | ||||||||
| 6.125%, 06/15/43 | 1,000 | 993 | ||||||
| Florida State, Village Community Development District No. 10, SAB | ||||||||
| Callable 05/01/23 @ 100 | ||||||||
| 6.000%, 05/01/44 | 1,000 | 1,058 | ||||||
| Miami-Dade County, Industrial Development Authority, Pinecrest Academy Project, RB | ||||||||
| Callable 09/15/24 @ 100 | ||||||||
| 5.250%, 09/15/44 | 2,500 | 2,566 | ||||||
| Mid-Bay Bridge Authority, Ser A, RB | ||||||||
| Callable 10/01/21 @ 100 | ||||||||
| 7.250%, 10/01/34 | 5,200 | 6,325 | ||||||
| Osceola County, Poinciana Parkway Project, Ser A, RB | ||||||||
| Callable 10/01/24 @ 100 | ||||||||
| 5.375%, 10/01/47 | 5,000 | 5,174 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Palm Beach County, Health Facilities Authority, Sinai Residences Project, Ser A, RB | ||||||||
| Callable 06/01/22 @ 102 | ||||||||
| 7.250%, 06/01/34 | $ | 500 | $ | 558 | ||||
| Palm Beach County, Health Facilities Authority, Sinai Residences Project, Ser A, RB | ||||||||
| Callable 06/01/22 @ 102 | ||||||||
| 7.500%, 06/01/49 | 2,000 | 2,243 | ||||||
| Saint Johns County, Industrial Development Authority, Presbyterian Retirement Project, Ser A, RB | ||||||||
| Callable 08/01/20 @ 100 | ||||||||
| 6.000%, 08/01/45 | 3,000 | 3,243 | ||||||
| Total Florida | 29,233 | |||||||
| Georgia [1.2%] | ||||||||
| Atlanta, Department of Aviation, Ser A, RB | ||||||||
| Callable 01/01/24 @ 100 | ||||||||
| 5.000%, 01/01/31 | 2,500 | 2,862 | ||||||
| DeKalb County, Hospital Authority, Dekalb Medical Center Project, RB | ||||||||
| Callable 09/01/20 @ 100 | ||||||||
| 6.125%, 09/01/40 | 1,000 | 1,068 | ||||||
| Savannah, Economic Development Authority, Marshes Skidaway Island Project, RB | ||||||||
| Callable 01/01/24 @ 100 | ||||||||
| 7.250%, 01/01/49 | 810 | 853 | ||||||
| Total Georgia | 4,783 | |||||||
| Guam [1.9%] | ||||||||
| Territory of Guam, Government Waterworks Authority, RB | ||||||||
| Callable 07/01/20 @ 100 | ||||||||
| 5.625%, 07/01/40 | 2,000 | 2,211 | ||||||
| Territory of Guam, Ser A, GO | ||||||||
| Callable 11/15/19 @ 100 | ||||||||
| 7.000%, 11/15/39 | 5,000 | 5,660 | ||||||
| Total Guam | 7,871 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 49
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Hawaii [0.7%] | ||||||||
| Hawaii State, Department of Budget & Finance, 15 Craigside Project, Ser A, RB | ||||||||
| Callable 11/15/19 @ 100 | ||||||||
| 8.750%, 11/15/29 | $ | 2,450 | $ | 3,008 | ||||
| Illinois [7.1%] | ||||||||
| Bridgeview Village, Ser A, GO | ||||||||
| Callable 06/01/24 @ 100 | ||||||||
| 5.500%, 12/01/43 | 4,880 | 5,180 | ||||||
| Chicago, Midway International Airport, Ser B, RB | ||||||||
| Callable 01/01/24 @ 100 | ||||||||
| 5.000%, 01/01/35 | 3,000 | 3,328 | ||||||
| Chicago, Midway International Airport, Ser B, RB | ||||||||
| Callable 01/01/23 @ 100 | ||||||||
| 5.000%, 01/01/35 | 2,000 | 2,198 | ||||||
| Chicago, Refunding Project, Ser A, GO, AGM | ||||||||
| Callable 01/01/24 @ 100 | ||||||||
| 5.250%, 01/01/31 | 1,000 | 1,100 | ||||||
| Illinois State, Finance Authority, Admiral at Lake Project, Ser A, RB | ||||||||
| Callable 05/15/20 @ 100 | ||||||||
| 8.000%, 05/15/40 | 4,000 | 4,186 | ||||||
| Illinois State, Finance Authority, Admiral at Lake Project, Ser A, RB | ||||||||
| Callable 05/15/20 @ 100 | ||||||||
| 8.000%, 05/15/46 | 1,825 | 1,908 | ||||||
| Illinois State, Finance Authority, Lutheran Home and Services Project, RB | ||||||||
| Callable 05/15/22 @ 100 | ||||||||
| 5.625%, 05/15/42 | 5,000 | 5,122 | ||||||
| Illinois State, Finance Authority, Roosevelt Universitiy Project, RB | ||||||||
| Callable 10/01/19 @ 100 | ||||||||
| 6.250%, 04/01/29 | 1,000 | 1,089 | ||||||
| Illinois State, Finance Authority, Roosevelt Universitiy Project, RB | ||||||||
| Callable 10/01/19 @ 100 | ||||||||
| 6.500%, 04/01/39 | 3,445 | 3,750 | ||||||
| Illinois State, Finance Authority, Three Crowns Park Plaza Project, Ser A, RB | ||||||||
| Callable 02/15/16 @ 100 | ||||||||
| 5.875%, 02/15/38 | 1,000 | 1,005 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Southwestern Illinois, Development Authority, Collinsville Project, RB | ||||||||
| Callable 03/01/16 @ 100 | ||||||||
| 5.350%, 03/01/31 | $ | 1,000 | $ | 748 | ||||
| Total Illinois | 29,614 | |||||||
| Indiana [2.6%] | ||||||||
| Carmel, Barrington Carmel Project, Ser A, RB | ||||||||
| Callable 11/15/22 @ 100 | ||||||||
| 7.000%, 11/15/32 | 1,650 | 1,773 | ||||||
| Carmel, Barrington Carmel Project, Ser A, RB | ||||||||
| Callable 11/15/22 @ 100 | ||||||||
| 7.125%, 11/15/47 | 2,000 | 2,143 | ||||||
| Indiana State, Finance Authority, Ohio Valley Electric Corporation Project, Ser A, RB | ||||||||
| Callable 06/01/22 @ 100 | ||||||||
| 5.000%, 06/01/39 | 1,000 | 1,042 | ||||||
| Indianapolis, Ritter Affordable Assisted Living Project, RB | ||||||||
| Callable 12/01/22 @ 102 | ||||||||
| 6.900%, 12/01/33 | 4,000 | 4,065 | ||||||
| Terre Haute, Westminster Village Project, RB | ||||||||
| Callable 08/01/22 @ 100 | ||||||||
| 6.000%, 08/01/39 | 2,355 | 2,307 | ||||||
| Total Indiana | 11,330 | |||||||
| Kentucky [2.4%] | ||||||||
| Kentucky State, Economic Development Finance Authority, Owensboro Medical Health System Project, Ser A, RB | ||||||||
| Callable 06/01/20 @ 100 | ||||||||
| 6.375%, 06/01/40 | 1,000 | 1,150 | ||||||
| Kentucky State, Economic Development Finance Authority, Owensboro Medical Health System Project, Ser A, RB | ||||||||
| Callable 06/01/20 @ 100 | ||||||||
| 6.500%, 03/01/45 | 2,960 | 3,399 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 50
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Kentucky State, Public Transportation Infrastructure Authority, Downtown Crossing Project, RB | ||||||||
| Callable 07/01/23 @ 100 | ||||||||
| 5.750%, 07/01/49 | $ | 5,000 | $ | 5,652 | ||||
| Total Kentucky | 10,201 | |||||||
| Louisiana [1.5%] | ||||||||
| Louisiana State, Public Facilities Authority, Pellets Inc. Project, RB, AMT | ||||||||
| Callable 07/01/23 @ 100 | ||||||||
| 10.500%, 07/01/39 | 1,000 | 1,082 | ||||||
| Louisiana State, Public Facilities Authority, Pellets Inc. Project, Ser A, RB, AMT | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 8.375%, 07/01/39 | 5,000 | 5,067 | ||||||
| Total Louisiana | 6,149 | |||||||
| Maryland [1.5%] | ||||||||
| Howard County, Annapolis Junction Town Center Project, TA | ||||||||
| Callable 02/15/24 @ 100 | ||||||||
| 5.800%, 02/15/34 | 725 | 757 | ||||||
| Howard County, Annapolis Junction Town Center Project, TA | ||||||||
| Callable 02/15/24 @ 100 | ||||||||
| 6.100%, 02/15/44 | 1,425 | 1,487 | ||||||
| Westminster, Luther Village Millers Grant Inc. Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 6.000%, 07/01/34 | 1,000 | 1,054 | ||||||
| Westminster, Luther Village Millers Grant Inc. Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 6.125%, 07/01/39 | 750 | 786 | ||||||
| Westminster, Luther Village Millers Grant Inc. Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 6.250%, 07/01/44 | 1,750 | 1,838 | ||||||
| Total Maryland | 5,922 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Michigan [3.6%] | ||||||||
| Kent, Hospital Finance Authority, Metropolitan Hospital Project, Ser A, RB | ||||||||
| Callable 07/01/15 @ 100 | ||||||||
| 6.000%, 07/01/35 | $ | 4,805 | $ | 4,951 | ||||
| Michigan State, Finance Authority, Old Redford School Project, Ser A, RB | ||||||||
| Callable 12/01/20 @ 100 | ||||||||
| 6.500%, 12/01/40 | 3,745 | 3,792 | ||||||
| Michigan State, Public Educational Facilities Authority, Old Redford Project, Ser A, RB | ||||||||
| Callable 12/01/15 @ 100 | ||||||||
| 5.875%, 12/01/30 | 2,000 | 2,002 | ||||||
| Michigan State, Tobacco Settlement Finance Authority, Ser A, RB | ||||||||
| Callable 06/01/17 @ 100 | ||||||||
| 5.125%, 06/01/22 | 2,990 | 2,585 | ||||||
| Michigan State, Tobacco Settlement Finance Authority, Turbo Project, Ser A, RB | ||||||||
| Callable 06/01/18 @ 100 | ||||||||
| 6.875%, 06/01/42 | 2,000 | 1,861 | ||||||
| Total Michigan | 15,191 | |||||||
| Missouri [1.6%] | ||||||||
| Kirkwood, Industrial Development Authority, Aberdeen Heights Project, Ser A, RB | ||||||||
| Callable 05/15/20 @ 100 | ||||||||
| 8.250%, 05/15/45 | 3,000 | 3,455 | ||||||
| Saint Joseph, Industrial Development Authority, Living Community Saint Joseph Project, RB | ||||||||
| Callable 11/03/14 @ 100 | ||||||||
| 7.000%, 08/15/32 | 1,000 | 1,000 | ||||||
| Saint Louis County, Lambert Airport Project, SAB | ||||||||
| Callable 11/01/16 @ 105 | ||||||||
| 9.000%, 11/01/31 | 2,500 | 2,652 | ||||||
| Total Missouri | 7,107 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 51
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Nebraska [1.0%] | ||||||||
| Central Plains Energy Project, Project #3, RB | ||||||||
| Callable 09/01/22 @ 100 | ||||||||
| 5.250%, 09/01/37 | $ | 1,000 | $ | 1,099 | ||||
| Central Plains Energy Project, Project #3, RB | ||||||||
| Callable 09/01/22 @ 100 | ||||||||
| 5.000%, 09/01/42 | 3,000 | 3,223 | ||||||
| Total Nebraska | 4,322 | |||||||
| Nevada [0.8%] | ||||||||
| Clark County, Department of Aviation, Sub-Ser A-2, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 5.000%, 07/01/35 | 3,000 | 3,324 | ||||||
| New Jersey [1.1%] | ||||||||
| New Jersey State, Economic Development Authority, Continental Airlines Project, RB, AMT | ||||||||
| Callable 08/20/22 @ 101 | ||||||||
| 5.250%, 09/15/29 | 1,000 | 1,056 | ||||||
| Tobacco Settlement Financing, Ser 1A, RB | ||||||||
| Callable 06/01/17 @ 100 | ||||||||
| 5.000%, 06/01/41 | 5,000 | 3,671 | ||||||
| Total New Jersey | 4,727 | |||||||
| New York [1.9%] | ||||||||
| Nassau County, Industrial Development Agency, Amsterdam at Harborside, Ser A, RB | ||||||||
| Callable 01/01/18 @ 100 | ||||||||
| 6.700%, 01/01/43 | 1,700 | 1,241 | ||||||
| New York City, Industrial Development Agency, American Airlines JFK International Airport Project, RB, AMT | ||||||||
| Callable 08/01/16 @ 101 | ||||||||
| 7.750%, 08/01/31(B) | 4,000 | 4,401 | ||||||
| Niagara, Tobacco Asset Securitization, RB | ||||||||
| Callable 05/15/24 @ 100 | ||||||||
| 5.250%, 05/15/34 | 1,000 | 1,096 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Niagara, Tobacco Asset Securitization, RB | ||||||||
| Callable 05/15/24 @ 100 | ||||||||
| 5.250%, 05/15/40 | $ | 1,000 | $ | 1,086 | ||||
| Total New York | 7,824 | |||||||
| Ohio [2.8%] | ||||||||
| Muskingum County, Genesis Healthcare System Project, RB | ||||||||
| Callable 02/15/23 @ 100 | ||||||||
| 5.000%, 02/15/33 | 1,000 | 1,023 | ||||||
| Muskingum County, Hospital Facilities Authority, Genesis Healthcare Systems Project, RB | ||||||||
| Callable 02/15/23 @ 100 | ||||||||
| 5.000%, 02/15/44 | 1,000 | 1,011 | ||||||
| Muskingum County, Hospital Facilities Authority, Genesis Healthcare Systems Project, RB | ||||||||
| Callable 02/15/23 @ 100 | ||||||||
| 5.000%, 02/15/48 | 3,000 | 2,971 | ||||||
| Ohio State, Air Quality Development Authority, Pollution Control Firstenergy Project, Ser B, RB | ||||||||
| 3.625%, 12/01/33(B) | 1,000 | 1,028 | ||||||
| Ohio State, Air Quality Development Authority, Pollution Control Firstenergy Project, Ser S, RB | ||||||||
| 3.625%, 10/01/33(B) | 1,000 | 1,031 | ||||||
| Ohio State, Water Development Authority, Pollution Control Firstenergy Project, Ser S, RB | ||||||||
| 3.625%, 10/01/33(B) | 1,500 | 1,548 | ||||||
| Southeastern Ohio, Port Authority, Memorial Health System Project, RB | ||||||||
| Callable 12/01/22 @ 100 | ||||||||
| 6.000%, 12/01/42 | 3,000 | 3,009 | ||||||
| Total Ohio | 11,621 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 52
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Pennsylvania [2.7%] | ||||||||
| Delaware County, Industrial Development Authority, Chester Community Charter School Project, Ser A, RB | ||||||||
| Callable 08/15/20 @ 100 | ||||||||
| 6.125%, 08/15/40 | $ | 4,000 | $ | 3,876 | ||||
| Pennsylvania Turnpike Commission, Ser A, RB | ||||||||
| Callable 12/01/24 @ 100 | ||||||||
| 5.000%, 12/01/33 | 1,500 | 1,707 | ||||||
| Philadelphia, Hospitals & Higher Education Facilities Authority, Temple University Health Systems Project, Ser A, RB | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 5.625%, 07/01/42 | 3,000 | 3,129 | ||||||
| Pottsville, Hospital Authority, Schuykill Health System Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 6.500%, 07/01/28 | 3,000 | 3,114 | ||||||
| Total Pennsylvania | 11,826 | |||||||
| South Carolina [1.3%] | ||||||||
| South Carolina State, Public Service Authority, Ser E, RB | ||||||||
| Callable 12/01/23 @ 100 | ||||||||
| 5.500%, 12/01/53 | 5,000 | 5,603 | ||||||
| Tennessee [0.5%] | ||||||||
| Johnson City, Health & Educational Facilities Board, Mountain States Health Alliance Project, RB | ||||||||
| Callable 07/01/20 @ 100 | ||||||||
| 6.000%, 07/01/38 | 2,000 | 2,259 | ||||||
| Texas [10.9%] | ||||||||
| Arlington, Higher Education Finance Corp., Universal Academy Project, Ser A, RB | ||||||||
| Callable 03/01/24 @ 100 | ||||||||
| 7.000%, 03/01/34 | 400 | 416 | ||||||
| Arlington, Higher Education Finance Corp., Universal Academy Project, Ser A, RB | ||||||||
| Callable 03/01/24 @ 100 | ||||||||
| 7.125%, 03/01/44 | 2,300 | 2,390 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Bexar County, Health Facilities Development Corp., Army Retirement Residence Project, RB | ||||||||
| Callable 07/01/20 @ 100 | ||||||||
| 6.200%, 07/01/45 | $ | 3,250 | $ | 3,563 | ||||
| Central Texas, Regional Mobility Authority, RB | ||||||||
| Callable 01/01/23 @ 100 | ||||||||
| 5.000%, 01/01/33 | 1,000 | 1,064 | ||||||
| Central Texas, Regional Mobility Authority, RB | ||||||||
| Callable 01/01/23 @ 100 | ||||||||
| 5.000%, 01/01/42 | 1,000 | 1,047 | ||||||
| Grand Parkway Transportation, Toll Revenue, Sub-Ser B, RB | ||||||||
| Callable 10/01/23 @ 100 | ||||||||
| 5.000%, 04/01/53 | 2,000 | 2,170 | ||||||
| Hackberry, Public Improvement District #3, SAB | ||||||||
| Callable 09/01/19 @ 103 | ||||||||
| 6.750%, 09/01/28 | 500 | 505 | ||||||
| Hackberry, Public Improvement District #3, SAB | ||||||||
| Callable 09/01/19 @ 103 | ||||||||
| 7.000%, 09/01/33 | 475 | 479 | ||||||
| Hackberry, Public Improvement District #3, SAB | ||||||||
| Callable 09/01/19 @ 103 | ||||||||
| 6.625%, 09/01/37 | 450 | 454 | ||||||
| Hackberry, Public Improvement District #3, SAB | ||||||||
| Callable 09/01/19 @ 103 | ||||||||
| 6.750%, 09/01/44 | 525 | 530 | ||||||
| Houston, Airport System Revenue, United Airlines Project, RB, AMT | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 5.000%, 07/01/29 | 3,000 | 3,088 | ||||||
| North Texas, Thruway Authority, Convertible Capital Appreciation Project, Ser C, RB | ||||||||
| Callable 09/01/31 @ 100 | ||||||||
| 7.000%, 09/01/43 | 5,000 | 4,332 | ||||||
| Red River, Health Facilities Development, MRC Crossings Project, Ser B, RB | ||||||||
| Callable 05/15/15 @ 100 | ||||||||
| 5.000%, 11/15/19 | 1,075 | 1,086 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 53
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Sanger, Industrial Development Authority, Pellets Project, Ser B, RB, AMT | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 8.000%, 07/01/38 | $ | 5,000 | $ | 5,506 | ||||
| Tarrant County, Cultural Education Facilities Finance Corp., Buckingham Senior Living Community Project, RB | ||||||||
| Callable 11/15/17 @ 100 | ||||||||
| 5.750%, 11/15/37 | 6,000 | 6,114 | ||||||
| Tarrant County, Cultural Education Facilities Finance Corp., Trinity Basin Preparatory Project, Ser A, RB | ||||||||
| Callable 06/01/19 @ 100 | ||||||||
| 7.300%, 06/01/29 | 605 | 759 | ||||||
| Texas State, Municipal Gas Acquisition & Supply I, Ser D, RB | ||||||||
| 6.250%, 12/15/26 | 2,000 | 2,453 | ||||||
| Texas State, Private Activity Bond Surface Transportation Corp., LBJ Infrastructure Project, RB | ||||||||
| Callable 06/30/20 @ 100 | ||||||||
| 7.000%, 06/30/40 | 3,500 | 4,194 | ||||||
| Texas State, Private Activity Bond Surface Transportation Corp., NTE Mobility Project, RB | ||||||||
| Callable 12/31/19 @ 100 | ||||||||
| 6.875%, 12/31/39 | 5,350 | 6,303 | ||||||
| Total Texas | 46,453 | |||||||
| Virginia [1.3%] | ||||||||
| James City County, Economic Development Authority, United Methodist Home Project, Ser A, RB | ||||||||
| Callable 07/01/17 @ 100 | ||||||||
| 6.000%, 06/01/43 | 4,690 | 4,293 | ||||||
| Virginia State, Small Business Financing Authority, Elizabeth River Project, RB, AMT | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 6.000%, 01/01/37 | 1,000 | 1,119 | ||||||
| Total Virginia | 5,412 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Washington [1.0%] | ||||||||
| Washington State, Housing Finance Commission, Rockwood Retirement Community Project, RB | ||||||||
| Callable 01/01/15 @ 100 | ||||||||
| 5.375%, 01/01/20(A) | $ | 2,000 | $ | 2,004 | ||||
| Washington State, Housing Finance Commission, Rockwood Retirement Community Project, RB | ||||||||
| Callable 01/01/24 @ 100 | ||||||||
| 7.500%, 01/01/49(A) | 2,000 | 2,185 | ||||||
| Total Washington | 4,189 | |||||||
| Wisconsin [2.1%] | ||||||||
| Public Finance Authority, Airport Facilities, Senior Trips Obligation Group Project, RB, AMT | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 5.000%, 07/01/42 | 1,000 | 1,034 | ||||||
| Public Finance Authority, Coral Academy Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 5.375%, 07/01/34 | 1,000 | 1,019 | ||||||
| Public Finance Authority, Coral Academy Project, RB | ||||||||
| Callable 07/01/24 @ 100 | ||||||||
| 5.625%, 07/01/44 | 1,500 | 1,529 | ||||||
| Public Finance Authority, Las Ventanas Retirement Community Project, RB | ||||||||
| Callable 10/01/20 @ 102 | ||||||||
| 7.000%, 10/01/42 | 5,400 | 5,307 | ||||||
| Total Wisconsin | 8,889 | |||||||
| Puerto Rico [4.7%] | ||||||||
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Ser A, RB | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 5.250%, 07/01/24 | 2,590 | 1,932 | ||||||
| Puerto Rico Commonwealth, Aqueduct & Sewer Authority, Ser A, RB | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 5.250%, 07/01/42 | 840 | 596 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 54
schedule of investments
September 30, 2014
City National Rochdale Municipal High Income Fund (concluded)
| Description | Face Amount (000) | Value (000) | ||||||
| Puerto Rico Commonwealth, Ser A, GO | ||||||||
| Callable 07/01/20 @ 100 | ||||||||
| 8.000%, 07/01/35 | $ | 6,000 | $ | 5,280 | ||||
| Puerto Rico, Electric Power Authority, Ser A, RB | ||||||||
| Callable 07/01/23 @ 100 | ||||||||
| 7.000%, 07/01/33 | 1,440 | 857 | ||||||
| Puerto Rico, Electric Power Authority, Ser A, RB | ||||||||
| Callable 07/01/23 @ 100 | ||||||||
| 7.000%, 07/01/40 | 1,000 | 595 | ||||||
| Puerto Rico, Electric Power Authority, Ser A, RB | ||||||||
| Callable 07/01/22 @ 100 | ||||||||
| 5.000%, 07/01/42 | 1,310 | 776 | ||||||
| Puerto Rico, Electric Power Authority, Ser WW, RB | ||||||||
| Callable 07/01/18 @ 100 | ||||||||
| 5.500%, 07/01/38 | 1,060 | 630 | ||||||
| Puerto Rico, Electric Power Authority, Ser XX, RB | ||||||||
| Callable 07/01/20 @ 100 | ||||||||
| 5.750%, 07/01/36 | 940 | 559 | ||||||
| Puerto Rico, Sales Tax Financing, Sub-Ser A, RB | ||||||||
| Callable 02/01/20 @ 100 | ||||||||
| 5.375%, 08/01/39 | 5,000 | 3,815 | ||||||
| Puerto Rico, Sales Tax Financing, Sub-Ser A, RB | ||||||||
| Callable 08/01/19 @ 100 | ||||||||
| 6.000%, 08/01/42 | 3,500 | 2,808 | ||||||
| Puerto Rico, Sales Tax Financing, Sub-Ser A, RB | ||||||||
| Callable 08/01/19 @ 100 | ||||||||
| 6.500%, 08/01/44 | 1,250 | 1,058 | ||||||
| Puerto Rico, Sales Tax Financing, Sub-Ser C, RB | ||||||||
| Callable 08/01/20 @ 100 | ||||||||
| 5.250%, 08/01/41 | 1,000 | 738 | ||||||
| Total Puerto Rico | 19,644 | |||||||
| Total Municipal Bonds | ||||||||
| (Cost $337,997) | 350,858 | |||||||
| Description | Shares | Value (000) | ||||||
| Short-Term Investments [13.4%] | ||||||||
| City National Rochdale Government Money Market Fund, 0.010%** ‡ | 30,697,383 | $ | 30,697 | |||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 25,761,458 | 25,762 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $56,459) | 56,459 | |||||||
| Total Investments [96.5%] | ||||||||
| (Cost $394,456) | $ | 407,317 | ||||||
Percentages are based on Net Assets of $422,051 (000).
| ‡ | Investment in Affiliate. |
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| (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 September 30, 2014, the value of these securities amounted to $9,261 (000), representing 2.2% of the net assets of the Fund. |
| (B) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
AGM — Assured Guarantee Municipal
AMT — Alternative Minimum Tax (subject to)
Cl — Class
COP — Certificate of Participation
GO — General Obligation
RB — Revenue Bond
SAB — Special Assessment Board
Ser — Series
TA — Tax Allocation
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Municipal Bonds | $ | — | $ | 350,858 | $ | — | $ | 350,858 | ||||||||
| Short-Term Investments | 56,459 | — | — | 56,459 | ||||||||||||
| Total Investments in Securities | $ | 56,459 | $ | 350,858 | $ | — | $ | 407,317 | ||||||||
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 55
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Corporate Bonds [81.1%] | ||||||||
| Advertising Agencies [2.2%] | ||||||||
| MDC Partners | ||||||||
| 6.750%, 04/01/20(A) | $ | 2,300 | $ | 2,369 | ||||
| Aerospace & Defense [0.2%] | ||||||||
| LMI Aerospace | ||||||||
| 7.375%, 07/15/19(A) | 250 | 250 | ||||||
| Air Transportation [0.3%] | ||||||||
| CEVA Group | ||||||||
| 7.000%, 03/01/21(A) | 300 | 300 | ||||||
| Airlines [0.1%] | ||||||||
| Continental Airlines, Ser 2009-2, Cl B | ||||||||
| 9.250%, 05/10/17 | 110 | 123 | ||||||
| Automotive [0.2%] | ||||||||
| Midas Intermediate Holdco II | ||||||||
| 7.875%, 10/01/22(A) | 225 | 224 | ||||||
| Broadcasting & Cable [1.5%] | ||||||||
| CSC Holdings | ||||||||
| 6.750%, 11/15/21 | 500 | 532 | ||||||
| 5.250%, 06/01/24(A) | 200 | 192 | ||||||
| DCP | ||||||||
| 10.750%, 08/15/15(A) | 500 | 501 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Unitymedia Hessen GmbH & KG | ||||||||
| 5.500%, 01/15/23(A) | $ | 500 | $ | 505 | ||||
| Total Broadcasting & Cable | 1,730 | |||||||
| Building & Construction [0.7%] | ||||||||
| CPG Merger Sub | ||||||||
| 8.000%, 10/01/21(A) | 500 | 509 | ||||||
| Dycom Investments | ||||||||
| 7.125%, 01/15/21 | 300 | 316 | ||||||
| Total Building & Construction | 825 | |||||||
| Business Services [1.0%] | ||||||||
| FTI Consulting | ||||||||
| 6.750%, 10/01/20 | 400 | 415 | ||||||
| 6.000%, 11/15/22 | 700 | 709 | ||||||
| Total Business Services | 1,124 | |||||||
| Chemicals [0.6%] | ||||||||
| Nexeo Solutions | ||||||||
| 8.375%, 03/01/18 | 250 | 248 | ||||||
| WR Grace & -Conn | ||||||||
| 5.125%, 10/01/21(A) | 450 | 457 | ||||||
| Total Chemicals | 705 | |||||||
| Coal Mining [0.4%] | ||||||||
| CONSOL Energy | ||||||||
| 5.875%, 04/15/22(A) | 400 | 394 | ||||||
| Commercial Serv-Finance [0.5%] | ||||||||
| Cardtronics | ||||||||
| 5.125%, 08/01/22(A) | 100 | 98 | ||||||
| WEX | ||||||||
| 4.750%, 02/01/23(A) | 450 | 428 | ||||||
| Total Commercial Serv-Finance | 526 | |||||||
| Commercial Services [0.4%] | ||||||||
| Ceridian | ||||||||
| 8.125%, 11/15/17(A) | 200 | 200 | ||||||
| Live Nation Entertainment | ||||||||
| 5.375%, 06/15/22(A) | 250 | 249 | ||||||
| Total Commercial Services | 449 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 56
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Computer Graphics [0.4%] | ||||||||
| Epicor Software | ||||||||
| 8.625%, 05/01/19 | $ | 400 | $ | 423 | ||||
| Computer System Design & Services [1.2%] | ||||||||
| Brocade Communications Systems | ||||||||
| 4.625%, 01/15/23 | 450 | 427 | ||||||
| NCR | ||||||||
| 6.375%, 12/15/23 | 300 | 314 | ||||||
| 5.875%, 12/15/21 | 600 | 614 | ||||||
| Total Computer System Design & Services | 1,355 | |||||||
| Consumer Products & Services [3.5%] | ||||||||
| Central Garden and Pet | ||||||||
| 8.250%, 03/01/18 | 2,200 | 2,238 | ||||||
| Spectrum Brands | ||||||||
| 6.625%, 11/15/22 | 65 | 68 | ||||||
| 6.375%, 11/15/20 | 130 | 136 | ||||||
| WMG Acquisition | ||||||||
| 6.750%, 04/15/22(A) | 550 | 527 | ||||||
| 6.000%, 01/15/21(A) | 893 | 904 | ||||||
| Total Consumer Products & Services | 3,873 | |||||||
| Data Processing/Mgmt [1.2%] | ||||||||
| First Data | ||||||||
| 8.750%, 01/15/22(A) (B) | 1,310 | 1,389 | ||||||
| Distribution/Wholesale [0.1%] | ||||||||
| Global Partners | ||||||||
| 6.250%, 07/15/22(A) | 60 | 60 | ||||||
| Diversified Operations [0.7%] | ||||||||
| Amsted Industries | ||||||||
| 5.375%, 09/15/24(A) | 150 | 146 | ||||||
| 5.000%, 03/15/22(A) | 650 | 631 | ||||||
| Total Diversified Operations | 777 | |||||||
| E-Commerce/Services [0.8%] | ||||||||
| IAC | ||||||||
| 4.750%, 12/15/22 | 900 | 864 | ||||||
| Electric Utilities [0.8%] | ||||||||
| AES | ||||||||
| 7.375%, 07/01/21 | 450 | 504 | ||||||
| 3.234%, 06/01/19(C) | 350 | 345 | ||||||
| Total Electric Utilities | 849 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Energy & Power [0.8%] | ||||||||
| ContourGlobal Power Holdings | ||||||||
| 7.125%, 06/01/19(A) | $ | 900 | $ | 891 | ||||
| Engines-Internal Combust [0.5%] | ||||||||
| Briggs & Stratton | ||||||||
| 6.875%, 12/15/20 | 500 | 553 | ||||||
| Enterprise Software/Serv [0.9%] | ||||||||
| Eagle Midco | ||||||||
| 9.000%, 06/15/18(A) | 950 | 970 | ||||||
| Entertainment & Gaming [0.2%] | ||||||||
| Buffalo Thunder Development Authority | ||||||||
| 9.375%, 12/15/14(A) (D) (H) | 75 | 32 | ||||||
| Inn of the Mountain Gods Resort & Casino | ||||||||
| 8.750%, 11/30/20(A) (E) | 99 | 96 | ||||||
| Mashantucket Western Pequot Tribe | ||||||||
| 6.500%, 07/01/36(H) | 80 | 1 | ||||||
| Seminole Hard Rock Entertainment | ||||||||
| 5.875%, 05/15/21(A) | 100 | 96 | ||||||
| Total Entertainment & Gaming | 225 | |||||||
| Financial Services [4.1%] | ||||||||
| Credit Acceptance | ||||||||
| 6.125%, 02/15/21(A) | 1,400 | 1,425 | ||||||
| General Motors Financial | ||||||||
| 4.375%, 09/25/21 | 250 | 256 | ||||||
| Icahn Enterprises | ||||||||
| 5.875%, 02/01/22 | 800 | 800 | ||||||
| Jefferies Finance | ||||||||
| 7.375%, 04/01/20(A) | 395 | 404 | ||||||
| Jefferies LoanCore | ||||||||
| 6.875%, 06/01/20(A) | 450 | 435 | ||||||
| Nationstar Mortgage | ||||||||
| 6.500%, 07/01/21 | 175 | 167 | ||||||
| Oxford Finance | ||||||||
| 7.250%, 01/15/18(A) | 950 | 983 | ||||||
| Total Financial Services | 4,470 | |||||||
| Food, Beverage & Tobacco [2.8%] | ||||||||
| B&G Foods | ||||||||
| 4.625%, 06/01/21 | 600 | 572 | ||||||
| Darling Ingredients | ||||||||
| 5.375%, 01/15/22 | 300 | 302 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 57
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| JBS USA | ||||||||
| 5.875%, 07/15/24(A) | $ | 450 | $ | 432 | ||||
| Le-Nature’s | ||||||||
| 9.000%, 06/15/13(A) (D) (G) (H) | 150 | — | ||||||
| Vector Group | ||||||||
| 7.750%, 02/15/21 | 1,750 | 1,842 | ||||||
| Total Food, Beverage & Tobacco | 3,148 | |||||||
| Food-Wholesale/Distrib [1.4%] | ||||||||
| American Seafoods Group | ||||||||
| 10.750%, 05/15/16(A) | 350 | 340 | ||||||
| KeHE Distributors | ||||||||
| 7.625%, 08/15/21(A) | 1,100 | 1,166 | ||||||
| Total Food-Wholesale/Distrib | 1,506 | |||||||
| Gas-Distribution [2.0%] | ||||||||
| LBC Tank Terminals Holding Netherlands | ||||||||
| 6.875%, 05/15/23(A) | 1,200 | 1,278 | ||||||
| NGL Energy Partners | ||||||||
| 6.875%, 10/15/21(A) | 905 | 941 | ||||||
| Total Gas-Distribution | 2,219 | |||||||
| Gold Mining [0.7%] | ||||||||
| Eldorado | ||||||||
| 6.125%, 12/15/20(A) | 750 | 744 | ||||||
| Hazardous Waste Disposal [0.3%] | ||||||||
| Clean Harbors | ||||||||
| 5.125%, 06/01/21 | 300 | 298 | ||||||
| Industrial [0.9%] | ||||||||
| Unifrax I | ||||||||
| 7.500%, 02/15/19(A) | 1,025 | 1,035 | ||||||
| Insurance [2.4%] | ||||||||
| American Equity Investment Life Holding | ||||||||
| 6.625%, 07/15/21 | 600 | 630 | ||||||
| Brown & Brown | ||||||||
| 4.200%, 09/15/24 | 500 | 503 | ||||||
| Fidelity & Guaranty Life Holdings | ||||||||
| 6.375%, 04/01/21(A) | 425 | 445 | ||||||
| Ironshore Holdings US | ||||||||
| 8.500%, 05/15/20(A) | 950 | 1,142 | ||||||
| Total Insurance | 2,720 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Internet Connectiv Svcs [1.0%] | ||||||||
| Zayo Group | ||||||||
| 8.125%, 01/01/20 | $ | 1,048 | $ | 1,124 | ||||
| Internet Infrastr Equip [0.7%] | ||||||||
| CyrusOne | ||||||||
| 6.375%, 11/15/22 | 725 | 758 | ||||||
| Investment Banks [1.7%] | ||||||||
| Bank of America | ||||||||
| 6.250%, 09/29/49(C) | 500 | 497 | ||||||
| Bank of America, MTN | ||||||||
| 4.200%, 08/26/24 | 200 | 198 | ||||||
| Citigroup | ||||||||
| 6.300%, 12/29/49(C) | 400 | 395 | ||||||
| Royal Bank of Scotland Group | ||||||||
| 1.174%, 03/01/17(C) | 800 | 803 | ||||||
| Total Investment Banks | 1,893 | |||||||
| Machinery [0.4%] | ||||||||
| Tempel Steel | ||||||||
| 12.000%, 08/15/16(A) | 500 | 500 | ||||||
| Metal-Copper [1.0%] | ||||||||
| KGHM International | ||||||||
| 7.750%, 06/15/19(A) | 1,000 | 1,055 | ||||||
| Metals & Mining [0.8%] | ||||||||
| Alcoa | ||||||||
| 5.125%, 10/01/24 | 350 | 351 | ||||||
| Kaiser Aluminum | ||||||||
| 8.250%, 06/01/20 | 500 | 551 | ||||||
| Total Metals & Mining | 902 | |||||||
| Miscellaneous Business Services [1.6%] | ||||||||
| ADT | ||||||||
| 6.250%, 10/15/21 | 400 | 414 | ||||||
| MCBC Holdings | ||||||||
| 0.000%, 10/15/14(A) (G) (H) | 50 | 5 | ||||||
| Sitel | ||||||||
| 11.000%, 08/01/17(A) | 1,275 | 1,320 | ||||||
| Total Miscellaneous Business Services | 1,739 | |||||||
| Miscellaneous Manufacturing [0.1%] | ||||||||
| AGY Holding | ||||||||
| 11.000%, 11/15/14(H) | 100 | 99 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 58
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Motion Pictures and Services [0.7%] | ||||||||
| DreamWorks Animation SKG | ||||||||
| 6.875%, 08/15/20(A) | $ | 750 | $ | 784 | ||||
| Oil-Field Services [1.6%] | ||||||||
| FTS International | ||||||||
| 6.250%, 05/01/22(A) | 1,050 | 1,032 | ||||||
| Hiland Partners | ||||||||
| 7.250%, 10/01/20(A) | 725 | 768 | ||||||
| Total Oil-Field Services | 1,800 | |||||||
| Oil-US Royalty Trusts [0.2%] | ||||||||
| IronGate Energy Services | ||||||||
| 11.000%, 07/01/18(A) | 275 | 276 | ||||||
| Paper & Related Products [1.9%] | ||||||||
| Cascades | ||||||||
| 5.500%, 07/15/22(A) | 250 | 242 | ||||||
| Opal Acquisition | ||||||||
| 8.875%, 12/15/21(A) | 1,800 | 1,859 | ||||||
| Total Paper & Related Products | 2,101 | |||||||
| Petrochemicals [1.0%] | ||||||||
| TPC Group | ||||||||
| 8.750%, 12/15/20(A) | 1,045 | 1,110 | ||||||
| Petroleum & Fuel Products [18.4%] | ||||||||
| Antero Resources | ||||||||
| 5.125%, 12/01/22(A) | 250 | 243 | ||||||
| Atlas Energy Holdings Operating | ||||||||
| 9.250%, 08/15/21 | 1,000 | 1,020 | ||||||
| 7.750%, 01/15/21(A) | 300 | 295 | ||||||
| 7.750%, 01/15/21 | 550 | 542 | ||||||
| Atlas Pipeline Partners | ||||||||
| 5.875%, 08/01/23 | 876 | 856 | ||||||
| 4.750%, 11/15/21 | 400 | 372 | ||||||
| Bill Barrett | ||||||||
| 7.625%, 10/01/19 | 1,600 | 1,652 | ||||||
| BreitBurn Energy Partners | ||||||||
| 7.875%, 04/15/22 | 2,300 | 2,329 | ||||||
| Crestwood Midstream Partners | ||||||||
| 6.125%, 03/01/22 | 950 | 952 | ||||||
| Denbury Resources | ||||||||
| 5.500%, 05/01/22 | 700 | 693 | ||||||
| Endeavor Energy Resources | ||||||||
| 7.000%, 08/15/21(A) | 1,600 | 1,648 | ||||||
| Jones Energy Holdings | ||||||||
| 6.750%, 04/01/22(A) | 500 | 500 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Legacy Reserves | ||||||||
| 8.000%, 12/01/20 | $ | 760 | $ | 790 | ||||
| 6.625%, 12/01/21 | 600 | 588 | ||||||
| 6.625%, 12/01/21(A) | 150 | 147 | ||||||
| Milagro Oil & Gas | ||||||||
| 10.500%, 05/15/16(D) (H) | 400 | 316 | ||||||
| Pacific Drilling | ||||||||
| 5.375%, 06/01/20(A) | 750 | 686 | ||||||
| Precision Drilling | ||||||||
| 6.625%, 11/15/20 | 575 | 597 | ||||||
| QEP Resources | ||||||||
| 5.250%, 05/01/23 | 500 | 485 | ||||||
| Regency Energy Partners | ||||||||
| 8.375%, 06/01/19(A) | 675 | 716 | ||||||
| Rosetta Resources | ||||||||
| 5.875%, 06/01/22 | 500 | 498 | ||||||
| Sabine Pass Liquefaction | ||||||||
| 5.750%, 05/15/24(A) | 1,000 | 1,018 | ||||||
| 5.625%, 04/15/23(A) | 200 | 202 | ||||||
| SandRidge Energy | ||||||||
| 8.125%, 10/15/22 | 1,000 | 999 | ||||||
| 7.500%, 03/15/21 | 650 | 634 | ||||||
| Ultra Petroleum | ||||||||
| 5.750%, 12/15/18(A) | 700 | 704 | ||||||
| Unit | ||||||||
| 6.625%, 05/15/21 | 1,000 | 1,002 | ||||||
| Total Petroleum & Fuel Products | 20,484 | |||||||
| Printing & Publishing [0.0%] | ||||||||
| Expo Event Transco | ||||||||
| 9.000%, 06/15/21(A) | 20 | 21 | ||||||
| Property/Casualty Ins [0.7%] | ||||||||
| Lancashire Holdings | ||||||||
| 5.700%, 10/01/22(A) | 480 | 518 | ||||||
| QBE Capital Funding III | ||||||||
| 7.250%, 05/24/41(A) (C) | 250 | 273 | ||||||
| Total Property/Casualty Ins | 791 | |||||||
| Publishing-Books [0.5%] | ||||||||
| McGraw-Hill Global Education Holdings | ||||||||
| 9.750%, 04/01/21 | 500 | 552 | ||||||
| Real Estate [0.3%] | ||||||||
| Kennedy-Wilson | ||||||||
| 5.875%, 04/01/24 | 300 | 302 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 59
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Real Estate Investment Trusts [0.5%] | ||||||||
| Hospitality Properties Trust | ||||||||
| 4.500%, 03/15/25 | $ | 550 | $ | 543 | ||||
| Resorts/Theme Parks [0.5%] | ||||||||
| Cedar Fair | ||||||||
| 5.375%, 06/01/24(A) | 600 | 582 | ||||||
| Retail [6.8%] | ||||||||
| AmeriGas Finance | ||||||||
| 7.000%, 05/20/22 | 1,510 | 1,581 | ||||||
| Brunswick | ||||||||
| 4.625%, 05/15/21(A) | 550 | 535 | ||||||
| Checkers Drive-In Restaurants | ||||||||
| 11.000%, 12/01/17(A) | 650 | 712 | ||||||
| CST Brands | ||||||||
| 5.000%, 05/01/23 | 400 | 390 | ||||||
| GRD Holdings III | ||||||||
| 10.750%, 06/01/19(A) | 2,170 | 2,392 | ||||||
| Guitar Center | ||||||||
| 6.500%, 04/15/19(A) | 695 | 626 | ||||||
| Men’s Wearhouse | ||||||||
| 7.000%, 07/01/22(A) | 100 | 101 | ||||||
| PF Chang’s China Bistro | ||||||||
| 10.250%, 06/30/20(A) | 285 | 283 | ||||||
| QVC | ||||||||
| 4.450%, 02/15/25(A) | 450 | 444 | ||||||
| Suburban Propane Partners | ||||||||
| 5.500%, 06/01/24 | 450 | 430 | ||||||
| Total Retail | 7,494 | |||||||
| Telecommunication Equip [1.0%] | ||||||||
| Alcatel-Lucent USA | ||||||||
| 6.750%, 11/15/20(A) | 300 | 304 | ||||||
| Avaya | ||||||||
| 7.000%, 04/01/19(A) | 850 | 825 | ||||||
| Total Telecommunication Equip | 1,129 | |||||||
| Telephones & Telecommunications [1.4%] | ||||||||
| Level 3 Escrow II | ||||||||
| 5.375%, 08/15/22(A) | 250 | 245 | ||||||
| UPCB Finance V | ||||||||
| 7.250%, 11/15/21(A) | 500 | 535 | ||||||
| Virgin Media Finance | ||||||||
| 6.375%, 04/15/23(A) | 700 | 723 | ||||||
| Total Telephones & Telecommunications | 1,503 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Transportation Services [4.5%] | ||||||||
| Harbinger Group | ||||||||
| 7.875%, 07/15/19 | $ | 404 | $ | 430 | ||||
| 7.750%, 01/15/22 | 1,633 | 1,621 | ||||||
| Marquette Transportation | ||||||||
| 10.875%, 01/15/17 | 1,110 | 1,163 | ||||||
| Pegasus Solutions | ||||||||
| 10.500%, 04/15/15(A) (H) | 100 | 93 | ||||||
| Travelport | ||||||||
| 13.875%, 03/01/16(A) (B) | 177 | 176 | ||||||
| 11.875%, 09/01/16 | 90 | 90 | ||||||
| 6.359%, 03/01/16(A) (C) | 1,333 | 1,333 | ||||||
| Total Transportation Services | 4,906 | |||||||
| Total Corporate Bonds | ||||||||
| (Cost $89,345) | 89,836 | |||||||
| Loan Participations [6.5%] | ||||||||
| Automotive [0.6%] | ||||||||
| American Tire Distributors, First Lien Term Loan | ||||||||
| 5.750%, 06/01/18 | 620 | 619 | ||||||
| American Tire Distributors, Term Loan | ||||||||
| 0.000%, 06/01/18 | 76 | 76 | ||||||
| Total Automotive | 695 | |||||||
| Building Materials [0.4%] | ||||||||
| Interline Brands, Commitment Term Loan | ||||||||
| 4.000%, 03/17/21 | 57 | 56 | ||||||
| Interline Brands, Term Loan | ||||||||
| 4.000%, 03/17/21 | 341 | 334 | ||||||
| Total Building Materials | 390 | |||||||
| Computer & Electronics [1.9%] | ||||||||
| Evergreen Skills, First Lien Term Loan | ||||||||
| 4.500%, 04/28/21 | 629 | 617 | ||||||
| Evergreen Skills, Term Loan | ||||||||
| 4.500%, 04/28/21 | 271 | 265 | ||||||
| Flexera Software, Term Loan | ||||||||
| 4.500%, 04/02/20 | 484 | 480 | ||||||
| Go Daddy Operating, Term Loan | ||||||||
| 4.750%, 05/13/21(F) | 738 | 727 | ||||||
| Total Computer & Electronics | 2,089 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 60
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Forest Products [0.3%] | ||||||||
| Hoffmaster Group, Term Loan | ||||||||
| 5.250%, 05/09/20 | $ | 299 | $ | 298 | ||||
| Insurance [0.4%] | ||||||||
| Asurion Corporation, Incremental Tranche B-1 | ||||||||
| 5.000%, 05/24/19 | 496 | 493 | ||||||
| Manufacturing [0.2%] | ||||||||
| Pelican Products, Term Loan | ||||||||
| 9.250%, 04/09/21 | 250 | 249 | ||||||
| Oil & Gas [0.7%] | ||||||||
| Cactus Wellhead, First Lien Term Loan | ||||||||
| 7.000%, 07/31/20 | 350 | 343 | ||||||
| Expro Holding, Term Loan | ||||||||
| 0.000%, 09/02/21(F) | 300 | 298 | ||||||
| Frac Tech International, Term Loan B | ||||||||
| 5.750%, 04/16/21 | 175 | 175 | ||||||
| Total Oil & Gas | 816 | |||||||
| Professional & Business Services [0.7%] | ||||||||
| AlliedBarton, First Lien Term Loan | ||||||||
| 4.250%, 02/12/21 | 544 | 535 | ||||||
| Intertrust Group, Second Lien Term Loan | ||||||||
| 8.000%, 04/15/22 | 200 | 198 | ||||||
| Total Professional & Business Services | 733 | |||||||
| Retail [0.7%] | ||||||||
| Hardware Holdings, Term Loan | ||||||||
| 0.000%, 09/30/19(F) | 400 | 388 | ||||||
| Neiman Marcus (fka Mariposa), New Term Loan | ||||||||
| 4.250%, 10/25/20 | 348 | 342 | ||||||
| Total Retail | 730 | |||||||
| Telecommunications [0.4%] | ||||||||
| Avaya Inc., Term B3 Extended | ||||||||
| 4.654%, 10/26/17 | 497 | 473 | ||||||
| Description | Face Amount (000)/Shares | Value (000) | ||||||
| Transportation [0.2%] | ||||||||
| CEVA Group, First Lien Term Loan | ||||||||
| 6.500%, 03/19/21 | $ | 199 | $ | 193 | ||||
| Global Aviation, Term Loan | ||||||||
| 10.000%, 07/13/17(D) (H) | 22 | — | ||||||
| 3.000%, 02/13/18(D) (H) | 223 | — | ||||||
| Total Transportation | 193 | |||||||
| Total Loan Participations | ||||||||
| (Cost $7,403) | 7,159 | |||||||
| Preferred Stock [0.9%] | ||||||||
| Insurance [0.9%] | ||||||||
| Aspen Insurance Holdings (C) | 40,000 | 999 | ||||||
| Miscellaneous Manufacturing [0.0%] | ||||||||
| CEVA Group * | 49 | 58 | ||||||
| Total Preferred Stock | ||||||||
| (Cost $1,044) | 1,057 | |||||||
| Common Stock [0.5%] | ||||||||
| Electronic Equipment & Instruments [0.0%] | ||||||||
| CUI *(G) (H) | — | 13 | ||||||
| Metals & Mining [0.1%] | ||||||||
| Mirabela Nickel * | 2,465,571 | 142 | ||||||
| Miscellaneous Manufacturing [0.1%] | ||||||||
| CEVA Group * | 22 | 27 | ||||||
| Printing & Publishing [0.3%] | ||||||||
| Houghton Mifflin Harcourt * | 16,866 | 328 | ||||||
| Total Common Stock | ||||||||
| (Cost $853) | 510 | |||||||
| Convertible Bond [0.5%] | ||||||||
| Metals & Mining [0.5%] | ||||||||
| Mirabela Nickel | ||||||||
| 9.500%, 06/20/19(A) (G) (H) | 542 | 542 | ||||||
| Total Convertible Bond | ||||||||
| (Cost $543) | 542 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 61
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (continued)
| Description | Face Amount (000)/ Number of Warrants/Shares | Value (000) | ||||||
| Asset-Backed Security [0.4%] | ||||||||
| Airlines [0.4%] | ||||||||
| United Airlines 2013-1 Class B Pass Through Trust | ||||||||
| 5.375%, 08/15/21 | $ | 400 | $ | 413 | ||||
| Total Asset-Backed Security | ||||||||
| (Cost $400) | 413 | |||||||
| Mortgage-Backed Security [0.3%] | ||||||||
| SRERS Funding, Ser 2011-RS, Cl A1B1 | ||||||||
| 0.406%, 10/09/14(A) (C) | 351 | 334 | ||||||
| Total Mortgage-Backed Security | ||||||||
| (Cost $308) | 334 | |||||||
| Warrants [0.0%] | ||||||||
| Alion Science and Technology, | ||||||||
| Expires 03/15/17*(H) | 380 | — | ||||||
| Global Aviation*(H) | 35,583 | — | ||||||
| Total Warrants | ||||||||
| (Cost $0) | — | |||||||
| Special Stock [0.0%] | ||||||||
| Broadcasting & Cable [0.0%] | ||||||||
| Adelphia Recovery Trust *(G) (H) | 8,500 | — | ||||||
| Total Special Stock | ||||||||
| (Cost $9) | — | |||||||
| Short-Term Investments [1.6%] | ||||||||
| City National Rochdale Prime Money Market Fund, Institutional Class, 0.010%** ‡ | 856,058 | 856 | ||||||
| SEI Daily Income Trust, Prime Obligation Fund, Cl A, 0.010%** | 955,540 | 956 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $1,812) | 1,812 | |||||||
| Total Investments [91.8%] | ||||||||
| (Cost $101,717) | $ | 101,663 | ||||||
Percentages are based on Net Assets of $110,779 (000).
| ‡ | Investment in Affiliate. |
| * | Non-income producing security. |
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| (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 September 30, 2014, the value of these securities amounted to $49,895 (000), representing 45.0% of the net assets of the Fund. |
| (B) | Payment in Kind. |
| (C) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (D) | In default on interest payments. Rate shown represents the last coupon rate prior to default. |
| (E) | Step Bond — The rate reported is the rate in effect on September 30, 2014. The coupon on a step bond changes on a specific date. |
| (F) | Unsettled bank loan. |
| (G) | Security fair valued using methods determined in good faith by the Fair Value Committee designated by the Board of Trustees. The total market value of such security as of September 30, 2014 was $560 (000) and represented 0.51% of net assets of the Fund. |
| (H) | Security is considered illiquid. The total value of such securities as of September 30, 2014 was $1,101 (000) and represented 1.0% of net assets of the Fund. |
Cl — Class
MTN — Medium Term Note
REIT — Real Estate Investment Trust
Ser — Series
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3(1) | Total | ||||||||||||
| Corporate Bonds | $ | — | $ | 89,831 | $ | 5 | $ | 89,836 | ||||||||
| Loan Participations | — | 7,159 | — | 7,159 | ||||||||||||
| Preferred Stock | 999 | 58 | — | 1,057 | ||||||||||||
| Common Stock | 470 | 27 | 13 | 510 | ||||||||||||
| Convertible Bond | — | — | 542 | 542 | ||||||||||||
| Asset-Backed Security | — | 413 | — | 413 | ||||||||||||
| Mortgage-Backed Security | — | 334 | — | 334 | ||||||||||||
| Warrants | — | — | — | — | ||||||||||||
| Special Stock | — | — | — | — | ||||||||||||
| Short-Term Investments | 1,812 | — | — | 1,812 | ||||||||||||
| Total Investments in Securities | $ | 3,281 | $ | 97,822 | $ | 560 | $ | 101,663 | ||||||||
| (1) | Of the $560 (000) Level 3 securities as of September 30, 2014, all are not valued via third party pricing vendors and broker quotes. If significant, the disclosure of the unobservable inputs is required for those Level 3 securities that are not valued by third party pricing vendors or broker quotes. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 62
schedule of investments
September 30, 2014
City National Rochdale High Yield Bond Fund (concluded)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value (000) as of September 30, 2014:
| Investments in Corporate Bonds (000) | Investments in Preferred Stock (000) | Investments in Common Stock (000) | ||||||||||
| Beginning balance as of October 1, 2013 | $ | — | $ | 40 | $ | 19 | ||||||
| Accrued discounts/ premiums | — | — | — | |||||||||
| Realized gain/(loss) | — | — | — | |||||||||
| Change in unrealized appreciation/(depreciation) | — | 18 | 8 | |||||||||
| Purchases | — | — | — | |||||||||
| Sales/paydowns | — | — | — | |||||||||
| Transfers into Level 3 | 5 | — | 13 | |||||||||
| Transfers out of Level 3 | — | (58 | ) | (27 | ) | |||||||
| Ending balance as of March 31, 2014 | $ | 5 | $ | — | $ | 13 | ||||||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | — | $ | 18 | $ | 8 | ||||||
| Investments in Convertible Bonds (000) | Investments in Mortgage-Backed Securities (000) | Investments in Warrants (000) | ||||||||||
| Beginning balance as of October 1, 2013 | $ | — | $ | 334 | $ | 28 | ||||||
| Accrued discounts/ premiums | — | 1 | — | |||||||||
| Realized gain/(loss) | 5 | (235 | ) | |||||||||
| Change in unrealized appreciation/(depreciation) | — | 28 | 222 | |||||||||
| Purchases | 542 | 5 | — | |||||||||
| Sales/paydowns | — | (39 | ) | (15 | ) | |||||||
| Transfers into Level 3 | — | — | — | |||||||||
| Transfers out of Level 3 | — | (334 | ) | — | ||||||||
| Ending balance as of March 31, 2014 | $ | 542 | $ | — | $ | — | ||||||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | — | $ | 28 | $ | 222 | ||||||
| Total (000) | ||||
| Beginning balance as of October 1, 2013 | $ | 421 | ||
| Accrued discounts/ premiums | 1 | |||
| Realized gain/(loss) | (230 | ) | ||
| Change in unrealized appreciation/(depreciation) | 276 | |||
| Purchases | 547 | |||
| Sales/paydowns | (54 | ) | ||
| Transfers into Level 3 | 18 | |||
| Transfers out of Level 3 | (419 | ) | ||
| Ending balance as of March 31, 2014 | $ | 560 | ||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | 276 | ||
For the year ended September 30, 2014, there have been transfers between Level 1 and Level 2 assets and liabilities. For the year ended September 30, 2014, there have been transfers between Level 2 and Level 3 assets and liabilities. The transfers between fair values hierarchy levels were due to changes in the availability of observable inputs to determine fair value. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 63
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Corporate Bonds [68.7%] | ||||||||
| Consumer Discretionary [1.8%] | ||||||||
| AutoZone | ||||||||
| 3.700%, 04/15/22 | $ | 250 | $ | 255 | ||||
| Best Buy | ||||||||
| 3.750%, 03/15/16 | 300 | 306 | ||||||
| CBS | ||||||||
| 3.375%, 03/01/22 | 175 | 175 | ||||||
| Comcast | ||||||||
| 3.125%, 07/15/22 | 200 | 201 | ||||||
| Expedia | ||||||||
| 5.950%, 08/15/20 | 250 | 281 | ||||||
| Gap | ||||||||
| 5.950%, 04/12/21 | 495 | 563 | ||||||
| Johnson Controls | ||||||||
| 5.500%, 01/15/16 | 100 | 106 | ||||||
| Scripps Networks Interactive | ||||||||
| 2.700%, 12/15/16 | 1,000 | 1,034 | ||||||
| Time Warner Cable | ||||||||
| 4.125%, 02/15/21 | 165 | 175 | ||||||
| Toys R Us Property II | ||||||||
| 8.500%, 12/01/17 | 1 | 1 | ||||||
| Tupperware Brands | ||||||||
| 4.750%, 06/01/21 | 500 | 531 | ||||||
| Viacom | ||||||||
| 6.250%, 04/30/16 | 125 | 135 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Yum! Brands | ||||||||
| 6.250%, 03/15/18 | $ | 30 | $ | 34 | ||||
| Total Consumer Discretionary | 3,797 | |||||||
| Consumer Staples [1.8%] | ||||||||
| Avon Products | ||||||||
| 6.500%, 03/01/19 | 250 | 269 | ||||||
| Bunge Finance | ||||||||
| 8.500%, 06/15/19 | 105 | 131 | ||||||
| 5.900%, 04/01/17 | 100 | 110 | ||||||
| 5.100%, 07/15/15 | 500 | 517 | ||||||
| Campbell Soup | ||||||||
| 8.875%, 05/01/21 | 350 | 467 | ||||||
| ConAgra Foods | ||||||||
| 4.950%, 08/15/20 | 410 | 449 | ||||||
| 1.900%, 01/25/18 | 200 | 199 | ||||||
| Lorillard Tobacco | ||||||||
| 8.125%, 06/23/19 | 500 | 612 | ||||||
| PepsiAmericas | ||||||||
| 4.875%, 01/15/15 | 250 | 253 | ||||||
| Reynolds American | ||||||||
| 6.750%, 06/15/17 | 100 | 113 | ||||||
| WM Wrigley Jr | ||||||||
| 4.650%, 07/15/15 | 750 | 773 | ||||||
| Total Consumer Staples | 3,893 | |||||||
| Energy [5.1%] | ||||||||
| Boardwalk Pipelines | ||||||||
| 5.875%, 11/15/16 | 146 | 158 | ||||||
| 5.750%, 09/15/19 | 175 | 191 | ||||||
| 5.500%, 02/01/17 | 221 | 238 | ||||||
| 5.200%, 06/01/18 | 84 | 88 | ||||||
| BP Capital Markets | ||||||||
| 3.200%, 03/11/16 | 100 | 104 | ||||||
| 3.125%, 10/01/15 | 145 | 149 | ||||||
| Buckeye Partners | ||||||||
| 6.050%, 01/15/18 | 155 | 173 | ||||||
| ConocoPhillips | ||||||||
| 5.750%, 02/01/19 | 290 | 331 | ||||||
| DCP Midstream | ||||||||
| 9.750%, 03/15/19(A) | 114 | 146 | ||||||
| DCP Midstream Operating | ||||||||
| 3.250%, 10/01/15 | 120 | 123 | ||||||
| Ecopetrol | ||||||||
| 7.625%, 07/23/19 | 250 | 297 | ||||||
| Enbridge Energy Partners | ||||||||
| 5.875%, 12/15/16 | 191 | 209 | ||||||
| 5.350%, 12/15/14 | 20 | 20 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 64
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Energy Transfer Partners | ||||||||
| 9.700%, 03/15/19 | $ | 330 | $ | 422 | ||||
| 9.000%, 04/15/19 | 189 | 237 | ||||||
| 6.125%, 02/15/17 | 426 | 470 | ||||||
| 3.600%, 02/01/23 | 200 | 195 | ||||||
| Enterprise Products Operating | ||||||||
| 6.500%, 01/31/19 | 140 | 164 | ||||||
| 3.700%, 06/01/15 | 125 | 127 | ||||||
| EOG Resources | ||||||||
| 5.625%, 06/01/19 | 290 | 333 | ||||||
| FMC Technologies | ||||||||
| 3.450%, 10/01/22 | 200 | 197 | ||||||
| Husky Energy | ||||||||
| 3.950%, 04/15/22 | 150 | 155 | ||||||
| Kinder Morgan Energy Partners | ||||||||
| 5.950%, 02/15/18 | 75 | 84 | ||||||
| 5.300%, 09/15/20 | 125 | 138 | ||||||
| Marathon Oil | ||||||||
| 6.000%, 10/01/17 | 150 | 169 | ||||||
| National Oilwell Varco | ||||||||
| 6.125%, 08/15/15 | 100 | 100 | ||||||
| ONEOK Partners | ||||||||
| 2.000%, 10/01/17 | 155 | 156 | ||||||
| Panhandle Eastern Pipe Line | ||||||||
| 7.000%, 06/15/18 | 396 | 456 | ||||||
| Petrofac | ||||||||
| 3.400%, 10/10/18(A) | 125 | 128 | ||||||
| Plains All American Pipeline | ||||||||
| 5.875%, 08/15/16 | 205 | 222 | ||||||
| Plains Exploration & Production | ||||||||
| 6.125%, 06/15/19 | 1,309 | 1,433 | ||||||
| PPL Energy Supply | ||||||||
| 6.200%, 05/15/16 | 105 | 112 | ||||||
| Puget Energy | ||||||||
| 6.000%, 09/01/21 | 500 | 581 | ||||||
| Rowan | ||||||||
| 4.875%, 06/01/22 | 200 | 208 | ||||||
| Sabine Pass LNG | ||||||||
| 7.500%, 11/30/16 | 100 | 106 | ||||||
| Spectra Energy Capital | ||||||||
| 6.750%, 07/15/18 | 745 | 846 | ||||||
| 6.200%, 04/15/18 | 135 | 153 | ||||||
| Total Capital International | ||||||||
| 1.500%, 02/17/17 | 100 | 101 | ||||||
| Transocean | ||||||||
| 7.375%, 04/15/18 | 494 | 558 | ||||||
| 6.000%, 03/15/18 | 500 | 539 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Williams Partners | ||||||||
| 3.350%, 08/15/22 | $ | 200 | $ | 196 | ||||
| Total Energy | 10,813 | |||||||
| Financials [27.9%] | ||||||||
| ACE INA Holdings | ||||||||
| 5.800%, 03/15/18 | 300 | 339 | ||||||
| Alleghany | ||||||||
| 5.625%, 09/15/20 | 270 | 302 | ||||||
| American Express | ||||||||
| 0.825%, 05/22/18(B) | 3,000 | 3,026 | ||||||
| American Express Credit, MTN | ||||||||
| 2.800%, 09/19/16 | 175 | 181 | ||||||
| American International Group | ||||||||
| 6.400%, 12/15/20 | 49 | 58 | ||||||
| Aon | ||||||||
| 3.500%, 09/30/15 | 200 | 206 | ||||||
| Associates Corp of North America | ||||||||
| 6.950%, 11/01/18 | 150 | 176 | ||||||
| Axis Specialty Finance | ||||||||
| 5.875%, 06/01/20 | 250 | 285 | ||||||
| Bank of America | ||||||||
| 10.200%, 07/15/15 | 350 | 376 | ||||||
| 5.700%, 05/02/17 | 950 | 1,042 | ||||||
| 5.420%, 03/15/17 | 42 | 46 | ||||||
| Bank of America, MTN | ||||||||
| 5.650%, 05/01/18 | 145 | 161 | ||||||
| Bank of Montreal, MTN | ||||||||
| 1.450%, 04/09/18 | 340 | 336 | ||||||
| Bank of New York Mellon, MTN | ||||||||
| 3.100%, 01/15/15 | 175 | 176 | ||||||
| Barclays Bank | ||||||||
| 5.125%, 01/08/20 | 100 | 112 | ||||||
| BB&T, MTN | ||||||||
| 1.600%, 08/15/17 | 355 | 356 | ||||||
| Bear Stearns | ||||||||
| 7.250%, 02/01/18 | 275 | 320 | ||||||
| 5.550%, 01/22/17 | 468 | 510 | ||||||
| Berkshire Hathaway | ||||||||
| 3.000%, 02/11/23 | 250 | 248 | ||||||
| 1.550%, 02/09/18 | 300 | 299 | ||||||
| Berkshire Hathaway Finance | ||||||||
| 1.600%, 05/15/17 | 440 | 445 | ||||||
| BlackRock | ||||||||
| 3.500%, 12/10/14 | 170 | 171 | ||||||
| Capital One Financial | ||||||||
| 1.500%, 03/22/18 | 475 | 468 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 65
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Citigroup | ||||||||
| 6.125%, 05/15/18 | $ | 140 | $ | 159 | ||||
| 4.500%, 01/14/22 | 2,000 | 2,144 | ||||||
| CNA Financial | ||||||||
| 6.950%, 01/15/18 | 1,076 | 1,233 | ||||||
| Commonwealth Bank of Australia, MTN | ||||||||
| 5.000%, 10/15/19(A) | 150 | 167 | ||||||
| Countrywide Financial, MTN | ||||||||
| 6.000%, 08/26/20(C) | 313 | 311 | ||||||
| Credit Suisse NY, MTN | ||||||||
| 5.300%, 08/13/19 | 150 | 169 | ||||||
| Daimler Finance North America | ||||||||
| 1.875%, 01/11/18(A) | 4,200 | 4,196 | ||||||
| Dresdner Bank NY | ||||||||
| 7.250%, 09/15/15 | 1,150 | 1,202 | ||||||
| ERAC USA Finance | ||||||||
| 3.300%, 10/15/22(A) | 250 | 248 | ||||||
| Ford Motor Credit | ||||||||
| 4.250%, 02/03/17 | 2,000 | 2,121 | ||||||
| 1.700%, 05/09/16 | 1,000 | 1,008 | ||||||
| Goldman Sachs Group | ||||||||
| 6.250%, 09/01/17 | 550 | 618 | ||||||
| 6.150%, 04/01/18 | 150 | 169 | ||||||
| 5.625%, 01/15/17 | 700 | 760 | ||||||
| 5.350%, 01/15/16 | 250 | 264 | ||||||
| Goldman Sachs Group, MTN | ||||||||
| 6.000%, 06/15/20 | 500 | 574 | ||||||
| HSBC Finance | ||||||||
| 6.676%, 01/15/21 | 83 | 97 | ||||||
| ING Bank | ||||||||
| 3.750%, 03/07/17(A) | 200 | 210 | ||||||
| Janus Capital Group | ||||||||
| 6.700%, 06/15/17 | 600 | 671 | ||||||
| Jefferies Group | ||||||||
| 8.500%, 07/15/19 | 1,000 | 1,236 | ||||||
| 5.500%, 03/15/16 | 1,000 | 1,059 | ||||||
| JPMorgan Chase | ||||||||
| 4.250%, 10/15/20 | 150 | 160 | ||||||
| 3.375%, 05/01/23 | 2,500 | 2,395 | ||||||
| JPMorgan Chase, MTN | ||||||||
| 5.300%, 05/15/18 | 150 | 151 | ||||||
| Lehman Brothers Holdings, MTN | ||||||||
| 7.000%, 09/28/37(D) | 400 | 81 | ||||||
| Macquarie Bank, MTN | ||||||||
| 2.600%, 06/24/19(A) | 4,200 | 4,197 | ||||||
| Marsh & McLennan, MTN | ||||||||
| 2.550%, 10/15/18 | 100 | 102 | ||||||
| MetLife | ||||||||
| 6.817%, 08/15/18 | 3,500 | 4,105 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Metropolitan Life Global Funding I | ||||||||
| 3.875%, 04/11/22(A) | $ | 125 | $ | 131 | ||||
| Moody’s | ||||||||
| 5.500%, 09/01/20 | 800 | 901 | ||||||
| Morgan Stanley, MTN | ||||||||
| 5.625%, 09/23/19 | 2,000 | 2,251 | ||||||
| NASDAQ OMX Group | ||||||||
| 5.550%, 01/15/20 | 1,249 | 1,378 | ||||||
| National Bank of Canada, MTN | ||||||||
| 1.450%, 11/07/17 | 750 | 745 | ||||||
| National Rural Utilities Cooperative Finance | ||||||||
| 10.375%, 11/01/18 | 125 | 164 | ||||||
| 6.550%, 11/01/18 | 300 | 351 | ||||||
| Navient, MTN | ||||||||
| 5.000%, 06/15/18 | 2 | 2 | ||||||
| Penske Truck Leasing | ||||||||
| 3.750%, 05/11/17(A) | 3,000 | 3,154 | ||||||
| Principal Financial Group | ||||||||
| 8.875%, 05/15/19 | 130 | 165 | ||||||
| 3.300%, 09/15/22 | 200 | 199 | ||||||
| Protective Life | ||||||||
| 6.400%, 01/15/18 | 250 | 278 | ||||||
| Prudential Financial, MTN | ||||||||
| 5.375%, 06/21/20 | 145 | 164 | ||||||
| Royal Bank of Canada, MTN | ||||||||
| 0.692%, 09/09/16(B) | 125 | 126 | ||||||
| Silicon Valley Bank | ||||||||
| 6.050%, 06/01/17 | 355 | 387 | ||||||
| Simon Property Group | ||||||||
| 6.100%, 05/01/16 | 600 | 643 | ||||||
| SunTrust Banks | ||||||||
| 6.000%, 09/11/17 | 254 | 285 | ||||||
| Svenska Handelsbanken, MTN | ||||||||
| 5.125%, 03/30/20(A) | 5,800 | 6,570 | ||||||
| TD Ameritrade Holding | ||||||||
| 5.600%, 12/01/19 | 290 | 335 | ||||||
| Toyota Motor Credit, MTN | ||||||||
| 2.000%, 09/15/16 | 100 | 102 | ||||||
| UBS, MTN | ||||||||
| 7.375%, 06/15/17 | 388 | 439 | ||||||
| US Bancorp, MTN | ||||||||
| 1.650%, 05/15/17 | 345 | 348 | ||||||
| Volkswagen International Finance | ||||||||
| 2.375%, 03/22/17(A) | 125 | 128 | ||||||
| Wells Fargo Bank | ||||||||
| 5.750%, 05/16/16 | 100 | 108 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 66
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Westpac Banking, MTN | ||||||||
| 1.600%, 01/12/18 | $ | 250 | $ | 249 | ||||
| Wilmington Trust | ||||||||
| 8.500%, 04/02/18 | 315 | 375 | ||||||
| Total Financials | 59,424 | |||||||
| Healthcare [0.5%] | ||||||||
| Actavis | ||||||||
| 3.250%, 10/01/22 | 500 | 482 | ||||||
| Boston Scientific | ||||||||
| 6.400%, 06/15/16 | 145 | 158 | ||||||
| UnitedHealth Group | ||||||||
| 4.700%, 02/15/21 | 200 | 223 | ||||||
| 1.625%, 03/15/19 | 250 | 245 | ||||||
| Total Healthcare | 1,108 | |||||||
| Industrials [5.1%] | ||||||||
| Carlisle | ||||||||
| 3.750%, 11/15/22 | 250 | 251 | ||||||
| CNH America | ||||||||
| 7.250%, 01/15/16 | 388 | 407 | ||||||
| Eaton | ||||||||
| 8.875%, 06/15/19 | 125 | 153 | ||||||
| Embraer Overseas | ||||||||
| 5.696%, 09/16/23 | 520 | 555 | ||||||
| GATX | ||||||||
| 6.000%, 02/15/18 | 170 | 190 | ||||||
| General Electric Capital, MTN | ||||||||
| 6.000%, 08/07/19 | 410 | 478 | ||||||
| 5.625%, 09/15/17 | 300 | 335 | ||||||
| 5.300%, 02/11/21 | 3,500 | 3,945 | ||||||
| 4.375%, 09/16/20 | 150 | 164 | ||||||
| IDEX | ||||||||
| 4.200%, 12/15/21 | 250 | 257 | ||||||
| Joy Global | ||||||||
| 6.000%, 11/15/16 | 500 | 546 | ||||||
| Lennox International | ||||||||
| 4.900%, 05/15/17 | 250 | 262 | ||||||
| NuStar Logistics | ||||||||
| 8.150%, 04/15/18 | 250 | 284 | ||||||
| 4.800%, 09/01/20 | 200 | 195 | ||||||
| Owens Corning | ||||||||
| 6.500%, 12/01/16 | 620 | 683 | ||||||
| Penske Truck Leasing | ||||||||
| 4.875%, 07/11/22(A) | 200 | 215 | ||||||
| 4.250%, 01/17/23(A) | 300 | 309 | ||||||
| 3.375%, 03/15/18(A) | 250 | 260 | ||||||
| 2.500%, 03/15/16(A) | 500 | 510 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Republic Services | ||||||||
| 3.550%, 06/01/22 | $ | 250 | $ | 254 | ||||
| Roper Industries | ||||||||
| 3.125%, 11/15/22 | 200 | 195 | ||||||
| 1.850%, 11/15/17 | 250 | 251 | ||||||
| Xylem | ||||||||
| 3.550%, 09/20/16 | 200 | 209 | ||||||
| Total Industrials | 10,908 | |||||||
| Information Technology [3.2%] | ||||||||
| Arrow Electronics | ||||||||
| 6.875%, 06/01/18 | 400 | 456 | ||||||
| Avnet | ||||||||
| 6.625%, 09/15/16 | 128 | 141 | ||||||
| Fiserv | ||||||||
| 3.500%, 10/01/22 | 250 | 251 | ||||||
| KLA-Tencor | ||||||||
| 6.900%, 05/01/18 | 200 | 232 | ||||||
| Lexmark International | ||||||||
| 5.125%, 03/15/20 | 2,250 | 2,368 | ||||||
| Nokia | ||||||||
| 5.375%, 05/15/19 | 950 | 1,005 | ||||||
| Texas Instruments | ||||||||
| 1.650%, 08/03/19 | 295 | 287 | ||||||
| Western Union | ||||||||
| 5.253%, 04/01/20 | 2,000 | 2,185 | ||||||
| Total Information Technology | 6,925 | |||||||
| Materials [7.4%] | ||||||||
| Airgas | ||||||||
| 2.900%, 11/15/22 | 250 | 241 | ||||||
| AngloGold Ashanti Holdings | ||||||||
| 5.375%, 04/15/20 | 1,317 | 1,322 | ||||||
| ArcelorMittal | ||||||||
| 10.350%, 06/01/19 | 200 | 244 | ||||||
| 9.500%, 02/15/15 | 400 | 411 | ||||||
| 6.125%, 06/01/18 | 800 | 848 | ||||||
| Avery Dennison | ||||||||
| 5.375%, 04/15/20 | 405 | 447 | ||||||
| Cabot | ||||||||
| 5.000%, 10/01/16 | 300 | 321 | ||||||
| Glencore Canada | ||||||||
| 6.000%, 10/15/15 | 1,192 | 1,250 | ||||||
| 5.500%, 06/15/17 | 1,010 | 1,101 | ||||||
| Glencore Funding | ||||||||
| 1.700%, 05/27/16(A) | 1,500 | 1,510 | ||||||
| 1.587%, 01/15/19 | 2,000 | 2,015 | ||||||
| International Paper | ||||||||
| 7.950%, 06/15/18 | 130 | 155 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 67
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Kinross | ||||||||
| 5.125%, 09/01/21 | $ | 303 | $ | 309 | ||||
| Rio Tinto Finance USA | ||||||||
| 6.500%, 07/15/18 | 100 | 116 | ||||||
| 3.500%, 03/22/22 | 4,000 | 4,058 | ||||||
| Southern Copper | ||||||||
| 6.375%, 07/27/15 | 380 | 396 | ||||||
| Vale Canada | ||||||||
| 5.700%, 10/15/15 | 100 | 105 | ||||||
| Vale Overseas | �� | |||||||
| 5.625%, 09/15/19 | 505 | 564 | ||||||
| Worthington Industries | ||||||||
| 6.500%, 04/15/20 | 250 | 284 | ||||||
| Total Materials | 15,697 | |||||||
| REITs [6.8%] | ||||||||
| American Tower | ||||||||
| 3.400%, 02/15/19 | 2,100 | 2,146 | ||||||
| BioMed Realty | ||||||||
| 3.850%, 04/15/16 | 500 | 521 | ||||||
| Boston Properties | ||||||||
| 5.875%, 10/15/19 | 140 | 161 | ||||||
| CommonWealth REIT | ||||||||
| 6.650%, 01/15/18 | 300 | 331 | ||||||
| 5.875%, 09/15/20 | 105 | 113 | ||||||
| DDR | ||||||||
| 4.625%, 07/15/22 | 250 | 264 | ||||||
| Equity One | ||||||||
| 3.750%, 11/15/22 | 250 | 248 | ||||||
| HCP | ||||||||
| 6.000%, 03/01/15 | 215 | 220 | ||||||
| 6.000%, 01/30/17 | 350 | 387 | ||||||
| 2.625%, 02/01/20 | 175 | 172 | ||||||
| HCP, MTN | ||||||||
| 6.300%, 09/15/16 | 462 | 508 | ||||||
| Health Care REIT | ||||||||
| 5.875%, 05/15/15 | 268 | 277 | ||||||
| 4.950%, 01/15/21 | 155 | 171 | ||||||
| Healthcare Realty Trust | ||||||||
| 6.500%, 01/17/17 | 250 | 276 | ||||||
| Highwoods Realty | ||||||||
| 3.625%, 01/15/23 | 200 | 197 | ||||||
| Liberty Property, MTN | ||||||||
| 7.500%, 01/15/18 | 177 | 204 | ||||||
| National Retail Properties | ||||||||
| 6.875%, 10/15/17 | 300 | 344 | ||||||
| 3.800%, 10/15/22 | 350 | 357 | ||||||
| Prologis | ||||||||
| 6.875%, 03/15/20 | 101 | 119 | ||||||
| 3.350%, 02/01/21 | 2,200 | 2,195 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Realty Income | ||||||||
| 5.950%, 09/15/16 | $ | 129 | $ | 141 | ||||
| 3.250%, 10/15/22 | 200 | 195 | ||||||
| Senior Housing Properties Trust | ||||||||
| 6.750%, 12/15/21 | 500 | 577 | ||||||
| 4.300%, 01/15/16 | 500 | 514 | ||||||
| Simon Property Group | ||||||||
| 5.750%, 12/01/15 | 408 | 428 | ||||||
| 2.200%, 02/01/19 | 2,800 | 2,808 | ||||||
| 2.150%, 09/15/17 | 350 | 357 | ||||||
| Tanger Properties | ||||||||
| 6.150%, 11/15/15 | 115 | 122 | ||||||
| Washington Real Estate Investment Trust | ||||||||
| 3.950%, 10/15/22 | 250 | 250 | ||||||
| Total REITs | 14,603 | |||||||
| Shipping & Transportation [0.4%] | ||||||||
| Federal Express 1998 Pass-Through Trust | ||||||||
| 7.020%, 01/15/16 | 382 | 397 | ||||||
| Union Pacific | ||||||||
| 4.875%, 01/15/15 | 400 | 405 | ||||||
| Total Shipping & Transportation | 802 | |||||||
| Telecommunication Services [4.8%] | ||||||||
| America Movil | ||||||||
| 5.750%, 01/15/15 | 186 | 189 | ||||||
| 1.235%, 09/12/16(B) | 3,000 | 3,033 | ||||||
| AT&T | ||||||||
| 5.600%, 05/15/18 | 310 | 349 | ||||||
| CenturyLink | ||||||||
| 6.450%, 06/15/21 | 355 | 380 | ||||||
| 5.800%, 03/15/22 | 250 | 256 | ||||||
| COX Communications | ||||||||
| 7.250%, 11/15/15 | 231 | 247 | ||||||
| COX Communications, MTN | ||||||||
| 6.850%, 01/15/18 | 224 | 254 | ||||||
| Deutsche Telekom International Finance BV | ||||||||
| 6.000%, 07/08/19 | 50 | 58 | ||||||
| Qwest | ||||||||
| 6.500%, 06/01/17 | 100 | 111 | ||||||
| Telefonica Emisiones SAU | ||||||||
| 6.421%, 06/20/16 | 275 | 299 | ||||||
| 6.221%, 07/03/17 | 286 | 319 | ||||||
| 5.462%, 02/16/21 | 115 | 128 | ||||||
| 5.134%, 04/27/20 | 300 | 330 | ||||||
| 4.949%, 01/15/15 | 764 | 773 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 68
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| 3.992%, 02/16/16 | $ | 500 | $ | 520 | ||||
| 3.729%, 04/27/15 | 400 | 407 | ||||||
| Verizon Communications | ||||||||
| 8.750%, 11/01/18 | 2,000 | 2,493 | ||||||
| Total Telecommunication Services | 10,146 | |||||||
| Utilities [3.9%] | ||||||||
| AmeriGas Partners | ||||||||
| 6.500%, 05/20/21 | 477 | 489 | ||||||
| Arizona Public Service | ||||||||
| 6.250%, 08/01/16 | 44 | 48 | ||||||
| British Transco Finance | ||||||||
| 6.625%, 06/01/18 | 128 | 148 | ||||||
| Cleveland Electric Illuminating | ||||||||
| 7.880%, 11/01/17 | 10 | 12 | ||||||
| 5.700%, 04/01/17 | 6 | 6 | ||||||
| Entergy Mississippi | ||||||||
| 6.640%, 07/01/19 | 540 | 637 | ||||||
| Entergy Texas | ||||||||
| 7.125%, 02/01/19 | 190 | 227 | ||||||
| Exelon Generation | ||||||||
| 6.200%, 10/01/17 | 2,125 | 2,389 | ||||||
| Jersey Central Power & Light | ||||||||
| 5.625%, 05/01/16 | 265 | 283 | ||||||
| KeySpan | ||||||||
| 8.000%, 11/15/30 | 50 | 69 | ||||||
| Korea Electric Power | ||||||||
| 6.750%, 08/01/27 | 75 | 93 | ||||||
| National Fuel Gas | ||||||||
| 4.900%, 12/01/21 | 500 | 536 | ||||||
| National Grid | ||||||||
| 6.300%, 08/01/16 | 270 | 296 | ||||||
| Nisource Capital Markets, MTN | ||||||||
| 7.860%, 03/27/17 | 163 | 182 | ||||||
| Northern Indiana Public Service, MTN | ||||||||
| 7.590%, 06/12/17 | 440 | 493 | ||||||
| ONEOK | ||||||||
| 4.250%, 02/01/22 | 294 | 290 | ||||||
| Pennsylvania Electric | ||||||||
| 6.625%, 04/01/19 | 15 | 17 | ||||||
| PPL Energy Supply | ||||||||
| 5.700%, 10/15/15 | 75 | 78 | ||||||
| Puget Energy | ||||||||
| 5.625%, 07/15/22 | 250 | 287 | ||||||
| Puget Sound Energy, MTN | ||||||||
| 6.740%, 06/15/18 | 57 | 66 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Southwestern Electric Power | ||||||||
| 5.875%, 03/01/18 | $ | 581 | $ | 654 | ||||
| 3.550%, 02/15/22 | 500 | 512 | ||||||
| Southwestern Public Service | ||||||||
| 8.750%, 12/01/18 | 250 | 314 | ||||||
| Trans-Allegheny Interstate Line | ||||||||
| 4.000%, 01/15/15(A) | 100 | 101 | ||||||
| Xcel Energy | ||||||||
| 5.613%, 04/01/17 | 10 | 11 | ||||||
| Total Utilities | 8,238 | |||||||
| Total Corporate Bonds | ||||||||
| (Cost $142,490) | 146,354 | |||||||
| U.S. Government Agency Obligations [9.0%] | ||||||||
| FHLB | ||||||||
| 0.875%, 05/24/17 | 2,000 | 1,995 | ||||||
| FHLMC | ||||||||
| 1.750%, 05/30/19 | 3,000 | 2,991 | ||||||
| 1.000%, 09/29/17 | 660 | 657 | ||||||
| FNMA | ||||||||
| 5.000%, 03/15/16 | 5,700 | 6,079 | ||||||
| 1.875%, 09/18/18 | 150 | 151 | ||||||
| 1.625%, 11/27/18 | 6,000 | 5,988 | ||||||
| 1.375%, 11/15/16 | 460 | 467 | ||||||
| 1.125%, 04/27/17 | 470 | 472 | ||||||
| 0.875%, 05/21/18 | 350 | 343 | ||||||
| Total U.S. Government Agency Obligations | ||||||||
| (Cost $19,141) | 19,143 | |||||||
| Municipal Bonds [3.7%] | ||||||||
| California [1.9%] | ||||||||
| California State, Department of Water Resources, Ser L, RB | ||||||||
| Callable 05/01/20 @ 100 | ||||||||
| 5.000%, 05/01/21 | 3,460 | 4,106 | ||||||
| Florida [1.8%] | ||||||||
| Florida State, Hurricane Catastrophe Fund Finance, Ser A, RB | ||||||||
| 2.107%, 07/01/18 | 3,870 | 3,888 | ||||||
| Total Municipal Bonds | ||||||||
| (Cost $7,907) | 7,994 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 69
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Shares/Face Amount (000) | Value (000) | ||||||
| Preferred Stock [3.6%] | ||||||||
| Financials [1.2%] | ||||||||
| BB&T | 10,000 | $ | 231 | |||||
| Citigroup | 10,000 | 238 | ||||||
| Goldman Sachs Group | 25,000 | 603 | ||||||
| HSBC Holdings | 30,000 | 799 | ||||||
| JPMorgan Chase | 20,000 | 458 | ||||||
| Prudential Financial | 10,000 | 247 | ||||||
| Total Financials | 2,576 | |||||||
| Industrials [0.4%] | ||||||||
| Pitney Bowes | 10,000 | 259 | ||||||
| Stanley Black & Decker | 20,000 | 494 | ||||||
| Total Industrials | 753 | |||||||
| REITs [1.5%] | ||||||||
| Digital Realty Trust | 10,000 | 252 | ||||||
| Kimco Realty | 10,000 | 231 | ||||||
| National Retail Properties | 20,000 | 517 | ||||||
| Realty Income | 20,000 | 523 | ||||||
| Senior Housing Properties Trust | 52,500 | 1,234 | ||||||
| Vornado Realty Trust | 20,000 | 478 | ||||||
| Total REITs | 3,235 | |||||||
| Telecommunication Services [0.3%] | ||||||||
| Telephone & Data Systems | 30,000 | 679 | ||||||
| Utilities [0.2%] | ||||||||
| SCE Trust I | 20,000 | 471 | ||||||
| Total Preferred Stock | ||||||||
| (Cost $7,904) | 7,714 | |||||||
| Commercial Mortgage-Backed Obligations [3.6%] | ||||||||
| Bear Stearns Commercial Mortgage Securities Trust, Ser PWR9, Cl A4A | ||||||||
| 4.871%, 09/11/42 | $ | 163 | 167 | |||||
| Carmax Auto Owner Trust, Ser 2014-2, Cl A3 | ||||||||
| 0.980%, 01/15/19 | 5,350 | 5,340 | ||||||
| CD 2005-CD1 Commercial Mortgage Trust, Ser CD1, Cl A4 | ||||||||
| 5.399%, 07/15/44(B) | 190 | 195 | ||||||
| Commercial Mortgage Trust, Ser 2005-C6, Cl A5A | ||||||||
| 5.116%, 06/10/44(B) | 261 | 266 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Commercial Mortgage Trust, Ser 2012-CR2, Cl A4 | ||||||||
| 3.147%, 08/15/45 | $ | 125 | $ | 125 | ||||
| Credit Suisse First Boston Mortgage Securities, Ser C5, Cl A4 | ||||||||
| 5.100%, 08/15/38(B) | 206 | 211 | ||||||
| GS Mortgage Securities II, Ser GCJ9, Cl A3 | ||||||||
| 2.773%, 11/10/45 | 275 | 268 | ||||||
| JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2005-CB12, Cl A4 | ||||||||
| 4.895%, 09/12/37 | 275 | 280 | ||||||
| JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2013-LC11, Cl A5 | ||||||||
| 2.960%, 04/15/46 | 150 | 146 | ||||||
| Morgan Stanley Bank of America Merrill Lynch Trust, Ser C6, Cl A4 | ||||||||
| 2.858%, 11/15/45 | 275 | 269 | ||||||
| NCUA Guaranteed Notes Trust, Ser 2010-C1, Cl A2 | ||||||||
| 2.900%, 10/29/20 | 225 | 232 | ||||||
| NCUA Guaranteed Notes Trust, Ser 2010-R1, Cl 2A | ||||||||
| 1.840%, 10/07/20 | 30 | 30 | ||||||
| Wachovia Bank Commercial Mortgage Trust Series, Ser C22, Cl A4 | ||||||||
| 5.455%, 12/15/44(B) | 239 | 247 | ||||||
| Total Commercial Mortgage-Backed Obligations | ||||||||
| (Cost $7,842) | 7,776 | |||||||
| U.S. Government Mortgage-Backed Obligations [3.0%] | ||||||||
| FHLMC, Pool 1B2677 | ||||||||
| 2.525%, 01/01/35(B) | 8 | 8 | ||||||
| FHLMC, Pool 1B2683 | ||||||||
| 2.522%, 01/01/35(B) | 5 | 6 | ||||||
| FHLMC, Pool 1B2692 | ||||||||
| 2.375%, 12/01/34(B) | 12 | 13 | ||||||
| FHLMC, Pool A93505 | ||||||||
| 4.500%, 08/01/40 | 52 | 56 | ||||||
| FHLMC, Pool A93996 | ||||||||
| 4.500%, 09/01/40 | 77 | 83 | ||||||
| FHLMC, Pool C03490 | ||||||||
| 4.500%, 08/01/40 | 397 | 429 | ||||||
| FHLMC, Pool C09015 | ||||||||
| 3.000%, 10/01/42 | 241 | 239 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 70
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| FHLMC, Pool C20300 | ||||||||
| 6.500%, 01/01/29 | $ | 4 | $ | 5 | ||||
| FHLMC, Pool E01280 | ||||||||
| 5.000%, 12/01/17 | 4 | 5 | ||||||
| FHLMC, Pool G02940 | ||||||||
| 5.500%, 05/01/37 | 16 | 18 | ||||||
| FHLMC, Pool G04222 | ||||||||
| 5.500%, 04/01/38 | 25 | 28 | ||||||
| FHLMC, Pool G04913 | ||||||||
| 5.000%, 03/01/38 | 91 | 100 | ||||||
| FHLMC, Pool G08003 | ||||||||
| 6.000%, 07/01/34 | 22 | 25 | ||||||
| FHLMC, Pool G11431 | ||||||||
| 6.000%, 08/01/18 | 3 | 3 | ||||||
| FHLMC, Pool G11880 | ||||||||
| 5.000%, 12/01/20 | 17 | 18 | ||||||
| FHLMC, Pool G18124 | ||||||||
| 6.000%, 06/01/21 | 12 | 13 | ||||||
| FHLMC, Pool J19197 | ||||||||
| 3.000%, 05/01/27 | 179 | 185 | ||||||
| FHLMC, Pool Q08998 | ||||||||
| 3.500%, 06/01/42 | 208 | 212 | ||||||
| FHLMC, Pool Q10378 | ||||||||
| 3.000%, 08/01/42 | 231 | 229 | ||||||
| FHLMC, Ser 2004-2804, Cl VC, Pool FHR 2804 VC | ||||||||
| 5.000%, 07/15/21 | 100 | 106 | ||||||
| FHLMC Multifamily Structured Pass Through Certificates, Ser K003, Cl A4 | ||||||||
| 5.053%, 01/25/19 | 150 | 168 | ||||||
| FHLMC Multifamily Structured Pass Through Certificates, Ser K704, Cl A2 | ||||||||
| 2.412%, 08/25/18 | 400 | 409 | ||||||
| FHLMC Multifamily Structured Pass Through Certificates, Ser K705, Cl A2 | ||||||||
| 2.303%, 09/25/18 | 200 | 203 | ||||||
| FHLMC Multifamily Structured Pass Through Certificates, Ser K708, Cl A2 | ||||||||
| 2.130%, 01/25/19 | 300 | 302 | ||||||
| FNMA, Pool 252570 | ||||||||
| 6.500%, 07/01/29 | 6 | 7 | ||||||
| FNMA, Pool 253183 | ||||||||
| 7.500%, 04/01/30 | 1 | 1 | ||||||
| FNMA, Pool 253398 | ||||||||
| 8.000%, 08/01/30 | 2 | 2 | ||||||
| FNMA, Pool 254545 | ||||||||
| 5.000%, 12/01/17 | 12 | 13 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| FNMA, Pool 254685 | ||||||||
| 5.000%, 04/01/18 | $ | 11 | $ | 12 | ||||
| FNMA, Pool 254949 | ||||||||
| 5.000%, 11/01/33 | 16 | 18 | ||||||
| FNMA, Pool 255814 | ||||||||
| 5.500%, 08/01/35 | 31 | 35 | ||||||
| FNMA, Pool 303168 | ||||||||
| 9.500%, 02/01/25 | 2 | 3 | ||||||
| FNMA, Pool 725424 | ||||||||
| 5.500%, 04/01/34 | 26 | 29 | ||||||
| FNMA, Pool 735060 | ||||||||
| 6.000%, 11/01/34 | 16 | 19 | ||||||
| FNMA, Pool 735228 | ||||||||
| 5.500%, 02/01/35 | 14 | 16 | ||||||
| FNMA, Pool 735230 | ||||||||
| 5.500%, 02/01/35 | 34 | 38 | ||||||
| FNMA, Pool 745275 | ||||||||
| 5.000%, 02/01/36 | 139 | 154 | ||||||
| FNMA, Pool 745418 | ||||||||
| 5.500%, 04/01/36 | 160 | 179 | ||||||
| FNMA, Pool 827223 | ||||||||
| 1.968%, 04/01/35(B) | 70 | 73 | ||||||
| FNMA, Pool 844809 | ||||||||
| 5.000%, 11/01/35 | 68 | 76 | ||||||
| FNMA, Pool AD0454 | ||||||||
| 5.000%, 11/01/21 | 37 | 40 | ||||||
| FNMA, Pool AD8522 | ||||||||
| 4.000%, 08/01/40 | 54 | 57 | ||||||
| FNMA, Pool AE0828 | ||||||||
| 3.500%, 02/01/41 | 386 | 395 | ||||||
| FNMA, Pool AH0621 | ||||||||
| 3.500%, 01/01/41 | 97 | 99 | ||||||
| FNMA, Pool AJ1407 | ||||||||
| 4.000%, 09/01/41 | 86 | 91 | ||||||
| FNMA, Pool AJ7689 | ||||||||
| 4.000%, 12/01/41 | 278 | 293 | ||||||
| FNMA, Pool AK0971 | ||||||||
| 3.000%, 02/01/27 | 168 | 173 | ||||||
| FNMA, Pool AO2970 | ||||||||
| 3.000%, 05/01/42 | 220 | 217 | ||||||
| FNMA, Pool AO4137 | ||||||||
| 3.500%, 06/01/42 | 226 | 231 | ||||||
| FNMA, Pool MA1277 | ||||||||
| 2.500%, 12/01/27 | 156 | 158 | ||||||
| FNMA REMIC Trust, Ser 2004-W6, Cl 1A6 | ||||||||
| 5.500%, 07/25/34 | 86 | 89 | ||||||
| GNMA, Pool 780315 | ||||||||
| 9.500%, 12/15/17 | 2 | 2 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 71
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| GNMA, Pool G2 4696 | ||||||||
| 4.500%, 05/20/40 | $ | 186 | $ | 203 | ||||
| GNMA, Pool G2 4747 | ||||||||
| 5.000%, 07/20/40 | 71 | 79 | ||||||
| GNMA, Pool G2 4923 | ||||||||
| 4.500%, 01/20/41 | 101 | 110 | ||||||
| GNMA, Pool G2 MA0155 | ||||||||
| 4.000%, 06/20/42 | 248 | 263 | ||||||
| GNMA, Pool G2 MA0392 | ||||||||
| 3.500%, 09/20/42 | 260 | 269 | ||||||
| Total U.S. Government Mortgage-Backed Obligations | ||||||||
| (Cost $6,175) | 6,307 | |||||||
| U.S. Treasury Obligations [2.9%] | ||||||||
| U.S. Treasury Note | ||||||||
| 2.750%, 02/15/19 | 845 | 884 | ||||||
| 2.625%, 11/15/20 | 425 | 438 | ||||||
| 2.375%, 07/31/17 | 1,010 | 1,048 | ||||||
| 1.750%, 10/31/18 | 610 | 614 | ||||||
| 1.250%, 04/30/19 | 2,375 | 2,328 | ||||||
| 0.875%, 07/31/19 | 815 | 781 | ||||||
| Total U.S. Treasury Obligations | ||||||||
| (Cost $6,158) | 6,093 | |||||||
| Asset-Backed Securities [0.9%] | ||||||||
| Bayview Financial Acquisition Trust, Ser 2007-A, Cl 1A2 | ||||||||
| 6.205%, 05/28/37 | 111 | 118 | ||||||
| BT SPE (Acquired 07/06/11, Acquisition Cost $1,102,589) | ||||||||
| 9.250%, 06/06/16(E) (F) | 856 | 807 | ||||||
| Cityscape Home Equity Loan Trust Series, Ser 1997-C, Cl A4 | ||||||||
| 7.000%, 07/25/28(D) (E) (F) | 5 | — | ||||||
| Conseco Financial, Ser 1997-7, Cl A6 | ||||||||
| 6.760%, 07/15/28 | 26 | 27 | ||||||
| Contimortgage Home Equity Loan Trust, Ser 1997-2, Cl A9 | ||||||||
| 7.090%, 04/15/28 | — | — | ||||||
| GMACM Mortgage Loan Trust, Ser 2004-GH1, Cl A6 | ||||||||
| 4.810%, 07/25/35 | 26 | 26 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Hyundai Auto Receivables Trust, Ser 2013-B, Cl A2 | ||||||||
| 0.530%, 03/15/16 | $ | 853 | $ | 853 | ||||
| Total Asset-Backed Securities | ||||||||
| (Cost $1,878) | 1,831 | |||||||
| Foreign Government Bonds [0.2%] | ||||||||
| Mexico Government International Bond, MTN | ||||||||
| 5.125%, 01/15/20 | 100 | 111 | ||||||
| Province of Newfoundland and Labrador Canada | ||||||||
| 7.320%, 10/13/23 | 100 | 131 | ||||||
| Province of Quebec Canada, MTN | ||||||||
| 7.380%, 04/09/26(C) | 100 | 135 | ||||||
| Total Foreign Government Bonds | ||||||||
| (Cost $361) | 377 | |||||||
| Certificate of Deposit [0.1%] | ||||||||
| Swiss Bank | ||||||||
| 7.375%, 07/15/15 | 175 | 184 | ||||||
| Total Certificate of Deposit | ||||||||
| (Cost $178) | 184 | |||||||
| Residential Mortgage-Backed Securities [0.0%] | ||||||||
| Banc of America Alternative Loan Trust, Ser 2004-2, Cl 5A1 | ||||||||
| 5.500%, 03/25/19 | 29 | 30 | ||||||
| RAAC, Ser 2004-SP1, Cl AI4 | ||||||||
| 5.285%, 08/25/27(B) | 5 | 5 | ||||||
| Residential Accredit Loans, Ser 2004-QS5, Cl A5 | ||||||||
| 4.750%, 04/25/34 | 8 | 8 | ||||||
| Residential Accredit Loans, Ser 2004-QS6, Cl A1 | ||||||||
| 5.000%, 05/25/19 | 14 | 15 | ||||||
| Residential Asset Mortgage Products, Ser 2002-RS3, Cl AI5 | ||||||||
| 5.572%, 06/25/32(B) | 31 | 31 | ||||||
| WaMu Mortgage Pass-Through Certificates Series Trust, Ser 2004-CB2, Cl 5A | ||||||||
| 5.000%, 07/25/19 | 44 | 45 | ||||||
| Total Residential Mortgage-Backed Securities | ||||||||
| (Cost $132) | 134 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 72
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (continued)
| Description | Shares | Value (000) | ||||||
| Short-Term Investments [3.4%] | ||||||||
| City National Rochdale Government Money Market Fund, 0.010%** ‡ | 4,175,720 | $ | 4,176 | |||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 3,029,387 | 3,029 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $7,205) | 7,205 | |||||||
| Total Investments [99.1%] | ||||||||
| (Cost $207,371) | $ | 211,112 | ||||||
Percentages are based on Net Assets of $213,048 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (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 September 30, 2014, the value of these securities amounted to $22,180 (000), representing 10.4% of the net assets of the Fund. |
| (B) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (C) | Step Bond — The rate reported is the rate in effect on September 30, 2014. The coupon on a step bond changes on a specific date. |
| (D) | In default on interest payments. Rate shown represents the last coupon rate prior to default. |
| (E) | Security fair valued using methods determined in good faith by the Fair Value Committee designated by the Board of Trustees. The total market value of such security as of September 30, 2014 was $807 (000) and represented 0.4% of net assets of the Fund. |
| (F) | Security is considered illiquid. The total market value of such security as of September 30, 2014 was $807 (000) and represented 0.4% of net assets of the Fund. |
Cl — Class
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
NCUA — National Credit Union Administration
NY — New York
RB — Revenue Bond
REIT — Real Estate Investment Trust
REMIC — Real Estate Mortgage Investment Conduit
Ser — Series
SPE — Special Purpose Entity
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds | $ | — | $ | 146,354 | $ | — | $ | 146,354 | ||||||||
| U.S. Government Agency Obligations | — | 19,143 | — | 19,143 | ||||||||||||
| Municipal Bonds | — | 7,994 | — | 7,994 | ||||||||||||
| Preferred Stock | 4,791 | 2,923 | — | 7,714 | ||||||||||||
| Commercial Mortgage-Backed Obligations | — | 7,776 | — | 7,776 | ||||||||||||
| U.S. Government Mortgage-Backed Obligations | — | 6,307 | — | 6,307 | ||||||||||||
| U.S. Treasury Obligations | — | 6,093 | — | 6,093 | ||||||||||||
| Asset-Backed Securities | — | 1,024 | 807 | 1,831 | ||||||||||||
| Foreign Government Bonds | — | 377 | — | 377 | ||||||||||||
| Certificate of Deposit | — | 184 | — | 184 | ||||||||||||
| Residential Mortgage-Backed Securities | — | 134 | — | 134 | ||||||||||||
| Short-Term Investments | 7,205 | — | — | 7,205 | ||||||||||||
| Total Investments in Securities | $ | 11,996 | $ | 198,309 | $ | 807 | $ | 211,112 | ||||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 73
schedule of investments
September 30, 2014
City National Rochdale Intermediate Fixed Income Fund (concluded)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value (000) as of September 30, 2014:
| Investments in Asset-Backed Securities | ||||
| Beginning balance as of October 1, 2013 | $ | 1,158 | ||
| Accrued discounts/premiums | — | |||
| Realized gain/(loss) | — | |||
| Change in unrealized appreciation/(depreciation) | 22 | |||
| Purchases | — | |||
| Sales/paydowns | (373 | ) | ||
| Transfers into Level 3 | — | |||
| Transfers out of Level 3 | — | |||
| Ending balance as of September 30, 2014 | $ | 807 | ||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | 22 | ||
The following table summarizes the quantitative inputs and assumptions used for items categorized as material Level 3 investments as of September 30, 2014. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.
Fair Value at September 30, 2014 (000) | Valuation Techniques | ||
| BT SPE | $807 | Discounted Cash Flow Model based on actual collection level and experienced defaults | |
| Observable Inputs | |||
| Accumulated Collections | |||
| Accumulated Defaults | |||
| Annualized Default Rate | |||
| Accumulated Default Rate | |||
| Pace of Collection Pace of Defaults | |||
| Interest Rates | |||
| Unobservable Inputs | Range | ||
| Projected Default Rates | 5%-12% | ||
| Projected Collection Rates | 90%-100% | ||
| Expected Discount Rates | 9.25% |
The unobservable inputs used to determine fair value of recurring Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement. Increases in projected collection rates in isolation would result in a higher fair value measurement, while increases in unexpected discount rates and in projected default rates in isolation would result in a lower fair value measurement.
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 74
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund
| Description | Face Amount (000) | Value (000) | ||||||
| Corporate Bonds [51.3%] | ||||||||
| Advertising Sales [0.2%] | ||||||||
| CBS Outdoor Americas Capital | ||||||||
| 5.875%, 03/15/25(A) | $ | 550 | $ | 553 | ||||
| 5.625%, 02/15/24(A) | 275 | 275 | ||||||
| 5.250%, 02/15/22(A) | 125 | 125 | ||||||
| Lamar Media | ||||||||
| 5.875%, 02/01/22 | 525 | 541 | ||||||
| 5.375%, 01/15/24(A) | 475 | 476 | ||||||
| 5.000%, 05/01/23 | 450 | 433 | ||||||
| Total Advertising Sales | 2,403 | |||||||
| Aerospace & Defense [0.3%] | ||||||||
| Accudyne Industries Borrower | ||||||||
| 7.750%, 12/15/20(A) | 1,425 | 1,478 | ||||||
| BE Aerospace | ||||||||
| 5.250%, 04/01/22 | 725 | 781 | ||||||
| TransDigm | ||||||||
| 7.500%, 07/15/21 | 100 | 107 | ||||||
| 6.500%, 07/15/24(A) | 575 | 573 | ||||||
| 6.000%, 07/15/22(A) | 950 | 938 | ||||||
| Total Aerospace & Defense | 3,877 | |||||||
| Agricultural [0.2%] | ||||||||
| Avangardco Investments Public | ||||||||
| 10.000%, 10/29/15 | 1,250 | 1,062 | ||||||
| Mriya Agro Holding | ||||||||
| 9.450%, 04/19/18 | 1,195 | 299 | ||||||
| UKRLANDFARMING | ||||||||
| 10.875%, 03/26/18 | 1,950 | 1,365 | ||||||
| Total Agricultural | 2,726 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Airlines [0.2%] | ||||||||
| Avianca Holdings | ||||||||
| 8.375%, 05/10/20 | $ | 2,000 | $ | 2,120 | ||||
| SriLankan Airlines | ||||||||
| 5.300%, 06/27/19 | 1,000 | 998 | ||||||
| Total Airlines | 3,118 | |||||||
| Applications Software [0.1%] | ||||||||
| Nuance Communications | ||||||||
| 5.375%, 08/15/20(A) | 900 | 880 | ||||||
| Auto Rent & Lease [0.2%] | ||||||||
| Hertz | ||||||||
| 6.750%, 04/15/19 | 825 | 851 | ||||||
| 6.250%, 10/15/22 | 1,025 | 1,038 | ||||||
| Light Tower Rentals | ||||||||
| 8.125%, 08/01/19(A) | 225 | 227 | ||||||
| United Rentals North America | ||||||||
| 8.375%, 09/15/20 | 675 | 726 | ||||||
| 7.625%, 04/15/22 | 300 | 326 | ||||||
| 6.125%, 06/15/23 | 575 | 591 | ||||||
| 5.750%, 11/15/24 | 175 | 177 | ||||||
| Total Auto Rent & Lease | 3,936 | |||||||
| Auto/Trk Prts and Equip-Repl [0.3%] | ||||||||
| Allison Transmission | ||||||||
| 7.125%, 05/15/19(A) | 650 | 681 | ||||||
| Exide Technologies | ||||||||
| 8.625%, 02/01/18(B) | 375 | 94 | ||||||
| JB Poindexter | ||||||||
| 9.000%, 04/01/22(A) | 725 | 778 | ||||||
| UCI International | ||||||||
| 8.625%, 02/15/19 | 1,575 | 1,519 | ||||||
| Total Auto/Trk Prts and Equip-Repl | 3,072 | |||||||
| Automotive [0.5%] | ||||||||
| Automotores Gildemeister | ||||||||
| 8.250%, 05/24/21 | 1,205 | 825 | ||||||
| 6.750%, 01/15/23 | 665 | 443 | ||||||
| Geely Automobile Holdings | ||||||||
| 5.250%, 10/06/19 | 1,000 | 993 | ||||||
| Hyva Global BV | ||||||||
| 8.625%, 03/24/16 | 1,225 | 1,239 | ||||||
| Jaguar Land Rover Automotive | ||||||||
| 8.125%, 05/15/21(A) | 625 | 684 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 75
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| MPM Global Pte | ||||||||
| 6.750%, 09/19/19 | $ | 2,500 | $ | 2,491 | ||||
| Total Automotive | 6,675 | |||||||
| Autoparts [0.5%] | ||||||||
| Affinia Group | ||||||||
| 7.750%, 05/01/21 | 1,325 | 1,361 | ||||||
| American Axle & Manufacturing | ||||||||
| 7.750%, 11/15/19 | 600 | 672 | ||||||
| 6.250%, 03/15/21 | 275 | 286 | ||||||
| 5.125%, 02/15/19 | 500 | 498 | ||||||
| International Automotive Components Group | ||||||||
| 9.125%, 06/01/18(A) | 625 | 659 | ||||||
| Lear | ||||||||
| 4.750%, 01/15/23 | 1,075 | 1,062 | ||||||
| Schaeffler Finance BV | ||||||||
| 4.750%, 05/15/21(A) | 625 | 623 | ||||||
| Schaeffler Finance BV, MTN | ||||||||
| 4.250%, 05/15/21(A) | 375 | 361 | ||||||
| Schaeffler Holding Finance BV | ||||||||
| 6.875%, 08/15/18(A) | 850 | 884 | ||||||
| Stackpole International Intermediate | ||||||||
| 7.750%, 10/15/21(A) | 1,150 | 1,156 | ||||||
| Total Autoparts | 7,562 | |||||||
| Banks [4.0%] | ||||||||
| Access Bank, MTN | ||||||||
| 9.250%, 06/24/21(C) | 1,975 | 2,044 | ||||||
| Alfa Bank Via Alfa Bond Issuance | ||||||||
| 7.750%, 04/28/21 | 960 | 962 | ||||||
| 7.500%, 09/26/19 | 2,280 | 2,233 | ||||||
| Alliance Bank JSC | ||||||||
| 25.346%, 03/25/20(D) | 7,034 | 2,814 | ||||||
| 10.631%, 03/25/20(A) (D) | 1,838 | 735 | ||||||
| Banco BMG | ||||||||
| 8.000%, 04/15/18 | 1,000 | 1,058 | ||||||
| Bank of Georgia JSC, MTN | ||||||||
| 7.750%, 07/05/17 | 2,200 | 2,336 | ||||||
| CIT Group | ||||||||
| 5.375%, 05/15/20 | 225 | 232 | ||||||
| 5.250%, 03/15/18 | 1,050 | 1,081 | ||||||
| 5.000%, 08/01/23 | 1,175 | 1,166 | ||||||
| 4.250%, 08/15/17 | 175 | 177 | ||||||
| Commercial Bank Privatbank JSC Via Standard Bank | ||||||||
| 5.799%, 02/09/16(C) (E) | 370 | 239 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Credit Bank of Moscow Via CBOM Finance | ||||||||
| 7.700%, 02/01/18 | $ | 1,850 | $ | 1,797 | ||||
| Diamond Bank | ||||||||
| 8.750%, 05/21/19 | 1,950 | 1,946 | ||||||
| Eastern and Southern African Trade and Development Bank | ||||||||
| 6.375%, 12/06/18 | 3,200 | 3,352 | ||||||
| FBN Finance BV | ||||||||
| 8.000%, 07/23/21(C) | 3,570 | 3,601 | ||||||
| Finansbank | ||||||||
| 6.250%, 04/30/19 | 2,000 | 2,081 | ||||||
| International Bank of Azerbaijan Via Rubrika Finance | ||||||||
| 7.200%, 10/31/16 | 500 | 513 | ||||||
| International Bank of Azerbaijan Via Rubrika Finance, MTN | ||||||||
| 7.750%, 09/26/18 | 2,000 | 2,080 | ||||||
| Kaspi Bank JSC | ||||||||
| 9.875%, 10/28/16 | 3,105 | 3,252 | ||||||
| Kazkommertsbank | ||||||||
| 8.500%, 05/11/18 | 1,580 | 1,588 | ||||||
| Kazkommertsbank JSC | ||||||||
| 6.765%, 07/27/16(C) (E) | 3,000 | 2,805 | ||||||
| Kazkommertsbank JSC, MTN | ||||||||
| 8.000%, 11/03/15 | 1,590 | 1,614 | ||||||
| 7.500%, 11/29/16 | 2,205 | 2,211 | ||||||
| 6.875%, 02/13/17 | 2,020 | 2,602 | ||||||
| NDR Finance | ||||||||
| 8.000%, 06/22/17(C) (G) | 721 | 325 | ||||||
| Oschadbank Via SSB #1 | ||||||||
| 8.875%, 03/20/18 | 350 | 265 | ||||||
| 8.250%, 03/10/16 | 505 | 394 | ||||||
| Privatbank CJSC Via UK SPV Credit Finance, MTN | ||||||||
| 9.375%, 09/23/15 | 300 | 233 | ||||||
| Renaissance Capital Via Renaissance Consumer Funding | ||||||||
| 13.500%, 06/21/18 | 1,624 | 1,437 | ||||||
| Russian Standard Bank Via Russian Standard Finance | ||||||||
| 9.250%, 07/11/17 | 1,425 | 1,364 | ||||||
| Russian Standard Bank Via Russian Standard Finance, MTN | ||||||||
| 10.750%, 04/10/18 | 1,150 | 1,012 | ||||||
| Tinkoff Credit Systems Via TCS Finance | ||||||||
| 10.750%, 09/18/15 | 2,265 | 2,246 | ||||||
| Tinkoff Credit Systems Via TCS Finance, MTN | ||||||||
| 14.000%, 06/06/18 | 875 | 873 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 76
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Trade & Development Bank of Mongolia, MTN | ||||||||
| 8.500%, 09/20/15 | $ | 1,105 | $ | 1,098 | ||||
| Zenith Bank, MTN | ||||||||
| 6.250%, 04/22/19 | 2,000 | 1,990 | ||||||
| Total Banks | 55,756 | |||||||
| Beauty Products [0.1%] | ||||||||
| First Quality Finance | ||||||||
| 4.625%, 05/15/21(A) | 950 | 886 | ||||||
| Broadcasting & Cable [2.0%] | ||||||||
| AMC Networks | ||||||||
| 7.750%, 07/15/21 | 600 | 654 | ||||||
| 4.750%, 12/15/22 | 325 | 321 | ||||||
| Anixter | ||||||||
| 5.625%, 05/01/19 | 600 | 631 | ||||||
| 5.125%, 10/01/21 | 300 | 296 | ||||||
| Belden | ||||||||
| 5.250%, 07/15/24(A) | 225 | 215 | ||||||
| CCO Holdings | ||||||||
| 8.125%, 04/30/20 | 50 | 53 | ||||||
| 7.375%, 06/01/20 | 300 | 317 | ||||||
| 6.625%, 01/31/22 | 650 | 683 | ||||||
| 5.750%, 09/01/23 | 525 | 522 | ||||||
| 5.750%, 01/15/24 | 250 | 249 | ||||||
| 5.250%, 03/15/21 | 675 | 662 | ||||||
| Cequel Communications Holdings I | ||||||||
| 6.375%, 09/15/20(A) | 850 | 874 | ||||||
| 5.125%, 12/15/21(A) | 650 | 621 | ||||||
| Clear Channel Communications | ||||||||
| 9.000%, 03/01/21 | 1,525 | 1,517 | ||||||
| Clear Channel Worldwide Holdings | ||||||||
| 7.625%, 03/15/20 | 450 | 465 | ||||||
| 6.500%, 11/15/22 | 2,000 | 2,045 | ||||||
| Columbus International | ||||||||
| 7.375%, 03/30/21 | 4,295 | 4,467 | ||||||
| Crown Media Holdings | ||||||||
| 10.500%, 07/15/19 | 1,100 | 1,202 | ||||||
| DISH DBS | ||||||||
| 5.875%, 07/15/22 | 2,425 | 2,474 | ||||||
| 5.000%, 03/15/23 | 100 | 96 | ||||||
| General Cable | ||||||||
| 5.750%, 10/01/22 | 275 | 256 | ||||||
| Gray Television | ||||||||
| 7.500%, 10/01/20 | 1,000 | 1,023 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Numericable Group | ||||||||
| 6.250%, 05/15/24(A) | $ | 575 | $ | 574 | ||||
| 6.000%, 05/15/22(A) | 800 | 806 | ||||||
| Polish Television Holding BV | ||||||||
| 11.000%, 01/15/21 | 1,275 | 1,898 | ||||||
| Sinclair Television Group | ||||||||
| 5.625%, 08/01/24(A) | 550 | 529 | ||||||
| Unitymedia Hessen GmbH & KG | ||||||||
| 5.500%, 01/15/23(A) | 525 | 530 | ||||||
| VTR Finance BV | ||||||||
| 6.875%, 01/15/24 | 3,845 | 3,980 | ||||||
| Total Broadcasting & Cable | 27,960 | |||||||
| Building & Construction [2.4%] | ||||||||
| Agile Property Holdings | ||||||||
| 9.875%, 03/20/17 | 650 | 689 | ||||||
| Allegion US Holding | ||||||||
| 5.750%, 10/01/21 | 550 | 561 | ||||||
| Building Materials Corp of America | ||||||||
| 7.500%, 03/15/20(A) | 100 | 105 | ||||||
| 6.750%, 05/01/21(A) | 575 | 602 | ||||||
| Cemex | ||||||||
| 7.250%, 01/15/21 | 565 | 597 | ||||||
| 6.500%, 12/10/19 | 1,755 | 1,812 | ||||||
| 5.875%, 03/25/19 | 770 | 774 | ||||||
| 5.700%, 01/11/25(A) | 560 | 540 | ||||||
| CEMEX Espana | ||||||||
| 9.875%, 04/30/19 | 1,250 | 1,388 | ||||||
| Cemex Finance | ||||||||
| 9.375%, 10/12/22 | 4,045 | 4,561 | ||||||
| China Shanshui Cement Group | ||||||||
| 10.500%, 04/27/17 | 1,145 | 1,197 | ||||||
| Cimento Tupi | ||||||||
| 9.750%, 05/11/18 | 4,000 | 3,990 | ||||||
| CPG Merger Sub | ||||||||
| 8.000%, 10/01/21(A) | 575 | 585 | ||||||
| Dry Mix Solutions Investissements SAS | ||||||||
| 4.334%, 06/15/21(C) | 3,000 | 3,677 | ||||||
| Interline Brands | ||||||||
| 10.000%, 11/15/18(F) | 1,350 | 1,407 | ||||||
| Masonite International | ||||||||
| 8.250%, 04/15/21(A) | 925 | 990 | ||||||
| MasTec | ||||||||
| 4.875%, 03/15/23 | 250 | 234 | ||||||
| Nortek | ||||||||
| 8.500%, 04/15/21 | 1,600 | 1,720 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 77
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| OAS Finance | ||||||||
| 8.875%, 04/25/18(C) | $ | 2,000 | $ | 1,869 | ||||
| Ply Gem Industries | ||||||||
| 6.500%, 02/01/22 | 675 | 641 | ||||||
| Reliance Intermediate Holdings | ||||||||
| 9.500%, 12/15/19(A) | 300 | 314 | ||||||
| Roofing Supply Group | ||||||||
| 10.000%, 06/01/20(A) | 775 | 814 | ||||||
| USG | ||||||||
| 7.875%, 03/30/20(A) | 250 | 270 | ||||||
| 5.875%, 11/01/21(A) | 650 | 663 | ||||||
| West China Cement | ||||||||
| 6.500%, 09/11/19 | 2,000 | 1,920 | ||||||
| Wise Metals Intermediate Holdings | ||||||||
| 9.750%, 06/15/19(A) | 550 | 583 | ||||||
| Yuksel Insaat | ||||||||
| 9.500%, 11/10/15 | 1,000 | 682 | ||||||
| Total Building & Construction | 33,185 | |||||||
| Building & Construction Supplies [0.1%] | ||||||||
| Signode Industrial Group Lux | ||||||||
| 6.375%, 05/01/22(A) | 1,575 | 1,512 | ||||||
| Building-Heavy Construct [0.3%] | ||||||||
| Empresas ICA | ||||||||
| 8.900%, 02/04/21 | 1,920 | 2,035 | ||||||
| 8.875%, 05/29/24 | 1,900 | 1,952 | ||||||
| Total Building-Heavy Construct | 3,987 | |||||||
| Business Services [0.1%] | ||||||||
| CoreLogic | ||||||||
| 7.250%, 06/01/21 | 775 | 814 | ||||||
| Chemicals [0.7%] | ||||||||
| Ashland | ||||||||
| 4.750%, 08/15/22 | 950 | 926 | ||||||
| Axiall | ||||||||
| 4.875%, 05/15/23 | 100 | 96 | ||||||
| Celanese US Holdings | ||||||||
| 4.625%, 11/15/22 | 375 | 368 | ||||||
| Eagle Spinco | ||||||||
| 4.625%, 02/15/21 | 175 | 168 | ||||||
| Fufeng Group | ||||||||
| 7.625%, 04/13/16 | 4,000 | 4,100 | ||||||
| Hexion US Finance | ||||||||
| 8.875%, 02/01/18 | 1,625 | 1,655 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Huntsman International | ||||||||
| 8.625%, 03/15/20 | $ | 150 | $ | 158 | ||||
| 4.875%, 11/15/20 | 650 | 640 | ||||||
| Novacap International SAS, MTN | ||||||||
| 5.209%, 05/01/19(C) | 1,000 | 1,265 | ||||||
| WR Grace & Co. - Conn | ||||||||
| 5.625%, 10/01/24(A) | 225 | 231 | ||||||
| 5.125%, 10/01/21(A) | 225 | 229 | ||||||
| Total Chemicals | 9,836 | |||||||
| Coal Mining [0.8%] | ||||||||
| Berau Capital Resources | ||||||||
| 12.500%, 07/08/15 | 765 | 593 | ||||||
| Berau Coal Energy | ||||||||
| 7.250%, 03/13/17 | 1,905 | 1,257 | ||||||
| Bumi Capital Pte | ||||||||
| 12.000%, 11/10/16 | 750 | 319 | ||||||
| Bumi Investment Pte, MTN | ||||||||
| 10.750%, 10/06/17 | 2,555 | 1,086 | ||||||
| Indo Energy Finance II BV | ||||||||
| 6.375%, 01/24/23 | 2,695 | 2,095 | ||||||
| Mongolian Mining, MTN | ||||||||
| 8.875%, 03/29/17 | 6,936 | 4,368 | ||||||
| New World Resources | ||||||||
| 7.875%, 05/01/18 | 1,300 | 841 | ||||||
| Total Coal Mining | 10,559 | |||||||
| Coatings/Paint [0.1%] | ||||||||
| US Coatings Acquisition | ||||||||
| 7.375%, 05/01/21(A) | 1,300 | 1,394 | ||||||
| Commercial Serv-Finance [0.3%] | ||||||||
| Igloo Holdings | ||||||||
| 8.250%, 12/15/17(A) (F) | 800 | 814 | ||||||
| Interactive Data | ||||||||
| 5.875%, 04/15/19(A) | 750 | 737 | ||||||
| TransUnion Holding | ||||||||
| 9.625%, 06/15/18 | 1,200 | 1,236 | ||||||
| 8.125%, 06/15/18 | 475 | 492 | ||||||
| Total Commercial Serv-Finance | 3,279 | |||||||
| Commercial Services [0.3%] | ||||||||
| Anna Merger Sub | ||||||||
| 7.750%, 10/01/22(A) | 1,000 | 1,005 | ||||||
| BC Luxco 1 | ||||||||
| 7.375%, 01/29/20 | 2,470 | 2,533 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 78
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Iron Mountain | ||||||||
| 5.750%, 08/15/24 | $ | 550 | $ | 540 | ||||
| Total Commercial Services | 4,078 | |||||||
| Computer Aided Design [0.2%] | ||||||||
| Rolta | ||||||||
| 10.750%, 05/16/18 | 2,000 | 2,150 | ||||||
| Rolta Americas | ||||||||
| 8.875%, 07/24/19 | 1,000 | 1,026 | ||||||
| Total Computer Aided Design | 3,176 | |||||||
| Computer Graphics [0.2%] | ||||||||
| Epicor Software | ||||||||
| 8.625%, 05/01/19 | 1,325 | 1,401 | ||||||
| Southern Graphics | ||||||||
| 8.375%, 10/15/20(A) | 1,375 | 1,430 | ||||||
| Total Computer Graphics | 2,831 | |||||||
| Computer System Design & Services [0.3%] | ||||||||
| Compiler Finance Sub | ||||||||
| 7.000%, 05/01/21(A) | 900 | 850 | ||||||
| NCR | ||||||||
| 6.375%, 12/15/23 | 525 | 550 | ||||||
| 5.875%, 12/15/21 | 400 | 409 | ||||||
| 5.000%, 07/15/22 | 800 | 782 | ||||||
| 4.625%, 02/15/21 | 250 | 245 | ||||||
| SunGard Data Systems | ||||||||
| 7.375%, 11/15/18 | 25 | 26 | ||||||
| 6.625%, 11/01/19 | 650 | 650 | ||||||
| Total Computer System Design & Services | 3,512 | |||||||
| Computers-Memory Devices [0.1%] | ||||||||
| Seagate HDD Cayman | ||||||||
| 4.750%, 06/01/23 | 1,225 | 1,234 | ||||||
| 4.750%, 01/01/25(A) | 250 | 249 | ||||||
| Total Computers-Memory Devices | 1,483 | |||||||
| Consumer Products & Services [0.5%] | ||||||||
| Prestige Brands | ||||||||
| 8.125%, 02/01/20 | 475 | 506 | ||||||
| 5.375%, 12/15/21(A) | 525 | 494 | ||||||
| Serta Simmons Holdings | ||||||||
| 8.125%, 10/01/20(A) | 1,575 | 1,662 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| ServiceMaster | ||||||||
| 7.450%, 08/15/27 | $ | 225 | $ | 227 | ||||
| 7.100%, 03/01/18 | 475 | 489 | ||||||
| 7.000%, 08/15/20 | 1,460 | 1,518 | ||||||
| Spectrum Brands | ||||||||
| 6.750%, 03/15/20 | 925 | 964 | ||||||
| Total Consumer Products & Services | 5,860 | |||||||
| Containers & Packaging [1.0%] | ||||||||
| Ardagh Packaging Finance | ||||||||
| 9.125%, 10/15/20(A) | 2,200 | 2,380 | ||||||
| 6.750%, 01/31/21(A) | 200 | 200 | ||||||
| Ball | ||||||||
| 4.000%, 11/15/23 | 825 | 767 | ||||||
| Berry Plastics | ||||||||
| 5.500%, 05/15/22 | 1,425 | 1,372 | ||||||
| Beverage Packaging Holdings Luxembourg II | ||||||||
| 6.000%, 06/15/17(A) | 325 | 320 | ||||||
| 5.625%, 12/15/16(A) | 300 | 298 | ||||||
| BWAY Holding | ||||||||
| 9.125%, 08/15/21(A) | 1,175 | 1,181 | ||||||
| Crown Americas | ||||||||
| 4.500%, 01/15/23 | 1,025 | 969 | ||||||
| Graphic Packaging International | ||||||||
| 4.750%, 04/15/21 | 200 | 199 | ||||||
| Greif | ||||||||
| 7.750%, 08/01/19 | 725 | 823 | ||||||
| Pactiv | ||||||||
| 7.950%, 12/15/25 | 200 | 211 | ||||||
| Reynolds Group Issuer | ||||||||
| 9.875%, 08/15/19 | 1,950 | 2,099 | ||||||
| 8.250%, 02/15/21 | 1,425 | 1,507 | ||||||
| 5.750%, 10/15/20 | 1,350 | 1,373 | ||||||
| Sealed Air | ||||||||
| 6.500%, 12/01/20(A) | 725 | 773 | ||||||
| Total Containers & Packaging | 14,472 | |||||||
| Data Processing/Mgmt [0.4%] | ||||||||
| Audatex North America | ||||||||
| 6.125%, 11/01/23(A) | 175 | 179 | ||||||
| 6.000%, 06/15/21(A) | 1,175 | 1,204 | ||||||
| First Data | ||||||||
| 8.750%, 01/15/22(A) (F) | 4,225 | 4,479 | ||||||
| Total Data Processing/Mgmt | 5,862 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 79
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Dental Supplies and Equip [0.4%] | ||||||||
| IDH Finance | ||||||||
| 5.561%, 12/01/18(C) | $ | 3,000 | $ | 4,888 | ||||
| Diagnostic Equipment [0.2%] | ||||||||
| Crimson Merger Sub | ||||||||
| 6.625%, 05/15/22(A) | 2,200 | 2,005 | ||||||
| Dialysis Centers [0.1%] | ||||||||
| DaVita HealthCare Partners | ||||||||
| 5.750%, 08/15/22 | 875 | 907 | ||||||
| 5.125%, 07/15/24 | 175 | 172 | ||||||
| Total Dialysis Centers | 1,079 | |||||||
| Distribution/Wholesale [0.2%] | ||||||||
| American Builders & Contractors Supply | ||||||||
| 5.625%, 04/15/21(A) | 675 | 662 | ||||||
| DH Services Luxembourg Sarl | ||||||||
| 7.750%, 12/15/20(A) | 1,350 | 1,418 | ||||||
| VWR Funding | ||||||||
| 7.250%, 09/15/17 | 1,875 | 1,952 | ||||||
| Total Distribution/Wholesale | 4,032 | |||||||
| Diversified Minerals [0.1%] | ||||||||
| China Hongqiao Group | ||||||||
| 7.625%, 06/26/17 | 1,370 | 1,409 | ||||||
| Diversified Operations [0.1%] | ||||||||
| Fosun International | ||||||||
| 7.500%, 05/12/16 | 1,190 | 1,223 | ||||||
| Drugs [0.2%] | ||||||||
| Grifols Worldwide Operations | ||||||||
| 5.250%, 04/01/22(A) | 550 | 543 | ||||||
| Valeant Pharmaceuticals International | ||||||||
| 5.625%, 12/01/21(A) | 425 | 424 | ||||||
| VPII Escrow | ||||||||
| 7.500%, 07/15/21(A) | 1,625 | 1,739 | ||||||
| Total Drugs | 2,706 | |||||||
| E-Commerce/Services [0.1%] | ||||||||
| IAC | ||||||||
| 4.750%, 12/15/22 | 1,250 | 1,200 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Educational Software [0.0%] | ||||||||
| Blackboard | ||||||||
| 7.750%, 11/15/19(A) | $ | 600 | $ | 594 | ||||
| Electric Utilities [0.4%] | ||||||||
| Calpine | ||||||||
| 6.000%, 01/15/22(A) | 150 | 159 | ||||||
| 5.875%, 01/15/24(A) | 550 | 570 | ||||||
| 5.750%, 01/15/25 | 950 | 923 | ||||||
| NRG Energy | ||||||||
| 8.250%, 09/01/20 | 575 | 616 | ||||||
| 7.875%, 05/15/21 | 875 | 941 | ||||||
| 6.625%, 03/15/23 | 400 | 412 | ||||||
| 6.250%, 05/01/24(A) | 500 | 501 | ||||||
| Star Energy Geothermal Wayang Windu | ||||||||
| 6.125%, 03/27/20 | 1,000 | 1,022 | ||||||
| Total Electric Utilities | 5,144 | |||||||
| Electrical Products [0.1%] | ||||||||
| WESCO Distribution | ||||||||
| 5.375%, 12/15/21 | 875 | 868 | ||||||
| Electronic Parts Distrib [0.1%] | ||||||||
| Rexel | ||||||||
| 6.125%, 12/15/19(A) | 1,275 | 1,307 | ||||||
| Energy [0.0%] | ||||||||
| CGG | ||||||||
| 6.500%, 06/01/21 | 825 | 722 | ||||||
| Energy & Power [0.2%] | ||||||||
| ContourGlobal Power Holdings | ||||||||
| 7.125%, 06/01/19 | 3,150 | 3,119 | ||||||
| Enterprise Software/Serv [0.4%] | ||||||||
| BMC Software Finance | ||||||||
| 8.125%, 07/15/21(A) | 875 | 840 | ||||||
| Boxer Parent | ||||||||
| 9.000%, 10/15/19(A) | 1,200 | 1,104 | ||||||
| Eagle Midco | ||||||||
| 9.000%, 06/15/18(A) | 750 | 766 | ||||||
| Infor Software Parent | ||||||||
| 7.125%, 05/01/21(A) | 1,700 | 1,683 | ||||||
| Infor US | ||||||||
| 9.375%, 04/01/19 | 1,225 | 1,323 | ||||||
| Total Enterprise Software/Serv | 5,716 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 80
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Entertainment & Gaming [1.0%] | ||||||||
| Affinity Gaming | ||||||||
| 9.000%, 05/15/18 | $ | 775 | $ | 752 | ||||
| Ameristar Casinos | ||||||||
| 7.500%, 04/15/21 | 725 | 754 | ||||||
| Chester Downs & Marina | ||||||||
| 9.250%, 02/01/20(A) | 450 | 423 | ||||||
| Churchill Downs | ||||||||
| 5.375%, 12/15/21(A) | 300 | 301 | ||||||
| Cinemark USA | ||||||||
| 7.375%, 06/15/21 | 200 | 214 | ||||||
| 5.125%, 12/15/22 | 300 | 295 | ||||||
| GLP Capital | ||||||||
| 5.375%, 11/01/23 | 500 | 510 | ||||||
| 4.875%, 11/01/20 | 600 | 612 | ||||||
| MGM Resorts International | ||||||||
| 8.625%, 02/01/19 | 375 | 423 | ||||||
| 7.750%, 03/15/22 | 1,475 | 1,641 | ||||||
| 6.750%, 10/01/20 | 250 | 266 | ||||||
| 5.250%, 03/31/20 | 350 | 350 | ||||||
| Mohegan Tribal Gaming Authority | ||||||||
| 9.750%, 09/01/21 | 975 | 986 | ||||||
| Penn National Gaming | ||||||||
| 5.875%, 11/01/21 | 1,275 | 1,176 | ||||||
| Pinnacle Entertainment | ||||||||
| 7.750%, 04/01/22 | 600 | 652 | ||||||
| 6.375%, 08/01/21 | 400 | 418 | ||||||
| Regal Entertainment Group | ||||||||
| 5.750%, 03/15/22 | 500 | 501 | ||||||
| Seminole Hard Rock Entertainment | ||||||||
| 5.875%, 05/15/21(A) | 1,525 | 1,472 | ||||||
| Seminole Indian Tribe of Florida | ||||||||
| 7.804%, 10/01/20(A) | 640 | 693 | ||||||
| Station Casinos | ||||||||
| 7.500%, 03/01/21 | 1,125 | 1,173 | ||||||
| Total Entertainment & Gaming | 13,612 | |||||||
| Entertainment Software [0.1%] | ||||||||
| Activision Blizzard | ||||||||
| 6.125%, 09/15/23(A) | 625 | 664 | ||||||
| 5.625%, 09/15/21(A) | 125 | 130 | ||||||
| Total Entertainment Software | 794 | |||||||
| E-Services/Consulting [0.1%] | ||||||||
| TES Finance | ||||||||
| 6.750%, 07/15/20 | 1,000 | 1,508 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Financial Services [0.8%] | ||||||||
| AerCap Ireland Capital | ||||||||
| 4.500%, 05/15/21(A) | $ | 800 | $ | 776 | ||||
| Ally Financial | ||||||||
| 8.300%, 02/12/15 | 275 | 280 | ||||||
| 6.250%, 12/01/17 | 375 | 402 | ||||||
| 5.500%, 02/15/17 | 650 | 676 | ||||||
| 5.125%, 09/30/24 | 450 | 441 | ||||||
| 4.750%, 09/10/18 | 1,150 | 1,179 | ||||||
| 3.250%, 09/29/17 | 175 | 173 | ||||||
| Astana Finance BV | ||||||||
| 9.000%, 11/16/11(B) (G) | 3,000 | 255 | ||||||
| Astana Finance BV, MTN | ||||||||
| 7.875%, 06/08/10(B) (G) | 250 | 27 | ||||||
| Credito Real | ||||||||
| 7.500%, 03/13/19 | 2,500 | 2,663 | ||||||
| FBN Finance | ||||||||
| 8.250%, 08/07/20 | 1,590 | 1,622 | ||||||
| General Motors Financial | ||||||||
| 4.375%, 09/25/21 | 250 | 256 | ||||||
| 3.500%, 07/10/19 | 150 | 151 | ||||||
| IIG Funding | ||||||||
| 6.750%, 07/10/14(B) | 1,500 | 165 | ||||||
| International Lease Finance | ||||||||
| 5.875%, 08/15/22 | 1,025 | 1,071 | ||||||
| 4.625%, 04/15/21 | 1,775 | 1,762 | ||||||
| Lock | ||||||||
| 5.818%, 08/15/20(C) | 1,000 | 1,269 | ||||||
| Total Financial Services | 13,168 | |||||||
| Firearms and Ammunition [0.1%] | ||||||||
| FGI Operating Company | ||||||||
| 7.875%, 05/01/20 | 925 | 902 | ||||||
| Food, Beverage & Tobacco [2.5%] | ||||||||
| Ajecorp BV | ||||||||
| 6.500%, 05/14/22 | 2,085 | 1,898 | ||||||
| ARAMARK | ||||||||
| 5.750%, 03/15/20 | 1,500 | 1,537 | ||||||
| B&G Foods | ||||||||
| 4.625%, 06/01/21 | 425 | 405 | ||||||
| Boparan Finance | ||||||||
| 5.500%, 07/15/21 | 1,000 | 1,435 | ||||||
| Boparan Finance, MTN | ||||||||
| 4.375%, 07/15/21 | 1,000 | 1,140 | ||||||
| CEDC Finance International | ||||||||
| 10.000%, 04/30/15(E) | 1,830 | 1,731 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 81
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| CFG Investment SAC | ||||||||
| 9.750%, 07/30/19 | $ | 620 | $ | 581 | ||||
| Darling Ingredients | ||||||||
| 5.375%, 01/15/22 | 400 | 403 | ||||||
| Del Monte | ||||||||
| 7.625%, 02/15/19 | 1,106 | 1,098 | ||||||
| Galapagos | ||||||||
| 4.834%, 06/15/21(C) | 3,000 | 3,695 | ||||||
| Hearthside Group Holdings | ||||||||
| 6.500%, 05/01/22(A) | 1,175 | 1,143 | ||||||
| HJ Heinz | ||||||||
| 4.250%, 10/15/20 | 1,775 | 1,764 | ||||||
| Marfrig Holding Europe BV | ||||||||
| 8.375%, 05/09/18 | 3,380 | 3,464 | ||||||
| 6.875%, 06/24/19 | 2,530 | 2,416 | ||||||
| Marfrig Overseas | ||||||||
| 9.500%, 05/04/20 | 1,740 | 1,836 | ||||||
| MHP | ||||||||
| 10.250%, 04/29/15 | 965 | 936 | ||||||
| 8.250%, 04/02/20 | 2,950 | 2,501 | ||||||
| Minerva Luxembourg | ||||||||
| 8.750%, 12/29/49(C) | 2,000 | 2,035 | ||||||
| 7.750%, 01/31/23 | 265 | 270 | ||||||
| Pinnacle Foods Finance | ||||||||
| 4.875%, 05/01/21 | 1,675 | 1,620 | ||||||
| Shearer’s Foods | ||||||||
| 9.000%, 11/01/19(A) | 625 | 680 | ||||||
| Smithfield Foods | ||||||||
| 6.625%, 08/15/22 | 1,175 | 1,240 | ||||||
| Sun Merger Sub | ||||||||
| 5.875%, 08/01/21(A) | 600 | 607 | ||||||
| 5.250%, 08/01/18(A) | 75 | 75 | ||||||
| WhiteWave Foods | ||||||||
| 5.375%, 10/01/22 | 175 | 177 | ||||||
| Total Food, Beverage & Tobacco | 34,687 | |||||||
| Food-Canned [0.0%] | ||||||||
| TreeHouse Foods | ||||||||
| 4.875%, 03/15/22 | 100 | 99 | ||||||
| Food-Wholesale/Distrib [0.1%] | ||||||||
| US Foods | ||||||||
| 8.500%, 06/30/19 | 1,700 | 1,802 | ||||||
| Footwear and Related Apparel [0.0%] | ||||||||
| Wolverine World Wide | ||||||||
| 6.125%, 10/15/20 | 275 | 287 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Forestry [0.1%] | ||||||||
| Masisa | ||||||||
| 9.500%, 05/05/19 | $ | 1,000 | $ | 1,075 | ||||
| Gaming [0.1%] | ||||||||
| Rivers Pittsburgh Borrower | ||||||||
| 9.500%, 06/15/19(A) | 809 | 866 | ||||||
| Gold Mining [0.1%] | ||||||||
| AngloGold Ashanti Holdings | ||||||||
| 5.375%, 04/15/20 | 1,500 | 1,506 | ||||||
| Banro | ||||||||
| 10.000%, 03/01/17 | 500 | 348 | ||||||
| Total Gold Mining | 1,854 | |||||||
| Health Care [0.1%] | ||||||||
| Envision Healthcare | ||||||||
| 5.125%, 07/01/22(A) | 950 | 936 | ||||||
| Home Decoration Products [0.1%] | ||||||||
| RSI Home Products | ||||||||
| 6.875%, 03/01/18(A) | 700 | 730 | ||||||
| Hotels and Motels [0.1%] | ||||||||
| Choice Hotels International | ||||||||
| 5.750%, 07/01/22 | 675 | 719 | ||||||
| Hilton Worldwide Finance | ||||||||
| 5.625%, 10/15/21(A) | 700 | 721 | ||||||
| Total Hotels and Motels | 1,440 | |||||||
| Industrial [0.2%] | ||||||||
| Belden | ||||||||
| 5.500%, 09/01/22(A) | 1,050 | 1,063 | ||||||
| Unifrax I | ||||||||
| 7.500%, 02/15/19(A) | 900 | 909 | ||||||
| Total Industrial | 1,972 | |||||||
| Insurance [0.1%] | ||||||||
| Hockey Merger Sub 2 | ||||||||
| 7.875%, 10/01/21(A) | 625 | 640 | ||||||
| Hub Holdings | ||||||||
| 8.125%, 07/15/19(A) | 725 | 709 | ||||||
| Total Insurance | 1,349 | |||||||
| Internet Connectiv Svcs [0.2%] | ||||||||
| Adria Bidco BV | ||||||||
| 7.875%, 11/15/20 | 2,000 | 2,659 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 82
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Internet Security [0.0%] | ||||||||
| VeriSign | ||||||||
| 4.625%, 05/01/23 | $ | 575 | $ | 555 | ||||
| Investment Banker/Broker Dealer [0.3%] | ||||||||
| Banco Btg Pactual | ||||||||
| 8.750%, 12/31/49(C) | 1,500 | 1,520 | ||||||
| First Investment Finance BV | ||||||||
| 12.500%, 08/29/49(E) | 1,200 | 1,213 | ||||||
| Neuberger Berman Group | ||||||||
| 5.875%, 03/15/22(A) | 400 | 425 | ||||||
| 5.625%, 03/15/20(A) | 500 | 520 | ||||||
| Nuveen Investments | ||||||||
| 9.500%, 10/15/20(A) | 700 | 812 | ||||||
| Total Investment Banker/Broker Dealer | 4,490 | |||||||
| Investment Companies [0.0%] | ||||||||
| Hero Asia Investment | ||||||||
| 2.875%, 10/03/17 | 500 | 496 | ||||||
| Mach Tools and Rel Products [0.1%] | ||||||||
| Mcron Finance Sub | ||||||||
| 8.375%, 05/15/19(A) | 461 | 496 | ||||||
| Milacron | ||||||||
| 7.750%, 02/15/21(A) | 350 | 368 | ||||||
| Total Mach Tools and Rel Products | 864 | |||||||
| Machinery-General Indust [0.4%] | ||||||||
| Gardner Denver | ||||||||
| 6.875%, 08/15/21(A) | 1,125 | 1,128 | ||||||
| Honghua Group | ||||||||
| 7.450%, 09/25/19 | 4,000 | 3,925 | ||||||
| Waterjet Holdings | ||||||||
| 7.625%, 02/01/20(A) | 225 | 233 | ||||||
| Zebra Technologies | ||||||||
| 7.250%, 10/15/22(A) | 350 | 350 | ||||||
| Total Machinery-General Indust | 5,636 | |||||||
| Manufacturing [0.0%] | ||||||||
| Cleaver-Brooks | ||||||||
| 8.750%, 12/15/19(A) | 675 | 731 | ||||||
| Media - Non-Cable [0.1%] | ||||||||
| Intelsat Jackson Holdings | ||||||||
| 8.500%, 11/01/19 | 475 | 497 | ||||||
| 7.250%, 04/01/19 | 350 | 367 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| 6.625%, 12/15/22 | $ | 1,275 | $ | 1,281 | ||||
| Total Media - Non-Cable | 2,145 | |||||||
| Medical Products & Services [1.4%] | ||||||||
| Biomet | ||||||||
| 6.500%, 08/01/20 | 1,300 | 1,378 | ||||||
| Care UK Health & Social Care | ||||||||
| 5.557%, 07/15/19(C) | 1,000 | 1,544 | ||||||
| CHS | ||||||||
| 6.875%, 02/01/22(A) | 1,450 | 1,508 | ||||||
| 5.125%, 08/01/21(A) | 450 | 449 | ||||||
| DJO Finance | ||||||||
| 7.750%, 04/15/18 | 1,150 | 1,156 | ||||||
| HCA | ||||||||
| 7.500%, 02/15/22 | 1,625 | 1,828 | ||||||
| 6.500%, 02/15/20 | 450 | 492 | ||||||
| 5.875%, 03/15/22 | 800 | 841 | ||||||
| 5.875%, 05/01/23 | 825 | 843 | ||||||
| 5.000%, 03/15/24 | 1,325 | 1,303 | ||||||
| HCA Holdings | ||||||||
| 7.750%, 05/15/21 | 1,325 | 1,416 | ||||||
| IASIS Healthcare | ||||||||
| 8.375%, 05/15/19 | 1,200 | 1,257 | ||||||
| LifePoint Hospitals | ||||||||
| 5.500%, 12/01/21 | 1,025 | 1,038 | ||||||
| Omnicare | ||||||||
| 7.750%, 06/01/20 | 450 | 476 | ||||||
| Teleflex | ||||||||
| 5.250%, 06/15/24(A) | 175 | 171 | ||||||
| Tenet Healthcare | ||||||||
| 8.125%, 04/01/22 | 1,275 | 1,399 | ||||||
| 4.500%, 04/01/21 | 850 | 829 | ||||||
| 4.375%, 10/01/21 | 925 | 886 | ||||||
| United Surgical Partners International | ||||||||
| 9.000%, 04/01/20 | 1,050 | 1,131 | ||||||
| Universal Hospital Services | ||||||||
| 7.625%, 08/15/20 | 650 | 611 | ||||||
| Total Medical Products & Services | 20,556 | |||||||
| Medical-HMO [0.1%] | ||||||||
| MPH Acquisition Holdings | ||||||||
| 6.625%, 04/01/22(A) | 1,700 | 1,717 | ||||||
| Medical-Outptnt/Home Med [0.0%] | ||||||||
| Amsurg | ||||||||
| 5.625%, 07/15/22(A) | 475 | 470 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 83
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Metal-Copper [0.3%] | ||||||||
| First Quantum Minerals | ||||||||
| 7.250%, 10/15/19 | $ | 3,800 | $ | 3,895 | ||||
| Metal-Iron [0.2%] | ||||||||
| Ferrexpo Finance | ||||||||
| 7.875%, 04/07/16 | 1,900 | 1,715 | ||||||
| Metalloinvest Finance | ||||||||
| 5.625%, 04/17/20 | 590 | 538 | ||||||
| Total Metal-Iron | 2,253 | |||||||
| Metals & Mining [1.3%] | ||||||||
| Consolidated Minerals | ||||||||
| 8.000%, 05/15/20 | 2,000 | 1,700 | ||||||
| TiZir | ||||||||
| 9.000%, 09/28/17 | 4,000 | 3,880 | ||||||
| Vedanta Resources | ||||||||
| 9.500%, 07/18/18 | 2,345 | 2,685 | ||||||
| 8.250%, 06/07/21 | 2,540 | 2,800 | ||||||
| 7.125%, 05/31/23 | 1,810 | 1,858 | ||||||
| 6.000%, 01/31/19 | 3,275 | 3,324 | ||||||
| Wise Metals Group | ||||||||
| 8.750%, 12/15/18(A) | 900 | 961 | ||||||
| Total Metals & Mining | 17,208 | |||||||
| Mining Other [0.1%] | ||||||||
| Uranium One Investments | ||||||||
| 6.250%, 12/13/18 | 2,150 | 1,978 | ||||||
| Miscellaneous Business Services [0.1%] | ||||||||
| CGG | ||||||||
| 6.875%, 01/15/22(A) | 850 | 754 | ||||||
| Garda World Security | ||||||||
| 7.250%, 11/15/21(A) | 1,225 | 1,219 | ||||||
| Total Miscellaneous Business Services | 1,973 | |||||||
| Miscellaneous Manufacturing [0.5%] | ||||||||
| Dana Gas Sukuk | ||||||||
| 9.000%, 10/31/17 | 2,000 | 1,840 | ||||||
| Jasper Explorer | ||||||||
| 13.500%, 05/27/16(A) (B) | 5,500 | 1,650 | ||||||
| Mueller Water Products | ||||||||
| 8.750%, 09/01/20 | 259 | 279 | ||||||
| 7.375%, 06/01/17 | 825 | 838 | ||||||
| Sistema via Sistema International Funding | ||||||||
| 6.950%, 05/17/19 | 475 | 378 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| TMK OAO Via TMK Capital | ||||||||
| 7.750%, 01/27/18 | $ | 1,265 | $ | 1,265 | ||||
| 6.750%, 04/03/20 | 900 | 805 | ||||||
| Total Miscellaneous Manufacturing | 7,055 | |||||||
| Multi-line Insurance [0.0%] | ||||||||
| Onex York Acquisition | ||||||||
| 8.500%, 10/01/22(A) | 500 | 497 | ||||||
| Office Automation and Equip [0.1%] | ||||||||
| CDW | ||||||||
| 6.000%, 08/15/22 | 1,000 | 1,037 | ||||||
| Oil-Field Services [0.8%] | ||||||||
| FTS International | ||||||||
| 6.250%, 05/01/22(A) | 1,050 | 1,032 | ||||||
| Hiland Partners | ||||||||
| 5.500%, 05/15/22(A) | 150 | 146 | ||||||
| Norshore Atlantic BV | ||||||||
| 12.000%, 12/21/18(A) | 2,000 | 1,980 | ||||||
| Oro Negro Drilling Pte | ||||||||
| 7.500%, 01/24/19(A) | 1,500 | 1,496 | ||||||
| Sea Trucks Group | ||||||||
| 9.000%, 03/26/18(A) | 6,845 | 6,434 | ||||||
| Total Oil-Field Services | 11,088 | |||||||
| Paper & Related Products [0.3%] | ||||||||
| Bio Pappel | ||||||||
| 10.000%, 08/27/13(E) | 2,325 | 2,378 | ||||||
| Clearwater Paper | ||||||||
| 5.375%, 02/01/25(A) | 1,300 | 1,284 | ||||||
| Total Paper & Related Products | 3,662 | |||||||
| Petroleum & Fuel Products [6.6%] | ||||||||
| Access Midstream Partners | ||||||||
| 4.875%, 05/15/23 | 300 | 308 | ||||||
| 4.875%, 03/15/24 | 825 | 844 | ||||||
| Afren | ||||||||
| 11.500%, 02/01/16 | 2,000 | 2,103 | ||||||
| 6.625%, 12/09/20 | 685 | 652 | ||||||
| Antero Resources | ||||||||
| 5.125%, 12/01/22(A) | 550 | 535 | ||||||
| Antero Resources Finance | ||||||||
| 6.000%, 12/01/20 | 775 | 790 | ||||||
| 5.375%, 11/01/21 | 475 | 473 | ||||||
| Approach Resources | ||||||||
| 7.000%, 06/15/21 | 1,200 | 1,188 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 84
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Athlon Holdings | ||||||||
| 7.375%, 04/15/21 | $ | 600 | $ | 652 | ||||
| 6.000%, 05/01/22(A) | 475 | 509 | ||||||
| Atlas Pipeline Partners | ||||||||
| 4.750%, 11/15/21 | 500 | 466 | ||||||
| Bass Drill | ||||||||
| 8.000%, 09/23/19 | 1,500 | 1,504 | ||||||
| BreitBurn Energy Partners | ||||||||
| 7.875%, 04/15/22 | 1,025 | 1,038 | ||||||
| California Resources | ||||||||
| 6.000%, 11/15/24(A) | 775 | 796 | ||||||
| 5.500%, 09/15/21(A) | 175 | 178 | ||||||
| Carrizo Oil & Gas | ||||||||
| 7.500%, 09/15/20 | 275 | 286 | ||||||
| Chaparral Energy | ||||||||
| 9.875%, 10/01/20 | 500 | 535 | ||||||
| 7.625%, 11/15/22 | 1,000 | 1,025 | ||||||
| Chesapeake Energy | ||||||||
| 6.875%, 11/15/20 | 850 | 948 | ||||||
| 5.750%, 03/15/23 | 650 | 692 | ||||||
| 5.375%, 06/15/21 | 500 | 512 | ||||||
| Crestwood Midstream Partners | ||||||||
| 6.125%, 03/01/22 | 250 | 251 | ||||||
| 6.000%, 12/15/20 | 425 | 427 | ||||||
| CVR Refining | ||||||||
| 6.500%, 11/01/22 | 200 | 204 | ||||||
| El Paso | ||||||||
| 6.500%, 09/15/20 | 550 | 619 | ||||||
| Energy Transfer Equity | ||||||||
| 5.875%, 01/15/24 | 2,300 | 2,329 | ||||||
| Energy XXI Gulf Coast | ||||||||
| 7.500%, 12/15/21 | 1,725 | 1,690 | ||||||
| 6.875%, 03/15/24(A) | 175 | 164 | ||||||
| Genel Energy Finance | ||||||||
| 7.500%, 05/14/19 | 3,400 | 3,358 | ||||||
| GeoPark Latin America Agencia en Chile | ||||||||
| 7.500%, 02/11/20 | 2,000 | 2,135 | ||||||
| Gulf Keystone Petroleum | ||||||||
| 13.000%, 04/18/17 | 3,800 | 3,345 | ||||||
| Gulfport Energy | ||||||||
| 7.750%, 11/01/20(A) | 325 | 339 | ||||||
| Holly Energy Partners | ||||||||
| 6.500%, 03/01/20 | 900 | 927 | ||||||
| InterOil Exploration and Production | ||||||||
| 15.000%, 03/14/16(G) | 24,000 | 3,586 | ||||||
| Kinder Morgan | ||||||||
| 5.625%, 11/15/23(A) | 1,200 | 1,275 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Kodiak Oil & Gas | ||||||||
| 5.500%, 01/15/21 | $ | 375 | $ | 379 | ||||
| 5.500%, 02/01/22 | 350 | 352 | ||||||
| Kuwait Energy | ||||||||
| 9.500%, 08/04/19 | 2,000 | 2,095 | ||||||
| Legacy Reserves | ||||||||
| 6.625%, 12/01/21(A) | 950 | 931 | ||||||
| Linn Energy | ||||||||
| 8.625%, 04/15/20 | 525 | 543 | ||||||
| 7.750%, 02/01/21 | 250 | 252 | ||||||
| 6.500%, 05/15/19 | 275 | 269 | ||||||
| 6.500%, 09/15/21 | 275 | 268 | ||||||
| 6.250%, 11/01/19 | 425 | 415 | ||||||
| Lone Pine Resources Canada | ||||||||
| 0.000%, 02/15/17(B) (G) | 75 | — | ||||||
| MarkWest Energy Partners | ||||||||
| 6.250%, 06/15/22 | 601 | 632 | ||||||
| Metro Exploration Holding | ||||||||
| 11.250%, 02/15/15(E) (G) | 4,050 | 4,050 | ||||||
| MIE Holdings | ||||||||
| 7.500%, 04/25/19 | 850 | 867 | ||||||
| MIE Holdings, MTN | ||||||||
| 6.875%, 02/06/18 | 3,185 | 3,229 | ||||||
| Northern Oil and Gas | ||||||||
| 8.000%, 06/01/20 | 1,275 | 1,294 | ||||||
| Nostrum Oil & Gas Finance BV | ||||||||
| 6.375%, 02/14/19 | 3,795 | 3,795 | ||||||
| Oasis Petroleum | ||||||||
| 6.875%, 03/15/22 | 150 | 158 | ||||||
| 6.500%, 11/01/21 | 850 | 886 | ||||||
| Pacific Rubiales Energy | ||||||||
| 7.250%, 12/12/21 | 4,070 | 4,426 | ||||||
| 5.625%, 01/19/25(A) | 2,000 | 1,927 | ||||||
| 5.375%, 01/26/19 | 620 | 629 | ||||||
| 5.125%, 03/28/23 | 1,110 | 1,054 | ||||||
| Petroleos de Venezuela | ||||||||
| 5.250%, 04/12/17 | 3,000 | 2,085 | ||||||
| 4.900%, 10/28/14 | 1,000 | 980 | ||||||
| Puma International Financing | ||||||||
| 6.750%, 02/01/21 | 5,185 | 5,316 | ||||||
| Range Resources | ||||||||
| 5.000%, 03/15/23 | 475 | 489 | ||||||
| Regency Energy Partners | ||||||||
| 5.875%, 03/01/22 | 400 | 416 | ||||||
| 5.500%, 04/15/23 | 200 | 202 | ||||||
| 5.000%, 10/01/22 | 150 | 148 | ||||||
| 4.500%, 11/01/23 | 350 | 339 | ||||||
| Rose Rock Midstream | ||||||||
| 5.625%, 07/15/22(A) | 625 | 619 | ||||||
| RSP Permian | ||||||||
| 6.625%, 10/01/22(A) | 175 | 176 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 85
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Sabine Pass Liquefaction | ||||||||
| 6.250%, 03/15/22(A) | $ | 525 | $ | 553 | ||||
| 5.625%, 02/01/21 | 1,075 | 1,105 | ||||||
| 5.625%, 04/15/23 | 175 | 177 | ||||||
| SandRidge Energy | ||||||||
| 8.125%, 10/15/22 | 975 | 974 | ||||||
| 7.500%, 03/15/21 | 325 | 317 | ||||||
| Santa Maria Offshore | ||||||||
| 8.875%, 07/03/18(A) | 3,800 | 4,018 | ||||||
| SM Energy | ||||||||
| 5.000%, 01/15/24 | 200 | 191 | ||||||
| Summit Midstream Holdings | ||||||||
| 5.500%, 08/15/22 | 425 | 417 | ||||||
| Tesoro | ||||||||
| 5.125%, 04/01/24 | 600 | 582 | ||||||
| Tesoro Logistics | ||||||||
| 6.125%, 10/15/21 | 225 | 232 | ||||||
| 5.875%, 10/01/20 | 924 | 956 | ||||||
| Tullow Oil | ||||||||
| 6.000%, 11/01/20 | 1,440 | 1,447 | ||||||
| W&T Offshore | ||||||||
| 8.500%, 06/15/19 | 725 | 750 | ||||||
| Yingde Gases Investment | ||||||||
| 8.125%, 04/22/18 | 1,335 | 1,358 | ||||||
| Zhaikmunai LLP | ||||||||
| 7.125%, 11/13/19 | 2,510 | 2,629 | ||||||
| Total Petroleum & Fuel Products | 91,610 | |||||||
| Pharmacy Services [0.0%] | ||||||||
| Catamaran | ||||||||
| 4.750%, 03/15/21 | 175 | 168 | ||||||
| Printing & Publishing [0.3%] | ||||||||
| Expo Event Transco | ||||||||
| 9.000%, 06/15/21(A) | 1,175 | 1,211 | ||||||
| Mustang Merger | ||||||||
| 8.500%, 08/15/21(A) | 850 | 880 | ||||||
| Nielsen Finance | ||||||||
| 5.000%, 04/15/22(A) | 275 | 269 | ||||||
| 4.500%, 10/01/20 | 1,475 | 1,427 | ||||||
| Time | ||||||||
| 5.750%, 04/15/22(A) | 700 | 670 | ||||||
| Total Printing & Publishing | 4,457 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Publishing-Newspapers [0.1%] | ||||||||
| Gannett | ||||||||
| 6.375%, 10/15/23(A) | $ | 925 | $ | 962 | ||||
| 5.500%, 09/15/24(A) | 50 | 49 | ||||||
| 5.125%, 10/15/19(A) | 175 | 177 | ||||||
| 4.875%, 09/15/21(A) | 50 | 48 | ||||||
| Total Publishing-Newspapers | 1,236 | |||||||
| Radio [0.5%] | ||||||||
| Cumulus Media Holdings | ||||||||
| 7.750%, 05/01/19 | 1,050 | 1,076 | ||||||
| Entercom Radio | ||||||||
| 10.500%, 12/01/19 | 600 | 657 | ||||||
| Radio One | ||||||||
| 9.250%, 02/15/20(A) | 900 | 898 | ||||||
| Sirius XM Holdings | ||||||||
| 4.625%, 05/15/23(A) | 1,425 | 1,325 | ||||||
| 4.250%, 05/15/20(A) | 350 | 335 | ||||||
| Sirius XM Radio | ||||||||
| 6.000%, 07/15/24(A) | 975 | 990 | ||||||
| Townsquare Radio | ||||||||
| 9.000%, 04/01/19(A) | 975 | 1,050 | ||||||
| Total Radio | 6,331 | |||||||
| Real Estate Oper/Develop [2.6%] | ||||||||
| Central China Real Estate | ||||||||
| 8.000%, 01/28/20 | 780 | 763 | ||||||
| Central China Real Estate, MTN | ||||||||
| 6.500%, 06/04/18 | 950 | 905 | ||||||
| China SCE Property Holdings | ||||||||
| 11.500%, 11/14/17 | 2,520 | 2,636 | ||||||
| CIFI Holdings Group | ||||||||
| 12.250%, 04/15/18 | 2,265 | 2,520 | ||||||
| 8.875%, 01/27/19 | 670 | 667 | ||||||
| Country Garden Holdings | ||||||||
| 7.500%, 01/10/23 | 2,135 | 2,044 | ||||||
| 7.250%, 04/04/21 | 695 | 683 | ||||||
| Evergrande Real Estate Group | ||||||||
| 13.000%, 01/27/15 | 820 | 833 | ||||||
| Jababeka International BV | ||||||||
| 7.500%, 09/24/19 | 2,000 | 2,016 | ||||||
| Kaisa Group Holdings | ||||||||
| 10.250%, 01/08/20 | 1,175 | 1,216 | ||||||
| 9.000%, 06/06/19 | 700 | 703 | ||||||
| 8.875%, 03/19/18 | 1,175 | 1,190 | ||||||
| KWG Property Holding | ||||||||
| 13.250%, 03/22/17 | 600 | 678 | ||||||
| 8.975%, 01/14/19 | 1,200 | 1,191 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 86
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Pakuwon Prima Pte | ||||||||
| 7.125%, 07/02/19 | $ | 2,000 | $ | 2,027 | ||||
| Shimao Property Holdings | ||||||||
| 6.625%, 01/14/20 | 1,260 | 1,254 | ||||||
| Sukuk Funding No. 3 | ||||||||
| 4.348%, 12/03/18 | 2,015 | 2,101 | ||||||
| Sunac China Holdings | ||||||||
| 12.500%, 10/16/17 | 1,330 | 1,476 | ||||||
| 9.375%, 04/05/18 | 2,240 | 2,271 | ||||||
| Times Property Holdings | ||||||||
| 12.625%, 03/21/19 | 1,170 | 1,232 | ||||||
| Trillion Chance | ||||||||
| 8.500%, 01/10/19 | 2,065 | 2,015 | ||||||
| Vingroup JSC | ||||||||
| 11.625%, 05/07/18 | 1,365 | 1,536 | ||||||
| Yanlord Land Group | ||||||||
| 10.625%, 03/29/18 | 1,300 | 1,404 | ||||||
| Yuzhou Properties | ||||||||
| 11.750%, 10/25/17 | 1,130 | 1,240 | ||||||
| 8.625%, 01/24/19 | 1,950 | 1,912 | ||||||
| Total Real Estate Oper/Develop | 36,513 | |||||||
| Research and Development [0.2%] | ||||||||
| Jaguar Holding I | ||||||||
| 9.375%, 10/15/17(A) (F) | 1,625 | 1,641 | ||||||
| Jaguar Holding II | ||||||||
| 9.500%, 12/01/19(A) | 650 | 697 | ||||||
| Total Research and Development | 2,338 | |||||||
| Resorts/Theme Parks [0.2%] | ||||||||
| Cedar Fair | ||||||||
| 5.250%, 03/15/21 | 1,300 | 1,281 | ||||||
| Six Flags Entertainment | ||||||||
| 5.250%, 01/15/21(A) | 1,325 | 1,285 | ||||||
| Total Resorts/Theme Parks | 2,566 | |||||||
| Retail [2.5%] | ||||||||
| Academy | ||||||||
| 9.250%, 08/01/19(A) | 1,050 | 1,110 | ||||||
| BKW | ||||||||
| 6.000%, 04/01/22(A) | 1,000 | 994 | ||||||
| Claire’s Stores | ||||||||
| 6.125%, 03/15/20(A) | 350 | 322 | ||||||
| DineEquity | ||||||||
| 9.500%, 10/30/18 | 775 | 815 | ||||||
| Edcon Holdings Pty | ||||||||
| 13.375%, 06/30/19 | 2,720 | 1,477 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Edcon Pty | ||||||||
| 9.500%, 03/01/18 | $ | 3,540 | $ | 3,712 | ||||
| Ferrellgas | ||||||||
| 6.750%, 01/15/22 | 175 | 171 | ||||||
| 6.500%, 05/01/21 | 350 | 342 | ||||||
| Grupo Famsa | ||||||||
| 7.250%, 06/01/20 | 2,500 | 2,500 | ||||||
| 6.125%, 01/28/15 | 2,867 | 2,867 | ||||||
| Hillman Group | ||||||||
| 6.375%, 07/15/22(A) | 850 | 823 | ||||||
| Jo-Ann Stores | ||||||||
| 8.125%, 03/15/19(A) | 1,200 | 1,140 | ||||||
| Jo-Ann Stores Holdings | ||||||||
| 9.750%, 10/15/19(A) (F) | 600 | 558 | ||||||
| L Brands | ||||||||
| 5.625%, 10/15/23 | 700 | 730 | ||||||
| Limited Brands | ||||||||
| 5.625%, 02/15/22 | 350 | 365 | ||||||
| Michaels FinCo Holdings | ||||||||
| 7.500%, 08/01/18(A) | 608 | 619 | ||||||
| Michaels Stores | ||||||||
| 5.875%, 12/15/20(A) | 950 | 945 | ||||||
| Neiman Marcus Group | ||||||||
| 8.750%, 10/15/21(A) | 900 | 947 | ||||||
| 8.000%, 10/15/21(A) | 275 | 286 | ||||||
| New Academy Finance | ||||||||
| 8.000%, 06/15/18(A) (F) | 1,175 | 1,172 | ||||||
| NPC International | ||||||||
| 10.500%, 01/15/20 | 1,075 | 1,121 | ||||||
| Party City Holdings | ||||||||
| 8.875%, 08/01/20 | 900 | 972 | ||||||
| PC Nextco Holdings | ||||||||
| 8.750%, 08/15/19 | 1,275 | 1,281 | ||||||
| Petco Animal Supplies | ||||||||
| 9.250%, 12/01/18(A) | 1,200 | 1,263 | ||||||
| Petco Holdings | ||||||||
| 8.500%, 10/15/17(A) (F) | 600 | 609 | ||||||
| PVH | ||||||||
| 4.500%, 12/15/22 | 925 | 904 | ||||||
| Sally Holdings | ||||||||
| 6.875%, 11/15/19 | 1,075 | 1,139 | ||||||
| Stonegate Pub Financing | ||||||||
| 5.308%, 04/15/19(C) | 1,000 | 1,626 | ||||||
| Stretford 79 | ||||||||
| 6.250%, 07/15/21 | 1,000 | 1,463 | ||||||
| 4.807%, 07/15/20(C) | 1,000 | 1,459 | ||||||
| Suburban Propane Partners | ||||||||
| 5.500%, 06/01/24 | 1,125 | 1,074 | ||||||
| Total Retail | 34,806 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 87
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Rubber/Plastic Products [0.1%] | ||||||||
| Gates Global | ||||||||
| 6.000%, 07/15/22(A) | $ | 775 | $ | 728 | ||||
| Semicon Compo-Intg Circu [0.0%] | ||||||||
| NXP BV | ||||||||
| 5.750%, 02/15/21(A) | 200 | 203 | ||||||
| 5.750%, 03/15/23(A) | 200 | 202 | ||||||
| 3.750%, 06/01/18(A) | 300 | 295 | ||||||
| Total Semicon Compo-Intg Circu | 700 | |||||||
| Semi-Conductors [0.3%] | ||||||||
| Advanced Micro Devices | ||||||||
| 7.500%, 08/15/22 | 475 | 479 | ||||||
| 7.000%, 07/01/24 | 450 | 430 | ||||||
| Entegris | ||||||||
| 6.000%, 04/01/22(A) | 925 | 939 | ||||||
| Flextronics International | ||||||||
| 4.625%, 02/15/20 | 250 | 250 | ||||||
| Freescale Semiconductor | ||||||||
| 6.000%, 01/15/22(A) | 800 | 812 | ||||||
| Magnachip Semiconductor | ||||||||
| 6.625%, 07/15/21 | 1,000 | 920 | ||||||
| Total Semi-Conductors | 3,830 | |||||||
| Steel & Steel Works [0.2%] | ||||||||
| Metinvest BV | ||||||||
| 10.250%, 05/20/15 | 1,710 | 1,308 | ||||||
| 8.750%, 02/14/18 | 2,485 | 1,690 | ||||||
| Steel Dynamics | ||||||||
| 5.500%, 10/01/24(A) | 375 | 377 | ||||||
| 5.250%, 04/15/23 | 125 | 126 | ||||||
| 5.125%, 10/01/21(A) | 225 | 228 | ||||||
| Total Steel & Steel Works | 3,729 | |||||||
| Technology [0.2%] | ||||||||
| Sophia | ||||||||
| 9.750%, 01/15/19(A) | 900 | 967 | ||||||
| Sophia Holding Finance | ||||||||
| 9.625%, 12/01/18(A) | 350 | 353 | ||||||
| Truven Health Analytics | ||||||||
| 10.625%, 06/01/20 | 775 | 818 | ||||||
| Total Technology | 2,138 | |||||||
| Telecommunication Equip [0.1%] | ||||||||
| CommScope | ||||||||
| 5.500%, 06/15/24(A) | 525 | 516 | �� | |||||
| Description | Face Amount (000) | Value (000) | ||||||
| CommScope Holding | ||||||||
| 6.625%, 06/01/20(A) (F) | $ | 1,350 | $ | 1,391 | ||||
| Total Telecommunication Equip | 1,907 | |||||||
| Telephones & Telecommunications [4.2%] | ||||||||
| Altice, MTN | ||||||||
| 7.750%, 05/15/22(A) | 1,100 | 1,136 | ||||||
| Banglalink Digital Communications | ||||||||
| 8.625%, 05/06/19 | 4,140 | 4,357 | ||||||
| Bite Finance International BV, MTN | ||||||||
| 7.699%, 02/15/18(C) | 1,540 | 1,936 | ||||||
| Colombia Telecomunicaciones ESP | ||||||||
| 5.375%, 09/27/22 | 1,890 | 1,899 | ||||||
| Comcel Trust | ||||||||
| 6.875%, 02/06/24 | 2,495 | 2,632 | ||||||
| Digicel | ||||||||
| 7.000%, 02/15/20(A) | 450 | 463 | ||||||
| 6.000%, 04/15/21 | 3,275 | 3,242 | ||||||
| 6.000%, 04/15/21(A) | 400 | 396 | ||||||
| Digicel Group | ||||||||
| 8.250%, 09/30/20 | 8,835 | 9,145 | ||||||
| 8.250%, 09/30/20(A) | 1,375 | 1,416 | ||||||
| 7.125%, 04/01/22 | 1,880 | 1,876 | ||||||
| Inmarsat Finance | ||||||||
| 4.875%, 05/15/22(A) | 725 | 709 | ||||||
| Intelsat Jackson Holdings | ||||||||
| 5.500%, 08/01/23 | 525 | 501 | ||||||
| Intelsat Luxembourg | ||||||||
| 8.125%, 06/01/23 | 600 | 626 | ||||||
| 7.750%, 06/01/21 | 825 | 841 | ||||||
| Level 3 Financing | ||||||||
| 8.125%, 07/01/19 | 900 | 959 | ||||||
| 7.000%, 06/01/20 | 650 | 685 | ||||||
| MetroPCS Wireless | ||||||||
| 6.625%, 11/15/20 | 600 | 617 | ||||||
| Millicom International Cellular | ||||||||
| 6.625%, 10/15/21 | 1,650 | 1,712 | ||||||
| 4.750%, 05/22/20 | 690 | 657 | ||||||
| Sprint | ||||||||
| 7.875%, 09/15/23(A) | 1,725 | 1,829 | ||||||
| Sprint Capital | ||||||||
| 6.875%, 11/15/28 | 1,500 | 1,433 | ||||||
| Sprint Nextel | ||||||||
| 7.000%, 03/01/20(A) | 600 | 656 | ||||||
| 6.000%, 11/15/22 | 1,100 | 1,067 | ||||||
| Syniverse Holdings | ||||||||
| 9.125%, 01/15/19 | 1,600 | 1,680 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 88
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Telefonica Celular del Paraguay | ||||||||
| 6.750%, 12/13/22 | $ | 1,550 | $ | 1,613 | ||||
| Telemar Norte Leste | ||||||||
| 5.500%, 10/23/20 | 1,700 | 1,651 | ||||||
| T-Mobile USA | ||||||||
| 6.836%, 04/28/23 | 925 | 950 | ||||||
| 6.731%, 04/28/22 | 125 | 128 | ||||||
| 6.633%, 04/28/21 | 125 | 128 | ||||||
| 6.625%, 04/01/23 | 675 | 690 | ||||||
| 6.500%, 01/15/24 | 575 | 582 | ||||||
| 6.125%, 01/15/22 | 1,050 | 1,055 | ||||||
| Vimpel Communications Via VIP Finance Ireland | ||||||||
| 7.748%, 02/02/21 | 1,970 | 2,019 | ||||||
| VimpelCom Holdings BV | ||||||||
| 7.504%, 03/01/22 | 2,230 | 2,272 | ||||||
| 5.950%, 02/13/23 | 1,600 | 1,464 | ||||||
| Virgin Media Finance | ||||||||
| 6.375%, 04/15/23(A) | 675 | 697 | ||||||
| Vivacom, MTN | ||||||||
| 6.625%, 11/15/18 | 2,000 | 2,501 | ||||||
| Total Telephones & Telecommunications | 58,220 | |||||||
| Textile-Apparel [0.2%] | ||||||||
| Texhong Textile Group | ||||||||
| 7.625%, 01/19/16 | 1,500 | 1,530 | ||||||
| 6.500%, 01/18/19 | 1,535 | 1,541 | ||||||
| Total Textile-Apparel | 3,071 | |||||||
| Textile-Home Furnishings [0.1%] | ||||||||
| Springs Industries | ||||||||
| 6.250%, 06/01/21 | 625 | 613 | ||||||
| Textile-Products [0.2%] | ||||||||
| Golden Legacy PTE | ||||||||
| 9.000%, 04/24/19 | 3,010 | 3,160 | ||||||
| Transactional Software [0.0%] | ||||||||
| ACI Worldwide | ||||||||
| 6.375%, 08/15/20(A) | 125 | 130 | ||||||
| Transportation Services [1.5%] | ||||||||
| Azerbaijan Railways Via Aquarius Investments | ||||||||
| 8.250%, 02/18/16 | 2,080 | 2,163 | ||||||
| Brunswick Rail Finance | ||||||||
| 6.500%, 11/01/17 | 1,485 | 1,377 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| DTEK Finance | ||||||||
| 7.875%, 04/04/18 | $ | 3,330 | $ | 2,007 | ||||
| DTEK Finance BV | ||||||||
| 9.500%, 04/28/15 | 845 | 623 | ||||||
| Dubai Holding Commercial Operations, MTN | ||||||||
| 6.000%, 02/01/17 | 6,350 | 10,577 | ||||||
| Far East Capital | ||||||||
| 8.750%, 05/02/20 | 1,190 | 791 | ||||||
| 8.000%, 05/02/18 | 1,880 | 1,241 | ||||||
| Favor Sea | ||||||||
| 11.750%, 02/04/19 | 1,265 | 1,347 | ||||||
| Nielsen Luxembourg SaRL | ||||||||
| 5.500%, 10/01/21(A) | 250 | 251 | ||||||
| Ukraine Railways via Shortline | ||||||||
| 9.500%, 05/21/18 | 1,881 | 1,392 | ||||||
| Total Transportation Services | 21,769 | |||||||
| Transport-Equip and Leasng [0.1%] | ||||||||
| Jurassic Holdings III | ||||||||
| 6.875%, 02/15/21(A) | 800 | 800 | ||||||
| Utility [0.0%] | ||||||||
| Suburban Propane Partners | ||||||||
| 7.375%, 08/01/21 | 275 | 291 | ||||||
| Web Portals/ISP [0.2%] | ||||||||
| Pacnet | ||||||||
| 9.000%, 12/12/18 | 2,706 | 2,862 | ||||||
| X-Ray Equipment [0.0%] | ||||||||
| Hologic | ||||||||
| 6.250%, 08/01/20 | 600 | 618 | ||||||
| Total Corporate Bonds | ||||||||
| (Cost $730,714) | 713,340 | |||||||
| Loan Participations [29.7%] | ||||||||
| Aerospace [0.9%] | ||||||||
| Air Canada, Term Loan B | ||||||||
| 5.500%, 09/26/19 | 1,446 | 1,459 | ||||||
| AM General Corporation, Term Loan B - 2013 | ||||||||
| 10.250%, 03/22/18 | 459 | 424 | ||||||
| American Airlines Inc., Exit Term Loan | ||||||||
| 3.750%, 06/27/19 | 2,497 | 2,451 | ||||||
| Atlantic Aviation FBO Inc., Term Loan B | ||||||||
| 3.250%, 06/01/20 | 153 | 151 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 89
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Dae Aviation Holdings, Second Lien Term Loan | ||||||||
| 7.750%, 08/05/19 | $ | 1,325 | $ | 1,333 | ||||
| Dae Aviation Holdings, Term Loan B1 - 2014 | ||||||||
| 5.000%, 11/02/18 | 364 | 365 | ||||||
| Dae Aviation Holdings, Term Loan B2 - 2014 | ||||||||
| 5.000%, 11/02/18 | 165 | 165 | ||||||
| LM U.S. (Landmark Aviation), Canadian Term Loan | ||||||||
| 4.750%, 10/25/19 | 14 | 13 | ||||||
| LM U.S. (Landmark Aviation), Second Lien | ||||||||
| 0.040%, 10/26/20(D) | 785 | 784 | ||||||
| LM U.S. (Landmark Aviation), US Term Loan | ||||||||
| 4.750%, 10/25/19 | 345 | 343 | ||||||
| Tasc Inc., Second Lien | ||||||||
| 12.000%, 05/23/21 | 360 | 350 | ||||||
| Tasc Inc., Term Loan | ||||||||
| 6.500%, 05/23/20 | 823 | 790 | ||||||
| TransDigm Inc., Term Loan C | ||||||||
| 3.750%, 02/28/20 | 1,236 | 1,214 | ||||||
| TransDigm Inc., Term Loan D | ||||||||
| 3.750%, 06/04/21 | 1,362 | 1,336 | ||||||
| US Airways Group Inc., Term Loan B-1 | ||||||||
| 3.500%, 05/23/19 | 644 | 627 | ||||||
| WP CPP Holdings, Second Lien | ||||||||
| 8.750%, 04/30/21 | 45 | 45 | ||||||
| WP CPP Holdings, Term Loan | ||||||||
| 4.750%, 12/28/19 | 171 | 169 | ||||||
| Wyle Services Corporation, Term Loan B | ||||||||
| 5.000%, 05/21/21 | 234 | 233 | ||||||
| Total Aerospace | 12,252 | |||||||
| Automotive [0.5%] | ||||||||
| Car Trawler, Term Loan | ||||||||
| 4.319%, 04/30/21(H) | 3,000 | 3,785 | ||||||
| Oasis Holdings | ||||||||
| 3.500%, 11/19/20 | 4,580 | 3,114 | ||||||
| Total Automotive | 6,899 | |||||||
| Broadcasting [1.2%] | ||||||||
| Clear Channel Communication, Term Loan B | ||||||||
| 3.807%, 01/29/16 | 1,872 | 1,852 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Clear Channel Communication, Term Loan C | ||||||||
| 3.810%, 01/29/16 | $ | 182 | $ | 179 | ||||
| Clear Channel Communication, Term Loan D Extended | ||||||||
| 6.904%, 01/30/19(H) | 5,143 | 4,908 | ||||||
| Clear Channel Communication, Term Loan E | ||||||||
| 7.660%, 07/30/19 | 2,000 | 1,955 | ||||||
| Cumulus Media, Term Loan B | ||||||||
| 4.250%, 12/23/20 | 1,930 | 1,895 | ||||||
| Gray Television, Inc., Term Loan B | ||||||||
| 3.750%, 06/13/21(H) | 1,781 | 1,751 | ||||||
| Hubbard Broadcasting, Term Loan B | ||||||||
| 4.500%, 04/28/17 | 246 | 244 | ||||||
| Lin Television, Term Loan B | ||||||||
| 4.000%, 12/21/18 | 135 | 134 | ||||||
| Media General Inc., Delayed Draw Term Loan B | ||||||||
| 4.250%, 07/31/20 | 222 | 220 | ||||||
| Radio One, Term Loan | ||||||||
| 7.500%, 03/31/16 | 431 | 436 | ||||||
| Sinclair Broadcasting Group, Term Loan B - 2011 | ||||||||
| 3.000%, 10/28/16 | 153 | 150 | ||||||
| Univision Comm (fka Umbrella), Replacement First-Lien Term Loans | ||||||||
| 4.000%, 03/01/20(H) | 2,266 | 2,222 | ||||||
| Univision Comm (fka Umbrella), TL C-3 (2013 Inc. Term Loans) | ||||||||
| 4.000%, 03/01/20 | 1,336 | 1,310 | ||||||
| Total Broadcasting | 17,256 | |||||||
| Building Materials [0.2%] | ||||||||
| Cemex | ||||||||
| 0.000%, 02/14/17(H) | 3,040 | 3,021 | ||||||
| Cable/Wireless Video [2.0%] | ||||||||
| Altice Financing, Term Loan B | ||||||||
| 5.500%, 07/02/19 | 3,635 | 3,663 | ||||||
| Atlantic Broadband, Term Loan B - 2013 | ||||||||
| 3.250%, 09/20/19 | 335 | 327 | ||||||
| Cablevision Systems Corp., Term Loan B - 2013 | ||||||||
| 2.654%, 04/17/20 | 1,287 | 1,248 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 90
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Cequel Communications, LLC, Term Loan B 2012 | ||||||||
| 3.500%, 02/10/19 | $ | 1,160 | $ | 1,139 | ||||
| Charter Comm Operating, LLC, Term Loan A1 | ||||||||
| 2.160%, 04/22/18 | 458 | 448 | ||||||
| Charter Comm Operating, LLC, Term Loan E | ||||||||
| 3.000%, 04/10/20 | 2,694 | 2,612 | ||||||
| Charter Comm Operating, LLC, Term Loan G | ||||||||
| 4.250%, 09/12/21(H) | 230 | 229 | ||||||
| Intelsat Jackson Holdings, Term Loan B2 | ||||||||
| 3.750%, 06/30/19 | 2,363 | 2,322 | ||||||
| Liberty Cablevision of Puerto Rico, First Lien Term Loan | ||||||||
| 4.500%, 12/24/21 | 355 | 352 | ||||||
| Liberty Cablevision of Puerto Rico, Second Lien - 2014 | ||||||||
| 7.750%, 06/26/23 | 215 | 213 | ||||||
| MCC Iowa (Broadband), Term Loan G | ||||||||
| 4.000%, 01/20/20 | 255 | 248 | ||||||
| MCC Iowa (Broadband), Term Loan H | ||||||||
| 3.250%, 01/22/21 | 1,290 | 1,254 | ||||||
| MCC Iowa (Broadband), Term Loan J | ||||||||
| 3.750%, 06/18/21 | 80 | 79 | ||||||
| Primacom, Term Loan A | ||||||||
| 5.444%, 02/28/17(G) (H) (J) | 2,539 | 3,207 | ||||||
| Quebecor Media, Term Loan B | ||||||||
| 3.250%, 08/17/20 | 1,591 | 1,546 | ||||||
| UPC Financing, Term Loan AH | ||||||||
| 3.250%, 06/10/21 | 860 | 836 | ||||||
| Virgin Media Invst Hlds Ltd., Term Loan B | ||||||||
| 3.500%, 02/15/20 | 2,365 | 2,301 | ||||||
| WideOpenWest Finance LLC, Term Loan B - 2019 | ||||||||
| 4.750%, 04/01/19 | 231 | 231 | ||||||
| Ziggo B.V., Term Loan B1 | ||||||||
| 3.250%, 01/15/22(H) | 2,034 | 1,973 | ||||||
| Ziggo B.V., Term Loan B2 | ||||||||
| 3.250%, 01/15/22(H) | 1,311 | 1,272 | ||||||
| Ziggo B.V., Term Loan B3 | ||||||||
| 0.000%, 01/15/22(H) | 2,156 | 2,091 | ||||||
| Total Cable/Wireless Video | 27,591 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Chemicals [0.6%] | ||||||||
| Axalta Coating Systems US Holdings, Term Loan B - 2014 | ||||||||
| 4.000%, 02/01/20 | $ | 321 | $ | 314 | ||||
| Flint, Term Loan | ||||||||
| 0.000%, 05/03/21 | 3,000 | 2,962 | ||||||
| Gemini HDPE LLC, Term Loan B | ||||||||
| 4.750%, 07/24/21 | 580 | 575 | ||||||
| Huntsman International LLC, Term Loan C | ||||||||
| 2.450%, 06/30/16 | 14 | 13 | ||||||
| Ineos Group Holdings PLC, Dollar Term Loans - 2018 | ||||||||
| 3.750%, 05/04/18(H) | 2,563 | 2,508 | ||||||
| MacDermid Holdings, LLC, Term Loan | ||||||||
| 4.000%, 06/05/20 | 346 | 339 | ||||||
| Minerals Technologies Inc., Term Loan B | ||||||||
| 4.000%, 05/07/21 | 489 | 485 | ||||||
| Nexeo Solutions, Term Loan B | ||||||||
| 5.000%, 09/08/17 | 371 | 367 | ||||||
| OXEA S.a r.l., Term Loan | ||||||||
| 4.250%, 12/06/19 | 149 | 146 | ||||||
| Polymer Group Inc., Term Loan B | ||||||||
| 5.250%, 12/19/19 | 646 | 643 | ||||||
| PQ Corporation, Term Loans | ||||||||
| 4.000%, 08/07/17 | 162 | 160 | ||||||
| Tata Chemicals North America, Term Loan B | ||||||||
| 3.750%, 08/07/20 | 114 | 112 | ||||||
| Tronox, Term Loan B | ||||||||
| 4.000%, 02/03/18 | 288 | 286 | ||||||
| Total Chemicals | 8,910 | |||||||
| Consumer Durables [0.0%] | ||||||||
| Serta Simmons Bedding, Term Loan B | ||||||||
| 4.250%, 09/19/19 | 2 | 2 | ||||||
| 4.250%, 09/19/19 | 535 | 529 | ||||||
| Total Consumer Durables | 531 | |||||||
| Consumer Non-Durables [0.2%] | ||||||||
| Eastman Kodak Company, Exit Term Loan | ||||||||
| 7.250%, 09/03/19 | 336 | 337 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 91
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Kate Spade & Company, Term Loan B | ||||||||
| 4.000%, 04/09/21 | $ | 270 | $ | 263 | ||||
| Libbey Glass Inc., Term Loan B | ||||||||
| 3.750%, 04/09/21 | 249 | 247 | ||||||
| Party City Holdings Inc., 2014 Replacement Term Loans | ||||||||
| 4.000%, 07/27/19 | 520 | 512 | ||||||
| Revlon Consumer Products, Replacement Term Loan | ||||||||
| 3.250%, 11/20/17 | 250 | 246 | ||||||
| Revlon Consumer Products, Term Loan | ||||||||
| 4.000%, 10/08/19 | 784 | 771 | ||||||
| WNA Holdings, Inc., Term Loan - USD Borrower | ||||||||
| 4.500%, 06/07/20 | 71 | 70 | ||||||
| WNA Holdings, Inc., TL (PolarPak) - CAD Borrower | ||||||||
| 4.500%, 06/07/20 | 137 | 135 | ||||||
| Total Consumer Non-Durables | 2,581 | |||||||
| Diversified Media [1.8%] | ||||||||
| Affinion Group Inc., Second Lien | ||||||||
| 8.500%, 10/12/18 | 180 | 173 | ||||||
| Affinion Group Inc., Term Loan B | ||||||||
| 6.750%, 10/08/16 | 428 | 414 | ||||||
| ALM Media, LLC, Term Loan B | ||||||||
| 5.500%, 07/29/20 | 220 | 218 | ||||||
| AP NMT Acquisition B.V., First Lien Term Loan | ||||||||
| 6.750%, 08/11/21 | 650 | 632 | ||||||
| Bureau Van Dijk | ||||||||
| 0.000%, 09/17/21(H) | 1,000 | 1,624 | ||||||
| Cinemark USA Inc., Term Loan | ||||||||
| 3.160%, 12/18/19 | 157 | 155 | ||||||
| Deluxe Entertainment Services Group, Term Loan | ||||||||
| 6.500%, 02/28/20 | 602 | 557 | ||||||
| Emerald Expositions Holding, Inc., Term Loan B | ||||||||
| 5.500%, 06/17/20 | 304 | 302 | ||||||
| EMI Music Publishing Limited, Term B1 Loan | ||||||||
| 3.750%, 03/05/18 | 305 | 299 | ||||||
| Getty Images, Inc., Term Loan | ||||||||
| 4.750%, 10/03/19(H) | 568 | 520 | ||||||
| Harland Clarke Holdings, Cov-Lite Term Loan B-4 | ||||||||
| 6.000%, 08/04/19 | 1,963 | 1,970 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Harland Clarke Holdings, Term Loan B3 | ||||||||
| 7.000%, 05/22/18 | $ | 4,958 | $ | 4,999 | ||||
| Harland Clarke Holdings, Tranche B-2 TL | ||||||||
| 5.484%, 06/30/17 | 178 | 177 | ||||||
| Hoyts Group Holdings, Term Loan | ||||||||
| 4.000%, 05/29/20 | 123 | 121 | ||||||
| Learfield Communications, 2014 Replacement Term Loan | ||||||||
| 4.500%, 10/09/20 | 169 | 168 | ||||||
| Lions Gate Entertainment, Second Lien | ||||||||
| 5.000%, 07/19/20 | 300 | 301 | ||||||
| Live Nation, Term Loan B | ||||||||
| 3.500%, 08/17/20 | 525 | 518 | ||||||
| McGraw-Hill, Cov-Lite Term Loan | ||||||||
| 5.750%, 03/22/19 | 263 | 263 | ||||||
| Merrill Corp., Term Loan | ||||||||
| 5.750%, 03/08/18 | 399 | 404 | ||||||
| Quad/Graphics, Term Loan B | ||||||||
| 4.250%, 04/28/21 | 429 | 425 | ||||||
| Rovi Solutions Corporation, Term Loan B | ||||||||
| 3.750%, 07/02/21 | 414 | 402 | ||||||
| Tribune Company, Term Loan B - 2013 | ||||||||
| 4.000%, 12/27/20 | 3,758 | 3,705 | ||||||
| Van Wagner, Term Loan B | ||||||||
| 6.250%, 08/03/18 | 241 | 241 | ||||||
| Village Roadshow Limited, Ultimates Facility Tranche A-2 | ||||||||
| 4.750%, 11/21/17 | 1,428 | 1,414 | ||||||
| Warner Music Group Corp., Term Loan - 2013 | ||||||||
| 3.750%, 07/01/20 | 1,030 | 992 | ||||||
| WME IMG Holdings LLC, Second Lien | ||||||||
| 8.250%, 05/06/22 | 360 | 350 | ||||||
| WME IMG Holdings LLC, Term Loan B | ||||||||
| 5.250%, 05/06/21 | 3,312 | 3,258 | ||||||
| Total Diversified Media | 24,602 | |||||||
| Energy [2.1%] | ||||||||
| Alon USA Inc, MLP Term Loan | ||||||||
| 9.250%, 11/26/18 | 499 | 505 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 92
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| American Energy - Marcellus, LLC, First Lien Term Loan | ||||||||
| 5.250%, 08/04/20 | $ | 145 | $ | 144 | ||||
| American Energy - Marcellus, LLC, Second Lien | ||||||||
| 8.500%, 07/09/21 | 145 | 144 | ||||||
| Atlas Energy, Term Loan B | ||||||||
| 6.500%, 07/31/19 | 564 | 568 | ||||||
| Azure Midstream Holdings LLC, Term Loan B | ||||||||
| 6.500%, 11/15/18 | 322 | 319 | ||||||
| BlackBrush Oil & Gas, L.P., Second Lien | ||||||||
| 8.750%, 07/21/21 | 365 | 359 | ||||||
| Chief Exploration & Development LLC, Second Lien | ||||||||
| 7.500%, 05/16/21 | 570 | 569 | ||||||
| CITGO Petroleum Corp., Term Loan B | ||||||||
| 4.500%, 07/23/21 | 615 | 613 | ||||||
| Drillships Financing Holding Inc., Term Loan B | ||||||||
| 5.500%, 07/16/21 | 505 | 489 | ||||||
| Drillships Financing Holding Inc., Term Loan B1 | ||||||||
| 6.000%, 03/31/21 | 2,133 | 2,042 | ||||||
| EMG Utica, Term Loan | ||||||||
| 4.750%, 03/27/20(H) | 740 | 739 | ||||||
| Energy Transfer Equity LP, Term Loan B | ||||||||
| 3.250%, 12/02/19 | 5,035 | 4,901 | ||||||
| EP Energy (aka Everest Acquisition), Term Loan B-2 | ||||||||
| 4.500%, 04/26/19 | 203 | 201 | ||||||
| EP Energy (aka Everest Acquisition), Term Loan B-3 | ||||||||
| 3.500%, 05/24/18 | 734 | 720 | ||||||
| Fieldwood Energy LLC, Second Lien | ||||||||
| 8.125%, 09/30/20 | 215 | 215 | ||||||
| Fieldwood Energy LLC, Term Loan | ||||||||
| 3.875%, 09/28/18 | 894 | 880 | ||||||
| Glenn Pool Oil, Term Loan | ||||||||
| 4.500%, 05/02/16 | 619 | 622 | ||||||
| Harvey Gulf Int’l Marine, Term Loan B | ||||||||
| 5.500%, 06/18/20 | 1,328 | 1,303 | ||||||
| KCA Deutag, Term Loan | ||||||||
| 6.250%, 05/15/20 | 214 | 211 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| MEG Energy Corp., Term Loan B - 2013 | ||||||||
| 3.750%, 03/31/20 | $ | 1,153 | $ | 1,145 | ||||
| Obsidian Natural Gas Trust | ||||||||
| 7.000%, 11/02/15 | 587 | 588 | ||||||
| Osum Production Corp., Term Loan B | ||||||||
| 6.500%, 07/31/20 | 1,740 | 1,749 | ||||||
| Pacific Drilling, Term Loan B | ||||||||
| 4.500%, 05/18/18 | 351 | 338 | ||||||
| Paradigm, Term C Loan | ||||||||
| 4.750%, 07/24/19 | 185 | 183 | ||||||
| Petroleum Geo-Services, Term Loan B | ||||||||
| 3.250%, 03/19/21 | 801 | 770 | ||||||
| Philadelphia Energy Solutions, Term Loan | ||||||||
| 6.250%, 04/04/18 | 360 | 340 | ||||||
| Samson Investment Company, Cov-Lite Term Loan | ||||||||
| 5.000%, 09/25/18 | 315 | 303 | ||||||
| Seadrill Operating LP, Term Loan B | ||||||||
| 4.000%, 02/21/21 | 1,382 | 1,313 | ||||||
| Sheridan Production Partners, Term Loan I-A | ||||||||
| 4.250%, 10/01/19 | 9 | 9 | ||||||
| Sheridan Production Partners, Term Loan II-A | ||||||||
| 4.250%, 12/16/20 | 38 | 37 | ||||||
| Sheridan Production Partners, Term Loan II-M | ||||||||
| 4.250%, 12/16/20 | 14 | 14 | ||||||
| Sheridan Production Partners, Term Loan II-SIP | ||||||||
| 4.250%, 12/16/20 | 270 | 267 | ||||||
| Sheridan Production Partners, Term Loan I-M | ||||||||
| 4.250%, 10/01/19 | 6 | 5 | ||||||
| Sheridan Production Partners, Term Loan I-SIP | ||||||||
| 4.250%, 10/01/19 | 69 | 67 | ||||||
| Southcross Holdings Borrower LP, Term Loan B | ||||||||
| 6.000%, 07/29/21 | 180 | 179 | ||||||
| Templar Energy LLC, Second Lien | ||||||||
| 8.000%, 11/25/20 | 4,225 | 4,093 | ||||||
| USIC Holdings Inc., Term Loan | ||||||||
| 4.000%, 07/10/20 | 188 | 183 | ||||||
| Vantage Drilling Co. (Offshore), Term Loan | ||||||||
| 5.000%, 10/25/17 | 585 | 560 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 93
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Vantage Drilling Co. (Offshore), Term Loan B (2013) | ||||||||
| 5.750%, 03/28/19 | $ | 496 | $ | 475 | ||||
| Western Refining, Term Loan B | ||||||||
| 4.250%, 11/12/20 | 720 | 716 | ||||||
| Total Energy | 28,878 | |||||||
| Financial [1.0%] | ||||||||
| Alliant Holdings Inc., Term Loan | ||||||||
| 4.250%, 12/07/19 | 292 | 287 | ||||||
| American Capital Holdings, Inc., Term Loan B - 2017 | ||||||||
| 3.500%, 08/22/17 | 381 | 377 | ||||||
| Clipper Acquisitions (aka TCW), Term Loan | ||||||||
| 3.000%, 12/20/19 | 221 | 216 | ||||||
| Compass Investors Inc. (USI), Term Loan | ||||||||
| 4.250%, 12/27/19 | 349 | 342 | ||||||
| Delos, Term Loan B | ||||||||
| 3.500%, 03/06/21 | 370 | 365 | ||||||
| Grosvenor Capital Mngt Hlgs LLP, Cov-Lite Term Loan | ||||||||
| 3.750%, 01/04/21 | 248 | 245 | ||||||
| Hub International Holdings, Initial Term Loan | ||||||||
| 4.250%, 10/02/20 | 351 | 343 | ||||||
| Ion Trading Technologies, Term Loan | ||||||||
| 4.500%, 06/04/21(H) | 2,000 | 2,514 | ||||||
| iStar Financial Inc., Term Loan A-2 - 2012 | ||||||||
| 7.000%, 03/19/17 | 142 | 146 | ||||||
| JSC BTA Bank | ||||||||
| 4.728%, 09/30/13(B) | 5,967 | 5,669 | ||||||
| Nuveen Investments Inc., Second Lien | ||||||||
| 6.500%, 02/28/19 | 430 | 430 | ||||||
| Nuveen Investments Inc., Term Loan | ||||||||
| 4.155%, 05/13/17 | 710 | 708 | ||||||
| RCS Capital Corporation, Term Loan | ||||||||
| 6.500%, 04/29/19 | 523 | 525 | ||||||
| SAM Finance (Santander), Cov-Lite Term Loan | ||||||||
| 4.250%, 12/17/20 | 581 | 577 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Starwood Property Trust, Inc., Term Loan | ||||||||
| 3.500%, 04/17/20 | $ | 450 | $ | 442 | ||||
| Total Financial | 13,186 | |||||||
| Food and Drug [0.5%] | ||||||||
| Albertsons, LLC, Term Loan B-2 | ||||||||
| 4.750%, 03/21/19 | 1,591 | 1,583 | ||||||
| Albertsons, LLC, Term Loan B-3 | ||||||||
| 5.000%, 08/09/19 | 320 | 318 | ||||||
| Albertsons, LLC, Term Loan B-4 | ||||||||
| 4.500%, 08/25/21 | 300 | 298 | ||||||
| Dunkin’ Brands, Term B3 | ||||||||
| 3.250%, 02/14/20 | 435 | 423 | ||||||
| 3.250%, 02/14/20 | 468 | 455 | ||||||
| New Albertsons’s, Inc., Term Loan | ||||||||
| 4.750%, 06/27/21 | 550 | 540 | ||||||
| Rite Aid Corporation, Second Lien - Tranche 1 Term Loans | ||||||||
| 5.750%, 07/07/20 | 1,085 | 1,097 | ||||||
| Rite Aid Corporation, Second Lien - Tranche 2 Term Loans | ||||||||
| 4.880%, 06/21/21 | 440 | 437 | ||||||
| Rite Aid Corporation, Tranche 7 Term Loan | ||||||||
| 3.500%, 02/21/20 | 330 | 323 | ||||||
| Stater Bros. Markets, Term Loan B | ||||||||
| 4.750%, 05/12/21 | 285 | 284 | ||||||
| Supervalu Inc., Term Loan B - 2013 | ||||||||
| 4.500%, 03/21/19 | 774 | 759 | ||||||
| Total Food and Drug | 6,517 | |||||||
| Food/Tobacco [0.9%] | ||||||||
| Arby’s Restaurant (ARG IH), Term Loan | ||||||||
| 5.000%, 11/15/20 | 298 | 297 | ||||||
| Blue Buffalo, Term Loan B3 | ||||||||
| 4.000%, 08/08/19(H) | 135 | 133 | ||||||
| Burger King, Term Loan B | ||||||||
| 2.500%, 09/24/21 | 1,525 | 1,513 | ||||||
| CEC Entertainment, Inc., Term Loan B | ||||||||
| 4.250%, 02/12/21 | 219 | 212 | ||||||
| Deoleo, Term Loan | ||||||||
| 4.500%, 06/02/21 | 3,000 | 3,625 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 94
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| HJ Heinz, Term Loan B1 | ||||||||
| 3.250%, 06/07/19 | $ | 2,991 | $ | 2,946 | ||||
| HJ Heinz, Term Loan B2 | ||||||||
| 3.500%, 06/05/20 | 2,330 | 2,299 | ||||||
| JBS USA LLC, Term Loan B-2 | ||||||||
| 3.750%, 09/18/20 | 292 | 288 | ||||||
| Landry’s Inc., Term Loan B | ||||||||
| 4.000%, 04/19/18 | 246 | 244 | ||||||
| Pinnacle Foods Group Inc., Incremental Term Loan H | ||||||||
| 3.250%, 04/29/20 | 208 | 203 | ||||||
| Pinnacle Foods Group Inc., Term Loan G | ||||||||
| 3.250%, 04/29/20 | 943 | 922 | ||||||
| Post Holdings Inc., Term Loan B | ||||||||
| 3.750%, 06/02/21 | 289 | 286 | ||||||
| Total Food/Tobacco | 12,968 | |||||||
| Forest Prod/Containers [0.7%] | ||||||||
| Anchor Glass Container Corporation, Term Loan B | ||||||||
| 4.250%, 05/14/21 | 330 | 327 | ||||||
| Ardagh Holdings USA Inc., Incremental Term Loan B | ||||||||
| 4.000%, 12/17/19 | 995 | 980 | ||||||
| Berry Plastics Corp., Cov-Lite Term Loan E | ||||||||
| 3.750%, 01/06/21 | 1,552 | 1,516 | ||||||
| Berry Plastics Corp., Term Loan D | ||||||||
| 3.500%, 02/08/20 | 3,142 | 3,057 | ||||||
| Caraustar Industries, Inc., Term Loan | ||||||||
| 7.500%, 05/01/19 | 142 | 142 | ||||||
| CD&R Millennium LLC (Mauser), Second Lien | ||||||||
| 8.250%, 07/31/22 | 150 | 148 | ||||||
| NewPage Corporation, Term Loan B | ||||||||
| 9.500%, 02/11/21 | 500 | 499 | ||||||
| Oak Tea Inc. | ||||||||
| 0.000%, 07/02/21(H) | 2,000 | 2,502 | ||||||
| Reynolds Group Holdings, Term Loan B - 2013 | ||||||||
| 4.000%, 12/01/18 | 359 | 355 | ||||||
| Total Forest Prod/Containers | 9,526 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Gaming/Leisure [2.4%] | ||||||||
| Amaya, First Lien Term Loan | ||||||||
| 5.000%, 07/29/21 | $ | 515 | $ | 508 | ||||
| Aristocrat (Video Gaming Tech), Term Loan B | ||||||||
| 0.000%, 09/29/21(H) | 1,890 | 1,869 | ||||||
| Bally Technologies, Inc., Term Loan B | ||||||||
| 4.250%, 11/25/20(H) | 1,977 | 1,966 | ||||||
| Belmond Interfin Ltd., Term Loan | ||||||||
| 4.000%, 03/19/21 | 398 | 392 | ||||||
| Boyd Gaming Corp., Term Loan B | ||||||||
| 4.000%, 08/14/20 | 196 | 192 | ||||||
| Caesars Entertainment Op Co. Inc., Prop Co. Term Loan | ||||||||
| 7.000%, 10/11/20 | 1,409 | 1,347 | ||||||
| Caesars Entertainment Op Co. Inc., Term Loan B-4 | ||||||||
| 10.500%, 01/28/15 | 116 | 111 | ||||||
| Caesars Entertainment Op Co. Inc., Term Loan B-6 Extended | ||||||||
| 6.949%, 01/28/18 | 5,092 | 4,638 | ||||||
| Caesars Entertainment Op Co. Inc., Term Loan B7 | ||||||||
| 9.750%, 03/01/17 | 753 | 713 | ||||||
| CCM Merger (Motor City), Term Loan B - new | ||||||||
| 4.500%, 08/06/21 | 1,793 | 1,774 | ||||||
| Clubcorp Club Operations, Term Loan B - 2013 | ||||||||
| 4.000%, 07/24/20(H) | 1,070 | 1,059 | ||||||
| Diamond Resorts Corp., Cov-Lite Term Loan | ||||||||
| 5.500%, 05/09/21 | 1,401 | 1,395 | ||||||
| Four Seasons Holdings Inc., Second Lien | ||||||||
| 6.250%, 12/27/20 | 150 | 150 | ||||||
| Four Seasons Holdings Inc., Term Loan (12/13) | ||||||||
| 3.500%, 06/27/20 | 938 | 920 | ||||||
| Golden Nugget, Inc., Delay Draw | ||||||||
| 5.500%, 11/21/19 | 67 | 67 | ||||||
| Golden Nugget, Inc., Term Loan B | ||||||||
| 5.500%, 11/21/19 | 156 | 157 | ||||||
| Great Wolf Resorts, Term Loan | ||||||||
| 4.500%, 08/06/20 | 242 | 239 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 95
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Hilton Worldwide Finance, LLC, Term Loan B-1 | ||||||||
| 3.500%, 10/26/20 | $ | 5,451 | $ | 5,360 | ||||
| Kasima, LLC, Term Loan B | ||||||||
| 3.250%, 05/17/21 | 888 | 876 | ||||||
| La Quinta Intermediate Holdings, Term Loan B | ||||||||
| 4.000%, 04/14/21 | 610 | 602 | ||||||
| Marina District Finance (Borgata), Cov-Lite Term Loan B | ||||||||
| 6.750%, 08/15/18(H) | 434 | 434 | ||||||
| Mohegan Tribal Gaming, Term Loan B | ||||||||
| 5.500%, 11/19/19 | 223 | 219 | ||||||
| Parques, Term Loan | ||||||||
| 5.071%, 03/26/19 | 3,000 | 3,745 | ||||||
| Pinnacle Entertainment, Term Loan B-2 | ||||||||
| 3.750%, 08/13/20 | 260 | 257 | ||||||
| Playa Resorts Holding, Term Loan B | ||||||||
| 4.000%, 08/09/19 | 188 | 185 | ||||||
| RHP Hotel Properties, LP, Term Loan B | ||||||||
| 3.750%, 01/15/21 | 753 | 747 | ||||||
| Scientific Games Inc., Term Loan B | ||||||||
| 4.250%, 10/18/20 | 149 | 146 | ||||||
| 4.250%, 10/18/20 | 895 | 876 | ||||||
| 4.250%, 10/18/20 | 1,882 | 1,843 | ||||||
| Shingle Springs Tribal, Term Loan B | ||||||||
| 6.250%, 08/29/19 | 155 | 158 | ||||||
| Total Gaming/Leisure | 32,945 | |||||||
| Healthcare [2.0%] | ||||||||
| Accellent Inc., First Lien Term Loan | ||||||||
| 4.500%, 03/12/21 | 318 | 312 | ||||||
| Aenova | ||||||||
| 0.000%, 07/10/20(H) | 1,000 | 1,260 | ||||||
| Allscripts Healthcare Solutions Inc., Term Loan A1 | ||||||||
| 2.910%, 06/28/18 | 463 | 461 | ||||||
| Biomet, Term Loan B-2 | ||||||||
| 3.655%, 07/25/17 | — | — | ||||||
| Carestream Health Holdings, Inc., Term Loan | ||||||||
| 5.000%, 06/05/19 | 478 | 477 | ||||||
| Catalent Pharma, Term Loan | ||||||||
| 4.500%, 05/07/21 | 1,000 | 1,265 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| CDRH (Healogics), Term Loan B | ||||||||
| 5.250%, 07/01/21 | $ | 360 | $ | 356 | ||||
| Community Health Systems, Inc., 2021 Term D Loan | ||||||||
| 4.250%, 01/27/21 | 424 | 422 | ||||||
| Community Health Systems, Inc., Term Loan A - 2019 | ||||||||
| 2.734%, 01/25/19 | 3,867 | 3,821 | ||||||
| ConvaTec Healthcare, Term Loan B | ||||||||
| 4.000%, 12/30/16 | 430 | 426 | ||||||
| DaVita Inc., Term Loan B | ||||||||
| 3.500%, 06/18/21 | 374 | 369 | ||||||
| DPX Holdings B.V., Term Loan B | ||||||||
| 4.250%, 03/11/21(H) | 1,786 | 1,742 | ||||||
| Envision Acquisition Company, LLC, First Lien Term Loan | ||||||||
| 5.750%, 11/04/20 | 168 | 168 | ||||||
| Gesundheits | ||||||||
| 4.750%, 07/25/21(H) | 1,000 | 1,263 | ||||||
| Grifols, Inc., Term Loan B | ||||||||
| 3.157%, 02/27/21 | 2,512 | 2,464 | ||||||
| Hologic Inc., Term Loan B - Refi | ||||||||
| 3.250%, 08/01/19 | 323 | 319 | ||||||
| Iasis Healthcare Corporation, Term Loan B - 2013 | ||||||||
| 4.500%, 05/03/18 | 263 | 262 | ||||||
| IMS Healthcare, Term Loan B - 2021 | ||||||||
| 3.500%, 03/17/21 | 172 | 168 | ||||||
| INC Research Inc., Term Loan B | ||||||||
| 4.250%, 07/12/18 | 552 | 546 | ||||||
| inVentiv Health, Inc., Term B-4 Loan | ||||||||
| 7.750%, 05/15/18 | 475 | 469 | ||||||
| LGC Science Holdings, Term Loan | ||||||||
| 4.099%, 03/12/21(H) | 3,000 | 3,777 | ||||||
| Millennium Laboratories, LLC, Term Loan B | ||||||||
| 5.250%, 04/16/21(H) | 279 | 278 | ||||||
| MultiPlan Inc., Term Loan | ||||||||
| 4.000%, 03/31/21 | 617 | 602 | ||||||
| P2 Lower Acquisition (Progressive), Term Loan | ||||||||
| 5.500%, 10/22/20 | 1,619 | 1,618 | ||||||
| Par Pharmaceuticals, Term B-2 Loan | ||||||||
| 4.000%, 09/30/19 | 980 | 959 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 96
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Regional Care (aka RCHP, Inc.), First Lien Term Loan | ||||||||
| 6.000%, 04/23/19 | $ | 1,212 | $ | 1,211 | ||||
| Salix Pharmaceuticals, Ltd., Term Loan | ||||||||
| 4.250%, 01/02/20 | 457 | 456 | ||||||
| Valeant Pharmaceuticals International, Series C-2 TLB | ||||||||
| 3.750%, 12/11/19 | 111 | 109 | ||||||
| Valeant Pharmaceuticals International, Series D-2 TLB | ||||||||
| 3.750%, 02/13/19 | 309 | 305 | ||||||
| Valeant Pharmaceuticals International, Series E Tranche B Term Loan | ||||||||
| 3.750%, 06/26/20 | 2,556 | 2,522 | ||||||
| Total Healthcare | 28,407 | |||||||
| Housing [0.2%] | ||||||||
| ABC Supply Company, Term Loan B | ||||||||
| 3.500%, 04/16/20 | 1,098 | 1,076 | ||||||
| Continental Building Products LLC, First Lien Term Loan | ||||||||
| 4.250%, 08/28/20 | 481 | 474 | ||||||
| CPG International, Term Loan B | ||||||||
| 4.750%, 09/30/20 | 223 | 222 | ||||||
| QUIKRETE Holdings, Inc., First Lien Term Loan | ||||||||
| 4.000%, 09/28/20 | 271 | 268 | ||||||
| Realogy Corporation, New Term Loan B | ||||||||
| 3.750%, 03/05/20 | 315 | 309 | ||||||
| Total Housing | 2,349 | |||||||
| Industrials [0.3%] | ||||||||
| AHT Cooling Systems, First Lien | ||||||||
| 0.000%, 11/01/20(H) | 1,000 | 1,258 | ||||||
| Delachaux | ||||||||
| 0.000%, 09/25/21(H) | 500 | 812 | ||||||
| Interpipe Ukraine | ||||||||
| 4.273%, 03/06/15(G) | 3,624 | 1,993 | ||||||
| Total Industrials | 4,063 | |||||||
| Information Technology [2.0%] | ||||||||
| Aricent Technologies, Term Loan | ||||||||
| 5.500%, 04/14/21 | 429 | 426 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Arris Group, Inc., Term Loan B | ||||||||
| 3.250%, 04/17/20 | $ | 574 | $ | 565 | ||||
| Avago Technologies Finance, Term Loan B | ||||||||
| 3.750%, 05/06/21 | 1,830 | 1,812 | ||||||
| Avaya Inc., Term B-6 Loans | ||||||||
| 6.500%, 03/31/18 | 1,382 | 1,369 | ||||||
| Blackboard Inc., Term Loan B3 | ||||||||
| 4.750%, 10/04/18 | 637 | 632 | ||||||
| CDW LLC, Term Loan | ||||||||
| 3.250%, 04/29/20 | 1,570 | 1,530 | ||||||
| CompuCom Systems, Inc., Term Loan B | ||||||||
| 4.250%, 05/07/20 | 138 | 132 | ||||||
| Dealertrack Technologies, Inc., Term Loan B | ||||||||
| 3.500%, 02/28/21 | 153 | 150 | ||||||
| Dell Inc., Term Loan B | ||||||||
| 4.500%, 04/29/20 | 3,014 | 2,990 | ||||||
| Dell Inc., Term Loan C | ||||||||
| 3.750%, 10/29/18 | 702 | 693 | ||||||
| Fidji Luxembourg (BC3) S.Ã r.l., Term Loan | ||||||||
| 6.250%, 12/24/20 | 278 | 279 | ||||||
| Freescale Semiconductor, Term B-5 | ||||||||
| 5.000%, 01/15/21 | 233 | 232 | ||||||
| Freescale Semiconductor, Tranche B4 Term Loan | ||||||||
| 4.250%, 02/28/20 | 4,057 | 3,992 | ||||||
| Genesys Telecom, Term Loan B 2013 | ||||||||
| 4.000%, 01/31/20 | 190 | 186 | ||||||
| Infor (US), Term Loan B-3 | ||||||||
| 3.750%, 06/03/20 | 188 | 184 | ||||||
| Infor (US), Term Loan B-5 | ||||||||
| 3.750%, 06/03/20 | 890 | 869 | ||||||
| Internap Network Services, Term Loan | ||||||||
| 6.000%, 11/26/19 | 313 | 312 | ||||||
| iParadigms Holdings LLC, First Lien Term Loan | ||||||||
| 5.000%, 07/23/21 | 255 | 250 | ||||||
| Microsemi Corporation, Term Loan B-1 | ||||||||
| 3.250%, 02/19/20 | 295 | 292 | ||||||
| Nuance Communications, Term Loan | ||||||||
| 2.910%, 08/07/19 | 188 | 183 | ||||||
| Oberthur Technologies, Tranche B-2 Term Loan | ||||||||
| 4.500%, 10/18/19 | 288 | 286 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 97
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| On Semiconductor Corp., Term Loan | ||||||||
| 1.984%, 01/02/18 | $ | 528 | $ | 515 | ||||
| Presidio, Inc., Term Loan - 2014 | ||||||||
| 5.000%, 03/31/17(H) | 162 | 162 | ||||||
| Sophia LP, Term Loan B-1 | ||||||||
| 4.000%, 07/19/18 | 479 | 471 | ||||||
| Southern Graphics Inc., Term Loan - 2013 | ||||||||
| 4.250%, 10/17/19 | 209 | 207 | ||||||
| Spansion LLC, Term Loan B | ||||||||
| 3.750%, 12/19/19 | 267 | 263 | ||||||
| SunGard Data Systems, Inc., Term Loan E | ||||||||
| 4.000%, 03/08/20(H) | 593 | 586 | ||||||
| Technicolor, Term Loan | ||||||||
| 5.500%, 07/11/20 | 3,950 | 3,939 | ||||||
| The Active Network, Inc., First Lien Term Loan | ||||||||
| 5.500%, 11/13/20 | 109 | 108 | ||||||
| Triple Point Group Holdings, Inc., Term Loan B | ||||||||
| 5.250%, 07/10/20 | 189 | 171 | ||||||
| Vertafore, Inc., Term Loan - 2013 | ||||||||
| 4.250%, 10/03/19 | 275 | 273 | ||||||
| Zebra Technologies Corp., Term Loan B | ||||||||
| 0.000%, 09/30/21(H) | 3,585 | 3,558 | ||||||
| Total Information Technology | 27,617 | |||||||
| Insurance [0.3%] | ||||||||
| Asurion Corporation, Incremental Tranche B-1 | ||||||||
| 5.000%, 05/24/19 | 3,716 | 3,694 | ||||||
| Manufacturing [0.5%] | ||||||||
| Alliance Laundry, Term Loan - 2013 | ||||||||
| 5.250%, 12/07/18 | 671 | 663 | ||||||
| Boomerang Tube, Term Loan B | ||||||||
| 11.750%, 10/11/17 | 216 | 190 | ||||||
| Brand Energy & Infrastructure, Term Loan B | ||||||||
| 4.750%, 11/26/20 | 2,278 | 2,268 | ||||||
| Doosan Infracore, Term Loan B | ||||||||
| 4.500%, 05/14/21 | 504 | 503 | ||||||
| Gates Global LLC, Term Loan B | ||||||||
| 4.250%, 07/05/21 | 635 | 623 | ||||||
| Generac Power Systems Inc., Term Loan B | ||||||||
| 3.250%, 06/22/18 | 202 | 198 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Grede Holdings LLC, Term Loan B | ||||||||
| 4.750%, 05/21/21 | $ | 370 | $ | 368 | ||||
| Mirror Bidco Corp. (Dematic), Cov-Lite Term Loan | ||||||||
| 4.250%, 12/28/19 | 295 | 290 | ||||||
| Otter Products, LLC, Term Loan B | ||||||||
| 5.750%, 06/03/20 | 155 | 153 | ||||||
| Signode Industrial Group US Inc., Term Loan B | ||||||||
| 4.000%, 05/01/21 | 348 | 342 | ||||||
| Southwire Company, Term Loan B | ||||||||
| 4.750%, 02/10/21 | 343 | 338 | ||||||
| Utex Industries, First Lien Term Loan | ||||||||
| 5.000%, 05/14/21 | 1,287 | 1,280 | ||||||
| Total Manufacturing | 7,216 | |||||||
| Metals/Minerals [0.6%] | ||||||||
| Arch Coal, Inc., Term Loan B | ||||||||
| 6.250%, 05/16/18 | 808 | 739 | ||||||
| Atkore International, Inc., Term Loan | ||||||||
| 4.500%, 04/09/21 | 359 | 356 | ||||||
| Atlas Iron Limited, Term Loan | ||||||||
| 8.750%, 12/10/17 | 117 | 116 | ||||||
| Fortescue Metals Group (FMG), Cov-Lite Term Loan | ||||||||
| 3.750%, 06/28/19 | 5,999 | 5,867 | ||||||
| Murray Energy, Term Loan | ||||||||
| 5.250%, 12/05/19 | 493 | 491 | ||||||
| Novelis Inc., Term Loan - 2013 | ||||||||
| 3.750%, 03/10/17 | 255 | 252 | ||||||
| Peabody Energy Corp., Term Loan B | ||||||||
| 4.250%, 09/24/20 | 519 | 506 | ||||||
| TMS International, Term Loan B | ||||||||
| 4.500%, 10/16/20 | — | — | ||||||
| Walter Energy Corporation, Term Loan B | ||||||||
| 7.250%, 04/02/18 | 419 | 372 | ||||||
| Total Metals/Minerals | 8,699 | |||||||
| Oil & Gas [0.0%] | ||||||||
| Frac Tech International, Term Loan B | ||||||||
| 5.750%, 04/16/21 | 641 | 641 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 98
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Retail [1.5%] | ||||||||
| Abercrombie & Fitch Management Co., Term Loan B | ||||||||
| 4.750%, 07/30/21 | $ | 1,000 | $ | 991 | ||||
| Capital Automotive LP, Second Lien | ||||||||
| 6.000%, 04/30/20(H) | 1,410 | 1,424 | ||||||
| Capital Automotive LP, Term Loan - 2013 | ||||||||
| 4.000%, 04/10/19 | 1,684 | 1,673 | ||||||
| CWGS Group, LLC, Term Loan | ||||||||
| 5.750%, 02/20/20 | 270 | 270 | ||||||
| HMK Intermediate Hldg (Sleepys), Term Loan | ||||||||
| 5.000%, 03/30/19 | 343 | 338 | ||||||
| Hudson’s Bay Company, Term Loan B | ||||||||
| 4.750%, 11/04/20 | 486 | 485 | ||||||
| J Crew Group Inc., Term Loan B | ||||||||
| 4.000%, 03/05/21(H) | 817 | 775 | ||||||
| JC Penney, Term Loan B | ||||||||
| 6.000%, 05/21/18 | 3,483 | 3,472 | ||||||
| Jo-Ann Stores, Inc., Initial Loans | ||||||||
| 4.000%, 03/16/18 | 625 | 599 | ||||||
| Lands End, Inc., Term Loan B | ||||||||
| 4.250%, 04/04/21 | 1,040 | 1,025 | ||||||
| Michaels Stores, Term Loan B | ||||||||
| 3.750%, 01/28/20 | 356 | 348 | ||||||
| Neiman Marcus (fka Mariposa), New Term Loan | ||||||||
| 4.250%, 10/25/20 | 3,584 | 3,518 | ||||||
| Ollie’s Bargain Outlet, Term Loan B | ||||||||
| 4.750%, 09/28/19 | — | — | ||||||
| Petco Animal Supplies Inc., Term Loan B - 2013 | ||||||||
| 4.000%, 11/24/17 | 373 | 369 | ||||||
| Savers Inc., New Term Loan | ||||||||
| 5.000%, 07/09/19(H) | 82 | 80 | ||||||
| Sears Roebuck Acceptance Corp., Term Loan B | ||||||||
| 5.500%, 06/30/18(H) | 2,203 | 2,140 | ||||||
| The Men’s Wearhouse, Inc., Term Loan B | ||||||||
| 4.500%, 06/18/21 | 715 | 710 | ||||||
| Toys R Us Property Company, Initial Term Loan | ||||||||
| 6.000%, 08/21/19 | 1,397 | 1,341 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Toys R Us-Delaware, Inc., Term Loan | ||||||||
| 6.000%, 09/01/16 | $ | 968 | $ | 945 | ||||
| Toys R Us-Delaware, Inc., Term Loan B-3 | ||||||||
| 5.250%, 05/25/18 | 139 | 129 | ||||||
| Total Retail | 20,632 | |||||||
| Service [2.8%] | ||||||||
| 4L Technologies Inc., Term Loan B | ||||||||
| 5.500%, 05/08/20 | 320 | 318 | ||||||
| Advanced Disposal Services, Term Loan B-2 | ||||||||
| 3.750%, 10/09/19 | 1,223 | 1,189 | ||||||
| Asurion Corporation, Incremental Term Loan B-2 | ||||||||
| 4.250%, 07/08/20 | 1,264 | 1,242 | ||||||
| Asurion Corporation, Second Lien | ||||||||
| 8.500%, 03/03/21 | 1,800 | 1,816 | ||||||
| Asurion Corporation, Term Loan B3 | ||||||||
| 3.750%, 03/03/17 | 150 | 148 | ||||||
| Callcredit Information Group, 1st Lien | ||||||||
| 5.206%, 02/12/21(H) | 3,000 | 4,831 | ||||||
| Ceridian Corporation, Term Loan B-2 | ||||||||
| 4.500%, 05/09/17 | 290 | 286 | ||||||
| DigitalGlobe Inc., Term Loan B | ||||||||
| 3.750%, 01/31/20 | 537 | 531 | ||||||
| Dorna Sports, Term Loan | ||||||||
| 4.305%, 04/30/21(H) | 2,000 | 2,531 | ||||||
| Environmental Resources, Term Loan | ||||||||
| 0.000%, 05/09/22 | 2,000 | 1,985 | ||||||
| 0.000%, 05/07/21 | 3,000 | 2,974 | ||||||
| Evertec Group, LLC, Term Loan A | ||||||||
| 2.700%, 04/17/18 | 563 | 554 | ||||||
| Evertec Group, LLC, Term Loan B | ||||||||
| 3.500%, 04/17/20 | 192 | 189 | ||||||
| First Data Corporation, 2018 New Dollar Term Loan | ||||||||
| 3.655%, 03/23/18 | 4,670 | 4,575 | ||||||
| First Data Corporation, 2018B Second New Term Loan | ||||||||
| 3.655%, 09/24/18 | 805 | 787 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 99
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| First Data Corporation, 2021 Extended Dollar Term Loan | ||||||||
| 4.155%, 03/24/21 | $ | 1,745 | $ | 1,719 | ||||
| Interactive Data Corporation, Term Loan B - 2014 | ||||||||
| 4.750%, 05/02/21 | 1,471 | 1,463 | ||||||
| iQor US Inc., Term Loan B | ||||||||
| 6.000%, 04/01/21 | 1,055 | 960 | ||||||
| Nets Holdings, Term Loan | ||||||||
| 4.250%, 05/04/21 | 3,000 | 3,746 | ||||||
| Omnitracs, Inc., Term Loan | ||||||||
| 4.750%, 11/25/20 | 298 | 297 | ||||||
| Open Text (GXS Group), Term Loan | ||||||||
| 3.250%, 01/16/21 | 267 | 264 | ||||||
| PrePaid Legal Services, Inc., Term Loan B | ||||||||
| 6.250%, 07/01/19(H) | 171 | 171 | ||||||
| Redtop Acquisitions Limited, First Lien Term Loan | ||||||||
| 4.500%, 12/03/20 | 310 | 310 | ||||||
| Redtop Acquisitions Limited, Second Lien | ||||||||
| 8.250%, 06/03/21 | 189 | 190 | ||||||
| Securitas Direct, Term Loan | ||||||||
| 3.769%, 08/30/19(H) | 3,000 | 3,963 | ||||||
| Sedgwick, Inc., First Lien Term Loan | ||||||||
| 3.750%, 03/01/21 | 682 | 660 | ||||||
| Sedgwick, Inc., Second Lien | ||||||||
| 6.750%, 02/28/22 | 260 | 254 | ||||||
| Spin Holdco (Coinmach), Term Loan B | ||||||||
| 4.250%, 11/14/19 | 109 | 107 | ||||||
| STG-Fairway Acquisition - First Advantage, Term Loan B | ||||||||
| 6.250%, 02/28/19 | 286 | 285 | ||||||
| Tervita Corp, Term Loan | ||||||||
| 6.250%, 05/14/18 | 199 | 198 | ||||||
| W3 Co. (Total Safety), Term Loan B | ||||||||
| 5.750%, 03/13/20 | 108 | 108 | ||||||
| Total Service | 38,651 | |||||||
| Sovereign [0.6%] | ||||||||
| Arab Republic of Egypt | ||||||||
| 4.479%, 01/04/21(D) (G) | 3,205 | 2,793 | ||||||
| Tanzania Term Loan | ||||||||
| 6.130%, 03/03/20 | 4,000 | 3,990 | ||||||
| Total Sovereign | 6,783 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Telecommunications [2.3%] | ||||||||
| Avaya Inc., Term B3 Extended | ||||||||
| 4.654%, 10/26/17 | $ | 1,168 | $ | 1,112 | ||||
| Cincinnati Bell Inc., Term Loan B - 2013 | ||||||||
| 4.000%, 09/10/20 | 258 | 256 | ||||||
| 4.000%, 09/10/20 | 263 | 261 | ||||||
| 4.000%, 09/10/20(H) | 1,075 | 1,064 | ||||||
| Consolidated Communications Inc., Term Loan | ||||||||
| 4.250%, 12/23/20 | 372 | 371 | ||||||
| Datapipe, Term Loan B | ||||||||
| 5.250%, 03/15/19 | 108 | 106 | ||||||
| Eircom Finco, Term Loan | ||||||||
| 4.589%, 09/30/19(H) | 3,002 | 3,651 | ||||||
| Frontier Communications, Term Loan A | ||||||||
| 3.040%, 10/14/16 | 4,143 | 4,060 | ||||||
| Integra Telecom, Second Lien | ||||||||
| 9.750%, 02/21/20 | 165 | 165 | ||||||
| Integra Telecom, Term B Loan | ||||||||
| 5.250%, 02/22/19 | 408 | 405 | ||||||
| Level 3 Communications, Term Loan B - 2020 | ||||||||
| 4.000%, 01/15/20 | 3,850 | 3,778 | ||||||
| Level 3 Communications, Term Loan B-3 -2019 | ||||||||
| 4.000%, 08/01/19 | 1,015 | 996 | ||||||
| LTS Buyer LLC (Light Tower), Second Lien | ||||||||
| 8.000%, 04/12/21 | 51 | 50 | ||||||
| LTS Buyer LLC (Light Tower), Term Loan | ||||||||
| 4.000%, 04/13/20 | 1,008 | 990 | ||||||
| Numericable U.S. LLC, Term Loan B-1 | ||||||||
| 4.500%, 05/21/20 | 4,708 | 4,671 | ||||||
| Numericable U.S. LLC, Term Loan B-2 | ||||||||
| 4.500%, 05/21/20 | 1,477 | 1,466 | ||||||
| Telenet Communications, Term Loan | ||||||||
| 3.569%, 06/30/23(H) | 3,000 | 3,774 | ||||||
| Telx Group, Term Loan B (2014) | ||||||||
| 4.500%, 04/09/20 | 569 | 558 | ||||||
| WestCorp, Term Loan B-10 | ||||||||
| 3.250%, 06/30/18 | 439 | 429 | ||||||
| Windstream Corp., Term Loan B4 | ||||||||
| 3.500%, 01/10/20 | 314 | 310 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 100
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000) | Value (000) | ||||||
| Zayo Group LLC, Term Loan B - 2012 | ||||||||
| 4.000%, 07/02/19 | $ | 3,357 | $ | 3,304 | ||||
| Total Telecommunications | 31,777 | |||||||
| Transportation [0.6%] | ||||||||
| Allison Transmission Inc., Term Loan B3 (2013) | ||||||||
| 3.750%, 08/23/19 | 1,301 | 1,286 | ||||||
| Chrysler Automotive, 2014 Term Loan B | ||||||||
| 3.250%, 12/31/18 | 1,493 | 1,465 | ||||||
| Chrysler Group | ||||||||
| 4.250%, 05/24/17(H) | 1,000 | 991 | ||||||
| Commercial Barge Line Company, Term Loan B | ||||||||
| 7.500%, 09/22/19 | 296 | 296 | ||||||
| CS Intermedia Holdco 2 LLC, Term Loan | ||||||||
| 4.000%, 04/04/21 | 284 | 281 | ||||||
| FleetPride, Term Loan B | ||||||||
| 5.250%, 11/15/19 | 211 | 209 | ||||||
| Key Safety Systems, Inc., First Lien Term Loan | ||||||||
| 4.750%, 07/25/21 | 185 | 184 | ||||||
| Navios Maritime Partners LP, Term Loan B | ||||||||
| 5.250%, 06/27/18 | 351 | 353 | ||||||
| Navistar, Tranche B Term Loan | ||||||||
| 5.750%, 08/17/17 | 300 | 300 | ||||||
| Remy International, Term Loan - 2013 | ||||||||
| 4.250%, 03/05/20 | 432 | 428 | ||||||
| Schaeffler Finance BV, Term Loan E | ||||||||
| 3.750%, 05/15/20 | 1,170 | 1,159 | ||||||
| Tower Auto Holdings, Term Loan B - 2020 | ||||||||
| 4.000%, 04/23/20 | 222 | 218 | ||||||
| Travelport, Term Loan B | ||||||||
| 6.000%, 09/02/21 | 380 | 379 | ||||||
| U.S. Shipping Corp., Term Loan B | ||||||||
| 5.500%, 04/11/18 | 220 | 220 | ||||||
| Visteon Corporation, Term Loan B | ||||||||
| 3.500%, 04/09/21 | 534 | 524 | ||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Wabash National Corporation, Term Loan | ||||||||
| 4.500%, 05/08/19 | $ | 143 | $ | 142 | ||||
| Total Transportation | 8,435 | |||||||
| Utility [0.8%] | ||||||||
| Astoria Generating Co. Acquisition LLC, Term Loan | ||||||||
| 9.250%, 10/26/17 | 263 | 268 | ||||||
| Bronco Midstream Funding, LLC, Term Loan B | ||||||||
| 5.000%, 08/15/20 | 736 | 735 | ||||||
| Calpine, Construction TL B1 (2020) | ||||||||
| 3.000%, 05/03/20 | 148 | 143 | ||||||
| Calpine, Construction TL B2 (2022) | ||||||||
| 3.250%, 01/31/22 | 1,091 | 1,059 | ||||||
| Calpine, Term Loan B3 | ||||||||
| 4.000%, 09/27/19 | 1,565 | 1,548 | ||||||
| Calpine, Term Loan B4 | ||||||||
| 4.000%, 10/31/20 | 1,146 | 1,133 | ||||||
| Dynegy, Inc., Term Loan B-2 | ||||||||
| 4.000%, 04/23/20 | 127 | 126 | ||||||
| EFS Cogen Holdings I LLC, Term Loan | ||||||||
| 3.750%, 12/17/20 | 470 | 467 | ||||||
| Empire Generating Co., LLC, Term Loan B | ||||||||
| 5.250%, 03/12/21 | 1,567 | 1,548 | ||||||
| Empire Generating Co., LLC, Term Loan C | ||||||||
| 5.250%, 03/12/21 | 110 | 108 | ||||||
| ExGen Renewables I, LLC, Term Loan | ||||||||
| 5.250%, 02/06/21 | 397 | 399 | ||||||
| La Frontera Generation LLC, Term Loan B | ||||||||
| 4.500%, 09/30/20 | 1,063 | 1,049 | ||||||
| Power Buyer, LLC, Delay Draw | ||||||||
| 4.250%, 05/06/20(H) | 65 | 64 | ||||||
| Power Buyer, LLC, Second Lien | ||||||||
| 8.250%, 11/06/20 | 180 | 175 | ||||||
| Power Buyer, LLC, Term Loan | ||||||||
| 4.250%, 05/06/20 | 524 | 512 | ||||||
| Texas Competitive Electric, Extended Term Loan | ||||||||
| 4.650%, 10/10/17 | 750 | 554 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 101
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount/ Acquisition Cost (000) | Value (000) | ||||||
| TPF Generation Holdings, Term Loan B - 2013 | ||||||||
| 4.750%, 12/31/17 | $ | 919 | $ | 891 | ||||
| TPF II, First Lien Term Loan | ||||||||
| 6.500%, 08/21/19 | 180 | 183 | ||||||
| Viva Alamo LLC, Term Loan B | ||||||||
| 4.750%, 02/22/21 | 239 | 236 | ||||||
| Total Utility | 11,198 | |||||||
| Wireless Communications [0.2%] | ||||||||
| Aircell Business Aviation Services LLC (GOGO), Term Loan - B-2 | ||||||||
| 7.500%, 03/21/18 | 229 | 231 | ||||||
| nTelos, Term Loan B | ||||||||
| 5.750%, 11/09/19 | 933 | 929 | ||||||
| SBA Senior Finance, Tranche B-1 Term Loan | ||||||||
| 3.250%, 03/24/21 | 648 | 634 | ||||||
| Syniverse Technologies, Inc., Old Term Loan B | ||||||||
| 4.000%, 04/23/19 | 775 | 759 | ||||||
| Syniverse Technologies, Inc., Tranche B Term Loan | ||||||||
| 4.000%, 04/23/19 | 887 | 869 | ||||||
| Total Wireless Communications | 3,422 | |||||||
| Total Loan Participations | ||||||||
| (Cost $419,942) | 411,247 | |||||||
| Life Settlement Contracts [9.4%] (G) (I) (J) | ||||||||
| American General Life #460L, | ||||||||
| Acquired 05/30/2014* | 303 | 297 | ||||||
| American General Life #508L, | ||||||||
| Acquired 05/30/2014* | 2,595 | 1,789 | ||||||
| American General Life #634L, | ||||||||
| Acquired 05/30/2014* | 530 | 417 | ||||||
| AXA Equitable Life #0474, | ||||||||
| Acquired 11/04/2013* | 7,290 | 9,953 | ||||||
| AXA Equitable Life #0932, | ||||||||
| Acquired 11/04/2013* | 1,014 | 3,400 | ||||||
| AXA Equitable Life #1600, | ||||||||
| Acquired 05/30/2014* | 1,436 | 1,401 | ||||||
| AXA Equitable Life #1616, | ||||||||
| Acquired 05/30/2014* | 3,254 | 3,034 | ||||||
| AXA Equitable Life #1898, | ||||||||
| Acquired 11/04/2013* | 441 | 224 | ||||||
| AXA Equitable Life #4496, | ||||||||
| Acquired 11/04/2013* | 115 | 605 | ||||||
| Description | Acquisition Cost (000) | Value (000) | ||||||
| AXA Equitable Life #7233, | ||||||||
| Acquired 11/04/2013* | $ | 395 | $ | 1,021 | ||||
| AXA Equitable Life #7578, | ||||||||
| Acquired 11/04/2013* | 2,104 | 1,804 | ||||||
| AXA Equitable Life #7857, | ||||||||
| Acquired 11/04/2013* | 2,297 | 4,082 | ||||||
| AXA Equitable Life #8538, | ||||||||
| Acquired 11/04/2013* | 1,333 | 2,139 | ||||||
| AXA Equitable Life #9345, | ||||||||
| Acquired 11/04/2013* | 143 | 187 | ||||||
| Guardian Insurance #0346, | ||||||||
| Acquired 11/04/2013* | 646 | 2,658 | ||||||
| ING #3394, | ||||||||
| Acquired 05/30/2014* | 3,687 | 3,372 | ||||||
| ING Reliastar #1234, | ||||||||
| Acquired 12/05/2013* | 1,067 | 2,377 | ||||||
| ING Reliastar #1649, | ||||||||
| Acquired 12/05/2013* | 61 | 1,086 | ||||||
| ING Reliastar #4842, | ||||||||
| Acquired 11/20/2013* | 921 | 3,292 | ||||||
| ING Reliastar #776H, | ||||||||
| Acquired 05/30/2014* | 1,518 | 1,402 | ||||||
| John Hancock #0430, | ||||||||
| Acquired 05/30/2014* | 2,418 | 2,687 | ||||||
| John Hancock #0801, | ||||||||
| Acquired 05/30/2014* | 1,564 | 1,689 | ||||||
| John Hancock #1929, | ||||||||
| Acquired 05/30/2014* | 3,813 | 4,099 | ||||||
| John Hancock #2223, | ||||||||
| Acquired 11/19/2013* | 1,279 | 2,258 | ||||||
| John Hancock #5072, | ||||||||
| Acquired 05/30/2014* | 1,409 | 1,416 | ||||||
| John Hancock #5080, | ||||||||
| Acquired 11/19/2013* | 313 | 1,503 | ||||||
| John Hancock #5885, | ||||||||
| Acquired 05/30/2014* | 894 | 886 | ||||||
| John Hancock #6686, | ||||||||
| Acquired 05/30/2014* | 3,035 | 2,142 | ||||||
| John Hancock #6912, | ||||||||
| Acquired 05/30/2014* | 1,065 | 977 | ||||||
| Lincoln Benefit Life #9330, | ||||||||
| Acquired 05/30/2014* | 5,482 | 4,921 | ||||||
| Lincoln National #4654, | ||||||||
| Acquired 05/30/2014* | 721 | 527 | ||||||
| Lincoln National #9239, | ||||||||
| Acquired 05/30/2014* | 2,181 | 1,986 | ||||||
| Mass Mutual #1849, | ||||||||
| Acquired 11/05/2013* | 2,926 | 3,293 | ||||||
| Mass Mutual #5167, | ||||||||
| Acquired 05/30/2014* | 63 | 428 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 102
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Acquisition Cost (000) | Value (000) | ||||||
| Mass Mutual #5681, | ||||||||
| Acquired 11/05/2013* | $ | 288 | $ | 1,148 | ||||
| Mass Mutual #5864, | ||||||||
| Acquired 05/30/2014* | 4,668 | 4,568 | ||||||
| Mass Mutual #6620, | ||||||||
| Acquired 11/05/2013* | 222 | 1,214 | ||||||
| Met Life #8MLU, | ||||||||
| Acquired 05/30/2014* | 1,413 | 3,538 | ||||||
| NY Life & Annuity #4757, | ||||||||
| Acquired 05/30/2014* | 3,159 | 3,498 | ||||||
| NY Life Insurance #5673, | ||||||||
| Acquired 05/30/2014* | 3,334 | 3,619 | ||||||
| Pacific Life #7850, | ||||||||
| Acquired 05/30/2014* | 550 | 474 | ||||||
| Penn Mutual #3106, | ||||||||
| Acquired 05/30/2014* | 1,294 | 1,170 | ||||||
| Phoenix Life #5555, | ||||||||
| Acquired 05/30/2014* | 3,946 | 4,241 | ||||||
| Phoenix Life #6161, | ||||||||
| Acquired 05/30/2014* | 3,472 | 3,215 | ||||||
| Phoenix Life #8499, | ||||||||
| Acquired 05/30/2014* | 756 | 341 | ||||||
| Phoenix Life #8509, | ||||||||
| Acquired 05/30/2014* | 761 | 341 | ||||||
| Principal Financial #6653, | ||||||||
| Acquired 10/30/2013* | 306 | 555 | ||||||
| Security Mutual Life #5380, | ||||||||
| Acquired 10/30/2013* | 410 | 872 | ||||||
| Transamerica #0152, | ||||||||
| Acquired 10/28/2013* | 2,916 | 6,158 | ||||||
| Transamerica #1708, | ||||||||
| Acquired 10/28/2013* | 957 | 2,646 | ||||||
| Transamerica #2275, | ||||||||
| Acquired 10/28/2013* | 6,242 | 15,105 | ||||||
| Transamerica #3426, | ||||||||
| Acquired 11/12/2013* | 275 | 575 | ||||||
| Transamerica #8205, | ||||||||
| Acquired 10/28/2013* | 714 | 956 | ||||||
| Union Central Life #4500, | ||||||||
| Acquired 10/30/2013* | 790 | 3,212 | ||||||
| Total Life Settlement Contracts | ||||||||
| (Cost $94,786) | 130,798 | |||||||
| Description | Face Amount (000) | Value (000) | ||||||
| Asset-Backed Securities [1.1%] | ||||||||
| BT SPE (Acquired 07/06/11, Acquisition Cost $10,781,378) | ||||||||
| 9.250%, 06/06/16(G),(J) | $ | 8,373 | $ | 7,886 | ||||
| Start CLO, Ser 2011-7A, Cl A | ||||||||
| 15.231%, 06/09/16(A) (C) | 7,000 | 7,231 | ||||||
| Yapi Kredi Diversified Payment Rights Finance, Ser 2010-1, Cl A | ||||||||
| 0.862%, 11/21/14(C) | 471 | 469 | ||||||
| Total Asset-Backed Securities | ||||||||
| (Cost $16,086) | 15,586 | |||||||
| Sovereign Debt [1.0%] | ||||||||
| Bosnia & Herzegovina Government International Bond | ||||||||
| 1.063%, 12/11/17(C) | 2,111 | 2,323 | ||||||
| Egyptian Paris Club | ||||||||
| 1.996%, 01/01/21(D) (G) | 208 | 179 | ||||||
| Ghana Government Bond | ||||||||
| 14.250%, 07/25/16 | 1,489 | 401 | ||||||
| Islamic Republic of Pakistan | ||||||||
| 7.125%, 03/31/16 | 2,000 | 2,025 | ||||||
| Mozambique EMATUM Finance 2020 BV | ||||||||
| 6.305%, 09/11/20 | 3,000 | 3,011 | ||||||
| Republic of Angola | ||||||||
| 6.597%, 12/06/20 | 7,000 | 6,983 | ||||||
| Total Sovereign Debt | ||||||||
| (Cost $15,551) | 14,922 | |||||||
| Convertible Bonds [0.9%] | ||||||||
| Coal Mining [0.0%] | ||||||||
| Enercoal Resources Pte | ||||||||
| 9.250%, 08/05/14(B) | 300 | 135 | ||||||
| Diversified Minerals [0.1%] | ||||||||
| African Minerals | ||||||||
| 8.500%, 02/10/17 | 4,000 | 1,200 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 103
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| Description | Face Amount (000)/Number of Warrants | Value (000) | ||||||
| Food, Beverage & Tobacco [0.1%] | ||||||||
| CEDC Finance International | ||||||||
| 10.000%, 04/30/18 | $ | 1,450 | $ | 1,233 | ||||
| Gold Mining [0.1%] | ||||||||
| Petropavlovsk 2010 | ||||||||
| 4.000%, 02/18/15 | 800 | 614 | ||||||
| Medical Products & Services [0.1%] | ||||||||
| Bio City Development B.V | ||||||||
| 8.000%, 07/06/18(B) (G) | 1,000 | 850 | ||||||
| Metal-Iron [0.0%] | ||||||||
| London Mining Jersey | ||||||||
| 12.000%, 02/15/16(G) | 1,500 | 675 | ||||||
| Miscellaneous Business Services [0.3%] | ||||||||
| DP World | ||||||||
| 1.750%, 06/19/24 | 3,800 | 4,026 | ||||||
| Miscellaneous Manufacturing [0.1%] | ||||||||
| TMK Bonds | ||||||||
| 5.250%, 02/11/15 | 1,000 | 987 | ||||||
| Petroleum & Fuel Products [0.1%] | ||||||||
| Salamander Energy | ||||||||
| 5.000%, 03/30/15 | 2,000 | 1,993 | ||||||
| Power Conv/Supply Equip [0.0%] | ||||||||
| Suzlon Energy | ||||||||
| 5.750%, 01/16/16(E) | 772 | 578 | ||||||
| Total Convertible Bonds | ||||||||
| (Cost $16,305) | 12,291 | |||||||
| Warrants [0.4%] | ||||||||
| Central Bank of Nigeria, | ||||||||
| Expires 11/15/20* | 33,250 | 5,287 | ||||||
| Gulf Keystone Petro, | ||||||||
| Expires 04/18/17* | 661,000 | 244 | ||||||
| Total Warrants | ||||||||
| (Cost $5,896) | 5,531 | |||||||
| Description | Face Amount (000)/Shares | Value (000) | ||||||
| Mortgage-Backed Securities [0.1%] | ||||||||
| Russian Mortgage Backed Security | ||||||||
| 1.152%, 05/15/34(G) | $ | 962 | $ | 948 | ||||
| Sealane Trade Finance, Ser 2011-1X, Cl A | ||||||||
| 14.223%, 02/12/16(C) | 1,000 | 1,007 | ||||||
| Total Mortgage-Backed Securities | ||||||||
| (Cost $1,919) | 1,955 | |||||||
| Common Stock [0.0%] | ||||||||
| Energy [0.0%] | ||||||||
| Aventine Renewable Energy Holdings *(G) | 3,836 | 34 | ||||||
| Lone Pine Resource *(G) (J) | 9,355 | — | ||||||
| Lone Pine Resource A *(G) (J) | 9,355 | 18 | ||||||
| Total Energy | 52 | |||||||
| Services [0.0%] | ||||||||
| A’Ayan Leasing *(J) | 1,113,750 | 225 | ||||||
| Total Common Stock | ||||||||
| (Cost $477) | 277 | |||||||
| Short-Term Investment [5.3%] | ||||||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 73,874,621 | 73,875 | ||||||
| Total Short-Term Investment | ||||||||
| (Cost $73,875) | 73,875 | |||||||
| Total Investments [99.2%] | ||||||||
| (Cost $1,375,551) | $ | 1,379,822 | ||||||
Percentages are based on Net Assets of $1,391,497 (000).
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 104
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (continued)
| * | Non-income producing security. |
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| (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 September 30, 2014, the value of these securities amounted to $156,910 (000), representing 11.3% of the net assets of the Fund. |
| (B) | In default on interest payments. Rate shown represents the last coupon rate prior to default. |
| (C) | Floating Rate Security — The rate reported is the rate in effect on September 30, 2014. |
| (D) | Rate shown is the effective yield at time of purchase. |
| (E) | Step Bond — The rate reported is the rate in effect on September 30, 2014. The coupon on a step bond changes on a specific date. |
| (F) | Payment in Kind. |
| (G) | Security is considered illiquid. The total market value of such security as of September 30, 2014 was $157,624 (000) and represented 11.3% of net assets of the Fund. |
| (H) | Unsettled bank loan. |
| (I) | Security is considered restricted. The total market value of such security as of September 30, 2014 was $130,798 (000) and represented 9.4% of Net Assets of the Fund. |
| (J) | Security fair valued using methods determined in good faith by the Fair Value Committee designated by the Board of Trustees. The total market value of such security as of September 30, 2014 was $142,134 (000) and represented 10.2% of net assets of the Fund. |
ARM — Adjustable Rate Mortgage
CAD — Canadian Dollar
CHF — Swiss Franc
Cl — Class
EUR — Euro
GBP — British Pound Sterling
LLC — Limited Liability Corporation
LP — Limited Partnership
MTN — Medium Term Note
NOK — Norwegian Krone
NY — New York
PIK — Payment-in Kind
PLC — Public Limited Company
REIT — Real Estate Investment Trust
Ser — Series
SPE — Special Purpose Entity
USD — United States Dollar
Amounts designated as “—” are either $0 or have been rounded to $0.
A list of the open forward foreign currency contracts held by the Fund at September 30, 2014, is as follows:
| Settlement Date | Currency to Deliver (000) | Currency to Receive (000) | Unrealized Appreciation (Depreciation) (000) | |||||||||||
| 10/14/2014 | USD | 1,841 | EUR | 1,390 | $ | (85 | ) | |||||||
| 10/14/2014 | EUR | 66,713 | USD | 85,626 | 1,338 | |||||||||
| 10/14/2014 | GBP | 18,696 | USD | 30,652 | 355 | |||||||||
| 1/12/2015 | CHF | 2,229 | USD | 2,570 | 159 | |||||||||
| 4/30/2015 | NOK | 26,729 | USD | 4,410 | 280 | |||||||||
| $ | 2,047 | |||||||||||||
A list of the counterparties for the outstanding forward foreign currency contracts held by the Fund at September 30, 2014, is as follows:
| Counterparty | Currency to Deliver (000) | Currency to Receive (000) | Unrealized Appreciation (000) | |||||||||
| US Bank | $ | (122,968 | ) | $ | 125,015 | $ | 2,047 | |||||
For the year ended September 30, 2014, the total amount of all open forward foreign currency contracts, as presented in the table above, are representative of the volume of activity for this derivative type during the year.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Corporate Bonds | $ | — | $ | 713,175 | $ | 165 | $ | 713,340 | ||||||||
| Loan Participations | — | 405,247 | 6,000 | 411,247 | ||||||||||||
| Life Settlement Contracts | — | — | 130,798 | 130,798 | ||||||||||||
| Asset-Backed Securities | — | 7,700 | 7,886 | 15,586 | ||||||||||||
| Sovereign Debt | — | 14,743 | 179 | 14,922 | ||||||||||||
| Convertible Bonds | — | 12,291 | — | 12,291 | ||||||||||||
| Warrants | 5,287 | 244 | — | 5,531 | ||||||||||||
| Mortgage-Backed Securities | — | 1,955 | — | 1,955 | ||||||||||||
| Common Stock | — | 259 | 18 | 277 | ||||||||||||
| Short-Term Investment | 73,875 | — | — | 73,875 | ||||||||||||
| Total Investments in Securities | $ | 79,162 | $ | 1,155,614 | $ | 145,046 | $ | 1,379,822 | ||||||||
| Other Financial Instruments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Forwards Contracts* | ||||||||||||||||
| Unrealized Appreciation | $ | — | $ | 2,132 | $ | — | $ | 2,132 | ||||||||
| Unrealized Depreciation | — | (85 | ) | — | (85 | ) | ||||||||||
| Total Other Financial Instruments | $ | — | $ | 2,047 | $ | — | $ | 2,047 | ||||||||
| * | Forwards contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 105
consolidated schedule of investments
September 30, 2014
City National Rochdale Fixed Income Opportunities Fund (concluded)
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value (000) as of September 30, 2014:
Investments in Loan Participations | Investments in Life Settlement Contracts | Investments in Sovereign Debt | ||||||||||
| Beginning balance as of October 1, 2013 | $ | 995 | $ | — | $ | 234 | ||||||
| Accrued discounts/ premiums | (5 | ) | — | 5 | ||||||||
| Realized gain/(loss) | 2 | — | 9 | |||||||||
| Change in unrealized appreciation/(depreciation) | (1 | ) | 36,012 | (25 | ) | |||||||
| Purchases/Reorganizations | 6,000 | 94,786 | — | |||||||||
| Sales/paydowns | (991 | ) | — | (44 | ) | |||||||
| Transfers into Level 3 | — | — | — | |||||||||
| Transfers out of Level 3 | — | — | — | |||||||||
| Ending balance as of September 30, 2014 | 6,000 | $ | 130,798 | $ | 179 | |||||||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | — | $ | 36,012 | $ | 15 | ||||||
| Investments in Asset-Backed Securities | Investments in Mortgage-Backed Securities | Investments in Corporate Bonds | ||||||||||
| Beginning balance as of October 1, 2013 | $ | 18,301 | $ | 1,038 | $ | — | ||||||
| Accrued discounts/ premiums | (102 | ) | — | — | ||||||||
| Realized gain/(loss) | (1 | ) | — | — | ||||||||
| Change in unrealized appreciation/(depreciation) | 285 | 16 | — | |||||||||
| Purchases | — | — | 165 | |||||||||
| Sales/paydowns | (5,437 | ) | — | — | ||||||||
| Transfers into Level 3 | — | — | — | |||||||||
| Transfers out of Level 3 | (5,160 | ) | (1,054 | ) | — | |||||||
| Ending balance as of September 30, 2014 | $ | 7,886 | $ | — | $ | 165 | ||||||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | 285 | $ | 16 | $ | — | ||||||
| Investments in Common Stock | Total | |||||||
| Beginning balance as of October 1, 2013 | $ | — | $ | 20,568 | ||||
| Accrued discounts/ premiums | — | (102 | ) | |||||
| Realized gain/(loss) | — | 10 | ||||||
| Change in unrealized appreciation/(depreciation) | — | 36,287 | ||||||
| Purchases | 18 | 100,969 | ||||||
| Sales/paydowns | — | (6,472 | ) | |||||
| Transfers into Level 3 | — | — | ||||||
| Transfers out of Level 3 | — | (6,214 | ) | |||||
| Ending balance as of September 30, 2014 | $ | 18 | $ | 145,046 | ||||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | — | $ | 36,328 | ||||
The following table summarizes the quantitative inputs and assumptions used for items categorized as material Level 3 investments that are not valued via one or more broker quotes as of September 30, 2014. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.
Fair Value at September 30, 2014 (000) | Valuation Techniques | ||
| BT SPE | $7,886 | Discounted Cash Flow Model based on actual collection level and experienced defaults | |
| Observable Inputs | |||
| Accumulated Collections | |||
| Accumulated Defaults | |||
| Annualized Default Rate | |||
| Accumulated Default Rate | |||
| Pace of Collection Pace of Defaults | |||
| Interest Rates | |||
| Unobservable Inputs | Range | ||
| Projected Default Rates | 5%-12% | ||
| Projected Collection Rates | 90%-100% | ||
| Expected Discount Rates | 9.25% | ||
| Valuation Techniques | |||
| Life Settlement Contracts | 130,798 | Discounted Cash Flow Model | |
| Observable Inputs | |||
| Maturity Value | |||
| Unobservable Inputs | Range | ||
| Discount Rate | 13% | ||
| Expected Maturity (months) | 33-128 |
The unobservable inputs used to determine fair value of recurring Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement. Increases in projected collection rates in isolation, would result in a higher fair value measurement, while increases in expected discount rates, projected default rates, and maturities of life settlement contracts, in isolation would result in a lower fair value measurement.
For the year ended September 30, 2014, there have been no transfers between Level 1 and Level 2 assets and liabilities. For the year ended September 30, 2014, there were transfers between Level 2 and Level 3 assets and liabilities. The transfers into an out of Level 3 were due to changes in the availability of observable inputs to determine fair value. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 106
schedule of investments
September 30, 2014
City National Rochdale Multi-Asset Fund
| Description | Shares | Value (000) | ||||||
| Exchange Traded Funds [57.6%] | ||||||||
| Energy Select Sector SPDR Fund | 10,425 | $ | 945 | |||||
| Industrial Select Sector SPDR | 15,996 | 850 | ||||||
| iShares 7-10 Year Treasury Bond ETF | 25,565 | 2,647 | ||||||
| iShares MSCI World ETF | 20,995 | 1,499 | ||||||
| iShares Russell 3000 Index Fund | 11,740 | 1,371 | ||||||
| Market Vectors Emerging High Yield Bond ETF | 28,430 | 725 | ||||||
| SPDR S&P 500 | 9,318 | 1,836 | ||||||
| SPDR S&P Dividend | 15,112 | 1,132 | ||||||
| Technology Select Sector SPDR | 26,380 | 1,053 | ||||||
| Vanguard FTSE Europe ETF | 25,130 | 1,388 | ||||||
| Vanguard REIT | 11,635 | 836 | ||||||
| Total Exchange Traded Funds | ||||||||
| (Cost $13,646) | 14,282 | |||||||
| Unaffiliated Registered Investment Companies [18.6%] | ||||||||
| Ivy High Income Fund | 165,852 | 1,409 | ||||||
| Oppenheimer Senior Floating Rate Fund | 89,394 | 738 | ||||||
| PIMCO Emerging Markets Bond Fund | 67,979 | 741 | ||||||
| Vanguard Short-Term Bond Index Fund | 81,995 | 860 | ||||||
| Voya Global Real Estate Fund | 45,549 | 875 | ||||||
| Total Unaffiliated Registered Investment Companies | ||||||||
| (Cost $4,590) | 4,623 | |||||||
| Affiliated Registered Investment Companies [21.9%] | ||||||||
| City National Rochdale Corporate Bond Fund, Servicing Class | 148,997 | 1,588 | ||||||
| City National Rochdale Emerging Markets Portfolio | 18,929 | 736 | ||||||
| City National Rochdale Government Bond Fund, Institutional Class | 109,122 | 1,145 | ||||||
| Description | Shares | Value (000) | ||||||
| City National Rochdale High Yield Bond Fund, Institutional Class | 85,046 | $ | 745 | |||||
| City National Rochdale Limited Maturity Fixed Income Fund, Institutional Class | 108,570 | 1,213 | ||||||
| Total Affiliated Registered Investment Companies | ||||||||
| (Cost $5,510) | 5,427 | |||||||
| Short-Term Investments [2.0%] | ||||||||
| City National Rochdale Prime Money Market Fund, Institutional Class, 0.010%** ‡ | 244,498 | 245 | ||||||
| SEI Daily Income Trust, Prime Obligation Fund, Cl A, 0.010%** | 244,191 | 245 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $490) | 490 | |||||||
| Total Investments [100.1%] | ||||||||
| (Cost $24,236) | $ | 24,822 | ||||||
Percentages are based on Net Assets of $24,805 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
Cl — Class
ETF — Exchange Traded Fund
MSCI — Morgan Stanley Capital International
REIT — Real Estate Investment Trust
S&P — Standard & Poor’s
SPDR — Standard & Poor’s Depositary Receipts
As of September 30, 2014, all of the Fund’s investments are Level 1, in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended September 30, 2014, there have been no transfers between any of the fair hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 107
schedule of investments
September 30, 2014
City National Rochdale Dividend & Income Fund
| Description | Shares | Value (000) | ||||||
| Common Stock [97.6%] | ||||||||
| Consumer Discretionary [4.5%] | ||||||||
| Lamar Advertising, Cl A | 60,000 | $ | 2,955 | |||||
| Mattel | 25,500 | 781 | ||||||
| McDonald’s | 33,800 | 3,205 | ||||||
| Regal Entertainment Group, Cl A | 42,300 | 841 | ||||||
| Total Consumer Discretionary | 7,782 | |||||||
| Consumer Staples [27.6%](A) | ||||||||
| Altria Group | 14,250 | 654 | ||||||
| B&G Foods | 70,900 | 1,953 | ||||||
| Campbell Soup | 15,000 | 641 | ||||||
| Clorox | 32,100 | 3,083 | ||||||
| Coca-Cola | 18,000 | 768 | ||||||
| ConAgra Foods | 27,800 | 919 | ||||||
| Dr Pepper Snapple Group | 52,900 | 3,402 | ||||||
| General Mills | 66,680 | 3,364 | ||||||
| Hershey | 14,400 | 1,374 | ||||||
| Imperial Tobacco Group ADR | 23,152 | 2,000 | ||||||
| Kellogg | 40,500 | 2,495 | ||||||
| Kimberly-Clark | 18,200 | 1,958 | ||||||
| Kraft Foods Group | 13,194 | 744 | ||||||
| Lorillard | 83,590 | 5,008 | ||||||
| PepsiCo | 8,000 | 745 | ||||||
| Philip Morris International | 52,600 | 4,387 | ||||||
| Procter & Gamble | 39,149 | 3,278 | ||||||
| Description | Shares | Value (000) | ||||||
| Reynolds American | 10,692 | $ | 631 | |||||
| Sysco | 61,600 | 2,338 | ||||||
| Unilever ADR | 22,200 | 930 | ||||||
| Universal | 38,592 | 1,713 | ||||||
| Vector Group | 139,279 | 3,089 | ||||||
| Wal-Mart Stores | 29,200 | 2,233 | ||||||
| Total Consumer Staples | 47,707 | |||||||
| Energy [13.4%] | ||||||||
| Buckeye Partners | 4,400 | 350 | ||||||
| Chevron | 30,683 | 3,661 | ||||||
| ConocoPhillips | 27,500 | 2,104 | ||||||
| Crestwood Midstream Partners | 60,071 | 1,362 | ||||||
| Enbridge Energy Partners | 15,000 | 583 | ||||||
| Energy Transfer Partners | 3,700 | 237 | ||||||
| Enterprise Products Partners | 72,584 | 2,925 | ||||||
| Exxon Mobil | 25,838 | 2,430 | ||||||
| Kinder Morgan Energy Partners | 5,700 | 532 | ||||||
| NuStar Energy | 11,250 | 742 | ||||||
| Occidental Petroleum | 25,500 | 2,452 | ||||||
| ONEOK | 18,500 | 1,212 | ||||||
| ONEOK Partners | 2,400 | 134 | ||||||
| Plains All American Pipeline | 60,725 | 3,574 | ||||||
| Spectra Energy | 4,753 | 187 | ||||||
| TransCanada | 13,928 | 718 | ||||||
| Total Energy | 23,203 | |||||||
| Financials [5.3%] | ||||||||
| Arthur J Gallagher | 13,200 | 599 | ||||||
| BB&T | 33,000 | 1,228 | ||||||
| Cincinnati Financial | 51,700 | 2,433 | ||||||
| Compass Diversified Holdings | 32,000 | 560 | ||||||
| FirstMerit | 19,571 | 345 | ||||||
| JPMorgan Chase | 12,000 | 723 | ||||||
| Mercury General | 15,000 | 732 | ||||||
| NBT Bancorp | 25,935 | 584 | ||||||
| People’s United Financial | 30,000 | 434 | ||||||
| Prospect Capital | 120,000 | 1,188 | ||||||
| US Bancorp | 10,000 | 418 | ||||||
| Total Financials | 9,244 | |||||||
| Health Care [8.2%] | ||||||||
| Bristol-Myers Squibb | 52,000 | 2,661 | ||||||
| Eli Lilly | 48,400 | 3,139 | ||||||
| GlaxoSmithKline | 32,000 | 1,471 | ||||||
| Johnson & Johnson | 38,200 | 4,072 | ||||||
| Merck | 28,150 | 1,669 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 108
schedule of investments
September 30, 2014
City National Rochdale Dividend & Income Fund (continued)
| Description | Shares | Value (000) | ||||||
| Pfizer | 41,944 | $ | 1,240 | |||||
| Total Health Care | 14,252 | |||||||
| Industrials [4.1%] | ||||||||
| 3M | 4,000 | 567 | ||||||
| Eaton | 39,700 | 2,516 | ||||||
| General Dynamics | 14,500 | 1,843 | ||||||
| General Electric | 37,400 | 958 | ||||||
| Honeywell International | 1,872 | 174 | ||||||
| Lockheed Martin | 6,000 | 1,097 | ||||||
| Total Industrials | 7,155 | |||||||
| Information Technology [0.8%] | ||||||||
| Paychex | 10,000 | 442 | ||||||
| Seagate Technology | 15,000 | 859 | ||||||
| Total Information Technology | 1,301 | |||||||
| Materials [3.6%] | ||||||||
| Dow Chemical | 19,000 | 996 | ||||||
| EI du Pont de Nemours | 32,700 | 2,347 | ||||||
| Nucor | 15,000 | 814 | ||||||
| Olin | 28,000 | 707 | ||||||
| Sonoco Products | 24,000 | 943 | ||||||
| Southern Copper | 12,128 | 360 | ||||||
| Total Materials | 6,167 | |||||||
| REITs [9.9%] | ||||||||
| Apartment Investment & Management, Cl A | 17,229 | 548 | ||||||
| Camden Property Trust | 8,914 | 611 | ||||||
| EPR Properties | 18,200 | 922 | ||||||
| Government Properties Income Trust | 35,000 | 767 | ||||||
| Health Care Property Investors | 33,546 | 1,332 | ||||||
| Health Care REIT | 11,612 | 724 | ||||||
| Healthcare Realty Trust | 17,000 | 403 | ||||||
| Liberty Property Trust | 17,385 | 578 | ||||||
| Mid-America Apartment Communities | 12,000 | 788 | ||||||
| National Health Investors | 20,000 | 1,143 | ||||||
| National Retail Properties, Cl REIT | 36,500 | 1,262 | ||||||
| Plum Creek Timber | 24,000 | 936 | ||||||
| Public Storage | 10,000 | 262 | ||||||
| QTS Realty Trust, Cl A | 8,000 | 243 | ||||||
| Description | Shares | Value (000) | ||||||
| Ramco-Gershenson Properties Trust | 4,000 | $ | 65 | |||||
| Select Income REIT | 50,000 | 1,202 | ||||||
| Senior Housing Properties Trust | 13,000 | 272 | ||||||
| Simon Property Group | 5,000 | 822 | ||||||
| Sovran Self Storage | 10,036 | 746 | ||||||
| Tanger Factory Outlet Centers | 27,984 | 916 | ||||||
| Ventas | 38,632 | 2,393 | ||||||
| Weyerhaeuser | 6,552 | 209 | ||||||
| Total REITs | 17,144 | |||||||
| Shipping & Transportation [0.6%] | ||||||||
| Fly Leasing ADR | 87,370 | 1,119 | ||||||
| Telecommunication Services [6.0%] | ||||||||
| AT&T | 84,500 | 2,978 | ||||||
| Consolidated Communications Holdings | 125,400 | 3,141 | ||||||
| Verizon Communications | 54,067 | 2,703 | ||||||
| Windstream Holdings | 136,128 | 1,467 | ||||||
| Total Telecommunication Services | 10,289 | |||||||
| Utilities [13.6%] | ||||||||
| AGL Resources | 8,000 | 411 | ||||||
| American Electric Power | 25,000 | 1,305 | ||||||
| AmeriGas Partners | 28,200 | 1,286 | ||||||
| Atmos Energy | 15,000 | 716 | ||||||
| Brookfield Infrastructure Partners, Cl Miscellaneous | 20,000 | 760 | ||||||
| Cleco | 4,536 | 218 | ||||||
| Dominion Resources | 15,000 | 1,036 | ||||||
| DTE Energy | 10,000 | 761 | ||||||
| Duke Energy | 31,006 | 2,318 | ||||||
| Entergy | 13,700 | 1,060 | ||||||
| Ferrellgas Partners | 7,300 | 196 | ||||||
| FirstEnergy | 38,000 | 1,276 | ||||||
| Hawaiian Electric Industries | 24,010 | 638 | ||||||
| NiSource | 20,000 | 820 | ||||||
| Northeast Utilities | 37,492 | 1,661 | ||||||
| Northwest Natural Gas | 8,396 | 355 | ||||||
| OGE Energy | 33,600 | 1,247 | ||||||
| Pinnacle West Capital | 28,885 | 1,578 | ||||||
| Portland General Electric | 12,000 | 385 | ||||||
| PPL | 20,000 | 657 | ||||||
| SCANA | 33,000 | 1,637 | ||||||
| Suburban Propane Partners | 11,200 | 499 | ||||||
| UIL Holdings | 11,000 | 389 | ||||||
| United Utilities Group ADR | 17,318 | 452 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 109
schedule of investments
September 30, 2014
City National Rochdale Dividend & Income Fund (continued)
| Description | Shares /Face Amount (000) | Value (000) | ||||||
| Wisconsin Energy | 27,500 | $ | 1,182 | |||||
| Xcel Energy | 20,000 | 608 | ||||||
| Total Utilities | 23,451 | |||||||
| Total Common Stock | ||||||||
| (Cost $127,552) | 168,814 | |||||||
| Preferred Stock [1.1%] | ||||||||
| Financials [0.2%] | ||||||||
| Wells Fargo | 10,000 | 248 | ||||||
| REITs [0.6%] | ||||||||
| Equity Commonwealth | 10,000 | 257 | ||||||
| First Potomac Realty Trust | 10,000 | 261 | ||||||
| National Retail Properties | 10,000 | 259 | ||||||
| Public Storage | 10,000 | 248 | ||||||
| Total REITs | 1,025 | |||||||
| Telecommunication Services [0.3%] | ||||||||
| Qwest | 10,000 | 260 | ||||||
| Verizon Communications | 10,000 | 261 | ||||||
| Total Telecommunication Services | 521 | |||||||
| Total Preferred Stock | ||||||||
| (Cost $1,732) | 1,794 | |||||||
| Asset-Backed Security [0.2%] | ||||||||
| BT SPE (Acquired 07/06/11, Acquisition Cost $551,294) | ||||||||
| 9.250%, 06/06/16(C) (D) | $ | 428 | 403 | |||||
| Total Asset-Backed Security | ||||||||
| (Cost $428) | 403 | |||||||
| Short-Term Investments [0.7%] | ||||||||
| City National Rochdale Government Money Market Fund, 0.010%** ‡ | 593,886 | 594 | ||||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 593,886 | 594 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $1,188) | 1,188 | |||||||
| Total Investments [99.6%] | ||||||||
| (Cost $130,900) | $ | 172,199 | ||||||
Percentages are based on Net Assets of $172,917 (000).
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (A) | The Fund uses more specific categories in following its investment limitations on investment concentrations. Broad industry sectors are used for financial reporting purposes. |
| (B) | Foreign Security. |
| (C) | Security fair valued using methods determined in good faith by the Fair Value Committee designated by the Board of Trustees. The total market value of such security as of September 30, 2014 was $403 (000) and represented 0.2% of net assets of the Fund. |
| (D) | Security is considered illiquid. The total market value of such security as of September 30, 2014 was $403 (000) and represented 0.2% of net assets of the Fund. |
ADR — American Depositary Receipt
Cl — Class
REIT — Real Estate Investment Trust
SPE — Special Purpose Entity
Amounts designated as “—” are either $0 or have been rounded to $0.
The following is a list of the inputs used as of September 30, 2014 in valuing the Fund’s investments carried at value (000):
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stock | $ | 168,814 | $ | — | $ | — | $ | 168,814 | ||||||||
| Preferred Stock | 1,794 | — | — | 1,794 | ||||||||||||
| Asset-Backed Security | — | — | 403 | 403 | ||||||||||||
| Short-Term Investments | 1,188 | — | — | 1,188 | ||||||||||||
| Total Investments in Securities | $ | 171,796 | $ | — | $ | 403 | $ | 172,199 | ||||||||
The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining value (000) as of September 30, 2014:
| Investments in Asset-Backed Security | ||||
| Beginning balance as of October 1, 2013 | $ | 579 | ||
| Accrued discounts/premiums | — | |||
| Realized gain/(loss) | — | |||
| Change in unrealized appreciation/(depreciation) | 10 | |||
| Purchases | — | |||
| Sales/paydowns | (186 | ) | ||
| Transfers into Level 3 | — | |||
| Transfers out of Level 3 | — | |||
| Ending balance as of September 30, 2014 | $ | 403 | ||
| Changes in unrealized gains/(losses) included in earnings related to securities still held at reporting date | $ | 10 | ||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 110
schedule of investments
September 30, 2014
City National Rochdale Dividend & Income Fund (concluded)
The following table summarizes the quantitative inputs and assumptions used for items categorized as material Level 3 investments as of September 30, 2014. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.
Fair Value at September 30, 2014 (000) | Valuation Technique | ||
| BT SPE | $403 | Discounted Cash Flow Model based on actual collection level and experienced defaults | |
| Observable Inputs | |||
| Accumulated Collections | |||
| Accumulated Defaults | |||
| Annualized Default Rate | |||
| Accumulated Default Rate | |||
| Pace of Collection Pace of Defaults | |||
| Interest Rates | |||
| Unobservable Inputs | Range | ||
| Projected Default Rates | 5%-12% | ||
| Projected Collection Rates | 90%-100% | ||
| Expected Discount Rates | 9.25% |
The unobservable inputs used to determine fair value of recurring Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement. Increases in projected collection rates, in isolation, would result in a higher fair value measurement, while increases in expected discount rates and in projected default rates, in isolation, would result in lower fair value measurements.
For the year ended September 30, 2014, the transfers into Level 1 from Level 2 were due to changes in the availability of observable inputs to determine fair value. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 111
schedule of investments
September 30, 2014
City National Rochdale U.S. Core Equity Fund
| Description | Shares | Value (000) | ||||||
| Common Stock [97.5%] | ||||||||
| Aerospace & Defense [4.3%] | ||||||||
| Boeing | 20,100 | $ | 2,561 | |||||
| Hexcel * | 69,300 | 2,751 | ||||||
| Textron | 101,200 | 3,642 | ||||||
| Total Aerospace & Defense | 8,954 | |||||||
| Auto Components [1.3%] | ||||||||
| Magna International | 28,000 | 2,657 | ||||||
| Biotechnology [7.9%] | ||||||||
| Biogen Idec * | 10,700 | 3,540 | ||||||
| Celgene * | 65,900 | 6,246 | ||||||
| Gilead Sciences * | 61,100 | 6,504 | ||||||
| Total Biotechnology | 16,290 | |||||||
| Capital Markets [4.1%] | ||||||||
| Affiliated Managers Group * | 14,400 | 2,885 | ||||||
| Charles Schwab | 67,500 | 1,984 | ||||||
| State Street | 48,900 | 3,599 | ||||||
| Total Capital Markets | 8,468 | |||||||
| Chemicals [2.4%] | ||||||||
| Eastman Chemical | 28,500 | 2,306 | ||||||
| LyondellBasell Industries, Cl A | 24,400 | 2,651 | ||||||
| Total Chemicals | 4,957 | |||||||
| Commercial Banks [2.0%] | ||||||||
| Wells Fargo | 78,400 | 4,067 | ||||||
| Description | Shares | Value (000) | ||||||
| Communications Equipment [1.4%] | ||||||||
| Qualcomm | 38,900 | $ | 2,909 | |||||
| Computers & Peripherals [4.5%] | ||||||||
| Apple | 92,600 | 9,329 | ||||||
| Construction & Engineering [1.3%] | ||||||||
| Quanta Services * | 76,400 | 2,772 | ||||||
| Diversified Financial Services [3.9%] | ||||||||
| Citigroup | 65,000 | 3,368 | ||||||
| JPMorgan Chase | 78,500 | 4,729 | ||||||
| Total Diversified Financial Services | 8,097 | |||||||
| Diversified Telecommunication Services [1.6%] | ||||||||
| Verizon Communications | 65,200 | 3,259 | ||||||
| Energy Equipment & Services [5.1%] | ||||||||
| Halliburton | 97,300 | 6,277 | ||||||
| Schlumberger | 41,700 | 4,240 | ||||||
| Total Energy Equipment & Services | 10,517 | |||||||
| Financial Services [2.2%] | ||||||||
| American Express | 51,900 | 4,543 | ||||||
| Food & Staples Retailing [4.1%] | ||||||||
| Costco Wholesale | 24,400 | 3,058 | ||||||
| CVS Health | 67,300 | 5,357 | ||||||
| Total Food & Staples Retailing | 8,415 | |||||||
| Food Products [3.0%] | ||||||||
| Tyson Foods, Cl A | 100,900 | 3,972 | ||||||
| WhiteWave Foods, Cl A * | 62,200 | 2,260 | ||||||
| Total Food Products | 6,232 | |||||||
| Health Care Equipment & Supplies [2.9%] | ||||||||
| Edwards Lifesciences * | 32,600 | 3,330 | ||||||
| Intuitive Surgical * | 5,700 | 2,632 | ||||||
| Total Health Care Equipment & Supplies | 5,962 | |||||||
| Health Care Providers & Services [1.3%] | ||||||||
| HCA Holdings * | 39,500 | 2,786 | ||||||
| Hotels, Restaurants & Leisure [1.2%] | ||||||||
| Starbucks | 33,600 | 2,535 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 112
schedule of investments
September 30, 2014
City National Rochdale U.S. Core Equity Fund (continued)
| Description | Shares | Value (000) | ||||||
| Household Durables [1.5%] | ||||||||
| PulteGroup | 181,400 | $ | 3,204 | |||||
| Insurance [4.2%] | ||||||||
| American International Group | 79,500 | 4,295 | ||||||
| Prudential Financial | 50,900 | 4,476 | ||||||
| Total Insurance | 8,771 | |||||||
| Internet & Catalog Retail [1.0%] | ||||||||
| Priceline Group * | 1,750 | 2,028 | ||||||
| Internet Software & Services [5.2%] | ||||||||
| Facebook, Cl A * | 51,200 | 4,047 | ||||||
| Google, Cl A * | 11,650 | 6,808 | ||||||
| Total Internet Software & Services | 10,855 | |||||||
| IT Services [3.7%] | ||||||||
| MasterCard, Cl A | 64,000 | 4,731 | ||||||
| Visa, Cl A | 13,400 | 2,859 | ||||||
| Total IT Services | 7,590 | |||||||
| Leisure Equipment & Products [1.7%] | ||||||||
| Polaris Industries | 23,400 | 3,505 | ||||||
| Life Sciences Tools & Services [1.8%] | ||||||||
| Thermo Fisher Scientific | 30,600 | 3,724 | ||||||
| Machinery [3.2%] | ||||||||
| Cummins | 21,400 | 2,824 | ||||||
| Wabtec | 46,600 | 3,777 | ||||||
| Total Machinery | 6,601 | |||||||
| Media [5.0%] | ||||||||
| Comcast, Cl A | 63,200 | 3,399 | ||||||
| Lions Gate Entertainment | 86,600 | 2,855 | ||||||
| Walt Disney | 45,400 | 4,042 | ||||||
| Total Media | 10,296 | |||||||
| Description | Shares | Value (000) | ||||||
| Oil, Gas & Consumable Fuels [5.5%] | ||||||||
| Cabot Oil & Gas | 79,000 | $ | 2,583 | |||||
| Continental Resources * | 55,000 | 3,656 | ||||||
| Exxon Mobil | 28,500 | 2,681 | ||||||
| Occidental Petroleum | 26,400 | 2,538 | ||||||
| Total Oil, Gas & Consumable Fuels | 11,458 | |||||||
| Road & Rail [2.1%] | ||||||||
| Union Pacific | 39,200 | 4,250 | ||||||
| Semiconductors & Semiconductor Equipment [2.8%] | ||||||||
| Applied Materials | 142,900 | 3,088 | ||||||
| NXP Semiconductor * | 39,600 | 2,710 | ||||||
| Total Semiconductors & Semiconductor Equipment | 5,798 | |||||||
| Software [0.9%] | ||||||||
| Adobe Systems * | 27,500 | 1,903 | ||||||
| Specialty Retail [3.2%] | ||||||||
| Home Depot | 43,800 | 4,018 | ||||||
| Lowe’s | 51,900 | 2,747 | ||||||
| Total Specialty Retail | 6,765 | |||||||
| Water Utilities [1.2%] | ||||||||
| American Water Works | 52,900 | 2,550 | ||||||
| Total Common Stock | ||||||||
| (Cost $172,405) | 202,047 | |||||||
| Short-Term Investments [2.4%] | ||||||||
| City National Rochdale Prime Money Market Fund, Institutional Class, 0.010%** ‡ | 2,463,325 | 2,464 | ||||||
| SEI Daily Income Trust, Prime Obligation Fund, Cl A, 0.010%** | 2,463,325 | 2,464 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $4,928) | 4,928 | |||||||
| Total Investments [99.9%] | ||||||||
| (Cost $177,333) | $ | 206,975 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 113
schedule of investments
September 30, 2014
City National Rochdale U.S. Core Equity Fund (concluded)
Percentages are based on Net Assets of $207,210 (000).
| ‡ | Investment in Affiliate. |
| * | Non-income producing security. |
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
Cl — Class
As of September 30, 2014, all of the Fund’s investments are Level 1, in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 114
schedule of investments
September 30, 2014
City National Rochdale Socially Responsible Equity Fund
| Description | Shares | Value (000) | ||||||
| Common Stock [94.7%] | ||||||||
| Automotive [4.5%] | ||||||||
| Ford Motor | 264,000 | $ | 3,904 | |||||
| Johnson Controls | 54,700 | 2,407 | ||||||
| PACCAR | 50,700 | 2,883 | ||||||
| Total Automotive | 9,194 | |||||||
| Banks [2.4%] | ||||||||
| Bank of America | 288,700 | 4,922 | ||||||
| Building & Construction [2.5%] | ||||||||
| Owens Corning | 35,000 | 1,111 | ||||||
| USG * | 142,000 | 3,904 | ||||||
| Total Building & Construction | 5,015 | |||||||
| Chemicals [2.0%] | ||||||||
| EI du Pont de Nemours | 54,500 | 3,911 | ||||||
| Commercial Banks [2.6%] | ||||||||
| BB&T | 137,800 | 5,128 | ||||||
| Communication & Media [2.4%] | ||||||||
| Starz * | 144,000 | 4,764 | ||||||
| Communications Equipment [0.9%] | ||||||||
| Qualcomm | 25,000 | 1,869 | ||||||
| Computer Software [4.0%] | ||||||||
| Microsoft | 87,200 | 4,042 | ||||||
| Oracle | 103,100 | 3,947 | ||||||
| Total Computer Software | 7,989 | |||||||
| Description | Shares | Value (000) | ||||||
| Drugs [2.1%] | ||||||||
| AbbVie | 73,300 | $ | 4,234 | |||||
| Electric Utilities [3.1%] | ||||||||
| Northeast Utilities | 55,300 | 2,450 | ||||||
| Portland General Electric | 119,100 | 3,825 | ||||||
| Total Electric Utilities | 6,275 | |||||||
| Electronic Equipment & Instruments [4.4%] | ||||||||
| Arrow Electronics * | 17,400 | 963 | ||||||
| Cisco Systems | 153,800 | 3,871 | ||||||
| Corning | 201,300 | 3,893 | ||||||
| Total Electronic Equipment & Instruments | 8,727 | |||||||
| Energy Equipment & Services [1.8%] | ||||||||
| National Oilwell Varco | 47,300 | 3,600 | ||||||
| Financial Services [1.4%] | ||||||||
| American Express | 31,600 | 2,766 | ||||||
| FNFV Group * | – | — | ||||||
| Total Financial Services | 2,766 | |||||||
| Food, Beverage & Tobacco [3.0%] | ||||||||
| PepsiCo | 63,500 | 5,911 | ||||||
| Health Care Products & Services [3.4%] | ||||||||
| Cardinal Health | 25,600 | 1,918 | ||||||
| DaVita HealthCare Partners * | 66,700 | 4,878 | ||||||
| Total Health Care Products & Services | 6,796 | |||||||
| Household Furniture & Fixtures [2.4%] | ||||||||
| Stanley Black & Decker | 53,100 | 4,715 | ||||||
| Household Products [3.0%] | ||||||||
| Procter & Gamble | 71,200 | 5,962 | ||||||
| Independent Power Producers & Energy Trader [1.5%] | ||||||||
| Calpine * | 135,900 | 2,949 | ||||||
| Industrial Products & Services [4.1%] | ||||||||
| Eaton | 87,800 | 5,564 | ||||||
| Tyco International | 58,675 | 2,615 | ||||||
| Total Industrial Products & Services | 8,179 | |||||||
| Information Technology [2.0%] | ||||||||
| IBM | 20,800 | 3,949 | ||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 115
schedule of investments
September 30, 2014
City National Rochdale Socially Responsible Equity Fund (concluded)
| Description | Shares | Value (000) | ||||||
| Insurance [14.2%] | ||||||||
| American International Group | 104,600 | $ | 5,651 | |||||
| Berkshire Hathaway, Cl B * | 26,600 | 3,675 | ||||||
| Chubb | 20,500 | 1,867 | ||||||
| FNF Group | 141,600 | 3,928 | ||||||
| Genworth Financial, Cl A * | 341,700 | 4,476 | ||||||
| HCC Insurance Holdings | 80,600 | 3,892 | ||||||
| Symetra Financial | 209,100 | 4,878 | ||||||
| Total Insurance | 28,367 | |||||||
| Medical Products & Services [6.3%] | ||||||||
| Baxter International | 77,400 | 5,555 | ||||||
| Becton Dickinson | 33,800 | 3,847 | ||||||
| Laboratory Corp of America Holdings * | 31,100 | 3,164 | ||||||
| Total Medical Products & Services | 12,566 | |||||||
| Petroleum & Fuel Products [9.4%] | ||||||||
| ConocoPhillips | 44,000 | 3,367 | ||||||
| Denbury Resources | 241,900 | 3,636 | ||||||
| Phillips 66 | 20,900 | 1,699 | ||||||
| Southwestern Energy * | 151,500 | 5,295 | ||||||
| Spectra Energy | 95,700 | 3,757 | ||||||
| Whiting Petroleum * | 12,700 | 985 | ||||||
| Total Petroleum & Fuel Products | 18,739 | |||||||
| Real Estate Investment Trusts [2.2%] | ||||||||
| Redwood Trust | 65,200 | 1,081 | ||||||
| Weyerhaeuser | 106,900 | 3,406 | ||||||
| Total Real Estate Investment Trusts | 4,487 | |||||||
| Real Estate Management & Development [3.4%] | ||||||||
| Brookfield Asset Management, Cl A | 86,900 | 3,907 | ||||||
| Kennedy-Wilson Holdings | 117,400 | 2,813 | ||||||
| Total Real Estate Management & Development | 6,720 | |||||||
| Semi-Conductors [1.7%] | ||||||||
| Broadcom, Cl A | 85,200 | 3,444 | ||||||
| Telephone & Telecommunications [3.0%] | ||||||||
| Verizon Communications | 119,000 | 5,949 | ||||||
| Description | Shares | Value (000) | ||||||
| Transportation Services [1.0%] | ||||||||
| United Parcel Service, Cl B | 19,900 | $ | 1,956 | |||||
| Total Common Stock | ||||||||
| (Cost $175,436) | 189,083 | |||||||
| Short-Term Investment [21.9%] | ||||||||
| AIM STIT-Government TaxAdvantage Portfolio, 0.010%** | 43,677,593 | 43,678 | ||||||
| Total Short-Term Investment | ||||||||
| (Cost $43,678) | 43,678 | |||||||
| Total Investments [116.6%] | ||||||||
| (Cost $219,114) | $ | 232,761 | ||||||
| Percentages are based on Net Assets of $199,593 (000). |
| * | Non-income producing security. |
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
Cl — Class
Amounts designated as “—” are either $0 or have been rounded to $0.
As of September 30, 2014, all of the Fund’s investments are Level 1in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 116
consolidated schedule of investments
September 30, 2014
City National Rochdale Emerging Markets Fund
| Description | Shares | Value (000) | ||||||
| Common Stock [91.0%] | ||||||||
| China [30.9%] | ||||||||
| AAC Technologies Holdings | 1,588,200 | $ | 9,225 | |||||
| Alibaba Group Holding ADR * | 1,000 | 89 | ||||||
| ANTA Sports Products | 3,742,000 | 7,624 | ||||||
| Baidu ADR * | 47,400 | 10,344 | ||||||
| China Pioneer Pharma Holdings | 14,211,000 | 11,237 | ||||||
| China Railway Group, Cl H | 10,796,000 | 5,728 | ||||||
| China State Construction International Holdings | 4,598,000 | 6,834 | ||||||
| CIMC Enric Holdings | 5,556,000 | 5,552 | ||||||
| Fufeng Group | 15,762,000 | 7,795 | ||||||
| Goodbaby International Holdings | 11,561,705 | 4,988 | ||||||
| Great Wall Motor, Cl H | 3,895,500 | 15,126 | ||||||
| Man Wah Holdings | 3,654,000 | 5,374 | ||||||
| New Oriental Education & Technology Group * | 244,000 | 5,661 | ||||||
| Ping An Insurance Group of China, Cl H | 1,322,500 | 9,929 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl H | 1,861,500 | 6,005 | ||||||
| Sunac China Holdings | 11,898,000 | 9,010 | ||||||
| Sunny Optical Technology Group | 7,802,000 | 11,575 | ||||||
| Tencent Holdings | 1,179,500 | 17,545 | ||||||
| Tingyi Cayman Islands Holding | 2,030,000 | 5,333 | ||||||
| Want Want China Holdings | 4,296,000 | 5,356 | ||||||
| XTEP International Holdings | 12,661,500 | 5,740 | ||||||
| Zhejiang Expressway, Cl H | 5,586,000 | 5,676 | ||||||
| ZTE, Cl H | 3,709,187 | 8,226 | ||||||
| Total China | 179,972 | |||||||
| Description | Shares | Value (000) | ||||||
| Hong Kong [9.7%] | ||||||||
| Chaowei Power Holdings | 10,998,000 | $ | 5,581 | |||||
| CPMC Holdings | 6,776,000 | 5,419 | ||||||
| Galaxy Entertainment Group | 1,904,000 | 11,059 | ||||||
| MTR | 1,265,000 | 4,953 | ||||||
| NagaCorp | 17,506,600 | 12,535 | ||||||
| SJM Holdings | 2,574,000 | 4,906 | ||||||
| Skyworth Digital Holdings | 11,807,088 | 6,128 | ||||||
| Xinyi Glass Holdings | 9,674,832 | 6,043 | ||||||
| Total Hong Kong | 56,624 | |||||||
| India [24.6%] [A] | ||||||||
| Amtek Auto | 3,034,666 | 9,908 | ||||||
| CESC | 395,247 | 4,800 | ||||||
| Crompton Greaves | 1,313,394 | 4,277 | ||||||
| Dr. Reddy’s Laboratories ADR | 152,200 | 7,998 | ||||||
| Emami | 719,046 | 8,117 | ||||||
| HDFC Bank | 353,793 | 5,288 | ||||||
| HDFC Bank ADR | 103,500 | 4,821 | ||||||
| ICICI Bank | 63,161 | 1,466 | ||||||
| ICICI Bank ADR | 311,767 | 15,308 | ||||||
| ITC | 853,512 | 5,116 | ||||||
| Kotak Mahindra Bank | 463,470 | 7,603 | ||||||
| McLeod Russel India | 1,041,226 | 4,901 | ||||||
| Mindtree | 324,968 | 6,201 | ||||||
| Sobha Developers | 729,724 | 4,774 | ||||||
| Sun Pharmaceutical Industries | 539,878 | 7,494 | ||||||
| Taro Pharmaceutical Industries * | 62,169 | 9,548 | ||||||
| Tata Global Beverages | 1,996,287 | 5,151 | ||||||
| Tata Motors, Cl A | 915,068 | 5,113 | ||||||
| Tata Motors ADR | 111,800 | 4,887 | ||||||
| Tech Mahindra | 175,827 | 7,088 | ||||||
| United Spirits * | 225,821 | 8,786 | ||||||
| Vardhman Textiles | 609,557 | 4,363 | ||||||
| Total India | 143,008 | |||||||
| Indonesia [7.8%] | ||||||||
| Bank Mandiri Persero | 3,309,100 | 2,736 | ||||||
| Ciputra Development | 44,321,000 | 3,692 | ||||||
| Kalbe Farma | 41,503,100 | 5,790 | ||||||
| Lippo Karawaci | 82,170,961 | 6,339 | ||||||
| Media Nusantara Citra | 24,599,600 | 6,450 | ||||||
| Mitra Adiperkasa | 17,847,700 | 8,056 | ||||||
| Surya Citra Media | 31,093,300 | 9,761 | ||||||
| United Tractors | 1,710,500 | 2,794 | ||||||
| Total Indonesia | 45,618 | |||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 117
consolidated schedule of investments
September 30, 2014
City National Rochdale Emerging Markets Fund (concluded)
| Description | Shares | Value (000) | ||||||
| Malaysia [3.0%] | ||||||||
| Berjaya Sports Toto | 3,133,655 | $ | 3,649 | |||||
| Magnum | 4,164,600 | 3,809 | ||||||
| Malayan Banking | 2,226,580 | 6,760 | ||||||
| My EG Services | 2,870,100 | 3,298 | ||||||
| Total Malaysia | 17,516 | |||||||
| Philippines [7.9%] | ||||||||
| GT Capital Holdings | 454,850 | 10,744 | ||||||
| Jollibee Foods | 2,012,040 | 8,787 | ||||||
| Megaworld | 88,849,426 | 9,958 | ||||||
| Metropolitan Bank & Trust | 2,970,692 | 5,746 | ||||||
| Security Bank | 309,830 | 1,013 | ||||||
| SM Prime Holdings | 25,310,875 | 9,859 | ||||||
| Total Philippines | 46,107 | |||||||
| Singapore [1.5%] | ||||||||
| Raffles Medical Group | 2,828,570 | 8,536 | ||||||
| Thailand [5.1%] | ||||||||
| Krung Thai Bank - Foreign | 8,441,450 | 6,170 | ||||||
| LPN Development | 2,200,000 | 1,472 | ||||||
| LPN Development NVDR | 6,174,501 | 4,132 | ||||||
| Minor International - Foreign | 8,002,550 | 9,132 | ||||||
| PTT Exploration & Production - Foreign | 780,912 | 3,853 | ||||||
| Siam Cement - Foreign | 363,500 | 5,045 | ||||||
| Total Thailand | 29,804 | |||||||
| United States [0.5%] | ||||||||
| Cognizant Technology Solutions, Cl A * | 68,600 | 3,071 | ||||||
| Total Common Stock | ||||||||
| (Cost $449,261) | 530,256 | |||||||
| Participatory Note [0.6%] | ||||||||
| China [0.6%] | ||||||||
| Boci Financial * | 1,085,000 | 3,196 | ||||||
| Total Participatory Note | ||||||||
| (Cost $2,882) | 3,196 | |||||||
| Description | Shares | Value (000) | ||||||
| Short-Term Investments [5.7%] | ||||||||
| City National Rochdale Government Money Market Fund, 0.010%** ‡ | 19,789,220 | $ | 19,789 | |||||
| SEI Daily Income Trust Government Fund, Cl A, 0.020%** | 13,425,957 | 13,426 | ||||||
| Total Short-Term Investments | ||||||||
| (Cost $33,215) | 33,215 | |||||||
| Total Investments [97.3%] | ||||||||
| (Cost $485,358) | $ | 566,667 | ||||||
Percentages are based on Net Assets of $582,490 (000).
| * | Non-income producing security. |
| ** | The rate reported is the 7-day effective yield as of September 30, 2014. |
| ‡ | Investment in Affiliate. |
| (A) | Securities held through a Mauritius Subsidiary (See Note 2). |
ADR — American Depositary Receipt
Cl — Class
NVDR — Non Voting Depository Receipt
As of September 30, 2014, all of the Fund’s investments are Level 1 in accordance with authoritative guidance on fair value measurements and disclosure under U.S. GAAP.
For the year ended September 30, 2014, there have been no transfers between any of the fair value hierarchy levels. 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 118
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CITY NATIONAL ROCHDALE FUNDS | PAGE 119
statements of assets and liabilities (000)
September 30, 2014
| City National Rochdale Government Money Market Fund | City National Rochdale Prime Money Market Fund | City National Rochdale California Tax Exempt Money Market Fund | City National Rochdale Limited Maturity Fixed Income Fund | |||||||||||||
| ASSETS: | ||||||||||||||||
| Cost of securities (including affiliated investments and repurchase agreements) | $ | 4,091,879 | $ | 1,049,230 | $ | 861,647 | $ | 27,390 | ||||||||
| Investments in securities, at value | $ | 3,867,879 | $ | 1,039,230 | $ | 861,647 | $ | 27,435 | ||||||||
| Affiliated investments, at value | — | — | — | 88 | ||||||||||||
| Repurchase agreements, at value | 224,000 | 10,000 | — | — | ||||||||||||
| Cash | — | — | 10,371 | — | ||||||||||||
| Dividend and interest receivable | 821 | 284 | 507 | 178 | ||||||||||||
| Receivable for investment securities sold | — | — | 33,900 | — | ||||||||||||
| Receivable for reimbursement of administration fees (Note 4) | — | — | 16 | — | ||||||||||||
| Receivable for reimbursement of legal fees (Note 4) | — | — | 25 | — | ||||||||||||
| Receivable for reimbursement of transfer agent fees (Note 4) | — | — | 45 | — | ||||||||||||
| Prepaid expenses | 112 | 36 | 25 | 1 | ||||||||||||
| Total Assets | 4,092,812 | 1,049,550 | 906,536 | 27,702 | ||||||||||||
| LIABILITIES: | ||||||||||||||||
| Payable for income distributions | 12 | 6 | 3 | 7 | ||||||||||||
| Payable for capital shares redeemed | — | — | — | 5 | ||||||||||||
| Investment advisory fees payable | 94 | 87 | 80 | 2 | ||||||||||||
| Shareholder servicing and distribution fees payable | 35 | 11 | 5 | 5 | ||||||||||||
| Administrative fees payable | 52 | 18 | — | 9 | ||||||||||||
| Accrued expenses | 378 | 120 | 106 | 19 | ||||||||||||
| Total Liabilities | 571 | 242 | 194 | 47 | ||||||||||||
| Net Assets | $ | 4,092,241 | $ | 1,049,308 | $ | 906,342 | $ | 27,655 | ||||||||
| NET ASSETS: | ||||||||||||||||
| Paid-in Capital (unlimited authorization — $0.01 par value) | $ | 4,092,240 | $ | 1,049,319 | $ | 906,342 | $ | 29,351 | ||||||||
| Distributions in excess of net investment income | — | — | — | (1 | ) | |||||||||||
| Accumulated net realized gain (loss) on investments | 1 | (11 | ) | — | (1,828 | ) | ||||||||||
| Net unrealized appreciation on investments | — | — | — | 133 | ||||||||||||
| Net Assets | $ | 4,092,241 | $ | 1,049,308 | $ | 906,342 | $ | 27,655 | ||||||||
| Institutional Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | — | $ | 53,974,524 | $ | — | $ | 23,034,857 | ||||||||
| Total shares outstanding at end of period | — | 53,974,194 | — | 2,062,941 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | — | $ | 1.00 | $ | — | $ | 11.17 | ||||||||
| Class N Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 3,174,351,318 | $ | 333,463,100 | $ | 623,561,125 | $ | 4,619,744 | ||||||||
| Total shares outstanding at end of period | 3,174,348,080 | 333,524,370 | 623,564,044 | 413,468 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 11.17 | ||||||||
| Class S Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 705,932,267 | $ | 198,237,188 | $ | 81,411,501 | $ | — | ||||||||
| Total shares outstanding at end of period | 705,933,005 | 198,202,147 | 81,407,996 | — | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | — | ||||||||
| Servicing Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 211,957,547 | $ | 463,633,222 | $ | 201,369,348 | $ | — | ||||||||
| Total shares outstanding at end of period | 211,958,673 | 463,711,522 | 201,371,434 | — | ||||||||||||
| 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 120
statements of assets and liabilities (000)
September 30, 2014
City National Rochdale Government Bond Fund | City National Rochdale Corporate Bond Fund | City National Rochdale California Tax Exempt Bond Fund | City National Rochdale Municipal High Income Fund | |||||||||||||
| ASSETS: | ||||||||||||||||
| Cost of securities (including affiliated investments) | $ | 171,596 | $ | 143,468 | $ | 79,875 | $ | 394,456 | ||||||||
| Investments in securities, at value | $ | 169,300 | $ | 143,130 | $ | 78,954 | $ | 376,620 | ||||||||
| Affiliated investments, at value | 2,371 | 2,222 | 2,879 | 30,697 | ||||||||||||
| Dividend and income receivable | 615 | 1,322 | 770 | 6,279 | ||||||||||||
| Cash | — | 16 | — | — | ||||||||||||
| Receivable for capital shares sold | 344 | 470 | 251 | 10,144 | ||||||||||||
| Deferred offering costs | — | — | — | 8 | ||||||||||||
| Prepaid expenses | 4 | 3 | 1 | 2 | ||||||||||||
| Total Assets | 172,634 | 147,163 | 82,855 | 423,750 | ||||||||||||
| LIABILITIES: | ||||||||||||||||
| Payable for income distributions | 13 | 182 | 71 | 866 | ||||||||||||
| Payable for capital shares redeemed | 262 | 95 | — | 82 | ||||||||||||
| Payable for investment securities purchased | — | — | 1,066 | 365 | ||||||||||||
| Investment advisory fees payable | 57 | 38 | 7 | 148 | ||||||||||||
| Shareholder servicing and distribution fees payable | 24 | 31 | 22 | 156 | ||||||||||||
| Administrative fees payable | 11 | 10 | 10 | 14 | ||||||||||||
| Accrued expenses | 33 | 33 | 26 | 68 | ||||||||||||
| Total Liabilities | 400 | 389 | 1,202 | 1,699 | ||||||||||||
| Net Assets | $ | 172,234 | $ | 146,774 | $ | 81,653 | $ | 422,051 | ||||||||
| NET ASSETS: | ||||||||||||||||
| Paid-in Capital (unlimited authorization — $0.01 par value) | $ | 172,345 | $ | 143,748 | $ | 79,381 | $ | 408,987 | ||||||||
| Undistributed net investment income | 2 | 1 | — | 130 | ||||||||||||
| Accumulated net realized gain (loss) on investments | (188 | ) | 1,141 | 314 | 73 | |||||||||||
| Net unrealized appreciation on investments | 75 | 1,884 | 1,958 | 12,861 | ||||||||||||
| Net Assets | $ | 172,234 | $ | 146,774 | $ | 81,653 | $ | 422,051 | ||||||||
| Institutional Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 56,721,690 | $ | — | $ | — | $ | — | ||||||||
| Total shares outstanding at end of period | 5,406,137 | — | — | — | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 10.49 | $ | — | $ | — | $ | — | ||||||||
| Class N Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 2,027,337 | $ | 4,007,720 | $ | 10,955,112 | $ | 201,199,490 | ||||||||
| Total shares outstanding at end of period | 192,921 | 375,490 | 1,019,568 | 18,782,065 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 10.51 | $ | 10.67 | $ | 10.74 | $ | 10.71 | ||||||||
| Servicing Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 113,485,179 | $ | 142,766,149 | $ | 70,698,055 | $ | 220,851,168 | ||||||||
| Total shares outstanding at end of period | 10,820,221 | 13,392,484 | 6,598,222 | 20,608,392 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 10.49 | $ | 10.66 | $ | 10.71 | $ | 10.72 | ||||||||
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 121
statements of assets and liabilities/
consolidated statement of assets and liabilities (000)
September 30, 2014
City National Rochdale High Yield Bond Fund | City National Rochdale Intermediate Fixed Income Fund | City National Rochdale Fixed Income Opportunities Fund | City National Rochdale Multi-Asset Fund | |||||||||||||
| ASSETS: | ||||||||||||||||
| Cost of securities (including affiliated investments) | $ | 101,717 | $ | 207,371 | $ | 1,375,551 | $ | 24,236 | ||||||||
| Investments in securities, at value | $ | 100,807 | $ | 206,936 | $ | 1,379,822 | $ | 19,150 | ||||||||
| Affiliated investments, at value | 856 | 4,176 | — | 5,672 | ||||||||||||
| Cash | 66 | — | 12,940 | 8 | ||||||||||||
Foreign Currency(1) | 3 | — | 1,076 | — | ||||||||||||
| Dividend and income receivable | 1,881 | 1,747 | 17,875 | 20 | ||||||||||||
| Receivable for capital shares sold | 7,377 | 415 | 5,696 | — | ||||||||||||
| Receivable for investment securities sold | 1,524 | — | 13,518 | 746 | ||||||||||||
| Unrealized gain on forward foreign currency contracts | — | — | 2,132 | — | ||||||||||||
| Prepaid expenses | 3 | 3 | 22 | 1 | ||||||||||||
| Total Assets | 112,517 | 213,277 | 1,433,081 | 25,597 | ||||||||||||
| LIABILITIES: | ||||||||||||||||
| Payable for income distributions | 192 | — | — | — | ||||||||||||
| Payable for capital shares redeemed | 10 | 39 | 361 | — | ||||||||||||
| Payable for investment securities purchased | 1,416 | — | 38,376 | 745 | ||||||||||||
| Due to custodian | — | — | 1,198 | — | ||||||||||||
| Unrealized loss on forward foreign currency contracts | — | — | 85 | — | ||||||||||||
| Investment advisory fees payable | 39 | 44 | 464 | 10 | ||||||||||||
| Shareholder servicing and distribution fees payable | 32 | 84 | 575 | 10 | ||||||||||||
| Administrative fees payable | 10 | 11 | 27 | 9 | ||||||||||||
| Accrued expenses | 39 | 51 | 498 | 18 | ||||||||||||
| Total Liabilities | 1,738 | 229 | 41,584 | 792 | ||||||||||||
| Net Assets | $ | 110,779 | $ | 213,048 | $ | 1,391,497 | $ | 24,805 | ||||||||
| NET ASSETS: | ||||||||||||||||
| Paid-in Capital (unlimited authorization — $0.01 par value) | $ | 105,854 | $ | 212,414 | $ | 1,383,520 | $ | 24,682 | ||||||||
| Undistributed net investment income | 6 | 63 | 6,957 | — | ||||||||||||
| Accumulated net realized gain (loss) on investments and foreign currency | 4,973 | (3,170 | ) | 6,130 | (463 | ) | ||||||||||
| Net unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments | (54 | ) | 3,741 | (7,306 | ) | 586 | ||||||||||
| Foreign currencies and translation of other assets and liabilities denominated in foreign currencies | — | — | 2,196 | — | ||||||||||||
| Net Assets | $ | 110,779 | $ | 213,048 | $ | 1,391,497 | $ | 24,805 | ||||||||
| Institutional Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 40,639,232 | $ | 8,784,026 | $ | — | $ | — | ||||||||
| Total shares outstanding at end of period | 4,638,638 | 334,832 | — | — | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 8.76 | $ | 26.23 | $ | — | $ | — | ||||||||
| Class N Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 26,166,220 | $ | 204,264,285 | $ | 1,391,497,057 | $ | 18,760,021 | ||||||||
| Total shares outstanding at end of period | 2,987,540 | 7,786,329 | 51,185,802 | 1,703,544 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 8.76 | $ | 26.23 | $ | 27.19 | $ | 11.01 | ||||||||
| Servicing Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 43,973,503 | $ | — | $ | — | $ | 6,044,807 | ||||||||
| Total shares outstanding at end of period | 5,020,645 | — | — | 548,445 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 8.76 | $ | — | $ | — | $ | 11.02 | ||||||||
| Amounts designated as “—” are either $0 or have been rounded to $0. |
| (1) | Cost of foreign currency $3 (000) and $1,076 (000), respectively. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 122
statements of assets and liabilities/
consolidated statement of assets and liabilities (000)
September 30, 2014
City National Rochdale Dividend & Income Fund | City National Rochdale U.S. Core Equity Fund | City National Rochdale Socially Responsible Fund | City National Rochdale Emerging Markets Fund | |||||||||||||
| ASSETS: | ||||||||||||||||
| Cost of securities (including affiliated investments) | $ | 130,900 | $ | 177,333 | $ | 219,114 | $ | 485,358 | ||||||||
| Investments in securities, at value | $ | 171,605 | $ | 204,511 | $ | 232,761 | $ | 546,878 | ||||||||
| Affiliated investments, at value | 594 | 2,464 | — | 19,789 | ||||||||||||
| Cash | 9 | — | 5 | — | ||||||||||||
Foreign Currency(1) | — | — | — | 19,477 | ||||||||||||
| Dividend and income receivable | 372 | 113 | 117 | 612 | ||||||||||||
| Receivable for investment securities sold | — | 3,523 | — | 2,814 | ||||||||||||
| Receivable for capital shares sold | 555 | 488 | 120 | 1,304 | ||||||||||||
| Prepaid expenses | 3 | 4 | 8 | 8 | ||||||||||||
| Total Assets | 173,138 | 211,103 | 233,011 | 590,882 | ||||||||||||
| LIABILITIES: | ||||||||||||||||
| Payable for capital shares redeemed | 37 | 157 | 2 | 12 | ||||||||||||
| Payable for investment securities purchased | — | 3,540 | 33,300 | 7,566 | ||||||||||||
| Investment advisory fees payable | 68 | 60 | 74 | 417 | ||||||||||||
| Shareholder servicing and distribution fees payable | 72 | 79 | 8 | 244 | ||||||||||||
| Administrative fees payable | 11 | 11 | 10 | 17 | ||||||||||||
| Accrued expenses | 33 | 46 | 24 | 136 | ||||||||||||
| Total Liabilities | 221 | 3,893 | 33,418 | 8,392 | ||||||||||||
| Net Assets | $ | 172,917 | $ | 207,210 | $ | 199,593 | $ | 582,490 | ||||||||
| NET ASSETS: | ||||||||||||||||
| Paid-in Capital (unlimited authorization — $0.01 par value) | $ | 134,389 | $ | 158,361 | $ | 180,561 | $ | 500,996 | ||||||||
| Undistributed (Distributions in excess of) net investment income | (4 | ) | — | — | 2,023 | |||||||||||
| Accumulated net realized gain (loss) on investments and foreign currency | (2,767 | ) | 19,207 | 5,385 | (1,511 | ) | ||||||||||
| Net unrealized appreciation (depreciation) on: | ||||||||||||||||
| Investments | 41,299 | 29,642 | 13,647 | 81,309 | ||||||||||||
| Foreign currencies and translation of other assets and liabilities denominated in foreign currencies | — | — | — | (327 | ) | |||||||||||
| Net Assets | $ | 172,917 | $ | 207,210 | $ | 199,593 | $ | 582,490 | ||||||||
| Institutional Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | — | $ | 6,758,695 | $ | 172,830,008 | $ | — | ||||||||
| Total shares outstanding at end of period | — | 475,614 | 15,097,216 | — | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | — | $ | 14.21 | $ | 11.45 | $ | — | ||||||||
| Class N Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | 172,916,873 | $ | 97,205,303 | $ | 26,763,403 | $ | 582,490,192 | ||||||||
| Total shares outstanding at end of period | 4,929,670 | 6,897,306 | 2,342,814 | 14,973,735 | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | 35.08 | $ | 14.09 | $ | 11.42 | $ | 38.90 | ||||||||
| Servicing Class Shares: | ||||||||||||||||
| Net Assets ($Dollars) | $ | — | $ | 103,245,570 | $ | — | $ | — | ||||||||
| Total shares outstanding at end of period | — | 7,318,614 | — | — | ||||||||||||
| Net asset value, offering and redemption price per share | ||||||||||||||||
| (net assets ÷ shares outstanding) | $ | — | $ | 14.11 | $ | — | $ | — | ||||||||
| Amounts designated as “—” are either $0 or have been rounded to $0. |
| (1) | Cost of foreign currency $19,800 (000). |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 123
statements of operations (000)
For the year ended September 30, 2014
City National Rochdale Government Money Market Fund | City National Rochdale Prime Money Market Fund | City National Rochdale California Tax Exempt Money Market Fund | City National Rochdale Limited Maturity Fixed Income Fund | |||||||||||||
| INCOME: | ||||||||||||||||
| Interest Income | $ | 3,369 | $ | 1,879 | $ | 612 | $ | 433 | ||||||||
| Total Investment Income | 3,369 | 1,879 | 612 | 433 | ||||||||||||
| EXPENSES: | ||||||||||||||||
| Investment Advisory Fees | 9,839 | 3,002 | 2,592 | 166 | ||||||||||||
Shareholder Servicing Fees — Class N(1) | 16,531 | 1,958 | 3,791 | 24 | ||||||||||||
Shareholder Servicing Fees — Class S(1) | 4,577 | 1,717 | 553 | — | ||||||||||||
| Shareholder Servicing Fees — Servicing Class | 420 | 1,431 | 493 | — | ||||||||||||
| Administration Fees | 745 | 302 | 260 | 102 | ||||||||||||
| Transfer Agent Fees | 422 | 134 | 108 | 4 | ||||||||||||
| Trustee Fees | 202 | 75 | 60 | 15 | ||||||||||||
| Professional Fees | 296 | 103 | 89 | 19 | ||||||||||||
| Custody Fees | 243 | 80 | 55 | 2 | ||||||||||||
| Registration Fees | 225 | 75 | 59 | 3 | ||||||||||||
| Printing Fees | 157 | 51 | 40 | 1 | ||||||||||||
| Insurance and Other Expenses | 293 | 99 | 81 | 5 | ||||||||||||
| Total Expenses | 33,950 | 9,027 | 8,181 | 341 | ||||||||||||
| Less, Waivers and/or Reimbursements of: | ||||||||||||||||
| Investment Advisory Fees | (9,264 | ) | (2,095 | ) | (2,592 | ) | (95 | ) | ||||||||
Shareholder Servicing Fees — Class N(1) | (16,531 | ) | (1,958 | ) | (3,791 | ) | (12 | ) | ||||||||
Shareholder Servicing Fees — Class S(1) | (4,577 | ) | (1,717 | ) | (553 | ) | — | |||||||||
| Shareholder Servicing Fees — Servicing Class | (420 | ) | (1,431 | ) | (493 | ) | — | |||||||||
| Administration Fees | (167 | ) | (67 | ) | (166 | ) | — | |||||||||
| Transfer Agent Fees | — | — | (45 | ) | — | |||||||||||
| Legal Fees | — | — | (25 | ) | — | |||||||||||
| Net Expenses | 2,991 | 1,759 | 516 | 234 | ||||||||||||
| Net Investment Income | 378 | 120 | 96 | 199 | ||||||||||||
| Net Realized Gain (Loss) from Securities Transactions | 2 | 4 | (2 | ) | 123 | |||||||||||
| Net Change in Unrealized Depreciation on Investments | — | — | — | (65 | ) | |||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 380 | $ | 124 | $ | 94 | $ | 257 | ||||||||
| (1) | Includes class specific distribution expenses. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 124
statements of operations (000)
For the year or period ended September 30, 2014
City National Rochdale Government Bond Fund | City National Rochdale Corporate Bond Fund | City National Rochdale California Tax Exempt Bond Fund | City National Rochdale Municipal High Income Fund (2) | |||||||||||||
| INCOME: | ||||||||||||||||
| Dividend Income | $ | — | $ | — | $ | — | $ | 2 | ||||||||
| Dividend Income from Affiliated Investments | — | — | — | 1 | ||||||||||||
| Interest Income | 1,954 | 3,314 | 1,487 | 9,295 | ||||||||||||
| Total Investment Income | 1,954 | 3,314 | 1,487 | 9,298 | ||||||||||||
| EXPENSES: | ||||||||||||||||
| Investment Advisory Fees | 747 | 568 | 195 | 807 | ||||||||||||
Shareholder Servicing Fees — Class N(1) | 11 | 17 | 49 | 422 | ||||||||||||
| Shareholder Servicing Fees — Servicing Class | 285 | 347 | 156 | 237 | ||||||||||||
| Administration Fees | 125 | 120 | 108 | 103 | ||||||||||||
| Transfer Agent Fees | 20 | 16 | 8 | 22 | ||||||||||||
| Trustee Fees | 21 | 20 | 16 | 18 | ||||||||||||
| Professional Fees | 31 | 28 | 23 | 38 | ||||||||||||
| Custody Fees | 11 | 11 | 4 | 9 | ||||||||||||
| Registration Fees | 10 | 8 | 4 | 21 | ||||||||||||
| Printing Fees | 7 | 6 | 3 | 7 | ||||||||||||
| Offering Costs | — | — | — | 17 | ||||||||||||
| Insurance and Other Expenses | 15 | 30 | 12 | 12 | ||||||||||||
| Total Expenses | 1,283 | 1,171 | 578 | 1,713 | ||||||||||||
| Less, Waivers of: | ||||||||||||||||
| Investment Advisory Fees | (67 | ) | (83 | ) | (99 | ) | (13 | ) | ||||||||
| Net Expenses | 1,216 | 1,088 | 479 | 1,700 | ||||||||||||
| Net Investment Income | 738 | 2,226 | 1,008 | 7,598 | ||||||||||||
| Net Realized Gain from Securities Transactions | 1,551 | 1,186 | 461 | 74 | ||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on Investments | (1,205 | ) | (775 | ) | 1,052 | 12,861 | ||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 1,084 | $ | 2,637 | $ | 2,521 | $ | 20,533 | ||||||||
| (1) | Includes class specific distribution expenses. |
| (2) | Fund commenced operations December 30, 2013. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 125
statements of operations/
consolidated statement of operations (000)
For the year ended September 30, 2014
City National Rochdale High Yield Bond Fund | City National Rochdale Intermediate Fixed Income Fund | City National Rochdale Fixed Income Opportunities Fund | City National Rochdale Multi-Asset Fund | |||||||||||||
| INCOME: | ||||||||||||||||
| Dividend Income | $ | 60 | $ | 519 | $ | 12 | $ | 523 | ||||||||
| Dividend Income from Affiliated Investments | — | — | — | 60 | ||||||||||||
| Interest Income | 8,901 | 5,952 | 70,200 | — | ||||||||||||
| Less: Foreign Taxes Withheld | — | — | (23 | ) | — | |||||||||||
| Total Investment Income | 8,961 | 6,471 | 70,189 | 583 | ||||||||||||
| EXPENSES: | ||||||||||||||||
| Investment Advisory Fees | 799 | 817 | 6,103 | 137 | ||||||||||||
Shareholder Servicing Fees — Class N(1) | 173 | 894 | 6,102 | 100 | ||||||||||||
| Shareholder Servicing Fees — Servicing Class | 145 | — | — | 14 | ||||||||||||
| Administration Fees | 118 | 131 | 375 | 100 | ||||||||||||
| Transfer Agent Fees | 15 | 23 | 145 | 3 | ||||||||||||
| Trustee Fees | 20 | 20 | 93 | 14 | ||||||||||||
| Professional Fees | 25 | 37 | 283 | 19 | ||||||||||||
| Custody Fees | 12 | 13 | 99 | 2 | ||||||||||||
| Registration Fees | 10 | 18 | 73 | 2 | ||||||||||||
| Printing Fees | 6 | 9 | 52 | 1 | ||||||||||||
| Insurance and Other Expenses | 28 | 33 | 350 | 3 | ||||||||||||
| Total Expenses | 1,351 | 1,995 | 13,675 | 395 | ||||||||||||
Recovery of Investment Advisory Fees Previously Waived(2) | — | — | 97 | — | ||||||||||||
| Less, Waiver of: | ||||||||||||||||
| Investment Advisory Fees | (101 | ) | (59 | ) | (263 | ) | (11 | ) | ||||||||
| Net Expenses | 1,250 | 1,936 | 13,509 | 384 | ||||||||||||
| Net Investment Income | 7,711 | 4,535 | 56,680 | 199 | ||||||||||||
| Net Realized Gain (Loss) from: | ||||||||||||||||
| Securities Transactions | 5,028 | (123 | ) | 4,871 | 1,191 | |||||||||||
| Affiliated Investments | — | — | — | 35 | ||||||||||||
| Distributions of Realized Gains from Investment Company Shares | — | — | — | 38 | ||||||||||||
| Forward Foreign Currency Contracts | — | — | 5,455 | — | ||||||||||||
| Foreign Currency Transactions | — | — | 21 | — | ||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
| Investments | (1,148 | ) | 2,982 | (2,897 | ) | (226 | ) | |||||||||
| Affiliated Investments | — | — | — | (49 | ) | |||||||||||
| Forward Foreign Currency Contracts | — | — | 2,511 | — | ||||||||||||
| Foreign Currency Transactions | — | — | 138 | — | ||||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 11,591 | $ | 7,394 | $ | 66,779 | $ | 1,188 | ||||||||
| (1) | Includes class specific distribution expenses. |
| (2) | See Note 4 for Advisory Fees recovered. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 126
statements of operations/
consolidated statement of operations (000)
For the year ended September 30, 2014
City National Rochdale Dividend & Income Fund | City National Rochdale U.S. Core Equity Fund | City National Rochdale Socially Responsible Fund | City National Rochdale Emerging Markets Fund | |||||||||||||
| INCOME: | ||||||||||||||||
| Dividend Income | $ | 5,931 | $ | 2,128 | $ | 2,252 | $ | 10,312 | ||||||||
| Interest Income | 776 | — | — | — | ||||||||||||
| Less: Foreign Taxes Withheld | (12 | ) | (10 | ) | — | (519 | ) | |||||||||
| Total Investment Income | 6,695 | 2,118 | 2,252 | 9,793 | ||||||||||||
| EXPENSES: | ||||||||||||||||
| Investment Advisory Fees | 874 | 758 | 656 | 4,477 | ||||||||||||
Shareholder Servicing Fees — Class N(1) | 874 | 421 | 160 | 2,238 | ||||||||||||
| Shareholder Servicing Fees — Servicing Class | — | 220 | — | — | ||||||||||||
| Administration Fees | 126 | 123 | 110 | 172 | ||||||||||||
| Transfer Agent Fees | 21 | 22 | 9 | 53 | ||||||||||||
| Trustee Fees | 22 | 17 | 17 | 34 | ||||||||||||
| Professional Fees | 31 | 43 | 24 | 68 | ||||||||||||
| Custody Fees | 13 | 13 | 5 | 118 | ||||||||||||
| Registration Fees | 20 | 16 | 7 | 30 | ||||||||||||
| Printing Fees | 8 | 9 | 3 | 19 | ||||||||||||
| Insurance and Other Expenses | 11 | 12 | 6 | 126 | ||||||||||||
| Total Expenses | 2,000 | 1,654 | 997 | 7,335 | ||||||||||||
| Less, Waiver of: | ||||||||||||||||
| Investment Advisory Fees | (90 | ) | (4 | ) | (61 | ) | (145 | ) | ||||||||
| Shareholder Servicing Fees — Class N | — | — | (80 | ) | — | |||||||||||
| Net Expenses | 1,910 | 1,650 | 856 | 7,190 | ||||||||||||
| Net Investment Income | 4,785 | 468 | 1,396 | 2,603 | ||||||||||||
| Net Realized Gain (Loss) from: | ||||||||||||||||
| Securities Transactions | 5,858 | 19,801 | 6,101 | (405 | ) | |||||||||||
| Foreign Currency Transactions | — | — | — | (579 | ) | |||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||||||
| Investments | 9,234 | 10,820 | (169 | ) | 53,480 | |||||||||||
| Foreign Currency Transactions | — | — | — | (330 | ) | |||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 19,877 | $ | 31,089 | $ | 7,328 | $ | 54,769 | ||||||||
| (1) | Includes class specific distribution expenses. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 127
statements of changes in net assets (000)
For the year ended September 30,
City National Rochdale Government Money Market Fund | City National Rochdale Prime Money Market Fund | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATIONS: | ||||||||||||||||
| Net Investment Income | $ | 378 | $ | 330 | $ | 120 | $ | 228 | ||||||||
| Net Realized Gain (Loss) from Security Transactions | 2 | 6 | 4 | (1 | ) | |||||||||||
| Net Change in Unrealized Depreciation on Investments | — | — | — | — | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | 380 | 336 | 124 | 227 | ||||||||||||
| DIVIDENDS AND DISTRIBUTIONS FROM: | ||||||||||||||||
| Net Investment Income: | ||||||||||||||||
| Institutional Class | — | — | (4 | ) | (1 | ) | ||||||||||
| Class N | (300 | ) | (281 | ) | (36 | ) | (65 | ) | ||||||||
| Class S | (61 | ) | (38 | ) | (23 | ) | (26 | ) | ||||||||
| Servicing Class | (17 | ) | (11 | ) | (57 | ) | (136 | ) | ||||||||
| Realized Capital Gains: | ||||||||||||||||
| Institutional Class | — | — | — | — | ||||||||||||
| Class N | — | — | — | — | ||||||||||||
| Servicing Class | — | — | — | — | ||||||||||||
| Total Dividends and Distributions | (378 | ) | (330 | ) | (120 | ) | (228 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS:(1) | ||||||||||||||||
| Institutional Class: | ||||||||||||||||
| Shares Issued | — | — | 177,330 | 64,765 | ||||||||||||
| Shares Issued in Lieu of Dividends and Distributions | — | — | — | — | ||||||||||||
| Shares Redeemed | — | — | (134,563 | ) | (53,558 | ) | ||||||||||
| Increase (Decrease) in Net Assets from Institutional Class Share Transactions | — | — | 42,767 | 11,207 | ||||||||||||
| Class N: | ||||||||||||||||
| Shares Issued | 4,544,028 | 4,569,767 | 712,240 | 958,377 | ||||||||||||
| Shares Issued in Lieu of Dividends and Distributions | 249 | 232 | 24 | 43 | ||||||||||||
| Shares Redeemed | (4,410,324 | ) | (4,337,676 | ) | (803,775 | ) | (927,483 | ) | ||||||||
| Increase (Decrease) in Net Assets from Class N Share Transactions | 133,953 | 232,323 | (91,511 | ) | 30,937 | |||||||||||
| Class S: | ||||||||||||||||
| Shares Issued | 1,522,771 | 1,126,727 | 869,219 | 820,945 | ||||||||||||
| Shares Issued in Lieu of Dividends and Distributions | — | — | — | — | ||||||||||||
| Shares Redeemed | (1,291,990 | ) | (940,498 | ) | (878,235 | ) | (869,753 | ) | ||||||||
| Increase (Decrease) in Net Assets from Class S Share Transactions | 230,781 | 186,229 | (9,016 | ) | (48,808 | ) | ||||||||||
| Servicing Class: | ||||||||||||||||
| Shares Issued | 1,008,445 | 778,145 | 1,057,487 | 2,068,692 | ||||||||||||
| Shares Issued in Lieu of Dividends and Distributions | — | — | 9 | 22 | ||||||||||||
| Shares Redeemed | (924,910 | ) | (746,175 | ) | (1,207,309 | ) | (1,961,996 | ) | ||||||||
| Increase (Decrease) in Net Assets from Servicing Class Share Transactions | 83,535 | 31,970 | (149,813 | ) | 106,718 | |||||||||||
| Net Increase (Decrease) in Net Assets from Share Transactions | 448,269 | 450,522 | (207,573 | ) | 100,054 | |||||||||||
| Total Increase (Decrease) in Net Assets | 448,271 | 450,528 | (207,569 | ) | 100,053 | |||||||||||
| NET ASSETS: | ||||||||||||||||
| Beginning of Year | 3,643,970 | 3,193,442 | 1,256,877 | 1,156,824 | ||||||||||||
| End of Year | $ | 4,092,241 | $ | 3,643,970 | $ | 1,049,308 | $ | 1,256,877 | ||||||||
| Undistributed (Distributions in excess of) net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
| (1) | See Note 9 for shares issued and redeemed. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 128
City National Rochdale California Tax Exempt Money Market Fund | City National Rochdale Limited Maturity Fixed Income Fund | City National Rochdale Government Bond Fund | City National Rochdale Corporate Bond Fund | |||||||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
| $ | 96 | $ | 94 | $ | 199 | $ | 239 | $ | 738 | $ | 1,317 | $ | 2,226 | $ | 2,431 | |||||||||||||||
| (2 | ) | — | 123 | 89 | 1,551 | (81 | ) | 1,186 | 926 | |||||||||||||||||||||
| — | — | (65 | ) | (425 | ) | (1,205 | ) | (3,438 | ) | (775 | ) | (2,436 | ) | |||||||||||||||||
| 94 | 94 | 257 | (97 | ) | 1,084 | (2,202 | ) | 2,637 | 921 | |||||||||||||||||||||
| — | — | (184 | ) | (288 | ) | (402 | ) | (746 | ) | — | — | |||||||||||||||||||
| (69 | ) | (71 | ) | (20 | ) | (19 | ) | (2 | ) | (23 | ) | (44 | ) | (46 | ) | |||||||||||||||
| (7 | ) | (7 | ) | — | — | — | — | — | — | |||||||||||||||||||||
| (20 | ) | (16 | ) | — | — | (346 | ) | (1,285 | ) | (2,181 | ) | (2,423 | ) | |||||||||||||||||
| — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| — | — | — | — | — | — | (20 | ) | (20 | ) | |||||||||||||||||||||
| — | — | — | — | — | — | (914 | ) | (1,056 | ) | |||||||||||||||||||||
| (96 | ) | (94 | ) | (204 | ) | (307 | ) | (750 | ) | (2,054 | ) | (3,159 | ) | (3,545 | ) | |||||||||||||||
| — | — | 744 | 1,086 | 9,605 | 10,986 | — | — | |||||||||||||||||||||||
| — | — | 77 | 87 | 338 | 720 | — | — | |||||||||||||||||||||||
| — | — | (18,040 | ) | (8,747 | ) | (9,682 | ) | (9,510 | ) | — | — | |||||||||||||||||||
| — | — | (17,219 | ) | (7,574 | ) | 261 | 2,196 | — | — | |||||||||||||||||||||
| 988,104 | 1,060,390 | 1,191 | 2,071 | 385 | 306 | 1,625 | 1,782 | |||||||||||||||||||||||
| 67 | 70 | 20 | 19 | 1 | 13 | 47 | 43 | |||||||||||||||||||||||
| (1,037,816 | ) | (1,053,783 | ) | (1,125 | ) | (1,865 | ) | (871 | ) | (720 | ) | (750 | ) | (1,196 | ) | |||||||||||||||
| (49,645 | ) | 6,677 | 86 | 225 | (485 | ) | (401 | ) | 922 | 629 | ||||||||||||||||||||
| 372,122 | 320,188 | — | — | — | — | — | — | |||||||||||||||||||||||
| — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| (370,022 | ) | (340,847 | ) | — | — | — | — | — | — | |||||||||||||||||||||
| 2,100 | (20,659 | ) | — | — | — | — | — | — | ||||||||||||||||||||||
| 698,593 | 808,580 | — | — | 28,483 | 36,855 | 43,257 | 44,640 | |||||||||||||||||||||||
| — | — | — | — | 193 | 604 | 241 | 309 | |||||||||||||||||||||||
| (662,963 | ) | (780,506 | ) | — | — | (30,360 | ) | (43,783 | ) | (35,408 | ) | (40,992 | ) | |||||||||||||||||
| 35,630 | 28,074 | — | — | (1,684 | ) | (6,324 | ) | 8,090 | 3,957 | |||||||||||||||||||||
| (11,915 | ) | 14,092 | (17,133 | ) | (7,349 | ) | (1,908 | ) | (4,529 | ) | 9,012 | 4,586 | ||||||||||||||||||
| (11,917 | ) | 14,092 | (17,080 | ) | (7,753 | ) | (1,574 | ) | (8,785 | ) | 8,490 | 1,962 | ||||||||||||||||||
| 918,259 | 904,167 | 44,735 | 52,488 | 173,808 | 182,593 | 138,284 | 136,322 | |||||||||||||||||||||||
| $ | 906,342 | $ | 918,259 | $ | 27,655 | $ | 44,735 | $ | 172,234 | $ | 173,808 | $ | 146,774 | $ | 138,284 | |||||||||||||||
| $ | — | $ | — | $ | (1 | ) | $ | — | $ | 2 | $ | — | $ | 1 | $ | — | ||||||||||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 129
statements of changes in net assets/
consolidated statement of changes in net assets (000)
For the year or period ended September 30,
City National Rochdale California Tax Exempt Bond Fund | City National Rochdale Municipal High Income Fund (2) | |||||||||||
| 2014 | 2013 | 2014 | ||||||||||
| OPERATIONS: | ||||||||||||
| Net Investment Income | $ | 1,008 | $ | 1,190 | $ | 7,598 | ||||||
| Net Realized Gain (Loss) from: | ||||||||||||
| Security Transactions and Affiliated Investments | 461 | 81 | 74 | |||||||||
| Distributions of Realized Gains from Investment Company Shares | — | — | — | |||||||||
| Foreign Currency Transactions | — | — | — | |||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments and Affiliated Investments | 1,052 | (1,430 | ) | 12,861 | ||||||||
| Foreign Currency Transactions | — | — | — | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | 2,521 | (159 | ) | 20,533 | ||||||||
| DIVIDENDS AND DISTRIBUTIONS FROM: | ||||||||||||
| Net Investment Income: | ||||||||||||
| Institutional Class | — | — | — | |||||||||
| Class N | (115 | ) | (112 | ) | (3,407 | ) | ||||||
| Servicing Class | (893 | ) | (1,078 | ) | (4,062 | ) | ||||||
| Realized Capital Gains: | ||||||||||||
| Institutional Class | — | — | — | |||||||||
| Class N | (17 | ) | (55 | ) | — | |||||||
| Servicing Class | (110 | ) | (474 | ) | — | |||||||
| Total Dividends and Distributions | (1,135 | ) | (1,719 | ) | (7,469 | ) | ||||||
CAPITAL SHARE TRANSACTIONS:(1) | ||||||||||||
| Institutional Class: | ||||||||||||
| Shares Issued | — | — | — | |||||||||
Shares Issued from Merger(5) | — | — | — | |||||||||
| Shares Issued in Lieu of Dividends and Distributions | — | — | — | |||||||||
| Shares Redeemed | — | — | — | |||||||||
| Increase (Decrease) in Net Assets from Institutional Class Share Transactions | — | — | — | |||||||||
| Class N: | ||||||||||||
| Shares Issued | 4,384 | 5,757 | 212,375 | |||||||||
Shares Issued from Merger(5) | — | — | — | |||||||||
| Shares Issued in Lieu of Dividends and Distributions | 75 | 106 | 2,227 | |||||||||
| Shares Redeemed | (1,893 | ) | (3,552 | ) | (19,319 | ) | ||||||
| Redemption Fees | — | — | — | |||||||||
| Increase (Decrease) in Net Assets from Class N Share Transactions | 2,566 | 2,311 | 195,283 | |||||||||
| Servicing Class: | ||||||||||||
| Shares Issued | 26,391 | 26,421 | 220,241 | |||||||||
| Shares Issued in Lieu of Dividends and Distributions | 97 | 211 | 74 | |||||||||
| Shares Redeemed | (16,133 | ) | (17,652 | ) | (6,611 | ) | ||||||
| Increase (Decrease) in Net Assets from Servicing Class Share Transactions | 10,355 | 8,980 | 213,704 | |||||||||
| Net Increase (Decrease) in Net Assets from Share Transactions | 12,921 | 11,291 | 408,987 | |||||||||
| Total Increase (Decrease) in Net Assets | 14,307 | 9,413 | 422,051 | |||||||||
| NET ASSETS: | ||||||||||||
| Beginning of Year/Period | 67,346 | 57,933 | — | |||||||||
| End of Year/Period | $ | 81,653 | $ | 67,346 | $ | 422,051 | ||||||
| Undistributed net investment income | $ | — | $ | — | $ | 130 | ||||||
| † | For the nine months ended September 30, 2013 and the year ended December 31, 2012. Effective March 29, 2013, Rochdale Investment Trust’s Rochdale Intermediate Fixed Income Portfolio and Rochdale Fixed Income Opportunities Portfolio (each a “Predecessor Fund”) were merged into City National Rochdale Fund’s Intermediate Fixed Income Fund and Fixed Income Opportunities Fund, respectively. Information presented for the period prior to March 29, 2013, is that of the respective Predecessor Fund, which had a December 31 fiscal year end. See Note 1 in Notes to Financial Statements for additional information. |
| (1) | See Note 9 for shares issued and redeemed. |
| (2) | Fund commenced operations December 30, 2013 |
| (3) | Institutional Class commenced operations on December 20, 2013. |
| (4) | Institutional Class ceased operations on January 31, 2014. |
| (5) | See Note 10 in Notes to Financial Statements. |
| * | On March 29, 2013, the Rochdale Intermediate Fixed Income Portfolio and Rochdale Fixed Income Opportunities Portfolio were reorganized into the City National Rochdale Intermediate Fixed Income Fund and City National Rochdale Fixed Income Opportunities Fund, respectively. See Note 1 in Notes to Financial Statements for additional information. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 130
City National Rochdale High Yield Bond Fund | City National Rochdale Intermediate Fixed Income Fund* (3) | City National Rochdale Fixed Income Opportunities Fund * | City National Rochdale Multi-Asset Fund (4) | |||||||||||||||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013† | 2012† | 2014 | 2013† | 2012† | 2014 | 2013 | |||||||||||||||||||||||||||||
| $ | 7,711 | $ | 10,977 | $ | 4,535 | $ | 3,312 | $ | 4,083 | $ | 56,680 | $ | 34,256 | $ | 36,480 | $ | 199 | $ | 591 | |||||||||||||||||||
| 5,028 | 857 | (123 | ) | (354 | ) | 473 | 4,871 | 5,542 | 1,021 | 1,226 | 1,977 | |||||||||||||||||||||||||||
| — | — | — | — | — | — | — | — | 38 | 55 | |||||||||||||||||||||||||||||
| — | — | — | — | — | 5,476 | (61 | ) | (345 | ) | — | — | |||||||||||||||||||||||||||
| (1,148 | ) | (2,333 | ) | 2,982 | (4,677 | ) | 4,019 | (2,897 | ) | (18,357 | ) | 21,698 | (275 | ) | (1,039 | ) | ||||||||||||||||||||||
| — | — | — | — | — | 2,649 | (184 | ) | (312 | ) | — | — | |||||||||||||||||||||||||||
| 11,591 | 9,501 | 7,394 | (1,719 | ) | 8,575 | 66,779 | 21,196 | 58,542 | 1,188 | 1,584 | ||||||||||||||||||||||||||||
| (2,421 | ) | (2,806 | ) | (611 | ) | — | — | — | — | — | (28 | ) | (150 | ) | ||||||||||||||||||||||||
| (1,899 | ) | (2,840 | ) | (3,973 | ) | (3,505 | ) | (4,065 | ) | (54,067 | ) | (34,355 | ) | (35,978 | ) | (149 | ) | (404 | ) | |||||||||||||||||||
| (3,386 | ) | (5,350 | ) | — | — | — | — | — | — | (57 | ) | (113 | ) | |||||||||||||||||||||||||
| (90 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
| (83 | ) | — | — | — | — | (5,256 | ) | (52 | ) | (1,348 | ) | — | — | |||||||||||||||||||||||||
| (208 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
| (8,087 | ) | (10,996 | ) | (4,584 | ) | (3,505 | ) | (4,065 | ) | (59,323 | ) | (34,407 | ) | (37,326 | ) | (234 | ) | (667 | ) | |||||||||||||||||||
| 7,321 | 6,781 | 1,175 | — | — | — | — | — | 783 | 1,941 | |||||||||||||||||||||||||||||
| — | — | 44,899 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| 2,362 | 2,324 | 648 | — | — | — | — | — | 27 | 150 | |||||||||||||||||||||||||||||
| (9,031 | ) | (10,577 | ) | (38,696 | ) | — | — | — | — | — | (7,291 | ) | (8,488 | ) | ||||||||||||||||||||||||
| 652 | (1,472 | ) | 8,026 | — | — | — | — | — | (6,481 | ) | (6,397 | ) | ||||||||||||||||||||||||||
| 4,360 | 15,763 | 98,095 | 56,237 | 52,862 | 629,065 | 337,721 | 204,737 | 650 | 2,100 | |||||||||||||||||||||||||||||
| — | — | — | — | — | 58,518 | — | — | — | — | |||||||||||||||||||||||||||||
| 1,220 | 1,427 | 2,343 | 1,718 | 3,348 | 32,489 | 19,896 | 34,855 | 105 | 267 | |||||||||||||||||||||||||||||
| (14,526 | ) | (21,520 | ) | (53,966 | ) | (27,350 | ) | (38,323 | ) | (260,475 | ) | (74,057 | ) | (104,410 | ) | (4,588 | ) | (6,000 | ) | |||||||||||||||||||
| — | — | — | — | 5 | — | — | 13 | — | — | |||||||||||||||||||||||||||||
| (8,946 | ) | (4,330 | ) | 46,472 | 30,605 | 17,892 | 459,597 | 283,560 | 135,195 | (3,833 | ) | (3,633 | ) | |||||||||||||||||||||||||
| 26,803 | 62,803 | — | — | — | — | — | — | 1,149 | 194 | |||||||||||||||||||||||||||||
| 557 | 674 | — | — | — | — | — | — | 33 | 55 | |||||||||||||||||||||||||||||
| (74,330 | ) | (47,406 | ) | — | — | — | — | — | — | (228 | ) | (2,692 | ) | |||||||||||||||||||||||||
| (46,970 | ) | 16,071 | — | — | — | — | — | — | 954 | (2,443 | ) | |||||||||||||||||||||||||||
| (55,264 | ) | 10,269 | 54,498 | 30,605 | 17,892 | 459,597 | 283,560 | 135,195 | (9,360 | ) | (12,473 | ) | ||||||||||||||||||||||||||
| (51,760 | ) | 8,774 | 57,308 | 25,381 | 22,402 | 467,053 | 270,349 | 156,411 | (8,406 | ) | (11,556 | ) | ||||||||||||||||||||||||||
| 162,539 | 153,765 | 155,740 | 130,359 | 107,957 | 924,444 | 654,095 | 497,684 | 33,211 | 44,767 | |||||||||||||||||||||||||||||
| $ | 110,779 | $ | 162,539 | $ | 213,048 | $ | 155,740 | $ | 130,359 | $ | 1,391,497 | $ | 924,444 | $ | 654,095 | $ | 24,805 | $ | 33,211 | |||||||||||||||||||
| $ | 6 | $ | — | $ | 63 | $ | 18 | $ | 173 | $ | 6,957 | $ | 196 | $ | 699 | $ | — | $ | — | |||||||||||||||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 131
statements of changes in net assets/
consolidated statement of changes in net assets (000)
For the year or period ended September 30,
City National Rochdale Dividend & Income Fund * | ||||||||||||
| 2014 | 2013† | 2012† | ||||||||||
| OPERATIONS: | ||||||||||||
| Net Investment Income | $ | 4,785 | $ | 2,602 | $ | 4,050 | ||||||
| Net Realized Gain (Loss) from: | ||||||||||||
| Security Transactions | 5,858 | 4,278 | (2,661 | ) | ||||||||
| Distributions of Realized Gains from Investment Company Shares | — | — | 116 | |||||||||
| Foreign Currency Transactions | — | 8 | (6 | ) | ||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | 9,234 | 8,298 | 7,411 | |||||||||
| Foreign Currency Transactions | — | — | — | |||||||||
| Net Increase in Net Assets Resulting from Operations | 19,877 | 15,186 | 8,910 | |||||||||
| DIVIDENDS AND DISTRIBUTIONS FROM: | ||||||||||||
| Net Investment Income: | ||||||||||||
| Institutional Class | — | — | — | |||||||||
| Class N | (5,449 | ) | (2,296 | ) | (4,044 | ) | ||||||
| Servicing Class | — | — | — | |||||||||
| Realized Capital Gains: | ||||||||||||
| Institutional Class | — | — | — | |||||||||
| Class N | — | — | — | |||||||||
| Servicing Class | — | — | — | |||||||||
| Return of Capital: | ||||||||||||
| Class N | — | (1,135 | ) | (727 | ) | |||||||
| Total Dividends and Distributions | (5,449 | ) | (3,431 | ) | (4,771 | ) | ||||||
CAPITAL SHARE TRANSACTIONS:(1) | ||||||||||||
| Institutional Class: | ||||||||||||
| Shares Issued | — | — | — | |||||||||
Shares Issued from Merger(3) | — | — | — | |||||||||
| Shares Issued in Lieu of Dividends and Distributions | — | — | — | |||||||||
| Shares Redeemed | — | — | — | |||||||||
| Increase (Decrease) in Net Assets from Institutional Class Share Transactions | — | — | — | |||||||||
| Class N: | ||||||||||||
| Shares Issued | 68,568 | 65,148 | 49,255 | |||||||||
Shares Issued from Merger(3) | — | — | — | |||||||||
| Shares Issued in Lieu of Dividends and Distributions | 3,535 | 2,657 | 4,440 | |||||||||
| Shares Redeemed | (69,421 | ) | (39,891 | ) | (48,715 | ) | ||||||
| Redemption Fees | — | — | 7 | |||||||||
| Increase (Decrease) in Net Assets from Class N Share Transactions | 2,682 | 27,914 | 4,987 | |||||||||
| Servicing Class: | ||||||||||||
| Shares Issued | — | — | — | |||||||||
| Shares Issued in Lieu of Dividends and Distributions | — | — | — | |||||||||
| Shares Redeemed | — | — | — | |||||||||
| Increase in Net Assets from Servicing Class Share Transactions | — | — | — | |||||||||
| Net Increase (Decrease) in Net Assets from Share Transactions | 2,682 | 27,914 | 4,987 | |||||||||
| Total Increase (Decrease) in Net Assets | 17,110 | 39,669 | 9,126 | |||||||||
| NET ASSETS: | ||||||||||||
| Beginning of Year/Period | 155,807 | 116,138 | 107,012 | |||||||||
| End of Year/Period | $ | 172,917 | $ | 155,807 | $ | 116,138 | ||||||
| Undistributed (Distributions in excess of) net investment income | $ | (4 | ) | $ | (6 | ) | $ | 502 | ||||
| † | For the nine months ended September 30, 2013 and the year ended December 31, 2012. Effective March 29, 2013, Rochdale Investment Trust’s Rochdale Dividend & Income Portfolio and Rochdale Emerging Markets Portfolio (each a “Predecessor Fund”) were merged into City National Rochdale Fund’s Dividend & Income Fund and Emerging Markets Fund, respectively. Information presented for the period prior to March 29, 2013, is that of the respective Predecessor Fund, which had a December 31 fiscal year end. See Note 1 in Notes to Financial Statements for additional information. |
| (1) | See Note 9 for shares issued and redeemed. |
| (2) | Commenced operations on December 3, 2012. |
| (3) | See Note 10 in Notes to Financial Statements. |
| * | On March 29, 2013, the Rochdale Dividend & Income Portfolio and Rochdale Emerging Markets Portfolio were reorganized into the City National Rochdale Dividend & Income Fund and City National Rochdale Emerging Markets Fund, respectively. See Note 1 in Notes to Financial Statements for additional information. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 132
City National Rochdale U.S. Core Equity Fund (2) | City National Rochdale Socially Responsible Equity Fund | City National Rochdale Emerging Markets Fund * | ||||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013† | 2012† | ||||||||||||||||||||
| $ | 468 | $ | 572 | $ | 1,396 | $ | 1,120 | $ | 2,603 | $ | 2,076 | $ | 127 | |||||||||||||
| 19,801 | 2,022 | 6,101 | 22,369 | (405 | ) | 1,280 | (2,280 | ) | ||||||||||||||||||
| — | — | — | — | — | — | — | ||||||||||||||||||||
| — | — | — | — | (579 | ) | (985 | ) | (359 | ) | |||||||||||||||||
| 10,820 | 18,822 | (169 | ) | 1,198 | 53,480 | 7,095 | 20,671 | |||||||||||||||||||
| — | — | — | — | (330 | ) | 14 | (11 | ) | ||||||||||||||||||
| 31,089 | 21,416 | 7,328 | 24,687 | 54,769 | 9,480 | 18,148 | ||||||||||||||||||||
| (82 | ) | — | (939 | ) | (887 | ) | — | — | — | |||||||||||||||||
| (82 | ) | (245 | ) | (461 | ) | (247 | ) | (1,072 | ) | — | — | |||||||||||||||
| (306 | ) | (326 | ) | — | — | — | — | — | ||||||||||||||||||
| — | — | (7,405 | ) | — | — | — | — | |||||||||||||||||||
| (1,261 | ) | — | (5,241 | ) | — | — | — | — | ||||||||||||||||||
| (1,354 | ) | — | — | — | — | — | — | |||||||||||||||||||
| — | — | — | — | — | — | (67 | ) | |||||||||||||||||||
| (3,085 | ) | (571 | ) | (14,046 | ) | (1,134 | ) | (1,072 | ) | — | (67 | ) | ||||||||||||||
| 1,318 | — | 131,401 | 14,934 | — | — | — | ||||||||||||||||||||
| 50,817 | — | — | — | — | — | — | ||||||||||||||||||||
| 81 | — | 8,341 | 887 | — | — | — | ||||||||||||||||||||
| (47,918 | ) | — | (7,405 | ) | (68,200 | ) | — | — | — | |||||||||||||||||
| 4,298 | — | 132,337 | (52,379 | ) | — | — | — | |||||||||||||||||||
| 27,776 | 61,997 | 11,122 | 7,776 | 295,842 | 168,575 | 125,949 | ||||||||||||||||||||
| 2,752 | — | — | — | — | — | — | ||||||||||||||||||||
| 1,216 | 211 | 5,563 | 246 | 530 | — | 63 | ||||||||||||||||||||
| (13,106 | ) | (6,431 | ) | (19,455 | ) | (8,192 | ) | (61,619 | ) | (20,853 | ) | (13,211 | ) | |||||||||||||
| — | — | — | — | — | — | 22 | ||||||||||||||||||||
| 18,638 | 55,777 | (2,770 | ) | (170 | ) | 234,753 | 147,722 | 112,823 | ||||||||||||||||||
| 38,171 | 70,761 | — | — | — | — | — | ||||||||||||||||||||
| 11 | 3 | — | — | — | — | — | ||||||||||||||||||||
| (16,976 | ) | (12,322 | ) | — | — | — | — | — | ||||||||||||||||||
| 21,206 | 58,442 | — | — | — | — | — | ||||||||||||||||||||
| 44,142 | 114,219 | 129,567 | (52,549 | ) | 234,753 | 147,722 | 112,823 | |||||||||||||||||||
| 72,146 | 135,064 | 122,849 | (28,996 | ) | 288,450 | 157,202 | 130,904 | |||||||||||||||||||
| 135,064 | — | 76,744 | 105,740 | 294,040 | 136,838 | 5,934 | ||||||||||||||||||||
| $ | 207,210 | $ | 135,064 | $ | 199,593 | $ | 76,744 | $ | 582,490 | $ | 294,040 | $ | 136,838 | |||||||||||||
| $ | — | $ | 1 | $ | — | $ | — | $ | 2,023 | $ | 1,071 | $ | (125 | ) | ||||||||||||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 133
consolidated statement of cash flows (000)
For the year ended September 30, 2014
City National Rochdale Fixed Income Opportunities Fund | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
| Net Increase in Net Assets from Operations | $ | 66,779 | ||
| Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash Used in Operating Activities: | ||||
| Purchase of Investment Securities | (2,374,921 | ) | ||
| Proceeds from Disposition of Investment Securities | 2,000,426 | |||
| Amortization (Accretion of Market Discount) | (900 | ) | ||
| Premium Payments | (11,577 | ) | ||
| Net Realized Gain on Investments | (4,871 | ) | ||
| Net Change in Unrealized Depreciation on Investments | 2,897 | |||
| Changes in assets: | ||||
| Cash held in escrow | 5,000 | |||
| Foreign currency | (1,076 | ) | ||
| Receivable for investment securities sold | (5,776 | ) | ||
| Dividends and interest receivable | (5,956 | ) | ||
| Unrealized loss on forward foreign currency contracts | (2,067 | ) | ||
| Prepaid expenses | 9 | |||
| Changes in liabilities: | ||||
| Payable for investment securities purchased | (2,607 | ) | ||
| Due to custodian | 1,198 | |||
| Unrealized gain on forward foreign currency contracts | (444 | ) | ||
| Investment advisory fees payable | 217 | |||
| Shareholder servicing and distribution fees payable | 214 | |||
| Administrative fees payable | 5 | |||
| Accrued expense payable | 212 | |||
| Net Cash Used in Operating Activities | (333,238 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
| Proceeds from Shares Issued | 627,716 | |||
| Cost of Shares Redeemed | (260,306 | ) | ||
| Cash received from merger | 759 | |||
| Distributions | (26,834 | ) | ||
| Net Cash Provided by Financing Activities | 341,335 | |||
| Net Change in Cash | 8,097 | |||
| Cash at beginning of year | 4,843 | |||
| Cash at end of year | $ | 12,940 | ||
| NON-CASH FINANCING ACTIVITIES: | ||||
| Non-cash net assets acquired in fund merger | $ | 57,759 | ||
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 134
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CITY NATIONAL ROCHDALE FUNDS | PAGE 135
financial highlights
For a Share Outstanding Throughout Each Period
For 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) | ||||||||||||||||||||||||||||
| City National Rochdale Government Money Market Fund | ||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on June 21, 1999) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 3,174,351 | 0.08 | % | 0.01 | % | 0.88 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 3,040,396 | 0.13 | 0.01 | 0.97 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 2,808,068 | 0.14 | 0.01 | 1.11 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||
| Class S (commenced operations on October 6, 1999) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 705,932 | 0.08 | % | 0.01 | % | 1.08 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 475,151 | 0.12 | 0.01 | 1.11 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 288,922 | 0.14 | 0.01 | 1.11 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||
| Servicing Class (commenced operations on April 3, 2000)^^ | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 211,958 | 0.08 | % | 0.01 | % | 0.58 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 128,423 | 0.12 | 0.01 | 0.61 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 96,452 | 0.14 | 0.01 | 0.61 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||
| City National Rochdale Prime Money Market Fund | ||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on December 19, 2012) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 53,975 | 0.15 | % | 0.01 | % | 0.33 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.02 | 11,207 | 0.18 | 0.02 | 0.35 | |||||||||||||||||||||||||
| Class N (commenced operations on October 18, 1999) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 333,463 | 0.15 | % | 0.01 | % | 0.88 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.02 | 424,972 | 0.20 | 0.02 | 0.96 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 394,036 | 0.24 | 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 | |||||||||||||||||||||||||
| Class S (commenced operations on October 26, 1999) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 198,237 | 0.15 | % | 0.01 | % | 1.08 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 207,252 | 0.21 | 0.01 | 1.09 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 256,060 | 0.24 | 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 | |||||||||||||||||||||||||
| Servicing Class (commenced operations on March 23, 1998)^^ | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 463,633 | 0.15 | % | 0.01 | % | 0.58 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.02 | 613,445 | 0.19 | 0.02 | 0.59 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 506,728 | 0.23 | 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 | ||||||||||||||||||||||||||
| City National Rochdale California Tax Exempt Money Market Fund | ||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on June 21, 1999) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 623,561 | 0.05 | % | 0.01 | % | 0.90 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 673,208 | 0.11 | 0.01 | 0.97 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 666,532 | 0.12 | 0.01 | 1.11 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||
| Class S (commenced operations on November 12, 1999) | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 81,412 | 0.05 | % | 0.01 | % | 1.10 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 79,312 | 0.11 | 0.01 | 1.11 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 99,970 | 0.12 | 0.01 | 1.11 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||
| Servicing Class (commenced operations on April 3, 2000)^^ | ||||||||||||||||||||||||||||||||||||
| 2014 | $ | 1.00 | $ | 0.000 | ^ | $ | (0.000 | )^ | $ | 1.00 | 0.01 | % | $ | 201,369 | 0.05 | % | 0.01 | % | 0.60 | % | ||||||||||||||||
| 2013 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.01 | 165,740 | 0.10 | 0.01 | 0.61 | |||||||||||||||||||||||||
| 2012 | 1.00 | 0.000 | ^ | (0.000 | )^ | 1.00 | 0.00 | 137,665 | 0.12 | 0.01 | 0.61 | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||
| † | 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. |
| ^^ | Effective November 28, 2012, 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. |
| * | 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 136
| 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 | |||||||||||||||||||||||||||||||||||||
| City National Rochdale Limited Maturity Fixed Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on October 22,1988) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 11.16 | $ | 0.07 | $ | 0.01 | $ | (0.07 | ) | $ | — | $ | 11.17 | 0.75 | % | $ | 23,035 | 0.67 | % | 0.64 | % | 0.95 | % | 49 | % | |||||||||||||||||||||||
| 2013 | 11.25 | 0.06 | (0.08 | ) | (0.07 | ) | — | 11.16 | (0.15 | ) | 40,205 | 0.64 | 0.51 | 0.64 | 32 | |||||||||||||||||||||||||||||||||
| 2012 | 11.15 | 0.09 | 0.12 | (0.11 | ) | — | 11.25 | 1.88 | 48,141 | 0.68 | 0.85 | 0.68 | 87 | |||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| Class N (commenced operations on October 22, 2004) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 11.16 | $ | 0.05 | $ | 0.01 | $ | (0.05 | ) | $ | — | $ | 11.17 | 0.50 | % | $ | 4,620 | 0.92 | % | 0.40 | % | 1.47 | % | 49 | % | |||||||||||||||||||||||
| 2013 | 11.26 | 0.03 | (0.08 | ) | (0.05 | ) | — | 11.16 | (0.49 | ) | 4,530 | 0.89 | 0.26 | 1.14 | 32 | |||||||||||||||||||||||||||||||||
| 2012 | 11.15 | 0.08 | 0.11 | (0.08 | ) | — | 11.26 | 1.71 | 4,347 | 0.94 | 0.69 | 1.19 | 87 | |||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| City National Rochdale Government Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on February 1, 2012) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.47 | $ | 0.06 | $ | 0.02 | $ | (0.06 | ) | $ | — | $ | 10.49 | 0.80 | % | $ | 56,722 | 0.53 | % | 0.59 | % | 0.57 | % | 59 | % | |||||||||||||||||||||||
| 2013 | 10.73 | 0.11 | (0.23 | ) | (0.14 | ) | — | 10.47 | (1.11 | ) | 56,351 | 0.54 | 1.03 | 0.52 | 28 | |||||||||||||||||||||||||||||||||
| 2012 | 10.75 | 0.05 | 0.04 | (0.11 | ) | — | 10.73 | 0.01 | 55,502 | 0.55 | 0.96 | 0.53 | 55 | |||||||||||||||||||||||||||||||||||
| Class N (commenced operations on April 13, 2000) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.49 | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | $ | — | $ | 10.51 | 0.29 | % | $ | 2,027 | 1.03 | % | 0.10 | % | 1.07 | % | 59 | % | |||||||||||||||||||||||
| 2013 | 10.75 | 0.04 | (0.21 | ) | (0.09 | ) | — | 10.49 | (1.60 | ) | 2,505 | 1.03 | 0.38 | 1.02 | 28 | |||||||||||||||||||||||||||||||||
| 2012 | 10.77 | 0.06 | 0.05 | (0.12 | ) | (0.01 | ) | 10.75 | 0.01 | 2,970 | 1.03 | 0.56 | 1.03 | 55 | ||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| Servicing Class (commenced operations on January 14, 2000)^ | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.47 | $ | 0.04 | $ | 0.02 | $ | (0.04 | ) | $ | — | $ | 10.49 | 0.54 | % | $ | 113,485 | 0.78 | % | 0.34 | % | 0.82 | % | 59 | % | |||||||||||||||||||||||
| 2013 | 10.72 | 0.07 | (0.20 | ) | (0.12 | ) | — | 10.47 | (1.26 | ) | 114,953 | 0.79 | 0.62 | 0.77 | 28 | |||||||||||||||||||||||||||||||||
| 2012 | 10.75 | 0.09 | 0.03 | (0.14 | ) | (0.01 | ) | 10.72 | 0.01 | 124,121 | 0.77 | 0.83 | 0.78 | 55 | ||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| City National Rochdale Corporate Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on April 13, 2000) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.71 | $ | 0.14 | $ | 0.03 | $ | (0.14 | ) | $ | (0.07 | ) | $ | 10.67 | 1.64 | % | $ | 4,008 | 1.01 | % | 1.32 | % | 1.07 | % | 37 | % | ||||||||||||||||||||||
| 2013 | 10.91 | 0.16 | (0.10 | ) | (0.17 | ) | (0.09 | ) | 10.71 | 0.49 | 3,100 | 1.00 | 1.51 | 1.00 | 29 | |||||||||||||||||||||||||||||||||
| 2012 | 10.59 | 0.22 | 0.37 | (0.22 | ) | (0.05 | ) | 10.91 | 0.06 | 2,535 | 1.00 | 2.05 | 1.00 | 31 | ||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
Servicing Class (commenced operations on January 14, 2000)^ | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.70 | $ | 0.17 | $ | 0.03 | $ | (0.17 | ) | $ | (0.07 | ) | $ | 10.66 | 1.89 | % | $ | 142,766 | 0.76 | % | 1.57 | % | 0.82 | % | 37 | % | ||||||||||||||||||||||
| 2013 | 10.90 | 0.19 | (0.11 | ) | (0.19 | ) | (0.09 | ) | 10.70 | 0.75 | 135,184 | 0.75 | 1.77 | 0.75 | 29 | |||||||||||||||||||||||||||||||||
| 2012 | 10.58 | 0.25 | 0.37 | (0.25 | ) | (0.05 | ) | 10.90 | 0.06 | 133,787 | 0.75 | 2.30 | 0.75 | 31 | ||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| City National Rochdale California Tax Exempt Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on April 13, 2000) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.54 | $ | 0.13 | $ | 0.22 | $ | (0.13 | ) | $ | (0.02 | ) | $ | 10.74 | 3.31 | % | $ | 10,955 | 0.88 | % | 1.17 | % | 1.02 | % | 36 | % | ||||||||||||||||||||||
| 2013 | 10.86 | 0.18 | (0.22 | ) | (0.18 | ) | (0.10 | ) | 10.54 | (0.45 | ) | 8,197 | 0.87 | 1.64 | 0.86 | 34 | ||||||||||||||||||||||||||||||||
| 2012 | 10.70 | 0.22 | 0.23 | (0.22 | ) | (0.07 | ) | 10.86 | 4.32 | 6,093 | 0.83 | 2.07 | 0.86 | 27 | ||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| Servicing Class (commenced operations on January 14, 2000)^ | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.51 | $ | 0.15 | $ | 0.22 | $ | (0.15 | ) | $ | (0.02 | ) | $ | 10.71 | 3.58 | % | $ | 70,698 | 0.63 | % | 1.43 | % | 0.77 | % | 36 | % | ||||||||||||||||||||||
| 2013 | 10.83 | 0.20 | (0.22 | ) | (0.20 | ) | (0.10 | ) | 10.51 | (0.20 | ) | 59,149 | 0.62 | 1.91 | 0.62 | 34 | ||||||||||||||||||||||||||||||||
| 2012 | 10.67 | 0.25 | 0.23 | (0.25 | ) | (0.07 | ) | 10.83 | 4.59 | 51,840 | 0.58 | 2.34 | 0.61 | 27 | ||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| † | 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 137
financial highlights/consolidated financial highlights
For a Share Outstanding Throughout Each Period
For 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 | |||||||||||||||||||||||||||||||||||||
| City National Rochdale Municipal High Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on December 30, 2013) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.00 | $ | 0.32 | $ | 0.71 | $ | (0.32 | ) | $ | — | $ | 10.71 | 10.38 | % | $ | 201,200 | 1.08 | % | 4.02 | % | 1.08 | % | 1 | % | |||||||||||||||||||||||
| Servicing Class (commenced operations on December 30, 2013) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.00 | $ | 0.34 | $ | 0.72 | $ | (0.34 | ) | $ | — | $ | 10.72 | 10.68 | % | $ | 220,851 | 0.83 | % | 4.27 | % | 0.84 | % | 1 | % | |||||||||||||||||||||||
| City National Rochdale High Yield Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on February 2, 2012) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 8.59 | $ | 0.53 | $ | 0.19 | $ | (0.53 | ) | $ | (0.02 | ) | $ | 8.76 | 8.49 | % | $ | 40,639 | 0.70 | % | 5.98 | % | 0.78 | % | 59 | % | ||||||||||||||||||||||
| 2013 | 8.64 | 0.60 | (0.05 | ) | (0.60 | ) | — | 8.59 | 6.49 | 39,219 | 0.75 | 6.87 | 0.75 | 56 | ||||||||||||||||||||||||||||||||||
| 2012 | 8.39 | 0.43 | 0.26 | (0.44 | ) | — | 8.64 | 8.39 | 40,891 | 0.85 | 7.66 | 0.85 | 41 | |||||||||||||||||||||||||||||||||||
| Class N (commenced operations on January 14, 2000) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 8.59 | $ | 0.49 | $ | 0.18 | $ | (0.48 | ) | $ | (0.02 | ) | $ | 8.76 | 7.95 | % | $ | 26,166 | 1.20 | % | 5.49 | % | 1.28 | % | 59 | % | ||||||||||||||||||||||
| 2013 | 8.64 | 0.56 | (0.05 | ) | (0.56 | ) | — | 8.59 | 5.95 | 34,371 | 1.27 | 6.37 | 1.26 | 56 | ||||||||||||||||||||||||||||||||||
| 2012 | 7.98 | 0.62 | 0.66 | (0.62 | ) | — | 8.64 | 16.56 | 38,629 | 1.38 | 7.43 | 1.39 | 41 | |||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| Servicing Class (commenced operations on January 14, 2000)^ | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 8.59 | $ | 0.51 | $ | 0.19 | $ | (0.51 | ) | $ | (0.02 | ) | $ | 8.76 | 8.22 | % | $ | 43,974 | 0.95 | % | 5.83 | % | 1.02 | % | 59 | % | ||||||||||||||||||||||
| 2013 | 8.63 | 0.58 | (0.04 | ) | (0.58 | ) | — | 8.59 | 6.35 | 88,949 | 0.99 | 6.58 | 0.99 | 56 | ||||||||||||||||||||||||||||||||||
| 2012 | 7.98 | 0.65 | 0.65 | (0.65 | ) | — | 8.63 | 16.77 | 74,245 | 1.08 | 7.76 | 1.09 | 41 | |||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| City National Rochdale Intermediate Fixed Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on December 20, 2013) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 25.89 | $ | 0.53 | $ | 0.33 | $ | (0.52 | ) | $ | — | $ | 26.23 | 3.35 | % | $ | 8,784 | 0.51 | % | 2.57 | % | 0.52 | % | 28 | % | |||||||||||||||||||||||
| Class N (commenced operations on December 31, 1999) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 25.89 | $ | 0.57 | $ | 0.34 | $ | (0.57 | ) | $ | — | $ | 26.23 | 3.54 | % | $ | 204,264 | 1.01 | % | 2.17 | % | 1.04 | % | 28 | % | |||||||||||||||||||||||
| 2013* | 26.76 | 0.60 | (0.85 | ) | (0.62 | ) | — | 25.89 | (0.96 | ) | 155,740 | 1.02 | 3.04 | 1.04 | 21 | |||||||||||||||||||||||||||||||||
| 2012 | 25.68 | 0.95 | 1.08 | (0.95 | ) | — | 26.76 | 7.99 | 130,359 | 1.13 | 3.59 | 1.12 | 26 | |||||||||||||||||||||||||||||||||||
| 2011 | 25.89 | 0.97 | (0.23 | ) | (0.95 | ) | — | 25.68 | 2.88 | 107,957 | 1.15 | 3.74 | 1.15 | 58 | ||||||||||||||||||||||||||||||||||
| 2010 | 25.11 | 0.95 | 0.79 | (0.96 | ) | — | 25.89 | 7.01 | 75,900 | 1.15 | 3.79 | 1.12 | 52 | |||||||||||||||||||||||||||||||||||
| City National Rochdale Fixed Income Opportunities Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on July 1, 2009) | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 26.83 | $ | 1.28 | $ | 0.38 | $ | (1.17 | ) | $ | (0.13 | ) | $ | 27.19 | 6.20 | % | $ | 1,391,497 | 1.11 | %(3) | 4.65 | % | 1.12 | %(3) | 82 | % | ||||||||||||||||||||||
| 2013* | 27.20 | 1.28 | (0.43 | ) | (1.22 | ) | — | ^^ | 26.83 | 3.16 | 924,444 | 1.08 | 6.24 | 1.11 | 52 | |||||||||||||||||||||||||||||||||
| 2012 | 26.16 | 1.70 | 1.04 | (1.64 | ) | (0.06 | ) | 27.20 | 10.70 | 654,095 | 1.12 | 6.29 | 1.12 | 41 | ||||||||||||||||||||||||||||||||||
| 2011 | 27.34 | 1.58 | (1.02 | ) | (1.45 | ) | (0.29 | ) | 26.16 | 2.04 | 497,684 | 1.16 | 5.80 | 1.16 | 60 | |||||||||||||||||||||||||||||||||
| 2010 | 26.56 | 1.79 | 1.07 | (1.79 | ) | (0.29 | ) | 27.34 | 11.10 | 257,900 | 1.18 | 6.60 | 1.18 | 62 | ||||||||||||||||||||||||||||||||||
| * | For the nine months ended September 30, 2013 and the year or period ended December 31. Effective March 29, 2013, Rochdale Investment Trust’s Rochdale Intermediate Fixed Income Portfolio and Rochdale Fixed Income Opportunities Portfolio (each a “Predecessor Fund”) were merged into City National Rochdale Fund’s Intermediate Fixed Income Fund and Fixed Income Opportunities Fund, respectively. Information presented for the period prior to March 29, 2013, is that of the respective Predecessor Fund, which had a December 31 fiscal year end. See Note 1 in Notes to Financial Statements for additional information. |
| † | 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. |
| ^^ | Amount represents less than $0.01 per share. |
| (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. |
| (3) | The expense ratio includes acquired fund fee expenses from the investment in Subsidiary. Had this expense been excluded, the ratios would have been 1.09% and 1.10%, respectively. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 138
| Net Asset Value Beginning of Period | Net Investment Income† | Net Realized and Unrealized Gains (Losses) on Securities† | Redem-ption Fees | Dividends from Net Investment Income | Distri-butions from Realized Capital Gains | Distrib-utions from Return of Capital | 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 | |||||||||||||||||||||||||||||||||||||||||||
| City National Rochdale Multi-Asset Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on October 1, 2007) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.70 | $ | 0.07 | $ | 0.32 | $ | — | $ | (0.08 | ) | $ | — | $ | — | $ | 11.01 | 3.67 | % | $ | 18,760 | 1.49 | % | 0.63 | % | 1.53 | % | 75 | % | |||||||||||||||||||||||||||
| 2013 | 10.44 | 0.15 | 0.29 | — | (0.18 | ) | — | — | 10.70 | 4.25 | 21,966 | 1.09 | 1.45 | 1.10 | 56 | |||||||||||||||||||||||||||||||||||||||||
| 2012 | 9.88 | 0.18 | 0.57 | — | (0.19 | ) | — | — | 10.44 | 7.61 | 25,001 | 1.09 | 1.72 | 1.10 | 89 | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||
| Servicing Class (commenced operations on October 1, 2007)^^ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 10.71 | $ | 0.10 | $ | 0.32 | $ | — | $ | (0.11 | ) | $ | — | $ | — | $ | 11.02 | 3.94 | % | $ | 6,045 | 1.24 | % | 0.87 | % | 1.29 | % | 75 | % | |||||||||||||||||||||||||||
| 2013 | 10.45 | 0.18 | 0.29 | — | (0.21 | ) | — | — | 10.71 | 4.51 | 4,938 | 0.84 | 1.70 | 0.84 | 56 | |||||||||||||||||||||||||||||||||||||||||
| 2012 | 9.88 | 0.20 | 0.57 | — | (0.20 | ) | — | — | 10.45 | 7.89 | 7,230 | 0.84 | 1.99 | 0.84 | 89 | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||
| City National Rochdale Dividend & Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on June 1, 1999) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 32.25 | $ | 0.95 | $ | 2.96 | $ | — | $ | (1.08 | ) | $ | — | $ | — | $ | 35.08 | 12.20 | % | $ | 172,917 | 1.09 | % | 2.74 | % | 1.14 | % | 16 | % | |||||||||||||||||||||||||||
| 2013* | 29.07 | 0.62 | 3.37 | — | (0.54 | ) | — | (0.27 | ) | 32.25 | 13.74 | 155,807 | 1.16 | 2.55 | 1.19 | 17 | ||||||||||||||||||||||||||||||||||||||||
| 2012 | 28.06 | 0.92 | 1.17 | — | (0.92 | ) | — | (0.16 | ) | 29.07 | 7.49 | 116,138 | 1.38 | 3.18 | 1.37 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 2011 | 26.73 | 0.90 | 1.46 | 0.01 | (0.88 | ) | — | (0.16 | ) | 28.06 | 9.02 | 107,012 | 1.40 | 3.27 | 1.40 | 21 | ||||||||||||||||||||||||||||||||||||||||
| 2010 | 23.71 | 0.82 | 3.24 | — | (0.81 | ) | — | (0.23 | ) | 26.73 | 17.48 | 70,800 | 1.35 | 3.29 | 1.35 | 16 | ||||||||||||||||||||||||||||||||||||||||
| City National Rochdale U.S. Core Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on December 3, 2012) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 12.13 | $ | 0.08 | $ | 2.30 | $ | — | $ | (0.08 | ) | $ | (0.22 | ) | $ | — | $ | 14.21 | 19.86 | % | $ | 6,759 | 0.53 | % | 0.59 | % | 0.53 | % | 60 | % | ||||||||||||||||||||||||||
| 2013 | 10.00 | 0.14 | 2.08 | — | (0.09 | ) | — | — | 12.13 | 22.23 | — | 0.00 | (3) | 1.57 | 0.00 | (3) | 32 | |||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on December 3, 2012) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 12.08 | $ | 0.01 | $ | 2.23 | $ | — | $ | (0.01 | ) | $ | (0.22 | ) | $ | — | $ | 14.09 | 18.80 | % | $ | 97,205 | 1.03 | % | 0.09 | % | 1.04 | % | 60 | % | ||||||||||||||||||||||||||
| 2013 | 10.00 | 0.05 | 2.08 | — | (0.05 | ) | — | — | 12.08 | 21.33 | 66,145 | 0.99 | 0.52 | 0.99 | 32 | |||||||||||||||||||||||||||||||||||||||||
| Servicing Class (commenced operations on December 3, 2012) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 12.09 | $ | 0.05 | $ | 2.24 | $ | — | $ | (0.05 | ) | $ | (0.22 | ) | $ | — | $ | 14.11 | 19.15 | % | $ | 103,246 | 0.78 | % | 0.34 | % | 0.79 | % | 60 | % | ||||||||||||||||||||||||||
| 2013 | 10.00 | 0.07 | 2.08 | — | (0.06 | ) | — | — | 12.09 | 21.60 | 68,919 | 0.74 | 0.73 | 0.74 | 32 | |||||||||||||||||||||||||||||||||||||||||
| * | For the nine months ended September 30, 2013 and the year or period ended December 31. Effective March 29, 2013, the Rochdale Investment Trust’s Rochdale Dividend & Income Portfolio (the “Predecessor Fund”) was merged into City National Rochdale Funds’ Dividend & Income Fund. Information presented for the period prior to March 29, 2013, is that of the Predecessor Fund, which had a December 31 fiscal year end. See Note 1 in Notes to Financial Statements for additional information. |
| † | 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 $0.01 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. |
| (3) | Amount represents less than 0.01%. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 139
financial highlights/consolidated financial highlights
For a Share Outstanding Throughout Each Period
For the year or period ended September 30,
| Net Asset Value Beginning of Period | Net Investment Income (Loss)† | Net Realized and Unrealized Gains (Losses) on Securities† | Redem- ption Fees | Dividends from Net Investment Income | Distri-butions from Realized Capital Gains | Distri-butions from Return of Capital | 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 | |||||||||||||||||||||||||||||||||||||||||||
| City National Rochdale Socially Responsible Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class (commenced operations on January 3, 2005) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 12.28 | $ | 0.19 | $ | 1.18 | $ | — | $ | (0.18 | ) | $ | (2.02 | ) | $ | — | $ | 11.45 | 12.46 | % | $ | 172,830 | 0.89 | % | 1.62 | % | 0.96 | % | 34 | % | ||||||||||||||||||||||||||
| 2013 | 10.06 | 0.12 | 2.22 | — | (0.12 | ) | — | — | 12.28 | 23.38 | 45,357 | 0.87 | 1.10 | 0.87 | 42 | |||||||||||||||||||||||||||||||||||||||||
| 2012 | 8.38 | 0.13 | 1.68 | — | (0.13 | ) | — | — | 10.06 | 21.63 | 80,109 | 0.90 | 1.37 | 0.90 | 38 | |||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on August 12, 2005) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 12.26 | $ | 0.18 | $ | 1.15 | $ | — | $ | (0.15 | ) | $ | (2.02 | ) | $ | — | $ | 11.42 | 12.11 | % | $ | 26,763 | 1.14 | % | 1.55 | % | 1.46 | % | 34 | % | ||||||||||||||||||||||||||
| 2013 | 10.04 | 0.09 | 2.22 | — | (0.09 | ) | — | — | 12.26 | 23.12 | 31,387 | 1.13 | 0.81 | 1.38 | 42 | |||||||||||||||||||||||||||||||||||||||||
| 2012 | 8.37 | 0.11 | 1.67 | — | (0.11 | ) | — | — | 10.04 | 21.28 | 25,631 | 1.15 | 1.13 | 1.40 | 38 | |||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||
| City National Rochdale Emerging Markets Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Class N (commenced operations on December 14, 2011) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2014 | $ | 34.24 | $ | 0.22 | $ | 4.55 | $ | — | $ | (0.11 | ) | $ | — | $ | — | $ | 38.90 | 13.96 | % | $ | 582,490 | 1.61 | % | 0.58 | % | 1.64 | % | 42 | % | |||||||||||||||||||||||||||
| 2013* | 32.31 | 0.33 | 1.60 | — | — | — | — | 34.24 | 5.97 | 294,040 | 1.62 | 1.31 | 1.69 | 25 | ||||||||||||||||||||||||||||||||||||||||||
| 2012 | 25.28 | 0.04 | 7.00 | 0.01 | — | — | (0.02 | ) | 32.31 | 27.87 | 136,838 | 1.97 | 0.15 | 1.94 | 69 | |||||||||||||||||||||||||||||||||||||||||
| 2011 | 25.00 | (0.02 | )(3) | 0.30 | — | ^ | — | — | — | 25.28 | 1.12 | 5,934 | 2.25 | (2.15 | ) | 9.74 | 6 | |||||||||||||||||||||||||||||||||||||||
| * | For the nine months ended September 30, 2013 and the year or period ended December 31. Effective March 29, 2013, the Rochdale Investment Trust’s Rochdale Emerging Markets Portfolio (the “Predecessor Fund”) was merged into City National Rochdale Fund’s Emerging Markets Fund. Information presented for the period prior to March 29, 2013, is that of the Predecessor Fund, which had a December 31 fiscal year end. See Note 1 in Notes to Financial Statements for additional information. |
| † | 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 $0.01 per share. |
| (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. |
| (3) | Net investment loss per share is calculated using ending balances prior to consideration of adjustments for permanent book and tax differences. |
| Amounts designated as “—” are either $0 or have been rounded to $0. |
See accompanying notes to financial statements.
CITY NATIONAL ROCHDALE FUNDS | PAGE 140
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
| 1. | ORGANIZATION: |
City National Rochdale 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 16 series (each a “Fund” and collectively, the “Funds”): City National Rochdale Government Money Market Fund (“Government Money Market Fund”), City National Rochdale Prime Money Market Fund (“Prime Money Market Fund”), and City National Rochdale California Tax Exempt Money Market Fund (“California Money Market Fund”) (collectively, the “Money Market Funds”); City National Rochdale Limited Maturity Fixed Income Fund (“Limited Maturity Fixed Income Fund”), City National Rochdale Government Bond Fund (“Government Bond Fund”), City National Rochdale Corporate Bond Fund (“Corporate Bond Fund”), City National Rochdale California Tax Exempt Bond Fund (“California Tax Exempt Bond Fund”), City National Rochdale Municipal High Income Fund (“Municipal High Income Fund”), City National Rochdale High Yield Bond Fund (“High Yield Bond Fund”), City National Rochdale Intermediate Fixed Income Fund (“Intermediate Fixed Income Fund”), and City National Rochdale Fixed Income Opportunities Fund (“Fixed Income Opportunities Fund”) (collectively, the “Fixed Income Funds”); City National Rochdale Multi-Asset Fund (“Multi-Asset Fund”); City National Rochdale Dividend & Income Fund (“Dividend & Income Fund”), City National Rochdale U.S. Core Equity Fund (“U.S. Core Equity Fund”), City National Rochdale Socially Responsible Equity Fund (“Socially Responsible Equity Fund”), and City National Rochdale Emerging Markets Fund (“Emerging Markets Fund”) (collectively, the “Equity Funds”).
On December 11, 2012, the Board of Trustees of the Rochdale Investment Trust, an open-end management investment company registered under the 1940 Act, approved the reorganization of each Portfolio of the Rochdale Investment Trust into a corresponding Fund of the Trust. This included the Rochdale Dividend & Income Portfolio, the Rochdale Intermediate Fixed Income Portfolio, the Rochdale Fixed Income Opportunities Portfolio and the Rochdale Emerging Markets Portfolio. The effective date of the reorganization of each Portfolio (each a “Predecessor Fund” and collectively the “Predecessor Funds”) into a corresponding Fund of the Trust was March 29, 2013. Each Predecessor Fund was the accounting survivor in the reorganization and, therefore, the statements of changes in net assets and financial highlights of each corresponding Fund reflect the financial information of the corresponding Predecessor Fund through March 28, 2013.
Prior to September 10, 2013, the name of the Trust was CNI Charter Funds.
Effective September 10, 2013, Rochdale Investment Management, LLC, investment manager of the Intermediate Fixed Income Fund, Fixed Income Opportunities Fund, Dividend & Income Fund and Emerging Markets Fund, changed its name to City National Rochdale, LLC (“City National Rochdale”). Also effective September 10, 2013, City National Asset Management, Inc. (“CNAM”), a wholly-owned subsidiary of City National Bank and investment manager of all the Funds except the Intermediate Fixed Income Fund, Fixed Income Opportunities Fund, Dividend & Income Fund and Emerging Markets Fund, reorganized into City National Rochdale. City National Rochdale, LLC (“City National Rochdale”) acts as the investment adviser to the Funds.
On September 17, 2013, the Board of Trustees of the Trust approved the reorganizations of the City National Rochdale Full Maturity Fixed Income Fund into the Intermediate Fixed Income Fund and the City National Rochdale Diversified Equity Fund into the U.S. Core Equity Fund. The reorganizations were effective as of the close of business on December 20, 2013 and March 21, 2014, respectively.
On May 30, 2014 the Board of Trustees of the Trust approved the reorganization of City National Rochdale Alternative Total Return Fund LLC, an affiliate of City National Rochdale, into the Fixed Income Opportunities Fund. The reorganization was effective as of the close of business on May 30, 2014.
The Municipal High Income Fund commenced operations on December 30, 2013.
Effective November 28, 2012, Institutional Class Shares were redesignated Servicing Class Shares for the Government Money Market Fund, Prime Money Market Fund and California Tax Exempt Money Market Fund. Also effective November 28, 2012, the Prime Money Market Fund opened a new Institutional Class.
On December 20, 2013, a new Institutional Class of the Intermediate Fixed Income Fund opened.
On January 31, 2014, the Institutional Class of the Multi-Asset Fund closed.
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 and the Emerging Markets Fund, which are non-diversified. The Funds’ prospectus provides descriptions of each Fund’s investment objectives, policies and strategies.
CITY NATIONAL ROCHDALE FUNDS | PAGE 141
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
| 2. | SIGNIFICANT ACCOUNTING POLICIES: |
The following is a summary of significant accounting policies followed by the Funds.
Use of Estimates – The Funds are investment companies that conform with accounting principles generally accepted in the United States of America (“GAAP”). Therefore the funds follow the accounting and reporting guidance for investment companies. The preparation of financial statements in conformity with 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. Investments in underlying registered investment companies are valued at their respective daily net assets in accordance with pricing procedures approved by their respective boards. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. 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 one or more independent brokers.
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.
Investments in life settlement policies (“Policies”) are valued using the fair value method of accounting. The Fair Value Procedures recognize that the Policies are illiquid and that no market currently exists for the Policies. Under the fair value method, the Fixed Income Opportunities Fund recognizes the initial investment in its Policies at the transaction price. In subsequent periods, the Fund re-measures the investment in its Policies at fair value daily and recognizes changes in fair value in earnings, less Policy premiums paid and continuing costs, plus proceeds from Policy maturities in the period in which the changes occur. Due to the inherent uncertainty of this method of valuation, the estimated values may differ significantly from the value that would have been used had a ready market value for the investment existed, and the difference could be material. Life settlement contracts are included in Level 3 of the fair value hierarchy.
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:
| • | 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). |
CITY NATIONAL ROCHDALE FUNDS | PAGE 142
For the year ended September 30, 2014, there have been no changes to the Funds’ fair valuation methodologies. For more details of the investment classification, refer to the Schedules of Investments/Consolidated Schedule of Investments.
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, (iii) equally among the Funds, or (iv) a combination of the above, 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 except for the Intermediate Fixed Income Fund, Fixed Income Opportunities Fund and Dividend & Income Fund. Dividends from net investment income are declared and paid quarterly for the Intermediate Fixed Income Fund, Fixed Income Opportunities Fund, Dividend & Income Fund, Multi-Asset Fund and Equity Funds except for the Emerging Markets Fund. Dividends from net investment income are declared and paid annually for the Emerging Markets Fund. Distributions from net realized capital gains are distributed to shareholders at least annually.
Foreign Currency – Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot market rate of exchange at the time of valuation. Purchases and sales of investments and dividend and interest income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such translations. The gain or loss upon the sale of a security resulting from changes in foreign exchange rates is included with net realized and unrealized gain or loss from investments, as appropriate. Foreign securities and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin.
Forward Foreign Currency Contracts – A forward foreign currency contract is an agreement between two parties to buy or sell a currency at a set price on a future date. Forward contracts are marked to market daily and the change in market value is recorded as an unrealized gain (loss) on forward foreign currency contracts in the Statements of Assets and Liabilities/Consolidated Statements of Assets and Liabilities. When a contract is closed, a Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, which is included within realized gain (loss) on foreign currency transactions in the Statements of Operations/Consolidated Statement of
CITY NATIONAL ROCHDALE FUNDS | PAGE 143
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
Operations. A Fund could be at risk if the counterparties are unable to meet the terms of the contracts or if the value of the currency changes unfavorably.
To reduce counterparty risk with respect to over-the-counter (“OTC”) transactions, the Fixed Income Opportunities Fund has entered into master netting arrangements, established within the Fixed Income Opportunities Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) master agreements, which allows the Fixed Income Opportunities Fund to make (or to have an entitlement to receive) a single net payment in the event of default (close-out netting) for outstanding payables and receivables with respect to certain OTC positions in forward foreign currency contracts for each individual counterparty. In addition, the Fixed Income Opportunities Fund may require that certain counterparties post cash and/or securities in collateral accounts to cover their net payment obligations for those derivative contracts subject to ISDA master agreements. If the counterparty fails to perform under these contracts and agreements, the cash and/or securities will be made available to the Fixed Income Opportunities Fund.
For financial reporting purposes, the Fixed Income Opportunities Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
Collateral terms are contract specific for OTC derivatives. For derivatives traded under an ISDA master agreement, the collateral requirements are typically calculated by netting the mark to market amount of each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fixed Income Opportunities Fund or the counterparty.
For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fixed Income Opportunities Fund, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral. Non-cash collateral pledged by the Fixed Income Opportunities Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party must exceed a minimum transfer amount threshold before a transfer has to be made. To the extent amounts due to the Fixed Income Opportunities Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fixed Income Opportunities Fund bears the risk of loss from counterparty nonperformance.
The following table presents, by derivative type, the Fixed Income Opportunities Fund’s OTC derivative assets net of the related collateral posted for the benefit of the Fixed Income Opportunities Fund at September 30, 2014 (000):
| Derivative Type | Derivative Assets Subject to a Netting Agreement or Similar Arrangement | Derivative Available for Offset | Collateral Received | Net Amount | ||||||||||||
| Forward Foreign Currency Contracts | $ | 2,132 | $ | (85 | ) | $ | — | $ | 2,047 | |||||||
The following table presents, by derivative type, the Fixed Income Opportunities Fund’s OTC derivative liabilities net of the related collateral posted for the benefit of the Fixed Income Opportunities Fund at September 30, 2014 (000):
| Derivative Type | Derivative Liabilities Subject to a Netting Agreement or Similar Arrangement | Derivative Available for Offset | Collateral Pledged | Net Amount | ||||||||||||
| Forward Foreign Currency Contracts | $ | 85 | $ | (85 | ) | $ | — | $ | — | |||||||
Restricted Securities – Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. A Fund may invest in restricted securities that are consistent with the Fund’s investment objective and investment strategies. A Fund will not invest in a restricted security if, immediately after and as a result of the investment in such security, more than 15% (5% in the case of the Money Market Funds) of the Fund’s net assets would be invested in illiquid securities. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer’s expense either upon demand by the Fund or in connection with another registered offering of the securities. Investments in restricted securities are valued at fair value as determined in good faith in accordance with procedures adopted by the Board of Trustees. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material.
Master Limited Partnerships – Entities commonly referred to as “MLPs” are generally organized under state law as limited partnerships or limited liability companies. The City National Rochdale Dividend & Income Fund may, as a non-principal
CITY NATIONAL ROCHDALE FUNDS | PAGE 144
Investments in Irish Subsidiary – The Fixed Income Opportunities Fund may invest up to 15% of its net assets in life insurance policies and interests related thereto purchased through life settlement transactions. The Fund may invest in life insurance policies and related interests directly or through a wholly-owned subsidiary of the Fund under the laws of Ireland (the “Subsidiary”).
The principal purpose of investment in the Subsidiary is to allow the Fixed Income Opportunities Fund to gain exposure to life insurance policies within the limitations of the federal tax law requirements applicable to regulated investment companies. The Subsidiary is a company organized under the laws of Ireland and is overseen by its own board of directors. Although the Subsidiary has its own board of directors, the Subsidiary is wholly-owned and controlled by the Fund. The Subsidiary is not an investment company registered under the 1940 Act and is not subject to all of the investor protections of the 1940 Act.
Information regarding the Fixed Income Opportunities Fund and the Subsidiary has been consolidated in the Consolidated Schedule of Investments, Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations and Consolidated Statement of Changes in Net Assets.
The Subsidiary commenced operations on October 3, 2013. The net assets of the Subsidiary at September 30, 2014 were $143,664,600, which represented 10.3% of the net assets of the Fixed Income Opportunities Fund.
Investments in Mauritius Subsidiary – To the extent that the Emerging Markets Fund seeks to invest in the securities of Indian companies, it currently intends to do so by investing in shares of a wholly owned, collective investment vehicle (the “Mauritius Subsidiary”) registered with and regulated by the Mauritius Financial Services Commission that is also managed by the Adviser. The Mauritius Subsidiary was formed to allow the Fund’s investments in Indian companies to benefit from a favorable tax treaty between Mauritius and India. In order to do so, the Mauritius Subsidiary will seek to maintain residency in Mauritius.
Redemption Fees – Prior to January 9, 2013, the Predecessor Funds charged a 2% redemption fee on shares redeemed or exchanged within 45 days of purchase. These fees were deducted from the redemption proceeds otherwise payable out of a Predecessor Fund to the shareholder. Each Predecessor Fund retained the fee charged as paid-in capital and such fees became part of the Predecessor Fund’s daily net asset value per share (“NAV”) calculations. Effective January 9, 2013, the Board of Trustees of the Rochdale Investment Trust approved the elimination of the redemption fee charged by the Predecessor Funds.
Investment in Affiliated Security – The Funds may invest excess cash in the Money Market Funds. The Multi-Asset Fund also invests in other series of the Trust.
Deferred Offering Costs – Offering costs, including costs of printing initial prospectuses and legal and registration fees, are amortized over twelve months from inception of a Fund. As of September 30, 2014, the remaining amount still to be amortized for the Municipal High Income Fund was $7,370.
CITY NATIONAL ROCHDALE FUNDS | PAGE 145
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
| 3. | ADMINISTRATION, TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES AGREEMENTS: |
Pursuant to an Amended and Restated Administration Agreement dated January 1, 2013, as amended (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 0.050% of aggregate average daily net assets of the Trust not exceeding $2.0 billion, 0.040% of aggregate average daily net assets of the Trust exceeding $2.0 billion but not exceeding $4 billion, 0.030% of aggregate average daily net assets of the Trust exceeding $4 billion but not exceeding $6 billion, 0.025% of aggregate average daily net assets of the Trust exceeding $6 billion but not exceeding $8 billion, and 0.020% of aggregate average net assets of the Trust exceeding $8 billion. The Trust is subject to a minimum annual fee of $1,800,000 for the first 20 portfolios of the Trust and $90,000 for each portfolio thereafter 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 S Shares and 0.30% of the average daily net assets of the Class N 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, which may be used by the Distributor to provide compensation for sales support and distribution-related activities.
US Bancorp Fund Services, LLC (the “Transfer Agent”) serves as transfer agent for the Trust and provides services at an annual rate of $20,000 per share class for all Funds 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 City National Rochdale), which provide certain shareholder support for their customers who own Class N, Class S or Servicing Class Shares, as applicable. 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 City National Rochdale have agreed to voluntarily waive portions of their shareholder servicing fees with respect to certain Funds. For the year ended September 30, 2014, CNB and City National Rochdale received $6,969,235 in shareholder servicing fees from the Trust.
Certain officers of the Trust are also officers or employees of City National Rochdale or the Administrator. Such officers are paid no fees by the Trust for serving as officers of the Trust.
| 4. | INVESTMENT ADVISORY FEES AND OTHER AGREEMENTS: |
Under the terms of the current investment management agreements, City National Rochdale receives an annual fee equal to a percentage of the average daily net assets of each Fund, 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 |
| Municipal High Income Fund | 0.45 |
| High Yield Bond Fund | 0.60 |
| Intermediate Fixed Income Fund | 0.40 |
| Fixed Income Opportunities Fund | 0.50 |
| Multi-Asset Fund | 0.50 |
| Dividend & Income Fund | 0.50 |
| U.S. Core Equity Fund | 0.40 |
| Socially Responsible Equity Fund | 0.75 |
| Emerging Markets Fund | 1.00 |
Guggenheim Partners Investment Management, LLC (“Guggenheim”) acts as the investment sub-adviser with respect to the High Yield Bond Fund.
Alcentra LTD, All Financial Partners II LLC, Ashmore Investment Management Limited, Federated Investment Management Corp., GML Capital LLP and Seix Investment Advisors LLC act as the investment sub-advisers with respect to the Fixed Income Opportunities Fund.
SKBA Capital Management, LLC acts as the investment sub-adviser with respect to the Socially Responsible Equity Fund.
Waddell & Reed Investment Management Company acts as the investment sub-adviser with respect to the Municipal High Income Fund.
Sub-adviser fees are paid by City National Rochdale.
City National Rochdale has voluntarily 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’
CITY NATIONAL ROCHDALE FUNDS | PAGE 146
| Government Money Market Fund | Prime Money Market Fund | California Tax Exempt Money Market Fund | ||
| Institutional Class | n/a | 0.38% | n/a | |
| Class N | 0.93% | 0.93% | 0.85% | |
| Class S | 1.13% | 1.13% | 1.05% | |
| Servicing Class | 0.63% | 0.63% | 0.55% |
Limited Maturity Fixed Income Fund | Government Bond Fund | Corporate Bond Fund | California Tax Exempt Bond Fund | |
| Institutional Class | 0.67% | 0.53% | n/a | n/a |
| Class N | 0.92% | 1.03% | 1.01% | 0.88% |
| Servicing Class | n/a | 0.78% | 0.76% | 0.63% |
Municipal High Income Fund | High Yield Bond Fund | Intermediate Fixed Income Fund | Fixed Income Opportunities Fund | |
| Institutional Class | n/a | 0.70% | 0.51% | n/a |
| Class N | 1.15% | 1.20% | 1.01% | 1.09% |
| Servicing Class | 0.90% | 0.95% | n/a | n/a |
| Multi-Asset Fund | Dividend & Income Fund | U.S. Core Equity Fund | Socially Responsible Equity Fund | |
| Institutional Class | n/a | n/a | 0.55% | 0.89% |
| Class N | 1.49% | 1.11% | 1.05% | 1.14% |
| Servicing Class | 1.24% | n/a | 0.80% | n/a |
Emerging Markets Fund | ||||
| Institutional Class | n/a | |||
| Class N | 1.61% | |||
| Servicing Class | n/a |
The contractual limitations for the Limited Maturity Fixed Income Fund and Socially Responsible Equity Fund are as follows:
| Limited Maturity Fixed Income Fund | Socially Responsible Equity Fund | |||
| Institutional Class | 1.00% | 1.25% | ||
| Class N | 1.25% | 1.50% |
Any fee reductions or expense reimbursements may be repaid by a Fund to City National Rochdale, within three years after occurrence if such repayments can be achieved within the Fund’s expense limit in effect at the time such expenses were incurred and if certain other conditions are satisfied.
As of September 30, 2014, fees which were previously waived by City National Rochdale (or CNAM, prior to September 10, 2013) which may be subject to possible future reimbursement were as follows:
| Fund | Potential Amount of Recovery (000) | Expiration | |||||
| Government Money Market Fund | $ | 6,662 | 2015 | ||||
| 7,131 | 2016 | ||||||
| 9,264 | 2017 | ||||||
| Prime Money Market Fund | 1,222 | 2015 | |||||
| 1,741 | 2016 | ||||||
| 2,095 | 2017 | ||||||
| California Tax Exempt Money Market Fund | 2,066 | 2015 | |||||
| 2,275 | 2016 | ||||||
| 2,592 | 2017 | ||||||
| Limited Maturity Fixed Income Fund | 95 | 2017 | |||||
| Government Bond Fund | 25 | 2015 | |||||
| 5 | 2016 | ||||||
| 67 | 2017 | ||||||
| Corporate Bond Fund | 83 | 2017 | |||||
| California Tax Exempt Bond Fund | 17 | 2015 | |||||
| 3 | 2016 | ||||||
| 99 | 2017 | ||||||
| Municipal High Income Fund | 13 | 2017 | |||||
| High Yield Bond Fund | 17 | 2015 | |||||
| 6 | 2016 | ||||||
| 101 | 2017 | ||||||
| Intermediate Fixed Income Fund | 16 | 2016 | |||||
| 59 | 2017 | ||||||
| Fixed Income Opportunities Fund | 42 | 2016 | |||||
| 263 | 2017 | ||||||
| Multi-Asset Fund | 11 | 2017 | |||||
| Dividend & Income Fund | 23 | 2016 | |||||
| 90 | 2017 | ||||||
| U.S. Core Equity | 9 | 2017 | |||||
| Socially Responsible Fund | 61 | 2017 | |||||
| Emerging Markets Fund | 115 | 2016 | |||||
| 145 | 2017 | ||||||
City National Rochdale, CNB, the Administrator, the transfer agent and the Funds’ legal counsel 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 year ended September 30, 2014:
CITY NATIONAL ROCHDALE FUNDS | PAGE 147
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
Shareholder Servicing Fee Waiver (000) | Investment Advisory Fee Waiver (000) | Administration Fee Waiver (000) | Transfer Agent Fee Waiver (000) | Legal Fee Waiver (000) | ||||||||||||||||
| Government Money Market Fund | ||||||||||||||||||||
| Class N | $ | 14,728 | (1) | $ | 7,359 | $ | 133 | $ | — | $ | — | |||||||||
| Class S | 4,211 | (1) | 1,494 | 27 | — | — | ||||||||||||||
| Servicing Class | 420 | 411 | 7 | — | — | |||||||||||||||
| Prime Money Market Fund | ||||||||||||||||||||
| Institutional Class | $ | — | $ | 76 | $ | 2 | $ | — | $ | — | ||||||||||
| Class N | 1,745 | (1) | 621 | 20 | — | — | ||||||||||||||
| Class S | 1,579 | (1) | 399 | 13 | — | — | ||||||||||||||
| Servicing Class | 1,431 | 1,000 | 32 | — | — | |||||||||||||||
| California Tax Exempt Money Market Fund | ||||||||||||||||||||
| Class N | $ | 3,308 | (1) | $ | 1,543 | $ | 115 | $ | 31 | $ | 17 | |||||||||
| Class S | 501 | (1) | 164 | 13 | 4 | 2 | ||||||||||||||
| Servicing Class | 493 | 438 | 38 | 10 | 6 | |||||||||||||||
| (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 year or period ended September 30, 2014, 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 | $ | 5,903 | $ | 7,954 | $ | 14,269 | $ | 14,055 | ||||||||
| Government Bond Fund | 93,917 | 8,052 | 75,365 | 10,155 | ||||||||||||
| Corporate Bond Fund | — | 60,331 | 56 | 48,726 | ||||||||||||
| California Tax Exempt Bond Fund | — | 31,174 | — | 22,477 | ||||||||||||
| Municipal High Income Fund** | — | 337,263 | — | 1,562 | ||||||||||||
| High Yield Bond Fund | — | 70,712 | — | 133,583 | ||||||||||||
| Intermediate Fixed Income Fund | 17,255 | 58,942 | 7,635 | 43,780 | ||||||||||||
| Fixed Income Opportunities Fund | — | 937,194 | — | 626,661 | ||||||||||||
| Multi-Asset Fund | — | 18,591 | * | — | 21,833 | * | ||||||||||
| Dividend & Income Fund | — | 36,166 | — | 27,314 | ||||||||||||
| U.S. Core Equity | — | 152,490 | — | 110,843 | ||||||||||||
| Socially Responsible Equity Fund | — | 138,883 | — | 30,203 | ||||||||||||
| Emerging Markets Fund | — | 397,350 | — | 169,480 | ||||||||||||
| * | Includes $2,071 (000) and $2,696 (000) of purchases and sales, respectively, of affiliated registered investment companies. |
| ** | For or the period December 30, 2013 through September 30, 2014. |
The Funds may purchase or sell investment securities in transactions with affiliated entities under procedures adopted by the Board, pursuant to the 1940 Act. These transactions are effected at market rates without incurring broker commissions.
The following is a summary of the transactions with affiliates for the Multi-Asset Fund for the year ended September 30, 2014:
| Corporate Bond Fund, Servicing Class | Government Bond Fund, Institutional Class | High Yield Bond Fund, Institutional Class | Limited Maturity Fixed Income Fund, Institutional Class | Emerging Markets Fund, Institutional Class | ||||||||||||||||
| Beginning balance as of October 1, 2013 | $ | 2,219 | $ | 1,590 | $ | 570 | $ | 1,686 | $ | — | ||||||||||
| Purchases at Cost | 51 | 37 | 1,181 | 39 | 763 | |||||||||||||||
| Proceeds from Sales | (674 | ) | (485 | ) | (1,022 | ) | (515 | ) | — | |||||||||||
| Realized Gain (Loss) | (1 | ) | (2 | ) | 40 | (2 | ) | — | ||||||||||||
| Unrealized Gain (Loss) | (7 | ) | 5 | (24 | ) | 5 | (27 | ) | ||||||||||||
| Ending balance as of September 30, 2014 | $ | 1,588 | $ | 1,145 | $ | 745 | $ | 1,213 | $ | 736 | ||||||||||
| 6. | FEDERAL TAX INFORMATION: |
Each Fund intends to qualify or 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.
Effective September 30, 2013, the Intermediate Fixed Income Fund, Fixed Income Opportunities Fund, Dividend & Income Fund and the Emerging Markets Fund changed their tax year-ends from December 31 to September 30.
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, 2014, 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 148
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 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.
Accordingly, the following permanent differences, primarily attributable to REIT adjustments, MLP dividend income reclasses, realized gains (losses) on paydowns, expiration of capital loss carryovers, net operating losses, return of capital distributions, distributions in excess of net investment income, investments in defaulted bonds, investments in Passive Foreign Investment Companies and timing of distributions, were reclassified to/from the following accounts as of September 30, 2014:
Increase (Decrease) Undistributed Net Investments Income (Loss) (000) | Increase (Decrease) Accumulated Net Realized Gain (Loss) (000) | Increase (Decrease) Paid-in Capital (000) | ||||||||||
| Limited Maturity Fixed Income Fund | $ | 4 | $ | 42 | $ | (46 | ) | |||||
| Government Bond Fund | 14 | (14 | ) | — | ||||||||
| High Yield Bond Fund | 1 | (1 | ) | — | ||||||||
| Intermediate Fixed Income Fund | 94 | (94 | ) | — | ||||||||
| Fixed Income Opportunities Fund | 4,148 | (4,148 | ) | — | ||||||||
| Multi-Asset Fund | 35 | (28 | ) | (7 | ) | |||||||
| Dividend & Income Fund | 666 | 731 | (1,397 | ) | ||||||||
| U.S. Core Equity Fund | 1 | (1 | ) | — | ||||||||
| Socially Responsible Equity Fund | 4 | (4 | ) | — | ||||||||
| Emerging Markets Fund | (579 | ) | 579 | — | ||||||||
| Amounts designated as “—” are either $0 or have been rounded to $0. |
The tax character of dividends and distributions declared during the years ended September 30, 2014 and September 30, 2013 unless otherwise indicated 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 | ||||||||||||||||||||
| 2014 | $ | — | $ | 378 | $ | — | $ | — | $ | 378 | ||||||||||
| 2013 | — | 330 | — | — | 330 | |||||||||||||||
| Prime Money Market Fund | ||||||||||||||||||||
| 2014 | — | 120 | — | — | 120 | |||||||||||||||
| 2013 | — | 228 | — | — | 228 | |||||||||||||||
| California Tax Exempt Money Market Fund | ||||||||||||||||||||
| 2014 | 96 | — | — | — | 96 | |||||||||||||||
| 2013 | 94 | — | — | — | 94 | |||||||||||||||
| Limited Maturity Fixed Income Fund | ||||||||||||||||||||
| 2014 | — | 204 | — | — | 204 | |||||||||||||||
| 2013 | — | 307 | — | — | 307 | |||||||||||||||
| Government Bond Fund | ||||||||||||||||||||
| 2014 | — | 750 | — | — | 750 | |||||||||||||||
| 2013 | — | 2,054 | — | — | 2,054 | |||||||||||||||
| Corporate Bond Fund | ||||||||||||||||||||
| 2014 | — | 2,225 | 934 | — | 3,159 | |||||||||||||||
| 2013 | — | 2,507 | 1,038 | — | 3,545 | |||||||||||||||
| California Tax Exempt Bond Fund | ||||||||||||||||||||
| 2014 | 1,008 | — | 127 | — | 1,135 | |||||||||||||||
| 2013 | 1,190 | 150 | 379 | — | 1,719 | |||||||||||||||
| Municipal High Income Fund | ||||||||||||||||||||
2014^^ | 7,464 | 5 | — | — | 7,469 | |||||||||||||||
| High Yield Bond Fund | ||||||||||||||||||||
| 2014 | — | 7,732 | 355 | — | 8,087 | |||||||||||||||
| 2013 | — | 10,996 | — | — | 10,996 | |||||||||||||||
| Intermediate Fixed Income Fund | ||||||||||||||||||||
| 2014 | — | 4,584 | — | — | 4,584 | |||||||||||||||
| 2013 | — | 3,505 | — | — | 3,505 | |||||||||||||||
| 2012† | — | 4,065 | — | — | 4,065 | |||||||||||||||
| Fixed Income Opportunities Fund | ||||||||||||||||||||
| 2014 | — | 54,067 | 5,256 | — | 59,323 | |||||||||||||||
| 2013 | — | 34,355 | 52 | — | 34,407 | |||||||||||||||
| 2012† | — | 35,978 | 1,348 | — | 37,326 | |||||||||||||||
| Multi-Asset Fund | ||||||||||||||||||||
| 2014 | — | 234 | — | — | 234 | |||||||||||||||
| 2013 | — | 667 | — | — | 667 | |||||||||||||||
| Dividend & Income Fund | ||||||||||||||||||||
| 2014 | — | 5,449 | — | — | 5,449 | |||||||||||||||
| 2013 | — | 2,296 | — | 1,135 | 3,431 | |||||||||||||||
| 2012† | — | 4,044 | — | 727 | 4,771 | |||||||||||||||
| U.S. Core Equity Fund | ||||||||||||||||||||
| 2014 | — | 3,085 | — | — | 3,085 | |||||||||||||||
| 2013^ | — | 571 | — | — | 571 | |||||||||||||||
| Socially Responsible Equity Fund | ||||||||||||||||||||
| 2014 | — | 1,409 | 12,637 | — | 14,046 | |||||||||||||||
| 2013 | — | 1,134 | — | — | 1,134 | |||||||||||||||
| Emerging Markets Fund | ||||||||||||||||||||
| 2014 | — | 1,072 | — | — | 1,072 | |||||||||||||||
| 2013 | — | — | — | — | — | |||||||||||||||
| 2012† | — | — | — | 67 | 67 | |||||||||||||||
| † | For the year ended December 31, 2012. |
| ^ | For the period December 3, 2012 (commencement of operations) through September 30, 2013. |
| ^^ | For the period December 30, 2013 (commencement of operations) through September 30, 2014. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 149
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
As of September 30, 2014, 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 (000) | Other Temporary Differences (000) | Total Distributable Earnings (Accumulated Losses) (000) | ||||||||||||||||||||||||
| Government Money Market Fund | $ | — | $ | 36 | $ | — | $ | — | $ | — | $ | — | $ | (35 | ) | $ | 1 | |||||||||||||||
| Prime Money Market Fund | — | 9 | — | (12 | ) | — | — | (8 | ) | (11 | ) | |||||||||||||||||||||
| California Tax Exempt Money Market Fund | 8 | — | — | (2 | ) | — | — | (6 | ) | — | ||||||||||||||||||||||
| Limited Maturity Fixed Income Fund | — | 14 | — | (1,823 | ) | (5 | ) | 133 | (15 | ) | (1,696 | ) | ||||||||||||||||||||
| Government Bond Fund | — | 48 | — | (188 | ) | — | 75 | (46 | ) | (111 | ) | |||||||||||||||||||||
| Corporate Bond Fund | — | 253 | 1,082 | — | — | 1,884 | (193 | ) | 3,026 | |||||||||||||||||||||||
| California Tax Exempt Bond Fund | 81 | 28 | 286 | — | — | 1,958 | (81 | ) | 2,272 | |||||||||||||||||||||||
| Municipal High Income Fund | 1,315 | 73 | — | — | — | 12,991 | (1,315 | ) | 13,064 | |||||||||||||||||||||||
| High Yield Bond Fund | — | 1,389 | 4,068 | — | — | (73 | ) | (459 | ) | 4,925 | ||||||||||||||||||||||
| Intermediate Fixed Income Fund | — | 71 | — | (2,821 | ) | (349 | ) | 3,740 | (7 | ) | 634 | |||||||||||||||||||||
| Fixed Income Opportunities Fund | — | 12,889 | 2,715 | — | — | (5,608 | ) | (2,019 | ) | 7,977 | ||||||||||||||||||||||
| Multi-Asset Fund | — | — | — | (461 | ) | — | 584 | — | 123 | |||||||||||||||||||||||
| Dividend & Income Fund | — | — | — | (4,541 | ) | — | 43,074 | (5 | ) | 38,528 | ||||||||||||||||||||||
| U.S. Core Equity Fund | — | 1,199 | 18,029 | — | — | 29,621 | — | 48,849 | ||||||||||||||||||||||||
| Socially Responsible Equity Fund | — | — | 5,481 | — | — | 13,551 | — | 19,032 | ||||||||||||||||||||||||
| Emerging Markets Fund | — | 2,023 | — | (1,305 | ) | — | 80,776 | — | 81,494 | |||||||||||||||||||||||
For tax purposes, the losses in the Funds generated prior to the Regulated Investment Company Modernization Act of 2010 can be carried forward for a maximum of eight years to offset any future net realized capital gains. As of September 30, 2014, the breakdown of capital loss carryforwards was as follows:
| Expiring September 30, | ||||||||||||||||||||
| Fund | 2015 (000) | 2017 (000) | 2018 (000) | 2019 (000) | Total (000) | |||||||||||||||
| Limited Maturity Fixed Income Fund | $ | 1,415 | $ | 81 | $ | 327 | $ | — | $ | 1,823 | ||||||||||
| Multi-Asset Fund | — | 461 | — | — | 461 | |||||||||||||||
| Expiring December 31, | ||||||||||||||||
| Fund | 2016 (000) | 2017 (000) | 2018 (000) | Total (000) | ||||||||||||
| Intermediate Fixed Income Fund | $ | 192 | $ | 2,240 | $ | — | $ | 2,432 | ||||||||
| Dividend & Income Fund | — | 3,086 | 1,455 | 4,541 | ||||||||||||
Post-October losses represent losses realized on investments and foreign currency transactions from November 1, 2013, through September 30, 2014, that, in accordance with Federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
Under the Regulated Investment Company Modernization Act of 2010, the 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. Losses carried forward under these new provisions are as follows:
CITY NATIONAL ROCHDALE FUNDS | PAGE 150
| Fund | Short-Term Loss (000) | Long-Term Loss (000) | Total (000)* | |||||||||
| Prime Money Market Fund | $ | 12 | $ | — | $ | 12 | ||||||
| California Tax Exempt Money Market Fund | 2 | — | 2 | |||||||||
| Government Bond Fund | 188 | — | 188 | |||||||||
| Intermediate Fixed Income Fund | 308 | 81 | 389 | |||||||||
| Emerging Markets Fund | 1,305 | — | 1,305 | |||||||||
| * | This table should be used in conjunction with the capital loss carryforwards table. |
During the year ended September 30, 2014, the following Funds utilized capital loss carryforwards to offset capital gains amounting to:
| Fund | Amount (000) | |||
| Government Money Market Fund | $ | 1 | ||
| Prime Money Market Fund | 2 | |||
| Limited Maturity Fixed Income Fund | 86 | |||
| Government Bond Fund | 784 | |||
| Intermediate Fixed Income Fund | 126 | |||
| Multi-Asset Fund | 1,237 | |||
| Dividend & Income Fund | 5,582 | |||
The aggregate gross unrealized appreciation on securities, the aggregate gross unrealized depreciation on securities and the net unrealized appreciation/ (depreciation) for tax purposes at September 30, 2014, for each of the Fixed Income Funds, Multi-Asset Fund and Equity Funds were as follows:
| Fund | Federal Tax Cost (000) | Aggregate Gross Unrealized Appreciation (000) | Aggregate Gross Unrealized Depreciation (000) | Net Unrealized Appreciation (000) | ||||||||||||
| Limited Maturity Fixed Income Fund | $ | 27,390 | $ | 165 | $ | (32 | ) | $ | 133 | |||||||
| Government Bond Fund | 171,596 | 548 | (473 | ) | 75 | |||||||||||
| Corporate Bond Fund | 143,468 | 2,246 | (362 | ) | 1,884 | |||||||||||
| California Tax Exempt Bond Fund | 79,875 | 2,001 | (43 | ) | 1,958 | |||||||||||
| Municipal High Income Fund | 394,326 | 14,367 | (1,376 | ) | 12,991 | |||||||||||
| High Yield Bond Fund | 101,736 | 1,858 | (1,931 | ) | (73 | ) | ||||||||||
| Intermediate Fixed Income Fund | 207,371 | 4,903 | (1,162 | ) | 3,741 | |||||||||||
| Fixed Income Opportunities Fund | 1,385,429 | 40,663 | (46,270 | ) | (5,607 | ) | ||||||||||
| Multi-Asset Fund | 24,238 | 1,040 | (456 | ) | 584 | |||||||||||
| Dividend & Income Fund | 129,125 | 43,475 | (401 | ) | 43,074 | |||||||||||
| U.S. Core Equity Fund | 177,353 | 30,671 | (1,049 | ) | 29,622 | |||||||||||
| Socially Responsible Equity Fund | 219,210 | 15,204 | (1,653 | ) | 13,551 | |||||||||||
| Emerging Markets Fund | 485,564 | 90,484 | (9,381 | ) | 81,103 | |||||||||||
At September 30, 2014, the Money Market Funds’ cost of securities for Federal income tax purposes approximates the cost disclosed in the Schedule of Investments.
| 7. | CONCENTRATION OF 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.
The Municipal High Income Fund, High Yield Bond Fund, Intermediate Fixed Income Fund, Fixed Income Opportunities Fund and Multi-Asset Fund may invest in lower-rated corporate bonds, known as high yield bonds. High yield bonds involve greater risks of default, downgrade, or price declines and are more volatile than investment grade securities. Issuers of high yield bonds may be more susceptible than other issuers to economic downturns and are subject to a greater risk that the issuer may not be able to pay interest or dividends and ultimately to repay principal upon maturity. Discontinuation of these payments could have a substantial adverse effect on the market value of the security.
The Intermediate Fixed Income Fund and Fixed Income Opportunities Fund may invest in asset-backed and mortgage-backed securities. As a general rule, prepayments of the principal of the loans underlying mortgage-backed or other pass-through securities increase during a period of falling interest rates and
CITY NATIONAL ROCHDALE FUNDS | PAGE 151
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
decrease during a period of rising interest rates. In periods of declining interest rates, as a result of prepayments a Fund may be required to reinvest its assets in securities with lower interest rates. In periods of increasing interest rates, the securities subject to prepayment risk held by a Fund may exhibit price characteristics of longer-term debt securities.
The Intermediate Fixed Income Fund and Fixed Income Opportunities Fund may invest in bank loans. Bank loans are not traded on an exchange and purchasers and sellers of bank loans generally rely on market makers, typically the administrative agent under a bank loan, to effect private sales transactions. As a result, bank loans may have relatively less liquidity than other types of fixed income assets, and a Fund may be more likely to incur losses on the sale of bank loans than on other, more liquid, investments.
The Fixed Income Opportunities Fund may invest in beneficial interests in individual life insurance policies (“Policies”). A Policy owner transfers his or her Policy at a discount to its face value (the amount that is payable upon the death of the insured) in return for an immediate cash settlement. The ultimate purchaser of the Policy (in this case, the Fund) is responsible for premiums payable on the Policy and is entitled to receive the full face value from the insurance company upon the death of the insured. If the Fund is unable to make premium payments on a Policy, the Policy will lapse and the Fund will lose its ownership interest in the Policy. There is currently no established secondary market for Policies, and the Policies are not considered liquid investments by the Fund. If the Fund must sell Policies to meet redemption requests or other cash needs, the Fund may be forced to sell at a loss. The longer the insured lives, the lower the Fund’s rate of return on the Policy. The underwriter’s estimate of the insured’s life expectancy may be incorrect. An insurance company may be unable or refuse to pay benefits on a Policy. In addition, market quotations will not be readily available for the Policies and the Policies will be priced using a fair value methodology adopted by the Trust’s Board. The sales price the Fund could receive for a Policy may differ from the Trust’s valuation of the Policy. A Policy is a liability of the issuing life insurance company, and if the life insurance company goes out of business, sufficient funds may not be available to pay that liability.
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.
The Funds invest in Certificates of Participation in a municipal obligation, which are subject to annual appropriation risk.
Emerging Markets Fund – Specific Risks
Foreign investments tend to be more volatile than domestic securities, and are subject to risks that are not typically associated with domestic securities (e.g., changes in currency rates and exchange control regulations, future political and economic developments and the possibility of seizure or nationalization of companies, or the imposition of withholding taxes on income). There may be less government supervision of foreign markets. As a result, foreign issuers may not be subject to the uniform accounting, auditing, and financial reporting standards and practices applicable to domestic issuers, and there may be less publicly available information about foreign issuers.
As long as the Emerging Markets Fund holds a foreign security, its value will be affected by the value of the local currency relative to the U.S. dollar. The value of a foreign currency may decline in relation to the U.S. dollar while the Fund holds securities denominated in such currency. Currency exchange rates can be volatile and can be affected by, among other factors, the general economics of a country or the actions of the U.S. or foreign governments or central banks. U.S. dollar-denominated securities of foreign issuers may also be affected by currency risk, as the value of these securities may also be affected by changes in the issuer’s local currency.
Risks associated with foreign investments may be intensified in the case of investments in emerging market countries, the political, legal and economic systems of which are less developed and less stable than those of more developed nations. Emerging markets may have relatively unstable governments, immature economic structures, national policies restricting investments by foreigners, social instability, and different and/or developing legal systems. In some countries, there is the risk that the government may take over the assets or operations of a company or that the government may impose withholding and other taxes or limits on the removal of the Emerging Market Fund’s assets from that country. In addition, the economies of emerging markets may be predominantly based on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme and volatile debt burdens or inflation rates. Such investments are often less liquid and/or more volatile than securities issued by companies located in developed nations. Emerging market securities are also subject to the risk that the securities may not be sold at the quoted market price within a reasonable period of time.
CITY NATIONAL ROCHDALE FUNDS | PAGE 152
| 8. | CAPITAL SHARES ISSUED AND REDEEMED: |
Capital share activity for the year ended September 30, 2014 and the year ended September 30, 2013 were as follows (000):
| Government Money Market Fund | Prime Money Market Fund (1) | California Tax Exempt Money Market Fund | ||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
| CAPITAL SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||
| Institutional Class: | ||||||||||||||||||||||||
| Shares issued | — | — | 177,330 | 64,765 | — | — | ||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | — | — | — | — | — | — | ||||||||||||||||||
| Shares redeemed | — | — | (134,563 | ) | (53,558 | ) | — | — | ||||||||||||||||
| Net Institutional Class transactions | — | — | 42,767 | 11,207 | — | — | ||||||||||||||||||
| Class N: | ||||||||||||||||||||||||
| Shares issued | 4,544,028 | 4,569,767 | 712,240 | 958,377 | 988,104 | 1,060,390 | ||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 249 | 232 | 24 | 43 | 67 | 69 | ||||||||||||||||||
| Shares redeemed | (4,410,324 | ) | (4,337,676 | ) | (803,775 | ) | (927,483 | ) | (1,037,816 | ) | (1,053,782 | ) | ||||||||||||
| Net Class N transactions | 133,953 | 232,323 | (91,511 | ) | 30,937 | (49,645 | ) | 6,677 | ||||||||||||||||
| Class S: | ||||||||||||||||||||||||
| Shares issued | 1,522,771 | 1,126,727 | 869,219 | 820,945 | 372,122 | 320,188 | ||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | — | — | — | — | — | — | ||||||||||||||||||
| Shares redeemed | (1,291,990 | ) | (940,498 | ) | (878,235 | ) | (869,753 | ) | (370,022 | ) | (340,847 | ) | ||||||||||||
| Net Class S transactions | 230,781 | 186,229 | (9,016 | ) | (48,808 | ) | 2,100 | (20,659 | ) | |||||||||||||||
| Servicing Class^: | ||||||||||||||||||||||||
| Shares issued | 1,008,445 | 778,145 | 1,057,487 | 2,068,692 | 698,593 | 808,580 | ||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | — | — | 9 | 22 | — | — | ||||||||||||||||||
| Shares redeemed | (924,910 | ) | (746,175 | ) | (1,207,309 | ) | (1,961,996 | ) | (662,963 | ) | (780,506 | ) | ||||||||||||
| Net Servicing Class transactions | 83,535 | 31,970 | (149,813 | ) | 106,718 | 35,630 | 28,074 | |||||||||||||||||
Limited Maturity Fixed Income Fund | Government Bond Fund | Corporate Bond Fund | California Tax Exempt Bond Fund | |||||||||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
| CAPITAL SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||||||||||
| Institutional Class: | ||||||||||||||||||||||||||||||||
| Shares issued | 67 | 97 | 915 | 1,036 | — | — | — | — | ||||||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 7 | 8 | 32 | 68 | — | — | — | — | ||||||||||||||||||||||||
| Shares redeemed | (1,614 | ) | (780 | ) | (922 | ) | (896 | ) | — | — | — | — | ||||||||||||||||||||
| Net Institutional Class transactions | (1,540 | ) | (675 | ) | 25 | 208 | — | — | — | — | ||||||||||||||||||||||
| Class N: | ||||||||||||||||||||||||||||||||
| Shares issued | 106 | 184 | 37 | 29 | 152 | 164 | 413 | 540 | ||||||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 2 | 2 | — | 1 | 4 | 4 | 7 | 10 | ||||||||||||||||||||||||
| Shares redeemed | (101 | ) | (166 | ) | (83 | ) | (67 | ) | (70 | ) | (111 | ) | (178 | ) | (333 | ) | ||||||||||||||||
| Net Class N transactions | 7 | 20 | (46 | ) | (37 | ) | 86 | 57 | 242 | 217 | ||||||||||||||||||||||
| Servicing Class^: | ||||||||||||||||||||||||||||||||
| Shares issued | — | — | 2,715 | 3,473 | 4,041 | 4,137 | 2,482 | 2,479 | ||||||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | — | — | 18 | 57 | 23 | 28 | 9 | 20 | ||||||||||||||||||||||||
| Shares redeemed | — | — | (2,893 | ) | (4,124 | ) | (3,309 | ) | (3,802 | ) | (1,522 | ) | (1,658 | ) | ||||||||||||||||||
| Net Servicing Class transactions | — | — | (160 | ) | (594 | ) | 755 | 363 | 969 | 841 | ||||||||||||||||||||||
| (1) | Institutional Class commenced operations December 19, 2012. |
| ^ | Effective November 28, 2012, 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. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 153
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
Municipal High Income Fund (1) | High Yield Bond Fund | Intermediate Fixed Income Fund (2)^ | Fixed Income Opportunities Fund ^ | |||||||||||||||||||||||||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | † | 2012 | † | 2014 | 2013 | † | 2012 | † | ||||||||||||||||||||||||
| CAPITAL SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||||||||||||||
| Institutional Class: | ||||||||||||||||||||||||||||||||||||
| Shares issued | — | 831 | 775 | 45 | — | — | — | — | — | |||||||||||||||||||||||||||
Shares issued from Merger(5) | — | — | — | 1,734 | — | — | — | — | — | |||||||||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | — | 267 | 266 | 25 | — | — | — | — | — | |||||||||||||||||||||||||||
| Shares redeemed | — | (1,023 | ) | (1,212 | ) | (1,469 | ) | — | — | — | — | — | ||||||||||||||||||||||||
| Net Institutional Class transactions | — | 75 | (171 | ) | 335 | — | — | — | — | — | ||||||||||||||||||||||||||
| Class N: | ||||||||||||||||||||||||||||||||||||
| Shares issued | 20,399 | 494 | 1,804 | 3,739 | 2,111 | 1,995 | 22,889 | 12,348 | 7,602 | |||||||||||||||||||||||||||
Shares issued from Merger(5) | — | — | — | — | — | — | 2,105 | — | — | |||||||||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 211 | 138 | 163 | 89 | 66 | 127 | 1,185 | 736 | 1,297 | |||||||||||||||||||||||||||
| Shares redeemed | (1,828 | ) | (1,645 | ) | (2,440 | ) | (2,058 | ) | (1,032 | ) | (1,454 | ) | (9,450 | ) | (2,675 | ) | (3,875 | ) | ||||||||||||||||||
| Net Class N transactions | 18,782 | (1,013 | ) | (473 | ) | 1,770 | 1,145 | 668 | 16,729 | 10,409 | 5,024 | |||||||||||||||||||||||||
| Servicing Class: | ||||||||||||||||||||||||||||||||||||
| Shares issued | 21,234 | 3,068 | 7,140 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 7 | 63 | 77 | — | — | — | — | — | — | |||||||||||||||||||||||||||
| Shares redeemed | (633 | ) | (8,462 | ) | (5,463 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
| Net Servicing Class transactions | 20,608 | (5,331 | ) | 1,754 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Multi-Asset Fund (3) | Dividend & Income Fund ^ | U.S. Core Equity Fund (4) | ||||||||||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | † | 2012 | † | 2014 | 2013 | ||||||||||||||||||||
| CAPITAL SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||||||||||
| Institutional Class: | ||||||||||||||||||||||||||||
| Shares issued | 71 | 184 | — | — | — | 100 | — | |||||||||||||||||||||
Shares issued from Merger(5) | — | — | — | — | — | 3,795 | — | |||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 3 | 14 | — | — | — | 6 | — | |||||||||||||||||||||
| Shares redeemed | (664 | ) | (809 | ) | — | — | — | (3,425 | ) | — | ||||||||||||||||||
| Net Institutional Class transactions | (590 | ) | (611 | ) | — | — | — | 476 | — | |||||||||||||||||||
| Class N: | ||||||||||||||||||||||||||||
| Shares issued | 59 | 198 | 2,007 | 357 | 1,706 | 2,093 | 6,045 | |||||||||||||||||||||
Shares issued from Merger(5) | — | — | — | — | — | 207 | — | |||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 10 | 25 | 102 | 26 | 152 | 97 | 19 | |||||||||||||||||||||
| Shares redeemed | (418 | ) | (565 | ) | (2,010 | ) | (535 | ) | (1,677 | ) | (977 | ) | (586 | ) | ||||||||||||||
| Net Class N transactions | (349 | ) | (342 | ) | 99 | (152 | ) | 181 | 1,420 | 5,478 | ||||||||||||||||||
| Servicing Class: | ||||||||||||||||||||||||||||
| Shares issued | 105 | 18 | — | — | — | 2,881 | 6,805 | |||||||||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 3 | 5 | — | — | — | 1 | — | |||||||||||||||||||||
| Shares redeemed | (21 | ) | (254 | ) | — | — | — | (1,265 | ) | (1,103 | ) | |||||||||||||||||
| Net Servicing Class transactions | 87 | (231 | ) | — | — | — | 1,617 | 5,702 | ||||||||||||||||||||
| (1) | Fund commenced operations on December 30, 2013. |
| (2) | Institutional Class commenced operations on December 20, 2013. |
| (3) | Institutional Class ceased operations on January 31, 2014. |
| (4) | Fund commenced operations on December 3, 2012. |
| (5) | See Note 10 in Notes to Financial Statements. |
| ^ | On March 29, 2013, the Intermediate Fixed Income Fund, the Fixed Income Opportunities Fund and the Dividend & Income Fund were reorganized into series of the City National Rochdale Funds. See Note 1 in Notes to Financial Statements for additional information. |
| † | For the nine months ended September 30, 2013 and the year ended December 31, 2012. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 154
| Socially Responsible Equity Fund | Emerging Markets Fund ^ | |||||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | † | 2012 | † | ||||||||||||||
| CAPITAL SHARES ISSUED AND REDEEMED: | ||||||||||||||||||||
| Institutional Class: | ||||||||||||||||||||
| Shares issued | 11,271 | 1,334 | — | — | — | |||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 768 | 79 | — | — | — | |||||||||||||||
| Shares redeemed | (635 | ) | (5,685 | ) | — | — | — | |||||||||||||
| Net Institutional Class transactions | 11,404 | (4,272 | ) | — | — | — | ||||||||||||||
| Class N: | ||||||||||||||||||||
| Shares issued | 968 | 702 | 8,011 | 4,972 | 4,464 | |||||||||||||||
| Shares issued in Lieu of Dividends and Distributions | 514 | 22 | 15 | — | 2 | |||||||||||||||
| Shares redeemed | (1,699 | ) | (717 | ) | (1,641 | ) | (618 | ) | (466 | ) | ||||||||||
| Net Class N transactions | (217 | ) | 7 | 6,385 | 4,354 | 4,000 | ||||||||||||||
| † | For the nine months ended September 30, 2013, year ended December 31, 2012. |
| ^ | On March 29, 2013, the Emerging Markets Fund was reorganized into series of the City National Rochdale Funds. See Note 1 in Notes to Financial Statements for additional information. |
| 9. | FUND REORGANIZATIONS |
Intermediate Fixed Income Fund:
On December 20, 2013, the assets of the Full Maturity Fixed Income Fund were reorganized into the Intermediate Fixed Income Fund. In this reorganization, 4,352,128 shares of the Full Maturity Fixed Income Fund were exchanged for 1,734,179 shares of the Intermediate Fixed Income Fund in a tax-free exchange.
The value of the Full Maturity Fixed Income Fund on December 20, 2013 was $44,899,004. Upon the business combination of such Funds on December 20, 2013, the value of the Full Maturity Fixed Income Fund, which included accumulated realized losses of $124,817 and unrealized loss of $238,709, combined with the value of the Intermediate Fixed Income Fund was $209,405,691.
Assuming the reorganization had been completed on October 1, 2013, the beginning of the fiscal year end, the Intermediate Fixed Income Fund’s pro-forma net investment income, net gain/(loss) on investments and net increase in net assets from operations, for the year ended September 30, 2014, would have been $4,836,013, $2,902,040 and $7,738,053, respectively. Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Full Maturity Fixed Income Fund that have been included in the Intermediate Fixed Income Fund’s Statement of Operations since December 20, 2013. Because the Intermediate Fixed Income Fund and Full Maturity Fixed Income Fund sold and redeemed shares throughout the period, it is not practicable to provide pro-forma information on a per-share basis.
U.S. Core Equity Fund:
On March 21, 2014, the assets of the Diversified Equity Fund were reorganized into the U.S. Core Equity Fund. In this reorganization, 3,019,691 shares of the Diversified Equity Fund were exchanged for 207,167 Class N shares and 3,794,815 Institutional Class shares of the U.S. Core Equity Fund in a taxable exchange.
The value of the Diversified Equity Fund on March 21, 2014 was $53,568,331. Upon the business combination of such Funds on March 21, 2014, the value of the Diversified Equity Fund, which included accumulated realized losses of $451,745 and distributions in excess of net investment income of $210, combined with the value of the U.S. Core Equity Fund was $223,593,114.
Assuming the reorganization had been completed on October 1, 2013, the beginning of the fiscal year end, the U.S. Core Equity Fund’s pro-forma net investment income, net gain/(loss) on investments and net increase in net assets from operations for the year ended September 30, 2014, would have been $1,073,823, $35,415,034 and $36,488,858, respectively. Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Diversified Equity Fund that have been included in the U.S. Core Equity Fund’s Statement of Operations since March
CITY NATIONAL ROCHDALE FUNDS | PAGE 155
notes to financial statements/
consolidated notes to financial statements
September 30, 2014
21, 2014. Because the U.S. Core Equity Fund and Diversified Equity Fund sold and redeemed shares throughout the period, it is not practicable to provide pro-forma information on a per-share basis
Fixed Income Opportunities Fund:
On May 30, 2014, the assets of City National Rochdale Alternative Total Return Fund LLC were reorganized into the Fixed Income Opportunities Fund. In this reorganization, the total net assets of City National Rochdale Alternative Total Return Fund LLC were exchanged for 2,104,921 shares of the Fixed Income Opportunities Fund in a taxable exchange.
The value of City National Rochdale Alternative Total Return Fund LLC on May 30, 2014 was $58,518,275. Upon the business combination of such Funds on May 30, 2014, the value of City National Rochdale Alternative Total Return Fund LLC, which included realized gains of $49,195,270 and distributions in excess of net investment income of $28,972,614, combined with the value of the Fixed Income Opportunities Fund was $1,349,061,955.
Assuming the reorganization had been completed on October 1, 2013, the beginning of the fiscal year end, the Fixed Income Opportunities Fund’s pro-forma net investment income, net gain/(loss) on investments and net increase in net assets from operations for the year ended September 30, 2014, would have been $57,319,270, $8,564,090 and $65,883,360, respectively. The only investments acquired as part of the reorganization were life settlement contracts. Since the date of reorganization there were no realized gains with respect to the merged assets and the net change in unrealized loss amounted to $2,969,202. Because the Fixed Income Opportunities Fund and City National Rochdale Alternative Total Return Fund LLC sold and redeemed shares throughout the period, it is not practicable to provide pro-forma information on a per-share basis
The Intermediate Fixed Income Fund and Fixed Income Opportunities Fund may invest in bank loans. Bank loans are not traded on an exchange and purchasers and sellers of bank loans generally rely on market makers, typically the administrative agent under a bank loan, to effect private sales transactions. As a result, bank loans may have relatively less liquidity than other types of fixed income assets, and a Fund may be more likely to incur losses on the sale of bank loans than on other, more liquid, investments.
| 10. | REGULATORY MATTERS |
On July 23, 2014, the Securities and Exchange Commission voted to amend the rules under the Investment Company Act of 1940, as amended, which currently govern the operations of the Money Market Funds (the “MMFs”). The most significant change resulting from these amendments is a requirement that certain types of money market funds transact fund shares based on a market-based NAV. Other types of money market funds may continue to transact fund shares at an NAV calculated using the amortized cost valuation method. Among additional disclosure and other requirements, the amendments also will permit a money market fund, or, in certain circumstances, require a money market fund (other than a government money market fund) to impose liquidity fees on all redemptions, and permit a money market fund to limit (or gate) redemptions for up to ten business days in any 90-day period. The amendments have staggered compliance dates. The majority of these amendments will impact the MMFs beginning on October 14, 2016. At this time, management is evaluating the implications of these amendments and their impact to the MMFs’ financial statements and accompanying notes.
| 11. | 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 September 30, 2014 and no issues were noted to disclose.
CITY NATIONAL ROCHDALE FUNDS | PAGE 156
report of independent registered public accounting firm
The Shareholders and Board of Trustees
City National Rochdale Funds:
We have audited the accompanying statements of assets and liabilities of City National Rochdale Funds (the Trust), comprised of the Government Money Market Fund, Prime Money Market Fund, California Tax Exempt Money Market Fund, Limited Maturity Fixed Income Fund, Government Bond Fund, Corporate Bond Fund, California Tax Exempt Bond Fund, High Yield Bond Fund, Multi-Asset Fund, U.S. Core Equity Fund and Socially Responsible Equity Fund (eleven of the sixteen funds comprising the Trust), including the schedules of investments as of September 30, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two year period then ended, and the financial highlights for each of the years or periods in the five year period then ended. We have also audited the accompanying consolidated statement of assets and liabilities of the Fixed Income Opportunities Fund (one of the sixteen funds comprising the Trust), including the consolidated schedule of investments, as of September 30, 2014, and the related consolidated statement of operations and consolidated statement of cash flows for the year then ended, the consolidated statement of changes in net assets for each of the years or periods in the two-year period then ended, and the consolidated financial highlights for each of the years or periods in the two-year period then ended. We have also audited the accompanying consolidated statement of assets and liabilities of the Emerging Markets Fund (one of the sixteen funds comprising the Trust), including the consolidated schedule of investments, as of September 30, 2014, and the related consolidated statement of operations for the year then ended, the consolidated statement of changes in net assets for each of the years or periods in the two-year period then ended, and the consolidated financial highlights for each of the years or periods in the two-year period then ended. We have also audited the accompanying statements of assets and liabilities of the Intermediate Fixed Income Fund and Dividend & Income Fund (two of the sixteen funds comprising the Trust), including the schedules of investments, as of September 30, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the two-year period then ended, and the financial highlights for each of the years or periods in the two-year period then ended. We have also audited the statement of assets and liabilities of the Municipal High Income Fund (one of the sixteen funds comprising the Trust), including the schedule of investments as of September 30, 2014, and the related statement of operations, statement of changes in net assets, and the financial highlights for the period from December 30, 2013 (commencement of operations) to September 30, 2014. These financial statements and consolidated financial statements and financial highlights and consolidated financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and consolidated financial statements and financial highlights and consolidated financial highlights based on our audits. The statements of changes in net assets and the financial highlights for each of the years or periods presented through December 31, 2012, for the Intermediate Fixed Income Fund, Fixed Income Opportunities Fund, Dividend & Income Fund and Emerging Markets Fund were audited by other auditors, whose report thereon dated March 31, 2013, expressed an unqualified opinion on those financial statements and financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2014, by correspondence with custodians and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and consolidated financial statements and financial highlights and consolidated financial highlights referred to above present fairly, in all material respects, the financial position of each of the funds comprising City National Rochdale Funds as of September 30, 2014, the results of their operations, the changes in their net assets, and the financial highlights for each of the years or periods referred to in the first paragraph above, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
November 28, 2014
CITY NATIONAL ROCHDALE FUNDS | PAGE 157
trustees and officers (Unaudited)
September 30, 2014
Information pertaining to the Trustees and Officers of the Trust is set forth below as of September 30, 2014. Trustees who are not deemed to be “interested persons” of the Trust as defined in the Investment Company Act of 1940 are referred to as “Independent Trustees.” The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge by calling 1-888-889-0799.
Name, Address, and Age | Position with the Trust | Term of Office(1) and Length of Time Served | Principal Occupation for the Past Five Years | Number of Portfolios in Fund Complex(2) Overseen by Trustee | Other Directorships Held by Trustee |
| INDEPENDENT TRUSTEES | |||||
Irwin G. Barnet City National Rochdale Funds 400 North Roxbury Drive Beverly Hills, California 90210 Age: 76 | Trustee | Since 1999 | Retired (May 2014-present). Attorney and of counsel, Reed Smith LLP, a law firm (2009-April 2014). Partner, Reed Smith LLP (2003-2008). | 21 | None |
Vernon C. Kozlen City National Rochdale Funds 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 71 | Trustee | Since 2007 | Retired (2007-present). President and Chief Executive Officer, City National Rochdale Funds (2000-2007). Executive Vice President and Director of Asset Management Development, CNB (1996-2007). Director, Reed, Conner & Birdwell LLC (2000-2007), and Convergent Capital Management, LLC (2003-2007). | 21 | Windermere Jupiter Fund, LLC. CMS/Ironwood Multi-Strategy Fund LLC. CMS/Barlow Long-Short Equity Fund, LLC.(3) |
William R. Sweet City National Rochdale Funds 400 North Roxbury Drive Beverly Hills, California 90210 Age: 77 | Trustee | Since 1999 | Retired (1997-present). | 21 | None |
James Wolford City National Rochdale Funds 400 North Roxbury Drive Beverly Hills, California 90210 Age: 60 | Trustee | Since 1999 | Chief Executive Officer of Corinthian Development Company (December 2013-present). President, Chief Operating Officer and Chief Financial Officer, Thompson National Properties (March 2011-December 2013). Chief Financial Officer, Pacific Office Properties, a real estate investment trust (April 2010-March 2011). Chief Financial Officer, Bixby Land Company, a real estate company (2004-March 2010). | 21 | None |
Daniel A. Hanwacker City National Rochdale Funds 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 62 | Trustee | Since 2013 | CEO and President, Hanwacker Associates, Inc. (asset management consulting and executive search services) (2001-present). | 21 | Rochdale Investment Trust (2011-2013) |
CITY NATIONAL ROCHDALE FUNDS | PAGE 158
Name, Address, and Age | Position with the Trust | Term of Office(1) and Length of Time Served | Principal Occupation for the Past Five Years | Number of Portfolios in Fund Complex(2) Overseen by Trustee | Other Directorships Held by Trustee |
| INDEPENDENT TRUSTEES (Continued) | |||||
Jay C. Nadel City National Rochdale Funds 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 55 | Trustee | Since 2013 | Financial Services Consultant (2005 - present). | 21 | Lapolla Industries, Inc. (2007-present); Rochdale Investment Trust (2011-2013) |
| INTERESTED TRUSTEES | |||||
Andrew S. Clare (4) City National Rochdale Funds 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 68 | Trustee | Since 2013 | Attorney and partner, Loeb & Loeb LLP, a law firm (1972-present). | 21 | None |
Jon C. Hunt (5) City National Rochdale Funds 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 62 | Trustee | Since 2013 | Retired (2013 to present). Consultant to Management, Convergent Capital Management, LLC (“CCM”) (July 2012-2013). Managing Director and Chief Operating Officer, CCM (1998-June 2012). | 21 | Nuveen Commodities Asset Management, member of Independent Committee (February 2012-present); Advisors’ Inner Circle Fund III (February 2014-present), O’Connor EQUUS (May 2014-present) |
| (1) | The Trustees serve for terms of office as follows: |
| Name of Trustee | End of Term of Office |
| William R. Sweet | March 31, 2015 |
| Irwin G. Barnet | December 31, 2015 |
| Vernon C. Kozlen | December 31, 2018* |
| James Wolford | March 29, 2023 |
| Andrew S. Clare | December 31, 2020* |
| Daniel A. Hanwacker | March 29, 2023 |
| John C. Hunt | March 29, 2023 |
| Jay C. Nadel | March 29, 2023 |
| * | Subject to extension by the Board for up to two years. |
| (2) | “Fund complex” is defined as two or more registered investment companies that hold themselves out to investors as related companies or have a common investment adviser or affiliated investment advisers, and in this case includes the Trust and the following closed-end funds: City National Rochdale High Yield Alternative Strategies Master Fund LLC, City National Rochdale High Yield Alternative Strategies Fund LLC, City National Rochdale High Yield Alternative Strategies Fund TEI LLC, City National Rochdale Structured Claims Fixed Income Fund LLC, and City National Rochdale International Trade Fixed Income Fund. |
| (3) | Convergent Wealth Advisors, LLC, which is under common control with CNB, serves as investment adviser to Windermere Jupiter Fund, LLC, CMS/Ironwood Multi-Strategy Fund, LLC and CMS/Barlow Long-Short Equity Fund, LLC, each of which is a private investment fund. |
| (4) | Mr. Clare is an “interested person” of the Trust, as defined in the 1940 Act, by virtue of the provision of significant legal services by him and his law firm to CNB. |
| (5) | Mr. Hunt is an “interested person” of the Trust, as defined in the 1940 Act, until April 1, 2015, by virtue of his former position with CCM, a wholly-owned subsidiary of CNB and an affiliate of City National Rochdale. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 159
trustees and officers (Unaudited) (Continued)
September 30, 2014
Name Address, and Age | Position with the Trust | Term of Office(1) and Length of Time Served | Principal Occupation for the Past Five Years |
| OFFICERS | |||
Garrett R. D’Alessandro City National Rochdale, LLC 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 56 | Chief Executive Officer | Since 2013 | Chief Executive Officer, City National Rochdale (1986-present). |
Eric Kleinschmidt SEI Investments One Freedom Valley Drive Oaks, Pennsylvania 19456 Age: 46 | Controller and Chief Operating Officer | Since 2005 | Director of Fund Accounting, SEI Investments (2004-present). |
F. Michael Gozzillo City National Rochdale, LLC 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 49 | Vice President and Chief Compliance Officer (“CCO”) | Since 2013 | Senior Vice President & Chief Compliance Officer, City National Rochdale (2012-present). CCO, City National Rochdale High Yield Alternative Strategies Master Fund LLC, City National Rochdale High Yield Alternative Strategies Fund LLC, City National Rochdale High Yield Alternative Strategies Fund TEI LLC, City National Rochdale Structured Claims Fixed Income Fund LLC and City National Rochdale International Trade Fixed Income Fund (2013-present). Director & Compliance Officer, TIAA-CREF (2008-2012). CCO, TIAA-CREF Life Insurance Co. Separate Accounts (2009-2012). |
Lisa Whittaker SEI Investments One Freedom Valley Drive Oaks, Pennsylvania 19456 Age: 35 | Vice President and Secretary | Since 2012 | Attorney, SEI Investments Company (2012-present). Associate Counsel, The Glenmede Trust Company (2011-2012). Associate, Drinker Biddle & Reath LLP (2006-2011). |
William O’Donnell City National Rochdale, LLC 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 50 | Vice President and Assistant Treasurer | Since 2013 | Director, Investment Management Finance, City National Rochdale Investment Management LLC (October 2013-present). Chief Financial Officer, Rochdale Investment Management LLC (July 2011-October 2013). Financial Consultant (2009-2011). Financial Officer, Compliance Officer and Corporate Secretary, Clay Finlay LLC (1990-2009). |
Kurt Hawkesworth City National Rochdale, LLC 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 43 | Vice President | Since 2013 | Chief Operating Officer, City National Rochdale (2003-present). |
Anthony Sozio City National Rochdale, LLC 400 N. Roxbury Drive Beverly Hills, California 90210 Age: 43 | Vice President | Since 2013 | Assistant Vice President of Registered Fund Operations, City National Rochdale (1998-present). |
Bernadette Sparling SEI Investments One Freedom Valley Drive Oaks, Pennsylvania 19456 Age: 37 | Vice President and Assistant Secretary | Since 2010 | Attorney, SEI Investments Company (2005-present). |
Brent Vasher SEI Investments One Freedom Valley Drive Oaks, Pennsylvania 19456 Age: 32 | Vice President and Assistant Secretary | Since 2010 | Attorney, SEI Investments Company (2008-present). Associate, Law Office of Lloyd Z. Remick (2006-2008). |
| (1) | Each officer serves until removed by the Board or the principal executive officer of the Trust, or until such officer resigns. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 160
notice to shareholders (Unaudited)
September 30, 2014
For shareholders that do not have a September 30, 2014 taxable year end, this notice is for informational purposes only. For shareholders with a September 30, 2014 taxable year end, please consult your tax advisor as to the pertinence of this notice.
For California income tax purposes, for the fiscal year ended September 30, 2014, each of the California Tax Exempt Bond Fund and California Tax Exempt Money Market Fund is designating 96.91% and 92.40%, respectively, of its distributions paid from net investment income as exempt-interest dividends under Section 17145 of the California Revenue and Taxation Code.
For Federal income tax purposes, for the fiscal year ended September 30, 2014 each Fund is designating the following items with regard to distributions paid during the year:
(A) Long Term Capital Gain Distributions | (B) Return of Capital | (C) Ordinary Income Distributions | (D) Tax Exempt Interest | (E) Total Distributions | (F) Dividends Qualifying for Corporate Dividends Rec. Deduction (1) | (G) Qualifying Dividend Income (2) | (H) U.S. Government Interest (3) | (I) Interest Related Dividends (4) | (J) Qualified Short-Term Capital Gain Dividends (5) | |
| Government Money Market Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 0.00% | 66.72% | 100.00% | 0.00% |
| Prime Money Market Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 0.00% | 2.75% | 100.00% | 0.00% |
| California Tax Exempt Money Market Fund | 0.00% | 0.00% | 0.00% | 100.00% | 100.00% | 0.00% | 0.00% | 0.00% | 99.74% | 0.00% |
| Limited Maturity Fixed Income Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 0.00% | 4.98% | 99.77% | 0.00% |
| Government Bond Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 0.00% | 39.03% | 100.00% | 0.00% |
| Corporate Bond Fund | 29.65% | 0.00% | 70.35% | 0.00% | 100.00% | 0.00% | 0.00% | 0.00% | 100.00% | 0.00% |
| California Tax Exempt Bond Fund | 11.05% | 0.00% | 0.00% | 88.95% | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Full Maturity Fixed Income Fund (7) | 57.34% | 0.00% | 42.66% | 0.00% | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Municipal High Income Fund | 0.00% | 0.00% | 0.08% | 99.92% | 100.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| High Yield Bond Fund | 4.19% | 0.00% | 95.81% | 0.00% | 100.00% | 0.00% | 0.00% | 0.00% | 99.40% | 100.00% |
| Intermediate Fixed Income Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 6.40% | 6.40% | 2.08% | 86.00% | 0.00% |
| Fixed Income Opportunities Fund | 8.86% | 0.00% | 91.14% | 0.00% | 100.00% | 0.00% | 0.00% | 0.01% | 96.00% | 0.00% |
| Multi-Asset Fund | 0.00% | 2.90% | 97.10% | 0.00% | 100.00% | 69.05% | 89.59% | 3.97% | 0.00% | 0.00% |
| Dividend & Income Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | 0.00% | 0.00% | 0.00% |
| U.S. Core Equity Fund | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 61.73% | 62.66% | 0.00% | 0.00% | 100.00% |
Diversified Equity Fund (8) | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 100.00% | 100.00% | 0.00% | 0.00% | 0.00% |
| Socially Responsible Equity Fund | 89.97% | 0.00% | 10.03% | 0.00% | 100.00% | 96.24% | 100.00% | 0.00% | 0.00% | 0.00% |
Emerging Markets Fund (6) | 0.00% | 0.00% | 100.00% | 0.00% | 100.00% | 0.00% | 25.68% | 0.00% | 0.00% | 0.00% |
CITY NATIONAL ROCHDALE FUNDS | PAGE 161
notice to shareholders (Unaudited) (Continued)
September 30, 2014
| (1) | “Dividends Received Deduction” represent dividends which qualify for the corporate dividends received deduction. |
| (2) | “Qualifying Dividend Income” represent qualifying dividends as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund intends to designate the maximum amount permitted by law. |
| (3) | “U.S. Government Interest” represent the amount of interest that was derived from direct U.S. Government obligations and distributed during the fiscal year. This amount is reflected as a percentage of ordinary income. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut or New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income. |
| (4) | “Interest Related Dividends” represent qualifying interest that is exempt from U.S. withholding tax when paid to foreign investors as created by the American Jobs Creation Act of 2004. The provision that allows RICs to pass through “Interest Related Dividends” expired after December 31, 2013. |
| (5) | “Short-Term Capital Gain Dividends” represent qualifying short-term capital gain that is exempt from U.S. withholding tax when paid to foreign investors as created by the American Jobs Creation Act of 2004. The provision that allows RICs to pass through “Short-Term Capital Gain Dividends” expired after December 31, 2013. |
| (6) | The Fund intends to pass through a foreign tax credit to shareholders. For the fiscal year ended September 30, 2014, the total amount of foreign source income was $10,159,797. The total amount of foreign tax to be paid is $370,342. Your allocable share of foreign tax credit will be reported on Form 1099-DIV. |
| (7) | On December 20, 2013 the assets of the Full Maturity Fixed Income Fund were reorganized into the Intermediate Fixed Income Fund. |
| (8) | On March 21, 2014 the assets of the Diversified Equity Fund were reorganized into the U.S. Core Equity Fund. |
Items (A), (B), (C), (D) and (E) are based on the percentage of each fund’s total distribution.
Items (F) and (G) are based on the percentage of “Ordinary Income Distributions.”
Item (H) is based on the percentage of gross income of each Fund.
Item (I) is based on the percentage of net investment income distributions.
Item (J) is based on the percentage of short-term capital gain distributions.
CITY NATIONAL ROCHDALE FUNDS | PAGE 162
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, acquired fund 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.
CITY NATIONAL ROCHDALE FUNDS | PAGE 163
disclosure of fund expenses (Unaudited) (Continued)
Beginning Account Value 4/1/2014 | Ending Account Value 9/30/2014 | Annualized Expense Ratios | Expense Paid During Period* | |||||||||||||
| City National Rochdale Government Money Market Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,000.10 | 0.08 | % | $ | 0.40 | ||||||||
| Class S | 1,000.00 | 1,000.10 | 0.08 | % | 0.40 | |||||||||||
| Servicing Class | 1,000.00 | 1,000.10 | 0.08 | % | 0.40 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,024.67 | 0.08 | % | $ | 0.41 | ||||||||
| Class S | 1,000.00 | 1,024.67 | 0.08 | % | 0.41 | |||||||||||
| Servicing Class | 1,000.00 | 1,024.67 | 0.08 | % | 0.41 | |||||||||||
| City National Rochdale Prime Money Market Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,000.10 | 0.14 | % | $ | 0.70 | ||||||||
| Class N | 1000.00 | 1,000.10 | 0.14 | % | 0.70 | |||||||||||
| Class S | 1,000.00 | 1,000.10 | 0.14 | % | 0.70 | |||||||||||
| Servicing Class | 1,000.00 | 1,000.10 | 0.14 | % | 0.70 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,024.37 | 0.14 | % | $ | 0.71 | ||||||||
| Class N | 1000.00 | 1024.37 | 0.14 | % | 0.71 | |||||||||||
| Class S | 1,000.00 | 1,024.37 | 0.14 | % | 0.71 | |||||||||||
| Servicing Class | 1,000.00 | 1,024.37 | 0.14 | % | 0.71 | |||||||||||
| City National Rochdale California Tax Exempt Money Market Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,000.10 | 0.05 | % | $ | 0.25 | ||||||||
| Class S | 1,000.00 | 1,000.10 | 0.05 | % | 0.25 | |||||||||||
| Servicing Class | 1,000.00 | 1,000.10 | 0.05 | % | 0.25 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,024.82 | 0.05 | % | $ | 0.25 | ||||||||
| Class S | 1,000.00 | 1,024.82 | 0.05 | % | 0.25 | |||||||||||
| Servicing Class | 1,000.00 | 1,024.82 | 0.05 | % | 0.25 | |||||||||||
| City National Rochdale Limited Maturity Fixed Income Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,002.40 | 0.67 | % | $ | 3.36 | ||||||||
| Class N | 1,000.00 | 1,000.30 | 0.92 | % | 4.61 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,021.71 | 0.67 | % | $ | 3.40 | ||||||||
| Class N | 1,000.00 | 1,020.46 | 0.92 | % | 4.66 | |||||||||||
Beginning Account Value 4/1/2014 | Ending Account Value 9/30/2014 | Annualized Expense Ratios | Expense Paid During Period* | |||||||||||||
| City National Rochdale Government Bond Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,003.80 | 0.53 | % | $ | 0.87 | ||||||||
| Class N | 1,000.00 | 1,002.20 | 1.03 | % | 5.17 | |||||||||||
| Servicing Class | 1,000.00 | 1,003.50 | 0.78 | % | 3.92 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,022.41 | 0.53 | % | $ | 2.69 | ||||||||
| Class N | 1,000.00 | 1,019.90 | 1.03 | % | 5.22 | |||||||||||
| Servicing Class | 1,000.00 | 1,021.16 | 0.78 | % | 3.95 | |||||||||||
| City National Rochdale Corporate Bond Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,004.80 | 1.01 | % | $ | 5.08 | ||||||||
| Servicing Class | 1,000.00 | 1,006.00 | 0.76 | % | 3.82 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,020.00 | 1.01 | % | $ | 5.11 | ||||||||
| Servicing Class | 1,000.00 | 1,021.26 | 0.76 | % | 3.85 | |||||||||||
| City National Rochdale California Tax Exempt Bond Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,017.60 | 0.88 | % | $ | 4.45 | ||||||||
| Servicing Class | 1,000.00 | 1,018.90 | 0.63 | % | 3.19 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,020.66 | 0.88 | % | $ | 4.46 | ||||||||
| Servicing Class | 1,000.00 | 1,021.91 | 0.63 | % | 3.19 | |||||||||||
| City National Rochdale Municipal High Income Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,059.90 | 1.07 | % | $ | 5.53 | ||||||||
| Servicing Class | 1,000.00 | 1,061.20 | 0.82 | % | 4.24 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,019.70 | 1.07 | % | $ | 5.42 | ||||||||
| Servicing Class | 1,000.00 | 1,020.96 | 0.82 | % | 4.15 | |||||||||||
| City National Rochdale High Yield Bond Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,011.00 | 0.70 | % | $ | 1.14 | ||||||||
| Class N | 1,000.00 | 1,008.50 | 1.20 | % | 6.04 | |||||||||||
| Servicing Class | 1,000.00 | 1,009.80 | 0.95 | % | 4.79 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,021.56 | 0.70 | % | $ | 3.55 | ||||||||
| Class N | 1,000.00 | 1,019.05 | 1.20 | % | 6.07 | |||||||||||
| Servicing Class | 1,000.00 | 1,020.31 | 0.95 | % | 4.81 | |||||||||||
| * | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
CITY NATIONAL ROCHDALE FUNDS | PAGE 164
Beginning Account Value 4/1/2014 | Ending Account Value 9/30/2014 | Annualized Expense Ratios | Expense Paid During Period* | |||||||||||||
| City National Rochdale Intermediate Fixed Income Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,017.20 | 0.51 | % | $ | 0.83 | ||||||||
| Class N | $ | 1,000.00 | $ | 1,014.70 | 1.01 | % | $ | 5.10 | ||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,022.51 | 0.51 | % | $ | 2.59 | ||||||||
| Class N | $ | 1,000.00 | $ | 1,020.00 | 1.01 | % | $ | 5.11 | ||||||||
| City National Rochdale Fixed Income Opportunities Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,010.20 | 1.10 | % | $ | 5.54 | ||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,019.55 | 1.10 | % | $ | 5.57 | ||||||||
| City National Rochdale Multi-Asset Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 996.90 | 1.49 | % | $ | 7.46 | ||||||||
| Servicing Class | 1,000.00 | 998.30 | 1.24 | % | 6.21 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,017.60 | 1.49 | % | $ | 7.54 | ||||||||
| Servicing Class | 1,000.00 | 1,018.85 | 1.24 | % | 6.28 | |||||||||||
| City National Rochdale Dividend & Income Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,032.90 | 1.07 | % | $ | 5.45 | ||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,019.70 | 1.07 | % | $ | 5.42 | ||||||||
Beginning Account Value 4/1/2014 | Ending Account Value 9/30/2014 | Annualized Expense Ratios | Expense Paid During Period* | |||||||||||||
| City National Rochdale U.S. Core Equity Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,073.10 | 0.52 | % | $ | 0.89 | ||||||||
| Class N | 1,000.00 | 1,070.20 | 1.03 | % | 5.35 | |||||||||||
| Servicing Class | 1,000.00 | 1,072.30 | 0.78 | % | 4.05 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,022.46 | 0.52 | % | $ | 2.64 | ||||||||
| Class N | 1,000.00 | 1,019.90 | 1.03 | % | 5.22 | |||||||||||
| Servicing Class | 1,000.00 | 1,021.16 | 0.78 | % | 3.95 | |||||||||||
| City National Rochdale Socially Responsible Equity Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,004.60 | 0.89 | % | $ | 4.47 | ||||||||
| Class N | 1,000.00 | 1,003.20 | 1.13 | % | 5.67 | |||||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Institutional Class | $ | 1,000.00 | $ | 1,020.61 | 0.89 | % | $ | 4.51 | ||||||||
| Class N | 1,000.00 | 1,019.40 | 1.13 | % | 5.72 | |||||||||||
| City National Rochdale Emerging Markets Fund | ||||||||||||||||
| Actual Fund Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,060.20 | 1.60 | % | $ | 8.26 | ||||||||
| Hypothetical 5% Return | ||||||||||||||||
| Class N | $ | 1,000.00 | $ | 1,017.05 | 1.60 | % | $ | 8.09 | ||||||||
| * | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). |
CITY NATIONAL ROCHDALE FUNDS | PAGE 165
board approval of advisory and sub-advisory agreements
(Unaudited)
The Board of Trustees of City National Rochdale Funds (the “Trust”) is comprised of eight Trustees, six of whom are independent of the Trust’s investment adviser and sub-advisers (the “Independent Trustees”). During the six months ended September 30, 2014, the Board and the Independent Trustees approved the following advisory agreements and sub-advisory agreements:
| • | The advisory agreements between the Trust, on behalf of each of its series other than the City National Rochdale Municipal High Income Fund (each a “Fund” and collectively the “Funds”), and City National Rochdale, LLC (the “Adviser”); |
| • | A sub-advisory agreement between the Adviser and Guggenheim Partners Investment Management, LLC (“Guggenheim”), with respect to the High Yield Bond Fund; |
| • | A sub-advisory agreement between the Adviser and SKBA Capital Management, LLC (“SKBA”), with respect to the Socially Responsible Equity Fund; |
| • | A sub-advisory agreement between the Adviser and Seix Investment Advisors LLC (“Seix”), with respect to the Fixed Income Opportunities Fund; |
| • | A sub-advisory agreement between the Adviser and Federated Investment Management Company (“Federated”), with respect to the Fixed Income Opportunities Fund; and |
| • | A sub-advisory agreement between the Adviser and GML Capital LLP (“GML Capital”), with respect to the Fixed Income Opportunities Fund. |
The advisory and sub-advisory agreements listed above are collectively referred to below as the “Agreements” and Guggenheim, SKBA, Seix, Federated and GML Capital are collectively referred to below as the “Sub-Advisers.”
GENERAL INFORMATION
The following information summarizes the Board’s considerations associated with its review of the Agreements. In connection with their deliberations, the Board considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The Agreements were considered separately for each Fund, although the Board took into account the common interests of the Funds in its review. As described below, the Board considered the nature, quality and extent of the various investment advisory and administrative services performed by the Adviser and each Sub-Adviser. In considering these matters, the Independent Trustees discussed the approval of the Agreements with management and in private sessions with their independent counsel at which no representatives of the Adviser or the Sub-Advisers were present.
The Board reviewed extensive materials regarding investment results of the Adviser and each Sub-Adviser, advisory fee and expense comparisons, financial information with respect to each entity, descriptions of various functions such as compliance monitoring and portfolio trading practices, and information about the personnel providing investment management and administrative services to the Funds. They also took into account information they received at past meetings of the Board and its committees with respect to these matters.
In deciding to approve the Agreements, the Board and the Independent Trustees did not identify a single factor as controlling and this summary does not describe all of the matters considered. In addition, each Board member did not necessarily attribute the same weight to each matter. However, the Board and the Independent Trustees concluded that each of the various factors referred to below favored such approval.
CITY NATIONAL ROCHDALE, LLC
Nature, Extent and Quality of Services
In reviewing the services provided by the Adviser to the Funds, the Board considered a variety of matters, including the background, education and experience of its key portfolio management and operational personnel; its overall financial strength and stability; its resources and efforts to retain, attract and motivate capable personnel to serve the Funds; and the overall general quality and depth of its organization. The Board also took into account the experience, capability and integrity of the Adviser’s senior management; its investment philosophy and processes, including sub-adviser oversight processes; its brokerage, trading and soft dollar practices; its disaster recovery and contingency planning; and its commitment to compliance with applicable laws and regulations and the systems in place with regard to compliance with those requirements. The Board found all of these matters to be satisfactory.
The Board assessed the performance of each Fund compared with its respective benchmark index or indexes and the average of all funds in its respective peer group category (each a “universe”) selected by Lipper, Inc. (and iMoneyNet, Inc. for the Government Money Market Fund, Prime Money Market Fund and California Tax Exempt Money Market Fund (together the “Money Market Funds”) only) for the one-, three-, five-, ten-
CITY NATIONAL ROCHDALE FUNDS | PAGE 166
The Board’s observations with respect to the annualized total returns of the Funds were as follows:
| • | The annualized total returns of the Government Money Market Fund (Servicing Class) were the same as or higher than the Lipper Institutional U.S. Government Money Market Objective and iMoneyNet, Inc. Government Institutional averages for the one-, three- and five-year periods. For the ten-year and since inception periods, the Fund trailed the Lipper universe average (by 17 basis points or less) and iMoneyNet (by six basis points or less). |
| • | The Prime Money Market Fund (Institutional Class) underperformed the Lipper Institutional Money Market Objective and iMoneyNet, Inc. Prime Institutional average (in each case by two basis points or less) for the one-, three-, and five-year periods. For the ten-year and since inception periods, the Fund underperformed the Lipper Institutional Money Market Objective (by 23 basis points or less) and the iMoneyNet, Inc. Prime Institutional average (by 20 basis points or less). |
| • | The annualized total returns of the California Tax Exempt Money Market Fund (Servicing Class) were the same as or below the Lipper CA Tax-Exempt Money Market Funds Objective (by four basis points or less) and below the iMoneyNet State Specific Institutional-CA universe average (by 16 basis points or less) for the one-, three-, five- and ten-year and since inception periods. |
| • | For the one-year period, the Limited Maturity Fixed Income Fund (Institutional Class) outperformed the Barclays 1-3 Year US Government/Credit Index, but trailed the Lipper Short Investment-Grade Debt Funds Classification universe average (by 48 basis points). For the three-, five-, ten- and 15-year and since inception periods, the Fund underperformed the Barclays 1-3 Year US Government/Credit Index (by 60 basis points or less) and the Lipper Short Investment-Grade Debt Funds Classification universe average (by 118 basis points or less). The Board considered the Adviser’s observation that the underperformance of the Fund was caused by a combination of factors including the Fund’s lower portfolio duration and higher average portfolio credit quality than both its benchmark and peer group. |
| • | The Government Bond Fund (Institutional Class) underperformed the Barclays 1-5 Year Government Bond Index (by 44 basis points or less) and the Lipper Short/Intermediate US Government Objective universe average (by 67 basis points or less) over the one-, three-, five- and ten-year and since inception periods. The Board considered the challenges described by the Adviser in maintaining an actively managed strategy such as the Fund’s in the low-rate environment that has persisted over the past few years. |
| • | The annualized total returns of the Corporate Bond Fund (Servicing Class) were equal to or higher than the Lipper Short/Intermediate Investment-Grade Objective universe average and the Barclays US Corp 1-5 A3+, 2% Issuer Constrained Index over the one- and three-year periods. The Fund underperformed the Barclays Index (by 43 basis points) and the Lipper universe average (by 58 basis points) over the five-year period. The Fund outperformed the Lipper universe average, but underperformed the Barclays Index (by 35 basis points or less) over the ten-year and since inception periods. |
| • | The California Tax Exempt Bond Fund (Servicing Class) outperformed the Lipper CA Short/Intermediate Municipal Debt Objective universe average but underperformed the Barclays CA Intermediate-Short Municipal Index (by 65 basis points or less) over the one, three-, five- and ten-year and since inception periods. |
| • | The High Yield Bond Fund (Institutional Class) outperformed the Citigroup High-Yield Market Capped Index and the Lipper High Yield Bond Funds Objective universe averages over the one- and five-year and since inception periods. The Fund outperformed the Lipper universe average but underperformed the Citigroup Index (by 30 basis points or less) over the three- and ten-year periods. |
| • | The Intermediate Fixed Income Fund (Institutional Class) outperformed the Barclays Intermediate U.S. Government/Credit Index but underperformed the Lipper Core Bond Funds Classification universe average (by 113 basis points or less) over the one-, three- and five-year periods. The Fund underperformed the Lipper universe average (by 60 basis points or less) and the Barclays Index (by 40 basis points or less) over the ten-year and since inception periods. The Board considered the Adviser’s observation that the Fund was underperforming the Lipper average due to the difference in portfolio duration between the Fund and the Lipper average. |
CITY NATIONAL ROCHDALE FUNDS | PAGE 167
board approval of advisory and sub-advisory agreements
(Unaudited) (Continued)
| • | The Fixed Income Opportunities Fund (Class N) outperformed the Credit Suisse Leveraged Loan Index and the Barclays U.S. Aggregate Index but underperformed the Lipper High Yield Bond Funds Classification universe average (from 178 to 209 basis points) and the Barclays U.S. High Yield Index (from 300 to 322 basis points) over the one- and three-year periods. The Fund outperformed the Barclays U.S. Aggregate Index but underperformed the Lipper universe average (by 30 basis points), the Credit Suisse Index (by 30 basis points) and the Barclays U.S. High Yield Index (by 542 basis points) on an annualized basis since inception. The Board considered that the Fund is a blended fund with several portfolios managed by different sub-advisers according to differing investment mandates and that it was therefore difficult to compare the Fund to a broad-based securities index and to other funds. |
| • | The Multi-Asset Fund (Servicing Class) outperformed the Lipper Absolute Return Funds Classification universe average and the BofA Merrill Lynch 3-Month U.S. Treasury Bill Index, and underperformed the Blended Index (a customized index composed of 60% in the Barclays Capital Intermediate Government/Credit Index and 40% in the MSCI World Index) (from 163 to 399 basis points) over the one-, three- and five-year and since inception periods. |
| • | The Dividend & Income Fund (Class N) underperformed the Lipper Equity Income Funds Classification universe average (from 40 to 704 basis points), the S&P 500 Index (from 217 to 1,069 basis points) and the Blended Index (a customized index composed of 60% in the Dow Jones U.S. Select Dividend Index, 25% in the Bank of America ML Core Fixed Rate Preferred Securities Index and 15% in the MSCI U.S. REIT Index) (from 168 to 468 basis points) over the one-, three- and five-year periods. The Fund outperformed all of those measures over the ten-year period. The Fund outperformed the S&P 500 Index, but underperformed the Lipper universe average (by 64 basis points) and the Blended Index (by 291 basis points) for the since inception period. The Board noted the Adviser’s observation that the Fund’s recent underperformance was primarily the result of an underweight in the utilities sector, and that on a risk-adjusted basis the Fund compares favorably to its peers. |
| • | The U.S. Core Equity Fund (Institutional Class) outperformed the Lipper Large Cap Core Funds Classification universe average and the S&P 500 Index over the one-year and since inception periods. |
| • | The Socially Responsible Equity Fund (Institutional Class) underperformed the MSCI KLD 400 Social Index (from 161 to 351 basis points), the Lipper Multi-Cap Value Funds Classification universe average (from 109 to 268 basis points), and the Russell 1000 Value Index (from 154 to 356 basis points) over the one-, three- and five-year, and since inception periods. The Board considered the Adviser’s observations that the Fund differs from most socially responsible funds, which are generally growth oriented, because it is a value-oriented fund, and that while the Fund’s recent stock selection had been strong, an underweight in consumer cyclicals had hurt the Fund’s performance. |
| • | The Emerging Markets Fund (Class N) outperformed the MSCI Emerging Markets Index and the Lipper Emerging Markets Funds Classification universe average but underperformed the MSCI Emerging Markets Asia Index (by 76 basis points) over the one-year period. The Emerging Markets Fund outperformed all of those measures for the since inception period. |
The Board concluded that the Adviser continues to provide satisfactory management and oversight services to the Funds. They noted that the investment results of the Funds over the long term were generally competitive; that the Adviser had reasonable explanations for the performance of those Funds that had underperformed relative to their benchmarks; that the results for the Money Market Funds compared to their peer groups were acceptable given the special services and investment focuses of those Funds and the unusual market conditions applicable to the money market fund industry in recent years; and that consideration of returns of market indexes needed to take into account that indexes do not reflect the expenses of operating mutual funds.
Advisory Fees and Fund Expenses
The Board reviewed information regarding the advisory fees (both before and after waivers) charged by the Adviser to the Funds, and the total expenses (net of fee waivers) of each Fund (as percentages of their respective average annual net assets) compared to those of the funds included in the relevant Lipper universes and peer groups selected by the Adviser (“Peer Groups”).
The Board observed as follows with respect to the investment advisory fees (net of fee waivers) paid by the Funds:
| • | The net advisory fees of the following Funds were below their Peer Group and Lipper universe averages: Government Money Market Fund, Prime Money Market Fund, California Tax Exempt Money Market Fund, Government |
CITY NATIONAL ROCHDALE FUNDS | PAGE 168
| Bond Fund, California Tax Exempt Bond Fund, Fixed Income Opportunities Fund, Multi-Asset Fund, Dividend & Income Fund, and U.S. Core Equity Fund. |
| • | The net advisory fee of the Emerging Markets Fund was below its Peer Group average but above its Lipper universe average. |
| • | The net advisory fees of the following Funds were above their Peer Group and Lipper universe averages, but were within the middle 60% range for the relevant Lipper universes: Limited Maturity Fixed Income Fund, Corporate Bond Fund, High Yield Bond Fund, Intermediate Fixed Income Fund, and Socially Responsible Equity Fund. |
The Board noted that the Adviser does not manage investment portfolios for other registered investment companies, pension funds, or institutional accounts that have similar investment objectives and policies as the Funds, so it did not have a basis to compare the Funds’ advisory fees with advisory fees charged by the Adviser to other clients. The Board also observed that the Adviser manages the City National Rochdale International Trade Fixed Income Fund, a closed-end fund that is managed using the same strategies and sub-adviser, GML Capital, as those used to manage a portion of the Fixed Income Opportunities Fund, for a fee greater than that charged to the Fixed Income Opportunities Fund.
The Board’s observations with respect to the Funds’ total expenses (net of fee waivers) were as follows:
| • | Except as indicated below, the total expense ratios of all of the classes of each of the Funds were below both the relevant Peer Group and Lipper universe averages. |
| • | The total expense ratios of the Servicing Class and Class N of the Multi-Asset Fund and Class N of the Emerging Markets Fund were below their Peer Group averages but not their Lipper universe averages. |
| • | The total expense ratios of Class N of the Fixed Income Opportunities Fund and the Institutional Class of the Limited Maturity Fixed Income Fund were below their Lipper universe averages but not their Peer Group averages. |
| • | The total expense ratios for the Government Money Market Fund (Servicing Class), California Tax Exempt Money Market Fund (Servicing Class), Government Bond Fund (Institutional Class), High Yield Bond Fund (Institutional Class), Intermediate Fixed Income Fund (Institutional Class) and U.S. Core Equity Fund (Institutional Class) were in the lowest 20% of the relevant Lipper universes. |
| • | The total expense ratios for the following Fund classes were within the middle 60% range for the relevant Lipper universes: Prime Money Market Fund (Institutional Class), Limited Maturity Fixed Income Fund (Institutional Class), Corporate Bond Fund (Servicing Class), California Tax Exempt Bond Fund (Servicing Class), Fixed Income Opportunities Fund (Class N), Multi-Asset Fund (Servicing Class), Dividend & Income Fund (Class N), Socially Responsible Equity Fund (Institutional Class) and Emerging Markets Fund (Class N). |
The Board concluded that the advisory fees charged by the Adviser continued to be fair and reasonable, and the total expenses of each Fund continued to be reasonable.
Profitability, Benefits to Advisers and Economies of Scale
The Board considered information prepared by the Adviser relating to its costs and profits with respect to the Funds. The Board also considered the benefits received by the Adviser and its affiliates as a result of its relationship with the Funds, including investment advisory fees paid to the Adviser; fees paid to affiliates of the Adviser such as City National Bank, City National Securities, Inc. and RIM Securities, LLC for providing certain shareholder servicing and sub-distribution services to the Trust; benefits to City National Bank’s brokerage and wealth management businesses as a result of the availability of the Funds to its customers; research services made available to the Adviser by broker-dealers that provide execution services to the Funds; and the intangible benefits to the Adviser and its affiliates of their association with the Funds generally and any favorable publicity arising in connection with the Funds’ performance. The Board noted that the Adviser’s belief that the Funds had not yet reached asset levels at which significant economies of scale had been realized and breakpoints were warranted. The Board concluded that although there were no advisory fee breakpoints, in the current economic environment significant economies of scale were not available with respect to the Money Market Funds and were not likely to be realized with respect to the other Funds until the asset levels of those Funds were significantly higher than their current levels.
Conclusions
Based on their review, including their consideration of each of the factors referred to above, the Board and the Independent Trustees concluded that the compensation payable to the Adviser with respect to each of the Funds pursuant to its advisory agreements with the Trust is fair and reasonable in light of the nature and quality of the services being provided by it to the Funds and their shareholders, and that renewal of the agreements was in the best interest of the Funds and their shareholders.
CITY NATIONAL ROCHDALE FUNDS | PAGE 169
board approval of advisory and sub-advisory agreements
(Unaudited) (Continued)
SUB-ADVISERS
Nature, Extent and Quality of Services
In reviewing the services provided by each Sub-Adviser, the Board considered a variety of matters, including the background, education and experience of the Sub-Adviser’s key portfolio management and operational personnel; its overall financial strength and stability; its resources and related efforts to retain, attract and motivate capable personnel to serve the relevant Funds; and the overall general quality and depth of its organization. The Board also reviewed each Sub-Adviser’s investment philosophy and processes as well as its brokerage and trading practices, its disaster recovery and contingency planning, and its commitment to compliance with applicable laws and regulations and the Trust’s compliance policies and procedures. The Board found all of these matters to be satisfactory.
Investment Performance
The Board’s observations regarding the performance of the High Yield Bond Fund, Fixed Income Opportunities Fund and Socially Responsible Equity Fund are described above. In addition, the Board assessed the performance of each of Seix’s, Federated’s and GML Capital’s portion of the Fixed Income Opportunities Fund, compared with the Sub-Adviser’s respective benchmark for various periods ended June 30, 2014. The Board made the following additional observations in reviewing the annualized total returns of those Sub-Advisers:
| • | The annualized returns for Federated’s portion of the Fixed Income Opportunities Fund were slightly below the returns of the Barclays U.S. Corporate High Yield 2% Issuer Capped Index (by 73 basis points or less) for the one- and two-year periods but slightly above the benchmark for the three- year period ended June 30, 2014. |
| • | The annualized returns for Seix’s portion of the Fixed Income Opportunities Fund were below the returns of the Credit Suisse Leveraged Loan Index (by 79 basis points or less) for the one-, two- and three-year periods ended June 30, 2014. |
| • | The annualized returns for GML Capital’s portion of the Fixed Income Opportunities Fund were above the returns of the JP Morgan CEMBI Broad Diversified Index for the one- and two-year periods ended June 30, 2014. |
The Board noted the Adviser’s view that the investment performance of the Fund or Fund portfolio managed by each Sub-Adviser was satisfactory. The Board concluded that each Sub-Adviser continued to provide satisfactory services to the Funds.
Sub-Advisory Fees and Fund Expenses
The Board reviewed information regarding the sub-advisory fees charged by each Sub-Adviser and observed that the fees charged by each Sub-Adviser were generally equal to or lower than the fees it charged to its sub-advisory clients to manage comparable funds. The Board noted that Guggenheim’s sub-advisory fee with respect to the High Yield Bond Fund was higher than its fees with respect to other mutual funds for which it serves as sub-adviser, but also noted that each of those other funds was significantly larger than the Fund (with assets in excess of $1 billion in each case). The Board also observed that Seix’s sub-advisory fee with respect to the Fixed Income Opportunities Fund was higher than the fee it charged to another mutual fund for which it served as sub-adviser using a similar strategy, but noted that the other fund was significantly larger than the Fund (with assets over $8 billion) and was a part of a larger mutual fund complex for which Seix serves as sub-adviser. Additionally, the Board considered that Seix indicated that the lower sub-advisory fee for the other mutual fund it manages using a similar strategy reflected the economies of scale of the other fund and the group of funds of which it is a part. The Trustees noted that the Adviser pays all sub-advisory fees out of its advisory fees.
Benefits to Sub-Advisers
The Board considered the benefits received by each Sub-Adviser and its affiliates as a result of its relationship with the Funds, including the sub-advisory fees paid to the Sub-Adviser, any research services made available to the Sub-Adviser by broker-dealers providing execution services to the relevant Fund, the intangible benefits of the Sub-Adviser’s association with the Funds generally and any favorable publicity arising in connection with the Funds’ performance.
Conclusions
Based on their review, including their consideration of each of the factors referred to above, the Board and the Independent Trustees concluded that the compensation payable to each Sub-Adviser pursuant to its respective sub-advisory agreement is fair and reasonable in light of the nature and quality of the services being provided by each Sub-Adviser to the respective Fund and its shareholders, and that renewal of each sub-advisory agreement was in the best interest of the Funds and their shareholders.
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For more information on City National Rochdale Funds, including charges and expenses, please call 1-888-889-0799 or go to citynationalrochdalefunds.com for a free prospectus. Read it carefully before you invest or send money.
CNR-AR-001-1300
| Item 2. | Code of Ethics. |
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer and principal accounting officer.
| Item 3. | Audit Committee Financial Expert. |
(a)(1) The registrant’s board of trustees has determined that the registrant has at least one audit committee financial expert serving on the audit committee.
(a)(2) The audit committee financial experts are William R. Sweet and James R. Wolford. Messrs. Sweet and Wolford are independent as defined in Form N-CSR Item 3(a)(2).
| Item 4. | Principal Accountant Fees and Services. |
Fees billed by KPMG LLP Related to the Trust
KPMG LLP billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years as follows:
| 2014 | 2013 | ||||||
| All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | All fees and services to the Trust that were pre-approved | All fees and services to service affiliates that were pre-approved | All other fees and services to service affiliates that did not require pre-approval | ||
| (a) | Audit Fees(1) | $441,500 | N/A | N/A | $279,300 | N/A | N/A |
| (b) | Audit-Related Fees | $7,500 | N/A | N/A | $6,000 | N/A | N/A |
| (c) | Tax Fees | $84,015 | N/A | N/A | $47,113 | N/A | N/A |
| (d) | All Other Fees | N/A | N/A | N/A | N/A | N/A | N/A |
Notes:
| (1) | Audit fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. |
| (e)(1) | Not Applicable |
| (e)(2) | Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows: |
| 2014 | 2013 | |
| Audit-Related Fees | N/A | N/A |
| Tax Fees | N/A | N/A |
| All Other Fees | N/A | N/A |
| (f) | Not Applicable |
| (g) | The aggregate non-audit fees and services billed by KPMG LLP for the last two fiscal years were $84,015 and $47,113 for 2014 and 2013, respectively. |
| (h) | Not Applicable |
| 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. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005
| 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. |
There have been no changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees during the period covered by this report.
| 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 registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| Items 12. | Exhibits. |
(a)(1) Code of Ethics attached hereto.
(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) | City National Rochdale Funds | |
| By (Signature and Title) | /s/ Garrett R. D’Alessandro | |
| Garrett R. D’Alessandro, | ||
| President & Chief Executive Officer | ||
| Date: December 8, 2014 | ||
| 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/ Garrett R. D’Alessandro | |
| Garrett R. D’Alessandro, | ||
| President & Chief Executive Officer | ||
| Date: December 8, 2014 | ||
| By (Signature and Title) | /s/ Eric Kleinschmidt | |
| Eric Kleinschmidt, | ||
| Controller and COO | ||
Date: December 8, 2014