UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
811-10267
(Investment Company Act File Number)
ASSETMARK FUNDS
(Exact Name of Registrant as Specified in Charter)
2300 CONTRA COSTA BOULEVARD, SUITE 425, PLEASANT HILL, CA 945230-3967
(Address of Principal Executive Offices)
(800) 664-5345
(Registrant's Telephone Number)
CARRIE HANSEN
ASSETMARK INVESTMENT SERVICES, INC.
2300 CONTRA COSTA BOULEVARD, SUITE 425
PLEASANT HILL, CA 94523-3967
(Name and Address of Agent for Service)
COPIES TO:
MICHAEL P. O'HARE, ESQ. ELAINE RICHARDS, ESQ.
STRADLEY, RONON, STEVENS & YOUNG, LLP U.S. BANCORP FUND SERVICES, LLC
2600 ONE COMMERCE SQUARE 615 EAST MICHIGAN STREET
PHILADELPHIA, PA 19103-7098 MILWAUKEE, WISCONSIN 5320
DATE OF FISCAL YEAR END: JUNE 30, 2003
DATE OF REPORTING PERIOD: FISCAL PERIOD ENDED JUNE 30, 2003
ITEM 1: REPORT TO SHAREHOLDERS
(ASSETMARK FUNDS(R) LOGO)
Annual Report
June 30, 2003
Annual Report
June 30, 2003
(ASSETMARK FUNDS(R) LOGO)
INVESTMENT ADVISOR
AssetMark Investment Services, Inc.
ASSETMARK LARGE CAP GROWTH FUND
ASSETMARK LARGE CAP VALUE FUND
ASSETMARK SMALL/MID CAP GROWTH FUND
ASSETMARK SMALL/MID CAP VALUE FUND
ASSETMARK INTERNATIONAL EQUITY FUND
ASSETMARK REAL ESTATE SECURITIES FUND
ASSETMARK TAX-EXEMPT FIXED INCOME FUND
ASSETMARK CORE PLUS FIXED INCOME FUND
(ASSETMARK FUNDS(R) LOGO)
August 2003
Dear Shareholder:
Following their volatile performance in the second half of 2002, the major
stock markets encompassed a positive reversal in the first half of 2003, with
several important catalysts contributing to an upswing that began in late March.
Markets were weighed down in the First Quarter by weak earnings reports from
Wall Street and by fears of prolonged conflict in Iraq. Economic reports during
the quarter deteriorated1<F1> while unemployment continued to climb. However,
the tide turned with the conclusion of the War and a rebound in many important
economic metrics. Corporate profit reports during the Second Quarter showed
improvement, giving analysts hope for a second half recovery. In addition, the
U.S. economy received both fiscal and monetary stimulus during the Second
Quarter, with Congress' passage of tax relief in May and the Fed's decision to
cut rates by 25 basis points in June. The Fed's decision sparked a sell-off in
the bond market, but not enough to erase the strong gains accumulated earlier in
the quarter.
The AssetMark Funds have generally performed in accordance with their sectors
and style-orientation during this incredibly challenging period. In
consultation with Wilshire Associates, an institutional investment research and
consulting firm, AssetMark Investment Services, Inc. ("AssetMark") strives to
identify highly skilled investment managers as Sub-Advisors for each Fund. When
appropriate, AssetMark seeks to combine the skills of multiple managers with
complementary investment strategies to attempt to reduce volatility and achieve
more consistent investment results. During this ongoing process, AssetMark
leverages Wilshire's experienced investment staff, due diligence, and
proprietary research capabilities.
THE ASSETMARK LARGE CAP GROWTH FUND rose 4.26% for the 12 months ended
6/30/03, outperforming the Russell 1000 Growth Index2<F1>, a widely accepted
unmanaged benchmark for Large Cap Growth portfolios, which rose 2.94%. Atlanta
Capital trailed the benchmark during the period, returning -2.82%., while on the
other hand TCW Investment Management outperformed the benchmark by a wide
margin, returning 12.08% during the period.
THE ASSETMARK LARGE CAP VALUE FUND declined slightly for the 12 months ended
6/30/03, as did the Russell 1000 Value Index, a widely accepted unmanaged
benchmark for Large Cap Value portfolios. Brandes Investment Partners and Davis
Advisors trailed the benchmark during the period, returning -4.79% and -3.25%
respectively. For the 12 months ended 6/30/03, the AssetMark Large Cap Value
Fund returned -3.89%, as compared to -1.02% for the Russell 1000 Value Index.
THE ASSETMARK SMALL/MID CAP GROWTH FUND rose 6.11% for the 12 months ended
6/30/03, beating its benchmark, the Russell 2500 Growth Index, a widely accepted
unmanaged benchmark for portfolios of Small-to-Mid Cap Growth stocks, which
gained 4.11%. TCW Investment Management's aggressive growth strategy, propelled
by its allocation to the technology sector, outperformed the benchmark by a wide
margin returning 25.60%. On the other hand, William Blair & Co.' s more moderate
investment strategy, returned -11.11%, trailing the benchmark.
THE ASSETMARK SMALL/MID CAP VALUE FUND declined slightly, returning -0.20%,
modestly beating its Russell 2500 Value benchmark, which returned -0.60%. This
unmanaged index is a widely accepted benchmark for portfolios of Small-to-Mid
Cap Value stocks. Ariel Capital Management trailed the benchmark during the
period, returning -1.52%, while Cramer Rosenthal McGlynn, LLC beat the
benchmark, returning 1.23%.
THE ASSETMARK INTERNATIONAL EQUITY FUND returned -7.92% for the 12 months
ended 6/30/03, slightly trailing the MSCI EAFE Index of developed country non-
U.S. stocks, which returned -6.06%. This unmanaged benchmark is widely accepted
for International Equity portfolios. Both of the Fund's sub-advisors, Clay
Finlay Inc. and Oppenheimer Capital, Inc. were retained in December of 2002.
THE ASSETMARK REAL ESTATE SECURITIES FUND, sub-advised by Lend Lease Rosen
Real Estate Securities, rose 4.87% for the 12 months ended 6/30/03, beating the
Wilshire REIT benchmark, which gained 3.73%.
THE ASSETMARK TAX-EXEMPT INCOME FUND, sub-advised by Weiss, Peck & Greer,
posted a return of 7.78% for the 12 months ended 6/30/03, slightly lagging the
benchmark. Lehman Brothers Municipal Bond Index, a widely accepted unmanaged
benchmark for municipal bond portfolios, returned 8.74%.
THE ASSETMARK CORE PLUS FIXED INCOME FUND, a fund that purchases shares of
other institutional fixed income funds, outperformed the Lehman Brothers
Aggregate Bond Index for the 12 months ended 6/30/2003, returning 10.47% versus
10.40% for the benchmark. The Lehman Brothers Aggregate Bond Index is a widely
accepted unmanaged benchmark for Core U.S. Fixed Income portfolios. The
International and High Yield portions of the Fund had a positive contribution to
the Fund's returns during the first half of 2003.
In consultation with Wilshire Associates, AssetMark continues to research and
monitor a broad universe of investment managers in our endeavor to provide
shareholders with superior investment results. We thank you for the opportunity
to shepherd your investments in what has been, on many levels, a difficult
environment. We believe the AssetMark Funds are well positioned to meet the
challenges and opportunities that lie ahead.
Sincerely,
/s/ Ronald D. Cordes
Ronald D. Cordes,
President
AssetMark Funds
1<F1> Including the Conference Board's consumer confidence reading, the ISM
manufacturing surveys, and US government reports on consumer spending.
2<F2> Source: All benchmark return data provided by Lipper Inc. One cannot
invest directly in an index, nor is an index representative of any
Fund's portfolio. The indexes provided are widely accepted benchmarks
for the associated portfolios. The performance data quoted represents
past performance. The investment return 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.
AssetMark Large Cap Growth Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
AssetMark Large Lipper Large-Cap Russell 1000
Date Cap Growth Fund Growth Funds Index Growth Index
---- --------------- ------------------ ------------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $7,380.00 $8,013.00 $8,059.00
12/31/2001 $8,990.00 $9,152.00 $9,279.00
3/31/2002 $8,930.00 $8,919.00 $9,039.00
6/30/2002 $7,280.00 $7,508.00 $7,351.00
9/30/2002 $5,890.00 $6,305.00 $6,245.00
12/31/2002 $6,530.00 $6,578.00 $6,691.00
3/31/2003 $6,551.00 $6,477.00 $6,620.00
6/30/2003 $7,590.00 $7,352.00 $7,567.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
RUSSELL 1000 GROWTH INDEX - An unmanaged index which measures the performance of
those Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values. The Russell 1000 Index is an unmanaged index which
measures the performance of the 1,000 largest companies in the Russell 3000
Index. The Russell 3000 Index is an unmanaged index which measures the
performance of the 3,000 largest U.S. Companies, based on total market
capitalization, which represents approximately 98% of the investable U.S. equity
market.
LIPPER LARGE-CAP GROWTH FUNDS INDEX - An unmanaged index which measures the
composite performance of the 30 largest "large-cap growth" mutual funds, as
categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Large Cap Growth Fund 4.26% -12.86%
Russell 1000 Growth Index 2.94% -13.01%
Lipper Large-Cap Growth Funds Index -2.08% -14.25%
AssetMark Large Cap Growth Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
COMMON STOCK 93.95%
MINING 1.16%
OIL AND GAS EXTRACTION 1.16%
20,985 Apache Corporation $ 1,365,284
------------
Total Mining 1,365,284
------------
MANUFACTURING 49.60%
FOOD AND KINDRED PRODUCTS 0.88%
22,500 The Coca-Cola Company 1,044,225
------------
PRINTING, PUBLISHING AND
ALLIED INDUSTRIES 1.54%
10,400 The New York Times Company 473,200
30,900 Viacom Inc. #<F3> 1,349,094
------------
1,822,294
------------
CHEMICALS AND ALLIED PRODUCTS 18.08%
27,400 Air Products and Chemicals, Inc. 1,139,840
73,650 Amgen Inc. #<F3> 4,893,306
14,200 Colgate-Palmolive Company 822,890
37,600 Ecolab Inc. 962,560
46,650 Eli Lilly and Company 3,217,451
25,200 The Estee Lauder Companies Inc. 844,956
54,610 Genentech, Inc. #<F3> 3,938,473
54,700 MedImmune, Inc. #<F3> 1,990,533
8,900 Merck & Co. Inc. 538,895
54,500 Pfizer Inc. 1,861,175
63,700 Schering-Plough Corporation 1,184,820
------------
21,394,899
------------
PETROLEUM REFINING AND
RELATED INDUSTRIES 0.68%
22,400 Exxon Mobil Corporation 804,384
------------
FABRICATED METAL PRODUCTS, EXCEPT
MACHINERY AND TRANSPORTATION
EQUIPMENT 0.97%
17,500 Illinois Tool Works Inc. 1,152,375
------------
INDUSTRIAL AND COMMERCIAL
MACHINERY AND COMPUTER
EQUIPMENT 10.72%
114,900 Applied Materials, Inc. #<F3> 1,820,016
187,900 Cisco Systems, Inc. #<F3> 3,154,841
132,850 Dell Computer Corporation 4,229,944
37,100 Dover Corporation 1,111,516
113,100 EMC Corporation #<F3> 1,184,157
9,200 3M Co. 1,186,616
------------
12,687,090
------------
ELECTRONIC AND OTHER ELECTRICAL
EQUIPMENT AND COMPONENTS,
EXCEPT COMPUTER EQUIPMENT 12.88%
30,800 American Power
Conversion Corporation 480,788
28,000 Emerson Electric Co. 1,430,800
34,950 General Electric Company 1,002,366
110,600 Intel Corporation 2,298,710
17,000 Linear Technology Corporation 550,290
68,200 Maxim Integrated Products, Inc. 2,325,620
43,900 Microchip Technology Incorporated 1,086,525
33,100 Molex Incorporated 893,038
159,300 Network Appliance, Inc. #<F3> 2,561,544
32,450 QUALCOMM Inc. 1,166,253
57,400 Xilinx, Inc. #<F3> 1,452,220
------------
15,248,154
------------
TRANSPORTATION EQUIPMENT 0.86%
25,600 Harley-Davidson, Inc. 1,020,416
------------
MEASURING, ANALYZING AND
CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL AND OPTICAL
GOODS; WATCHES AND CLOCKS 2.12%
21,900 DENTSPLY International Inc. 897,462
33,700 Medtronic, Inc. 1,616,589
------------
2,514,051
------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES 0.87%
31,300 Tiffany & Co. 1,022,884
------------
Total Manufacturing 58,710,772
------------
TRANSPORTATION,
COMMUNICATIONS, ELECTRIC,
GAS AND SANITARY SERVICES 2.67%
TRANSPORTATION BY AIR 1.27%
87,300 Southwest Airlines Co. 1,501,560
------------
COMMUNICATIONS 1.40%
23,100 ALLTEL Corporation 1,113,882
13,800 Verizon Communications Inc. 544,410
------------
1,658,292
------------
Total Transportation, Communications,
Electric, Gas and Sanitary Services 3,159,852
------------
WHOLESALE TRADE 1.59%
WHOLESALE TRADE - DURABLE GOODS 0.69%
15,800 Johnson & Johnson 816,860
------------
WHOLESALE TRADE - NON-DURABLE GOODS 0.90%
35,400 Sysco Corporation 1,063,416
------------
Total Wholesale Trade 1,880,276
------------
RETAIL TRADE 12.17%
BUILDING MATERIALS, HARDWARE,
GARDEN SUPPLY AND MOBILE
HOME DEALERS 1.04%
28,700 Lowe's Companies, Inc. 1,232,665
------------
GENERAL MERCHANDISE STORES 1.30%
28,600 Wal-Mart Stores, Inc. 1,534,962
------------
APPAREL AND ACCESSORY STORES 0.98%
22,600 Kohl's Corporation #<F3> 1,161,188
------------
HOME FURNITURE, FURNISHINGS
AND EQUIPMENT STORES 0.79%
24,000 Bed Bath & Beyond Inc. #<F3> 931,680
------------
EATING AND DRINKING PLACES 0.85%
28,100 Brinker International, Inc. #<F3> 1,012,162
------------
MISCELLANEOUS RETAIL 7.21%
92,000 Amazon.com, Inc. #<F3> 3,341,440
27,500 eBay Inc. #<F3> 2,860,000
77,500 Walgreen Co. 2,332,750
------------
8,534,190
------------
Total Retail Trade 14,406,847
------------
FINANCE, INSURANCE
AND REAL ESTATE 14.94%
DEPOSITORY INSTITUTIONS 1.79%
26,500 BB&T Corporation 908,950
15,300 Bank of America Corporation 1,209,159
------------
2,118,109
------------
NON-DEPOSITORY CREDIT INSTITUTIONS 0.99%
28,000 American Express Company 1,170,680
------------
SECURITY AND COMMODITY BROKERS,
DEALERS, EXCHANGES AND SERVICES 2.70%
127,300 The Charles Schwab Corporation 1,284,457
27,400 Franklin Resources, Inc. 1,070,518
26,500 SEI Investments Company 848,000
------------
3,202,975
------------
INSURANCE CARRIERS 9.46%
80,600 AFLAC INCORPORATED 2,478,450
47,400 American International Group, Inc. 2,615,532
66,150 The Progressive Corporation 4,835,565
15,000 WellPoint Health Networks Inc. #<F3> 1,264,500
------------
11,194,047
------------
Total Finance, Insurance
and Real Estate 17,685,811
------------
SERVICES 11.82%
BUSINESS SERVICES 11.00%
12,700 Adobe Systems Incorporated 407,416
51,800 Concord EFS, Inc. #<F3> 762,496
18,000 Fiserv, Inc. #<F3> 640,980
135,700 Microsoft Corporation 3,479,348
12,300 Omnicom Group Inc. 881,910
32,450 Pixar, Inc. #<F3> 1,965,821
126,600 Siebel Systems, Inc. #<F3> 1,200,548
38,600 SunGard Data Systems Inc. #<F3> 1,000,126
82,000 Yahoo! Inc. #<F3> 2,681,400
------------
13,020,045
------------
HEALTH SERVICES 0.82%
52,500 Health Management Associates, Inc. 968,625
------------
Total Services 13,988,670
------------
TOTAL COMMON STOCK
(COST $104,895,161) 111,197,512
------------
SHORT TERM INVESTMENTS 4.92%
MONEY MARKET FUND 4.92%
5,822,872 Federated Prime Obligations Fund 5,822,872
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $5,822,872) 5,822,872
------------
TOTAL INVESTMENTS 98.87%
(COST $110,718,033) 117,020,384
------------
OTHER ASSETS, LESS
LIABILITIES 1.13% 1,342,942
------------
NET ASSETS 100% $118,363,326
------------
------------
#<F3> Non-income producing security.
See notes to financial statements.
AssetMark Large Cap Value Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
AssetMark Large Russell 1000 Lipper Large-Cap
Date Cap Value Fund Value Index Value Funds Index
---- -------------- ----------- -----------------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $9,140.00 $8,905.00 $8,729.00
12/31/2001 $10,067.00 $9,561.00 $9,490.00
3/31/2002 $10,338.00 $9,952.00 $9,672.00
6/30/2002 $9,224.00 $9,104.00 $8,626.00
9/30/2002 $7,058.00 $7,395.00 $7,016.00
12/31/2002 $7,815.00 $8,076.00 $7,622.00
3/31/2003 $7,230.00 $7,683.00 $7,250.00
6/30/2003 $8,865.00 $9,010.00 $8,442.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
RUSSELL 1000 VALUE INDEX - An unmanaged index which measures the performance of
those Russell 1000 companies with lower price-to-book ratios and lower
forecasted growth values. The Russell 1000 Index is an unmanaged index which
measures the performance of the 1,000 largest companies in the Russell 3000
Index. The Russell 3000 Index is an unmanaged index which measures the
performance of the 3,000 largest U.S. Companies, based on total market
capitalization, which represents approximately 98% of the investable U.S. equity
market.
LIPPER LARGE-CAP VALUE FUNDS INDEX - An unmanaged index which measures the
composite performance of the 30 largest "large-cap value" mutual funds, as
categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Large Cap Value Fund -3.89% -5.84%
Russell 1000 Value Index -1.02% -0.19%
Lipper Large-Cap Value Funds Index -2.13% -8.12%
AssetMark Large Cap Value Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
COMMON STOCK 93.87%
MINING 2.19%
OIL AND GAS EXTRACTION 1.81%
25,300 Devon Energy Corporation $ 1,351,020
18,700 EOG Resources, Inc. 782,408
------------
2,133,428
------------
MINING AND QUARRYING OF NONMETALLIC
MINERALS, EXCEPT FUELS 0.38%
12,200 Vulcan Materials Company 452,254
------------
Total Mining 2,585,682
------------
MANUFACTURING 31.81%
FOOD AND KINDRED PRODUCTS 2.77%
90,430 Archer-Daniels-Midland Company 1,163,834
23,300 Diageo PLC 1,019,608
9,100 Hershey Foods Corporation 633,906
13,800 Kraft Foods Inc. 449,190
------------
3,266,538
------------
TOBACCO PRODUCTS 5.31%
113,500 Altria Group, Inc. 5,157,440
16,390 R.J. Reynolds Tobacco
Holdings, Inc. 609,872
14,100 UST Inc. 493,923
------------
6,261,235
------------
FURNITURE AND FIXTURES 0.52%
13,360 Lear Corporation #<F4> 614,827
------------
PAPER AND ALLIED PRODUCTS 0.65%
14,720 Kimberly-Clark Corporation 767,501
------------
PRINTING, PUBLISHING AND
ALLIED INDUSTRIES 0.93%
30,100 American Greetings Corporation #<F4> 591,164
6,600 Gannett Co., Inc. 506,946
------------
1,098,110
------------
CHEMICALS AND ALLIED PRODUCTS 4.42%
50,350 Bristol-Myers Squibb Company 1,367,002
15,900 Eli Lilly and Company 1,096,623
13,500 Great Lakes Chemical Corporation 275,400
5,600 Merck & Co. Inc. 339,080
21,300 Pfizer Inc. 727,395
75,190 Schering-Plough Corporation 1,398,534
------------
5,204,034
------------
PETROLEUM REFINING AND
RELATED INDUSTRIES 1.97%
27,552 ConocoPhillips 1,509,850
30,900 Marathon Oil Corporation 814,215
------------
2,324,065
------------
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS 2.84%
95,500 The Goodyear Tire &
Rubber Company #<F4> 501,375
49,000 Sealed Air Corporation #<F4> 2,335,340
35,800 Tupperware Corporation 514,088
------------
3,350,803
------------
PRIMARY METAL INDUSTRIES 0.76%
54,830 United States Steel Corporation 897,567
------------
INDUSTRIAL AND COMMERCIAL MACHINERY
AND COMPUTER EQUIPMENT 2.45%
22,900 Dover Corporation 686,084
66,986 Hewlett-Packard Company 1,426,802
7,100 Lexmark International, Inc. #<F4> 502,467
71,000 Solectron Corporation #<F4> 265,540
------------
2,880,893
------------
ELECTRONIC AND OTHER ELECTRICAL
EQUIPMENT AND COMPONENTS,
EXCEPT COMPUTER EQUIPMENT 3.38%
605,690 Lucent Technologies Inc. #<F4> 1,229,551
101,330 Micron Technology, Inc. #<F4> 1,178,468
166,810 Motorola, Inc. 1,573,018
------------
3,981,037
------------
TRANSPORTATION EQUIPMENT 3.14%
41,200 The Boeing Company 1,413,984
106,740 Ford Motor Company 1,173,073
30,850 General Motors Corporation 1,110,600
------------
3,697,657
------------
MEASURING, ANALYZING AND
CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL AND OPTICAL
GOODS; WATCHES AND CLOCKS 1.23%
136,700 Xerox Corporation #<F4> 1,447,653
------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES 1.44%
89,200 Tyco International Ltd. 1,693,016
------------
Total Manufacturing 37,484,936
------------
TRANSPORTATION,
COMMUNICATIONS, ELECTRIC,
GAS AND SANITARY SERVICES 12.95%
MOTOR FREIGHT TRANSPORTATION
AND WAREHOUSING 0.63%
11,600 United Parcel Service, Inc. 738,920
------------
TRANSPORTATION BY AIR 1.10%
82,540 AMR Corporation #<F4> 907,940
26,500 Delta Air Lines, Inc. 389,020
------------
1,296,960
------------
COMMUNICATIONS 6.19%
168,600 Avaya Inc. #<F4> 1,089,156
55,520 BellSouth Corporation 1,478,498
70,620 SBC Communications Inc. 1,804,341
102,380 Sprint Corporation 1,474,272
36,850 Verizon Communications Inc. 1,453,732
------------
7,299,999
------------
ELECTRIC, GAS AND SANITARY SERVICES 5.03%
66,960 Duke Energy Corporation 1,335,852
48,200 Edison International #<F4> 791,926
115,420 EL Paso Corporation 932,594
10,000 FirstEnergy Corp. 384,500
62,430 PG&E Corporation #<F4> 1,320,394
48,090 Waste Management, Inc. 1,158,488
------------
5,923,754
------------
Total Transportation, Communications,
Electric, Gas and Sanitary Services 15,259,633
------------
WHOLESALE TRADE 2.03%
WHOLESALE TRADE - NON-DURABLE GOODS 2.03%
116,940 Safeway Inc. #<F4> 2,392,592
------------
Total Wholesale Trade 2,392,592
------------
RETAIL TRADE 9.92%
BUILDING MATERIALS, HARDWARE,
GARDEN SUPPLY AND MOBILE
HOME DEALERS 0.71%
31,300 The Sherwin-Williams Company 841,344
------------
GENERAL MERCHANDISE STORES 3.69%
65,900 Costco Wholesale Corporation #<F4> 2,411,940
22,830 Federated Department Stores, Inc. 841,285
49,100 The May Department
Stores Company 1,092,966
------------
4,346,191
------------
FOOD STORES 2.79%
91,670 Albertson's, Inc. 1,760,064
91,270 The Kroger Co. #<F4> 1,522,384
------------
3,282,448
------------
HOME FURNITURE, FURNISHINGS
AND EQUIPMENT STORES 0.43%
19,400 RadioShack Corporation 510,414
------------
EATING AND DRINKING PLACES 1.39%
74,380 McDonald's Corporation 1,640,823
------------
MISCELLANEOUS RETAIL 0.91%
87,920 Toys "R" Us, Inc. #<F4> 1,065,590
------------
Total Retail Trade 11,686,810
------------
FINANCE, INSURANCE
AND REAL ESTATE 27.62%
DEPOSITORY INSTITUTIONS 11.99%
60,500 Bank One Corporation 2,249,390
61,800 Citigroup Inc. 2,645,040
23,400 FleetBoston Financial Corporation 695,214
25,500 Golden West Financial Corporation 2,040,255
39,769 HSBC Holdings PLC 2,350,746
29,600 J.P. Morgan Chase & Co. 1,011,728
23,200 Lloyds TSB Group PLC 673,032
48,800 Wells Fargo & Company 2,459,520
------------
14,124,925
------------
NON-DEPOSITORY CREDIT
INSTITUTIONS 4.15%
80,100 American Express Company 3,348,981
62,480 CIT Group Inc. 1,540,132
------------
4,889,113
------------
SECURITY AND COMMODITY
BROKERS, DEALERS, EXCHANGES
AND SERVICES 0.80%
22,100 Morgan Stanley 944,775
------------
944,775
------------
INSURANCE CARRIERS 7.97%
61,200 American International Group, Inc. 3,377,016
2,900 American National
Insurance Company 250,067
53,940 Loews Corporation 2,550,823
60,780 The Phoenix Companies, Inc. 548,843
22,900 The Progressive Corporation 1,673,990
14,400 Transatlantic Holdings, Inc. 995,760
------------
9,396,499
------------
INSURANCE AGENTS, BROKERS
AND SERVICES 0.62%
30,400 Aon Corporation 732,032
------------
HOLDING AND OTHER
INVESTMENT OFFICES 2.09%
1,014 Berkshire Hathaway Inc. #<F4> 2,464,020
------------
Total Finance, Insurance,
and Real Estate 32,551,364
------------
SERVICES 7.35%
HOTELS, ROOMING HOUSES, CAMPS
AND OTHER LODGING PLACES 0.44%
13,500 Marriott International, Inc. 518,670
------------
PERSONAL SERVICES 0.42%
127,610 Service Corporation International #<F4> 493,851
------------
BUSINESS SERVICES 4.29%
15,600 D&B Corporation #<F4> 641,160
54,850 Electronic Data
Systems Corporation 1,176,532
23,900 Microsoft Corporation 612,796
41,190 NCR Corporation #<F4> 1,055,288
127,970 Unisys Corporation #<F4> 1,571,472
------------
5,057,248
------------
HEALTH SERVICES 1.52%
153,940 Tenet Healthcare Corporation #<F4> 1,793,401
------------
ENGINEERING, ACCOUNTING, RESEARCH,
MANAGEMENT AND RELATED SERVICES 0.68%
15,200 Moody's Corporation 801,192
------------
Total Services 8,664,362
------------
TOTAL COMMON STOCK
(COST $104,930,167) 110,625,379
------------
SHORT TERM INVESTMENTS 7.15%
MONEY MARKET FUND 7.15%
8,421,383 Federated Prime Obligations Fund 8,421,383
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $8,421,383) 8,421,383
------------
TOTAL INVESTMENTS 101.02%
(COST $113,351,550) 119,046,762
------------
LIABILITIES, LESS OTHER
ASSETS (1.02)% (1,199,515)
------------
NET ASSETS 100% $117,847,247
------------
------------
#<F4> Non-income producing security.
See notes to financial statements.
AssetMark Small/Mid Cap Growth Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
AssetMark Small/Mid Russell 2500 Lipper Small-Cap
Date Cap Growth Fund Growth Index Growth Funds Index
---- --------------- ------------ ------------------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $7,170.00 $7,293.00 $7,497.00
12/31/2001 $9,300.00 $9,182.00 $9,195.00
3/31/2002 $8,960.00 $8,911.00 $9,063.00
6/30/2002 $7,200.00 $7,429.00 $7,840.00
9/30/2002 $5,800.00 $6,013.00 $6,311.00
12/31/2002 $6,420.00 $6,511.00 $6,656.00
3/31/2003 $6,361.00 $6,303.00 $6,407.00
6/30/2003 $7,640.00 $7,735.00 $7,903.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
RUSSELL 2500 GROWTH INDEX - An unmanaged index which measures the performance of
those Russell 2500 Index companies with higher price-to-book ratios and higher
forecasted growth values. The Russell 2500 Index measures the performance of
the 2,500 smallest companies in the Russell 3000 Index. The Russell 3000 Index
is an unmanaged index which measures the performance of the 3,000 largest U.S.
companies based on total market capitalization, which represents approximately
98% of the investable U.S. equity market.
LIPPER SMALL-CAP GROWTH FUNDS INDEX - An unmanaged index which measures the
composite performance of the 30 largest "small-cap growth" mutual funds, as
categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Small/Mid Cap Growth Fund 6.11% -12.58%
Russell 2500 Growth Index 4.11% -12.06%
Lipper Small-Cap Growth Funds Index 0.80% -11.10%
AssetMark Small/Mid Cap Growth Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
COMMON STOCK 96.83%
MANUFACTURING 26.10%
CHEMICALS AND ALLIED PRODUCTS 6.43%
30,975 Axcan Pharma Inc. #<F5> $ 388,736
4,200 Genentech, Inc. #<F5> 302,904
17,800 Gilead Sciences, Inc. #<F5> 988,790
9,500 MedImmune, Inc. #<F5> 345,705
-----------
2,026,135
-----------
STONE, CLAY, GLASS AND
CONCRETE PRODUCTS 0.97%
9,950 Gentex Corporation #<F5> 304,968
-----------
PRIMARY METAL INDUSTRIES 1.08%
13,750 Matthews International Corporation 340,450
-----------
ELECTRONIC AND OTHER ELECTRICAL
EQUIPMENT AND COMPONENTS,
EXCEPT COMPUTER EQUIPMENT 13.89%
11,900 Altera Corporation #<F5> 195,160
26,000 Applied Micro
Circuits Corporation #<F5> 157,300
22,500 CIENA Corporation #<F5> 116,325
10,600 GlobespanVirata, Inc. #<F5> 88,616
7,011 Harris Corporation 210,681
7,600 Intersil Corporation #<F5> 202,236
27,500 Maxim Integrated Products, Inc. 937,750
14,187 Microchip Technology Incorporated 351,128
20,560 Monolithic System
Technology, Inc. #<F5> 187,302
17,800 Network Appliance, Inc. #<F5> 286,224
6,400 Novellus Systems, Inc. #<F5> 234,374
13,625 OSI Systems, Inc. #<F5> 218,000
8,500 Research In Motion Limited #<F5> 183,770
6,075 Semtech Corporation #<F5> 86,569
36,500 Xilinx, Inc. #<F5> 923,450
-----------
4,378,885
-----------
MEASURING, ANALYZING, AND
CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL AND OPTICAL
GOODS; WATCHES AND CLOCKS 3.73%
3,700 Biosite Incorporated #<F5> 178,266
82,050 CardioDynamics
International Corporation #<F5> 278,970
11,000 Integra LifeSciences Holdings #<F5> 289,960
10,975 ResMed Inc. #<F5> 430,220
-----------
1,177,416
-----------
Total Manufacturing 8,227,854
-----------
TRANSPORTATION,
COMMUNICATIONS, ELECTRIC,
GAS, AND SANITARY SERVICES 18.66%
TRANSPORTATION BY AIR 1.11%
7,800 Ryanair Holdings PLC #<F5> 350,376
-----------
TRANSPORTATION SERVICES 3.33%
7,025 C.H. Robinson Worldwide, Inc. 248,685
10,200 Expedia, Inc. - Class A #<F5> 776,628
422 Expedia, Inc. - Warrant #<F5> 23,016
-----------
1,048,329
-----------
COMMUNICATIONS 13.39%
12,600 Cablevision Systems
New York Group #<F5> 261,576
8,100 Clear Channel
Communications, Inc. #<F5> 343,359
13,400 Cox Radio, Inc. #<F5> 309,674
29,200 EchoStar Communications
Corporation #<F5> 1,010,904
11,225 Emmis Communications
Corporation #<F5> 257,614
24,400 Entravision Communications
Corporation #<F5> 276,940
7,675 Global Payments Inc. 272,463
7,450 Hispanic Broadcasting Corporation #<F5> 189,603
37,500 Mediacom Communications
Corporation #<F5> 366,000
36,000 Sprint Corp (PCS Group) #<F5> 207,000
13,100 Time Warner Telecom Inc. #<F5> 80,434
21,200 Univision Communications Inc. #<F5> 644,480
-----------
4,220,047
-----------
ELECTRIC, GAS AND
SANITARY SERVICES 0.83%
6,825 Stericycle, Inc. #<F5> 261,807
-----------
Total Transportation, Communications,
Electric, Gas and Sanitary Services 5,880,559
-----------
WHOLESALE TRADE 2.36%
WHOLESALE TRADE -
DURABLE GOODS 0.94%
11,850 Knight Transportation, Inc. #<F5> 295,420
-----------
WHOLESALE TRADE -
NON-DURABLE GOODS 1.42%
26,750 Airgas, Inc. 448,063
-----------
Total Wholesale Trade 743,483
-----------
RETAIL TRADE 15.34%
BUILDING MATERIALS, HARDWARE,
GARDEN SUPPLY AND MOBILE
HOME DEALERS 1.08%
10,000 Fastenal Company 339,400
-----------
GENERAL MERCHANDISE STORES 1.37%
11,575 Fred's, Inc. 433,021
-----------
FOOD STORES 0.74%
4,925 Whole Foods Market, Inc. #<F5> 234,085
-----------
HOME FURNITURE, FURNISHINGS
AND EQUIPMENT STORES 4.01%
22,400 Bed Bath & Beyond Inc. #<F5> 869,568
13,525 Williams-Sonoma, Inc. #<F5> 394,930
-----------
1,264,498
-----------
MISCELLANEOUS RETAIL 8.14%
15,300 Amazon.com, Inc. #<F5> 555,696
16,200 eBay Inc. #<F5> 1,684,800
8,550 Michaels Stores, Inc. 325,413
-----------
2,565,909
-----------
Total Retail Trade 4,836,913
-----------
FINANCE, INSURANCE
AND REAL ESTATE 5.62%
DEPOSITORY INSTITUTIONS 3.12%
16,225 Boston Private Financial
Holdings, Inc. 342,672
30,575 Euronet Worldwide, Inc. #<F5> 328,681
10,750 Investors Financial Services Corp. 311,212
-----------
982,565
-----------
SECURITY AND COMMODITY BROKERS,
DEALERS, EXCHANGES AND SERVICES 2.28%
1,800 The Chicago Mercantile Exchange 125,334
7,600 SEI Investments Company 243,200
9,300 T. Rowe Price Group Inc. 351,261
-----------
719,795
-----------
INSURANCE CARRIERS 0.22%
1,900 Cincinnati Financial Corporation 70,376
-----------
Total Finance, Insurance,
and Real Estate 1,772,736
-----------
SERVICES 28.75%
PERSONAL SERVICES 2.66%
24,025 FirstService Corporation #<F5> 372,339
15,875 Regis Corporation 461,169
100 Weight Watchers International, Inc. #<F5> 4,549
-----------
838,057
-----------
BUSINESS SERVICES 14.87%
21,225 Activision, Inc. #<F5> 276,562
19,700 Agile Software Corporation #<F5> 189,908
17,900 BEA Systems, Inc. #<F5> 194,931
15,350 The BISYS Group, Inc. #<F5> 281,979
9,800 CheckFree Corp. #<F5> 274,400
6,300 Cognex Corporation #<F5> 140,679
9,287 Iron Mountain Incorporated #<F5> 344,455
31,100 Juniper Networks, Inc. #<F5> 387,817
34,050 OPNET Technologies, Inc. #<F5> 415,069
6,100 Robert Half International, Inc. #<F5> 115,534
36,500 Siebel Systems, Inc. #<F5> 346,130
66,307 SkillSoft PLC #<F5> 334,850
14,675 StarTek, Inc. #<F5> 385,953
2,600 Symantec Corporation #<F5> 114,166
15,100 webMethods, Inc. #<F5> 122,461
23,300 Yahoo! Inc. #<F5> 761,910
-----------
4,686,804
-----------
AMUSEMENT AND RECREATION SERVICES 3.64%
13,975 Speedway Motorsports, Inc. 374,530
22,800 Westwood One, Inc. 773,604
-----------
1,148,134
-----------
HEALTH SERVICES 2.45%
5,510 American Healthways, Inc. #<F5> 198,470
17,050 Cross Country Healthcare, Inc. #<F5> 224,378
5,100 Express Scripts, Inc. #<F5> 347,769
-----------
770,617
-----------
LEGAL SERVICES 0.80%
10,325 Pre-Paid Legal Services, Inc. #<F5> 253,272
-----------
EDUCATIONAL SERVICES 2.12%
8,325 Education Management
Corporation #<F5> 442,724
38,325 The Princeton Review, Inc. #<F5> 226,117
-----------
668,841
-----------
ENGINEERING, ACCOUNTING, RESEARCH,
MANAGEMENT AND RELATED SERVICES 2.21%
14,700 Paychex, Inc. 432,033
9,775 Kroll Inc. #<F5> 263,827
-----------
695,860
-----------
Total Services 9,061,585
-----------
TOTAL COMMON STOCK
(COST $27,110,632) 30,523,130
-----------
SHORT TERM INVESTMENTS 4.32%
MONEY MARKET FUND 4.32%
1,360,816 Federated Prime Obligations Fund 1,360,816
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,360,816) 1,360,816
-----------
TOTAL INVESTMENTS 101.15%
(COST $28,471,448) 31,883,946
-----------
LIABILITIES, LESS OTHER
ASSETS (1.15)% (363,100)
-----------
NET ASSETS 100% $31,520,846
-----------
-----------
#<F5> Non-income producing security.
See notes to financial statements.
AssetMark Small/Mid Cap Value Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
AssetMark Small/Mid Russell 2500 Lipper Small-Cap
Date Cap Value Fund Value Index Value Funds Index
---- -------------- ----------- -----------------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $8,840.00 $8,755.00 $8,560.00
12/31/2001 $10,330.00 $10,179.00 $10,148.00
3/31/2002 $10,990.00 $11,045.00 $10,959.00
6/30/2002 $10,150.00 $10,659.00 $10,510.00
9/30/2002 $8,500.00 $8,700.00 $8,530.00
12/31/2002 $8,960.00 $9,173.00 $9,010.00
3/31/2003 $8,510.00 $8,736.00 $8,491.00
6/30/2003 $10,130.00 $10,595.00 $10,428.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
RUSSELL 2500 VALUE INDEX - An unmanaged index which measures the performance of
those Russell 2500 Index companies with lower price-to-book ratios and lower
forecasted growth values. The Russell 2500 Index is an unmanaged index which
measures the performance of the 2,500 smallest companies in the Russell 3000
Index. The Russell 3000 Index is an unmanaged index which measures the
performance of the 3,000 largest U.S. companies based on total market
capitalization, which represents approximately 98% of the investable U.S. equity
market.
LIPPER SMALL-CAP VALUE FUNDS INDEX - An unmanaged index which measures the
composite performance of the 30 largest "small-cap value" mutual funds, as
categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Small/Mid Cap Value Fund -0.20% 0.65%
Russell 2500 Value Index -0.60% 2.93%
Lipper Small-Cap Value Funds Index -0.78% 2.12%
AssetMark Small/Mid Cap Value Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
COMMON STOCK 95.28%
MINING 1.75%
OIL AND GAS EXTRACTION 1.75%
8,700 Forest Oil Corporation #<F6> $ 218,544
16,000 Pride International, Inc. #<F6> 301,120
-----------
519,664
-----------
Total Mining 519,664
-----------
MANUFACTURING 26.28%
FOOD AND KINDRED PRODUCTS 1.30%
4,100 Adolph Coors Company 200,818
6,850 McCormick &
Company, Incorporated 186,320
-----------
387,138
-----------
FURNITURE AND FIXTURES 2.17%
14,600 Herman Miller, Inc. 292,876
6,500 La-Z-Boy Incorporated 145,470
17,600 Steelcase Inc. 206,976
-----------
645,322
-----------
PAPER AND ALLIED PRODUCTS 0.80%
12,900 Packaging Corp of America #<F6> 237,747
-----------
PRINTING, PUBLISHING
AND ALLIED INDUSTRIES 3.28%
9,100 Belo Corp. 203,476
9,700 Harte-Hanks, Inc. 184,300
6,515 The McClatchy Company 375,394
8,200 Valassis Communications, Inc. #<F6> 210,904
-----------
974,074
-----------
CHEMICALS AND ALLIED PRODUCTS 4.74%
6,900 The Clorox Company 294,285
23,400 The Dial Corporation 455,130
13,300 Georgia Gulf Corporation 263,340
8,500 International Flavors
& Fragrances Inc. 271,405
2,900 The Valspar Corporation 122,438
-----------
1,406,598
-----------
INDUSTRIAL AND COMMERCIAL MACHINERY
AND COMPUTER EQUIPMENT 6.08%
7,625 The Black & Decker Corporation 331,306
10,225 IDEX Corporation 370,554
8,900 Kennametal Inc. 301,176
11,375 Pitney Bowes Inc. 436,914
13,300 The Stanley Works 367,080
-----------
1,807,030
-----------
ELECTRONIC AND OTHER ELECTRICAL
EQUIPMENT AND COMPONENTS,
EXCEPT COMPUTER EQUIPMENT 3.47%
58,400 Agere Systems Inc. #<F6> 134,320
5,300 AMETEK, Inc. 194,245
17,600 Andrew Corporation #<F6> 164,384
7,700 Energizer Holdings, Inc. #<F6> 241,780
8,800 Fairchild Semiconductor
International, Inc. #<F6> 112,552
7,500 Rockwell Collins, Inc. 184,725
-----------
1,032,006
-----------
TRANSPORTATION EQUIPMENT 1.07%
15,200 Goodrich Corporation 319,200
-----------
MEASURING, ANALYZING AND
CONTROLLING INSTRUMENTS;
PHOTOGRAPHIC, MEDICAL AND OPTICAL
GOODS; WATCHES AND CLOCKS 2.34%
10,900 Baxter International Inc. 283,400
2,800 C.R. Bard, Inc. 199,668
6,400 Invacare Corporation 211,200
-----------
694,268
-----------
MISCELLANEOUS MANUFACTURING
INDUSTRIES 1.03%
17,475 Hasbro, Inc. 305,638
-----------
Total Manufacturing 7,809,021
-----------
TRANSPORTATION,
COMMUNICATIONS, ELECTRIC,
GAS AND SANITARY SERVICES 9.20%
MOTOR FREIGHT TRANSPORTATION
AND WAREHOUSING 0.76%
8,900 CNF Inc. 225,882
-----------
WATER TRANSPORTATION 0.93%
11,900 Royal Caribbean Cruises Ltd. 275,604
-----------
COMMUNICATIONS 2.84%
7,400 Anixter International Inc. #<F6> 173,382
8,255 Cablevision Systems
New York Group #<F6> 171,374
9,300 CenturyTel, Inc. 324,105
18,000 Mediacom Communications
Corporation #<F6> 175,680
-----------
844,541
-----------
ELECTRIC, GAS AND SANITARY SERVICES 4.67%
6,200 Peoples Energy Corporation 265,918
19,100 PG&E Corporation #<F6> 403,965
6,600 PPL Corporation 283,800
22,600 Reliant Resources, Inc. #<F6> 138,538
10,200 Wisconsin Energy Corporation 295,800
-----------
1,388,021
-----------
Total Transportation, Communications,
Electric, Gas and Sanitary Services 2,734,048
-----------
WHOLESALE TRADE 3.89%
WHOLESALE TRADE-DURABLE GOODS 3.29%
14,600 Apogent Technologies Inc. #<F6> 292,000
23,000 IKON Office Solutions, Inc. 204,700
14,200 Omnicare, Inc. 479,818
-----------
976,518
-----------
WHOLESALE TRADE-
NON-DURABLE GOODS 0.60%
8,700 Safeway Inc. #<F6> 178,002
-----------
Total Wholesale Trade 1,154,520
-----------
RETAIL TRADE 8.08%
GENERAL MERCHANDISE STORES 1.21%
9,700 J.C. Penney Company, Inc. 163,445
5,325 The Neiman Marcus Group, Inc. #<F6> 194,895
-----------
358,340
-----------
EATING AND DRINKING PLACES 3.75%
11,200 AFC Enterprises, Inc. #<F6> 183,344
14,400 ARAMARK Corporation #<F6> 322,848
3,800 Outback Steakhouse, Inc. 148,200
15,500 Yum! Brands, Inc #<F6> 458,180
-----------
1,112,572
-----------
MISCELLANEOUS RETAIL 3.12%
7,200 Dollar Tree Stores, Inc. #<F6> 228,744
5,800 Jo-Ann Stores, Inc. #<F6> 146,740
15,600 Office Depot, Inc. #<F6> 226,356
26,900 Toys "R" Us, Inc. #<F6> 326,028
-----------
927,868
-----------
Total Retail Trade 2,398,780
-----------
FINANCE, INSURANCE
AND REAL ESTATE 23.70%
DEPOSITORY INSTITUTIONS 4.14%
9,500 Hibernia Corporation 172,520
11,600 Northern Trust Corporation 482,560
13,600 North Fork Bancorporation, Inc. 463,216
2,800 TCF Financial Corporation 111,552
-----------
1,229,848
-----------
SECURITY AND COMMODITY BROKERS,
DEALERS, EXCHANGES AND SERVICES 3.33%
8,100 Franklin Resources, Inc. 316,467
5,700 Investment Technology Group, Inc. #<F6> 106,020
20,400 Janus Capital Group Inc. 334,560
6,175 T. Rowe Price Group Inc. 233,230
-----------
990,277
-----------
INSURANCE CARRIERS 12.04%
18,000 Allmerica Financial Corporation #<F6> 323,820
4,300 Amabac Financial Group, Inc. 284,875
8,100 Everest Re Group, Ltd. 619,650
11,400 HCC Insurance Holdings, Inc. 337,098
10,050 Horace Mann Educators Corporation 162,107
1,335 Markel Corporation #<F6> 341,760
10,200 MBIA Inc. 497,250
9,800 Oxford Health Plans, Inc. #<F6> 411,894
8,700 The St. Paul Companies, Inc. 317,637
3,375 XL Capital Ltd. 280,125
-----------
3,576,216
-----------
INSURANCE AGENTS, BROKERS AND SERVICES 1.40%
13,500 Willis Group Holdings Limited 415,125
-----------
HOLDING AND OTHER INVESTMENT OFFICES 2.79%
13,500 iStar Financial Inc. 492,750
8,825 The Rouse Company 336,232
-----------
828,982
-----------
Total Finance, Insurance,
and Real Estate 7,040,448
-----------
SERVICES 22.38%
HOTELS, ROOMING HOUSES, CAMPS
AND OTHER LODGING PLACES 1.71%
16,200 Extended Stay America, Inc. #<F6> 218,538
8,500 MGM MIRAGE #<F6> 290,530
-----------
509,068
-----------
PERSONAL SERVICES 0.75%
5,150 H&R Block, Inc. 222,738
-----------
BUSINESS SERVICES 13.08%
5,800 ADVO, Inc. #<F6> 257,520
9,000 Amdocs Limited #<F6> 216,000
6,900 Brady Corporation 230,115
15,775 Cendant Corporation #<F6> 288,998
6,775 Certegy Inc. #<F6> 188,006
9,675 D&B Corporation #<F6> 397,642
12,550 Equifax Inc. 326,300
457 Grey Global Group Inc. 353,284
25,300 IMS Health Incorporated 455,147
24,410 The Interpublic Group
of Companies, Inc. 326,606
6,900 Manpower Inc. 255,921
15,300 Sotheby's Holdings, Inc. #<F6> 113,832
12,350 SunGard Data Systems Inc. #<F6> 319,988
7,000 Viad Corp. 156,730
-----------
3,886,089
-----------
MOTION PICTURES 0.61%
14,500 Metro-Goldwyn-Mayer Inc. #<F6> 180,090
-----------
AMUSEMENT AND
RECREATION SERVICES 1.23%
5,700 Alliance Gaming Corporation #<F6> 107,787
6,500 International Speedway Corporation 256,815
-----------
364,602
-----------
HEALTH SERVICES 1.91%
8,900 Caremark Rx, Inc. #<F6> 228,552
4,000 Edwards Lifesciences Corporation #<F6> 128,560
9,900 LifePoint Hospitals, Inc. #<F6> 208,989
-----------
566,101
-----------
EDUCATIONAL SERVICES 0.18%
2,250 DeVry, Inc. #<F6> 52,402
-----------
ENGINEERING, ACCOUNTING, RESEARCH,
MANAGEMENT AND RELATED SERVICES 2.91%
20,700 Accenture Ltd. #<F6> 374,463
27,300 BearingPoint, Inc. #<F6> 263,445
21,100 The ServiceMaster Company 225,770
-----------
863,678
-----------
Total Service 6,644,768
-----------
TOTAL COMMON STOCK
(COST $25,131,788) 28,301,249
-----------
SHORT TERM INVESTMENTS 6.63%
MONEY MARKET FUND 6.63%
1,968,735 Federated Prime Obligations Fund 1,968,735
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,968,735) 1,968,735
-----------
TOTAL INVESTMENTS 101.91%
(COST $27,100,523) 30,269,984
-----------
LIABILITIES, LESS OTHER
ASSETS (1.91)% (566,614)
-----------
NET ASSETS 100% $29,703,370
-----------
-----------
#<F6> Non-income producing security.
See notes to financial statements.
AssetMark International Equity Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
Assetmark Morgan Stanley Lipper
International Capital International International
Date Equity Fund EAFE Index Funds Index
---- ----------- --------------------- -----------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $8,630.00 $8,605.00 $8,504.00
12/31/2001 $9,460.00 $9,206.00 $9,222.00
3/31/2002 $9,331.00 $9,258.00 $9,448.00
6/30/2002 $8,960.00 $9,078.00 $9,269.00
9/30/2002 $7,240.00 $7,291.00 $7,451.00
12/31/2002 $7,588.00 $7,763.00 $7,946.00
3/31/2003 $6,966.00 $7,132.00 $7,247.00
6/30/2003 $8,250.00 $8,528.00 $8,676.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX - An unmanaged market-
capitalization-weighted index composed of companies representative of the market
structure of 20 Developed Market countries in Europe, Australia, Asia and the
Far East.
LIPPER INTERNATIONAL FUNDS INDEX - An unmanaged index which measures the
composite performance of the 30 largest "international" mutual funds, as
categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark International Equity Fund -7.92% -9.16%
Morgan Stanley Capital
International EAFE Index -6.06% -7.65%
Lipper International Funds Index -6.40% -6.86%
AssetMark International Equity Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
COMMON STOCK 95.42%*<F7>
AUSTRALIA 3.32%
37,800 Boral Limited $ 513,101
266,200 Coca-Cola Amatil Limited 2,038,799
-----------
2,551,900
-----------
BRAZIL 1.84%
13,600 Banco Itau Holding Financeira SA 461,040
48,500 Petroleo Brasileiro SA - Petrobras 958,360
-----------
1,419,400
-----------
BRITAIN 19.92%
42,636 Amvescap PLC 596,051
15,200 AstraZeneca PLC 619,704
30,000 BAE SYSTEMS PLC 282,174
17,100 BOC Group PLC 448,704
23,700 BP PLC 995,874
33,900 Barclays PLC 1,014,288
53,000 Boots Group PLC 1,134,322
21,000 Cadbury Schweppes PLC 507,780
67,500 Compass Group PLC 363,947
19,500 Diageo PLC 853,320
20,100 Galen Holdings PLC 703,500
13,100 HSBC Holdings PLC 774,341
25,700 HBOS PLC 998,085
41,700 Lloyds TSB Group PLC 1,209,717
136,600 Pearson PLC 1,311,360
16,300 Rio Tinto PLC 1,247,765
115,300 Vodafone Group PLC 2,265,645
-----------
15,326,577
-----------
CANADA 2.40%
8,300 Alcan Inc. 259,707
16,000 Canadian National
Railway Company 772,160
14,000 Inco Limited #<F8> 295,960
18,500 Manulife Financial Corporation 521,885
-----------
1,849,712
-----------
DENMARK 1.21%
47,600 Danske Bank A/S 926,972
-----------
FINLAND 3.13%
102,008 Nokia Oyj 1,675,991
50,200 UPM-Kymmene Oyj 730,410
-----------
2,406,401
-----------
FRANCE 13.86%
71,710 Alcatel SA 641,805
37,500 Axa 585,375
61,800 BNP Paribas SA 1,570,140
48,100 France Telecom SA 1,185,665
45,800 Groupe Danone 1,270,950
58,750 Pernod-Ricard SA 1,310,495
17,145 PSA Peugeot Citroen 832,806
34,400 Sanofi-Synthelabo SA 1,002,760
55,000 Societe Generale 697,268
20,594 Total SA 1,561,025
-----------
10,658,289
-----------
GERMANY 4.42%
13,000 Continental AG 272,890
61,900 Deutsche Telekom AG 940,880
5,900 Puma AG Rudolf Dassler Sport 580,630
26,900 SAP AG 786,018
16,700 Siemens AG 815,795
-----------
3,396,213
-----------
HONG KONG 2.06%
12,000 CNOOC Limited 356,400
67,000 Hang Seng Bank Limited 708,820
119,000 Swire Pacific Limited 520,363
-----------
1,585,583
-----------
INDIA 1.64%
25,000 Dr. Reddy's Laboratories Limited 582,750
12,700 Infosys Technologies Limited 681,355
-----------
1,264,105
-----------
IRELAND 2.20%
29,200 CRH PLC 460,659
27,500 Ryanair Holdings PLC #<F8> 1,235,300
-----------
1,695,959
-----------
ISRAEL 0.53%
7,200 Teva Pharmaceutical
Industries Ltd. 409,896
-----------
ITALY 1.62%
9,100 Eni SPA 691,964
40,000 Luxottica Group SPA 556,000
-----------
1,247,964
-----------
JAPAN 19.16%
39,268 Canon Inc. 1,792,584
25,900 Fuji Photo Film Co., Ltd. 746,179
38,800 Honda Motor Co., Ltd. 739,140
2,200 Kao Corporation 409,494
15,600 Konica Corporation 1,775,990
100,000 Matsushita Electric
Industrial Co., Ltd. 1,005,000
108,200 Mitsubishi Corporation 1,501,243
48,200 NTT DoCoMo, Inc. 1,059,436
89,600 Nintendo Co., Ltd. 804,966
45,600 Nippon Telegraph And
Telephone Corporation (NTT) 902,880
132,900 Nissan Motor Co., Ltd. 2,518,455
2,000 Nitto Denko Corporation 654,591
33,200 Seven-Eleven Japan Co., Ltd. 826,717
-----------
14,736,675
-----------
MEXICO 0.41%
17,000 America Movil SA de CV 318,750
-----------
NETHERLANDS 4.05%
76,700 Aegon NV 770,068
20,000 Akzo Nobel NV 533,000
63,200 ING Groep NV 1,107,896
15,039 Royal Dutch Petroleum Company 701,118
-----------
3,112,082
-----------
PERU 0.37%
9,400 Compania de Minas
Buenaventura SAU 282,846
-----------
SINGAPORE 1.25%
41,000 DBS Group Holdings Limited 959,216
-----------
SOUTH AFRICA 0.80%
66,000 ABSA Group Limited 617,641
-----------
SOUTH KOREA 0.66%
19,300 POSCO 505,467
-----------
SWEDEN 5.16%
50,000 AB SKF 1,459,500
37,400 Atlas Copco AB 946,104
21,000 Electrolux AB 834,540
21,600 Sandvik AB 565,300
8,100 TeliaSonera AB 167,176
-----------
3,972,620
-----------
SWITZERLAND 3.80%
32,100 Novartis AG 1,277,901
10,000 Roche Holding AG 784,399
15,500 Swiss Re 858,798
-----------
2,921,098
-----------
TAIWAN 0.77%
58,600 Taiwan Semiconductor
Manufacturing Company Ltd. 590,688
-----------
THAILAND 0.83%
348,000 Shin Corporation Public
Company Limited 635,726
-----------
TOTAL COMMON STOCK
(COST $67,646,154) 73,391,780
-----------
SHORT TERM INVESTMENTS 4.41%
MONEY MARKET FUND 4.41%
3,391,776 Federated Prime Obligations Fund 3,391,776
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $3,391,776) 3,391,776
-----------
TOTAL INVESTMENTS 99.83%
(COST $71,037,930) 76,783,556
-----------
OTHER ASSETS, LESS
LIABILITIES 0.17% 131,840
-----------
NET ASSETS 100% $76,915,396
-----------
-----------
*<F7> All common stocks listed are American Depository Receipts (ADRs).
#<F8> Non-income producing security.
See notes to financial statements.
AssetMark Real Estate Securities Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
AssetMark Lipper
Real Estate Wilshire Real Estate
Date Securities Fund REIT Index Funds Index
---- --------------- ---------- -----------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $9,960.00 $9,760.00 $9,644.00
12/31/2001 $10,250.00 $10,238.00 $10,134.00
3/31/2002 $10,927.00 $11,095.00 $10,975.00
6/30/2002 $11,460.00 $11,606.00 $11,466.00
9/30/2002 $10,600.00 $10,552.00 $10,446.00
12/31/2002 $10,696.00 $10,606.00 $10,503.00
3/31/2003 $10,888.00 $10,739.00 $10,625.00
6/30/2003 $12,018.00 $12,039.00 $12,020.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
WILSHIRE REIT INDEX - An unmanaged index considered representative of U.S.
publicly traded Real Estate Investment Trusts.
LIPPER REAL ESTATE FUNDS INDEX - An unmanaged index which measures the composite
performance of the 30 largest "real estate" mutual funds, as categorized by
Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Real Estate Securities Fund 4.87% 9.61%
Wilshire REIT Index 3.73% 9.72%
Lipper Real Estate Funds Index 4.83% 9.64%
AssetMark Real Estate Securities Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
REAL ESTATE INVESTMENT TRUSTS 97.56%
COMMON STOCK 89.32%
APARTMENTS 23.75%
14,280 Apartment Investment &
Management Company $ 494,088
31,815 Archstone-Smith Trust 763,560
16,880 Avalonbay Communities, Inc. 719,763
7,520 BRE Properties, Inc. 249,664
12,810 Camden Property Trust 447,710
50,940 Equity Residential 1,321,893
9,730 Essex Property Trust, Inc. 557,042
4,360 Gables Residential Trust 131,803
17,660 Home Properties of New York, Inc. 622,338
52,960 United Dominion Realty Trust, Inc. 911,971
-----------
6,219,832
-----------
DIVERSIFIED 9.01%
5,420 Colonial Properties Trust 190,730
16,920 Liberty Property Trust 585,432
33,450 Vornado Realty Trust 1,458,420
4,610 Washington Real Estate
Investment Trust 125,392
-----------
2,359,974
-----------
OFFICE PROPERTY 16.83%
6,760 Alexandria Real Estate Equities, Inc. 304,200
3,600 American Financial Realty Trust 53,676
17,390 Arden Realty, Inc. 451,271
22,180 Boston Properties, Inc. 971,484
5,260 Brandywine Realty Trust 129,501
16,300 CarrAmerica Realty Corporation 453,303
4,620 Cousins Properties, Inc. 128,898
13,630 Crescent Real Estate
Equities Company 226,394
15,150 Equity Office Properties Trust 409,201
5,400 Glenborough Realty
Trust Incorporated 103,410
2,340 Kilroy Realty Corporation 64,350
7,280 Mack-Cali Realty Corporation 264,846
7,000 Maguire Properties, Inc. #<F9> 134,750
8,700 Prentiss Properties Trust 260,913
3,180 Reckson Associates
Realty Corporation 66,335
11,040 SL Green Realty Corp. 385,186
-----------
4,407,718
-----------
REGIONAL MALLS 18.09%
5,740 CBL & Associates Properties, Inc. 246,820
13,240 General Growth Properties, Inc. 826,706
29,140 The Macerich Company 1,023,688
18,590 The Rouse Company 708,279
49,510 Simon Property Group, Inc. 1,932,375
-----------
4,737,868
-----------
SHOPPING CENTERS 11.05%
7,850 Developers Diversified
Realty Corporation 223,254
15,490 Federal Realty Investment Trust 495,680
6,870 Kimco Realty Corporation 260,373
9,130 New Plan Excel Realty Trust 194,926
22,710 Pan Pacific Retail Properties, Inc. 893,638
15,020 Regency Centers Corporation 525,400
7,160 Weingarten Realty Investors 300,004
-----------
2,893,275
-----------
WAREHOUSE/INDUSTRIAL 10.59%
29,300 AMB Property Corporation 825,381
4,210 CenterPoint Properties Trust 257,863
11,520 Duke Realty Corporation 317,376
46,570 ProLogis 1,271,361
2,850 PS Business Parks, Inc. 100,605
-----------
2,772,586
-----------
TOTAL COMMON STOCK
(COST $21,186,257) 23,391,253
-----------
PREFERRED STOCK 8.24%
DIVERSIFIED 1.27%
12,900 Lexington Corporate Properties
Trust, 8.05% 332,240
-----------
OFFICE PROPERTY 4.13%
39,200 Equity Office Properties Trust, 7.75% 1,082,116
-----------
REGIONAL MALLS 0.75%
7,100 The Mills Corp., 9.00% 195,250
-----------
SHOPPING CENTERS 2.09%
11,500 Developers Diversified Realty, 8.00% 300,725
9,300 New Plan Excel Realty Trust, 7.625% 246,915
-----------
547,640
-----------
TOTAL PREFERRED STOCK
(COST $2,021,305) 2,157,246
-----------
SHORT TERM INVESTMENTS 3.83%
MONEY MARKET FUND 3.83%
1,004,566 Federated Prime Obligations Fund 1,004,566
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,004,566) 1,004,566
-----------
TOTAL INVESTMENTS 101.39%
(COST $24,212,128) 26,553,065
-----------
LIABILITIES, LESS OTHER
ASSETS (1.39)% (364,457)
-----------
NET ASSETS 100% $26,188,608
-----------
-----------
#<F9> Non-income producing security.
See notes to financial statements.
AssetMark Tax-Exempt Fixed Income Fund
PERFORMANCE DATA
AssetMark Lehman Lipper General
Tax-Exempt Fixed Brothers Municipal Municipal Debt
Date Income Fund Bond Index Funds Index
---- ----------- ---------- -----------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $10,260.00 $10,281.00 $10,256.00
12/31/2001 $10,135.00 $10,218.00 $10,148.00
3/31/2002 $10,205.00 $10,314.00 $10,234.00
6/30/2002 $10,647.00 $10,692.00 $10,585.00
9/30/2002 $11,132.00 $11,200.00 $11,056.00
12/31/2002 $11,100.00 $11,200.00 $11,023.00
3/31/2003 $11,199.00 $11,334.00 $11,103.00
6/30/2003 $11,475.00 $11,627.00 $11,410.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
LEHMAN BROTHERS MUNICIPAL BOND INDEX - An unmanaged index which measures the
performance of investment-grade, tax-exempt and fixed-rate bonds with long-term
maturities (greater than two years) selected from issues larger than $50
million.
LIPPER GENERAL MUNICIPAL DEBT FUNDS INDEX - An unmanaged index which measures
the composite performance of the 30 largest "general municipal debt" mutual
funds, as categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Tax-Exempt Fixed Income Fund 7.78% 7.11%
Lehman Brothers Municipal Bond Index 8.74% 7.83%
Lipper General Municipal Debt Funds Index 7.80% 6.82%
AssetMark Tax-Exempt Fixed Income Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
PRINCIPAL MARKET
AMOUNT VALUE
- --------- ------
MUNICIPAL BONDS 92.79%
ALABAMA 1.38%
$125,000 Alabama State Public School
& College Authority,
5.00%, 02-01-2012 $ 140,004
195,000 Birmingham, Alabama,
5.00%, 04-01-2008 218,997
-----------
359,001
-----------
ARIZONA 4.05%
135,000 Maricopa County Arizona School
District No. 3 Tempe Elementary,
5.00%, 07-01-2012 154,202
500,000 Maricopa County Arizona Unified
School District No. 48 Scottsdale,
4.75%, 07-01-2010 561,205
300,000 Navajo County Arizona Unified
School District No. 32 Blue Ridge,
5.00%, 07-01-2014 342,543
-----------
1,057,950
-----------
CALIFORNIA 7.12%
750,000 California State,
5.25%, 02-01-2014 827,760
100,000 Fallbrook California High School
District San Diego County,
5.375%, 09-01-2014 117,297
350,000 Los Angeles County California
Metropolitan Transportation
Authority Sales Tax Revenue,
5.00%, 07-01-2014 395,217
500,000 Los Angeles California School
District, 4.00%, 07-01-2014 518,365
-----------
1,858,639
-----------
CONNECTICUT 1.87%
425,000 Connecticut State,
5.25%, 06-15-2009 487,972
-----------
DISTRICT OF COLUMBIA 1.32%
100,000 District of Columbia,
5.50%, 06-01-2007 112,740
200,000 District of Columbia,
5.50%, 06-01-2009 231,110
-----------
343,850
-----------
FLORIDA 1.29%
100,000 Dade County Florida Water & Sewer
Systems, 6.25%, 10-01-2007 117,253
100,000 Jacksonville Florida Excise Taxes,
5.65%, 10-01-2005 109,496
100,000 Mary Esther Florida Water &
Sewer, 4.95%, 01-01-2007 110,300
-----------
337,049
-----------
GEORGIA 2.20%
500,000 Atlanta Georgia Water & Wastewater,
5.00%, 11-01-2038 574,645
-----------
HAWAII 0.45%
100,000 Honolulu Hawaii City & County,
6.00%, 01-01-2009 118,428
-----------
IOWA 1.94%
480,000 Polk County Iowa,
4.00%, 06-01-2012 506,640
-----------
ILLINOIS 10.45%
305,000 Chicago Illinois,
5.50%, 01-01-2015 359,470
750,000 Chicago Illinois Neighborhoods,
5.00%, 01-01-2010 844,042
500,000 Chicago Illinois Wastewater
Transmission, 5.50%, 01-01-2010 577,410
100,000 Chicago Illinois Wastewater
Transmission, 5.375%, 01-01-2013 116,264
100,000 Chicago Illinois Metropolitan Water
Reclamation District Greater
Chicago, 6.05%, 12-01-2009 120,250
100,000 Chicago Illinois Metropolitan Water
Reclamation District Greater
Chicago, 5.50%, 12-01-2012 117,893
100,000 Du Page & Cook Counties Illinois,
4.375%, 01-01-2009 109,140
100,000 Illinois State, 5.25%, 08-01-2012 114,335
100,000 Illinois State Sales Tax,
5.375%, 06-15-2007 112,675
220,000 Illinois State Sales Tax,
5.50%, 06-15-2009 254,826
-----------
2,726,305
-----------
INDIANA 4.34%
200,000 Purdue University Indiana,
4.25%, 07-01-2008 218,104
500,000 Purdue University Indiana,
5.25%, 07-01-2008 568,715
300,000 Sunman Dearborn Indiana
Intermediate School Building
Corp, 5.375%, 07-15-2012 346,689
-----------
1,133,508
-----------
MASSACHUSETTS 0.99%
95,000 Massachusetts Bay Transportation
Authority, 5.50%, 03-01-2012 110,941
120,000 Massachusetts State Water Resources
Authority, 6.25%, 12-01-2011 148,094
-----------
259,035
-----------
MICHIGAN 0.67%
150,000 Dundee Michigan Community School
District, 5.375%, 05-01-2010 173,444
-----------
MINNESOTA 2.99%
400,000 Osseo Minnesota Independent School
District 279, 5.00%, 02-01-2013 451,388
295,000 Prior Lake Minnesota Independent
School District No 719,
4.75%, 02-01-2010 328,583
-----------
779,971
-----------
MISSOURI 1.30%
300,000 Kansas City Missouri Municipal
Assistance Corp, 5.00%, 03-01-2012 338,337
-----------
MARYLAND 0.34%
75,000 Maryland State, 5.50%, 03-01-2013 89,372
-----------
NEBRASKA 0.44%
100,000 Omaha Nebraska Special Obligations,
5.375%, 02-01-2013 115,819
-----------
NEVADA 0.59%
135,000 Clark County Nevada School
District, 6.00%, 06-15-2007 153,842
-----------
NEW JERSEY 4.69%
425,000 Gateway New Jersey Housing
Development Corporation,
10.50%, 08-01-2025 425,578
700,000 New Jersey State Turnpike Authority,
6.75%, 01-01-2009 799,064
-----------
1,224,642
-----------
NEW YORK 9.55%
560,000 Long Island Power Authority
New York Electric System,
4.00%, 12-01-2010 575,546
300,000 Metropolitan Transportation
Authority New York Service
Contract, 5.25%, 07-01-2007 334,683
100,000 Metropolitan Transportation
Authority New York Dedicated
Tax Fund, 5.25%, 04-01-2009 112,865
100,000 New York, New York,
5.25%, 08-01-2011 113,954
500,000 New York City Transit Authority,
Metropolitan Transportation
Authority Triborough,
5.625%, 01-01-2012 573,395
500,000 New York State Dormitory
Authority, 5.25%, 11-15-2023 557,305
200,000 New York State Tollway Authority,
5.25%, 01-01-2010 224,396
-----------
2,492,144
-----------
NORTH CAROLINA 2.61%
500,000 North Carolina Municipal Power
Agency No 1 Catawba Electric,
5.25%, 01-01-2009 569,355
100,000 North Carolina State,
4.60%, 04-01-2008 111,183
-----------
680,538
-----------
OHIO 0.43%
100,000 Bowling Green State University
of Ohio, 5.00%, 06-01-2008 113,114
-----------
OREGON 0.68%
175,000 Oregon State Housing &
Community Services Department,
5.40%, 07-01-2005 178,048
-----------
PENNSYLVANIA 3.53%
100,000 Pennsylvania Housing Finance
Agency, 4.95%, 10-01-2004 102,654
125,000 Pennsylvania State,
5.00%, 02-01-2009 141,381
500,000 Pennsylvania State,
5.00%, 01-01-2014 564,450
100,000 Philadelphia Pennsylvania Gas
Works, 5.00%, 08-01-2010 113,279
-----------
921,764
-----------
TENNESSEE 2.43%
250,000 Knoxville Tennessee Water,
5.00%, 03-01-2009 282,370
300,000 Memphis Tennessee,
5.50%, 11-01-2010 351,579
-----------
633,949
-----------
TEXAS 14.76%
100,000 Austin Texas, 5.25%, 09-01-2007 112,784
515,000 Denton Texas Utility System
Revenue, 5.25%, 12-01-2013 589,830
100,000 Flower Mound Texas Waterworks
& Sewer, 5.375%, 09-01-2006 111,622
145,000 Frisco Texas, 5.875%, 02-15-2010 170,510
165,000 Frisco Texas, 5.00%, 02-15-2012 184,812
750,000 Harris County Texas,
5.25%, 10-01-2013 852,225
150,000 Mansfield Texas, 5.50%, 02-15-2008 170,764
370,000 Marble Falls Texas Independent
School District, 5.00%, 08-15-2015 418,933
80,000 San Antonio Texas Electric &
Gas Pre-Refunded - 2002,
5.50%, 02-01-2013 90,842
70,000 San Antonio Texas Electric &
Gas Unrefunded Balance - 2002,
5.50%, 02-01-2013 78,630
200,000 Socorro Texas Independent School
District, 5.375%, 08-15-2013 228,720
125,000 Spring Texas Independent School
District, 5.875%, 08-15-2010 148,754
400,000 Texas State Public Finance
Authority, 5.50%, 10-01-2009 465,944
100,000 Texas State University Systems,
5.25%, 03-15-2010 114,016
100,000 University of Texas,
5.25%, 08-15-2008 113,798
-----------
3,852,184
-----------
UTAH 0.44%
100,000 Jordan Utah School District,
5.125%, 06-15-2008 113,495
-----------
VIRGINIA 2.10%
100,000 Norfolk Virginia, 5.00%, 01-01-2009 113,034
400,000 Virginia State Housing Development
Authority, 4.85%, 07-01-2009 435,948
-----------
548,982
-----------
WASHINGTON 5.18%
100,000 King County Washington,
5.50%, 12-01-2010 116,861
100,000 Seattle Washington,
5.00%, 08-01-2012 112,018
200,000 Seattle Washington,
5.00%, 07-01-2013 223,960
100,000 Snohomish County Washington,
5.00%, 12-01-2006 110,820
700,000 Washington State Motor Vehicle
Fuel Tax, 5.00%, 01-01-2010 787,332
-----------
1,350,991
-----------
WEST VIRGINIA 1.24%
300,000 West Virginia Economic
Development, 4.00%, 06-01-2007 323,400
-----------
WISCONSIN 1.42%
75,000 Douglas County Wisconsin,
5.50%, 02-01-2014 86,209
150,000 Wisconsin State, 5.00%, 05-01-2008 168,183
100,000 Wisconsin State, 5.50%, 05-01-2009 115,468
-----------
369,860
-----------
TOTAL MUNICIPAL BONDS
(COST $23,028,252) 24,216,917
-----------
SHORT TERM INVESTMENTS 4.60%
IOWA 0.77%
100,000 Iowa Higher Education Loan
Authority, 1.00%, 11-01-2032 100,000
100,000 Iowa Finance Authority,
1.05%, 06-01-2027 100,000
-----------
200,000
-----------
NEBRASKA 0.77%
200,000 Nebraska Educational Finance
Authority, 1.00%, 08-01-2031 200,000
-----------
NEW YORK 1.92%
500,000 New York, New York,
1.00%, 08-01-2021 500,000
-----------
MICHIGAN 0.38%
100,000 Northern Michigan University,
1.05%, 06-01-2031 100,000
-----------
SOUTH DAKOTA 0.38%
100,000 South Dakota State Health &
Educational Facilities Authority,
1.00%, 09-01-2027 100,000
-----------
WISCONSIN 0.38%
100,000 Wisconsin State Health &
Educational Facilities Authority,
1.05%, 12-01-2029 100,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,200,000) 1,200,000
-----------
NUMBER
OF SHARES
- ---------
MONEY MARKET FUND 0.07%
19,344 First American Tax Free
Obligations Fund 19,344
-----------
TOTAL MONEY MARKET FUNDS
(COST $19,344) 19,344
-----------
TOTAL INVESTMENTS 97.44%
(COST $24,247,596) 25,436,261
-----------
OTHER ASSETS, LESS
LIABILITIES 2.56% 663,839
-----------
NET ASSETS 100% $26,100,100
-----------
-----------
See notes to financial statements.
AssetMark Core Plus Fixed Income Fund
PERFORMANCE DATA
TOTAL RETURN BASED ON A $10,000 INVESTMENT
AssetMark Core Lehman Lipper
Plus Fixed Brothers Aggregate General Bond
Date Income Fund Bond Index Funds Index
---- ----------- ---------- -----------
6/29/2001 $10,000.00 $10,000.00 $10,000.00
9/30/2001 $10,347.00 $10,461.00 $10,243.00
12/31/2001 $10,342.00 $10,466.00 $10,259.00
3/31/2002 $10,383.00 $10,476.00 $10,254.00
6/30/2002 $10,603.00 $10,863.00 $10,470.00
9/30/2002 $10,887.00 $11,360.00 $10,698.00
12/31/2002 $11,140.00 $11,539.00 $10,885.00
3/31/2003 $11,354.00 $11,699.00 $11,020.00
6/30/2003 $11,713.00 $11,991.00 $11,404.00
This chart assumes an initial gross investment of $10,000 made on 6/29/01
(commencement of operations). Returns shown include the reinvestment of all
dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
In the absence of fee waivers and reimbursements, total return would be reduced.
Past performance is not predictive of future performance. Investment return and
principal value will fluctuate, so that your shares, when redeemed, may be worth
more or less than the original cost.
LEHMAN BROTHERS AGGREGATE BOND INDEX - An unmanaged index which measures the
performance of securities from the Lehman Brothers Government/Corporate Bond
Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index.
The Lehman Brothers Aggregate Bond Index is a broad representation of the
investment-grade fixed-income market in the U.S. and includes U.S. Government
and corporate debt securities, mortgage- and asset-backed securities and
international U.S. dollar-denominated bonds. All securities contained in the
Lehman Brothers Aggregate Bond Index have a minimum term to maturity of one
year.
LIPPER GENERAL BOND FUNDS INDEX - An unmanaged index which measures the
composite performance of the 10 largest "general bond" mutual funds, as
categorized by Lipper Inc.
AVERAGE ANNUAL TOTAL RETURN (FOR THE PERIODS ENDED JUNE 30, 2003)
- -----------------------------------------------------------------
ONE YEAR SINCE INCEPTION (6/29/01)
-------- -------------------------
AssetMark Core Plus Fixed Income Fund 10.47% 8.21%
Lehman Brothers Aggregate Bond Index 10.40% 9.51%
Lipper General Bond Funds Index 8.92% 6.79%
AssetMark Core Plus Fixed Income Fund
SCHEDULE OF INVESTMENTS
June 30, 2003
NUMBER OF MARKET
SHARES VALUE
- --------- ------
INVESTMENT COMPANIES 99.19%
1,593,553 BlackRock Core Bond
Total Return Portfolio $ 16,190,499
202,751 FFTW International Portfolio 1,786,237
1,417,913 PIMCO Total Return Fund II 15,001,517
170,192 Salomon Brothers Institutional
Emerging Markets Debt Fund 1,288,356
60,185 Salomon Brothers Institutional
High Yield Bond Fund 415,275
602,662 T. Rowe Price High Yield Fund 4,098,104
575,816 T. Rowe Price High Yield Fund -
Advisor Class 3,909,794
4,452,823 Vanguard Total Bond Market
Index Fund 46,843,699
1,424,085 Western Asset Core Portfolio 16,775,724
304,097 Western Asset High Yield Portfolio 3,077,460
------------
Total Investment Companies 109,386,665
------------
TOTAL INVESTMENTS 99.19%
(COST $105,321,016) 109,386,665
------------
OTHER ASSETS, LESS
LIABILITIES 0.81% 893,367
------------
NET ASSETS 100% $110,280,032
------------
------------
See notes to financial statements.
AssetMark Funds
STATEMENTS OF ASSETS & LIABILITIES
June 30, 2003
LARGE CAP LARGE CAP SMALL/MID CAP SMALL/MID CAP
GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND
----------- ---------- ----------- ----------
ASSETS:
Investments, at value (cost $110,718,033, $113,351,550,
$28,471,448 and $27,100,523, respectively) $117,020,384 $119,046,762 $31,883,946 $30,269,984
Cash 180,440 -- -- 1,620
Receivable for investment securities sold -- -- 95,147 137,880
Income receivable 49,376 169,197 3,798 24,868
Receivable for fund shares sold 1,400,121 1,305,528 343,815 311,955
Other assets 13,656 13,532 9,566 8,756
------------ ------------ ----------- -----------
Total Assets 118,663,977 120,535,019 32,336,272 30,755,063
------------ ------------ ----------- -----------
LIABILITIES:
Payable to Investment Advisor 80,127 81,179 21,956 13,254
Payable for investment securities purchased 54,567 2,443,342 742,628 986,144
Payable for fund shares redeemed 6,683 7,049 2,059 2,440
Other accrued expenses 159,274 156,202 48,783 49,855
------------ ------------ ----------- -----------
Total Liabilities 300,651 2,687,772 815,426 1,051,693
------------ ------------ ----------- -----------
NET ASSETS $118,363,326 $117,847,247 $31,520,846 $29,703,370
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
NET ASSETS CONSIST OF:
Capital stock 120,397,404 117,187,138 31,746,827 28,062,861
Unrealized appreciation on investments 6,302,351 5,695,212 3,412,498 3,169,461
Accumulated undistributed net investment income -- 212,885 -- --
Accumulated undistributed net realized loss (8,336,429) (5,247,988) (3,638,479) (1,528,952)
------------ ------------ ----------- -----------
Total Net Assets $118,363,326 $117,847,247 $31,520,846 $29,703,370
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
Shares outstanding (unlimited shares
of no par value authorized) 15,598,820 13,418,800 4,125,548 2,931,155
Net asset value, offering and
redemption price per share $ 7.59 $ 8.78 $ 7.64 $ 10.13
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
See notes to financial statements.
INTERNATIONAL REAL ESTATE TAX-EXEMPT CORE PLUS
EQUITY SECURITIES FIXED INCOME FIXED INCOME
FUND FUND FUND FUND
------------- ----------- ------------ ------------
ASSETS:
Investments, at value (cost $71,037,930, $24,212,128,
$24,247,596 and $105,321,016, respectively) $76,783,556 $26,553,065 $25,436,261 $109,386,665
Cash 20,561 -- -- --
Income receivable 208,120 122,032 370,878 373,919
Receivable for fund shares sold 663,895 287,020 395,178 1,062,408
Other assets 12,840 9,619 8,188 14,892
----------- ----------- ----------- ------------
Total Assets 77,688,972 26,971,736 26,210,505 110,837,884
----------- ----------- ----------- ------------
LIABILITIES:
Payable to Investment Advisor 74,106 14,981 12,876 67,763
Payable to Custodian -- -- -- 2,070
Payable for investment securities purchased 587,343 723,952 -- 327,427
Payable for fund shares redeemed 8,908 2,376 55,836 10,488
Other accrued expenses 103,219 41,819 41,693 150,104
----------- ----------- ----------- ------------
Total Liabilities 773,576 783,128 110,405 557,852
----------- ----------- ----------- ------------
NET ASSETS $76,915,396 $26,188,608 $26,100,100 $110,280,032
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
NET ASSETS CONSIST OF:
Capital stock 84,773,064 23,804,480 24,817,310 106,690,282
Unrealized appreciation on investments 5,745,626 2,340,937 1,188,665 4,065,649
Accumulated undistributed net investment income 545,775 409,879 7,245 21,833
Accumulated undistributed net realized gain/(loss) (14,149,069) (366,688) 86,880 (497,732)
----------- ----------- ----------- ------------
Total Net Assets $76,915,396 $26,188,608 $26,100,100 $110,280,032
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
Shares outstanding (unlimited shares
of no par value authorized) 9,355,324 2,323,699 2,361,799 10,294,962
Net asset value, offering and
redemption price per share $ 8.22 $ 11.27 $ 11.05 $ 10.71
----------- ----------- ----------- ------------
----------- ----------- ----------- ------------
See notes to financial statements.
AssetMark Funds
STATEMENTS OF OPERATIONS
For the Year Ended June 30, 2003
LARGE CAP LARGE CAP SMALL/MID CAP SMALL/MID CAP
GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND
----------- ---------- ----------- ----------
INVESTMENT INCOME:
Dividend income (net of foreign withholding tax of
$0, $4,803, $0 and $49, respectively) $ 493,552 $ 1,413,910 $ 25,184 $ 196,985
Interest income 41,137 62,150 16,940 16,950
----------- ----------- ----------- -----------
Total investment income 534,689 1,476,060 42,124 213,935
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees 644,347 643,902 170,548 173,650
Distribution (12b-1) fees 169,565 169,448 44,881 43,412
Federal and state registration fees 27,758 27,224 18,258 17,733
Custody fees 27,935 18,965 14,887 34,354
Audit fees 33,628 33,504 8,794 8,786
Shareholder servicing fees 33,913 33,890 8,976 8,683
Fund accounting fees 32,523 33,944 33,117 33,759
Administration fees 39,264 39,126 28,600 28,617
Transfer agent fees and expenses 22,060 22,281 14,249 14,172
Reports to shareholders 7,771 7,115 2,130 1,984
Directors' fees and expenses 17,065 15,374 4,528 4,321
Legal fees 42,767 42,803 11,009 10,442
Insurance fees 5,938 5,694 1,524 1,524
----------- ----------- ----------- -----------
Total expenses before Advisor reimbursement 1,104,534 1,093,270 361,501 381,437
Less fees and expenses reimbursed
and waived by the Advisor (93,927) (83,388) (76,062) (105,333)
----------- ----------- ----------- -----------
Net expenses 1,010,607 1,009,882 285,439 276,104
----------- ----------- ----------- -----------
Net investment income/(loss) (475,918) 466,178 (243,315) (62,169)
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized loss on investments (5,959,169) (4,632,059) (2,286,404) (1,195,149)
Net change in unrealized appreciation
on investments 14,155,611 8,934,293 5,300,542 2,910,061
----------- ----------- ----------- -----------
Net realized and unrealized gains 8,196,442 4,302,234 3,014,138 1,714,912
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 7,720,524 $ 4,768,412 $ 2,770,823 $ 1,652,743
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
See notes to financial statements.
INTERNATIONAL REAL ESTATE TAX-EXEMPT CORE PLUS
EQUITY SECURITIES FIXED INCOME FIXED INCOME
FUND FUND FUND FUND
------------- ----------- ------------ ------------
INVESTMENT INCOME:
Dividend income (net of withholding tax of
$214,583, $0, $0 and $0, respectively) $ 1,457,523 $1,118,214 $ -- $4,597,328
Interest income 51,890 8,555 679,043 5,674
----------- ---------- ---------- ----------
Total investment income 1,509,413 1,126,769 679,043 4,603,002
----------- ---------- ---------- ----------
EXPENSES:
Investment advisory fees 556,171 161,439 155,909 566,381
Distribution (12b-1) fees 146,361 42,484 48,721 188,793
Federal and state registration fees 24,211 17,473 18,037 27,574
Custody fees 20,936 13,679 8,711 30,623
Audit fees 18,196 7,951 9,174 38,504
Shareholder servicing fees 29,272 8,497 9,744 37,759
Fund accounting fees 36,948 31,503 44,598 39,868
Administration fees 34,411 28,625 28,610 44,214
Transfer agent fees and expenses 20,948 14,084 14,440 22,970
Reports to shareholders 2,810 2,913 1,847 6,571
Directors' fees and expenses 12,472 4,050 4,098 17,209
Legal fees 30,517 9,703 9,488 38,178
Insurance fees 6,304 1,487 1,855 6,237
----------- ---------- ---------- ----------
Total expenses before Advisor reimbursement 939,557 343,888 355,232 1,064,881
Less fees and expenses reimbursed
and waived by the Advisor (8,702) (90,683) (103,830) (90,706)
----------- ---------- ---------- ----------
Net expenses 930,855 253,205 251,402 974,175
----------- ---------- ---------- ----------
Net investment income 578,558 873,564 427,641 3,628,827
----------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on investments (10,442,783) (390,870) 86,881 (310,078)
Net change in unrealized appreciation
on investments 6,033,009 1,091,440 898,953 4,279,623
----------- ---------- ---------- ----------
Net realized and unrealized gains/(losses) (4,409,774) 700,570 985,834 3,969,545
----------- ---------- ---------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(3,831,216) $ 1,574,134 $1,413,475 $7,598,372
----------- ---------- ---------- ----------
----------- ---------- ---------- ----------
See notes to financial statements.
AssetMark Funds
STATEMENTS OF CHANGES IN NET ASSETS
LARGE CAP GROWTH FUND LARGE CAP VALUE FUND
------------------------ -----------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
OPERATIONS:
Net investment income/(loss) $ (475,918) $ (292,983) $ 466,178 $ 183,207
Net realized loss on investment transactions (5,959,169) (2,377,260) (4,632,059) (533,400)
Change in unrealized appreciation/(depreciation)
on investments 14,155,611 (7,853,260) 8,934,293 (3,239,081)
------------ ----------- ------------ -----------
Net increase/(decrease) in net assets
resulting from operations 7,720,524 (10,523,503) 4,768,412 (3,589,274)
------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 87,403,436 68,589,092 85,812,272 65,218,838
Shares issued to holders in reinvestment of dividends -- -- 266,539 68,345
Shares redeemed (26,425,348) (8,400,885) (25,881,069) (8,297,797)
------------ ----------- ------------ -----------
Net increase 60,978,088 60,188,207 60,197,742 56,989,386
------------ ----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS:
Net investment income -- -- (340,527) (82,795)
From net realized gains -- -- (95,707) --
------------ ----------- ------------ -----------
Total dividends and distributions -- -- (436,234) (82,795)
------------ ----------- ------------ -----------
INCREASE IN NET ASSETS 68,698,612 49,664,704 64,529,920 53,317,317
NET ASSETS:
Beginning of year 49,664,714 10 53,317,327 10
------------ ----------- ------------ -----------
End of year (including undistributed
net investment income of ($0, $0,
$212,885 and $97,122, respectively) $118,363,326 $49,664,714 $117,847,247 $53,317,327
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
CHANGES IN SHARES OUTSTANDING
Shares sold 12,829,109 7,827,187 10,993,720 6,635,312
Shares issued to holders in reinvestment of dividends -- -- 34,571 6,883
Shares redeemed (4,049,236) (1,008,241) (3,402,574) (849,113)
------------ ----------- ------------ -----------
Net increase 8,779,873 6,818,946 7,625,717 5,793,082
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
See notes to financial statements.
SMALL/MID CAP GROWTH FUND SMALL/MID CAP VALUE FUND
------------------------- ------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
OPERATIONS:
Net investment loss $ (243,315) $ (116,064) $ (62,169) $ (29,630)
Net realized loss on investment transactions (2,286,404) (1,352,075) (1,195,149) (334,114)
Change in unrealized appreciation/(depreciation)
on investments 5,300,542 (1,888,044) 2,910,061 259,400
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations 2,770,823 (3,356,183) 1,652,743 (104,344)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 23,612,052 20,818,661 24,155,354 19,564,741
Shares issued to holders in reinvestment of dividends -- -- -- --
Shares redeemed (7,779,200) (4,545,317) (9,415,911) (6,149,223)
----------- ----------- ----------- -----------
Net increase 15,832,852 16,273,344 14,739,443 13,415,518
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS:
Net investment income -- -- -- --
From net realized gains -- -- -- --
----------- ----------- ----------- -----------
Total dividends and distributions -- -- -- --
----------- ----------- ----------- -----------
INCREASE IN NET ASSETS 18,603,675 12,917,161 16,392,186 13,311,174
NET ASSETS:
Beginning of year 12,917,171 10 13,311,184 10
----------- ----------- ----------- -----------
End of year (including undistributed
net investment income of $0, $0,
$0 and $0, respectively) $31,520,846 $12,917,171 $29,703,370 $13,311,184
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
CHANGES IN SHARES OUTSTANDING
Shares sold 3,563,425 2,346,846 2,697,263 1,935,647
Shares issued to holders in reinvestment of dividends -- -- -- --
Shares redeemed (1,231,939) (552,785) (1,077,324) (624,432)
----------- ----------- ----------- -----------
Net increase 2,331,486 1,794,061 1,619,939 1,311,215
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
See notes to financial statements.
INTERNATIONAL EQUITY FUND REAL ESTATE SECURITIES FUND
------------------------- ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
OPERATIONS:
Net investment income $ 578,558 $ 188,595 $ 873,564 $ 458,511
Net realized loss on investment transactions (10,442,783) (3,706,286) (390,870) (99,478)
Change in unrealized appreciation/(depreciation)
on investments 6,033,009 (287,383) 1,091,440 1,249,497
------------- ------------ ----------- -----------
Net increase/(decrease) in net assets
resulting from operations (3,831,216) (3,805,074) 1,574,134 1,608,530
------------- ------------ ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 162,199,383 87,696,946 19,161,329 19,089,012
Shares issued to holders in reinvestment of dividends 130,931 -- 370,198 156,755
Shares redeemed (138,663,722) (26,590,484) (8,494,953) (6,477,871)
------------- ------------ ----------- -----------
Net increase 23,666,592 61,106,462 11,036,574 12,767,896
------------- ------------ ----------- -----------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS:
Net investment income (221,378) -- (493,081) (189,715)
From net realized gains -- -- (115,740) --
------------- ------------ ----------- -----------
Total dividends and distributions (221,378) -- (608,821) (189,715)
------------- ------------ ----------- -----------
INCREASE IN NET ASSETS 19,613,998 57,301,388 12,001,887 14,186,711
NET ASSETS:
Beginning of year 57,301,398 10 14,186,721 10
------------- ------------ ----------- -----------
End of year (including undistributed net
investment income of $545,775, $188,595,
$409,879 and $154,887, respectively) $ 76,915,396 $ 57,301,398 $26,188,608 $14,186,721
------------- ------------ ----------- -----------
------------- ------------ ----------- -----------
CHANGES IN SHARES OUTSTANDING
Shares sold 21,438,768 9,339,571 1,851,300 1,879,402
Shares issued to holders in reinvestment of dividends 17,342 -- 37,020 15,866
Shares redeemed (18,495,861) 2,944,497 (833,112) (626,778)
------------- ------------ ----------- -----------
Net increase 2,960,249 12,284,068 1,055,208 1,268,490
------------- ------------ ----------- -----------
------------- ------------ ----------- -----------
See notes to financial statements.
TAX-EXEMPT FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
----------------------- ------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
OPERATIONS:
Net investment income $ 427,641 $ 178,276 $ 3,628,827 $ 1,548,681
Net realized gain/(loss) on investment transactions 86,881 1,883 (310,078) (147,815)
Change in unrealized appreciation/(depreciation)
on investments 898,953 289,712 4,279,623 (213,974)
----------- ----------- ------------ -----------
Net increase in net assets
resulting from operations 1,413,475 469,871 7,598,372 1,186,892
----------- ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Shares sold 25,716,868 16,976,396 118,369,226 61,846,685
Shares issued to holders in reinvestment of dividends 198,541 97,753 2,116,165 1,227,091
Shares redeemed (14,891,002) (3,381,246) (66,998,079) (9,921,472)
----------- ----------- ------------ -----------
Net increase 11,024,407 13,692,903 53,487,312 53,152,304
----------- ----------- ------------ -----------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS:
Net investment income (424,443) (174,229) (3,611,163) (1,521,932)
From net realized gains (1,884) -- (11,763) --
----------- ----------- ------------ -----------
Total dividends and distributions (426,327) (174,229) (3,622,926) (1,521,932)
----------- ----------- ------------ -----------
INCREASE IN NET ASSETS 12,011,555 13,988,545 57,462,758 52,817,264
NET ASSETS:
Beginning of year 14,088,545 100,000 52,817,274 10
----------- ----------- ------------ -----------
End of year (including undistributed net
investment income of $7,245, $4,047,
$21,833 and $26,749, respectively) $26,100,100 $14,088,545 $110,280,032 $52,817,274
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
CHANGES IN SHARES OUTSTANDING
Shares sold 2,374,118 1,657,374 11,317,528 6,054,884
Shares issued to holders in reinvestment of dividends 18,249 9,546 202,609 121,189
Shares redeemed (1,376,854) (330,634) (6,431,139) (970,110)
----------- ----------- ------------ -----------
Net increase 1,015,513 1,336,286 5,088,998 5,205,963
----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
See notes to financial statements.
AssetMark Funds
FINANCIAL HIGHLIGHTS
LARGE CAP GROWTH FUND LARGE CAP VALUE FUND
--------------------- --------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
Per share data for a share of capital stock outstanding
for the entire period and selected information
for the period are as follows:
Net asset value, beginning of year $ 7.28 $10.00 $ 9.20 $10.00
Income from investment operations:
Net investment income/(loss) -- (0.04) 0.06 0.05
Net realized and unrealized gains/(losses)
on investments 0.31 (2.68) (0.42) (0.82)
------ ------ ------ ------
Total from investment operations 0.31 (2.72) (0.37) (0.77)
------ ------ ------ ------
Less distributions:
Dividends from net investment income -- -- (0.04) (0.03)
Dividends from net realized gains -- -- (0.01) --
------ ------ ------ ------
Total distributions -- -- (0.05) (0.03)
------ ------ ------ ------
Net asset value, end of year $ 7.59 $ 7.28 $ 8.78 $ 9.20
------ ------ ------ ------
------ ------ ------ ------
Total return 4.26% -27.20% -3.89% -7.76%
Supplemental data and ratios:
Net assets, end of year $118,363,326 $49,664,714 $117,847,247 $53,317,327
Ratio of expenses to average net assets
Before Expense Reimbursement 1.63% 1.75% 1.61% 1.78%
After Expense Reimbursement 1.49% 1.49% 1.49% 1.49%
Ratio of net investment income/(loss)
to average net assets
Before Expense Reimbursement -0.84% -1.19% 0.56% 0.28%
After Expense Reimbursement -0.70% -0.93% 0.69% 0.57%
Portfolio turnover rate 30.47% 82.84% 49.79% 94.61%
See notes to financial statements.
SMALL/MID CAP GROWTH FUND SMALL/MID CAP VALUE FUND
------------------------- ------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
Per share data for a share of capital stock outstanding
for the entire period and selected information
for the period are as follows:
Net asset value, beginning of year $ 7.20 $10.00 $10.15 $10.00
Income from investment operations:
Net investment loss -- (0.06) -- (0.02)
Net realized and unrealized gains/(losses)
on investments 0.44 (2.74) (0.02) 0.17
------ ------ ------ ------
Total from investment operations 0.44 (2.80) (0.02) 0.15
------ ------ ------ ------
Less distributions:
Dividends from net investment income -- -- -- --
Dividends from net realized gains -- -- -- --
------ ------ ------ ------
Total distributions -- -- -- --
------ ------ ------ ------
Net asset value, end of year $ 7.64 $ 7.20 $10.13 $10.15
------ ------ ------ ------
------ ------ ------ ------
Total return 6.11% -28.00% -0.20% 1.50%
Supplemental data and ratios:
Net assets, end of year $31,520,846 $12,917,171 $29,703,370 $13,311,184
Ratio of expenses to average net assets
Before Expense Reimbursement 2.01% 2.30% 2.20% 2.40%
After Expense Reimbursement 1.59% 1.59% 1.59% 1.59%
Ratio of net investment loss
to average net assets
Before Expense Reimbursement -1.78% -2.01% -0.96% -1.14%
After Expense Reimbursement -1.36% -1.30% -0.36% -0.33%
Portfolio turnover rate 19.02% 51.57% 64.32% 84.19%
See notes to financial statements.
INTERNATIONAL EQUITY FUND REAL ESTATE SECURITIES FUND
------------------------- ---------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
Per share data for a share of capital stock outstanding
for the entire period and selected information
for the period are as follows:
Net asset value, beginning of year $ 8.96 $10.00 $11.18 $10.00
Income from investment operations:
Net investment income 0.09 0.03 0.56 0.46
Net realized and unrealized gains/(losses)
on investments (0.80) (1.07) (0.06) 0.97
------ ------ ------ ------
Total from investment operations (0.71) (1.04) 0.49 1.43
------ ------ ------ ------
Less distributions:
Dividends from net investment income (0.03) -- (0.33) (0.25)
Dividends from net realized gains -- -- (0.08) --
------ ------ ------ ------
Total distributions (0.03) -- (0.40) (0.25)
------ ------ ------ ------
Net asset value, end of year $ 8.22 $ 8.96 $11.27 $11.18
------ ------ ------ ------
------ ------ ------ ------
Total return -7.92% -10.40% 4.87% 14.60%
Supplemental data and ratios:
Net assets, end of year $76,915,396 $57,301,398 $26,188,608 $14,186,721
Ratio of expenses to average net assets
Before Expense Reimbursement 1.60% 1.71% 2.02% 2.28%
After Expense Reimbursement 1.59% 1.59% 1.49% 1.49%
Ratio of net investment income to
average net assets
Before Expense Reimbursement 0.97% 0.36% 4.61% 4.36%
After Expense Reimbursement 0.99% 0.48% 5.14% 5.15%
Portfolio turnover rate 148.87% 76.83% 28.71% 68.04%
See notes to financial statements.
TAX-EXEMPT FIXED CORE PLUS FIXED
INCOME FUND INCOME FUND
--------------------- ---------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2003 2002 2003 2002
-------- -------- -------- --------
Per share data for a share of capital stock outstanding
for the entire period and selected information
for the period are as follows:
Net asset value, beginning of year $10.46 $10.00 $10.15 $10.00
Income from investment operations:
Net investment income 0.22 0.18 0.48 0.45
Net realized and unrealized gains
on investments 0.59 0.46 0.56 0.15
------ ------ ------ ------
Total from investment operations 0.81 0.64 1.04 0.60
------ ------ ------ ------
Less distributions:
Dividends from net investment income (0.22) (0.18) (0.48) (0.45)
Dividends from net realized gains -- -- -- --
------ ------ ------ ------
Total distributions (0.22) (0.18) (0.48) (0.45)
------ ------ ------ ------
Net asset value, end of year $11.05 $10.46 $10.71 $10.15
------ ------ ------ ------
------ ------ ------ ------
Total return 7.78% 6.47% 10.47% 6.03%
Supplemental data and ratios:
Net assets, end of year $26,100,100 $14,088,545 $110,280,032 $52,817,274
Ratio of expenses to average net assets
Before Expense Reimbursement 1.82% 2.28% 1.41% 1.62%
After Expense Reimbursement 1.29% 1.29% 1.29% 1.29%
Ratio of net investment income
to average net assets
Before Expense Reimbursement 1.66% 1.42% 4.69% 5.04%
After Expense Reimbursement 2.19% 2.41% 4.81% 5.37%
Portfolio turnover rate 19.18% 11.02% 52.99% 39.01%
See notes to financial statements.
AssetMark Funds
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
1. ORGANIZATION
AssetMark Funds (the "Trust") was organized as a Delaware business trust
under a Declaration of Trust dated January 2, 2001. The Trust is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company with eight non-
diversified funds (the "Funds"): AssetMark Large Cap Growth Fund, AssetMark
Large Cap Value Fund, AssetMark Small/Mid Cap Growth Fund, AssetMark
Small/Mid Cap Value Fund, AssetMark International Equity Fund, AssetMark
Real Estate Securities Fund, AssetMark Tax-Exempt Fixed Income Fund and
AssetMark Core Plus Fixed Income Fund. Each Fund represents a distinct
portfolio with its own investment objectives and policies. The assets of
the AssetMark Core Plus Fixed Income Fund consist of shares of underlying
mutual funds. The assets of each Fund are segregated, and a shareholder's
interest is limited to the Fund in which shares are held. The Funds
commenced operations on June 29, 2001.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of the financial statements.
These policies are in conformity with accounting principles generally
accepted in the United States of America ("GAAP").
(a) Investment Valuation
Portfolio securities which are traded on stock exchanges are valued at
the last sale price as of the close of business on the day the
securities are being valued, or, lacking any sales, at the mean
between the most recent quoted bid and asked price. Each over-the-
counter security for which the last sale price on the day of valuation
is available from NASDAQ and falls within the latest bid and asked
quotations is valued at that price. All other securities traded in
the over-the-counter market are valued at the mean between the most
recent bid and asked price. Securities that are traded on both the
over-the-counter market and on a stock exchange are valued according
to the broadest and most representative market. Investments in open-
end investment companies are valued at the closing net asset value per
share of each mutual fund on the day of valuation. Securities for
which quotations are not readily available will be valued at their
fair market value as determined by the Board of Trustees. Effective
September 15, 2003, portfolio securities listed on a national or
foreign securities exchange, except those listed on NASDAQ, for which
market quotations are available are valued at the last quoted sale
price on each business day. Portfolio securities traded on NASDAQ
will be valued at the NASDAQ Official Closing Price ("NOCP") on each
business day. If there is no reported sale on an exchange or NASDAQ,
the portfolio security will be valued at the mean between the most
recent quoted bid and asked price. Price information on listed
securities is taken from the exchange where the security is primarily
traded.
(b) Organization and Prepaid Initial Registration Expense
Expenses incurred by the Trust in connection with the organization and
initial public offering were expensed as incurred. These expenses
were advanced by the Advisor, and the Advisor has agreed to reimburse
the Funds for these expenses, subject to potential recovery (see Note
3).
(c) Federal Income Taxes
The Funds intend to comply with the requirements of the Internal
Revenue Code necessary to qualify as regulated investment companies
and to make the requisite distributions of income and capital gains to
their shareholders sufficient to relieve them from all or
substantially all Federal income taxes. Therefore, no Federal income
tax provision is required. The tax character of distributions paid
during the year ended June 30, 2003 were the same for financial
statement and tax purposes. GAAP requires that permanent differences
between financial reporting and tax reporting be reclassified between
various components of net assets. As a result of permanent book-to-
tax differences relating to net operating losses, accumulated net
investment loss has been increased and capital stock has been
decreased by $475,918, $243,315 and $62,174 for the Large Cap Growth
Fund, Small/Mid Cap Growth Fund and Small/Mid Cap Value Fund,
respectively. Additionally, as a result of permanent book-to-tax
differences relating to security transactions in real estate
investment trusts, accumulated net investment income has been
decreased and accumulated net realized loss has been decreased by
$9,888, $5 and $125,491 for the Large Cap Value Fund, Small/Mid Cap
Value Fund and the Real Estate Securities Fund, respectively. The
Funds intend to utilize provisions of the federal income tax laws
which allow the Funds to carry realized capital losses forward for
eight years following the year of loss and offset such losses against
any future realized capital gains.
Capital loss carryforwards available for federal income tax purposes
are as follows:
CAPITAL LOSSES EXPIRING:
------------------------
6/30/10 6/30/11
------- -------
Large Cap Growth Fund $858,517 $1,841,558
Large Cap Value Fund -- 3,936,721
Small/Mid Cap Growth Fund 319,848 1,785,504
Small/Mid Cap Value Fund 106,060 320,715
International Equity Fund 410,578 5,891,452
Real Estate Securities Fund -- 70,883
Tax-Exempt Fixed Income Fund -- --
Core Plus Fixed Income Fund -- 163,100
Additionally, at June 30, 2003, the Funds deferred on a tax basis
post-October losses as follows:
Large Cap Growth Fund $5,199,871
Large Cap Value Fund 950,132
Small/Mid Cap Growth Fund 1,245,359
Small/Mid Cap Value Fund 494,371
International Equity Fund 7,441,350
Real Estate Securities Fund 36,633
Tax-Exempt Fixed Income Fund --
Core Plus Fixed Income Fund 199,982
(d) Use of Estimates
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 revenues and expenses during
the reporting period. Actual results could differ from those
estimates.
(e) Indemnifications
Under the Funds' organizational documents, its officers and trustees
are indemnified against certain liability arising out of the
performance of their duties to the Funds. In addition, in the normal
course of business the Funds enter into contracts that contain a
variety of representations and warranties which provide general
indemnifications. The Funds' maximum exposure under these arrangements
are unknown as this would involve future claims that may be made
against the Funds that have not yet occurred. However, the Funds
expect the risk of loss to be remote.
(f) Distribution to Shareholders
The Funds, with the exception of the Tax-Exempt Fixed Income Fund and
Core Plus Fixed Income Fund, will distribute any net investment income
at least annually. The Tax-Exempt Fixed Income Fund and Core Plus
Fixed Income Fund will distribute any net investment income quarterly.
All of the Funds will distribute any net realized long or short-term
capital gains at least annually. Distributions to shareholders are
recorded on the ex-dividend date. The Funds may also pay a special
distribution at the end of the calendar year to comply with federal
tax requirements.
The tax components of dividends paid during the fiscal years ended
June 30, 2003 and 2002 are as follows:
JUNE 30, 2003
------------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
DISTRIBUTIONS DISTRIBUTIONS
------------- -------------
Large Cap Growth Fund $ -- $ --
Large Cap Value Fund 435,442 792
Small/Mid Cap
Growth Fund -- --
Small/Mid Cap
Value Fund -- --
International Equity Fund 221,378 --
Real Estate
Securities Fund 595,223 13,598
Tax-Exempt Fixed
Income Fund 426,327 --
Core Plus Fixed
Income Fund 3,616,590 6,336
JUNE 30, 2002
------------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAINS
DISTRIBUTIONS DISTRIBUTIONS
------------- -------------
Large Cap Growth Fund $ -- $ --
Large Cap Value Fund 82,795 --
Small/Mid Cap
Growth Fund -- --
Small/Mid Cap
Value Fund -- --
International Equity Fund -- --
Real Estate
Securities Fund 189,715 --
Tax-Exempt Fixed
Income Fund 174,229 --
Core Plus Fixed
Income Fund 1,521,932 --
3. INVESTMENT ADVISOR
The Trust has an Investment Advisory Agreement (the "Agreement") with
AssetMark Investment Services, Inc. (the "Advisor"), with whom certain
officers and directors of the Trust are affiliated, to furnish investment
advisory services to the Funds. Under the terms of the Agreement, the
Trust, on behalf of the Funds, compensates the Advisor for its management
services at the following rates, based on each Fund's average daily net
assets:
Large Cap Growth Fund 0.95%
Large Cap Value Fund 0.95%
Small/Mid Cap Growth Fund 0.95%
Small/Mid Cap Value Fund 1.00%
International Equity Fund 0.95%
Real Estate Securities Fund 0.95%
Tax-Exempt Fixed Income Fund 0.80%
Core Plus Fixed Income Fund 0.75%
The Advisor has agreed to waive, through October 31, 2004, its management
fee and/or reimburse the Fund's other expenses, including organization
expenses, to the extent necessary to ensure that the Funds' operating
expenses do not exceed the following rates, based on each Fund's average
daily net assets:
Large Cap Growth Fund 1.49%
Large Cap Value Fund 1.49%
Small/Mid Cap Growth Fund 1.59%
Small/Mid Cap Value Fund 1.59%
International Equity Fund 1.59%
Real Estate Securities Fund 1.49%
Tax-Exempt Fixed Income Fund 1.29%
Core Plus Fixed Income Fund 1.29%
Any such waiver or reimbursement is subject to later adjustment to allow
the Advisor to recoup amounts waived or reimbursed to the extent actual
fees and expenses for a fiscal period are less than each Fund's expense
limitation cap, provided, however, that the Advisor shall only be entitled
to recoup such amounts for a period of three years from the date such
amount was waived or reimbursed. Waived/reimbursed expenses subject to
potential recovery by year of expiration are as follows:
YEAR OF EXPIRATION
-------------------------------------
6/30/04 6/30/05 6/30/06
------- ------- -------
Large Cap
Growth Fund $22,772 $80,252 $93,927
Large Cap
Value Fund 22,772 93,986 83,388
Small/Mid Cap
Growth Fund 11,898 63,245 76,062
Small/Mid Cap
Value Fund 11,898 72,099 105,333
International
Equity Fund 45,839 46,594 8,702
Real Estate
Securities Fund 10,614 69,912 90,683
Tax-Exempt Fixed
Income Fund 4,751 73,116 103,830
Core Plus Fixed
Income Fund 9,507 94,633 90,706
The waived/reimbursed amounts expiring on June 30, 2004 represent
organization expenses incurred by the Trust, and advanced by the Advisor,
in connection with the organization and initial public offering of the
Funds.
Pursuant to sub-advisory agreements between the Advisor and various sub-
advisors, sub-advisors provide sub-advisory services to the Funds. Under
the terms of these sub-advisory agreements, the Advisor compensates the
sub-advisors based on each Fund's average daily net assets.
4. DISTRIBUTION PLAN
The Trust, on behalf of the Funds, has adopted a distribution plan pursuant
to Rule 12b-1 under the 1940 Act (the "12b-1 Plan"), which provides that
the Funds will pay distribution fees to AssetMark Capital Corporation, an
affiliate of the Advisor, at an annual rate of up to 0.25% of the average
daily net assets of the Funds. Quasar Distributors, LLC serves as sub-
distributor to each of the Funds. Payments under the distribution plan
shall be used to compensate persons who provide support services in
connection with the distribution of the Fund's shares and servicing of the
Fund's shareholders. Quasar Distributors, LLC is an affiliated company of
U.S. Bank, N.A.
5. SERVICE AND CUSTODY AGREEMENTS
The Trust has entered into Service Agreements with U.S. Bancorp Fund
Services, LLC ("USBFS") and a Custody Agreement with U.S. Bank, N.A., an
affiliate of USBFS. Under these agreements, USBFS and U.S. Bank, N.A.
provide certain custody, transfer agency, administrative and accounting
services.
6. SECURITIES LENDING
Effective July 1, 2003 the Funds entered into a securities lending
arrangement with U.S. Bank, N.A. (the "Custodian"). Under the terms of the
agreement, the Custodian is authorized to loan securities on behalf of the
Funds to approved brokers against the receipt of cash collateral at least
102% of the value of the securities loaned. The cash collateral is
invested by the Custodian in a money market pooled account approved by the
Advisor. Although risk is mitigated by the collateral, the Funds could
experience a delay in recovering its securities and possible loss of income
or value if the borrower fails to return them. The agreement provides that
after predetermined rebates to brokers, 60% of the net securities lending
revenue shall be solely paid as credits to the Funds to be used as an
offset against Custody Costs and other charges incurred by the Funds from
the Custodian and shall not, in any event, be paid as cash to the Funds.
The Custodian shall be paid a fee for administering a securities lending
program for the Funds, which shall equal 40% of the net securities lending
revenues generated under the agreement as compensation for its securities
lending services.
7. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the year ended June 30, 2003 are summarized below. There
were no purchases or sales of long-term U.S. Government Securities.
PURCHASES SALES
--------- -----
Large Cap
Growth Fund $75,408,122 $20,223,589
Large Cap
Value Fund 88,282,089 32,613,414
Small/Mid Cap
Growth Fund 18,643,646 3,295,093
Small/Mid Cap
Value Fund 24,726,246 10,767,248
International
Equity Fund 105,601,590 81,587,373
Real Estate
Securities Fund 16,034,132 4,813,829
Tax-Exempt Fixed
Income Fund 13,898,890 3,560,666
Core Plus Fixed
Income Fund 91,295,706 40,118,537
At June 30, 2003, the components of accumulated earnings/(losses) on a tax
basis were as follows:
LARGE CAP LARGE CAP SMALL/MID SMALL/MID INTERNATIONAL REAL ESTATE TAX-EXEMPT CORE PLUS
GROWTH VALUE CAP GROWTH CAP VALUE EQUITY SECURITIES FIXED INCOME FIXED INCOME
FUND FUND FUND FUND FUND FUND FUND FUND
--------- --------- ---------- --------- ------------- ----------- ------------ ------------
Cost of
investments $111,154,516 $113,712,685 $28,759,216 $27,708,329 $ 71,497,383 $24,471,300 $24,247,596 $105,455,666
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Gross unrealized
appreciation 13,085,242 12,827,247 5,211,841 3,807,199 7,516,494 2,591,670 1,201,157 4,107,820
Gross unrealized
depreciation (7,219,374) (7,493,170) (2,087,111) (1,245,544) (2,230,321) (509,905) (12,492) (176,821)
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Net unrealized
appreciation $ 5,865,868 $ 5,334,077 $ 3,124,730 $ 2,561,655 $ 5,286,173 $ 2,081,765 $ 1,188,665 $ 3,930,999
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Cumulative
tax cost
adjustments $ 436,483 $ 361,135 $ 287,768 $ 607,806 $ 459,453 $ 259,172 $ -- $ 134,650
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Undistributed
tax-exempt
ordinary
income $ -- $ -- $ -- $ -- $ -- $ -- $ 7,245 $ --
Undistributed
ordinary income -- 212,885 -- -- 599,539 409,879 25,482 21,833
Undistributed
long-term
capital gain -- -- -- -- -- -- 61,398 --
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Total
distributable
earnings $ -- $ 212,885 $ -- $ -- $ 599,539 $ 409,879 $ 94,125 $ 21,833
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Other
accumulated
losses $ (8,336,429) $ (5,247,988) $(3,638,479) $(1,528,952) $(14,202,833) $ (366,688) $ -- $ (497,732)
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
Total
accumulated
earnings/
(losses) $ (2,034,078) $ 660,109 $ (225,981) $ 1,640,509 $ (7,857,668) $ 2,384,128 $ 1,282,790 $ 3,589,750
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
------------ ------------ ----------- ----------- ------------ ----------- ----------- ------------
AssetMark Funds
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees and Shareholders of AssetMark Funds
In our opinion, the accompanying statements of assets and liabilities, including
the statements of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the funds comprising the
AssetMark Funds, (hereafter referred to as the "Funds") at June 30, 2003, the
results of each of their operations for the year then ended, the changes in each
of their net assets for each of the two years in the period then ended and the
financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 2003 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
August 26, 2003
AssetMark Funds
ADDITIONAL INFORMATION
June 30, 2003
1. SHAREHOLDER NOTIFICATION OF FEDERAL TAX STATUS (UNAUDITED)
The Large Cap Value Fund designates fifty-six percent of dividends declared
during the fiscal year ended June 30, 2003 as dividends qualifying for the
dividends received deduction available to corporate shareholders.
2. FOREIGN TAX CREDIT (UNAUDITED)
For the year ended June 30, 2003, the International Equity Fund earned
foreign source income and paid foreign taxes, which they intend to pass
through to their shareholders pursuant to Section 853 of the Internal
Revenue Code as follows:
Foreign Source Income Earned Foreign Taxes Paid
---------------------------- ------------------
Australia $ 21,773 $ --
Brazil 73,513 5,194
Canada 19,550 2,928
Denmark 28,052 8,649
Finland 84,948 12,742
France 266,011 41,036
Germany 5,674 976
Hong Kong 58,447 4,125
India 1,636 301
Ireland 17,549 555
Israel 1,241 239
Italy 54,165 14,624
Japan 79,609 12,683
Mexico 5,267 --
Netherlands 98,451 20,601
Peru 1,718 --
Singapore 18,072 2,514
South Africa 38,558 6,784
South Korea 20,430 3,371
Spain 47,905 --
Sweden 145,562 22,017
Switzerland 35,849 5,377
Thailand 13,399 1,340
United Kingdom 538,088 48,527
---------- --------
Total $1,675,467 $214,583
---------- --------
---------- --------
3. DISCLOSURE REGARDING FUND TRUSTEES AND OFFICERS (UNAUDITED)
# OF
PORTFOLIOS
IN FUND OTHER
POSITION(S) TERM OF OFFICE COMPLEX DIRECTOR/
NAME, AGE HELD WITH AND LENGTH OF PRINCIPAL OVERSEEN TRUSTEE
AND ADDRESS THE TRUST TIME SERVED OCCUPATION DURING PAST FIVE YEARS BY TRUSTEE POSITIONS
- ----------- ----------- -------------- --------------------------------- ---------- ---------
INDEPENDENT TRUSTEES
R. Thomas DeBerry, 61 Trustee Indefinite Term President, DeBerry Consulting (a 8 None
c/o AssetMark since January a securities consulting firm) (1988-
Investment Services, Inc. 2001. present); Director, Investment Manager
2300 Contra Costa Services Division of Resources Trust
Boulevard, Suite 425 Company (1998-2000).
Pleasant Hill, CA 94523
William J. Klipp, 47 Trustee Indefinite Term Retired; President and Chief Operating 8 Trustee of the
c/o AssetMark since January Officer, Charles Schwab Investment Lend Lease
Investment Services, Inc. 2001. Management, Inc. and Executive Vice Rosen Funds
2300 Contra Costa President, Schwab Funds (1993-1999). (2000-present);
Boulevard, Suite 425 Director of
Pleasant Hill, CA 94523 SaveDaily.com
(2000-present).
Leonard H. Rossen, 71 Trustee Indefinite Term President, Len Rossen Consulting (a legal 8 None
c/o AssetMark since January consulting firm) (1999-present); Corporate
Investment Services, Inc. 2001. Counsel, Franklin Templeton Mutual Funds
2300 Contra Costa and Distributors, Inc. (1996-1999); Regional
Boulevard, Suite 425 Counsel and Vice President, Equitable Life
Pleasant Hill, CA 94523 Insurance Society (1987-1996); Various key
legal positions Securities and Exchange
Commission (1973-1987).
INTERESTED TRUSTEES
Ronald Cordes*<F10>, 44 President, Indefinite Term Principal, AssetMark Investment Services, 8 None
AssetMark Investment Chairperson, since January Inc. (1994-present).
2300 Contra Costa Trustee 2001.
Boulevard, Suite 425
Pleasant Hill, CA 94523
Richard Steiny*<F10>, 46 Trustee Indefinite Term Principal, AssetMark Investment Services, 8 None
AssetMark Investment since January Inc. (1994-present).
2300 Contra Costa 2001.
Boulevard, Suite 425
Pleasant Hill, CA 94523
OFFICERS
John Whittaker, 34 Vice President 1-Year Term Vice President and Chief Operating N/A N/A
AssetMark since January Officer, AssetMark Investment
Investment Services, Inc. 2001 Services, 2000 to present; Director
2300 Contra Costa of Operations, AssetMark Investment
Boulevard, Suite 425 Services, Inc., 1997 to 2000; Regional
Pleasant Hill, CA 94523 Consultant, AssetMark Investment
Services, Inc., 1994 to 1997.
Carrie E. Hansen, 33 Treasurer 1-Year Term Director of Operations, AssetMark N/A N/A
AssetMark since January Investment Services, Inc., 2000 to
Investment Services, Inc. 2001 present; Director of Operations,
2300 Contra Costa Barclays Global Investors, Japan, 1998
Boulevard, Suite 425 to 2000; Principal, Domestic Fund
Pleasant Hill, CA 94523 Accounting, Barclays Global Investors,
1997-1998, Manager, Coopers & Lybrand,
1996 to 1997.
Teresa Escano, 41 Secretary 1-Year Term Director of Advisor Services Group, N/A N/A
AssetMark since January AssetMark Investment Services, Inc.,
Investment Services, Inc. 2001 2000 to present; Manager of Advisor
2300 Contra Costa Services Group, 1997 to 2000; Portfolio
Boulevard, Suite 425 Manager Administrator for The
Pleasant Hill, CA 94523 Headlands Group, Inc. (an investment
adviser), 1992 to 1997.
The Statement of Additional Information includes additional information about
the Fund's Trustees and is available free of charge upon request by calling the
Fund toll free at (888) 278-5809.
*<F10> Ronald Cordes and Richard Steiny are considered "interested persons" of
the Funds as defined in the 1940 Act due to their relationship with the
Advisor.
ASSETMARK FUNDS
ASSETMARK LARGE CAP GROWTH FUND
ASSETMARK LARGE CAP VALUE FUND
ASSETMARK SMALL/MID CAP GROWTH FUND
ASSETMARK SMALL/MID CAP VALUE FUND
ASSETMARK INTERNATIONAL EQUITY FUND
ASSETMARK REAL ESTATE SECURITIES FUND
ASSETMARK TAX-EXEMPT FIXED INCOME FUND
ASSETMARK CORE PLUS FIXED INCOME FUND
INVESTMENT ADVISOR
AssetMark Investment Services, Inc.
2300 Contra Costa Blvd., Suite 425
Pleasant Hill, CA 94523
LEGAL COUNSEL
Stradley Ronon Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
333 Market Street
San Francisco, CA 94105
TRANSFER AGENT, FUND ACCOUNTANT
AND FUND ADMINISTRATOR
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202
CUSTODIAN
U.S. Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
DISTRIBUTOR
AssetMark Capital Corporation
2300 Contra Costa Blvd., Suite 425
Pleasant Hill, CA 94523
ITEM 2: CODE OF ETHICS -- Item not required at this time; applicable only to
annual reports with periods ending on or after July 15, 2003.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT -- Item not required at this time;
applicable only to annual reports with periods ending on or after July 15, 2003.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES -- Item not required at this
time; applicable only to annual reports with periods ending on or after December
15, 2003.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS -- Item not applicable to
registrant, which is an open-end management investment company.
ITEM 6: [RESERVED].
ITEM 7: DISCLOSURE of PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES -- Item not applicable to registrant, which is
an open-end management investment company.
ITEM 8: [RESERVED].
ITEM 9: CONTROLS AND PROCEDURES
(a) Based on their evaluation of the Registrant's disclosure controls and
procedures ("Procedures") as of a date within 90 days of the filing date of this
Form N-CSR (the "Report"), the Registrant's President/Chief Executive Officer
and Treasurer/Chief Financial Officer believe that the disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment Company Act of
1940, as amended) are effectively designed to ensure that information required
to be disclosed by the Registrant in the Report is recorded, processed,
summarized and reported by the filing date, including ensuring that the
information required to be disclosed in the Report is accumulated and
communicated to the Registrant's principal executive and financial officers that
are making certifications in the Report, as appropriate, to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, and there were no corrective actions with regard
to significant deficiencies and material weaknesses.
ITEM 10: EXHIBITS
(a) Item not required at this time; applicable only to annual reports with
periods ending on or after July 15, 2003.
(b) The certifications required by Rule 30a-2 under the Investment Company
Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of
2002 are attached as exhibits hereto.
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: AssetMark Funds
By: /s/ Ronald D. Cordes
-------------------------------
Name: Ronald D. Cordes
Title: President
Date: September 4, 2003
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.
Registrant: AssetMark Funds
By: /s/ Ronald D. Cordes
-------------------------------
Name: Ronald D. Cordes
Title: President (Principal Executive Officer)
Date: September 4, 2003
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.
Registrant: AssetMark Funds
By: /s/ Carrie E. Hansen
-------------------------------
Name: Carrie E. Hansen
Title: Treasurer (Principal Financial Officer)
Date: September 4, 2003