UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSRS
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-0792
CNI CHARTER FUNDS
(Exact name of registrant as specified in charter)
--------
400 North Roxbury Drive
Beverly Hills, CA 90210
(Address of principal executive offices) (Zip code)
SEI Investments Distributors
1 Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-888-889-0799
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2005
DATE OF REPORTING PERIOD: MARCH 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
CNI CHARTER FUNDS (SM) [LOGO](R)
SEMI -- ANNUAL REPORT
MARCH 31, 2005
[GRAPHIC OMITTED]
Large Cap Value Equity Fund
Large Cap Growth Equity Fund
RCB Small Cap Value Fund
Technology Growth Fund
Corporate Bond Fund
Government Bond Fund
California Tax Exempt Bond Fund
High Yield Bond Fund
Prime Money Market Fund
Government Money Market Fund
California Tax Exempt Money Market Fund
Investment Manager:
CITY NATIONAL ASSET MANAGEMENT, INC.
This report and the financial statements contained herein are provided for the
general information of the shareholders of the CNI Charter Funds.This report is
not authorized for distribution to prospective investors in the CNI Charter
Funds unless preceded or accompanied by an effective prospectus. Please remember
that past performance is no guarantee of future results.
Shares of CNI Charter Funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency and
involve investment risks, including the possible loss of the principal amount
invested.
[GRAPHIC OMITTED]
TABLE OF CONTENTS
CNI CHARTER FUNDS SEMI-ANNUAL REPORT
02 Letter to Our Shareholders
04 Equity Funds Investment Adviser's Report
05 Fixed Income Funds Investment Adviser's Report
06 Statements of Net Assets/Schedule of Investments
48 Statement of Assets & Liabilities
49 Statements of Operations
52 Statements of Changes in Net Assets
56 Financial Highlights
59 Notes to Financial Statements
67 Disclosure of Fund Expenses
69 Approval of Investment Advisory Agreements
CNI CHARTER FUNDS | PAGE 1
LETTER TO OUR SHAREHOLDERS
MARCH 31, 2005
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We are pleased to provide you with the CNI Charter Funds Semi-Annual Report for
the six months ended March 31, 2005. This was a period marked by a steady rise
in short term interest rates and volatility in oil prices which roiled financial
markets.
The underlying investment philosophy of the CNI Charter Funds is to pursue the
long-term goals and objectives specified for each of the Funds without being
swayed by short-term trends and fads. All Funds are managed with an active yet
disciplined style that seeks to achieve competitive rates of return consistent
with their respective, prescribed risk parameters. City National Asset
Management, Inc., as Investment Manager to the Funds, utilizes in-depth research
that takes advantage of the most advanced investment technology, fundamental
valuation, and quantitative tools to determine the most attractive sectors and
securities within each Fund's area of concentration. This approach has served
shareholders well overall during the complex and volatile financial environment
we encountered in the period ending March 31, 2005.
SIX-MONTH MARKET WATCH: OCTOBER 2004 - MARCH 2005
The major domestic and international equity indices rebounded in the six-months
ended March 31, 2005 following a period of negative volatility during the prior
six month period. (Please refer to the table that follows.) The two month
decline in oil prices that began in late October had a decidedly beneficial
effect on equity prices during the final months of 2004. However, the sharp
upswing experienced by the equity markets in the final two months of 2004 was
partially reversed in the first months of 2005 as oil prices once again climbed
to record highs. Also during the period, the Federal Reserve continued its
tightening policy, resulting in an increase in the targeted Fed Funds rate (the
rate charged by banks for overnight loans to other banks to meet reserve
requirements) to 2.75% on March 22, 2005. Rates on longer term bonds moved up as
well during the period, with the 10-year Treasury Bond yielding 4.4% as of this
writing, vs. just over 4.0% six months earlier. As a result, returns in the bond
market were mixed during the period.
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SIX-MONTH OCTOBER 2004 -
INDEX WATCH: MARCH 2005
EQUITIES:
S&P 500 Stock Index:.......................................... +6.88%
Dow Jones Industrials:........................................ +5.37%
NASDAQ:....................................................... +5.73%
MSCI EAFE Index:.............................................. +15.13%
BONDS:
Lehman Aggregate Bond Index:.................................. +0.48%
Lehman Inter. Govt/Credit:.................................... -0.45%
- --------------------------------------------------------------------------------
The domestic economic recovery remains intact, with real growth widely expected
to come in slightly above 3.0% this year and 2.5% next year. However, the rate
of growth is already beginning to show signs of slowing, and at this point in
the economic cycle we expect that deceleration to continue. The economy, as
officially measured by the national Bureau of Economic Research, has entered its
fourth year of growth and we are quickly moving towards the later stages of the
economic cycle. Real GDP growth was reported at 3.8% for the fourth quarter of
2004, and is widely expected to be 3.0% in the first quarter of 2005, according
to the latest Blue Chip Economic Consensus forecast figures.
While inflation has remained at very low levels for the last three years, recent
reports on both producer and consumer prices have been slightly above
expectations. The Federal Reserve, which previously described inflation as "well
contained", has more recently noted that pressures on inflation have picked up
in recent months. The impact of higher inflation has been evidenced in a broad
range of commodities, leading to significantly higher prices being paid for
steel, copper, aluminum, and lead in addition to the higher prices being paid
for oil. Not surprisingly, energy and materials stocks were among the best
performing during the six month period.
CNI CHARTER FUNDS | PAGE 2
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SIX-MONTH WATCH: CNI CHARTER FUNDS PERFORMANCE
(ALL RETURNS LISTED BELOW ARE FOR INSTITUTIONAL CLASS SHARES)
By adhering to our basic investment discipline and maintaining the appropriate
amount of risk control in the various portfolios, the Funds continue to provide
returns that are competitive in their respective investment arenas.
All of the equity-oriented Funds showed positive returns during the six-month
period. The top performer was the LARGE CAP VALUE EQUITY FUND, which rose 8.16%.
Following close behind was the 7.87% return to the RCB SMALL CAP VALUE FUND. The
TECHNOLOGY GROWTH FUND rose 6.07%, while the LARGE CAP GROWTH EQUITY FUND gained
5.68% during the six-month period.
The results of the bond funds were mixed during the six-month period, reflecting
the upward trend in interest rates. The HIGH YIELD BOND FUND rose 2.55%,
reflecting the improving credit quality of issuers resulting from an improvement
in corporate profits. Despite the increase in interest rates that depressed the
prices of investment grade bonds, defensive portfolio strategies limited its
effect on bond fund performance. The GOVERNMENT BOND FUND was flat for the six
months, and the CALIFORNIA TAX EXEMPT BOND FUND and CORPORATE BOND FUND
experienced relatively modest declines of -0.31% and -0.47%, respectively.
Lastly, all three Money Market Funds continued to turn in competitive, albeit
moderate, yields for the six months ending March 31, 2005.
The following pages contain important information and details on the assets and
financial condition of the Funds. Please read them carefully and if you have any
questions about this report or the CNI Charter Funds, please call your
investment professional or contact us at (888) 889-0799.
Thank you for choosing CNI Charter Funds.
Sincerely,
/s/ Richard A. Weiss
Richard A. Weiss
PRESIDENT
CITY NATIONAL ASSET MANAGEMENT, INC.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CERTAIN SHAREHOLDERS MAY BE
SUBJECT TO THE ALTERNATIVE MINIMUM TAX (AMT). FEDERAL INCOME TAX RULES APPLY TO
ANY CAPITAL GAIN DISTRIBUTIONS.
FUND EXPENSES HAVE BEEN WAIVED DURING THE PERIOD ON WHICH THE PERFORMANCE IS
BASED. WITHOUT WAIVERS, PERFORMANCE WOULD BE LOWER.
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
INVESTING IN MUTUAL FUNDS INVOLVES RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
IN ADDITIONAL TO THE NORMAL RISKS ASSOCIATED WITH INVESTING, INVESTMENTS IN
SMALLER COMPANIES TYPICALLY EXHIBIT HIGHER VOLATILITY, AND PRODUCTS OF COMPANIES
IN WHICH TECHNOLOGY FUNDS INVEST MAY BE SUBJECT TO SEVERE COMPETITION AND RAPID
OBSOLESCENCE. AN INVESTMENT IN THE FUNDS IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
----------------------------------------------------
*NOT FDIC INSURED *NO BANK GUARANTEE *MAY LOSE VALUE
----------------------------------------------------
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cnicharterfunds.com
- --------------------------------------------------------------------------------
Visit our website CNICHARTERFUNDS.COM where you will find comprehensive
information about our fund family including:
o Daily, monthly and quarterly performance
o Detailed descriptions on each CNI Charter Fund
o Prospectus and annual report downloads
o Additional information for investment professionals
- --------------------------------------------------------------------------------
CNI CHARTER FUNDS | PAGE 3
INVESTMENT ADVISER'S REPORT
MARCH 31, 2005
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EQUITY FUNDS
"A tale of two quarters" is a good way to describe the equity market for the six
months ending March 31, 2005. The market, as measured by the S&P 500, rose 9.23%
in the fourth quarter 2004, producing a year's worth of returns in one quarter.
Unfortunately, the market could not sustain this positive momentum, as first
quarter 2005 returns were down 2.15% for the S&P 500. Fourth quarter returns
were buoyed by strong factory orders, the presidential election, declining oil
prices, and the sense that 2005 would produce positive earning surprises. The
Fed countered this positive sentiment at the start of 2005, mentioning that
interest rates were too low to slow inflation and expressing concern about
excessive risk-taking in the markets. Additionally, oil prices became the
leading story, once again, as price levels reached near-term highs.
Within this market environment, over the past six months, all four CNI Charter
Equity Funds produced positive returns. ALL RETURNS FOR CNI CHARTER FUNDS STATED
BELOW ARE FOR INSTITUTIONAL CLASS SHARES.
o The LARGE CAP VALUE EQUITY FUND returned 8.16%. This performance
outperformed both the S&P 500/BARRA Value Index return of 7.26% and the
Lipper Large Cap Value Funds Classification return of 8.06%.
o The LARGE CAP GROWTH EQUITY FUND gained 5.68%. This performance trailed
the S&P 500/BARRA Growth Index return of 6.49%, but outperformed the
Lipper Large Cap Growth Funds Classification return of 4.71%.
o The RCB SMALL CAP VALUE FUND returned 7.87%. This result underperformed
the Russell 2000 Value Index return of 8.70% and the Lipper Small Cap
Value Funds Classification return of 10.36%.
o The TECHNOLOGY GROWTH FUND achieved a 6.07% return. This performance beat
the Russell 3000 Technology Index return of 6.05% and the Lipper Science &
Technology Funds Objective return of 5.51%.
LOOKING FORWARD
The Federal Reserve sees robust economic activity and expects long-term
inflation to remain contained. Oil prices remain a wild card, as changes in oil
prices tend to inversely affect the equity market. Higher short-term interest
rates appear certain, but still remain low compared to historic levels.
Even in a rising interest rate environment, the equity market, on average, has
historically produced positive returns. Growth in corporate earnings should
continue, albeit, at a slower pace. This continued growth in earnings should
translate into further gains for the equity market. Therefore, as of this
writing, we remain cautiously optimistic regarding the sustainability of the
current equity market rally.
As always, the CNI Charter Equity Funds continue to provide a disciplined
investment approach with the constant goal of achieving superior investment
results.
Sincerely,
/s/ Brian L. Garbe
Brian L. Garbe
DIRECTOR OF RESEARCH
CITY NATIONAL ASSET MANAGEMENT, INC.
CNI CHARTER FUNDS | PAGE 4
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FIXED INCOME FUNDS
The six-months ending March 31, 2005 witnessed a major turning point for the
fixed income market. Interest rates across the board, with the exception of 30
year rates, rose fairly dramatically. The backdrop to this turn-around was
fueled by the long-awaited tightening monetary policy coupled with growing signs
of inflationary pressures. Indeed, the Federal Open Market Committee (FOMC)
continued their fight against these inflationary forces vis-a-vis consecutive
rate hikes of 25 basis points at every FOMC meeting since June 30, 2004. The
Federal Funds rate stands at 2.75% at the time of this writing with a growing
probability of additional hikes throughout 2005. The yield curve flattened with
short rates rising more than long rates as investors demanded additional yield
to compensate them for the looming inflation. While this interest rate
environment was difficult to navigate through, strategies that planned for this
were well rewarded.
STRATEGIC OUTLOOK FOR BOND FUNDS
In light of the economic landscape and Fed activities, we are maintaining our
slightly defensive maturity posture for our Bond Funds.
Our strategic posture for the CORPORATE BOND FUND is to remain more focused on
higher quality investment grade issues versus its benchmark, the Lehman
Intermediate Corporate Index. We have become less "barbelled" (from our previous
overweight of 2-year and 10-year issues) by removing our overweight in the
ten-year area. We are still calling for higher rates and a flatter yield curve.
That said, we are concerned about the price volatility in longer term maturities
going forward since they have held relatively steady these past months coupled
with the Fed's more hawkish tone.
The GOVERNMENT BOND FUND maintains its conservative maturity profile. The
continued bias toward agency securities versus Treasuries should continue to
benefit the Fund through higher relative yields.
The CALIFORNIA TAX EXEMPT BOND FUND is conceptually the same as our taxable
funds. In a nutshell, it's comprised of a combination of a modified barbell
maturity structure along with defensive portfolio characteristics. This
strategy, along with the Fund, has been well rewarded this year as the yield
curve has flattened and interest rate volatility has increased.
Although this economic expansion cycle is maturing, the HIGH YIELD BOND FUND
continued to benefit from historically narrow yield spreads. This Fund retains
its strategic posture of excellent sector allocation as well as a quality bias
versus its competitors.
STRATEGIC OUTLOOK FOR MONEY MARKET FUNDS
Each of the CNI Charter Money Market Funds managed their way through an
extremely difficult operating environment. Our conservative portfolio posture of
the Funds should be well rewarded as the Federal Reserve continues to tighten
monetary policy. Our relatively short maturity position coupled with a high
degree of liquidity should enable the Funds to take advantage of market
opportunities as the year progresses.
Sincerely,
/s/ Rodney J. Olea
Rodney J. Olea
DIRECTOR OF FIXED INCOME
CITY NATIONAL ASSET MANAGEMENT, INC.
CNI CHARTER FUNDS | PAGE 5
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Financials 36.4%
Consumer Discretionary 13.0%
Energy 8.1%
Healthcare 8.0%
Industrials 7.7%
Information Technology 7.3%
Utilities 5.6%
Telecommunications 5.4%
Materials 3.4%
Consumer Staples 2.7%
Short-Term Investments 2.4%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
- -------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
COMMON STOCK [97.6%]
AEROSPACE & DEFENSE [0.8%]
Honeywell International 7,000 $ 260
Raytheon 3,700 143
----------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 403
================================================================
AIR FREIGHT & LOGISTICS [0.8%]
FedEx 2,200 207
Ryder System 4,800 200
----------------------------------------------------------------
TOTAL AIR FREIGHT & LOGISTICS 407
================================================================
APPAREL/TEXTILES [0.6%]
Jones Apparel Group 8,500 285
================================================================
AUTOMOTIVE [1.3%]
Ford Motor 31,000 351
Johnson Controls 5,000 279
----------------------------------------------------------------
TOTAL AUTOMOTIVE 630
================================================================
BANKS [11.5%]
Bank of America 40,674 1,794
BB&T 11,000 430
Fifth Third Bancorp 9,700 417
Keycorp 10,400 337
National City 12,600 422
PNC Financial Services Group 6,800 350
Wachovia 18,000 916
Wells Fargo 18,730 1,120
----------------------------------------------------------------
TOTAL BANKS 5,786
================================================================
- -------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
BIOTECHNOLOGY [0.5%]
Applera - Applied Biosystems
Group 12,800 $ 253
================================================================
CAPITAL MARKETS [7.6%]
Bank of New York 18,200 529
Goldman Sachs Group 6,600 726
Lehman Brothers Holdings 5,700 537
Mellon Financial 11,800 337
Merrill Lynch 13,400 758
Morgan Stanley 11,800 676
State Street 5,300 232
----------------------------------------------------------------
TOTAL CAPITAL MARKETS 3,795
================================================================
CHEMICALS [0.9%]
Air Products & Chemicals 5,500 348
PPG Industries 1,700 122
----------------------------------------------------------------
TOTAL CHEMICALS 470
================================================================
COMMERCIAL SERVICES & SUPPLIES [0.2%]
Cendant 5,800 119
================================================================
COMMUNICATIONS EQUIPMENT [0.7%]
Motorola 10,000 150
Scientific-Atlanta 7,300 206
----------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT 356
================================================================
COMPUTERS & PERIPHERALS [2.4%]
EMC-Mass* 32,900 405
Hewlett-Packard 36,800 807
----------------------------------------------------------------
TOTAL COMPUTERS & PERIPHERALS 1,212
================================================================
CONSTRUCTION MATERIALS [0.4%]
Vulcan Materials 3,500 199
================================================================
CONSUMER FINANCES [1.4%]
Capital One Financial 3,000 224
MBNA 19,210 471
----------------------------------------------------------------
TOTAL CONSUMER FINANCES 695
================================================================
DIVERSIFIED FINANCIAL SERVICES [4.2%]
CIT Group 7,400 281
Citigroup 29,086 1,307
JPMorgan Chase 14,255 493
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TOTAL DIVERSIFIED FINANCIAL SERVICES 2,081
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 6
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
ELECTRICAL SERVICES [3.8%]
Entergy 2,100 $ 148
Exelon 12,700 583
FirstEnergy 9,700 407
FPL Group 3,200 128
PG&E* 6,200 211
PPL 3,400 184
TXU 3,200 255
----------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 1,916
================================================================
ELECTRONIC EQUIPMENT & INSTRUMENTS [1.0%]
Jabil Circuit* 9,100 260
Solectron* 22,000 76
Tektronix 5,900 145
----------------------------------------------------------------
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS 481
================================================================
FOOD & BEVERAGE [1.3%]
Archer-Daniels-Midland 16,900 415
Coca-Cola Enterprises 12,100 248
----------------------------------------------------------------
TOTAL FOOD & BEVERAGE 663
================================================================
FOOD & STAPLES RETAILING [1.4%]
Costco Wholesale 3,700 163
CVS 5,200 274
Supervalu 8,000 267
----------------------------------------------------------------
FOOD & STAPLES RETAILING 704
================================================================
HEALTHCARE PROVIDERS & SERVICES [4.6%]
Aetna 7,200 540
AmerisourceBergen 2,900 166
Cigna 4,500 402
HCA 10,300 552
McKesson 8,000 302
WellPoint* 2,600 326
----------------------------------------------------------------
TOTAL HEALTHCARE PROVIDERS & SERVICES 2,288
================================================================
HOTELS, RESTAURANTS & LEISURE [1.3%]
Carnival 2,600 135
Marriott International 4,200 281
Starwood Hotels & Resorts
Worldwide 3,700 222
----------------------------------------------------------------
TOTAL HOTELS, RESTAURANTS & LEISURE 638
================================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
HOUSEHOLD DURABLES [1.5%]
Centex 4,800 $ 275
Fortune Brands 2,600 210
KB Home 2,300 270
----------------------------------------------------------------
TOTAL HOUSEHOLD DURABLES 755
================================================================
INDUSTRIAL CONGLOMERATES [2.0%]
Textron 3,000 224
Tyco International 22,300 754
----------------------------------------------------------------
TOTAL INDUSTRIAL CONGLOMERATES 978
================================================================
INSURANCE [6.6%]
ACE, ADR 4,600 190
Aflac 4,400 164
Allstate 10,500 568
American International Group 18,200 1,008
Chubb 4,900 388
Lincoln National 3,200 144
Progressive 3,300 303
Prudential Financial 9,700 557
----------------------------------------------------------------
TOTAL INSURANCE 3,322
================================================================
IT SERVICES [0.9%]
Affiliated Computer Services,
Cl A* 4,500 240
Computer Sciences* 5,000 229
----------------------------------------------------------------
TOTAL IT SERVICES 469
================================================================
LEISURE EQUIPMENT & PRODUCTS [0.6%]
Brunswick 6,500 304
================================================================
MACHINERY [1.3%]
Cummins 3,700 260
Danaher 7,000 374
----------------------------------------------------------------
TOTAL MACHINERY 634
================================================================
MEDIA [4.2%]
Clear Channel Communications 14,800 510
Walt Disney 16,800 483
Gannett 3,400 269
Time Warner* 24,000 421
Tribune 10,300 411
----------------------------------------------------------------
TOTAL MEDIA 2,094
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 7
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
METALS & MINING [0.8%]
Alcoa 12,300 $ 374
================================================================
MULTI-UTILITIES [1.7%]
Constellation Energy Group 3,900 202
Dominion Resources 4,400 327
Sempra Energy 8,600 343
----------------------------------------------------------------
TOTAL MULTI-UTILITIES 872
================================================================
OIL & GAS [8.1%]
Apache 6,006 368
Burlington Resources 6,000 300
ChevronTexaco 19,940 1,163
ConocoPhillips 8,340 899
Devon Energy 6,300 301
Exxon Mobil 4,800 286
Marathon Oil 5,600 263
Occidental Petroleum 7,000 498
----------------------------------------------------------------
TOTAL OIL & GAS 4,078
================================================================
PAPER & FOREST PRODUCTS [1.3%]
MeadWestvaco 9,500 302
Weyerhaeuser 5,400 370
----------------------------------------------------------------
TOTAL PAPER & FOREST PRODUCTS 672
================================================================
PHARMACEUTICALS [2.9%]
Pfizer 56,000 1,471
================================================================
ROAD & RAIL [2.6%]
Burlington Northern Santa Fe 8,900 480
Norfolk Southern 11,400 423
Union Pacific 5,900 411
----------------------------------------------------------------
TOTAL ROAD & RAIL 1,314
================================================================
RETAIL [3.6%]
Federated Department Stores 5,875 374
JC Penney 8,000 415
Limitedbrands 15,200 369
Lowe's 3,800 217
Staples 7,500 236
Target 3,800 190
----------------------------------------------------------------
TOTAL RETAIL 1,801
================================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS [2.2%]
Applied Materials* 9,700 $ 158
Intel 11,150 259
Micron Technology* 22,400 231
Texas Instruments 18,500 471
----------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 1,119
================================================================
TELEPHONES & TELECOMMUNICATIONS [5.4%]
Alltel 4,200 230
CenturyTel 7,300 240
SBC Communications 21,800 516
Sprint-FON Group 24,300 553
Verizon Communications 32,409 1,151
----------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,690
================================================================
THRIFTS & MORTGAGE FINANCE [5.2%]
Countrywide Financial 16,698 542
Fannie Mae 9,800 534
Freddie Mac 9,330 590
Golden West Financial 6,600 399
Washington Mutual 13,000 514
----------------------------------------------------------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,579
================================================================
TOTAL COMMON STOCK
(Cost $39,329) 48,907
===========================================================
CASH EQUIVALENTS [2.4%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I 1,209,243 1,209
SEI Daily Income Trust,
Prime Obligation Fund, Cl I 13,015 13
----------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $1,222) 1,222
===========================================================
TOTAL INVESTMENTS [100.0%]
(Cost $40,551) 50,129
===========================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 8
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES:
Payable for Capital Shares Redeemed $ (74)
Income Distributions Payable (82)
Investment Advisory Fees Payable (27)
Shareholder Servicing and Distribution
Fees Payable (13)
Administration Fees Payable (2)
Other Assets and Liabilities, Net 180
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [0.0%] (18)
===========================================================
NET ASSETS [100.0%] $ 50,111
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 37,786
Accumulated net realized gain on investments 2,747
Net unrealized appreciation on investments 9,578
----------------------------------------------------------------
NET ASSETS$ $ 50,111
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($41,075,233 / 4,529,043 shares) $ 9.07
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($9,036,008 / 997,300 shares) $ 9.06
================================================================
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 9
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Information Technology 22.5%
Consumer Staples 18.3%
Healthcare 16.9%
Industrials 15.2%
Consumer Discretionary 9.4%
Energy 8.3%
Materials 2.9%
Short-Term Investments 2.6%
Financials 2.1%
Global Stock 0.9%
Utilities 0.6%
Telecommunications 0.3%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
COMMON STOCK [97.0%]
AIR FREIGHT & LOGISTICS [1.7%]
United Parcel Service, Cl B 8,700 $ 633
================================================================
AEROSPACE & DEFENSE [2.6%]
L-3 Communications Holdings 2,500 178
Lockheed Martin 4,800 293
United Technologies 4,800 488
----------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 959
================================================================
AUTOMOTIVE [0.8%]
Harley-Davidson 5,200 300
================================================================
BIOTECHNOLOGY [0.9%]
Amgen* 5,500 320
================================================================
CAPITAL MARKETS [0.5%]
Federated Investors 6,300 178
================================================================
CHEMICALS [2.3%]
Dow Chemical 5,000 249
Ecolab 4,400 146
Hercules* 6,700 97
International Flavors &
Fragrances 4,300 170
Praxair 4,100 196
----------------------------------------------------------------
TOTAL CHEMICALS 858
================================================================
COMMERCIAL SERVICES & SUPPLIES [4.0%]
Apollo Group, Cl A* 4,400 326
Avery Dennison 3,700 229
Cendant 8,300 170
Deluxe 3,800 151
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
Equifax 7,000 $ 215
H&R Block 5,400 273
Robert Half International 4,000 108
----------------------------------------------------------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 1,472
================================================================
COMMUNICATIONS EQUIPMENT [2.4%]
Cisco Systems* 29,250 523
Qualcomm 9,900 363
----------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT 886
================================================================
COMPUTERS & PERIPHERALS [5.0%]
Dell* 20,065 771
IBM 11,600 1,060
----------------------------------------------------------------
TOTAL COMPUTERS & PERIPHERALS 1,831
================================================================
CONSUMER FINANCE [0.9%]
SLM 6,400 319
================================================================
CONTAINERS & PACKAGING [0.5%]
Ball 4,800 199
================================================================
ELECTRICAL SERVICES [0.6%]
Exelon 4,900 225
================================================================
ENERGY EQUIPMENT & SERVICES [1.8%]
Halliburton 6,300 272
Schlumberger 5,700 402
----------------------------------------------------------------
TOTAL ENERGY EQUIPMENT & SERVICES 674
================================================================
FOOD & BEVERAGE [7.3%]
Anheuser-Busch 5,800 275
Archer-Daniels-Midland 12,800 315
Coca-Cola 9,800 408
Kellogg 6,200 268
Molson Coors Brewing 2,700 208
Pepsi Bottling Group 5,700 159
PepsiCo 9,900 525
Sara Lee 18,700 414
Wm. Wrigley Jr. 2,100 138
----------------------------------------------------------------
TOTAL FOOD & BEVERAGE 2,710
================================================================
FOOD & STAPLES RETAILING [5.5%]
Sysco 10,300 369
Wal-Mart Stores 32,875 1,647
----------------------------------------------------------------
TOTAL FOOD & STAPLES RETAILING 2,016
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 10
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
HEALTHCARE EQUIPMENT & SUPPLIES [4.6%]
Bard (C.R.) 3,200 $ 218
Baxter International 3,800 129
Boston Scientific* 11,900 349
St. Jude Medical* 8,100 292
Stryker 7,600 339
Zimmer Holdings* 4,600 358
----------------------------------------------------------------
TOTAL HEALTHCARE EQUIPMENT & SUPPLIES 1,685
================================================================
HEALTHCARE PROVIDERS & SERVICES [4.2%]
AmerisourceBergen 3,700 212
Community Health Systems* 5,000 174
Express Scripts* 3,600 314
IMS Health 7,500 183
Lincare Holdings* 2,200 97
UnitedHealth Group 6,000 572
----------------------------------------------------------------
TOTAL HEALTHCARE PROVIDERS & SERVICES 1,552
================================================================
HOTELS, RESTAURANTS & LEISURE [1.7%]
Starbucks* 7,200 372
Yum! Brands 5,100 264
----------------------------------------------------------------
TOTAL HOTELS, RESTAURANTS & LEISURE 636
================================================================
HOUSEHOLD PRODUCTS [6.2%]
Avon Products 2,600 112
Colgate-Palmolive 2,300 120
Fortune Brands 3,450 278
Gillette 7,900 399
Kimberly-Clark 2,100 138
NBTY* 6,500 163
Procter & Gamble 20,100 1,065
----------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 2,275
================================================================
IT SERVICES [1.9%]
Affiliated Computer Services,
Cl A* 3,100 165
First Data 9,400 370
Paychex 4,800 158
----------------------------------------------------------------
TOTAL IT SERVICES 693
================================================================
INDUSTRIAL CONGLOMERATES [4.3%]
3M 2,600 223
General Electric 37,875 1,366
----------------------------------------------------------------
TOTAL INDUSTRIAL CONGLOMERATES 1,589
================================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
INTERNET SOFTWARE & SERVICES [0.8%]
Yahoo!* 8,800 $ 298
================================================================
MACHINERY [2.5%]
Caterpillar 4,650 425
Danaher 6,100 326
ITT Industries 2,100 189
----------------------------------------------------------------
TOTAL MACHINERY 940
================================================================
MEDIA [0.4%]
Dow Jones 4,300 161
================================================================
OIL & GAS [6.5%]
Exxon Mobil 35,100 2,092
XTO Energy 9,000 296
----------------------------------------------------------------
TOTAL OIL & GAS 2,388
================================================================
PHARMACEUTICALS [7.7%]
Abbott Laboratories 5,595 261
Barr Pharmaceuticals* 3,200 156
Eli Lilly 3,930 205
Forest Laboratories* 7,700 284
Johnson & Johnson 18,164 1,220
Teva Pharmaceutical Industries
ADR 5,600 174
Wyeth 12,150 512
----------------------------------------------------------------
TOTAL PHARMACEUTICALS 2,812
================================================================
PREPACKAGED SOFTWARE [7.5%]
Adobe Systems 3,800 255
Citrix Systems* 8,200 195
Electronic Arts* 1,700 88
Intuit* 5,000 219
Mercury Interactive* 3,300 156
Microsoft 42,730 1,033
Oracle* 43,160 539
Symantec* 13,900 297
----------------------------------------------------------------
TOTAL PREPACKAGED SOFTWARE 2,782
================================================================
REAL ESTATE INVESTMENT TRUST [0.4%]
Simon Property Group 2,400 145
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 11
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
RETAIL [5.7%]
Bed Bath & Beyond* 6,700 $ 245
eBay* 12,800 477
Home Depot 18,300 700
Lowe's 8,800 502
Staples 5,200 164
----------------------------------------------------------------
TOTAL RETAIL 2,088
================================================================
SEMI-CONDUCTORS/INSTRUMENTS [4.8%]
Broadcom, Cl A* 7,900 236
Intel 40,150 933
Maxim Integrated Products 5,800 237
Nvidia* 7,600 180
Texas Instruments 7,400 189
----------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 1,775
================================================================
TELEPHONES & TELECOMMUNICATIONS [0.7%]
Nextel Communications* 3,400 97
Vodafone ADR* 6,400 170
----------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 267
================================================================
THRIFTS & MORTGAGE FINANCE [0.3%]
Countrywide Financial 3,900 127
================================================================
TOTAL COMMON STOCK
(Cost $33,429) 35,793
===========================================================
CASH EQUIVALENTS [2.6%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I 919,067 919
SEI Daily Income Trust,
Prime Obligation Fund,
Cl I 42,218 42
----------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $961) 961
===========================================================
TOTAL INVESTMENTS [99.6%]
(Cost $34,390) 36,754
===========================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES:
Payable for Fund Shares Redeemed $ (34)
Income Distributions Payable (21)
Investment Advisory Fees Payable (20)
Shareholder Servicing and Distribution
Fees Payable (9)
Administration Fees Payable (2)
Other Assets and Liabilities, Net 224
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [0.4%]
===========================================================
NET ASSETS [100.0%] $ 36,892
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 39,524
Accumulated net realized loss on investments (4,996)
Net unrealized appreciation on investments 2,364
----------------------------------------------------------------
NET ASSETS $ 36,892
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($29,970,876 / 4,217,514 shares) $ 7.11
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($6,921,368 / 983,489 shares) $ 7.04
================================================================
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 12
SCHEDULE OF INVESTMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Consumer Discretionary 29.6%
Industrials 20.4%
Financials 12.9%
Information Technology 10.6%
Consumer Staples 7.1%
Short-Term Investments 5.5%
Corporate Bonds 4.1%
Materials 3.4%
Healthcare 2.5%
Utilities 2.2%
Preferred Stock 1.7%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
COMMON STOCK [84.0%]
BROADCASTING, NEWSPAPERS & ADVERTISING [15.4%]
Advo 38,000 $ 1,423
Cox Radio* 90,850 1,527
Cumulus Media* 108,050 1,540
Emmis Communications* 77,400 1,488
Fisher Communications* 30,000 1,551
Lodgenet Entertainment* 25,100 473
SBS Broadcasting* 75,000 3,349
----------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS
& ADVERTISING 11,351
================================================================
BUSINESS SERVICES [12.9%]
Adesa* 68,400 1,598
Arbitron* 34,000 1,459
Deluxe 36,650 1,461
Gartner, Cl B* 136,100 1,272
Hilb Rogal & Hobbs 15,000 537
NDCHealth 109,000 1,742
Watson Wyatt 51,300 1,395
----------------------------------------------------------------
TOTAL BUSINESS SERVICES 9,464
================================================================
CHEMICALS [1.9%]
Compass Minerals International 54,900 1,397
================================================================
CONSUMER PRODUCTS & SERVICES [5.0%]
Central Garden & Pet* 32,250 1,415
Coinstar* 44,660 947
RH Donnelley* 23,400 1,359
----------------------------------------------------------------
TOTAL CONSUMER PRODUCTS & SERVICES 3,721
================================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
DATA PROCESSING [1.8%]
Certegy 37,600 $ 1,302
================================================================
DIVERSIFIED MANUFACTURING [2.0%]
EnPro Industries* 53,000 1,458
================================================================
ELECTRICAL PRODUCTS [6.3%]
GrafTech International* 326,900 1,860
Littelfuse* 96,700 2,770
----------------------------------------------------------------
TOTAL ELECTRICAL PRODUCTS 4,630
================================================================
FOOD, BEVERAGE & TOBACCO [2.1%]
Ralcorp Holdings 32,800 1,553
================================================================
INSURANCE [11.5%]
Alleghany* 10,180 2,820
Conseco* 140,000 2,859
Fairfax Financial Holdings 9,300 1,390
White Mountains Insurance
Group 2,300 1,399
----------------------------------------------------------------
TOTAL INSURANCE 8,468
================================================================
MACHINERY [3.3%]
Ametek 9,800 395
Franklin Electric 19,400 732
IDEX 31,800 1,283
----------------------------------------------------------------
TOTAL MACHINERY 2,410
================================================================
PAPER & PAPER PRODUCTS [3.2%]
Sealed Air* 45,500 2,363
================================================================
PREPACKAGING SOFTWARE [2.0%]
PLATO Learning* 189,400 1,477
================================================================
PRINTING & PUBLISHING [2.0%]
Dow Jones 40,300 1,506
================================================================
RETAIL [6.7%]
IHOP 26,480 1,263
Triarc, Cl B 169,800 2,348
Whitehall Jewellers* 184,600 1,311
----------------------------------------------------------------
TOTAL RETAIL 4,922
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 13
SCHEDULE OF INVESTMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND (CONCLUDED)
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
TRANSPORTATION SERVICES [3.1%]
Sea Containers, Cl A 125,200 $ 2,286
================================================================
TRAVEL & LEISURE [2.7%]
Intrawest 104,400 1,997
================================================================
UTILITIES [2.1%]
Sierra Pacific Resources* 140,700 1,513
================================================================
TOTAL COMMON STOCK
(Cost $51,746) 61,818
===========================================================
PREFERRED STOCK [1.6%]
ENTERTAINMENT [1.6%]
Six Flags 57,200 1,158
----------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $1,138) 1,158
===========================================================
CORPORATE BONDS [3.9%]
BUSINESS SERVICES [1.1%]
Danka Business
Callable 04/01/05 @ 105
10.000%, 04/01/08 $ 1,000 842
================================================================
FINANCIAL SERVICES [1.4%]
Labranche (A)
Callable 05/15/07 @ 104.75
9.500%, 05/15/09 1,000 1,005
================================================================
MEDICAL PRODUCTS & SERVICES [1.4%]
NDCHealth
10.500%, 12/01/12 1,000 1,028
================================================================
TOTAL CORPORATE BONDS
(Cost $3,016) 2,875
===========================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
REPURCHASE AGREEMENT (C) [5.2%]
Morgan Stanley,
2.000%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price $3,801,932
(collateralized by U.S. Treasury
Bills, par value $5,199,631,
4.250% (B), 01/15/10; with
total market value $3,877,701) $ 3,802 $ 3,802
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $3,802) 3,802
===========================================================
TOTAL INVESTMENTS [94.7%]
(Cost $59,702) $ 69,653
===========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $73,535,114.
* NON-INCOME PRODUCING SECURITY
(A) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT
OF 1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2005, THE
VALUE OF THESE SECURITIES AMOUNTED TO APPROXIMATELY $1,005,000,
REPRESENTING 1.4% OF THE NET ASSETS OF THE FUND.
(B) THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.
(C) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 14
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Software Publishers 22.2%
Computer & Peripheral Equipment Manufacturing 21.3%
Semiconductor & Other Electronic Component Manufacturing 18.1%
Communications Equipment Manufacturing 13.1%
Computer Systems Design & Related Services 7.4%
Information Services 4.0%
Navigational/Measuring/Medical/Control Instruments Manufacturing 3.9%
Data Processing Services 2.9%
Short-Term Investments 2.4%
Telecommunications 2.3%
Electronic Shopping & Mail-Order Houses 1.6%
Other Electrical Equipment & Components 0.8%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
COMMON STOCK [97.7%]
COMMUNICATIONS EQUIPMENT
MANUFACTURING [13.8%]
Cisco Systems* 5,305 $ 95
Harris 1,000 33
Lucent Technologies* 4,500 12
Motorola 2,400 36
Nokia, ADR* 1,650 25
Qualcomm 2,300 84
Scientific-Atlanta 425 12
Sony, ADR 400 16
Viasat* 525 10
----------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT
MANUFACTURING 323
================================================================
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING [21.3%]
Dell* 3,275 126
EMC-Mass* 4,505 56
Hewlett-Packard 4,723 104
IBM 1,400 128
Network Appliance* 900 25
Sandisk* 800 22
Symbol Technologies 1,000 14
Western Digital* 1,750 22
----------------------------------------------------------------
TOTAL COMPUTER & PERIPHERAL EQUIPMENT MANUFACTURING 497
================================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES [7.4%]
Anteon International* 400 $ 16
Autodesk 1,000 30
Avid Technology* 200 11
Cerner* 200 11
Check Point Software
Technologies* 450 10
Cognizant Technology
Solutions, Cl A* 800 37
Digitas* 1,400 14
Intergraph* 525 15
Manhattan Associates* 500 10
Open Solutions* 475 9
SYKES Enterprises* 1,500 10
----------------------------------------------------------------
TOTAL COMPUTER SYSTEMS DESIGN &
RELATED SERVICES 173
================================================================
DATA PROCESSING SERVICES [2.8%]
Acxiom 500 10
Affiliated Computer Services,
Cl A* 425 23
First Data 850 33
----------------------------------------------------------------
TOTAL DATA PROCESSING SERVICES 66
================================================================
ELECTRONIC SHOPPING &
MAIL-ORDER HOUSES [1.6%]
Agile Software* 1,500 11
Amazon.Com* 400 14
eBay* 325 12
----------------------------------------------------------------
TOTAL ELECTRONIC SHOPPING &
MAIL-ORDER HOUSES 37
================================================================
INFORMATION SERVICES [4.0%]
Avocent* 400 10
Juniper Networks* 842 19
RSA Security* 700 11
WebEx Communications* 625 13
Yahoo!* 1,200 41
----------------------------------------------------------------
TOTAL INFORMATION SERVICES 94
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 15
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING [3.9%]
General Dynamics 175 $ 19
L-3 Communications Holdings 300 21
Microchip Technology 750 20
Raytheon 475 18
Varian* 375 14
----------------------------------------------------------------
TOTAL NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING 92
================================================================
OTHER ELECTRICAL EQUIPMENT & COMPONENT MANUFACTURING [0.8%]
Corning* 1,600 18
================================================================
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING [18.2%]
Aeroflex* 1,000 9
Analog Devices 300 11
Broadcom, Cl A* 800 24
Diodes* 550 15
Intel 4,950 115
Jabil Circuit* 850 24
Linear Technology 375 14
Maxim Integrated Products 900 37
MEMC Electronic Materials* 1,400 19
Microsemi* 700 11
Nvidia* 750 18
Omnivision Technologies* 800 12
Sanmina-SCI* 1,150 6
Taiwan Semiconductor
Manufacturing, ADR* 1,711 15
Texas Instruments 2,900 74
Xilinx 700 20
----------------------------------------------------------------
TOTAL SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING 424
================================================================
DESCRIPTION SHARES VALUE (000)
- -------------------------------------------------------------------
SOFTWARE PUBLISHERS [22.3%]
Adobe Systems 650 $ 44
Citrix Systems* 1,125 27
Electronic Arts* 200 10
Hyperion Solutions* 375 16
Intuit* 575 25
McAfee* 975 22
Mercury Interactive* 550 26
Microsoft 8,050 195
Oracle* 5,815 73
Packeteer* 1,050 16
SAP, ADR* 340 14
Symantec* 1,900 40
Take-Two Interactive Software* 325 13
----------------------------------------------------------------
TOTAL SOFTWARE PUBLISHERS 521
================================================================
TELECOMMUNICATIONS [1.6%]
Adtran 600 11
J2 Global Communications* 450 15
Tekelec* 750 12
----------------------------------------------------------------
TOTAL TELECOMMUNICATIONS 38
================================================================
TOTAL COMMON STOCK
(Cost $2,364) 2,283
===========================================================
CASH EQUIVALENTS [2.4%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I 45,910 46
SEI Daily Income Trust,
Prime Obligation Fund,
Cl I 10,000 10
----------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $56) 56
===========================================================
TOTAL INVESTMENTS [100.1%]
(Cost $2,420) 2,339
===========================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 16
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES:
Investment Advisory Fees Payable $ (2)
Shareholder Servicing and Distribution
Fees Payable (1)
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [-0.1%] (3)
===========================================================
NET ASSETS [100.0%] $ 2,336
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 4,057
Undistributed net investment income 14
Accumulated net realized loss on
investments (1,654)
Net unrealized depreciation on
investments (81)
----------------------------------------------------------------
NET ASSETS $ 2,336
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($1,026,133 / 279,332 shares) $ 3.67
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($1,310,171 / 361,209 shares) $ 3.63
================================================================
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 17
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CORPORATE BOND FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Financials 49.9%
Industrials 32.3%
Asset-Backed 4.5%
Utilities 3.6%
Mortgage Related 3.6%
U.S. Treasury Obligations 2.8%
Short-Term Investment 1.8%
Government Bonds 0.9%
Transportation 0.6%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
CORPORATE BONDS [85.9%]
AIR TRANSPORTATION [0.6%]
Federal Express, Ser A2
7.890%, 09/23/08 $ 310 $ 323
================================================================
AUTOMOTIVE [4.4%]
DaimlerChrysler N.A. Holdings
4.750%, 01/15/08 435 433
Ford Motor Credit
7.250%, 10/25/11 400 395
General Motors Acceptance
7.750%, 01/19/10 500 480
Toyota Motor Credit
4.250%, 03/15/10 1,000 986
----------------------------------------------------------------
TOTAL AUTOMOTIVE 2,294
================================================================
BANKS [12.2%]
Bank of America
7.500%, 09/15/06 500 525
7.125%, 09/15/06 500 522
Bankers Trust
7.250%, 10/15/11 500 559
Crestar Finance
6.500%, 01/15/08 1,035 1,088
Deutsche Bank
7.500%, 04/25/09 500 551
Union Planters Bank
5.125%, 06/15/07 1,215 1,235
US Bancorp
6.875%, 09/15/07 350 370
Wachovia
7.125%, 10/15/06 100 105
6.875%, 09/15/05 500 507
Washington Mutual
4.625%, 04/01/14 460 435
Wells Fargo
7.250%, 08/24/05 250 253
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Wells Fargo, Ser F, MTN
6.500%, 06/01/05 $ 125 $ 126
----------------------------------------------------------------
TOTAL BANKS 6,276
================================================================
BEAUTY PRODUCTS [1.7%]
Avon Products
7.150%, 11/15/09 800 884
================================================================
BROADCASTING, NEWSPAPERS & ADVERTISING [0.8%]
Clear Channel Communications
4.900%, 05/15/15 450 406
================================================================
CABLE/MEDIA [5.6%]
AOL Time Warner
6.750%, 04/15/11 395 427
Comcast Cable Communications
Holdings
8.375%, 03/15/13 400 475
News America Holdings
9.250%, 02/01/13 450 562
Viacom
7.750%, 06/01/05 1,000 1,006
Walt Disney
5.500%, 12/29/06 410 418
----------------------------------------------------------------
TOTAL CABLE/MEDIA 2,888
================================================================
CHEMICALS [0.4%]
Praxair
6.625%, 10/15/07 200 209
================================================================
COMPUTER SYSTEM DESIGN & SERVICES [1.7%]
IBM
4.375%, 06/01/09 900 895
================================================================
ELECTRICAL PRODUCTS [0.2%]
Emerson Electric
6.300%, 11/01/05 100 101
================================================================
ELECTRICAL SERVICES [3.6%]
American Electric Power
5.250%, 06/01/15 435 431
Iowa Electric Light & Power
6.000%, 10/01/08 200 209
Wisconsin Power & Light, Ser Y
7.600%, 07/01/05 100 101
WPS Resources
7.000%, 11/01/09 1,000 1,092
----------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 1,833
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 18
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CORPORATE BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
FINANCIAL SERVICES [14.4%]
Citigroup
7.250%, 10/01/10 $ 1,000 $ 1,114
Countrywide Home Loans
5.625%, 07/15/09 155 159
2.875%, 02/15/07 900 877
Countrywide Home Loans,
Ser L, MTN
4.000%, 03/22/11 875 828
General Electric Capital
6.000%, 06/15/12 1,500 1,598
General Electric Capital,
Ser A, MTN
6.875%, 11/15/10 250 274
International Lease Finance
5.750%, 02/15/07 1,000 1,026
MBNA
4.625%, 09/15/08 410 408
National Rural Utilities,
Ser C, MTN
7.250%, 03/01/12 1,000 1,130
----------------------------------------------------------------
TOTAL FINANCIAL SERVICES 7,414
================================================================
FOOD & BEVERAGE [2.7%]
General Mills
2.625%, 10/24/06 410 401
Pepsico
3.200%, 05/15/07 1,000 982
----------------------------------------------------------------
TOTAL FOOD & BEVERAGE 1,383
================================================================
FOREIGN GOVERNMENTS [0.9%]
United Mexican States
5.875%, 01/15/14 450 447
================================================================
INSURANCE [6.4%]
Aflac
6.500%, 04/15/09 1,000 1,066
Allstate
7.200%, 12/01/09 1,015 1,122
AXA Financial
7.750%, 08/01/10 1,000 1,131
----------------------------------------------------------------
TOTAL INSURANCE 3,319
================================================================
INVESTMENT BANKER/BROKER DEALER [9.7%]
Goldman Sachs Group
5.150%, 01/15/14 1,000 985
Jefferies Group
5.500%, 03/15/16 665 651
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
JPMorgan Chase
7.125%, 06/15/09 $ 675 $ 735
Legg Mason
6.500%, 02/15/06 950 967
Lehman Brothers Holdings
8.250%, 06/15/07 1,100 1,191
Merrill Lynch
4.000%, 11/15/07 500 497
----------------------------------------------------------------
TOTAL INVESTMENT BANKER/BROKER DEALER 5,026
================================================================
MACHINERY [1.9%]
Caterpillar
9.000%, 04/15/06 620 650
Caterpillar Finance, Ser F, MTN
4.690%, 04/25/05 310 310
----------------------------------------------------------------
TOTAL MACHINERY 960
================================================================
PETROLEUM & FUEL PRODUCTS [4.0%]
ChevronTexaco
8.625%, 06/30/10 200 237
ConocoPhillips
6.375%, 03/30/09 305 326
Duke Capital
5.500%, 03/01/14 625 623
Union Oil of California,
Ser C, MTN
7.900%, 04/18/08 800 867
----------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 2,053
================================================================
REAL ESTATE INVESTMENT TRUST [4.1%]
Equity Residential Properties
7.250%, 06/15/05 1,000 1,007
Kimco Realty, MTN
6.960%, 07/16/07 1,000 1,060
Kimco Realty, Ser B, MTN
7.860%, 11/01/07 67 73
----------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUST 2,140
================================================================
RETAIL [4.4%]
Kohl's
6.300%, 03/01/11 1,000 1,075
Kroger
5.500%, 02/01/13 450 456
McDonald's, Ser E, MTN
4.240%, 12/13/06 750 745
----------------------------------------------------------------
TOTAL RETAIL 2,276
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 19
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CORPORATE BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS [5.4%]
AT&T Wireless Services
8.125%, 05/01/12 $ 400 $ 467
Deutsche Telekom International
Finance
5.250%, 07/22/13 435 436
GTE Florida, Ser D
6.250%, 11/15/05 200 203
Southwestern Bell
6.625%, 07/15/07 750 786
Sprint Capital
8.375%, 03/15/12 350 409
Verizon Communications
6.360%, 04/15/06 500 511
----------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,812
================================================================
WASTE DISPOSAL [0.8%]
Waste Management
6.875%, 05/15/09 375 404
================================================================
TOTAL CORPORATE BONDS
(Cost $44,346) 44,343
===========================================================
ASSET-BACKED [4.5%]
Capital Auto Receivables Asset
Trust, Ser 2003-2, Cl A4A
1.960%, 01/15/09 975 943
Capital Auto Receivables Asset
Trust, Ser 2004-1, Cl A4
2.640%, 11/17/08 750 727
Countrywide Asset-Backed
Certificates, Ser 2004-BC3,
Cl 2A
3.030%, 08/25/34 628 630
----------------------------------------------------------------
TOTAL ASSET-BACKED
(Cost $2,353) 2,300
===========================================================
MORTGAGE RELATED [3.5%]
Residential Asset Mortgage
Products, Ser 2003-RS5, Cl AI4
3.700%, 09/25/31 770 759
Residential Asset Mortgage
Products, Ser 2003-RS6, Cl AI3
3.080%, 12/25/28 1,025 1,014
Washington Mutual,
Ser 2003-AR10, Cl A3A
3.530%, 10/25/33 52 52
----------------------------------------------------------------
TOTAL MORTGAGE RELATED
(Cost $1,837) 1,825
===========================================================
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- -------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS [2.7%]
U.S. Treasury Notes
4.250%, 11/15/13 $ 445 $ 438
4.250%, 08/15/14 1,000 981
----------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,470) 1,419
===========================================================
CASH EQUIVALENT [1.8%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I 910,683 911
----------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $911) 911
===========================================================
TOTAL INVESTMENTS [98.4%]
(Cost $50,917) 50,798
===========================================================
OTHER ASSETS AND LIABILITIES:
Payable for Fund Shares Redeemed (82)
Income Distributions Payable (134)
Investment Advisory Fees Payable (18)
Shareholder Servicing and Distribution
Fees Payable (11)
Administration Fees Payable (3)
Other Assets and Liabilities, Net 1,047
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [1.6%] 799
===========================================================
NET ASSETS [100.0%] $ 51,597
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 51,724
Accumulated net realized loss on investments (8)
Net unrealized depreciation on investments (119)
----------------------------------------------------------------
NET ASSETS $ 51,597
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($50,166,137 / 4,875,963 shares) $ 10.29
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($1,431,257 / 139,036 shares) $ 10.29
================================================================
CL -- CLASS
MTN -- MEDIUM TERM NOTE
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 20
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
U.S. Government Agency Obligations 56.0%
U.S. Treasury Obligations 24.8%
U.S. Government Mortgage-Backed Obligations 17.3%
Short-Term Investments 1.9%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS [55.1%]
FFCB
5.120%, 04/26/05 $ 400 $ 401
FHLB
7.250%, 05/13/05 1,400 1,407
6.500%, 11/15/05 100 102
4.875%, 08/15/05 500 503
2.250%, 12/15/05 1,950 1,933
2.000%, 12/02/05 1,000 990
FHLMC
6.990%, 07/26/06 150 156
5.250%, 01/15/06 425 430
4.250%, 06/15/05 1,550 1,554
4.250%, 05/04/09 1,500 1,485
3.800%, 06/28/07 475 473
FNMA
6.000%, 12/15/05 91 93
4.250%, 05/15/09 2,000 1,988
4.000%, 12/15/08 2,000 1,971
2.500%, 06/28/06 350 344
----------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $13,958) 13,830
===========================================================
U.S. TREASURY OBLIGATIONS [24.4%]
U.S. Treasury Notes
5.750%, 11/15/05 1,635 1,659
5.500%, 02/15/08 600 626
4.250%, 11/15/13 2,125 2,092
3.875%, 01/15/09 1,151 1,269
2.750%, 08/15/07 500 488
----------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $6,188) 6,134
===========================================================
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS [17.0%]
FHLMC, Ser 2480, Cl PD
6.000%, 11/15/31 1,233 1,264
FHLMC, Ser 2544, Cl PG
4.500%, 08/15/16 4 4
FHLMC, Ser 2670, Cl QP
4.000%, 02/15/27 1,000 971
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- -------------------------------------------------------------------
FHLMC, Ser 2698, Cl BE
4.500%, 11/15/32 $ 1,018 $ 1,002
FHLMC, Ser 2922, Cl JA
4.500%, 02/15/20 512 498
FNMA, Ser 1993-225, Cl UB
6.500%, 12/25/23 35 36
FNMA, Ser 2003-134, Cl ME
4.500%, 06/25/33 167 164
FNMA, Ser 2003-34, Cl GJ
4.000%, 02/25/33 345 335
----------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $4,315) 4,274
===========================================================
CASH EQUIVALENT [1.8%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I 459,432 459
----------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $459) 459
===========================================================
TOTAL INVESTMENTS [98.3%]
(Cost $24,920) 24,697
===========================================================
OTHER ASSETS AND LIABILITIES:
Payable for Fund Shares Redeemed (46)
Income Distributions Payable (42)
Investment Advisory Fees Payable (7)
Shareholder Servicing and Distribution
Fees Payable (5)
Administration Fees Payable (1)
Other Assets and Liabilities, Net 522
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [1.7%] 421
===========================================================
NET ASSETS [100.0%] $ 25,118
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 25,369
Accumulated net realized loss on investments (28)
Net unrealized depreciation on investments (223)
----------------------------------------------------------------
NET ASSETS $25,118
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 21
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND (CONCLUDED)
DESCRIPTION VALUE
- -------------------------------------------------------------------
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($24,750,424 / 2,375,390 shares) $ 10.42
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($367,267 / 35,162 shares) $ 10.45
================================================================
CL -- CLASS
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 22
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
General Revenue 13.7%
Power 12.0%
General Obligation 11.5%
Facilities 10.8%
Water 9.0%
Development 8.6%
Higher Education 8.5%
Utilities 8.2%
School District 7.3%
Transportation 5.1%
Education 2.3%
Short-Term Investments 2.3%
Medical 0.7%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
MUNICIPAL BONDS [97.8%]
ALABAMA [1.3%]
Jefferson County, Sewer Authority,
Ser B-8, RB, FSA
Callable 02/01/10 @ 100
5.250%, 02/01/14 $ 250 $ 268
================================================================
CALIFORNIA [80.8%]
Anaheim, Public Finance Authority,
Convention Center Project,
Ser A, RB, AMBAC
5.500%, 08/01/12 150 168
Anaheim, Public Finance Authority,
Electric System Distribution
Facilities, RB, AMBAC
Mandatory Put 10/01/05 @ 100
4.625%, 10/01/27 230 232
Berkeley, Ser C, GO, MBIA
Callable 09/01/05 @ 102
5.000%, 09/01/10 95 98
Beverly Hills, Unified School
District Authority, Ser B, GO
Callable 06/01/08 @ 101
4.700%, 06/01/13 50 52
Big Bear Lake, Water Authority,
RB, MBIA
6.000%, 04/01/11 200 228
Burbank, Public Financing Authority,
Golden State Redevelopment
Project, Ser A, RB, AMBAC
Callable 12/01/13 @ 100
5.250%, 12/01/18 175 188
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
California State, Bay Area Toll
Authority, San Francisco Bay Area
Project, Ser B, RB, AMBAC (C)
2.260%, 04/01/29 $ 100 $ 100
California State, Coast Community
College District, Election 2002
Project, Ser A, RB, MBIA
Callable 08/01/13 @ 100
5.000%, 08/01/16 250 267
California State, Department of
Water Resource Center,
Ser A, RB, MBIA
5.000%, 05/01/07 200 209
California State, Economic
Recovery Authority, Ser B, GO
Mandatory Put 07/01/08 @ 100
3.500%, 07/01/23 600 606
California State, Educational
Facilities Authority, Pooled
College and University Projects,
Ser A, RB
4.300%, 04/01/09 100 103
California State, Educational
Facilities Authority, University of
San Francisco, RB, MBIA
6.000%, 10/01/08 300 331
California State, GO
4.750%, 06/01/07 100 104
California State, GO
Callable 09/01/09 @ 101
5.500%, 09/01/19 250 270
California State, GO
Callable 09/01/10 @ 100
5.250%, 09/01/18 200 213
California State, GO
Callable 10/01/10 @ 100
5.250%, 10/01/18 300 319
California State, GO
Callable 02/01/12 @ 100
5.000%, 02/01/18 175 182
California State, Health Facilities
Finance Authority, Presbyterian
Hospital, RB, MBIA
5.500%, 05/01/07 150 158
California State, Imperial Irrigation
District, Public Electric Project, RB
4.250%, 11/01/06 250 257
California State, Infrastructure &
Economic Authority, Bay Area
Toll Bridges Project,
Ser A, RB, FSA
Callable 07/01/13 @ 100
5.250%, 07/01/18 125 136
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 23
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
California State, Public Works
Board Lease, California State
University, Ser C, RB
5.000%, 10/01/07 $ 100 $ 105
California State, Public Works
Board Lease, Department of
Corrections Project, RB
5.250%, 01/01/13 150 164
California State, Public Works
Board Lease, Department of
Corrections Project,
Ser B, RB, MBIA
Callable 09/01/08 @ 101
5.000%, 09/01/21 100 104
California State, Public Works
Board Lease, Department of
Corrections-Ten Administration,
Ser A, RB, AMBAC
Callable 03/01/12 @ 100
5.250%, 03/01/18 155 164
California State, Public Works
Board Lease, Trustees California
State University, Ser A, RB
Callable 10/01/08 @ 101
5.250%, 10/01/11 100 106
California State, State Center
Community College, Election
2002 Project, Ser A, GO, MBIA
Callable 08/01/14 @ 100
5.250%, 08/01/20 205 221
California State, University of
California, Limited Project,
Ser A, RB, MBIA
5.000%, 05/15/14 250 269
California State, University of
California, Ser K, RB, MBIA
Callable 09/01/08 @ 101
5.000%, 09/01/17 150 158
California Statewide, Communities
Development Authority,
Ser B-2, RB, XLCA
4.000%, 11/15/06 400 408
Coachella Valley, Water District
Authority, Flood Control
Project, COP, AMBAC
Callable 10/01/07 @ 102
5.000%, 10/01/11 250 265
Corona, Public Financing Authority,
City Hall Project, Ser B, RB
Callable 09/01/12 @ 100
5.250%, 09/01/16 350 379
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Culver City, Redevelopment
Finance Authority, TA, AMBAC
Sink Date 11/01/09 @ 100
5.500%, 11/01/14 $ 75 $ 83
El Dorado County, Public
Financing Authority, RB, FGIC
5.100%, 02/15/06 100 102
Evergreen School District,
Ser C, GO, FGIC
Callable 09/01/08 @ 101
5.250%, 09/01/13 200 214
Fruitvale, School District, GO, FSA
Callable 08/01/09 @ 102
5.000%, 08/01/19 200 210
Hemet, Unified School District,
Nutrition Center Project
COP, FSA
Callable 04/01/07 @ 102
5.750%, 04/01/17 250 268
Irvine, Improvement Board, Act
1915 Project, District #93-14,
SAB (B) (C)
2.240%, 09/02/25 395 395
Long Beach, Ser B, RB, FGIC
Callable 05/15/14 @ 100
5.000%, 05/15/16 150 161
Los Angeles County, Department
of Water & Power, Power Systems
Project, Ser A-A-1, RB
Callable 07/01/11 @ 100
5.000%, 07/01/19 450 467
Los Angeles County, Public
Works Finance Authority,
Ser B, RB, MBIA
Callable 09/01/06 @ 102
5.250%, 09/01/14 200 211
Los Angeles County, Sanitation
Districts Financing Authority,
Capital Project, Ser A, RB, FSA
Callable 10/01/13 @ 100
5.000%, 10/01/15 345 371
Los Angeles, Community
Redevelopment Agency,
Bunker Hill Project,
Ser A, RB, FSA
Callable 12/01/14 @ 100
5.250%, 12/01/16 195 212
Los Angeles, Harbor Development
Project, Ser C, RB
Callable 11/01/06 @ 101
5.125%, 11/01/11 180 188
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 24
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Los Angeles, Property Tax Project,
Ser A, GO, MBIA
4.000%, 09/01/09 $ 250 $ 260
Los Angeles, Sanitation Equipment
Authority, Ser A, RB, MBIA
4.000%, 02/01/07 100 102
Los Angeles, Ser A, GO, MBIA
3.000%, 09/01/05 250 251
Modesto, Irrigation District
Financing Authority, Domestic
Water Project, Ser D, RB, AMBAC
Callable 09/01/08 @ 101
5.000%, 09/01/12 100 107
M-S-R Public Power,
Ser G, RB, MBIA
Callable 07/01/07 @ 101
5.250%, 07/01/11 100 105
Oakland, Redevelopment Agency,
Central District Redevelopment,
TA, AMBAC
6.000%, 02/01/07 300 318
Oakland, State Building Authority,
Elihu M Harris Project,
Ser A, RB, AMBAC
Callable 04/01/08 @ 101
5.500%, 04/01/14 100 107
Orange County, Recovery
Certificate Authority, Ser A,
COP, MBIA
6.000%, 07/01/06 250 261
Pasadena, Electric Improvements
Authority, RB, FSA
4.500%, 06/01/07 160 166
Pinole, Redevelopment Agency
Project, TA, FSA
Callable 08/01/09 @ 101
5.250%, 08/01/14 100 108
Poway, Redevelopment Agency
Project, TA, AMBAC
Callable 12/15/11 @ 101
5.500%, 12/15/14 150 166
Riverside, Water Authority, RB
Callable 10/01/08 @ 101
5.375%, 10/01/12 100 108
Sacramento County, Cogeneration
Authority, Relief Cogeneration
Project, RB, MBIA
Callable 08/15/08 @ 101
5.000%, 07/01/16 475 502
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Sacramento County, Sanitation
District Funding Authority,
RB, ETM
Callable 12/01/05 @ 100
5.000%, 12/01/07 $ 100 $ 105
Sacramento, City Financing
Authority, RB
5.000%, 07/01/10 100 107
Sacramento, City Unified
School District, Ser A, GO, FSA
4.250%, 07/01/09 75 79
Sacramento, Municipal Utility
District, Ser R, RB, MBIA
5.000%, 08/15/19 425 450
Saddleback, Community College
District, 1996 Capital Improvement
Financing Project, COP, MBIA
Callable 06/01/06 @ 102
5.500%, 06/01/15 500 524
San Diego County, Edgemoor &
Regional Systems Projects,
COP, AMBAC
Callable 02/01/15 @ 100
5.000%, 02/01/18 500 532
San Diego County, North County
Regional Center for Expansion,
COP, AMBAC
Callable 11/15/06 @ 102
5.250%, 11/15/14 100 106
San Diego, University School
District, Capital Appreciation-
Election 1998 Project,
Ser D, GO, FGIC
Callable 07/01/12 @ 101
5.250%, 07/01/24 135 149
San Diego, University School
District, Election 1998 Project,
Ser E, GO, FSA
Callable 07/01/13 @ 101
5.250%, 07/01/16 100 110
San Francisco (City & County),
Building Authority, Department
of General Services & Leasing,
Ser A, RB
5.000%, 10/01/13 400 428
San Francisco (City & County),
Public Utility Authority,
Ser A, RB, MBIA
Callable 11/01/06 @ 101.5
5.000%, 11/01/17 375 391
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 25
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
San Jose, University School
District, Ser A, GO, FSA
Callable 08/01/11 @ 101
5.375%, 08/01/19 $ 150 $ 163
San Mateo County, Transit District
Authority, Ser A, RB, MBIA
Callable 06/01/08 @ 101
5.000%, 06/01/14 400 424
Sanger, Public Financing
Authority, Utilites Systems
Financing Project, Ser A, RB,
AMBAC,
Pre-Refunded @ 102 (A)
5.700%, 01/01/22 325 339
Santa Monica, Public Safety
Facilities Project, RB,
Callable 07/01/09 @ 101
5.250%, 07/01/14 100 108
Solano County, COP, MBIA
Callable 11/01/12 @ 100
5.250%, 11/01/14 100 109
Southern California, Metropolitan
Water District Authority,
Ser B-3, RB (C)
2.240%, 07/01/35 300 300
Southern California, Publiic
Power Authority, Southern
Transmission Project,
Sub-Ser A, RB, FSA
Callable 07/01/12 @ 100
5.250%, 07/01/16 200 216
Sweetwater, Water Authority,
RB, AMBAC
5.250%, 04/01/10 500 532
Wiseburn, School District,
Ser A, GO, FGIC
4.200%, 08/01/07 125 129
----------------------------------------------------------------
TOTAL CALIFORNIA 17,308
================================================================
COLORADO [3.1%]
Fremont Custer & El Paso
Counties, School District
Number 02, GO, FSA
Callable 12/01/13 @ 100
5.250%, 12/01/18 200 216
Lakewood, COP, AMBAC
Callable 12/01/10 @ 100
5.500%, 12/01/12 400 438
----------------------------------------------------------------
TOTAL COLORADO 654
================================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
FLORIDA [1.1%]
Miami-Dade County, School
Board, COP, FGIC
Callable 10/01/14 @ 100
5.250%, 10/01/18 $ 215 $ 232
================================================================
GEORGIA [1.0%]
Georgia State, Metropolitan
Atlanta Rapid Transportation
Authority, Second Indenture
Project, Ser A, RB, MBIA
6.250%, 07/01/07 200 214
================================================================
MICHIGAN [1.2%]
Michigan State, Building
Authority, Facilities Project,
Ser II, RB,
Pre-Refunded @ 101 (A)
5.000%, 10/15/07 250 265
================================================================
TEXAS [1.9%]
Harris County, Flood Control
District, Ser A, GO
5.000%, 10/01/06 300 310
San Angelo, Water Works &
Sewer System Authority,
Refunding & Improvements
Projects, RB, FSA
Callable 04/01/11 @ 100
5.250%, 04/01/19 100 106
----------------------------------------------------------------
TOTAL TEXAS 416
================================================================
NEVADA [0.9%]
Clark County, Ser B, GO
Pre-Refunded @ 101 (A)
6.000%, 12/01/10 175 200
================================================================
WASHINGTON [1.2%]
King County, School District
Number 414, GO, MBIA
Callable 12/01/12 @ 100
5.750%, 12/01/14 225 253
================================================================
PUERTO RICO [5.3%]
Puerto Rico, Electric Power
Authority, Power Project,
Ser CC, RB, MBIA
Callable 07/01/07 @ 101.5
5.250%, 07/01/09 100 106
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 26
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Puerto Rico, Electric Power
Authority, Power Project,
Ser DD, RB, FSA, ETM
5.000%, 07/01/05 $ 200 $ 201
Puerto Rico, Electric Power
Authority, Power Project,
Ser X, RB
Pre-Refunded @ 102 (A)
6.000%, 07/01/05 350 360
Puerto Rico, Municipal Finance
Agency, Ser A, RB, FSA
Callable 07/01/07 @ 101.5
5.250%, 07/01/10 130 138
Puerto Rico, Public Buildings
Authority, Government
Facilities Project, Ser J,
RB, AMBAC
Callable 07/01/12 @ 100
5.000%, 07/01/36 300 323
----------------------------------------------------------------
TOTAL PUERTO RICO 1,128
================================================================
TOTAL MUNICIPAL BONDS
(Cost $21,021) 20,938
===========================================================
CASH EQUIVALENT [2.3%]
SEI Tax Exempt Trust, California
Tax Exempt Fund, Cl A 492,563 493
----------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $493) 493
===========================================================
TOTAL INVESTMENTS [100.1%]
(Cost $21,514) 21,431
===========================================================
OTHER ASSETS AND LIABILITIES:
Payable for Investment Securities Purchased (260)
Income Distributions Payable (40)
Investment Advisory Fees Payable (3)
Shareholder Servicing and Distribution
Fees Payable (5)
Administration Fees Payable (1)
Other Assets and Liabilities, Net 285
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [-0.1%] (24)
===========================================================
NET ASSETS [100.0%] $ 21,407
================================================================
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 21,475
Accumulated net realized gain on investments 15
Net unrealized depreciation on investments (83)
----------------------------------------------------------------
NET ASSETS $ 21,407
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($19,427,450 / 1,904,162 shares) $ 10.20
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($1,979,986 / 193,565 shares) $ 10.23
================================================================
(A) Pre-Refunded Security -- the maturity date shown is the pre-refunded date.
(B) Securities are held in conjunction with a letter of credit from a major
bank or financial institution.
(C) Floating Rate Security -- the rate reflected on the Statement of Net
Assets is the rate in effect on March 31, 2005.
AMBAC -- American Municipal Bond Assurance Company
Cl -- Class
COP -- Certificate of Participation
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assistance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RB -- Revenue Bond
SAB -- Special Assessment Bond
Ser -- Series
TA -- Tax Allocation
XLCA -- XL Capital Assurance
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 27
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Industrials 79.0%
Financials 6.4%
Utilities 5.2%
Telephone 5.0%
Gas Transmission 2.2%
Transportation 2.0%
Common Stock 0.2%
*Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
CORPORATE BONDS [99.6%]
AEROSPACE & DEFENSE [1.0%]
DRS Technologies
6.875%, 11/01/13 $ 100 $ 100
Esterline Technologies
7.750%, 06/15/13 100 104
L-3 Communications
5.875%, 01/15/15 100 96
Sequa, Ser B
8.875%, 04/01/08 150 157
----------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 457
================================================================
AGRICULTURE [0.4%]
American Rock Salt
9.500%, 03/15/14 150 154
================================================================
AIRLINES [0.4%]
American Airlines, Ser 2001-2
7.800%, 04/01/08 200 183
================================================================
ALUMINUM [0.3%]
Novelis (A)
7.250%, 02/15/15 150 147
================================================================
APPAREL/TEXTILES [0.7%]
Invista (A)
9.250%, 05/01/12 100 110
Levi Strauss (A)
9.750%, 01/15/15 100 98
Warnaco
8.875%, 06/15/13 100 107
----------------------------------------------------------------
TOTAL APPAREL/TEXTILES 315
================================================================
AUTO RENT & LEASE [0.7%]
Nationsrent
9.500%, 10/15/10 100 107
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Rent-way
11.875%, 06/15/10 $ 100 $ 111
United Rentals
7.750%, 11/15/13 100 97
----------------------------------------------------------------
TOTAL AUTO RENT & LEASE 315
================================================================
AUTOPARTS [3.3%]
Accuride (A)
8.500%, 02/01/15 150 147
Collins & Aikman Products
12.875%, 08/15/12 (A) 200 90
10.750%, 12/31/11 250 206
Dura Operating, Ser B
9.000%, 05/01/09 150 118
Group 1 Automotive (A)
8.250%, 08/15/13 100 101
Keystone Automotive Operations
9.750%, 11/01/13 100 100
Metaldyne (A)
10.000%, 11/01/13 100 91
Pep Boys (A)
7.500%, 12/15/14 150 144
Rural (A)
9.875%, 03/15/15 100 103
Stanadyne
10.000%, 08/15/14 100 103
TRW Automotive
11.000%, 02/15/13 98 110
Tenneco Automotive (A)
8.625%, 11/15/14 150 146
----------------------------------------------------------------
TOTAL AUTOPARTS 1,459
================================================================
BROADCASTING, NEWSPAPERS & ADVERTISING [7.8%]
Adelphia Communications, Ser B (C)
10.500%, 07/15/04 100 89
Advanstar Communications
10.750%, 08/15/10 100 111
Bear Creek (A)
9.000%, 03/01/13 100 99
CCO Holdings
8.750%, 11/15/13 250 250
CSC Holdings
7.625%, 07/15/18 100 104
Cablevision Systems (A)
8.000%, 04/15/12 200 205
Charter Communications Holdings
10.000%, 05/15/11 100 77
8.625%, 04/01/09 100 77
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 28
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Coleman Cable (A)
9.875%, 10/01/12 $ 100 $ 102
Echostar DBS (A)
6.625%, 10/01/14 100 97
Entravision Communications
8.125%, 03/15/09 100 104
Fisher Communications
8.625%, 09/15/14 150 160
Frontier Vision Holdings (C)
11.875%, 09/15/07 100 135
General Cable
9.500%, 11/15/10 100 110
Gray Television
9.250%, 12/15/11 100 108
Haights Cross Operating (A)
11.750%, 08/15/11 100 112
Insight Commununications (B)
10.051%, 02/15/11 200 199
Interep National Radio Sales,
Ser B
10.000%, 07/01/08 100 79
Kabel Deutschland (A)
10.625%, 07/01/14 200 221
Mediacom Capital
7.875%, 02/15/11 150 145
Nexstar Finance Holdings (B)
11.269%, 04/01/13 200 157
Olympus Communications,
Ser B (C)
10.625%, 11/15/06 100 133
Paxson Communications (B)
9.679%, 01/15/09 100 93
RH Donnelley (A)
6.875%, 01/15/13 200 198
Salem Communication Holdings,
Ser B
9.000%, 07/01/11 65 70
Telenet Group Holding (B)
11.500%, 06/15/14 150 113
Videotron Ltee
6.875%, 01/15/14 100 101
----------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS &
ADVERTISING 3,449
================================================================
BUILDING & CONSTRUCTION [3.6%]
Ainsworth Lumber
7.250%, 10/01/12 (A) 100 98
6.750%, 03/15/14 100 94
Beazer Homes USA
8.375%, 04/15/12 100 106
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Brand Services
12.000%, 10/15/12 $ 150 $ 166
Dayton Superior
13.000%, 06/15/09 100 90
Goodman Global (A)
7.875%, 12/15/12 200 183
International Utility Structures (C)
10.750%, 02/01/08 100 21
Nortek
8.500%, 09/01/14 200 193
Ply Gem Industries
9.000%, 02/15/12 100 95
RMCC Acquisition (A)
9.500%, 11/01/12 150 147
Tech Olympic USA
7.500%, 03/15/11 200 192
Texas Industries
10.250%, 06/15/11 100 113
William Lyon Homes
10.750%, 04/01/13 100 110
----------------------------------------------------------------
TOTAL BUILDING & CONSTRUCTION 1,608
================================================================
BUSINESS SERVICES [0.6%]
Corrections
7.500%, 05/01/11 100 101
Geo Group
8.250%, 07/15/13 150 153
----------------------------------------------------------------
TOTAL BUSINESS SERVICES 254
================================================================
CHEMICALS [4.2%]
Acetex
10.875%, 08/01/09 150 160
Crompton
9.875%, 08/01/12 100 114
Equistar Chemicals
10.625%, 05/01/11 150 168
FMC
10.250%, 11/01/09 100 111
Huntsman ICI Chemicals
10.125%, 07/01/09 61 63
IMC Global
10.875%, 08/01/13 100 120
IMC Global, Ser B
11.250%, 06/01/11 100 112
Innophos (A)
8.875%, 08/15/14 100 105
Kraton Polymers (A)
8.125%, 01/15/14 200 190
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 29
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Lyondell Chemical
11.125%, 07/15/12 $ 100 $ 115
10.500%, 06/01/13 100 115
NALCO
7.750%, 11/15/11 100 104
PolyOne
10.625%, 05/15/10 100 111
Rhodia
10.250%, 06/01/10 100 109
Rockwood Specialties Group
10.625%, 05/15/11 100 111
Terra Capital
11.500%, 06/01/10 65 75
----------------------------------------------------------------
TOTAL CHEMICALS 1,883
================================================================
CIRCUIT BOARDS [0.2%]
Viasystems
10.500%, 01/15/11 100 99
================================================================
COAL MINING [0.6%]
Alpha Natural Resources (A)
10.000%, 06/01/12 150 168
Foundation PA Coal
7.250%, 08/01/14 100 101
----------------------------------------------------------------
TOTAL COAL MINING 269
================================================================
COMMERCIAL SERVICES [1.0%]
Great Lakes Dredge & Dock
7.750%, 12/15/13 150 125
Iron Mountain
8.625%, 04/01/13 100 101
Salton
12.250%, 04/15/08 150 89
The Brickman Group, Ser B
11.750%, 12/15/09 100 113
----------------------------------------------------------------
TOTAL COMMERCIAL SERVICES 428
================================================================
COMPUTER SYSTEM DESIGN & SERVICES [0.6%]
Unisys
7.875%, 04/01/08 100 100
Xerox
7.625%, 06/15/13 150 157
----------------------------------------------------------------
TOTAL COMPUTERS SYSTEM DESIGN & SERVICES 257
================================================================
CONSUMER PRODUCTS & SERVICES [3.6%]
Amscan Holdings
8.750%, 05/01/14 150 145
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Gregg Appliances (A)
9.000%, 02/01/13 $ 150 $ 142
Johnsondiversey Holdings (B)
10.259%, 05/15/13 200 172
Johnsondiversey, Ser B
9.625%, 05/15/12 150 161
NBTY, Ser B
8.625%, 09/15/07 100 102
Playtex Products
9.375%, 06/01/11 200 208
Prestige Brands
9.250%, 04/15/12 90 95
Sealy Mattress
8.250%, 06/15/14 200 209
Southern States Cooperative (A)
10.500%, 11/01/10 200 208
WMG Holdings (A) (B)
9.500%, 12/15/14 200 138
----------------------------------------------------------------
TOTAL CONSUMER PRODUCTS & SERVICES 1,580
================================================================
CONTAINERS & PACKAGING [3.6%]
Berry Plastics
10.750%, 07/15/12 100 113
Graham Packaging (A)
9.875%, 10/15/14 100 100
Intertape Polymer US
8.500%, 08/01/14 150 147
Newark Group
9.750%, 03/15/14 200 203
Owens-Brockway Glass (A)
6.750%, 12/01/14 100 98
Owens-Illinois
8.100%, 05/15/07 100 103
Plastipak Holdings
10.750%, 09/01/11 100 111
Pliant
13.000%, 06/01/10 100 84
Radnor Holdings
11.000%, 03/15/10 100 74
Solo Cup
8.500%, 02/15/14 150 150
Stone Container
7.375%, 07/15/14 200 198
Tekni-Plex
12.750%, 06/15/10 100 84
US Can
10.875%, 07/15/10 150 158
----------------------------------------------------------------
TOTAL CONTAINERS & PACKAGING 1,623
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 30
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
DIVERSIFIED OPERATIONS [2.8%]
Jacuzzi Brands
9.625%, 07/01/10 $ 150 $ 165
Kansas City Southern
9.500%, 10/01/08 100 109
National Waterworks, Ser B
10.500%, 12/01/12 100 111
Poindexter J.B. (A)
8.750%, 03/15/14 200 199
Reddy Ice Group
8.875%, 08/01/11 100 111
Stena
7.000%, 12/01/16 200 185
TD Funding
8.375%, 07/15/11 100 103
Trinity Industries
6.500%, 03/15/14 200 193
Werner Holdings, Ser A
10.000%, 11/15/07 100 71
----------------------------------------------------------------
TOTAL DIVERSIFIED OPERATIONS 1,247
================================================================
ELECTRICAL PRODUCTS [6.2%]
AES
9.375%, 09/15/10 19 21
9.000%, 05/15/15 (A) 100 110
7.750%, 03/01/14 100 103
Allegheny Energy Supply
7.800%, 03/15/11 200 207
Aquila
7.625%, 11/15/09 100 102
CMS Energy
7.500%, 01/15/09 100 103
Calpine
9.875%, 12/01/11 (A) 100 79
8.500%, 07/15/10 (A) 200 157
8.500%, 02/15/11 100 71
Calpine Generating (D)
8.340%, 04/01/10 200 195
Edison Mission Energy
7.730%, 06/15/09 200 209
Freescale Semiconductors
7.125%, 07/15/14 200 209
Motors & Gears, Ser D
10.750%, 11/15/06 150 138
NRG Energy (A)
8.000%, 12/15/13 156 165
PSE&G Energy Holdings
7.750%, 04/16/07 100 103
Reliant Resources
9.500%, 07/15/13 200 218
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Sanmina-SCI
10.375%, 01/15/10 $ 100 $ 112
Sierra Pacific Resources
8.625%, 03/15/14 200 213
TNP Enterprises, Ser B
10.250%, 04/01/10 150 158
Texas Genco (A)
6.875%, 12/15/14 100 100
----------------------------------------------------------------
TOTAL ELECTRICAL PRODUCTS 2,773
================================================================
ENTERTAINMENT [10.4%]
AMC Entertainment
9.875%, 02/01/12 100 105
9.500%, 02/01/11 72 74
Ameristar Casinos
10.750%, 02/15/09 100 109
Argosy Gaming
7.000%, 01/15/14 200 216
Aztar
9.000%, 08/15/11 100 108
Bluegreen, Ser B
10.500%, 04/01/08 150 152
Bombardier Recreational Products
8.375%, 12/15/13 150 159
Carmike Cinemas
7.500%, 02/15/14 200 196
Cinemark USA
9.000%, 02/01/13 100 108
Circus & Eldorado Joint Venture/
Silver Legacy Capital
10.125%, 03/01/12 150 161
Equinox Holdings
9.000%, 12/15/09 100 105
Gaylord Entertainment
6.750%, 11/15/14 200 190
HMH Properties, Ser B
7.875%, 08/01/08 38 39
Hard Rock Hotel
8.875%, 06/01/13 150 162
Herbst Gaming (A)
8.125%, 06/01/12 150 156
Inn of the Mountain Gods
12.000%, 11/15/10 100 118
Isle of Capri Casinos
7.000%, 03/01/14 200 198
John Q Hammons Hotels, Ser B
8.875%, 05/15/12 100 107
Kerzner International
8.875%, 08/15/11 150 161
Leslie's Poolmart (A)
7.750%, 02/01/13 100 101
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 31
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
MGM Mirage
6.750%, 09/01/12 $ 100 $ 101
MTR Gaming Group, Ser B
9.750%, 04/01/10 200 218
Majestic Star Casino
9.500%, 10/15/10 200 209
Mandalay Resort Group
6.450%, 02/01/06 60 61
Mandalay Resort Group, Ser B
10.250%, 08/01/07 100 109
Mohegan Tribal Gaming Authority
7.125%, 08/15/14 150 150
Muzak
9.875%, 03/15/09 100 45
NCL (A)
10.625%, 07/15/14 100 103
OED/Diamond Jo
8.750%, 04/15/12 200 189
Penn National Gaming
8.875%, 03/15/10 100 106
6.875%, 12/01/11 100 100
Six Flags
9.750%, 04/15/13 150 140
Speedway Motorsports
6.750%, 06/01/13 100 101
Waterford Gaming (A)
8.625%, 09/15/12 129 135
Windsor Woodmount
Black Hawk, Ser B (C)
13.000%, 03/15/05 18 1
Wynn Las Vegas (A)
6.625%, 12/01/14 150 143
----------------------------------------------------------------
TOTAL ENTERTAINMENT 4,636
================================================================
FINANCIAL SERVICES [3.7%]
Alamosa Delaware
8.500%, 01/31/12 150 155
BCP Caylux Holding (A)
9.625%, 06/15/14 45 51
Caithness Coso Fund, Ser B
9.050%, 12/15/09 73 79
Chukchansi Economic
Development Authority (A)
14.500%, 06/15/09 150 185
Couche-Tard Finance
7.500%, 12/15/13 100 105
Crystal US Holdings (B)
10.500%, 10/01/14 73 51
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
ESI Tractebel Acquisitions, Ser B
7.990%, 12/30/11 $ 67 $ 71
JSG Funding
9.625%, 10/01/12 100 107
7.750%, 04/01/15 (A) 150 140
Polymer Holdings (A) (B)
12.000%, 07/15/14 250 155
Poster Financial Group
8.750%, 12/01/11 200 208
Ship Finance
8.500%, 12/15/13 200 198
Standard Aero (A)
8.250%, 09/01/14 150 155
----------------------------------------------------------------
TOTAL FINANCIAL SERVICES 1,660
================================================================
FOOD & BEVERAGE [5.2%]
Chiquita Brands International
7.500%, 11/01/14 100 99
Del Monte
8.625%, 12/15/12 50 54
6.750%, 02/15/15 (A) 100 97
Dimon, Ser B
9.625%, 10/15/11 100 113
Dole Foods
8.875%, 03/15/11 100 107
Dominos
8.250%, 07/01/11 75 78
Friendly Ice Cream
8.375%, 06/15/12 200 190
General Nutrition Center
8.500%, 12/01/10 150 127
Great Atlantic & Pacific Tea
9.125%, 12/15/11 100 98
Land O' Lakes
8.750%, 11/15/11 200 200
Le-Natures (A)
10.000%, 06/15/13 150 164
Leiner Health Products
11.000%, 06/01/12 100 108
Merisant (A)
9.500%, 07/15/13 100 86
National Beef Packaging
10.500%, 08/01/11 100 102
National Wine & Spirits
10.125%, 01/15/09 100 100
Pilgrim's Pride
9.625%, 09/15/11 100 109
Pinnacle Foods
8.250%, 12/01/13 200 171
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 32
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Swift
12.500%, 01/01/10 $ 200 $ 26
WH Holdings/WH Capital
9.500%, 04/01/11 60 65
----------------------------------------------------------------
TOTAL FOOD & BEVERAGE 2,294
================================================================
FORESTRY [0.2%]
Tembec Industries
7.750%, 03/15/12 100 91
================================================================
MACHINERY [3.1%]
AK Steel
7.875%, 02/15/09 150 147
Building Materials, Ser B
8.000%, 10/15/07 100 102
7.750%, 07/15/05 200 201
Case New Holland (A)
9.250%, 08/01/11 100 107
Cummins (A)
9.500%, 12/01/10 100 110
Dresser-Rand Group (A)
7.375%, 11/01/14 150 150
Grant Prideco Escrow
9.000%, 12/15/09 136 147
Mail-Well
9.625%, 03/15/12 100 107
Resolution Performance Products
13.500%, 11/15/10 100 108
Terex
7.375%, 01/15/14 100 102
Trimas
9.875%, 06/15/12 100 102
----------------------------------------------------------------
TOTAL MACHINERY 1,383
================================================================
MEDICAL [3.6%]
Alpharma (A)
8.625%, 05/01/11 100 95
Bio-Rad Laboratories
7.500%, 08/15/13 100 104
Biovail
7.875%, 04/01/10 100 99
CDRV Investors (A) (B)
9.750%, 01/01/15 200 120
Concentra Operating
9.500%, 08/15/10 100 107
Davita (A)
7.250%, 03/15/15 50 49
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Extendicare Health
6.875%, 05/01/14 $ 100 $ 99
Genesis Healthcare
8.000%, 10/15/13 100 109
MQ Associates (B)
12.250%, 08/15/12 150 86
National Mentor (A)
9.625%, 12/01/12 100 104
Pacificare Health Systems
10.750%, 06/01/09 65 72
Tenet Healthcare (A)
9.250%, 02/01/15 200 200
Triad Hospitals
7.000%, 05/15/12 150 152
Universal Hospital Services
10.125%, 11/01/11 200 205
----------------------------------------------------------------
TOTAL MEDICAL 1,601
================================================================
MEDICAL PRODUCTS & SERVICES [0.6%]
Select Medical (A)
7.625%, 02/01/15 150 150
Vanguard Health Holding
9.000%, 10/01/14 100 105
----------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 255
================================================================
MISCELLANEOUS BUSINESS SERVICES
[1.0%]
Allied Security Escrow
11.375%, 07/15/11 150 154
Carriage Services (A)
7.875%, 01/15/15 200 201
Integrated Alarm Services
Group (A)
12.000%, 11/15/11 100 99
----------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 454
================================================================
MISCELLANEOUS MANUFACTURING [1.3%]
Aearo
8.250%, 04/15/12 150 158
KI Holdings (A) (B)
9.870%, 11/15/14 250 154
Maax Holdings (A) (B)
11.251%, 12/15/12 200 114
Propex Fabrics (A)
10.000%, 12/01/12 150 149
----------------------------------------------------------------
TOTAL MISCELLANEOUS MANUFACTURING 575
================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 33
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
OFFICE FURNITURE & FIXTURES [0.2%]
Interface
9.500%, 02/01/14 $ 100 $ 105
================================================================
PAPER & PAPER PRODUCTS [2.3%]
Abitibi-Consolidated
7.750%, 06/15/11 100 98
Appleton Papers
9.750%, 06/15/14 100 104
Boise Cascade (A)
7.125%, 10/15/14 200 202
Georgia-Pacific
7.700%, 06/15/15 100 110
Neenah Paper (A)
7.375%, 11/15/14 150 144
Norampac
6.750%, 06/01/13 100 102
Norske Skog Canada
7.375%, 03/01/14 250 243
----------------------------------------------------------------
TOTAL PAPER & PAPER PRODUCTS 1,003
================================================================
PETROLEUM & FUEL PRODUCTS [6.3%]
Belden & Blake
8.750%, 07/15/12 150 149
Chesepeake Energy
6.875%, 01/15/16 200 202
Citgo Petroleum
6.000%, 10/15/11 200 197
Comstock Resources
6.875%, 03/01/12 150 149
Dynegy Holdings
10.125%, 07/15/13 (A) 150 163
6.875%, 04/01/11 100 89
El Paso
7.000%, 05/15/11 200 192
El Paso Natural Gas
7.625%, 08/01/10 150 157
El Paso Production Holdings
7.750%, 06/01/13 200 202
Forest Oil
8.000%, 06/15/08 150 159
8.000%, 12/15/11 100 110
Giant Industries
8.000%, 05/15/14 200 200
Pacific Energy
7.125%, 06/15/14 100 104
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Parker Drilling
9.625%, 10/01/13 $ 150 $ 166
Plains Exploration & Production
8.750%, 07/01/12 150 164
Pride International
7.375%, 07/15/14 100 106
Range Resources (A)
6.375%, 03/15/15 50 48
Swift Energy
7.625%, 07/15/11 100 104
Vintage Petroleum
7.875%, 05/15/11 100 106
Williams
7.625%, 07/15/19 50 54
----------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 2,821
================================================================
PRINTING & PUBLISHING [2.9%]
Advertising Direct (A)
9.250%, 11/15/12 150 158
American Color Graphics
10.000%, 06/15/10 100 65
Canwest Media
10.625%, 05/15/11 100 109
Dex Media (B)
9.000%, 11/15/13 200 152
Dex Media East
9.875%, 11/15/09 100 110
Dex Media West, Ser B (A)
8.500%, 08/15/10 100 107
Emmis Operating
6.875%, 05/15/12 150 147
Haights Cross Operating
11.750%, 08/15/11 100 112
JII Holdings
13.000%, 04/01/07 70 66
Primedia
8.000%, 05/15/13 100 102
Sheridan Group
10.250%, 08/15/11 150 159
----------------------------------------------------------------
TOTAL PRINTING & PUBLISHING 1,287
================================================================
REAL ESTATE INVESTMENT TRUST [0.3%]
Host Marriott (A)
6.375%, 03/15/15 150 143
================================================================
RETAIL [4.2%]
Amerigas Partner
8.875%, 05/20/11 100 106
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 34
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Ames True Temper
10.000%, 07/15/12 $ 150 $ 127
6.640%, 01/15/12 (A) (D) 100 94
Asbury Automotive Group
9.000%, 06/15/12 150 153
Autonation
9.000%, 08/01/08 100 110
Denny's (A)
10.000%, 10/01/12 150 157
Duane Reade
9.750%, 08/01/11 200 176
Jean Countu Group (A)
8.500%, 08/01/14 200 194
Mortons Restaurant Group
7.500%, 07/01/10 150 145
Pantry (A)
7.750%, 02/15/14 100 104
Petro Stopping Center
9.000%, 02/15/12 100 103
Rite Aid
8.125%, 05/01/10 100 102
True Temper Sports
8.375%, 09/15/11 150 140
United Auto Group
9.625%, 03/15/12 150 158
----------------------------------------------------------------
TOTAL RETAIL 1,869
================================================================
SEMI-CONDUCTORS/INSTRUMENTS [1.6%]
Advanced Micro Devices (A)
7.750%, 11/01/12 100 98
Amkor Technologies
7.750%, 05/15/13 200 168
Fisher Scientific International
8.000%, 09/01/13 150 163
6.750%, 08/15/14 (A) 100 102
Flextronics International
6.250%, 11/15/14 100 95
Sanmina SCI (A)
6.750%, 03/01/13 100 94
----------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 720
================================================================
STEEL & STEEL WORKS [0.5%]
Gerdau Ameristeel
10.375%, 07/15/11 100 112
International Steel Group
6.500%, 04/15/14 100 102
----------------------------------------------------------------
TOTAL STEEL & STEEL WORKS 214
================================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS
[8.6%]
Airgate PCS (A)
9.375%, 09/01/09 $ 200 $ 212
Alamosa Holdings (B)
12.875%, 02/15/10 150 163
American Cellular, Ser B
10.000%, 08/01/11 150 138
American Tower
7.125%, 10/15/12 100 99
Atlantic Broadband (A)
9.375%, 01/15/14 200 192
Centennial Communications
10.125%, 06/15/13 100 110
8.125%, 02/01/14 100 103
Cincinnati Bell
8.375%, 01/15/14 185 182
Crown Castle International
7.500%, 12/01/13 100 110
Dobson Cellular (A)
9.875%, 11/01/12 200 204
IPCS
11.500%, 05/01/12 150 169
Insight Midwest
9.750%, 10/01/09 150 157
Intelsat Bermuda (D)
7.805%, 01/15/12 200 203
IWO Escrow (A) (B)
10.750%, 01/15/15 100 64
Level 3 Communications
9.125%, 05/01/08 100 83
Nextel Communications
7.375%, 08/01/15 100 106
Nextel Partners
8.125%, 07/01/11 150 159
PanAmSat
9.000%, 08/15/14 150 158
Qwest
5.625%, 11/15/08 100 99
Rogers Wireless
9.625%, 05/01/11 100 114
7.250%, 12/15/12 50 51
Rural Cellular
9.750%, 01/15/10 200 183
SBA Telecommunications (B)
9.750%, 12/15/11 150 129
Time Warner Telecommunications
10.125%, 02/01/11 100 97
Triton PCS
8.500%, 06/01/13 150 138
UbiquiTel Operating
9.875%, 03/01/11 200 221
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 35
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- -------------------------------------------------------------------
Western Wireless
9.250%, 07/15/13 $ 150 $ 171
----------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 3,815
================================================================
TRANSPORTATION SERVICES [1.0%]
American Commercial Lines (A)
9.500%, 02/15/15 150 155
H-Lines Finance Holdings (B)
11.000%, 04/01/13 200 156
Progress Rail (A)
7.750%, 04/01/12 150 150
----------------------------------------------------------------
TOTAL TRANSPORTATION SERVICES 461
================================================================
WASTE DISPOSAL [0.8%]
Allied Waste
7.375%, 04/15/14 150 136
Waste Services (A)
9.500%, 04/15/14 200 202
----------------------------------------------------------------
TOTAL WASTE DISPOSAL 338
================================================================
WHOLESALE [0.2%]
Collins & Aikman Floor Cover, Ser B
9.750%, 02/15/10 100 107
================================================================
TOTAL CORPORATE BONDS
(Cost $43,728) 44,332
===========================================================
COMMON STOCK [0.2%]
RETAIL [0.2%]
Crunch Equity Holding* 56 73
================================================================
TOTAL COMMON STOCK
(Cost $61) 73
===========================================================
WARRANTS [0.0%]
Dayton Superior*,
Expires 06/15/09 (A) 100 --
Diva Systems*,
Expires 03/01/08 (A) 600 --
Pliant*, Expires 06/01/10 (A) 100 --
----------------------------------------------------------------
TOTAL WARRANTS
(Cost $0) --
===========================================================
TOTAL INVESTMENTS [99.8%]
(Cost $43,789) 44,405
===========================================================
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES:
Payable for Fund Shares Redeemed $ (462)
Income Distributions Payable (139)
Investment Advisory Fees Payable (27)
Shareholder Servicing and
Distribution Fees Payable (16)
Administration Fees Payable (2)
Other Assets and Liabilities, Net 748
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [0.2%] 102
===========================================================
NET ASSETS [100.0%] $ 44,507
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 44,675
Accumulated net realized loss on investments (784)
Net unrealized appreciation on investments 616
----------------------------------------------------------------
NET ASSETS $ 44,507
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($23,367,086 / 2,542,578 shares) $ 9.19
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($21,139,909 / 2,300,523 shares) $ 9.19
================================================================
* Non-income producing security
(A) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"accredited investors." On March 31, 2005, the value of these securities
amounted to approximately $11,248,000, representing 25.3% of the net
assets of the Fund.
(B) Step Bond -- The rate reflected on the Statement of Net Assets is the rate
in effect on March 31, 2005. The coupon on a step bond changes on a
specific date.
(C) In default on interest payments.
(D) Floating Rate Security -- The rate reflected on the Statement of Net
Assets is the rate in effect on March 31, 2005.
Ser -- Series
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 36
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Commercial Paper 55.7%
Repurchase Agreements 25.1%
U.S. Government Agency Obligations 15.7%
Certificate of Deposit 3.3%
Cash Equivalent 0.2%
* Percentages are based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
COMMERCIAL PAPER (A) [55.8%]
ASSET BACKED SECURITIES [22.9%]
Barton Capital
2.810%, 05/09/05 $ 25,000 $ 24,926
Eiffel Funding
2.780%, 04/27/05 25,000 24,950
Giro Funding
2.870%, 05/13/05 25,000 24,916
Kitty Hawk Funding
2.800%, 04/25/05 25,000 24,954
Laguna
2.820%, 04/22/05 25,000 24,959
2.830%, 05/12/05 400 399
Premier Asset
2.810%, 05/27/05 15,000 14,935
2.940%, 06/13/05 10,000 9,940
Ranger Funding
2.780%, 04/22/05 25,000 24,959
----------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES 174,938
================================================================
BANKS [13.2%]
Bank of America
2.546%, 04/04/05 25,000 24,995
Barclays Bank
2.755%, 04/29/05 25,000 24,946
Societe Generale
2.520%, 04/01/05 600 600
2.770%, 05/02/05 25,000 24,940
UBS Finance
2.750%, 04/28/05 25,000 24,949
----------------------------------------------------------------
TOTAL BANKS 100,430
================================================================
DRUGS [3.3%]
Pfizer
2.850%, 05/24/05 25,000 24,895
================================================================
FINANCE AUTO LOAN [3.3%]
Toyota Motor Credit
2.520%, 04/05/05 25,000 24,993
================================================================
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- -------------------------------------------------------------------
FINANCIAL SERVICES [9.8%]
Citigroup Global
2.820%, 05/10/05 $ 25,000 $ 24,924
General Electric Capital
2.750%, 04/27/05 25,000 24,950
Morgan Stanley
2.796%, 04/21/05 25,000 24,961
----------------------------------------------------------------
TOTAL FINANCIAL SERVICES 74,835
================================================================
INSURANCE [3.3%]
Prudential Funding
2.710%, 04/26/05 25,000 24,953
================================================================
TOTAL COMMERCIAL PAPER
(Cost $425,044) 425,044
===========================================================
U.S. GOVERNMENT AGENCY OBLIGATIONS [15.7%]
FHLB
1.560%, 05/13/05 25,000 25,000
3.070%, 02/13/06 5,000 5,000
FHLMC
3.000%, 03/21/06 5,000 5,000
FHLMC, MTN
2.570%, 12/06/05 10,000 10,000
2.980%, 02/03/06 5,000 5,000
3.050%, 02/28/06 10,000 10,000
3.200%, 04/12/06 5,000 5,000
FNMA
1.800%, 05/27/05 55,000 55,000
----------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (Cost $120,000) 120,000
===========================================================
CERTIFICATE OF DEPOSIT [3.3%]
First Tennessee Bank
2.790%, 04/21/05 25,000 25,000
----------------------------------------------------------------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $25,000) 25,000
===========================================================
CASH EQUIVALENT [0.2%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I 1,846,863 1,847
----------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $1,847) 1,847
===========================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 37
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
REPURCHASE AGREEMENTS (B) [25.1%]
Banc of America
2.870%, date 03/31/05,
repurchased on 04/01/05,
repurchase price $25,001,993
(collateralized by a U.S.
Government obligation, par
value $25,851,295, 5.500%
02/01/35; with total market
value $26,500,001) $ 25,000 $ 25,000
Barclay Bank
2.870%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price, $140,711,217
(collateralized by U.S.
Government obligations,
ranging in par value
$3,708,058-$16,785,950,
4.964%-6.500%, 01/01/19-
04/01/35; with total market
value $143,514,000) 140,700 140,700
Bear Stearns
2.870%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price $25,001,993
(collateralized by U.S.
Government obligations,
ranging in par value
$9,358,217-$16,530,000,
5.000%-5.000%, 03/01/25-
03/01/35; with total
market value $25,503,766) 25,000 25,000
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $190,700) 190,700
===========================================================
TOTAL INVESTMENTS [100.1%]
(Cost $762,591) 762,591
===========================================================
OTHER ASSETS AND LIABILITIES:
Income Distributions Payable (935)
Investment Advisory Fees Payable (151)
Shareholder Servicing and Distribution
Fees Payable (240)
Administration Fees Payable (35)
Other Assets and Liabilities, Net 813
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [-0.1%] (548)
===========================================================
NET ASSETS [100.0%] $ 762,043
================================================================
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $ 762,445
Accumulated net realized loss on investments (402)
----------------------------------------------------------------
NET ASSETS $ 762,043
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($369,332,425 / 369,468,320 shares) $ 1.00
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($251,249,814 / 251,519,770 shares) $ 1.00
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class S
($141,460,921 / 141,550,701 shares) $ 1.00
================================================================
(A) The rate reported is the effective yield at time of purchase.
(B) Tri-Party Repurchase Agreement
Cl -- Class
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 38
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
U.S.Government Agency Obligation 58.5%
Repurchase Agreements 41.5%
*Percentages are based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS [58.5%]
FHLB
1.400%, 04/01/05 $ 15,000 $ 15,000
1.560%, 05/13/05 75,000 75,000
1.700%, 05/23/05 53,500 53,500
1.780%, 05/27/05 5,310 5,310
2.050%, 06/27/05 25,000 25,000
2.400%, 11/08/05 10,000 10,000
3.070%, 02/13/06 20,000 20,000
FHLB (A)
2.700%, 04/04/05 225,000 224,950
2.630%, 04/06/05 69,435 69,410
FHLB (B)
1.500%, 04/13/05 25,000 25,000
1.550%, 05/02/05 35,000 35,000
FHLMC
2.260%, 09/27/05 25,000 25,000
FHLMC (A)
2.630%, 04/05/05 23,882 23,875
FHLMC (B)
3.000%, 03/21/06 25,000 25,000
FHLMC, MTN
2.350%, 10/27/05 25,000 25,000
2.400%, 11/02/05 35,000 34,999
2.570%, 12/06/05 35,000 35,000
2.740%, 12/16/05 25,000 25,000
2.980%, 02/03/06 20,000 20,000
3.050%, 02/28/06 25,000 25,000
FHLMC, MTN (B)
3.200%, 04/12/06 25,000 25,000
FNMA
1.650%, 05/16/05 55,575 55,575
1.660%, 05/20/05 10,000 10,000
1.800%, 05/27/05 15,000 15,000
1.400%, 07/08/05 2,680 2,673
FNMA (A)
2.500%, 04/01/05 100,000 100,000
2.610%, 04/04/05 200,000 199,957
2.520%, 04/05/05 100,000 99,972
----------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,305,221) 1,305,221
===========================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
REPURCHASE AGREEMENTS (C) [41.5%]
Banc of America
2.870%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price $300,023,917
(collateralized by a U.S.
Government obligation,
par value $377,573,085,
5.500%, 05/01/34; with total
market value $306,000,000) $300,000 300,000
Barclay Bank
2.870%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price $176,914,103
(collateralized by U.S.
Government obligations,
ranging in par value
$3,959,995-$22,735,229,
3.230%-6.500%, 03/01/20-
04/01/35; with total market
value $180,438,000) 176,900 176,900
Bear Stearns Inc. & Co.
2.870%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price $350,027,902
(collateralized by U.S.
Government obligations,
ranging in par value
$7,550,042-$22,334,694,
4.000%-6.000%, 02/01/11-
04/01/35,with total market
value $357,003,065) 350,000 350,000
JPMorgan Chase
2.870%, dated 03/31/05,
repurchased on 04/01/05,
repurchase price $100,007,972
(collateralized by U. S.
Government obligations,
ranging in par value
$13,352,554-$29,566,000,
4.500%-8.000%, 03/01/17-
02/01/35; with total market
value $102,000,671) 100,000 100,000
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $926,900) 926,900
===========================================================
TOTAL INVESTMENTS [100.0%]
(Cost $2,232,121) 2,232,121
===========================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 39
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES:
Income Distributions Payable $ (1,361)
Investment Advisory Fees Payable (493)
Shareholder Servicing and Distribution
Fees Payable (923)
Administration Fees Payable (109)
Trustees' Fees Payable (3)
Other Assets and Liabilities, Net 3,558
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [0.0%] 669
================================================================
NET ASSETS [100.0%] $2,232,790
================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization --
$0.01 par value) $2,232,790
Distributions in excess of net
investment income (2)
Accumulated net realized gain
on investments 2
----------------------------------------------------------------
NET ASSETS $2,232,790
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($45,536,096 / 45,537,336 shares) $ 1.00
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($1,936,524,412 / 1,936,522,023 shares) $ 1.00
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class S
($250,729,919 / 250,730,325 shares) $ 1.00
================================================================
(A) The rate reported is the effective yield at time of purchase.
(B) Step Bond -- The rate reflected on the Statement of Net Assets is the
rate in effect on March 31, 2005. The coupon on a step bond changes on a
specific date.
(C) Tri-Party Repurchase Agreement
FHLB -- Federal Home Loan Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 40
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.]
SECTOR WEIGHTINGS*:
Housing 14.5%
General Revenue 14.4%
Education 14.1%
General Obligation 10.4%
Water 9.4%
Power 7.8%
Transportation 7.5%
Public Facilities 7.0%
Healthcare 5.9%
Utilities 4.6%
Industrial Development 3.8%
Equipment 0.6%
* Percentages are based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
MUNICIPAL BONDS [96.7%]
CALIFORNIA [96.4%]
ABAG, Finance Authority for
Non-Profit Corporations,
Hamlin School Project,
Ser A, GO (A) (B) (C)
2.270%, 08/01/32 $ 1,500 $ 1,500
ABAG, Finance Authority for
Non-Profit Corporations,
Public Policy Institute,
Ser A, RB (A) (B) (C)
2.270%, 11/01/31 2,990 2,990
ABAG, Finance Authority for
Non-Profit Corporations,
School of the Sacred Heart,
Ser B, RB (A) (B) (C)
2.430%, 06/01/30 8,500 8,500
ABAG, Finance Authority for
Non-Profit Corporations,
Ser C, COP (A) (B) (C)
2.280%, 10/01/27 110,165 10,165
ABAG, Finance Authority for
Non-Profit Corporations,
Ser D, COP (A) (B) (C)
2.280%, 10/01/27 2,330 2,330
ABAG, Financial Authority for
Non-Profit Corporations,
Jewish Community Center
Project, RB (A) (B) (C)
2.280%, 11/15/31 6,875 6,875
Alameda-Contra Costa, School
Finance Authority, Capital
Improvement Financing Project,
Ser F, COP (A) (B) (C)
2.350%, 08/01/23 1,000 1,000
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Anaheim, 1993 Police Facilities
Refinancing Project, COP,
AMBAC (A) (B)
2.260%, 08/01/08 $ 5,000 $ 5,000
Anaheim, Multi-Family Housing
Authority, Heritage Village
Apartments Project, Ser A,
RB (A) (B) (D)
2.270%, 07/15/33 4,385 4,385
Antelope Valley, Healthcare
Project, Ser A, RB (A) (B) (C)
2.280%, 09/01/17 5,500 5,500
Berkeley,YMCA Project, RB
2.280%, 06/01/23 1,955 1,955
California State, Bay Area Toll
Authority, San Francisco Bay
Area Project, Ser A, RB,
AMBAC
2.220%, 04/01/39 10,000 10,000
California State, Daily
Kindergarten University,
Ser A-2, GO (A) (B) (C)
2.330%, 05/01/34 5,500 5,500
California State, Daily
Kindergarten University,
Ser A-5, GO
2.280%, 05/01/34 8,000 8,000
California State, Daily
Kindergarten University,
Ser B-1, GO (A) (B) (C)
2.250%, 05/01/34 1,900 1,900
California State, Daily
Kindergarten University,
Ser B-3, GO (A) (B) (C)
2.250%, 05/01/34 10,100 10,100
California State, Department of
Water Resource & Power,
Ser B-5, RB (A) (B) (C)
2.240%, 05/01/22 1,500 1,500
California State, Department of
Water Resource & Power,
Ser C-13, RB, FSA (A) (B)
2.280%, 05/01/22 12,500 12,500
California State, Department of
Water Resource & Power,
Ser C-15, RB (A) (B) (C)
2.220%, 05/01/22 5,000 5,000
California State, Department of
Water Resources, Ser B-1,
RB (A) (B) (C)
2.280%, 05/01/22 11,100 11,100
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 41
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
California State, Economic
Development Financing
Authority, KQED Project,
RB (A) (B) (C)
2.280%, 04/01/20 $ 1,500 $ 1,500
California State, Economic
Recovery Authority,
Ser C-1, RB (A) (B) (C)
2.300%, 07/01/23 4,650 4,650
California State, Economic
Recovery Authority,
Ser C-3, RB (A) (B)
2.200%, 07/01/23 1,900 1,900
California State, Economic
Recovery Authority,
Ser C-7, RB (A) (B) (C)
2.280%, 07/01/23 5,350 5,350
California State, Economic
Recovery Authority,
Ser C-8, RB (A) (B) (C)
2.230%, 07/01/23 3,000 3,000
California State, Economic
Recovery Authority,
Ser C-12, RB (A) (B)
2.280%, 07/01/23 5,000 5,000
California State, Educational
Facilities Authority, Chapman
University Project,
RB (A) (B) (C)
2.430%, 12/01/30 1,000 1,000
California State, Educational
Facilities Authority, University of
San Francisco, RB (A) (B) (C)
2.280%, 05/01/30 4,100 4,100
California State, Golden Valley
Unified School District, BAN
3.750%, 03/08/06 4,800 4,864
California State, Health Facilities
Finance Authority, Adventist
Health Systems Project,
Ser B, RB (A) (B) (C)
2.230%, 09/01/25 4,400 4,400
California State, Health Facilities
Finance Authority, Adventist
Hospital Project, Ser A, RB,
MBIA (A) (B)
2.280%, 09/01/28 4,980 4,980
California State, Health Facilities
Finance Authority, Adventist
Hospital Project, Ser C, RB,
MBIA (A) (B)
2.280%, 09/01/15 6,000 6,000
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
California State, Housing
Finance Agency, Multi-Family
Housing Project, Ser D,
RB (A) (B)
2.300%, 02/01/31 $ 9,195 $ 9,195
California State, Infrastructure &
Economic Authority, Colburn
School Project, Ser B,
RB (A) (B) (C)
2.280%, 08/01/37 3,655 3,655
California State, School Cash
Reserve Project, Ser A, GO
3.000%, 07/06/05 8,500 8,528
California State, Ser A-1, GO
(A) (B) (C)
2.300%, 05/01/33 7,475 7,475
California State, Ser A-2, GO
(A) (B) (C)
2.280%, 05/01/33 6,000 6,000
California State, Ser A-3, GO
(A) (B) (C)
2.200%, 05/01/33 13,500 13,500
California State, Statewide
Communities Development
Authority, House Ear Institute
Project, COP (A) (B) (C)
2.290%, 12/01/18 2,300 2,300
California State, Statewide
Communities Development
Authority, Ser B-1,TRAN,
GO, FSA
3.500%, 07/29/05 5,000 5,030
California State, University
Systemwide Project,
Ser A, AMBAC
4.000%, 11/01/05 2,700 2,724
California State,Weekly
Kindergarten University,
Ser B-5, GO (A) (B) (C)
2.280%, 05/01/34 5,000 5,000
California Statewide,
Communities Development
Authority, Center for Early
Education Project,
RB (A) (B) (C)
2.270%, 09/01/31 1,000 1,000
California Statewide,
Communities Development
Authority, Childrens Hospital
Project, Ser B, RB, AMBAC
(A) (B)
2.260%, 08/15/32 1,800 1,800
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 42
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
California Statewide,
Communities Development
Authority, Ser A-3,TRAN
3.000%, 06/30/05 $ 2,000 $ 2,004
California Statewide,
Communities Development
Authority, University
Retirement Project,
RB (A) (B) (C)
2.290%, 11/15/30 6,800 6,800
California Statewide,
Communties Development
Authority, North Peninsula
Jewish Project, RB
(A) (B) (C)
2.280%, 07/01/34 6,300 6,300
Chaffey, Union High School
District, Ser C, GO, FSA
3.500%, 05/01/05 500 501
Chico, Public Financing
Authority, Merged
Redevelopment Project,
TA, MBIA
4.000%, 04/01/05 500 500
Corona, Multi-Family Housing
Authority, Country Hills
Project, Ser A, RB (A) (B) (D)
2.260%, 02/01/20 6,475 6,475
Desert Sands, Unified School
District, Election 2001,
GO, FSA
3.000%, 06/01/05 1,000 1,002
Desert Sands, Unified School
District,TRAN
2.500%, 07/07/05 8,500 8,521
East Bay, Municipal Utilities
District Authority,
Ser A, RB, FSA (A) (B)
2.260%, 06/01/25 1,300 1,300
East Bay-Delta, Housing &
Finance Authority,
Ser A, RB, MBIA
4.250%, 06/01/05 4,250 4,269
East Side, Union High School
District,TRAN
2.500%, 06/30/05 10,000 10,023
Eastern California, Municipal
Water District, COP,
Ser B,TA, FGIC (A) (B)
2.230%, 07/01/20 5,000 5,000
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Fontana, Unified School
District, School Facility
Bridge Funding Program,
COP, FSA (A) (B)
2.240%, 04/01/35 $ 5,000 $ 5,000
Fremont, Family Center Finance
Project, COP (A) (B) (C)
2.270%, 08/01/28 4,525 4,525
Fremont, Office Building
Improvement & Fire
Equipment Project,
COP (A) (B) (C)
2.270%, 08/01/30 3,530 3,530
Fresno, Multi-Family Housing
Authority, Stonepine
Apartment Project,
Ser A, RB (A) (B) (D)
2.260%, 02/15/31 1,595 1,595
Fresno, Palm Lakes Apartment
Project, RB (A) (B) (C)
2.270%, 05/01/15 3,715 3,715
Glendale, Police Building
Project, COP (A) (B)
2.280%, 06/01/30 23,400 23,400
Grant, Joint Union High School
District, School Facility
Bridge Funding Project,
COP, FSA (A) (B) (C)
2.230%, 09/01/34 1,000 1,000
Huntington Beach, Union High
School District, School
Facility Bridge Funding
Project, COP, FSA (A) (B) (C)
2.230%, 09/01/28 1,890 1,890
Irvine Ranch,Water District
Conservation, Ser B, GO
(A) (B) (C)
2.332%, 08/01/09 2,300 2,300
Irvine Ranch,Water District,
Capital Improvement Project,
COP (A) (B) (C)
2.240%, 08/01/16 4,000 4,000
Irvine Ranch,Water District,
GO (A) (B) (C)
2.240%, 01/01/21 4,400 4,400
Irvine Ranch,Water District,
Improvement District No. 182,
Ser A, GO (A) (B) (C)
2.240%, 11/15/13 600 600
Irvine, Improvement Board, Act
1915 Project, District #93-14,
SAB (A) (B) (C)
2.240%, 09/02/25 694 694
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 43
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Irvine, Improvement Board,
Act 1915 Project, Ser A,
SAB (A) (B) (C)
2.280%, 09/02/29 $ 1,900 $ 1,900
Kings County, Multi-Family
Housing Authority, Edgewater
Isle Apartments Project, Ser A,
RB (A) (B) (D)
2.260%, 02/15/31 10,710 10,710
Lemon Grove, Multi-Family
Housing Authority, Hillside
Terrace Project, RB (A) (B) (D)
2.260%, 02/15/31 4,955 4,955
Lodi, Electric System Authority,
Ser A, COP, MBIA
2.260%, 07/01/32 9,360 9,360
Los Angeles County,
Metropolitan Transportation
Authority, Proposition C-2nd
SR, Ser A, RB, AMBAC
Pre-Refunded @ 102 (F)
5.700%, 07/01/05 1,135 1,170
Los Angeles County, Multi-
Family Housing Authority,
Malibu Canyon Apartments
Project, Ser B, RB (A) (B) (C)
2.300%, 06/01/10 8,000 8,000
Los Angeles County, Multi-
Family Housing Authority,
Valencia Housing Project,
Ser C, RB (A) (B) (D)
2.230%, 04/01/31 600 600
Los Angeles County, Schools,
Transport Project,
Ser A, GO, FSA
3.500%, 06/30/05 15,000 15,069
Los Angeles County,
Ser A,TRAN
3.000%, 06/30/05 1,275 1,278
Los Angeles, Department of
Water & Power, Sub-Ser B-3,
RB (A) (B)
2.280%, 07/01/35 3,300 3,300
Los Angeles, Metropolitan
Transit Commission,
Ser A, RB, FGIC (A) (B)
2.260%, 07/01/12 8,600 8,600
Los Angeles, Metropolitan
Transportation Authority,
Proposition C, Ser A, RB,
MBIA (A) (B)
2.230%, 07/01/20 14,950 14,950
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Los Angeles, Samuel A Fryer
Yavney, Ser A, COP
(A) (B) (C)
2.280%, 08/01/21 $ 7,000 $ 7,000
Los Angeles,Water & Power
Resource Authority,
Sub-Ser B-2, RB (A) (B)
2.200%, 07/01/34 2,000 2,000
Los Angeles,Water & Power
Resource Authority, Sub
Ser B-3, RB (A) (B)
2.300%, 07/01/34 7,000 7,000
Los Angeles,Water & Power
Resource Authority, Sub
Ser B-6, RB (A) (B) (C)
2.280%, 07/01/34 19,800 19,800
Moorpark, Unified School
District, Ser A, COP, FSA
(A) (B) (C)
2.230%, 11/01/28 1,000 1,000
Newport Beach, Hoag
Memorial Hospital,
Ser A, RB (A) (B)
2.260%, 10/01/26 3,100 3,100
Newport Beach, Hoag
Memorial Hospital,
Ser C, RB (A) (B)
2.260%, 10/01/26 1,900 1,900
Oakland, Capital Equipment
Project, COP (A) (B) (C)
2.280%, 12/01/15 4,190 4,190
Oakland, Joint Powers Financing
Authority, Ser A-2, RB,
FSA (A) (B)
2.250%, 08/01/21 13,600 13,600
Oakland, JT Powers Financing
Authority, Ser A-1, RB,
FSA (A) (B)
2.200%, 08/01/21 4,325 4,325
Oakland-Alameda County,
Coliseum Project, Ser C-1,
RB (A) (B) (C)
2.270%, 02/01/25 15,000 15,000
Orange County, Apartment
Development Authority,
Hidden Hills Project, Ser C,
RB (A) (B)
2.300%, 11/01/09 3,200 3,200
Orange County, Apartment
Development Authority,
Larkspur Canyon Apartments,
Ser A, RB, FSA (A) (B) (D)
2.300%, 06/15/37 1,200 1,200
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 44
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Orange County, Apartment
Development Authority,
Riverbend Apartments
Project, Ser B, RB (A) (B) (D)
2.300%, 12/01/29 $ 5,000 $ 5,000
Orange County, Apartment
Development Authority,
Seaside Meadow Project,
Ser C, RB (A) (B) (D)
2.260%, 08/01/08 5,700 5,700
Orange County, Sanitation
District Authority, Ser A,
COP (A) (B)
2.280%, 08/01/29 7,685 7,685
Orange County,Water District
Authority, Ser A, COP (A) (B)
2.260%, 08/01/42 2,800 2,800
Pasadena, Rose Bowl
Improvements Project,
COP (A) (B) (C)
2.300%, 12/01/11 2,500 2,500
Redwood City, City Hall
Project, COP (A) (B) (C)
2.270%, 07/01/21 1,800 1,800
Riverside County, Asset Leasing
Authority, Southwest Justice
Center Project, Ser B, RB,
MBIA (A) (B)
2.260%, 11/01/32 4,100 4,100
Riverside County, Housing
Authority, Polk Apartments
Limited LP, Ser B,
RB (A) (B) (C)
2.260%, 12/15/30 7,690 7,690
Riverside County, Ser C,
COP (A) (B) (C)
2.220%, 12/01/15 16,700 16,700
Riverside, Unified School
District, School Facility
Bridge Funding Project,
Ser C, COP, FSA
2.230%, 09/01/27 1,610 1,610
Riverside-San Bernardino,
Sub-Pass Thru Obligations,
Ser B, RB
2.290%, 07/01/06 1,350 1,350
Sacramento County, Housing
Authority, Bent Tree
Apartments Project, Ser A,
RB (A) (B) (D)
2.260%, 02/15/31 2,500 2,500
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Sacramento County,TRAN,
Ser A, GO
3.000%, 07/11/05 $ 12,000 $ 12,044
San Bernardino County,
Housing Authority, Alta Loma
Heritage Project, Ser A,
RB (A) (B) (C)
2.140%, 02/01/23 1,354 1,354
San Diego County, School
District,TRAN, GO
3.250%, 07/25/05 10,000 10,052
San Diego County,Water
Authority, Ser A, COP, MBIA
4.000%, 05/01/05 550 551
San Diego, Museum of Art
Project, COP (A) (B) (C)
2.430%, 09/01/30 1,400 1,400
San Diego,Water Authority,
Ser I, MBIA, COP (A) (B)
2.310%, 11/01/10 5,975 5,975
San Francisco (City & County),
Housing Authority, Bayside
Village Project D, Ser A,
RB (A) (B) (C)
2.280%, 12/01/05 6,000 6,000
San Francisco, Bay Area Toll
Authority, Ser A, RB,
AMBAC (A) (B)
2.220%, 04/01/36 13,000 13,000
San Francisco, Bay Area Toll
Authority, Ser C, RB,
AMBAC (A) (B)
2.270%, 04/01/25 5,650 5,650
San Jose, Redevelopment
Agency, Merged Area
Redevelopment Project,
Ser A, RB (A) (B) (C)
2.260%, 07/01/26 2,000 2,000
Santa Clara County, Financing
Authority,VMC Facility
Replacement Project, Ser B,
RB (A) (B)
2.240%, 11/15/25 12,375 12,375
Santa Clara Valley,Water District
Authority, Refunding &
Improvements Project, COP,
FGIC
4.000%, 02/01/06 3,990 4,056
Santa Clara, Electric Authority,
Ser C, RB, AMBAC (A) (B)
2.230%, 07/01/10 4,900 4,900
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 45
STATEMENT OF NET ASSETS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Santa Clara, Unified School
District, RAN
2.500%, 06/30/05 $ 6,660 $ 6,675
Southern California,
Metropolitan Water District
Authority, RB (A) (B)
2.280%, 07/01/35 2,900 2,900
Southern California,
Metropolitan Water District
Authority, Ser B, RB (A) (B)
2.230%, 07/01/27 2,100 2,100
Southern California,
Metropolitan Water District
Authority, Ser C-2,
RB (A) (B)
2.250%, 07/01/36 6,000 6,000
Southern California,
Metropolitan Water District
Authority,Water Works
Authorization, Ser B,
RB (A) (B)
2.230%, 07/01/28 4,000 4,000
Southern California,
Metropolitan Water District
Authority,Water Works
Authorization, Ser B-4,
RB (A) (B) (C)
2.260%, 07/01/35 5,600 5,600
Southern California,
Metropolitan Water
District Authority,
Ser A, RB, MBIA
Pre-Refunded @ 102 (F)
5.750%, 07/01/05 3,000 3,088
Southern California,
Metropolitan Water
District Authority,
Ser C-1, RB (A) (B)
2.200%, 07/01/30 5,000 5,000
2.250%, 07/01/36 700 700
Stockton, Multi-Family Housing
Authority, Mariners Pointe
Project, Ser A, RB (A) (B) (C)
2.300%, 09/01/18 2,100 2,100
Sunnyvale, Government Center
Site Acquisition Project, Ser A,
COP, AMBAC (A) (B)
2.280%, 04/01/31 4,600 4,600
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -------------------------------------------------------------------
Three Valleys, Municipal Water
District Authority, Miramar
Water Treatment Project,
COP (A) (B) (C)
2.300%, 11/01/14 $ 4,700 $ 4,700
Turlock, Irrigation District,
Capital Improvement &
Refunding Project,
COP (A) (B) (C)
2.280%, 01/01/31 3,450 3,450
Upland, Community
Redevelopment Authority,
Sunset Ridge & Village
Apartments Project,
RB (A) (B) (C)
2.300%, 12/01/29 6,700 6,700
Westminster, Civic Center
Refinancing Program, Ser A,
COP, AMBAC (A) (B)
2.270%, 06/01/22 3,300 3,300
Yolo County, Multi-Family
Housing Authority, Primero
Grove Project, Ser A,
RB (A) (B) (C)
2.280%, 11/01/27 10,485 10,485
----------------------------------------------------------------
TOTAL CALIFORNIA 711,492
================================================================
PUERTO RICO [0.3%]
Puerto Rico, Electric & Power
Authority, Ser X, RB, MBIA
Pre-Refunded @ 100 (F)
5.500%, 07/01/05 2,355 2,376
================================================================
TOTAL MUNICIPAL BONDS
(Cost $713,868) 713,868
===========================================================
TOTAL INVESTMENTS [96.7%]
(Cost $713,868) 713,868
===========================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 46
STATEMENT OF NET ASSETS
MARCH 31, 2004 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION VALUE (000)
- -------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES:
Payable for Investment Securities Purchased $ (2,724)
Income Distributions Payable (213)
Investment Advisory Fees Payable (122)
Administration Fees Payable (33)
Shareholder Servicing and Distribution
Fees Payable (266)
Trustees' Fees Payable (1)
Other Assets and Liabilities, Net 27,825
----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES [3.3%] 24,466
===========================================================
NET ASSETS [100.0%] $ 738,334
================================================================
NET ASSETS:
Paid in Capital (unlimited authorization --
$0.01 par value) $ 738,339
Accumulated net realized loss on investments (5)
----------------------------------------------------------------
NET ASSETS $ 738,334
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Class
($95,350,480 / 95,351,703 shares) $ 1.00
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class A
($586,945,111 / 586,951,376 shares) $ 1.00
================================================================
Net Asset Value, Offering and Redemption
Price Per Share -- Class S
($56,038,871 / 56,036,409 shares) $ 1.00
================================================================
DESCRIPTION
- --------------------------------------------------------------------------------
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET
ASSETS IS THE RATE IN EFFECT ON MARCH 31, 2005.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE STATEMENT OF NET ASSETS
IS THE FINAL MATURITY, NOT THE NEXT RESET OR PUT DATE.
(C) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
BANK OR FINANCIAL INSTITUTION.
(D) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FHLMC/FNMA.
(E) SECURITY DERIVES FROM A GUARANTEED AGREEMENT.
(F) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
BAN -- BOND ANTICIPATION NOTE
COP -- CERTIFICATE OF PARTICIPATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSISTANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RAN -- REVENUE ANTICIPATION NOTE
RB -- REVENUE BOND
SAB -- SPECIAL ASSESSMENT
SER -- SERIES
TA -- TAX ALLOCATION
TRAN -- TAX & REVENUE ANTICIPATION NOTE
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 47
STATEMENT OF ASSETS & LIABILITIES
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
RCB SMALL CAP
VALUE FUND
(000)
- -------------------------------------------------------------------------------------------------
ASSETS:
Investment at value (Cost $59,702) $ 69,653
Income receivable 130
Receivable for capital shares sold 3,135
Receivable for investment securities sold 842
Prepaid Expenses 2
- -------------------------------------------------------------------------------------------------
Total Assets 73,762
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 111
Investment advisory fees payable 54
Shareholder servicing and distribution fees payable 52
Administrative fees payable 4
Accrued expenses 6
- -------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 227
- -------------------------------------------------------------------------------------------------
NET ASSETS $ 73,535
=================================================================================================
NET ASSETS:
Paid-in-Capital (unlimited authorization -- no par value) $ 60,258
Undistributed net investment income 48
Accumulated net realized gain on investments 3,278
Net unrealized appreciation on investments 9,951
- -------------------------------------------------------------------------------------------------
NET ASSETS $ 73,535
=================================================================================================
Net Asset Value, Offering and Redemption Price Per Share -- Institutional Class
($14,377,218 / 512,360 shares) $ 28.06
Net Asset Value, Offering and Redemption Price Per Share -- Class A
($11,767,499 / 422,725 shares) $ 27.84
Net Asset Value and Redemption Price Per Share -- Class R
($47,390,397 / 1,705,046 shares) $ 27.79
Maximum Offering Price Per Share -- Class R Shares
($27.79 / 96.50%) $ 28.80
=================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 48
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE LARGE CAP GROWTH RCB SMALL CAP TECHNOLOGY
EQUITY FUND EQUITY FUND VALUE FUND GROWTH FUND
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend $ 494 $ 325 $ 332 $ 29
Interest 13 11 181 1
Less: Foreign tax withheld -- -- (3) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 507 336 510 30
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 150 111 281 10
Shareholder Servicing Fees--Institutional Class 50 35 13 1
Shareholder Servicing Fees--Class A(1) 21 16 26 4
Shareholder Servicing Fees--Class R(1) -- -- 115 --
Administrative Fees 18 13 24 1
Trustee Fees 1 1 1 --
Transfer Agent Fees 2 2 3 --
Professional Fees 2 -- 2 --
Registration and Filing Fees 1 -- -- --
Custodian Fees -- 1 1 --
Insurance and Other Fees 2 1 2 --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 247 180 468 16
- ----------------------------------------------------------------------------------------------------------------------------------
Recapture of Investment Advisory Fees Waived(2) 2 -- -- --
Less, Waiver of:
Administrative Fees (3) (2) (3) --
Transfer Agent Fees (2) (2) (3) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 244 176 462 16
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 263 160 48 14
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) From Securities Transactions 3,092 (211) 4,260 (6)
Net Change in Unrealized Appreciation
on Investments 362 1,791 147 128
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,717 $ 1,740 $ 4,455 $ 136
==================================================================================================================================
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
(2) SEE NOTE 4 FOR ADVISORY FEES RECAPTURED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 49
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA
CORPORATE GOVERNMENT TAX EXEMPT HIGH YIELD
BOND FUND BOND FUND BOND FUND BOND FUND
(000) (000) (000) (000)
----------------------------------------------------
INVESTMENT INCOME:
Interest $ 1,125 $ 387 $ 341 $ 2,024
- ----------------------------------------------------------------------------------------------------------------
Total Investment Income 1,125 387 341 2,024
- ----------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 99 49 29 174
Shareholder Servicing Fees--Institutional Class 60 28 24 30
Shareholder Servicing Fees--Class A(1) 4 1 7 61
Administrative Fees 19 9 8 17
Trustee Fees 1 -- -- 1
Transfer Agent Fees 2 1 1 2
Professional Fees 2 1 1 2
Printing Fees 1 -- -- 1
Registration and Filing Fees 1 -- -- 1
Custodian Fees 1 1 -- 1
Insurance and Other Fees 2 1 1 2
- ----------------------------------------------------------------------------------------------------------------
Total Expenses 192 91 71 292
- ----------------------------------------------------------------------------------------------------------------
Recapture of Investment Advisory Fees Waived(2) 2 -- -- --
Less, Waiver of:
Investment Advisory Fees -- (8) (12) (22)
Administrative Fees (3) (1) (1) (2)
Transfer Agent Fees (2) (1) (1) (2)
- ----------------------------------------------------------------------------------------------------------------
Net Expenses 189 81 57 266
- ----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 936 306 284 1,758
- ----------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) From Securities Transactions (7) (25) 62 296
Net Change in Unrealized Depreciation
on Investments (1,216) (285) (429) (939)
- ----------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (287) $ (4) $ (83) $ 1,115
================================================================================================================
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
(2) SEE NOTE 4 FOR ADVISORY FEES RECAPTURED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 50
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA
PRIME GOVERNMENT TAX EXEMPT
MONEY MONEY MONEY
MARKET FUND MARKET FUND MARKET FUND
(000) (000) (000)
- -------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 7,860 $ 23,901 $ 5,797
- -------------------------------------------------------------------------------------------------
Total Investment Income 7,860 23,901 5,797
- -------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 909 2,883 927
Shareholder Servicing Fees--Institutional Class 462 61 119
Shareholder Servicing Fees--Class A(1) 769 7,210 2,092
Shareholder Servicing Fees--Class S(1) 570 935 130
Administrative Fees 273 838 258
Trustee Fees 9 32 9
Transfer Agent Fees 36 110 34
Professional Fees 33 103 28
Printing Fees 9 24 5
Registration and Filing Fees 5 16 5
Custodian Fees 17 55 16
Insurance and Other Fees 34 116 37
- -------------------------------------------------------------------------------------------------
Total Expenses 3,126 12,383 3,660
- -------------------------------------------------------------------------------------------------
Recapture of Investment Advisory Fees Waived(2) 42 129 --
Less, Waiver of:
Investment Advisory Fees -- -- (213)
Administrative Fees (40) (124) (38)
Shareholder Servicing Fees -- Class A(1) (287) (2,698) (755)
Shareholder Servicing Fees -- Class S(1) (61) (101) (12)
Transfer Agent Fees (36) (110) (34)
- -------------------------------------------------------------------------------------------------
Net Expenses 2,744 9,479 2,608
- -------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 5,116 14,422 3,189
- -------------------------------------------------------------------------------------------------
Net Realized Gain From Securities Transactions 1 -- --
- -------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,117 $ 14,422 $ 3,189
=================================================================================================
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
(2) SEE NOTE 4 FOR ADVISORY FEES RECAPTURED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 51
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
AND THE YEAR ENDED SEPTEMBER 30, 2004
- --------------------------------------------------------------------------------
LARGE CAP VALUE LARGE CAP GROWTH
EQUITY FUND (000) EQUITY FUND (000)
----------------------- -----------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------- -----------------------
OPERATIONS:
Net Investment Income (Loss) $ 263 $ 367 $ 160 $ 20
Net Realized Gain (Loss) from
Security Transactions 3,092 1,919 (211) 270
Net Change in Unrealized Appreciation
(Depreciation) on Investments 362 4,512 1,791 1,045
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 3,717 6,798 1,740 1,335
- ---------------------------------------------------------------------------------- -----------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (224) (335) (137) (17)
CLASS A (38) (32) (26) --
Realized Capital Gains:
INSTITUTIONAL CLASS (1,585) -- -- --
CLASS A (323) -- -- --
CLASS R -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Total Dividends and Distributions (2,170) (367) (163) (17)
- ---------------------------------------------------------------------------------- -----------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 3,806 7,249 4,634 7,697
Shares Issued in Lieu of Dividends and Distributions 620 78 45 5
Shares Redeemed (3,003) (7,981) (1,574) (5,658)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 1,423 (654) 3,105 2,044
- ---------------------------------------------------------------------------------- -----------------------
CLASS A:
Shares Issued 3,070 4,721 1,944 3,941
Shares Issued in Lieu of Dividends and Distributions 294 21 18 --
Shares Redeemed (848) (702) (550) (719)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 2,516 4,040 1,412 3,222
- ---------------------------------------------------------------------------------- -----------------------
CLASS R:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Increase in Net Assets from
Class R Share Transactions -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 3,939 3,386 4,517 5,266
- ---------------------------------------------------------------------------------- -----------------------
Total Increase in Net Assets 5,486 9,817 6,094 6,584
- ---------------------------------------------------------------------------------- -----------------------
NET ASSETS:
Beginning of period 44,625 34,808 30,798 24,214
- ---------------------------------------------------------------------------------- -----------------------
End of period $ 50,111 $ 44,625 $ 36,892 $ 30,798
================================================================================== =======================
Undistributed (Distributions in Excess of)
Net Investment Income $ -- $ (1) $ -- $ 3
- ---------------------------------------------------------------------------------- -----------------------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 52
- --------------------------------------------------------------------------------
RCB SMALL CAP TECHNOLOGY GROWTH
VALUE FUND (000) FUND (000)
----------------------- -----------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------- -----------------------
OPERATIONS:
Net Investment Income (Loss) $ 48 $ (3) $ 14 $ (23)
Net Realized Gain (Loss) from
Security Transactions 4,260 2,093 (6) (242)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 147 4,851 128 175
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 4,455 6,941 136 (90)
- ---------------------------------------------------------------------------------- -----------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS -- -- -- --
CLASS A -- -- -- --
Realized Capital Gains:
INSTITUTIONAL CLASS (462) (23) -- --
CLASS A (480) (11) -- --
CLASS R (2,072) (53) -- --
- ---------------------------------------------------------------------------------- -----------------------
Total Dividends and Distributions (3,014) (87) -- --
- ---------------------------------------------------------------------------------- -----------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 5,893 4,885 273 268
Shares Issued in Lieu of Dividends and Distributions 325 14 -- --
Shares Redeemed (1,025) (3,741) (283) (185)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 5,193 1,158 (10) 83
- ---------------------------------------------------------------------------------- -----------------------
CLASS A:
Shares Issued 4,396 6,794 2 633
Shares Issued in Lieu of Dividends and Distributions 391 8 -- --
Shares Redeemed (759) (2,541) (8) (273)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 4,028 4,261 (6) 360
- ---------------------------------------------------------------------------------- -----------------------
CLASS R:
Shares Issued 16,788 20,199 -- --
Shares Issued in Lieu of Dividends and Distributions 1,992 52 -- --
Shares Redeemed (8,886) (2,432) -- --
- ---------------------------------------------------------------------------------- -----------------------
Increase in Net Assets from
Class R Share Transactions 9,894 17,819 -- --
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 19,115 23,238 (16) 443
- ---------------------------------------------------------------------------------- -----------------------
Total Increase in Net Assets 20,556 30,092 120 353
- ---------------------------------------------------------------------------------- -----------------------
NET ASSETS:
Beginning of period 52,979 22,887 2,216 1,863
- ---------------------------------------------------------------------------------- -----------------------
End of period $ 73,535 $ 52,979 $ 2,336 $ 2,216
================================================================================== =======================
Undistributed (Distributions in Excess of)
Net Investment Income $ 48 $ -- $ 14 $ --
- ---------------------------------------------------------------------------------- -----------------------
CORPORATE BOND
FUND (000)
-----------------------
2005 2004
- ----------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income (Loss) $ 936 $ 1,718
Net Realized Gain (Loss) from
Security Transactions (7) 302
Net Change in Unrealized Appreciation
(Depreciation) on Investments (1,216) (967)
- ----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (287) 1,053
- ----------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (907) (1,679)
CLASS A (29) (39)
Realized Capital Gains:
INSTITUTIONAL CLASS (293) (412)
CLASS A (10) (5)
CLASS R -- --
- ----------------------------------------------------------------------------------
Total Dividends and Distributions (1,239) (2,135)
- ----------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 6,860 16,489
Shares Issued in Lieu of Dividends and Distributions 237 353
Shares Redeemed (2,536) (10,957)
- ----------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 4,561 5,885
- ----------------------------------------------------------------------------------
CLASS A:
Shares Issued 273 1,209
Shares Issued in Lieu of Dividends and Distributions 19 26
Shares Redeemed (332) (522)
- ----------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions (40) 713
- ----------------------------------------------------------------------------------
CLASS R:
Shares Issued -- --
Shares Issued in Lieu of Dividends and Distributions -- --
Shares Redeemed -- --
- ----------------------------------------------------------------------------------
Increase in Net Assets from
Class R Share Transactions -- --
- ----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 4,521 6,598
- ----------------------------------------------------------------------------------
Total Increase in Net Assets 2,995 5,516
- ----------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 48,602 43,086
- ----------------------------------------------------------------------------------
End of period $ 51,597 $ 48,602
==================================================================================
Undistributed (Distributions in Excess of)
Net Investment Income $ -- $ --
- ----------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 53
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER
30, 2004
- --------------------------------------------------------------------------------
GOVERNMENT CALIFORNIA TAX EXEMPT
BOND FUND (000) BOND FUND (000)
----------------------- -----------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------- -----------------------
OPERATIONS:
Net Investment Income $ 306 $ 454 $ 284 $ 459
Net Realized Gain (Loss) from
Security Transactions (25) 116 62 38
Net Change in Unrealized Appreciation
(Depreciation) on Investments (285) (383) (429) (112)
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (4) 187 (83) 385
- ---------------------------------------------------------------------------------- -----------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (304) (446) (252) (425)
CLASS A (5) (4) (32) (34)
CLASS S -- -- -- --
Realized Capital Gains:
INSTITUTIONAL CLASS (118) (210) (70) (189)
CLASS A (2) (1) (11) (13)
CLASS S -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Total Dividends and Distributions (429) (661) (365) (661)
- ---------------------------------------------------------------------------------- -----------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 5,486 9,591 5,140 7,171
Shares Issued in Lieu of Dividends and Distributions 120 179 69 83
Shares Redeemed (1,331) (3,994) (3,175) (3,735)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 4,275 5,776 2,034 3,519
- ---------------------------------------------------------------------------------- -----------------------
CLASS A:
Shares Issued 76 433 300 1,710
Shares Issued in Lieu of Dividends and Distributions 3 3 24 32
Shares Redeemed (140) (15) (731) (35)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions (61) 421 (407) 1,707
- ---------------------------------------------------------------------------------- -----------------------
CLASS S:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class S Share Transactions -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 4,214 6,197 1,627 5,226
- ---------------------------------------------------------------------------------- -----------------------
Total Increase (Decrease) in Net Assets 3,781 5,723 1,179 4,950
- ---------------------------------------------------------------------------------- -----------------------
NET ASSETS:
Beginning of period 21,337 15,614 20,228 15,278
- ---------------------------------------------------------------------------------- -----------------------
End of period $ 25,118 $ 21,337 $ 21,407 $ 20,228
================================================================================== =======================
Undistributed (Distributions in excess of )
Net Investment Income $ -- $ -- $ -- $ --
- ---------------------------------------------------------------------------------- -----------------------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 54
- --------------------------------------------------------------------------------
HIGH YIELD PRIME MONEY
BOND FUND (000) MARKET FUND (000)
----------------------- -----------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------- -----------------------
OPERATIONS:
Net Investment Income $ 1,758 $ 2,860 $ 5,116 $ 2,709
Net Realized Gain (Loss) from
Security Transactions 296 570 1 4
Net Change in Unrealized Appreciation
(Depreciation) on Investments (939) 735 -- --
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,115 4,165 5,117 2,713
- ---------------------------------------------------------------------------------- -----------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (933) (1,366) (2,882) (1,845)
CLASS A (813) (1,480) (1,370) (642)
CLASS S -- -- (864) (233)
Realized Capital Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS A -- -- -- --
CLASS S -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Total Dividends and Distributions (1,746) (2,846) (5,116) (2,720)
- ---------------------------------------------------------------------------------- -----------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 4,053 9,880 630,630 1,030,373
Shares Issued in Lieu of Dividends and Distributions 482 736 519 375
Shares Redeemed (3,727) (1,740) (629,026) (950,623)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 808 8,876 2,123 80,125
- ---------------------------------------------------------------------------------- -----------------------
CLASS A:
Shares Issued 2,758 12,671 397,034 697,874
Shares Issued in Lieu of Dividends and Distributions 499 897 257 154
Shares Redeemed (2,442) (10,513) (347,099) (702,159)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 815 3,055 50,192 (4,131)
- ---------------------------------------------------------------------------------- -----------------------
CLASS S:
Shares Issued -- -- 267,524 460,307
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- (241,825) (463,168)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class S Share Transactions -- -- 25,699 (2,861)
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 1,623 11,931 78,014 73,133
- ---------------------------------------------------------------------------------- -----------------------
Total Increase (Decrease) in Net Assets 992 13,250 78,015 73,126
- ---------------------------------------------------------------------------------- -----------------------
NET ASSETS:
Beginning of period 43,515 30,265 684,028 610,902
- ---------------------------------------------------------------------------------- -----------------------
End of period $ 44,507 $ 43,515 $ 762,043 $ 684,028
================================================================================== =======================
Undistributed (Distributions in excess of )
Net Investment Income $ -- $ -- $ -- $ --
- ---------------------------------------------------------------------------------- -----------------------
GOVERNMENT MONEY CALIFORNIA TAX EXEMPT
MARKET FUND (000) MONEY MARKET FUND (000)
----------------------- -----------------------
2005 2004 2005 2004
- ---------------------------------------------------------------------------------- -----------------------
OPERATIONS:
Net Investment Income $ 14,422 $ 7,492 $ 3,189 $ 2,231
Net Realized Gain (Loss) from
Security Transactions -- 6 -- 177
Net Change in Unrealized Appreciation
(Depreciation) on Investments -- -- -- --
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 14,422 7,498 3,189 2,408
- ---------------------------------------------------------------------------------- -----------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (376) (293) (539) (539)
CLASS A (12,656) (6,772) (2,531) (1,641)
CLASS S (1,392) (427) (123) (51)
Realized Capital Gains:
INSTITUTIONAL CLASS -- -- (28) --
CLASS A -- -- (144) --
CLASS S -- -- (7) --
- ---------------------------------------------------------------------------------- -----------------------
Total Dividends and Distributions (14,424) (7,492) (3,372) (2,231)
- ---------------------------------------------------------------------------------- -----------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 236,199 579,828 561,147 1,066,689
Shares Issued in Lieu of Dividends and Distributions 3 1 3 1
Shares Redeemed (234,274) (593,062) (545,186) (1,075,122)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 1,928 (13,233) 15,964 (8,432)
- ---------------------------------------------------------------------------------- -----------------------
CLASS A:
Shares Issued 2,606,953 4,331,865 935,769 1,454,752
Shares Issued in Lieu of Dividends and Distributions 8,539 4,840 2,179 1,367
Shares Redeemed (2,536,642) (4,539,896) (855,882) (1,490,415)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 78,850 (203,191) 82,066 (34,296)
- ---------------------------------------------------------------------------------- -----------------------
CLASS S:
Shares Issued 325,434 739,765 146,172 256,655
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed (337,790) (668,217) (123,647) (247,146)
- ---------------------------------------------------------------------------------- -----------------------
Increase (Decrease) in Net Assets from
Class S Share Transactions (12,356) 71,548 22,525 9,509
- ---------------------------------------------------------------------------------- -----------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 68,422 (144,876) 120,555 (33,219)
- ---------------------------------------------------------------------------------- -----------------------
Total Increase (Decrease) in Net Assets 68,420 (144,870) 120,372 (33,042)
- ---------------------------------------------------------------------------------- -----------------------
NET ASSETS:
Beginning of period 2,164,370 2,309,240 617,962 651,004
- ---------------------------------------------------------------------------------- -----------------------
End of period $2,232,790 $2,164,370 $ 738,334 $ 617,962
================================================================================== =======================
Undistributed (Distributions in excess of )
Net Investment Income $ (2) $ -- $ -- $ 4
- ---------------------------------------------------------------------------------- -----------------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 55
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
AND THE YEAR OR PERIOD ENDED SEPTEMBER 30,
- --------------------------------------------------------------------------------
NET
NET REALIZED AND DISTRIBUTIONS NET NET
ASSET NET UNREALIZED DIVIDENDS FROM ASSET ASSETS
VALUE INVESTMENT GAINS (LOSSES) FROM NET REALIZED VALUE END
BEGINNING INCOME ON INVESTMENT CAPITAL END TOTAL OF PERIOD
OF PERIOD (LOSS) SECURITIES INCOME GAINS OF PERIOD RETURN+++ (000)
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2005* $ 8.77 $ 0.05^ $ 0.66^ $(0.05) $ (0.36) $ 9.07 8.16% $41,075
2004 7.41 0.08^ 1.36^ (0.08) -- 8.77 19.40 38,344
2003 6.04 0.07 1.37 (0.07) -- 7.41 24.03 33,016
2002 7.63 0.07 (1.47) (0.07) (0.12) 6.04 (18.88) 23,325
2001 10.04 0.07 (1.57) (0.07) (0.84) 7.63 (16.36) 27,293
2000 10.00 0.06 0.04 (0.06) -- 10.04 0.99 29,344
Class A (commenced operations on April 13, 2000)
2005* $ 8.76 $ 0.04^ $ 0.66^ $(0.04) $ (0.36) $ 9.06 8.04% $ 9,036
2004 7.41 0.05^ 1.36^ (0.06) -- 8.76 19.01 6,281
2003 6.04 0.06 1.37 (0.06) -- 7.41 23.75 1,792
2002 7.62 0.05 (1.46) (0.05) (0.12) 6.04 (18.97) 769
2001 10.04 0.04 (1.58) (0.04) (0.84) 7.62 (16.68) 704
2000 9.55 0.03 0.49 (0.03) -- 10.04 5.48 732
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2005* $ 6.76 $ 0.03^ $ 0.35^ $(0.03) $ -- $ 7.11 5.68% $29,971
2004 6.37 0.01^ 0.38^ --^^ -- 6.76 6.20 25,575
2003 5.25 0.01^ 1.12^ (0.01) -- 6.37 21.51 22,249
2002 6.36 -- (1.11) -- -- 5.25 (17.45) 14,195
2001 9.37 (0.02) (2.99) -- -- 6.36 (32.12) 15,550
2000 10.00 (0.02) (0.61) -- -- 9.37 (6.30) 21,639
Class A (commenced operations on March 28, 2000)
2005* $ 6.69 $ 0.03^ $ 0.35^ $(0.03) $ -- $ 7.04 5.62% $ 6,921
2004 6.32 (0.01)^ 0.38^ --^^ -- 6.69 5.87 5,223
2003 5.21 (0.01)^ 1.12^ -- -- 6.32 21.31 1,965
2002 6.33 (0.02) (1.10) -- -- 5.21 (17.69) 798
2001 9.35 (0.03) (2.99) -- -- 6.33 (32.30) 636
2000 10.70 (0.01) (1.34) -- -- 9.35 (12.62) 592
- -------------------------------------------------------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
Institutional Class (commenced operations on October 3, 2001)
2005* $27.30 $ 0.05^ $ 2.08^ $ -- $ (1.37) $28.06 7.87% $14,377
2004 21.92 0.06^ 5.40^ -- (0.08) 27.30 24.97 8,955
2003 15.06 (0.04)^ 6.90^ -- -- 21.92 45.55 6,236
2002 17.11 (0.07) (1.98) -- -- 15.06 (11.98) 1,768
Class A (commenced operations on October 3, 2001)
2005* $27.13 $ 0.01^ $ 2.07^ $ -- $ (1.37) $27.84 7.73% $11,768
2004 21.84 (0.02)^ 5.39^ -- (0.08) 27.13 24.64 7,551
2003 15.04 (0.08)^ 6.88^ -- -- 21.84 45.21 2,384
2002 17.11 (0.05) (2.02) -- -- 15.04 (12.10) 410
Class R (commenced operations on September 30, 1998)(2)
2005* $27.09 $ 0.02^ $ 2.05^ $ -- $ (1.37) $27.79 7.70% $47,390
2004 21.81 (0.02)^ 5.38^ -- (0.08) 27.09 24.63 36,473
2003 15.02 (0.07)^ 6.86^ -- -- 21.81 45.21 14,267
2002 16.94 (0.12) (1.80) -- -- 15.02 (11.33) 10,174
2001** 18.84 (0.02) (1.88) -- -- 16.94 (10.08) 8,122
2001+ 15.80 (0.09) 3.85 -- (0.72)(3) 18.84 24.34 8,869
2000+ 15.93 (0.06) 0.52 -- (0.59) 15.80 3.28 5,193
- -------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND
Institutional Class (commenced operations on October 3, 2000)
2005* $ 3.46 $ 0.02^ $ 0.19^ $ -- $ -- $ 3.67 6.07% $ 1,026
2004 3.50 (0.03)^ (0.01)^ -- -- 3.46 (1.14) 976
2003 2.26 (0.02) 1.26 -- -- 3.50 54.87 913
2002 3.54 (0.03) (1.25) -- -- 2.26 (36.16) 565
2001 10.00 (0.02) (6.43) (0.01) -- 3.54 (64.56) 907
Class A (commenced operations on October 23, 2000)
2005* $ 3.42 $ 0.02^ $ 0.19^ $ -- $ -- $ 3.63 6.14% $ 1,310
2004 3.48 (0.04)^ (0.02)^ -- -- 3.42 (1.72) 1,240
2003 2.25 (0.03) 1.26 -- -- 3.48 54.67 950
2002 3.54 (0.04) (1.25) -- -- 2.25 (36.44) 432
2001 10.31 (0.03) (6.73) (0.01) -- 3.54 (65.37) 481
RATIO
OF EXPENSES
RATIO TO AVERAGE
OF NET NET ASSETS
RATIO INVESTMENT (EXCLUDING
OF EXPENSES INCOME (LOSS) WAIVERS & PORTFOLIO
TO AVERAGE TO AVERAGE RECAPTURE TURNOVER
NET ASSETS(1) NET ASSETS(1) FEES)(1) RATE
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2005* 0.96% 1.13% 0.98% 19%
2004 0.97 0.92 0.97 36
2003 1.00 1.12 1.00 39
2002 1.00 0.90 1.05 42
2001 1.00 0.74 1.09 51
2000 1.00 0.87 1.12 38
Class A (commenced operations on April 13, 2000)
2005* 1.21% 0.88% 1.23% 19%
2004 1.22 0.64 1.22 36
2003 1.25 0.84 1.25 39
2002 1.25 0.65 1.30 42
2001 1.25 0.49 1.34 51
2000 1.25 0.62 1.37 38
- -------------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2005* 0.98% 0.98% 1.00% 14%
2004 1.01 0.10 1.01 50
2003 1.05 0.16 1.03 43
2002 1.05 (0.04) 1.09 31
2001 1.05 (0.22) 1.13 58
2000 1.05 (0.31) 1.16 51
Class A (commenced operations on March 28, 2000)
2005* 1.23% 0.75% 1.25% 14%
2004 1.26 (0.14) 1.26 50
2003 1.30 (0.09) 1.29 43
2002 1.30 (0.29) 1.34 31
2001 1.30 (0.47) 1.38 58
2000 1.30 (0.56) 1.41 51
- -------------------------------------------------------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
Institutional Class (commenced operations on October 3, 2001)
2005* 1.19% 0.35% 1.20% 25%
2004 1.21 0.23 1.20 40
2003 1.24 (0.20) 1.24 65
2002 1.24 (0.46) 1.28 39
Class A (commenced operations on October 3, 2001)
2005* 1.43% 0.09% 1.45% 25%
2004 1.49 (0.07) 1.48 40
2003 1.49 (0.45) 1.49 65
2002 1.49 (0.74) 1.53 39
Class R (commenced operations on September 30, 1998)(2)
2005* 1.43% 0.11% 1.45% 25%
2004 1.49 (0.07) 1.48 40
2003 1.49 (0.41) 1.49 65
2002 1.49 (0.70) 1.53 39
2001** 1.26 (0.51) 2.63 5
2001+ 1.49 (0.69) 2.85 43
2000+ 1.49 (0.50) 3.49 60
- -------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND
Institutional Class (commenced operations on October 3, 2000)
2005* 1.20% 1.30% 1.21% 21%
2004 1.20 (0.82) 1.28 33
2003 1.20 (0.78) 1.36 29
2002 1.20 (0.88) 1.37 24
2001 1.20 (0.38)++ 1.41 23
Class A (commenced operations on October 23, 2000)
2005* 1.50% 1.01% 1.51% 21%
2004 1.50 (1.12) 1.58 33
2003 1.50 (1.08) 1.66 29
2002 1.50 (1.18) 1.67 24
2001 1.50 (1.04)++ 1.71 23
* FOR THE SIX MONTHS ENDED MARCH 31, 2005.
** FOR THE THREE MONTH PERIOD ENDING SEPTEMBER 30, 2001.
+ FOR THE YEARS ENDING JUNE 30.
++ RATIOS REFLECT THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET ASSETS
ASSOCIATED WITH COMMENCEMENT OF OPERATIONS AND THE EFFECTS OF
ANNUALIZATION.
+++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. TOTAL RETURN FIGURES DO NOT INCLUDE APPLICABLE SALES
LOADS. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
^ PER SHARE CALCULATIONS ARE BASED ON AVERAGE SHARES OUTSTANDING THROUGHOUT
THE PERIOD.
^^ AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) ON OCTOBER 3, 2001, THE RCB SMALL CAP FUND EXCHANGED ALL OF ITS ASSETS AND
LIABILITIES FOR SHARES OF THE CNI CHARTER RCB SMALL CAP VALUE FUND. THE
CNI CHARTER RCB SMALL CAP VALUE FUND IS THE ACCOUNTING SURVIVOR IN THIS
TRANSACTION, AND AS A RESULT, ITS BASIS OF ACCOUNTING FOR ASSETS AND
LIABILITIES AND ITS OPERATING RESULTS FOR THE PERIODS PRIOR TO OCTOBER 3,
2001 HAVE BEEN CARRIED FORWARD IN THESE FINANCIAL HIGHLIGHTS.
(3) INCLUDES RETURN OF CAPITAL OF $0.35 PER SHARE.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 56
- --------------------------------------------------------------------------------
NET
NET REALIZED AND DISTRIBUTIONS NET NET
ASSET NET UNREALIZED DIVIDENDS FROM ASSET ASSETS
VALUE INVESTMENT GAINS (LOSSES) FROM NET REALIZED VALUE END
BEGINNING INCOME ON INVESTMENT CAPITAL END TOTAL OF PERIOD
OF PERIOD (LOSS) SECURITIES INCOME GAINS OF PERIOD RETURN++ (000)
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* $10.60 $ 0.20^ $(0.25)^ $(0.20) $(0.06) $10.29 (0.47)% $50,166
2004 10.89 0.41^ (0.18)^ (0.41) (0.11) 10.60 2.15 47,080
2003 10.65 0.46 0.24 (0.46) -- 10.89 6.74 42,256
2002 10.72 0.53 0.09 (0.53) (0.16) 10.65 6.06 40,807
2001 10.14 0.60 0.60 (0.60) (0.02) 10.72 12.14 32,800
2000 10.00 0.42 0.14 (0.42) -- 10.14 5.76 22,711
Class A (commenced operations on April 13, 2000)
2005* $10.61 $ 0.18^ $(0.26)^ $(0.18) $(0.06) $10.29 (0.69)% $ 1,431
2004 10.89 0.37^ (0.16)^ (0.38) (0.11) 10.61 1.99 1,522
2003 10.65 0.44 0.23 (0.43) -- 10.89 6.47 830
2002 10.73 0.50 0.08 (0.50) (0.16) 10.65 5.69 544
2001 10.13 0.57 0.62 (0.57) (0.02) 10.73 12.08 93
2000 10.06 0.31 0.07 (0.31) -- 10.13 3.81 424
- -------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* $10.62 $ 0.14^ $(0.14)^ $(0.14) $(0.06) $10.42 0.00% $24,751
2004 10.93 0.25^ (0.17)^ (0.25) (0.14) 10.62 0.81 20,901
2003 11.02 0.36^ (0.07)^ (0.37) (0.01) 10.93 2.68** 15,596
2002 10.80 0.44 0.34 (0.44) (0.12) 11.02 7.53 14,502
2001 10.17 0.53 0.63 (0.53) -- 10.80 11.67 12,648
2000 10.00 0.38 0.17 (0.38) -- 10.17 5.64 11,233
Class A (commenced operations on April 13, 2000)
2005* $10.64 $ 0.13^ $(0.13)^ $(0.13) $(0.06) $10.45 (0.03)% $ 367
2004 10.95 0.23^ (0.17)^ (0.23) (0.14) 10.64 0.55 436
2003 11.01 0.33^ (0.04)^ (0.34) (0.01) 10.95 2.71** 18
2002 10.77 0.43 0.34 (0.41) (0.12) 11.01 7.47 525
2001 10.16 0.49 0.63 (0.51) -- 10.77 11.25 4
2000 10.06 0.23 0.10 (0.23) -- 10.16 3.37 49
- -------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* $10.41 $ 0.14^ $(0.17)^ $(0.14) $(0.04) $10.20 (0.31)% $19,427
2004 10.60 0.27^ (0.06)^ (0.27) (0.13) 10.41 2.00 17,789
2003 10.83 0.31 (0.04) (0.31) (0.19) 10.60 2.63 14,546
2002 10.50 0.36 0.41 (0.35) (0.09) 10.83 7.58 16,147
2001 10.22 0.43 0.30 (0.43) (0.02) 10.50 7.21 15,526
2000 10.00 0.32 0.22 (0.32) -- 10.22 5.43 11,638
Class A (commenced operations on April 13, 2000)
2005* $10.44 $ 0.12^ $(0.17)^ $(0.12) $(0.04) $10.23 (0.44)% $ 1,980
2004 10.62 0.24^ (0.05)^ (0.24) (0.13) 10.44 1.84 2,439
2003 10.85 0.27 (0.02) (0.29) (0.19) 10.62 2.37 732
2002 10.51 0.33 0.43 (0.33) (0.09) 10.85 7.40 13
2001 10.22 0.41 0.30 (0.40) (0.02) 10.51 7.08 6
2000 10.10 0.20 0.12 (0.20) -- 10.22 3.20 1
- -------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* $ 9.31 $ 0.36^ $(0.12)^ $(0.36) $ -- $ 9.19 2.55% $23,367
2004 8.95 0.72^ 0.36^ (0.72) -- 9.31 12.47 22,860
2003 8.16 0.76 0.79 (0.76) -- 8.95 19.75 13,387
2002 8.57 0.83 (0.40) (0.84) -- 8.16 4.80 10,020
2001 9.76 0.98 (1.18) (0.98) (0.01) 8.57 (2.45) 9,310
2000 10.00 0.64 (0.24) (0.64) -- 9.76 4.21 9,877
Class A (commenced operations on January 14, 2000)
2005* $ 9.31 $ 0.35^ $(0.12)^ $(0.35) $ -- $ 9.19 2.40% $21,140
2004 8.95 0.70^ 0.35^ (0.69) -- 9.31 12.14 20,655
2003 8.16 0.74 0.78 (0.73) -- 8.95 19.39 16,878
2002 8.57 0.81 (0.40) (0.82) -- 8.16 4.49 9,397
2001 9.76 0.95 (1.18) (0.95) (0.01) 8.57 (2.74) 3,973
2000 10.00 0.62 (0.24) (0.62) -- 9.76 3.94 1,043
RATIO
OF EXPENSES
RATIO TO AVERAGE
OF NET NET ASSETS
RATIO INVESTMENT (EXCLUDING
OF EXPENSES INCOME (LOSS) WAIVERS & PORTFOLIO
TO AVERAGE TO AVERAGE RECAPTURE TURNOVER
NET ASSETS(1) NET ASSETS(1) FEES)(1) RATE
- -------------------------------------------------------------------------------------------------------------------------------
CORPORATE BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* 0.75% 3.77% 0.76% 6%
2004 0.75 3.82 0.79 57
2003 0.75 4.30 0.78 66
2002 0.75 5.04 0.82 55
2001 0.75 5.71+ 0.86 83
2000 0.75 6.09 0.91 6
Class A (commenced operations on April 13, 2000)
2005* 1.00% 3.51% 1.01% 6%
2004 1.00 3.51 1.04 57
2003 1.00 4.00 1.03 66
2002 1.00 4.71 1.07 55
2001 1.00 5.67+ 1.11 83
2000 1.00 5.84 1.16 6
- -------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* 0.70% 2.70% 0.79% 12%
2004 0.70 2.39 0.81 169
2003 0.70 3.26 0.81 54
2002 0.70 4.11+ 0.86 70
2001 0.70 5.04+ 0.91 126
2000 0.70 5.49 0.97 21
Class A (commenced operations on April 13, 2000)
2005* 0.95% 2.44% 1.04% 12%
2004 0.95 2.14 1.06 169
2003 0.95 3.00 1.06 54
2002 0.95 3.70 1.11 70
2001 0.95 5.03+ 1.16 126
2000 0.95 5.24 1.22 21
- -------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* 0.50% 2.68% 0.63% 28%
2004 0.50 2.55 0.65 51
2003 0.50 2.91 0.65 68
2002 0.50 3.33 0.70 90
2001 0.50 4.11 0.75 56
2000 0.50 4.50 0.79 49
Class A (commenced operations on April 13, 2000)
2005* 0.75% 2.41% 0.88% 28%
2004 0.75 2.29 0.90 51
2003 0.75 2.62 0.90 68
2002 0.75 3.05 0.95 90
2001 0.75 3.82 1.00 56
2000 0.75 4.25 1.04 49
- -------------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2005* 1.00% 7.70% 1.11% 15%
2004 1.00 7.87 1.14 35
2003 1.00 8.84 1.13 36
2002 1.00 9.48 1.18 30
2001 1.00 10.52 1.23 12
2000 1.00 9.41 1.31 5
Class A (commenced operations on January 14, 2000)
2005* 1.30% 7.41% 1.41% 15%
2004 1.30 7.56 1.44 35
2003 1.30 8.44 1.43 36
2002 1.30 9.03 1.48 30
2001 1.30 10.14 1.53 12
2000 1.30 9.11 1.61 5
* FOR THE SIX MONTHS ENDED MARCH 31, 2005.
** TOTAL RETURN FOR CLASS A OF THE GOVERNMENT BOND FUND IS GREATER THAN THE
INSTITUTIONAL CLASS'S DUE TO A LARGE REDEMPTION DURING THE YEAR.
+ RATIOS REFLECT THE IMPACT OF SIGNIFICANT CHANGES IN AVERAGE NET ASSETS AND
THE EFFECTS OF ANNUALIZATION.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
^ PER SHARE CALCULATIONS ARE BASED ON THE AVERAGE SHARES OUTSTANDING
THROUGHOUT THE PERIOD.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 57
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
AND THE YEAR OR PERIOD ENDED SEPTEMBER 30, OR PERIOD ENDED OCTOBER 31,
- --------------------------------------------------------------------------------
NET NET NET
ASSET DIVIDENDS ASSET ASSETS
VALUE NET FROM NET VALUE END
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD
OF PERIOD INCOME INCOME OF PERIOD RETURN+++ (000)
- --------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
Institutional Class (commenced operations on March 23, 1998)
2005* $1.00 $0.008 $(0.008) $1.00 0.78% $ 369,332
2004 1.00 0.006 (0.006) 1.00 0.58 367,209
2003 1.00 0.007 (0.007) 1.00 0.68 287,087
2002 1.00 0.014 (0.014) 1.00 1.37 290,778
2001 1.00 0.046 (0.046) 1.00 4.65 304,698
2000** 1.00 0.051 (0.051) 1.00 5.24 201,688
Class A (commenced operations on October 18, 1999)
2005* $1.00 $0.007 $(0.007) $1.00 0.67% $ 251,250
2004 1.00 0.004 (0.004) 1.00 0.36 201,058
2003 1.00 0.005 (0.005) 1.00 0.46 205,191
2002 1.00 0.011 (0.011) 1.00 1.15 228,807
2001 1.00 0.043 (0.043) 1.00 4.42 243,340
2000** 1.00 0.049 (0.049) 1.00 5.03 251,225
Class S (commenced operations on October 26, 1999)
2005* $1.00 $0.006 $(0.006) $1.00 0.57% $ 141,461
2004 1.00 0.002 (0.002) 1.00 0.21 115,761
2003 1.00 0.003 (0.003) 1.00 0.29 118,624
2002 1.00 0.009 (0.009) 1.00 0.95 129,180
2001 1.00 0.041 (0.041) 1.00 4.21 126,281
2000** 1.00 0.047 (0.047) 1.00 4.83 72,287
- --------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Institutional Class (commenced operations on April 3, 2000)
2005* $1.00 $0.008 $(0.008) $1.00 0.77% $ 45,536
2004 1.00 0.006 (0.006) 1.00 0.57 43,608
2003 1.00 0.007 (0.007) 1.00 0.70 56,841
2002 1.00 0.014 (0.014) 1.00 1.38 51,985
2001 1.00 0.046 (0.046) 1.00 4.70 76,802
2000** 1.00 0.029 (0.029) 1.00 2.90 27,849
Class A (commenced operations on June 21, 1999)
2005* $1.00 $0.007 $(0.007) $1.00 0.66% $1,936,524
2004 1.00 0.004 (0.004) 1.00 0.35 1,857,676
2003 1.00 0.005 (0.005) 1.00 0.48 2,060,860
2002 1.00 0.012 (0.012) 1.00 1.16 2,149,151
2001 1.00 0.044 (0.044) 1.00 4.47 2,531,500
2000** 1.00 0.049 (0.049) 1.00 4.96 1,887,860
Class S (commenced operations on October 6, 1999)
2005* $1.00 $0.006 $(0.006) $1.00 0.56% $ 250,730
2004 1.00 0.002 (0.002) 1.00 0.20 263,086
2003 1.00 0.003 (0.003) 1.00 0.30 191,539
2002 1.00 0.010 (0.010) 1.00 0.96 219,387
2001 1.00 0.042 (0.042) 1.00 4.26 147,035
2000** 1.00 0.047 (0.047) 1.00 4.77 41,593
- --------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
Institutional Class (commenced operations on April 3, 2000)
2005* $1.00 $0.006 $(0.006) $1.00 0.59% $ 95,350
2004 1.00 0.005 (0.005) 1.00 0.52 79,413
2003 1.00 0.006 (0.006) 1.00 0.62 87,820
2002 1.00 0.010 (0.010) 1.00 0.98 58,923
2001 1.00 0.025 (0.025) 1.00 2.51 50,543
2000** 1.00 0.016 (0.016) 1.00 1.64 6,825
Class A (commenced operations on June 21, 1999)
2005* $1.00 $0.005 $(0.005) $1.00 0.48% $ 586,945
2004 1.00 0.003 (0.003) 1.00 0.29 505,029
2003 1.00 0.004 (0.004) 1.00 0.41 539,182
2002 1.00 0.007 (0.007) 1.00 0.75 519,269
2001 1.00 0.023 (0.023) 1.00 2.28 638,446
2000** 1.00 0.025 (0.025) 1.00 2.55 549,237
Class S (commenced operations on November 12, 1999)
2005* $1.00 $0.004 $(0.004) $1.00 0.38% $ 56,039
2004 1.00 0.002 (0.002) 1.00 0.15 33,520
2003 1.00 0.003 (0.003) 1.00 0.27 24,002
2002 1.00 0.005 (0.005) 1.00 0.55 29,626
2001 1.00 0.021 (0.021) 1.00 2.08 16,851
2000** 1.00 0.023 (0.023) 1.00 2.30 7,723
RATIO RATIO
OF NET OF EXPENSES
RATIO INVESTMENT TO AVERAGE
OF EXPENSES INCOME NET ASSETS
TO AVERAGE TO AVERAGE (EXCLUDING
NET ASSETS(1) NET ASSETS(1) WAIVERS)(1)
- --------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
Institutional Class (commenced operations on March 23, 1998)
2005* 0.60% 1.56% 0.61%
2004 0.63 0.59 0.63
2003 0.63 0.68 0.64
2002 0.63 1.37 0.67
2001 0.63 4.42++ 0.71
2000** 0.63 5.62+ 0.71
Class A (commenced operations on October 18, 1999)
2005* 0.83% 1.33% 1.11%
2004 0.85 0.35 1.13
2003 0.85 0.47 1.14
2002 0.85 1.15 1.17
2001 0.85 4.39++ 1.21
2000** 0.85 5.61+ 1.21
Class S (commenced operations on October 26, 1999)
2005* 1.02% 1.14% 1.11%
2004 1.00 0.21 1.13
2003 1.03 0.29 1.14
2002 1.05 0.95 1.17
2001 1.05 4.12++ 1.21
2000** 1.05 5.47+ 1.21
- --------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Institutional Class (commenced operations on April 3, 2000)
2005* 0.62% 1.54% 0.63%
2004 0.63 0.56 0.64
2003 0.63 0.68 0.64
2002 0.63 1.43 0.66
2001 0.63 3.97++ 0.66
2000** 0.63 5.84 0.68
Class A (commenced operations on June 21, 1999)
2005* 0.84% 1.32% 1.13%
2004 0.85 0.35 1.14
2003 0.85 0.48 1.14
2002 0.85 1.18 1.16
2001 0.85 4.27++ 1.16
2000** 0.85 5.32 1.18
Class S (commenced operations on October 6, 1999)
2005* 1.04% 1.12% 1.13%
2004 1.00 0.21 1.14
2003 1.03 0.31 1.14
2002 1.05 0.93 1.16
2001 1.05 3.62++ 1.16
2000** 1.05 5.39 1.18
- --------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
Institutional Class (commenced operations on April 3, 2000)
2005* 0.55% 1.13% 0.63%
2004 0.55 0.51 0.65
2003 0.55 0.59 0.65
2002 0.55 0.96 0.69
2001 0.55 2.12++ 0.72
2000** 0.55 3.29 0.74
Class A (commenced operations on June 21, 1999)
2005* 0.78% 0.91% 1.13%
2004 0.78 0.29 1.15
2003 0.76 0.41 1.15
2002 0.78 0.75 1.19
2001 0.78 2.22++ 1.22
2000** 0.78 2.74 1.24
Class S (commenced operations on November 12, 1999)
2005* 0.98% 0.71% 1.15%
2004 0.91 0.15 1.15
2003 0.89 0.27 1.15
2002 0.98 0.53 1.19
2001 0.98 1.96++ 1.22
2000** 0.98 2.69 1.24
* FOR THE SIX MONTHS ENDED MARCH 31, 2005.
** THE FUND'S YEAR-END CHANGED FROM OCTOBER 31 TO SEPTEMBER 30.
+ RATIOS REFLECT THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET ASSETS
ASSOCIATED WITH COMMENCEMENT OF OPERATIONS AND THE EFFECTS OF
ANNUALIZATION.
++ RATIOS REFLECT THE IMPACT OF SIGNIFICANT CHANGES IN AVERAGE NET ASSETS AND
THE EFFECTS OF ANNUALIZATION.
+++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT
A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 58
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION:
The CNI Charter Funds, a Delaware statutory trust (the "Trust"), is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company with eleven portfolios. The financial statements included
herein are those of the Large Cap Value Equity Fund, Large Cap Growth Equity
Fund, RCB Small Cap Value Fund, Technology Growth Fund (collectively, the
"Equity Funds"); Corporate Bond Fund, Government Bond Fund, California Tax
Exempt Bond Fund, High Yield Bond Fund (collectively, the "Fixed Income Funds");
Prime Money Market Fund, Government Money Market Fund and California Tax Exempt
Money Market Fund (collectively, the "Money Market Funds"); (each a "Fund",
collectively, the "Funds"). The Equity and Fixed Income Funds are registered to
offer Institutional and Class A Shares; in addition, the RCB Small Cap Value
Fund is registered to offer Class R shares. The Money Market Funds are
registered to offer Institutional, Class A and Class S Shares. The assets of
each Fund are segregated, and a shareholder's interest is limited to the Fund in
which shares are held. The Funds' prospectuses provide a description of each
Fund's investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Funds.
USE OF ESTIMATES - The preparation of financial statements in conformity with
U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
SECURITY VALUATION - Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If
available, debt securities are priced based upon valuations provided by
independent, third-party pricing agents. Such values generally reflect the last
reported sales price if the security is actively traded. The third-party pricing
agents may also value debt securities at an evaluated bid price by employing
methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value for
such securities. Debt obligations with remaining maturities of sixty days or
less may be valued at their amortized cost, which approximates market value. The
prices for foreign securities are reported in local currency and converted to
U.S. dollars using currency exchange rates. Prices for most securities held in
the Funds are provided daily by recognized independent pricing agents. If a
security price cannot be obtained from an independent, third-party pricing
agent, the Funds seek to obtain a bid price from at least one independent
broker.
Securities for which market prices are not "readily available" are valued in
accordance with Fair Value Procedures established by the Funds' Board of
Directors. The Funds' Fair Value Procedures are implemented through a Fair Value
Committee (the "Committee") designated by the Funds' Board of Trustees. Some of
the more common reasons that may necessitate that a security be valued using
Fair Value Procedures include: the security's trading has been halted or
suspended; the security has been de-listed from a national exchange; the
security's primary trading market is temporarily closed at a time when under
normal conditions it would be open; or the security's primary pricing source is
not able or willing to provide a price. When a security is valued in accordance
with the Fair Value Procedures, the Committee will determine the value after
taking into consideration relevant information reasonably available to the
Committee.
SECURITY TRANSACTIONS AND RELATED INCOME - Security transactions are accounted
for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold. Interest income is recognized on the
accrual basis and dividend income is recognized on the ex-dividend date.
Purchase discounts and premiums on securities held by the Funds are accreted and
amortized to maturity using the scientific interest method, which approximates
the effective interest method.
REPURCHASE AGREEMENTS - Securities pledged as collateral for repurchase
agreements are held by each Fund's custodian bank until maturity of the
repurchase agreements. Provisions of the agreements and procedures adopted by
the investment adviser require that the market value of the collateral,
including accrued interest thereon, is sufficient in the event of default by the
counterparty. The Funds also invest in tri-party repurchase agreements.
Securities held as collateral for tri-party repurchase agreements are maintained
by the broker's
CNI CHARTER FUNDS | PAGE 59
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
custodian bank in a segregated account until maturity of the repurchase
agreement. Provisions of the agreements require that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default. If the counterparty defaults and the value of the collateral declines
or if the counterparty enters into an insolvency proceeding, realization of the
collateral by the Fund may be delayed or limited.
TBA TRANSACTIONS - The Funds may engage in "to be announced" ("TBA") security
transactions. Such transactions involve a commitment by the Funds to purchase or
sell securities for a predetermined price or yield, with payment and delivery
taking place beyond the customary settlement period. The Funds record TBA
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payments for the securities
purchased. As of March 31, 2005, the Funds did not hold any TBA securities.
CLASSES - Class-specific expenses are borne by that class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective class on the basis of relative net asset value each day.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment
income are declared daily and paid to shareholders monthly for the Fixed Income
and Money Market Funds. Dividends from net investment income are declared and
paid quarterly for the Large Cap Value Equity, Large Cap Growth Equity, and
Technology Growth Funds. For the RCB Small Cap Value Fund, dividends from net
investment income are declared and paid annually. Distributions from net
realized capital gains are distributed to shareholders at least annually.
3. ADMINISTRATION, TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES
AGREEMENTS:
Pursuant to an administration agreement (the "Agreement"), SEI Investments
Global Funds Services (the "Administrator"), a wholly owned subsidiary of SEI
Investments Company, acts as the Trust's Administrator. Under the terms of the
Agreement dated April 1, 1999, as amended January 1, 2005, the Administrator is
entitled to receive an annual fee of 0.065% of aggregate average daily net
assets of the Trust not exceeding $2.5 billion, 0.045% of aggregate average
daily net assets of the Trust exceeding $2.5 billion but not exceeding $5
billion, and 0.025% of aggregate average daily net assets of the Trust exceeding
$5 billion. Each Fund is subject to a minimum annual fee of $90,000, which may
be reduced at the sole discretion of the Administrator. Prior to January 1,
2005, the Administrator received an annual fee of 0.10% of aggregate average
daily net assets of the Trust not exceeding $2.5 billion, 0.08% of aggregate
average daily net assets of the Trust exceeding $2.5 billion but not exceeding
$5 billion, and 0.06% of aggregate average daily net assets of the Trust
exceeding $5 billion, with each Fund being subject to a minimum annual fee of
$90,000.
The Trust has adopted a Rule 12b-1 Distribution Plan ("the Plan") with respect
to Class A, S and R Shares that allows each Fund to pay distribution and
servicing fees. SEI Investments Distribution Co. (the "Distributor"), as
compensation for its services under the Plan, receives a distribution fee,
computed daily and paid monthly, at the annual rate of 0.50% of the average
daily net assets of the Class A Shares and Class S Shares of the Money Market
Funds and 0.25% of the Class A Shares of the Equity and Fixed Income Funds and
the Class R Shares of the RCB Small Cap Value Fund, with the exception of 0.30%
charged to the Class A Shares of the Technology Growth and High Yield Bond
Funds, which may be used by the Distributor to provide compensation for sales
support and distribution-related activities.
The Trust and the Distributor are parties to a Distribution Agreement dated
April 1, 1999. The Distributor receives no fees for its distribution services
under this agreement.
SEI Investments Fund Management serves as Transfer Agent for the Trust whereby
they provide services at an annual rate of $15,000 per share class. The Transfer
Agent has voluntarily agreed to waive these fees.
Wachovia Bank, N.A. serves as Custodian for the Trust. The Custodian plays no
role in determining the investment policies of the Trust or which securities are
to be purchased or sold by the Trust.
The Trust has also adopted a Shareholder Servicing Agreement that permits
payment of compensation to service providers, that may include City National
Bank ("CNB"), that have agreed to provide certain shareholder support for their
customers who own Institutional Class, Class A, Class S or Class R Shares. In
consideration for such services, a shareholder servicing fee is charged at the
annual rate of up to 0.25% of each Fund's average daily net assets. For the
six-months ended March 31, 2005, CNB received Shareholder Servicing fees from
the Trust in the amount of $3,686,747.
Certain officers of the Trust are also officers of City National Asset
Management, Inc. ("CNAM", the "Adviser"), the
CNI CHARTER FUNDS | PAGE 60
- --------------------------------------------------------------------------------
Administrator and/or the Distributor. Such officers are paid no fees by the
Trust for serving as officers of the Trust.
4. INVESTMENT ADVISORY FEES AND OTHER AGREEMENTS:
CNAM, a wholly owned subsidiary of CNB, serves as the Investment Manager. Under
the terms of the current agreement, the Adviser receives an annual fee equal to
0.62% of the average daily net assets of the Large Cap Value Equity Fund, 0.65%
of the average daily net assets of the Large Cap Growth Equity Fund, 0.85% of
the average net assets of the RCB Small Cap Value Fund, 0.85% of the average
daily net assets of the Technology Growth Fund, 0.40% of the average daily net
assets of the Corporate Bond Fund, 0.43% of the average daily net assets of the
Government Bond Fund, 0.27% of the average daily net assets of the California
Tax Exempt Bond Fund, 0.75% of the average daily net assets of the High Yield
Bond Fund, 0.25% of the average daily net assets of the Prime Money Market Fund,
0.26% of the average daily net assets of the Government Money Market Fund, and
0.27% of the average daily net assets of the California Tax Exempt Money Market
Fund.
REED, CONNER & BIRDWELL, LLC acts as the Investment Sub-Adviser on behalf of the
RCB Small Cap Value Fund.
CREDIT SUISSE ASSET MANAGEMENT, LLC acts as the Investment Sub-Adviser on behalf
of the High Yield Bond Fund.
The Adviser has voluntarily agreed to limit its fees or reimburse expenses to
the extent necessary to keep operating expenses at or below certain percentages
of the respective average daily net assets. The Adviser has voluntarily agreed
to maintain this limitation until further notice to the Trust. The voluntary
expense limitations (expressed as a percentage of average daily net assets) are
as follows:
Large Cap Large Cap RCB
Value Growth Small Cap Technology
Equity Equity Value Growth
Fund Fund Fund Fund
- --------------------------------------------------------------------------------
Institutional Class 1.00% 1.05% 1.24% 1.20%
Class A 1.25% 1.30% 1.49% 1.50%
Class R -- -- 1.49% --
- --------------------------------------------------------------------------------
California
Corporate Government Tax Exempt High Yield
Bond Bond Bond Bond
Fund Fund Fund Fund
- --------------------------------------------------------------------------------
Institutional Class 0.75% 0.70% 0.50% 1.00%
Class A 1.00% 0.95% 0.75% 1.30%
- --------------------------------------------------------------------------------
Prime California
Money Government Tax Exempt
Market Money Market Money Market
Fund Fund Fund
- --------------------------------------------------------------------------------
Institutional Class 0.63% 0.63% 0.55%
Class A 0.85% 0.85% 0.78%
Class S 1.05% 1.05% 0.98%
- --------------------------------------------------------------------------------
Any fee reductions or expense reimbursements may be repaid to the Adviser within
three years after occurrence, subject to certain restrictions and only if such
repayments do not cause the Funds' expense ratios, at the time of repayment, to
exceed the amounts shown in the preceding table.
During the six months ended March 31, 2005, the Board of Trustees approved the
reimbursement of previously waived fees by the Adviser for the prior fiscal year
in the amount of $1,516, $13, $1,444, $40,558 and $125,625 for the Large Cap
Value Equity Fund, Technology Growth Fund, Corporate Bond Fund, Prime Money
Market Fund and Government Money Market Fund, respectively.
As of March 31, 2005, fees which were previously waived by the Adviser which may
be subject to possible future reimbursement to the Adviser were as follows:
Fund (000)
- --------------------------------------------------------------------------------
Technology Growth $ 4
Corporate Bond 23
- --------------------------------------------------------------------------------
5. INVESTMENT TRANSACTIONS:
The cost of security purchases and proceeds from the sale and maturities of
securities, other than temporary investments in short-term securities for the
six-months ended March 31, 2005, were as follows for the Equity and Fixed Income
Funds:
Purchases Sales & Maturities
- --------------------------------------------------------------------------------
U.S. Gov't Other U.S. Gov't Other
Fund (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Large Cap Value Equity $ -- $10,554 $ -- $ 8,880
Large Cap Growth Equity -- 8,830 -- 4,824
RCB Small Cap Value -- 25,657 -- 15,178
Technology Growth -- 484 -- 487
Corporate Bond -- 7,312 -- 2,741
Government Bond 3,294 2,039 2,615 --
California Tax Exempt Bond -- 7,340 -- 5,334
High Yield Bond -- 8,775 -- 6,473
- --------------------------------------------------------------------------------
CNI CHARTER FUNDS | PAGE 61
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
6. FEDERAL TAX INFORMATION:
It is each Fund's intention to continue to qualify as a regulated investment
company for Federal income tax purposes and distribute all of its taxable income
and net capital gains. Accordingly, no provisions for Federal income taxes are
required.
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments, in issuers existing or operating in such
countries. Such taxes are generally based on income earned. The Funds accrue
such taxes when the related income is earned.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with Federal tax
regulations, which may differ from accounting principles generally accepted in
the United States of America. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. These book/tax
differences may be temporary or permanent. To the extent these differences are
permanent in nature, they are charged or credited to paid-in-capital,
undistributed net investment income (loss), or accumulated net realized gain
(loss), as appropriate, in the period that the differences arise.
The tax character of dividends and distributions declared during the years ended
September 30, 2004 and September 30, 2003 are shown below:
Tax
Exempt Ordinary Long-term
Income Income Capital Gain Total
Fund (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Large Cap Value Equity
2004 $ -- $ 367 $ -- $ 367
2003 -- 336 -- 336
Large Cap Growth Equity
2004 -- 17 -- 17
2003 -- 29 -- 29
RCB Small Cap Value Fund
2004 -- -- 87 87
2003 -- -- -- --
Corporate Bond
2004 -- 1,913 222 2,135
2003 -- 1,843 -- 1,843
Government Bond
2004 -- 450 211 661
2003 -- 519 21 540
California Tax Exempt Bond
2004 459 63 139 661
2003 450 60 218 728
High Yield Bond
2004 -- 2,846 -- 2,846
2003 -- 1,990 -- 1,990
Prime Money Market
2004 -- 2,720 -- 2,720
2003 -- 3,310 -- 3,310
Government Money Market
2004 -- 7,492 -- 7,492
2003 -- 11,356 -- 11,356
California Tax Exempt Money Market
2004 2,227 4 -- 2,231
2003 2,993 -- -- 2,993
As of September 30, 2004, the components of Distributable Earnings/(Accumulated
Losses) on a tax basis were as follows:
Undistributed Undistributed Undistributed Capital
Tax-Exempt Ordinary Long-term Loss Post-October
Income Income Capital Gain Carryforwards Losses
Fund (000) (000) (000) (000) (000)
- ---------------------------------------------------------------------------------------------------------------------
Large Cap Value Equity $ -- $ 98 $ 1,562 $ -- $ --
Large Cap Growth Equity -- 3 -- (4,768) (17)
RCB Small Cap Value -- 329 1,713 -- --
Technology Growth -- -- -- (1,379) (268)
Corporate Bond -- 144 302 -- --
Government Bond -- 46 120 -- --
California Tax Exempt Bond 41 -- 34 -- --
High Yield Bond -- 262 -- (1,087) --
Prime Money Market -- 477 -- (403) --
Government Money Market -- 1,380 -- -- --
California Tax Exempt Money Market 333 -- 174 -- --
Unrealized Other Total
Appreciation Temporary Distributable Earnings
(Depreciation) Differences (Accumulated Losses)
Fund (000) (000) (000)
- ------------------------------------------------------------------------------------------
Large Cap Value Equity $ 9,216 $ (98) $ 10,778
Large Cap Growth Equity 573 -- (4,209)
RCB Small Cap Value 9,794 -- 11,836
Technology Growth (210) -- (1,857)
Corporate Bond 1,097 (144) 1,399
Government Bond 62 (46) 182
California Tax Exempt Bond 346 (41) 380
High Yield Bond 1,550 (262) 463
Prime Money Market -- (477) (403)
Government Money Market -- (1,378) 2
California Tax Exempt Money Market -- (329) 178
CNI CHARTER FUNDS | PAGE 62
- --------------------------------------------------------------------------------
For tax purposes, the losses in the Funds can be carried forward for a maximum
of eight years to offset any future net realized capital gains. At September 30,
2004, the breakdown of capital loss carryforwards is as follows:
Expiring September 30,
---------------------------------
2008 2010 2011 2012
Fund (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Large Cap Growth Equity $ 8 $3,244 $1,516 $ --
Technology Growth -- 392 658 329
High Yield Bond -- 155 932 --
Prime Money Market -- 403 -- --
- --------------------------------------------------------------------------------
During the year ended September 30, 2004, the following funds had utilized
capital loss carryforwards to offset capital gains amounting to:
Amount
Fund (000)
- --------------------------------------------------------------------------------
Large Cap Value Equity $333
Large Cap Growth Equity 4
High Yield Bond 326
Prime Money Market 4
Government Money Market 3
- --------------------------------------------------------------------------------
Post-October losses represent losses realized on investments and foreign
currency transactions from November 1, 2003 through September 30, 2004 that, in
accordance with Federal income tax regulations, the Funds have elected to defer
and treat as having arisen in the following fiscal year.
The aggregate gross unrealized appreciation on securities, the aggregate gross
unrealized depreciation on securities and the net unrealized
appreciation/(depreciation) for tax purposes at March 31, 2005 for each of the
Equity and Fixed Income Funds were as follows:
Net Unrealized
Federal Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
Fund (000) (000) (000) (000)
- ------------------------------------------------------------------------------------
Large Cap Value Equity $40,551 $ 10,708 $ (1,130) $ 9,578
Large Cap Growth Equity 34,390 4,097 (1,733) 2,364
RCB Small Cap Value 59,702 12,027 (2,076) 9,951
Technology Growth 2,421 291 (373) (82)
Corporate Bond 50,917 596 (715) (119)
Government Bond 24,920 27 (250) (223)
California Tax Exempt Bond 21,513 115 (197) (82)
High Yield Bond 43,789 1,805 (1,189) 616
- ------------------------------------------------------------------------------------
7. CONCENTRATION OF CREDIT RISK:
In the normal course of business, the Funds enter into contracts that provide
general indemnifications. The Funds' maximum exposure under these arrangements
is dependent on future claims that may be made against the Funds and, therefore,
cannot be established; however, based on experience, the risk of loss from such
claim is considered remote.
CALIFORNIA TAX EXEMPT FUNDS - SPECIFIC RISKS
The ability of issuers to pay interest on, and repay principal of, California
municipal securities may be affected by economic and political developments in
the State of California.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
CNI CHARTER FUNDS | PAGE 63
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
8. CAPITAL SHARES ISSUED AND REDEEMED:
Capital share activity for the six months ended March 31, 2005 (Unaudited) and
the year ended September 30, 2004 was as follows:~
LARGE CAP VALUE LARGE CAP GROWTH RCB SMALL CAP TECHNOLOGY
EQUITY FUND (000) EQUITY FUND (000) VALUE FUND (000) GROWTH FUND (000)
----------------- ----------------- ---------------- -----------------
2005 2004 2005 2004 2005 2004 2005 2004
- --------------------------------------------------------- ----------------- ---------------- -----------------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 419 862 650 1,122 209 191 74 70
Shares Issued in Lieu of
Dividends and Distributions 69 9 6 1 12 1 -- --
Shares Redeemed (332) (951) (222) (832) (37) (148) (77) (49)
- --------------------------------------------------------- ----------------- ---------------- -----------------
Net Institutional
Class Transactions 156 (80) 434 291 184 44 (3) 21
========================================================= ================= ================ =================
CLASS A:
Shares Issued 340 555 278 573 157 269 -- 160
Shares Issued in Lieu of
Dividends and Distributions 33 2 2 -- 15 1 -- --
Shares Redeemed (93) (82) (77) (104) (27) (101) (2) (70)
- --------------------------------------------------------- ----------------- ---------------- -----------------
Net Class A Transactions 280 475 203 469 145 169 (2) 90
========================================================= ================= ================ =================
CLASS R:
Shares Issued -- -- -- -- 605 784 -- --
Shares Issued in Lieu of
Dividends and Distributions -- -- -- -- 73 2 -- --
Shares Redeemed -- -- -- -- (319) (94) -- --
- --------------------------------------------------------- ----------------- ---------------- -----------------
Net Class R Transactions -- -- -- -- 359 692 -- --
========================================================= ================= ================ =================
CALIFORNIA HIGH YIELD
CORPORATE BOND GOVERNMENT BOND TAX EXEMPT BOND BOND
FUND (000) FUND (000) FUND (000) FUND (000)
----------------- ----------------- ---------------- -----------------
2005 2004 2005 2004 2005 2004 2005 2004
- --------------------------------------------------------- ----------------- ---------------- -----------------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 656 1,552 522 900 496 690 429 1,068
Shares Issued in Lieu of
Dividends and Distributions 23 33 11 17 6 8 51 80
Shares Redeemed (243) (1,026) (127) (375) (307) (362) (393) (188)
- --------------------------------------------------------- ----------------- ---------------- -----------------
Net Institutional
Class Transactions 436 559 406 542 195 336 87 960
========================================================= ================= ================ =================
CLASS A:
Shares Issued 26 114 7 40 29 165 291 1,376
Shares Issued in Lieu of
Dividends and Distributions 2 2 -- -- 2 3 53 98
Shares Redeemed (32) (49) (13) (1) (71) (3) (262) (1,141)
- --------------------------------------------------------- ----------------- ---------------- -----------------
Net Class A Transactions (4) 67 (6) 39 (40) 165 82 333
========================================================= ================= ================ =================
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
CNI CHARTER FUNDS | PAGE 64
- --------------------------------------------------------------------------------
CALIFORNIA
PRIME GOVERNMENT TAX EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND (000) FUND (000) FUND (000)
--------------------- ------------------------ ----------------------
2005 2004 2005 2004 2005 2004
- ------------------------------------------------------------- ------------------------ ----------------------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 630,630 1,030,373 236,199 579,828 561,147 1,066,689
Shares Issued in Lieu of
Dividends and Distributions 519 375 3 1 3 1
Shares Redeemed (629,026) (950,623) (234,274) (593,062) (545,186) (1,075,122)
- ------------------------------------------------------------- ------------------------ ----------------------
Net Institutional
Class Transactions 2,123 80,125 1,928 (13,233) 15,964 (8,432)
============================================================= ======================== ======================
CLASS A:
Shares Issued 397,034 697,874 2,606,953 4,331,865 935,769 1,454,752
Shares Issued in Lieu of
Dividends and Distributions 257 154 8,539 4,840 2,179 1,367
Shares Redeemed (347,099) (702,159) (2,536,642) (4,539,896) (855,882) (1,490,415)
- ------------------------------------------------------------- ------------------------ ----------------------
Net Class A Transactions 50,192 (4,131) 78,850 (203,191) 82,066 (34,296)
============================================================= ======================== ======================
CLASS S:
Shares Issued 267,524 460,307 325,434 739,765 146,172 256,655
Shares Issued in Lieu of
Dividends and Distributions -- -- -- -- -- --
Shares Redeemed (241,825) (463,168) (337,790) (668,217) (123,647) (247,146)
- ------------------------------------------------------------- ------------------------ ----------------------
Net Class S Transactions 25,699 (2,861) (12,356) 71,548 22,525 9,509
============================================================= ======================== ======================
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
CNI CHARTER FUNDS | PAGE 65
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
9. SUBSEQUENT EVENT:
On April 5, 2005, the Board of Trustees of CNI Charter Funds (the "Trust")
approved the reorganization of the AHA Limited Maturity Fixed Income Fund, AHA
Full Maturity Fixed Income Fund, AHA Balanced Fund, AHA Diversified Equity Fund,
and AHA Socially Responsible Equity Fund series of AHA Investment Funds, Inc.
("AHA Funds") into newly established identical series of the Trust (the "New
Funds"). The reorganization is subject to approval by shareholders of AHA Funds
and is expected to be effective on or about October 1, 2005.
CCM Advisors, LLC, an affiliate of City National Asset Management, Inc.
("CNAM"), will be the investment adviser to the New Funds. Cambiar Investors,
LLC and Freeman Associates Investment Management LLC will serve as sub-advisers
to the new AHA Balanced and Diversified Equity Funds. Patterson Capital
Corporation and CNAM will serve as sub-advisers to the new AHA Limited Maturity
Fixed Income Fund. Robert W. Baird & Co. Incorporated will serve as sub-adviser
to the new AHA Full Maturity Fixed Income and Balanced Funds. SKBA Capital
Management, LLC will serve as a sub-adviser to the new AHA Socially Responsible
Equity Fund.
When the reorganization is effective, shares of the New Funds will be offered
through separate prospectuses. To request a prospectus, shareholders can call
1-800-445-1341 or write to AHA Investment Funds, Inc., c/o SEI Investments
Distribution Co., One Freedom Valley Drive, Oaks, Pennsylvania 19456.
CNI CHARTER FUNDS | PAGE 66
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
All mutual funds have operating expenses. As a shareholder of the fund, your
investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, administrative services, and shareholder reports
like this one. It is important for you to understand the impact of these costs
on your investment returns.
Operating expenses such as these are deducted from the fund's gross income and
directly reduce your final investment return. These expenses are expressed as a
percentage of the fund's average net assets; this percentage is known as the
fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table below illustrates your fund's costs in two ways:
ACTUAL FUND RETURN. This section helps you to estimate the actual expenses that
your fund incurred over the period. The "Expenses Paid During Period" column
shows the actual dollar expense cost incurred by a $1,000 investment in the
fund, and the "Ending Account Value" number is derived from deducting that
expense cost from the fund's gross investment return.
You can use this information, together with the actual amount you invested in
the fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = $8.6), then multiply that ratio by the number
shown for your fund under "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN. This section helps you compare your fund's costs with
those of other mutual funds. It assumes that the fund had an annual 5% return
before expenses during the year, but that the expense ratio (Column 3) for the
period is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess your fund's comparative cost by comparing the
hypothetical result for your fund in the "Expenses Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
funds.
NOTE: Because the return is set at 5% for comparison purposes - NOT your fund's
actual return - the account values shown do not apply to your specific
investment.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/04 3/31/05 RATIOS PERIOD*
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,081.60 0.96% $4.98
Class A 1,000.00 1,080.40 1.21% 6.28
HYPOTHETICAL 5% RETURN
Institutional Class 1,000.00 1,020.14 0.96% 4.84
Class A 1,000.00 1,018.90 1.21% 6.09
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/04 3/31/05 RATIOS PERIOD*
- --------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,056.80 0.98% $5.03
Class A 1,000.00 1,056.20 1.23% 6.31
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,020.04 0.98% $4.94
Class A 1,000.00 1,018.80 1.23% 6.19
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/365 (to reflect
one-half year period).
CNI CHARTER FUNDS | PAGE 67
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/04 3/31/05 RATIOS PERIOD*
- --------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,078.70 1.19% $6.17
Class A 1,000.00 1,077.30 1.43% 7.41
Class R 1,000.00 1,077.00 1.43% 7.40
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.00 1.19% $5.99
Class A 1,000.00 1,017.80 1.43% 7.19
Class R 1,000.00 1,017.80 1.43% 7.19
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,060.70 1.20% $6.17
Class A 1,000.00 1,061.40 1.50% 7.71
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,018.95 1.20% $6.04
Class A 1,000.00 1,017.45 1.50% 7.54
- --------------------------------------------------------------------------------
CORPORATE BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 995.30 0.75% $3.73
Class A 1,000.00 993.10 1.00% 4.97
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.19 0.75% $3.78
Class A 1,000.00 1,019.95 1.00% 5.04
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,000.00 0.70% $3.49
Class A 1,000.00 999.70 0.95% 4.74
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.44 0.70% $3.53
Class A 1,000.00 1,020.19 0.95% 4.78
- --------------------------------------------------------------------------------
CALIFORNIA TAX-EXEMPT BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 996.90 0.50% $2.49
Class A 1,000.00 995.60 0.75% 3.73
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,022.44 0.50% $2.52
Class A 1,000.00 1,021.19 0.75% 3.78
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/04 3/31/05 RATIOS PERIOD*
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,025.50 1.00% $5.05
Class A 1,000.00 1,024.00 1.30% 6.56
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.95 1.00% $5.04
Class A 1,000.00 1,018.45 1.30% 6.54
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,007.80 0.60% $3.00
Class A 1,000.00 1,006.70 0.83% 4.15
Class S 1,000.00 1,005.70 1.02% 5.10
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.94 0.60% $3.02
Class A 1,000.00 1,020.79 0.83% 4.18
Class S 1,000.00 1,019.85 1.02% 5.14
- --------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,007.70 0.62% $3.10
Class A 1,000.00 1,006.60 0.84% 4.20
Class S 1,000.00 1,005.60 1.04% 5.20
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.84 0.62% $3.13
Class A 1,000.00 1,020.74 0.84% 4.23
Class S 1,000.00 1,019.75 1.04% 5.24
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CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,005.90 0.55% $2.75
Class A 1,000.00 1,004.80 0.78% 3.90
Class S 1,000.00 1,003.80 0.98% 4.90
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,022.19 0.55% $2.77
Class A 1,000.00 1,021.04 0.78% 3.93
Class S 1,000.00 1,020.04 0.98% 4.94
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/365 (to reflect
one-half year period).
CNI CHARTER FUNDS | PAGE 68
APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (UNAUDITED)
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The Board of Trustees of the Funds has unanimously approved renewal of the
Investment Management Agreement between the Funds and its investment adviser
City National Asset Management, Inc. ("CNAM"), the Investment Sub-Advisory
Agreement between CNAM and Reed Conner & Birdwell LLC ("RCB") with respect to
the RCB Small Cap Value Fund, and the Investment Sub-Advisory Agreement between
CNAM and Credit Suisse Asset Management, LLC ("CSAM, LLC") with respect to the
High Yield Bond Fund, for an additional one-year term through February, 2006.
The material factors and the conclusions that formed the basis for the approval
of these Agreements are summarized below (RCB and CSAM, LLC are referred to
below as the "Sub-Advisers").
During the course of each year, the independent Trustees receive a wide variety
of information relating to the nature, extent and quality of services provided
by CNAM and the Sub-Advisers. At its February 10, 2005 meeting, the Board of
Trustees of the Funds evaluated supplementary information provided by CNAM, RCB
and CSAM, LLC in accordance with Section 15(c) of the Investment Company Act of
1940, as amended. The Board considered a number of factors in renewing the
Investment Management Agreement and the Investment Sub-Advisory Agreements,
including the nature, extent and quality of services furnished by CNAM and each
Sub-Adviser to the Funds; the investment performance of the Funds compared to
relevant market indices and the performance of peer groups of investment
companies pursuing broadly similar strategies; the advisory fees and other
expenses paid by the Funds (or with respect to the Funds, in the case of the
Sub-Advisers) compared to those of similar funds managed by other investment
advisers, and the profitability to CNAM and each Sub-Adviser of its investment
advisory relationship with the Funds; and the extent to which economies of scale
would be realized as the Funds grow. The Trustees also reviewed the ability of
CNAM and the Sub-Advisers to provide investment management and supervision
services to the Funds, including the background, education and experience of
their key portfolio management and operational personnel, the investment
philosophy and decision-making process of those professionals, their commitment
and systems in place with regard to compliance with applicable laws and
regulations, and their portfolio trading and soft dollar practices.
In deciding to renew each Agreement, the Board did not identify a single factor
as controlling and this summary does not describe all of the matters considered.
However, the Board concluded that each of the various factors referred to below
favored such approval. In considering these matters, the Trustees were advised
with respect to relevant legal standards by counsel to the Funds. The Trustees
discussed the approval of the Investment Management Agreement and Investment
Sub-Advisory Agreements with management and in a private session with counsel at
which no employees of CNAM or the Sub-Advisers were present.
Based on their review, the Board of Trustees (including all of the independent
Trustees) determined that it would be in the best interest of the Funds and
their shareholders to renew the Investment Management Agreement and each of the
Investment Sub-Advisory Agreements.
CITY NATIONAL ASSET MANAGEMENT, INC.
In reviewing the quality of services provided to each of the Funds, the Trustees
reviewed the performance of the Funds compared with the average performance of
bank-sponsored funds in their respective Lipper Inc. universes and the average
of selected funds included in the universes. They noted that the following Funds
had been recognized by Lipper Inc. for ranking in the top quartile or better of
their categories: the Large Cap Value Fund, for the two-year period ended
December 31, 2004; the High Yield Bond Fund, for the one-year and four-year
periods ended December 31, 2004; and the Corporate Bond Fund, for the two-year
and three-year periods ended December 31, 2004. The Trustees also observed that
for the one-, two- and three-year periods ended December 31, 2004, most of the
Funds had returns greater than or near the averages of their respective Lipper
universes and their respective peer groups of bank-sponsored funds. Although the
one- and two-year returns for the Large Cap Growth Equity Fund, the two-year
CNI CHARTER FUNDS | PAGE 69
APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
returns for the Government Bond Fund, and the two-year returns for the High
Yield Bond Fund were below the averages of their respective Lipper universes,
the Trustees observed that each Fund's returns for the three-year period were
above its respective Lipper average returns.
With respect to the Prime Money Market and Government Money Market Funds, the
Trustees noted that the Funds' returns were lower than those of their respective
Lipper and bank-sponsored fund universes. However, the Trustees noted that, at
their request, CNAM had previously presented a comprehensive analysis of the
expenses and yields of the Money Market Funds, and that the Board had determined
the Funds' yields to be competitive with those of other funds considering
several unique features offered by the Funds to their shareholders, including
automatic sweep functions, later cut-off times than the Funds' competitors, and
no minimum transaction requirements.
Although the returns for the Technology Growth Fund for the one-, two- and
three-year periods were below the averages of the Fund's Lipper universe, the
Trustees noted that many of the funds in its universe invested in
small-capitalization stocks and had increased risk relative to the Fund, which
focused on large-capitalization stocks. The Trustees also noted that the Fund's
performance was close to that of its benchmark, the Russell 3000 Technology
Index, which had a risk profile similar to that of the Fund.
In reviewing the investment advisory fees and total expenses borne by each of
the Funds, the Trustees noted that, for all of the Funds other than the
Government Money Market Fund, advisory fees and total expenses as a percentage
of each Fund's average net assets were favorable (within or below the middle
60%) in relation to the Fund's Lipper universe. The Trustees noted that, as CNAM
has no clients other than the Trust, they would not be able to compare the fees
charged to the Trust by CNAM with fees charged to other institutional clients of
CNAM. The Trustees noted that although the Government Money Market Fund's total
expenses were in the top quintile of its Lipper universe, its investment
advisory fees were lower than the average advisory fees for bank-sponsored money
market funds in its Lipper universe, and that the Fund offers several unique
features to its shareholders which many of its competitors do not, including
automatic sweep functions, later cut-off times than the Fund's competitors, and
no minimum transaction requirements.
The Trustees also considered CNAM's income statement, which reflected the costs
of providing services to the Funds and the profitability to CNAM of its
relationship to the Trust. The Trustees noted that in 2003 and 2004, CNAM had
taken over from sub-advisers full investment management responsibilities for the
Government Money Market and California Tax Exempt Money Market Funds,
respectively, and that as a result CNAM had hired a number of additional
portfolio managers and support staff. The Trustees also considered that the
asset levels of most of the Funds were not so substantial that they could lead
to significant economies of scale, that CNAM's current operations are designed
to meet its fundamental management and monitoring duties with respect to the
Funds, and that if the Funds' assets were to decrease CNAM would not be able to
eliminate current staff assignments. As the majority of CNAM's operating
expenses are employee salaries, the Board concluded that CNAM's operating
expenses would not decrease significantly if the Funds' assets decreased.
The Trustees also considered the benefits received by CNAM and its affiliates as
a result of CNAM's relationship with the Funds, including fees paid to City
National Bank and City National Securities for providing certain shareholder
servicing and sub-distribution services to the Funds, and reviewed CNAM's
portfolio trading and soft dollar practices. In addition, the Trustees
considered the depth and quality of CNAM's research capabilities and its key
personnel; the overall financial strength and stability of its organization; the
experience, capability and integrity of its senior management; its commitment
and systems in place with regard to compliance with applicable laws and
regulations and its efforts to keep the Trustees informed.
CNI CHARTER FUNDS | PAGE 70
- --------------------------------------------------------------------------------
REED, CONNER & BIRDWELL, LLC
In considering renewal of the Investment Sub-Advisory Agreement with RCB, the
Trustees reviewed the performance of the RCB Small Cap Value Fund, noting that
the Fund had outperformed its Lipper category average, the Russell 2000 Index
and its universe of bank-sponsored funds for the one-, two- and three-year
periods ended December 31, 2004. The Trustees also reviewed the sub-advisory
fees charged by RCB and observed that its sub-advisory fee of 0.85% of Fund
assets was low compared to the standard fee it charges to all separately managed
small cap value accounts.
CREDIT SUISSE ASSET MANAGEMENT, LLC
In considering renewal of the sub-advisory agreement with CSAM, LLC, the
Trustees reviewed the performance of the High Yield Bond Fund, noting that the
Fund's returns had been greater than or close to the returns of its Lipper
category average and its universe of bank-sponsored funds for the one-, two- and
three-year periods ended December 31, 2004. The Trustees also reviewed the
sub-advisory fees charged by CSAM, LLC and observed that its sub-advisory fee
was low compared to the advisory fees it charged its proprietary mutual funds
and were within the range of fees it charged to other institutional clients with
similar account sizes.
CNI CHARTER FUNDS | PAGE 71
ADDITIONAL DISCLOSURE (UNAUDITED)
- --------------------------------------------------------------------------------
The Funds file their complete schedule of portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q within sixty days after the end of the period. The Funds' Form N-Q is
available on the Commission's website at http://www.sec.gov, and may be reviewed
and copied at the Commission's Public Reference Room in Washington, DC.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330. The most current Form N-Q is also available on the
Fund's website at www.cnicharterfunds.com and without charge, upon request, by
calling 1-888-889-0799.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to the Funds' portfolio securities, and information on
how the Funds voted proxies relating to portfolio securities during the most
recent 12-month period is available (1) without charge, upon request, by calling
1-888-889-0799, (2) on the Funds' website at www.cnicharterfunds.com, and (3) on
the Securities and Exchange Commission's website at www.sec.gov.
CNI CHARTER FUNDS | PAGE 72
THANK YOU
for your investment with CNI Charter Funds. We
value the trust you have placed in us to help you
achieve your financial goals.
[GRAPHIC OMITTED]
For more information on CNI Charter Funds, including charges and expenses,
please call 1-888-889-0799 or visit cnicharterfunds.com for a free prospectus.
Read it carefully before you invest or send money.
CNI CHARTER FUNDS (SM) [LOGO](R)
CNI-SA-002-0100
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable. Effective for closed-end management investment companies for
fiscal years ending on or after December 31, 2005
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
CNI Charter Funds (the "Fund") has adopted the following procedures by which
shareholders may recommend nominees to the Fund's Board of Trustees. The Fund
has a Nominating Committee comprised solely of persons who are not considered
"interested persons" of the Fund within the meaning of the Investment Company
Act of 1940. The Committee periodically reviews such issues as the Board's
composition, responsibilities, committees, compensation and other relevant
issues, and recommends any appropriate changes to the full Board of Trustees.
While the Committee normally is able to identify from its own resources an ample
number of qualified candidates, it will consider shareholder suggestions of
persons to be considered as nominees to fill future vacancies on the Board, so
long as the shareholder or shareholder group submitting a proposed nominee: (a)
beneficially owns more than 5% of the Fund's voting shares and has held such
shares continuously for two years, and (b) is not an adverse holder. No eligible
shareholder or shareholder group may submit more than one independent Board
member nominee each year. Such suggestions must be sent in writing to the Fund's
Secretary, and must be accompanied by the shareholder's contact information, the
nominee's contact information and number of Fund shares owned by the nominee,
all information regarding the nominee that would be required to be disclosed in
solicitations of proxies for elections of directors required under the
Securities Exchange Act of 1934, and a notarized letter from the nominee stating
his or her intention to serve as a nominee and be named in the Fund's proxy
statement, if so designated by the Committee and the Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
that have materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
- --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) CNI Charter Funds
By (Signature and Title)* /s/ Vernon C. Kozlen
-------------------------------------
Vernon C. Kozlen, President & CEO
Date May 27, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Vernon C. Kozlen
-------------------------------------
Vernon C. Kozlen, President & CEO
Date May 27, 2005
By (Signature and Title)* /s/ Eric Kleinschmidt
-------------------------------------
Eric Kleinschmidt, Controller and COO
Date May 27, 2005
* Print the name and title of each signing officer under his or her signature.