UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
FORM N-CSR
--------
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-07923
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, 2007
DATE OF REPORTING PERIOD: MARCH 31, 2007
ITEM 1. REPORTS TO STOCKHOLDERS.
[BACKGROUND GRAPHIC OMITTED]
CNI CHARTER FUNDS [LOGO OMITTED]
Investment Manager:
CITY NATIONAL ASSET MANAGEMENT, INC.
Semi-Annual Report
March 31, 2007
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
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.
TABLE OF CONTENTS
CNI Charter Funds Semi-Annual Report
2 Letter to Our Shareholders
4 Equity Funds Investment Adviser's Report
5 Fixed Income Funds Investment Adviser's Report
6 Schedules of Investments
44 Statements of Assets & Liabilities
47 Statements of Operations
50 Statements of Changes in Net Assets
54 Financial Highlights
57 Notes to Financial Statements
64 Disclosure of Fund Expenses
66 Proxy Voting Results
67 Approval of Investment Advisory Agreements
- --------------------------------------------------------------------------------
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 ending June 30 is available (1) without charge, upon
request, by calling 1-888-889-0799, (2) on the Funds' website at
www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission's
website at www.sec.gov.
CNI CHARTER FUNDS | PAGE 1
letter to our shareholders
MARCH 31, 2007
- --------------------------------------------------------------------------------
We are pleased to provide you with the CNI Charter Funds Semi-Annual Report for
the six months ended March 31, 2007, a period in which the global economic
recovery of the last five years evidenced signs of slowing. Despite this
deceleration however, the financial markets continued to produce solid gains for
most shareholders.
The underlying investment philosophy of 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 economic, financial, and
geopolitical environment we encountered in the six months ended March 31, 2007.
SIX-MONTH MARKET WATCH:
OCTOBER 2006 - MARCH 2007
The six months ended March 31, 2007 produced strong gains in most equity
markets, both domestically and internationally. Small capitalization stocks
continued to outperform larger capitalization issues during the first half of
this period, but lagged during the last three months. (Please refer to table
that follows.) Fixed income securities, as measured by the Lehman Aggregate and
Citigroup High Yield Indices also showed healthy, albeit single digit, gains for
the period overall.
- --------------------------------------------------------------------------------
Six-Month October 2006 -
Index Watch: March 2007
EQUITIES:
- ---------
S&P 500 Stock Index............................................. + 7.4%
Dow Jones Industrials........................................... + 7.0%
NASDAQ.......................................................... + 7.6%
Russell 2000 Value Index........................................ +10.6%
MSCI EAFE Index................................................. +14.9%
BONDS:
- ------
Lehman Aggregate Bond Index..................................... + 2.8%
Citigroup High Yield Index...................................... + 6.9%
- --------------------------------------------------------------------------------
The economic recovery began to show signs of slowing and the consensus now
expects to see a continuation of the deceleration throughout the rest of this
year. Corporate profit growth, in particular, is expected to slow significantly
this year, down to a rate of 5% - 7% relative to last year's torrid 18% growth
pace. On the plus side -- inflation is widely expected to slow to 2% this coming
year.
The Federal Open Market Committee made several subtle, but important changes in
the text of its monthly statements leading the market to increase the
probability of rate decreases down the road. Apparently economic growth, or the
lack thereof, has now become equal in priority to the goal inflation
containment, in the eyes of the Fed.
The major foreign economies (and their associated equity markets) have continued
to be the real stars over the last six months, highlighting once again the
wisdom of international diversification.
Interest rates remained fairly steady throughout this six-month period despite
all of the intervening economic and geopolitical turmoil. The U.S. Treasury
yield curve remains inverted leading many to keep the bulk of their fixed income
investments shorter-term, and therefore higher yielding, at least for now.
The U.S. Dollar continued to post marginal losses against most major foreign
currencies due to a combination of a large Federal Budget deficit, a large
CNI CHARTER FUNDS | PAGE 2
- --------------------------------------------------------------------------------
and growing trade deficit, unfavorable interest rate differentials, and slowing
economic growth.
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 strong returns during the six-month
period. Leading the pack was the 16.6% gain in the RCB SMALL CAP VALUE FUND.
Following close behind was the 9.7% return to the LARGE CAP VALUE EQUITY FUND.
The LARGE CAP GROWTH EQUITY FUND rose 5.5%, while the TECHNOLOGY GROWTH FUND
gained 4.9% during the six-month period.
Returns to the four bond-oriented Funds were mixed with the HIGH YIELD BOND FUND
leading the group with a 6.5% gain for the period. The GOVERNMENT BOND FUND
returned 2.6%, the CORPORATE BOND FUND returned 2.5%, and the CALIFORNIA TAX
EXEMPT BOND FUND followed closely with a 1.1% gain for the six-month period.
Lastly, all three Money Market Funds continued to turn in competitive yields for
the six months ending March 31, 2007. Both the PRIME MONEY MARKET and the
GOVERNMENT MONEY MARKET FUNDS gained 2.4% during the previous six-months,
comparable to longer-term bond portfolios. The CALIFORNIA TAX EXEMPT MONEY
MARKET FUND rose 1.5%.
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 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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AHA Investment Funds, a series of the CNI Charter Funds
- --------------------------------------------------------------------------------
Endorsed by the American Hospital Association, the five AHA Investment Funds
encourage healthy behavior by having guidelines that prohibit investment in any
tobacco-related securities.
The five AHA Funds in the CNI Charter Fund family are:
[] AHA Limited Maturity Fixed Income Fund [] AHA Diversified Equity Fund
[] AHA Full Maturity Fixed Income Fund [] AHA Socially Responsible Equity Fund
[] AHA Balanced Fund
These Funds together with the other eleven CNI Charter Funds provide an
unwavering commitment to client satisfaction and quality investments that help
successful individuals, families and businesses achieve their financial goals.
For more information about the CNI Charter Funds (including the AHA Investment
Funds) visit www.cnicharterfunds.com.
CNI CHARTER FUNDS | PAGE 3
investment adviser's report
MARCH 31, 2007
- --------------------------------------------------------------------------------
EQUITY FUNDS
The equity market, as measured by the S&P 500, returned 7.4% over the six months
ending March 31, 2007. Investors experienced a smooth and orderly increase in
equity prices over most of this time period. Prices dropped in late February and
into early March due to a sharp decline in the Chinese equity market. This brief
bearish period soon dissipated and the market proceeded higher as the first
quarter of 2007 came to a close.
During this time period, mid and small cap stocks outperformed large with
returns of 13.2% and 11.3%, respectively (as measured by the S&P MidCap 400 and
S&P SmallCap 600.) In general, value indices outperformed growth indices with
the S&P MidCap 400/Citigroup Value index gaining 14.0%. In general, value
indices outperformed growth indices.
All of the CNI Charter equity funds produced positive returns over this six
month period. ALL RETURNS FOR CNI CHARTER FUNDS STATED BELOW ARE FOR
INSTITUTIONAL CLASS SHARES:
o The RCB SMALL CAP VALUE FUND returned 16.6%. This performance beat the
Russell 2000 Value Index return of 10.6% and the Lipper Small Cap
Value Funds Classification of 11.3%.
o The LARGE CAP VALUE EQUITY FUND returned 9.7%. This performance beat
the S&P 500/Citigroup Value Index return of 9.2% and the Lipper Large
Cap Value Funds Classification return of 7.9%.
o The LARGE CAP GROWTH EQUITY FUND returned 5.5%. This performance
essentially met the S&P 500/Citigroup Growth Index return of 5.6% but
lagged the Lipper Large Cap Growth Funds Classification return of 6.4%.
o The TECHNOLOGY GROWTH FUND returned 4.9%. This performance trailed the
Russell 3000 Technology Index return of 5.2% and the Lipper Science &
Technology Funds Objective return of 7.2%. All shares of the Technology
Growth Fund have been transferred into shares of the Large Cap Growth
Fund on April 16, 2007.
LOOKING FORWARD
The economy is expected to continue slowing, but not contract. The Federal
Reserve Bank, ("Fed") has kept short-term rates constant since last raising them
back in June 2006. Most expect the Fed to eventually lower rates as inflation
has declined from 2006 levels and economic growth becomes more of a concern.
Overall, the equity "bull" market continues from its March 2003 lows. Earnings
yields on equities remain attractive relative to fixed income securities. There
appears to be a good deal of support in the market as more and more public
companies are being purchased by private equity firms. Corporate earnings will
be watched closely as companies navigate the slowing economy.
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
CNI CHARTER FUNDS | PAGE 4
investment adviser's report
MARCH 31, 2007
- --------------------------------------------------------------------------------
FIXED INCOME FUNDS
Interest rates were nearly unchanged in the six-month period ending March 31,
2007 as investors mulled over the direction the economy will take in the coming
quarters. The U.S. economy continued to show signs of further deceleration as
the second quarter began to unfold. First-quarter GDP estimates point to slower
growth and economists continue to shave their projections. The consensus
forecast for annualized GDP growth for the first quarter is now below 2%, down
from earlier estimates and well below the 2006 rate of 3.3%. Increases in
sub-prime mortgage defaults and foreclosures threatened to delay the housing
sector's recovery, raising the prospects of a prolonged economic slowdown. We
are not expecting a recession, but we do expect GDP growth to slow below trend
(under a 2.5%-3.5% annual rate.)
At March's FOMC meeting, the Federal Reserve Bank ("Fed") dropped its previous
"firming" language and moved to a DE FACTO neutral policy stance. This raised
the threshold in terms of what it would take to get the Fed to resume the
tightening campaign that the central bank halted last June with overnight
borrowing rates at 5.25%. The Fed's new stance also gave it more flexibility and
opened the door for a possible rate reduction if the economy slows further
and/or core inflation recedes in coming months.
STRATEGIC OUTLOOK FOR BOND FUNDS
In light of the decelerating economic landscape and a higher probability of a
Fed ease in rates later in the year, we have been extending our average
maturities to our investment grade bond funds to protect against future
reinvestment risk.
Strategically, in the CORPORATE BOND FUND, we've increased our exposure to the
intermediate maturity area as we extended our average maturity of the Fund. We
are maintaining a higher average quality posture than the Lehman Intermediate
Corporate Index in this decelerating economy.
The GOVERNMENT BOND FUND continues to benefit from attractive yields offered by
agency securities versus Treasuries. We are utilizing U.S. Government Agency
issue mortgages to capture higher yields without taking on credit risk.
The CALIFORNIA TAX EXEMPT BOND FUND, similar to our taxable funds, maintains a
slightly longer maturity profile than its benchmark while keeping credit quality
high. This positioning should continue to be rewarded, given the demand for
California municipal bond paper and the possibility of reinvestment risk as
rates decline in the coming quarters.
Even though this economic expansion cycle is decelerating, 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
Our outlook for our investment grade strategies will be to further extend our
average maturities on market weakness if the economic picture continues to
soften and inflation does not rise from current levels.
Sincerely,
/s/ Rodney J. Olea
Rodney J. Olea
DIRECTOR OF FIXED INCOME
CITY NATIONAL ASSET MANAGEMENT, INC.
CNI CHARTER FUNDS | PAGE 5
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
31.7% Financials
11.8% Industrials
9.5% Information Technology
9.3% Consumer Discretionary
7.0% Telecommunication
6.7% Healthcare
6.3% Energy
6.2% Utilities
4.9% Consumer Staples
4.2% Materials
2.4% Short-Term Investments
*Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCK [97.9%]
AEROSPACE & DEFENSE [4.3%]
Goodrich 16,400 $ 844
Honeywell International 21,200 977
Lockheed Martin 13,000 1,261
Northrop Grumman 17,000 1,262
Raytheon 15,200 797
------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 5,141
============================================================
AIR FREIGHT & LOGISTICS [0.6%]
FedEx 6,800 730
============================================================
BEVERAGES [2.0%]
Coca-Cola 27,100 1,301
Coca-Cola Enterprises 32,100 650
Molson Coors Brewing, Cl B 4,500 426
------------------------------------------------------------
TOTAL BEVERAGES 2,377
============================================================
CAPITAL MARKETS [6.0%]
Bank of New York 11,600 470
Goldman Sachs Group 11,200 2,314
Lehman Brothers Holdings 15,000 1,051
Merrill Lynch 5,200 425
Morgan Stanley 27,000 2,127
State Street 11,200 725
------------------------------------------------------------
TOTAL CAPITAL MARKETS 7,112
============================================================
CHEMICAL [2.6%]
Dow Chemical 36,000 1,651
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
PPG Industries 14,000 $ 984
Rohm & Haas 8,600 445
------------------------------------------------------------
TOTAL CHEMICAL 3,080
============================================================
COMMERCIAL BANKS [7.4%]
BB&T 14,500 595
Keycorp 10,400 390
PNC Financial Services Group 14,300 1,029
SunTrust Banks 6,300 523
US Bancorp 48,000 1,679
Wachovia 30,700 1,690
Wells Fargo 84,960 2,925
------------------------------------------------------------
TOTAL COMMERCIAL BANKS 8,831
============================================================
COMMERCIAL SERVICES & SUPPLIES [0.3%]
Waste Management 11,600 399
============================================================
COMMUNICATIONS EQUIPMENT [1.3%]
Motorola 64,300 1,136
Qualcomm 9,800 418
------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT 1,554
============================================================
COMPUTERS & PERIPHERALS [4.5%]
Apple Computer* 7,300 678
Hewlett-Packard 68,700 2,758
IBM 19,900 1,876
------------------------------------------------------------
TOTAL COMPUTERS & PERIPHERALS 5,312
============================================================
CONSUMER FINANCE [0.5%]
Capital One Financial 8,300 626
============================================================
DIVERSIFIED FINANCIAL SERVICES [6.8%]
Bank of America 75,896 3,872
CIT Group 14,500 768
Citigroup 67,786 3,480
------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 8,120
============================================================
DIVERSIFIED TELECOMMUNICATION SERVICES [6.0%]
AT&T 108,117 4,263
Verizon Communications 77,109 2,924
------------------------------------------------------------
TOTAL DIVERSIFIED TELECOMMUNICATION
SERVICES 7,187
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 6
schedule of investments
MARCH 31, 2007 (UNAUDITED)
---------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
------------------------------------------------------------
ELECTRIC UTILITIES [3.4%]
Edison International 13,900 $ 683
Entergy 3,500 367
FirstEnergy 15,700 1,040
FPL Group 17,300 1,058
PPL 22,700 929
------------------------------------------------------------
TOTAL ELECTRIC UTILITIES 4,077
============================================================
FOOD & STAPLES RETAILING [1.7%]
Costco Wholesale 16,200 872
Kroger 19,300 545
Safeway 16,000 587
------------------------------------------------------------
TOTAL FOOD & STAPLES RETAILING 2,004
============================================================
FOOD PRODUCTS [0.9%]
Archer-Daniels-Midland 15,900 583
Tyson Foods 22,000 427
------------------------------------------------------------
TOTAL FOOD PRODUCTS 1,010
============================================================
HEALTH CARE PROVIDERS & SERVICES [2.3%]
Aetna 22,100 968
Cigna 4,500 642
Health Management Associates,
Cl A 27,000 293
McKesson 14,400 843
------------------------------------------------------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 2,746
============================================================
HOTELS RESTAURANTS & LEISURE [0.7%]
Starwood Hotels & Resorts
Worldwide 13,000 843
============================================================
HOUSEHOLD DURABLES [0.6%]
Whirlpool 8,700 739
============================================================
INDEPENDENT POWER PRODUCER/ENERGY TRADER [1.0%]
Constellation Energy Group 13,400 1,165
============================================================
INDUSTRIAL CONGLOMERATES [3.1%]
General Electric 47,500 1,680
Tyco International 61,600 1,943
------------------------------------------------------------
TOTAL INDUSTRIAL CONGLOMERATES 3,623
============================================================
DESCRIPTION SHARES VALUE (000)
------------------------------------------------------------
INSURANCE [7.7%]
ACE 17,800 $ 1,016
Aflac 18,800 885
American International Group 29,100 1,956
Chubb 27,100 1,400
Hartford Financial Services
Group 12,300 1,176
Metlife 17,100 1,080
Progressive 33,500 731
Prudential Financial 9,700 875
------------------------------------------------------------
TOTAL INSURANCE 9,119
============================================================
INSURANCE [1.2%]
Travelers 27,000 1,398
============================================================
IT SERVICES [0.9%]
Electronic Data Systems 39,900 1,104
============================================================
LEISURE EQUIPMENT & PRODUCTS [0.4%]
Mattel 18,500 510
============================================================
LIFE SCIENCES TOOLS & SERVICES [0.5%]
PerkinElmer 23,700 574
============================================================
MACHINERY [1.4%]
Caterpillar 18,600 1,247
Illinois Tool Works 7,000 361
------------------------------------------------------------
TOTAL MACHINERY 1,608
============================================================
MEDIA [4.8%]
CBS, Cl B 25,750 788
Comcast, Cl A* 52,200 1,354
News Corp., Cl A 25,000 578
Time Warner 65,300 1,288
Walt Disney 47,900 1,649
------------------------------------------------------------
TOTAL MEDIA 5,657
============================================================
METALS & MINING [0.9%]
Alcoa 31,300 1,061
============================================================
MULTI-UTILITIES & UNREGULATED POWER [1.8%]
Dominion Resources 4,900 435
PG&E 19,600 946
Sempra Energy 12,600 769
------------------------------------------------------------
TOTAL MULTI-UTILITIES & UNREGULATED POWER 2,150
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 7
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
MULTILINE RETAIL [1.9%]
Federated Department Stores 23,400 $ 1,054
JC Penney 8,000 657
Target 9,000 534
------------------------------------------------------------
TOTAL MULTILINE RETAIL 2,245
============================================================
OFFICE ELECTRONICS [0.6%]
Xerox* 43,500 735
============================================================
OIL & GAS [6.3%]
Chevron 26,140 1,933
ConocoPhillips 28,280 1,933
Exxon Mobil 13,100 988
Marathon Oil 14,800 1,463
Occidental Petroleum 24,400 1,203
------------------------------------------------------------
TOTAL OIL & GAS 7,520
============================================================
PAPER & FOREST PRODUCTS [0.8%]
International Paper 24,500 892
============================================================
PERSONAL PRODUCTS [0.4%]
Alberto-Culver 20,000 458
============================================================
PHARMACEUTICALS [3.9%]
Abbott Laboratories 16,000 893
Bristol-Myers Squibb 66,400 1,843
Merck 22,000 972
Pfizer 37,000 934
------------------------------------------------------------
TOTAL PHARMACEUTICALS 4,642
============================================================
ROAD & RAIL [2.2%]
CSX 31,400 1,257
Norfolk Southern 17,800 901
Ryder System 9,300 459
------------------------------------------------------------
TOTAL ROAD & RAIL 2,617
============================================================
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT [2.2%]
Analog Devices 17,000 586
Applied Materials 15,000 275
Micron Technology 20,000 242
Texas Instruments 50,000 1,505
------------------------------------------------------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2,608
============================================================
DESCRIPTION SHARES VALUE (000)
------------------------------------------------------------
SPECIALTY RETAIL [0.9%]
Best Buy 5,700 $ 278
Gap 20,000 344
Officemax 8,500 448
------------------------------------------------------------
TOTAL SPECIALTY RETAIL 1,070
============================================================
THRIFTS & MORTGAGE FINANCE [2.2%]
Fannie Mae 27,900 1,523
Washington Mutual 26,200 1,058
------------------------------------------------------------
TOTAL THRIFTS & MORTGAGE FINANCE 2,581
============================================================
WIRELESS TELECOMMUNICATION SERVICES [0.9%]
Alltel 10,600 657
Sprint-Nextel 24,300 461
------------------------------------------------------------
TOTAL WIRELESS TELECOMMUNICATION SERVICES 1,118
============================================================
TOTAL COMMON STOCK
(Cost $93,362) 116,343
========================================================
CASH EQUIVALENTS [2.4%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.22%** 2,124,740 2,125
SEI Daily Income Trust,
Prime Obligation Fund,
Cl A, 5.33%** 773,457 773
------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $2,898) 2,898
========================================================
TOTAL INVESTMENTS [100.3%]
(Cost $96,260) $119,241
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $118,930 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY
** RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 8
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
20.1% Information Technology
16.6% Healthcare
14.6% Consumer Staples
13.5% Energy
11.1% Consumer Discretionary
9.6% Financials
9.3% Industrial
2.2% Short-Term Investments
1.9% Materials
1.1% Utilities
* Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCK [98.1%]
AEROSPACE & DEFENSE [2.0%]
Boeing 3,300 $ 293
Honeywell International 11,000 507
L-3 Communications Holdings 2,500 219
------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 1,019
============================================================
AIR FREIGHT & LOGISTICS [0.8%]
United Parcel Service, Cl B 5,700 400
============================================================
BEVERAGES [3.3%]
Coca-Cola 9,800 470
Pepsi Bottling Group 9,400 300
PepsiCo 14,500 922
------------------------------------------------------------
TOTAL BEVERAGES 1,692
============================================================
BIOTECHNOLOGY [4.5%]
Amgen* 14,300 799
Biogen Idec* 3,700 164
Genzyme-General Division* 6,500 390
Gilead Sciences* 12,700 972
------------------------------------------------------------
TOTAL BIOTECHNOLOGY 2,325
============================================================
CAPITAL MARKETS [3.9%]
Franklin Resources 2,100 254
Goldman Sachs Group 2,600 537
Lehman Brothers Holdings 4,800 336
Merrill Lynch 2,600 213
State Street 5,400 350
T Rowe Price Group 7,000 330
------------------------------------------------------------
TOTAL CAPITAL MARKETS 2,020
============================================================
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMERCIAL BANKS [0.5%]
Synovus Financial 8,300 $ 268
============================================================
COMMERCIAL SERVICES & SUPPLIES [1.0%]
Robert Half International 8,400 311
RR Donnelley & Sons 6,300 230
------------------------------------------------------------
TOTAL COMMERCIAL SERVICES & SUPPLIES 541
============================================================
COMMUNICATIONS EQUIPMENT [1.4%]
Qualcomm 17,000 725
============================================================
COMPUTERS & PERIPHERALS [3.9%]
Apple Computer* 8,100 753
Dell* 17,165 398
IBM 9,000 848
------------------------------------------------------------
TOTAL COMPUTERS & PERIPHERALS 1,999
============================================================
CONSUMER FINANCE [0.8%]
Capital One Financial 1,800 136
SLM 6,400 262
------------------------------------------------------------
TOTAL CONSUMER FINANCE 398
============================================================
DIVERSIFIED FINANCIAL SERVICES [0.6%]
Chicago Mercantile Exchange Holdings,
Cl A 550 293
============================================================
ELECTRIC UTILITIES [0.2%]
Edison International 2,000 98
============================================================
ENERGY EQUIPMENT & SERVICES [3.0%]
Baker Hughes 6,200 410
BJ Services 14,100 394
Nabors Industries* 12,200 362
Transocean* 4,900 400
------------------------------------------------------------
TOTAL ENERGY EQUIPMENT & SERVICES 1,566
============================================================
FOOD & STAPLES RETAILING [5.1%]
CVS 21,543 735
Sysco 16,100 545
Wal-Mart Stores 29,375 1,379
------------------------------------------------------------
TOTAL FOOD & STAPLES RETAILING 2,659
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 9
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
FOOD PRODUCTS [1.6%]
Campbell Soup 5,200 $ 203
General Mills 4,300 250
Kellogg 7,400 381
------------------------------------------------------------
TOTAL FOOD PRODUCTS 834
============================================================
HEALTH CARE EQUIPMENT & SUPPLIES [3.8%]
Bard (C.R.) 3,200 254
Stryker 12,800 849
Thermo Electron* 7,100 332
Zimmer Holdings* 6,200 530
------------------------------------------------------------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 1,965
============================================================
HEALTH CARE PROVIDERS & SERVICES [2.4%]
Quest Diagnostics 5,400 269
UnitedHealth Group 18,700 991
------------------------------------------------------------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,260
============================================================
HEALTH CARE TECHNOLOGY [0.4%]
IMS Health 7,500 222
============================================================
HOTELS, RESTAURANTS & LEISURE [2.6%]
Carnival 6,600 309
Starbucks* 19,500 612
Yum! Brands 7,400 427
------------------------------------------------------------
TOTAL HOTELS, RESTAURANTS & LEISURE 1,348
============================================================
HOUSEHOLD DURABLES [0.4%]
Harman International Industries 2,200 211
============================================================
HOUSEHOLD PRODUCTS [4.6%]
Colgate-Palmolive 7,000 468
Procter & Gamble 26,302 1,661
Clorox 4,400 280
------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 2,409
============================================================
INDEPENDENT POWER PRODUCERS
& ENERGY TRADERS [0.9%]
AES* 6,000 129
TXU 5,200 333
------------------------------------------------------------
TOTAL INDEPENDENT POWER PRODUCERS
& ENERGY TRADERS 462
============================================================
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
INDUSTRIAL CONGLOMERATES [3.0%]
3M 6,000 $ 458
General Electric 31,075 1,099
------------------------------------------------------------
TOTAL INDUSTRIAL CONGLOMERATES 1,557
============================================================
INSURANCE [2.4%]
Aflac 6,600 311
American International Group 11,500 773
Progressive 8,000 174
------------------------------------------------------------
TOTAL INSURANCE 1,258
============================================================
INTERNET SOFTWARE & SERVICES [4.2%]
eBay* 26,800 888
Google, Cl A* 1,300 596
Yahoo!* 22,500 704
------------------------------------------------------------
TOTAL INTERNET SOFTWARE & SERVICES 2,188
============================================================
IT SERVICES [0.7%]
First Data 7,100 191
Paychex 4,800 182
------------------------------------------------------------
TOTAL IT SERVICES 373
============================================================
MACHINERY [2.6%]
Caterpillar 12,000 804
Danaher 7,600 543
------------------------------------------------------------
TOTAL MACHINERY 1,347
============================================================
MEDIA [2.6%]
Comcast, Cl A* 12,150 315
DIRECTV Group* 12,000 277
McGraw-Hill 8,100 509
Time Warner 13,100 259
------------------------------------------------------------
TOTAL MEDIA 1,360
============================================================
METALS & MINING [1.5%]
Freeport-McMoRan Copper & Gold,
Cl B 4,400 291
Goldcorp 9,000 216
Nucor 4,200 274
------------------------------------------------------------
TOTAL METALS & MINING 781
============================================================
MULTILINE RETAIL [0.9%]
Target 7,500 445
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 10
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
OIL & GAS [10.5%]
Anadarko Petroleum 8,000 $ 344
Chevron 18,000 1,331
Exxon Mobil 32,000 2,414
Sunoco 6,700 472
XTO Energy 16,400 899
------------------------------------------------------------
TOTAL OIL & GAS 5,460
============================================================
PAPER & FOREST PRODUCTS [0.4%]
International Paper 6,000 218
============================================================
PHARMACEUTICALS [5.5%]
Johnson & Johnson 25,164 1,516
Pfizer 26,400 667
Wyeth 13,850 693
------------------------------------------------------------
TOTAL PHARMACEUTICALS 2,876
============================================================
REAL ESTATE INVESTMENT TRUST [1.0%]
Simon Property Group 4,700 523
============================================================
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT [3.4%]
Applied Materials 13,200 242
Broadcom, Cl A* 11,850 380
Intel 12,350 236
Linear Technology 11,700 370
Texas Instruments 17,800 536
------------------------------------------------------------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1,764
============================================================
SOFTWARE [6.6%]
Adobe Systems* 6,100 254
Autodesk* 9,800 369
Citrix Systems* 7,100 227
Electronic Arts* 3,600 181
Microsoft 49,830 1,389
Oracle* 22,500 408
Symantec* 34,400 595
------------------------------------------------------------
TOTAL SOFTWARE 3,423
============================================================
SPECIALTY RETAIL [3.3%]
Best Buy 3,500 171
Home Depot 12,000 441
Lowe's 17,600 554
Staples 11,500 297
TJX 8,600 232
------------------------------------------------------------
TOTAL SPECIALTY RETAIL 1,695
============================================================
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS [1.4%]
Coach* 14,000 $ 701
============================================================
THRIFTS & MORTGAGE FINANCE [0.4%]
Countrywide Financial 6,600 222
============================================================
TOTAL COMMON STOCK
(Cost $45,003) 50,905
========================================================
CASH EQUIVALENTS [2.2%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.22%** 1,086,863 1,087
SEI Daily Income Trust,
Prime Obligation Fund,
Cl I, 5.33%** 59,502 60
------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $1,147) 1,147
========================================================
TOTAL INVESTMENTS [100.3%]
(Cost $46,150) $52,052
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $51,912 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY
** RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 11
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
27.6% Financials
24.0% Consumer Discretionary
13.6% Consumer Staples
12.2% Energy
6.7% Industrial
5.0% Materials
4.1% Information Technology
3.5% Short-Term Investments
1.9% Utilities
1.4% Healthcare
* Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCK [94.7%]
AIR FREIGHT & LOGISTICS [2.0%]
Pacer International* 50,000 $ 1,347
============================================================
BROADCASTING & CABLE [8.8%]
Cox Radio, Cl A* 130,450 1,780
Cumulus Media, Cl A* 286,000 2,683
Fisher Communications* 30,000 1,458
------------------------------------------------------------
TOTAL BROADCASTING & CABLE 5,921
============================================================
COMMERCIAL SERVICES [2.0%]
Coinstar* 42,800 1,340
============================================================
DIVERSIFIED METALS & MINING [2.4%]
Compass Minerals International 48,400 1,616
============================================================
UTILITIES [1.9%]
Sierra Pacific Resources* 74,900 1,302
============================================================
ELECTRICAL EQUIPMENT [2.2%]
LoJack* 76,600 1,454
============================================================
ENERGY EQUIPMENT & SERVICES [6.5%]
Carbo Ceramics 36,000 1,676
Hanover Compressor* 120,500 2,681
------------------------------------------------------------
TOTAL ENERGY EQUIPMENT & SERVICES 4,357
============================================================
ENTERTAINMENT [5.0%]
Lodgenet Entertainment* 109,500 3,364
============================================================
FOOD, BEVERAGE & TOBACCO [4.2%]
Ralcorp Holdings* 43,500 2,797
============================================================
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
HOUSEHOLD PRODUCTS [4.7%]
Central Garden & Pet* 62,050 $ 917
Central Garden & Pet, Cl A* 153,900 2,262
------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 3,179
============================================================
INSURANCE [20.9%]
Alleghany* 10,200 3,811
Conseco* 157,200 2,719
Hilb Rogal & Hobbs 31,925 1,566
Montpelier Re Holdings 140,000 2,428
White Mountains Insurance
Group 6,200 3,512
------------------------------------------------------------
TOTAL INSURANCE 14,036
============================================================
MACHINERY [4.4%]
Actuant, Cl A 26,600 1,351
IDEX 31,800 1,618
------------------------------------------------------------
TOTAL MACHINERY 2,969
============================================================
OIL & GAS [5.8%]
Alpha Natural Resources* 97,500 1,524
Rosetta Resources* 114,200 2,346
------------------------------------------------------------
TOTAL OIL & GAS 3,870
============================================================
PREPACKAGING SOFTWARE [1.9%]
PLATO Learning* 307,700 1,292
============================================================
REAL ESTATE INVESTMENT TRUST [5.2%]
Annaly Mortgage Management 225,100 3,484
============================================================
RETAIL [11.0%]
IHOP 27,170 1,594
Smart & Final* 144,600 3,148
Triarc, Cl B 154,400 2,654
------------------------------------------------------------
TOTAL RETAIL 7,396
============================================================
RUBBER & PLASTIC [2.5%]
Spartech 58,200 1,708
============================================================
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT [1.4%]
PerkinElmer 40,000 969
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 12
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND (CONCLUDED)
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS [1.9%]
Timberland, Cl A* 49,000 $ 1,275
============================================================
TOTAL COMMON STOCK
(Cost $49,256) 63,676
========================================================
CORPORATE BONDS [1.8%]
FINANCIAL SERVICES [1.5%]
Labranche (A)
9.500%, 05/15/09 $ 1,000 1,050
============================================================
LABORATORY EQUIPMENT [0.3%]
Sea Containers, Ser B (C)
10.750%, 10/15/06 250 208
============================================================
TOTAL CORPORATE BONDS
(Cost $1,258) 1,258
========================================================
REPURCHASE AGREEMENT (B) [3.5%]
Morgan Stanley,
5.000%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $2,327,967
(collateralized by a U.S. Treasury
Bond, par value $2,178,304,
2.375%, 1/15/25; with total
market value $2,373,587) 2,327 2,327
------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $2,327) 2,327
========================================================
TOTAL INVESTMENTS [100.0%]
(Cost $52,841) $67,261
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $67,254 ($ THOUSANDS).
* 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, 2007, THE
VALUE OF THESE SECURITIES AMOUNTED TO $1,050 ($ THOUSANDS), REPRESENTING
1.5% OF THE NET ASSETS OF THE FUND.
(B) TRI-PARTY REPURCHASE AGREEMENT
(C) IN DEFAULT ON INTEREST PAYMENTS
CL -- CLASS
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 13
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
93.1% Information Technology
2.7% Short-Term Investments
1.6% Industrials
1.5% Healthcare
1.1% Consumer Discretionary
* Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
COMMON STOCK [97.3%]
AUDIO & VIDEO EQUIPMENT
MANUFACTURING [1.1%]
Sony, ADR 625 $ 32
============================================================
COMMUNICATIONS EQUIPMENT
MANUFACTURING [8.6%]
Harris 700 36
Motorola 2,725 48
Nokia, ADR 2,150 49
Qualcomm 2,600 111
------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT
MANUFACTURING 244
============================================================
COMPUTER & PERIPHERAL EQUIPMENT MANUFACTURING [23.3%]
Apple Computer* 1,375 128
Dell* 1,525 35
EMC-Mass* 4,505 62
Hewlett-Packard 3,823 154
IBM 2,100 198
NAVTEQ* 800 28
Sandisk* 675 30
Western Digital* 1,750 29
------------------------------------------------------------
TOTAL COMPUTER & PERIPHERAL EQUIPMENT MANUFACTURING 664
============================================================
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES [6.0%]
Autodesk* 800 30
Cerner* 400 22
Cognizant Technology Solutions,
Cl A* 800 70
Electronic Data Systems 1,725 48
------------------------------------------------------------
TOTAL COMPUTER SYSTEMS DESIGN & RELATED SERVICES 170
============================================================
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
DATA PROCESSING SERVICES [1.3%]
First Data 1,400 $ 38
============================================================
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES [1.4%]
eBay* 1,175 39
============================================================
FIBER OPTIC CABLE MANUFACTURING [2.2%]
Corning* 2,800 64
============================================================
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING [2.3%]
L-3 Communications Holdings 500 44
PerkinElmer 875 21
------------------------------------------------------------
TOTAL NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING 65
============================================================
ON-LINE INFORMATION SERVICES [6.7%]
Google* 300 137
Yahoo!* 1,725 54
------------------------------------------------------------
TOTAL ON-LINE INFORMATION SERVICES 191
============================================================
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT
MANUFACTURING [21.8%]
Amphenol, Cl A 500 32
Analog Devices 1,250 43
Applied Materials 3,650 67
Arrow Electronics* 500 19
Broadcom, Cl A* 1,200 39
Cisco Systems* 4,705 120
Intel 4,950 95
Jabil Circuit 850 18
Linear Technology 1,200 38
Maxim Integrated Products 900 27
Micron Technology 1,650 20
QLogic* 900 15
Texas Instruments 2,900 87
------------------------------------------------------------
TOTAL SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT
MANUFACTURING 620
============================================================
SOFTWARE PUBLISHERS [21.3%]
Adobe Systems* 1,000 42
Akamai Technologies* 725 36
Citrix Systems* 1,175 38
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 14
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
Electronic Arts* 1,075 $ 54
Intuit* 900 24
McAfee* 975 28
Microsoft 7,350 205
Oracle* 6,765 123
Symantec* 3,300 57
------------------------------------------------------------
TOTAL SOFTWARE PUBLISHERS 607
============================================================
TELECOMMUNICATIONS [1.3%]
Amdocs* 1,000 36
============================================================
TOTAL COMMON STOCK
(Cost $2,507) 2,770
========================================================
CASH EQUIVALENTS [2.7%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.22%** 56,476 56
SEI Daily Income Trust,
Prime Obligation Fund,
Cl I, 5.33%** 20,205 20
------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $76) 76
========================================================
TOTAL INVESTMENTS [100.0%]
(Cost $2,583) $2,846
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $2,846 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY
** RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 15
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CORPORATE BOND FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
37.1% Financials
27.3% Industrial
9.3% Telephone
7.4% Banks
6.5% U.S. Government Mortgage-Backed Obligations
3.2% Commercial Paper
2.9% Utilities
1.8% U.S. Treasury Obligation
1.6% Municipal Bond
1.0% Gas Transmission
0.8% Foreign Governments
0.5% Mortgage-Backed
0.4% Short-Term Investment
0.2% Transportation
* Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
CORPORATE BONDS [85.3%]
AIR TRANSPORTATION [0.2%]
Federal Express, Ser A2
7.890%, 09/23/08 $ 109 $ 111
============================================================
AUTOMOTIVE [2.6%]
DaimlerChrysler
5.875%, 03/15/11 570 581
Toyota Motor Credit
4.250%, 03/15/10 1,000 985
------------------------------------------------------------
TOTAL AUTOMOTIVE 1,566
============================================================
BANKS [10.3%]
Bankers Trust
7.250%, 10/15/11 500 539
Crestar Finance
6.500%, 01/15/08 1,035 1,048
Deutsche Bank
7.500%, 04/25/09 500 522
JPMorgan Chase
7.125%, 06/15/09 675 702
Union Planters Bank
5.125%, 06/15/07 1,215 1,214
US Bancorp
6.875%, 09/15/07 350 352
Wachovia Bank
4.800%, 11/01/14 770 741
Wells Fargo
4.625%, 08/09/10 1,000 989
-----------------------------------------------------------
TOTAL BANKS 6,107
============================================================
BEAUTY PRODUCTS [1.4%]
Avon Products
7.150%, 11/15/09 800 839
============================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
CHEMICALS [0.4%]
Praxair
6.625%, 10/15/07 $ 200 $ 201
============================================================
COMMUNICATION & MEDIA [4.3%]
AOL Time Warner
6.750%, 04/15/11 395 416
Comcast Cable Communications
Holdings
8.375%, 03/15/13 440 503
News America Holdings
9.250%, 02/01/13 450 534
Walt Disney
5.700%, 07/15/11 1,100 1,126
------------------------------------------------------------
TOTAL COMMUNICATION & MEDIA 2,579
============================================================
COMPUTER SYSTEM DESIGN & SERVICES [3.2%]
Cisco Systems
5.500%, 02/22/16 1,000 1,007
IBM, MTN
4.375%, 06/01/09 900 890
------------------------------------------------------------
TOTAL COMPUTERS SYSTEM DESIGN
& SERVICES 1,897
============================================================
DRUGS [1.7%]
Abbott Laboratories
5.375%, 05/15/09 1,000 1,007
============================================================
ELECTRICAL SERVICES [2.9%]
American Electric Power
5.250%, 06/01/15 490 482
Iowa Electric Light & Power
6.000%, 10/01/08 200 202
WPS Resources
7.000%, 11/01/09 1,000 1,042
------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 1,726
============================================================
FINANCIAL SERVICES [15.2%]
American General Finance,
Ser I, MTN
4.625%, 05/15/09 1,000 987
CIT Group
5.400%, 03/07/13 1,000 993
Citigroup
5.850%, 08/02/16 1,000 1,030
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 16
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CORPORATE BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
General Electric Capital,
Ser A, MTN
6.875%, 11/15/10 $ 250 $ 264
6.000%, 06/15/12 1,500 1,558
HSBC Finance
5.250%, 04/15/15 1,000 986
John Deere Capital
4.625%, 04/15/09 750 742
MBNA
4.625%, 09/15/08 410 407
National Rural Utilities,
Ser C, MTN
7.250%, 03/01/12 1,000 1,090
SLM, Ser A, MTN
5.440%, 01/25/08 1,000 1,001
------------------------------------------------------------
TOTAL FINANCIAL SERVICES 9,058
============================================================
FOOD, BEVERAGE & TOBACCO [6.5%]
Anheuser-Busch
7.500%, 03/15/12 1,190 1,306
Bottling Group
5.500%, 04/01/16 1,000 1,005
Diageo Capital
3.375%, 03/20/08 1,000 982
General Mills
6.000%, 02/15/12 560 579
------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 3,872
============================================================
FOREIGN GOVERNMENTS [0.8%]
United Mexican States
5.875%, 01/15/14 450 464
============================================================
INSURANCE [6.2%]
Aflac
6.500%, 04/15/09 1,150 1,179
AXA Financial
7.750%, 08/01/10 1,000 1,079
Berkshire Hathaway Finance
4.125%, 01/15/10 1,475 1,444
------------------------------------------------------------
TOTAL INSURANCE 3,702
============================================================
INVESTMENT BANKER/BROKER DEALER [10.6%]
Credit Suisse
5.500%, 08/15/13 1,000 1,012
Goldman Sachs Group
5.625%, 01/15/17 1,020 1,010
Jefferies Group
5.500%, 03/15/16 665 651
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
JPMorgan Chase
6.750%, 02/01/11 $ 500 $ 526
Lehman Brothers Holdings
8.250%, 06/15/07 1,100 1,106
Merrill Lynch
4.000%, 11/15/07 1,000 991
Morgan Stanley
6.750%, 04/15/11 30 32
3.875%, 01/15/09 1,000 980
------------------------------------------------------------
TOTAL INVESTMENT BANKER/BROKER DEALER 6,308
============================================================
PETROLEUM & FUEL PRODUCTS [1.9%]
Chevron
8.625%, 06/30/10 200 224
ConocoPhillips
6.375%, 03/30/09 305 313
Duke Capital
5.500%, 03/01/14 625 612
------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 1,149
============================================================
REAL ESTATE INVESTMENT TRUST [0.1%]
Kimco Realty, Ser B, MTN
7.860%, 11/01/07 67 68
============================================================
RETAIL [6.7%]
Home Depot
5.250%, 12/16/13 1,000 993
Kohl's
6.300%, 03/01/11 1,000 1,041
Kroger
5.500%, 02/01/13 450 449
Target
5.875%, 07/15/16 500 514
Wal-Mart Stores
4.375%, 07/12/07 1,000 998
------------------------------------------------------------
TOTAL RETAIL 3,995
============================================================
TELEPHONES & TELECOMMUNICATIONS [9.3%]
Bellsouth
4.200%, 09/15/09 1,000 979
Deutsche Telekom International
Finance
5.250%, 07/22/13 475 469
New Cingular Wireless Services
8.125%, 05/01/12 400 450
Southwestern Bell
6.625%, 07/15/07 750 752
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 17
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CORPORATE BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Sprint Capital
8.375%, 03/15/12 $ 550 $ 614
Verizon Communications
7.250%, 12/01/10 25 27
5.550%, 02/15/16 1,000 1,000
Vodafone Group
5.350%, 02/27/12 1,205 1,208
------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 5,499
============================================================
WASTE DISPOSAL [1.0%]
Waste Management
6.875%, 05/15/09 575 593
============================================================
TOTAL CORPORATE BONDS
(Cost $50,729) 50,741
========================================================
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS [6.5%]
FHLMC REMIC,
Ser 2982, Cl NB
5.500%, 02/15/29 340 342
FHLMC REMIC,
Ser R004, Cl Al
5.125%, 12/15/13 1,077 1,071
FNMA REMIC,
Ser 2002-56, Cl MC
5.500%, 09/25/17 1,196 1,204
FNMA REMIC,
Ser 2006, Cl AB
6.000%, 06/25/16 189 190
FNMA REMIC,
Ser 2007-B1, Cl BE
5.450%, 12/25/20 1,060 1,058
------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $3,856) 3,865
========================================================
U.S. TREASURY OBLIGATION [1.8%]
U.S. Treasury Inflation Index Note
2.000%, 01/15/14 1,095 1,084
------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATION
(Cost $1,132) 1,084
========================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
MUNICIPAL BOND [1.6%]
CALIFORNIA [1.6%]
City of Industry, Sales Tax Project,
RB, MBIA
5.000%, 01/01/12 $ 955 $ 953
============================================================
TOTAL MUNICIPAL BOND
(Cost $980) 953
========================================================
MORTGAGE-BACKED SECURITY [0.5%]
Residential Asset Mortgage
Products, Ser 2003-RS5, Cl AI4
3.700%, 09/25/31 267 264
------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITY
(Cost $264) 264
========================================================
COMMERCIAL PAPER [3.2%]
Giro Balanced Funding
5.310%, 04/16/07 1,000 998
Ranger Funding
5.310%, 04/16/07 914 912
------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $1,910) 1,910
========================================================
CASH EQUIVALENT [0.4%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.22%* 212,608 213
------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $213) 213
========================================================
TOTAL INVESTMENTS [99.3%]
(Cost $59,084) $59,030
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $59,473 ($ THOUSANDS).
*RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
CL -- CLASS
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 18
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
63.9% U.S. Government Mortgage-Backed Obligations
35.4% U.S. Government Agency Obligations
0.7% Short-Term Investment
* Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS [63.8%]
FFCB CMO, Ser IA2, Cl 1
5.220%, 10/21/13 $1,275 $ 1,275
FFCB CMO, Ser IAB3, Cl 1
5.590%, 12/11/12 2,969 2,979
FHLMC REMIC, Ser R002,
Cl AH
4.750%, 07/15/15 3,360 3,317
FHLMC REMIC, Ser R003,
Cl AG
5.125%, 10/15/15 2,466 2,452
FHLMC REMIC, Ser R004,
Cl Al
5.125%, 12/15/13 2,010 1,999
FHLMC REMIC, Ser R005,
Cl AB
5.500%, 12/15/18 2,747 2,753
FHLMC REMIC, Ser R007,
Cl AC
5.875%, 05/15/16 2,478 2,494
FHLMC REMIC, Ser R009,
Cl AK
5.750%, 12/15/18 2,635 2,644
FHLMC REMIC, Ser R010,
Cl AB
5.500%, 12/15/19 2,967 2,974
FNMA REMIC, Ser R009,
Cl AJ
5.750%, 12/15/18 3,035 3,054
FNMA REMIC, Ser 119,
Cl DG
5.500%, 01/25/36 1,949 1,942
FNMA, Pool 766620
4.573%, 03/01/34 1,019 1,008
GNMA, Pool 81318
4.500%, 04/20/35 1,059 1,052
GNMA, Pool 81447
5.000%, 08/20/35 116 116
------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $30,016) 30,059
========================================================
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS [35.3%]
FHLB
6.200%, 03/22/21 $2,000 $ 1,996
5.250%, 09/13/13 2,500 2,547
5.125%, 09/10/10 1,000 1,010
4.375%, 09/17/10 1,400 1,380
FHLMC
5.500%, 03/05/09 2,000 2,000
FNMA
7.125%, 06/15/10 2,000 2,136
5.500%, 03/15/11 3,000 3,069
5.010%, 11/10/10 2,500 2,483
------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $16,619) 16,621
========================================================
CASH EQUIVALENT [0.7%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.22%* 351,696 352
------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $352) 352
========================================================
TOTAL INVESTMENTS [99.8%]
(Cost $46,987) $47,032
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $47,106 ($ THOUSANDS).
* RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
CL -- CLASS
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
REMIC -- REAL ESTATE MORTGAGE INSURANCE CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 19
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND
[Bar Graph Omitted]=
Percentages are as follows:
SECTOR WEIGHTINGS*:
28.1% Education
15.1% General Revenue
12.4% Public Facilities
12.1% General Obligation
9.2% Industrial Development
7.1% Water
4.4% Healthcare
4.4% Power
4.1% Utilities
1.8% Transportation
0.9% Airports
0.4% Short-Term Investment
* Percentages based on total investments.
- -----------------------------------------------------------------
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
MUNICIPAL BOND [98.1%]
ALABAMA [0.8%]
Jefferson County, Sewer Authority,
Ser B-8, RB, FSA
Callable 02/01/10 @ 100
5.250%, 02/01/14 $ 250 $ 260
============================================================
CALIFORNIA [85.2%]
Anaheim, Public Financing
Authority, Distribution System
Project, Second Lien, RB, MBIA
5.000%, 10/01/08 250 255
Bay Area Infrastructure Financing
Authority, State Payment
Acceleration Project, RB, XLCA
Callable 08/01/11 @ 100
5.000%, 08/01/14 500 526
Berkeley, Ser C, GO, MBIA
Callable 05/11/07 @ 101
5.000%, 09/01/10 95 96
Beverly Hills, Unified School
District Authority, Ser B, GO
Pre-Refunded @ 101 (A)
4.700%, 06/01/08 50 51
Big Bear Lake, Water Authority,
RB, MBIA
6.000%, 04/01/11 200 213
Burbank, Public Financing
Authority, Golden State
Redevelopment Project,
Ser A, TA, AMBAC
Callable 12/01/13 @ 100
5.250%, 12/01/18 175 188
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
California State, Daily Kindergarten
University Project, Ser A, GO
Callable 04/10/07 @ 100 (B)
3.650%, 05/01/34 $ 500 $ 500
California State, Department of
Water Resources, Power Supply
Project, Ser A, RB, AMBAC
Callable 05/01/12 @ 101
5.500%, 05/01/15 600 656
California State, Department of
Water Resources, Ser A, RB,
AMBAC
Callable 05/01/12 @ 101
5.500%, 05/01/14 300 328
California State, Department of
Water Resources, Ser W,
RB, FSA
5.500%, 12/01/13 400 443
California State, Economic
Recovery Authority, Ser A, GO
5.250%, 01/01/11 500 529
California State, Economic
Recovery Authority, Ser C, RB
Callable 04/10/07 @ 100
3.650%, 07/01/23 400 400
California State, Educational
Facilities Authority, Pooled
College & University Projects,
Ser A, RB
4.300%, 04/01/09 100 101
California State, Educational
Facilities Authority, University of
San Francisco, RB, MBIA
6.000%, 10/01/08 300 311
California State, GO
5.000%, 04/01/10 215 223
4.750%, 06/01/07 100 100
California State, GO
Callable 02/01/12 @ 100
5.000%, 02/01/18 175 183
California State, GO
Callable 08/01/13 @ 100
5.250%, 02/01/21 250 268
California State, GO
Pre-Refunded @ 100 (A)
5.250%, 09/01/10 200 211
5.250%, 10/01/10 50 53
California State, GO, FGIC
5.500%, 02/01/10 340 358
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 20
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
California State, GO,
Pre-Refunded @ 100 (A)
5.250%, 10/01/10 $ 20 $ 21
California State, Health Facilities
Financing Authority, Cedars-Sinai
Medical Center Project,
Ser A, RB
Pre-Refunded @ 101 (A)
6.250%, 12/01/09 490 529
California State, Infrastructure &
Economic Authority, Bay Area
Toll Bridges Project,
Ser A, RB, FSA
Pre-Refunded @ 100 (A)
5.250%, 07/01/13 125 136
California State, Infrastructure &
Economic Authority, Energy
Efficiency Master Trust,
Ser A, RB
5.000%, 03/01/11 315 331
California State, Infrastructure &
Economic Authority, RB, MBIA
Pre-Refunded @ 101 (A)
5.500%, 06/01/10 350 374
California State, Public Works
Board Lease, California State
University, Ser C, RB
5.000%, 10/01/07 100 101
California State, Public Works
Board Lease, Department of
Corrections Project,
Ser B, RB, MBIA
Callable 09/01/08 @ 101
5.000%, 09/01/21 100 103
California State, Public Works
Board Lease, Department of
Corrections, Ser A, RB
Callable 09/01/08 @ 101
5.250%, 09/01/15 250 257
California State, Public Works
Board Lease, Department of
Corrections, Ser D, RB, FSA
5.250%, 06/01/15 500 542
California State, Public Works
Board Lease, Department of
Corrections-State Prisons
Project, Ser A, RB, AMBAC
5.250%, 12/01/13 600 644
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
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 $ 165
California State, Public Works
Board Lease, Trustees California
State University, Ser A, RB
Callable 10/01/08 @ 101
5.250%, 10/01/11 100 103
California State, Public Works
Board Lease, Various University
Projects, RB, MBIA
5.500%, 06/01/14 250 272
California State, Systemwide
Project, Ser A, RB, FSA
4.000%, 11/01/14 300 307
California State, University of
California, Ser K, RB, MBIA
Pre-Refunded @ 101 (A)
5.000%, 09/01/08 150 154
Capistrano, Unified School
District, Special Tax,
Pre-Refunded @ 102 (A)
5.750%, 09/01/09 270 289
Coachella Valley, Water District
Authority, Flood Control
Project, COP, AMBAC
Callable 10/01/07 @ 102
5.000%, 10/01/11 250 256
Corona, Public Financing
Authority, City Hall Project,
Ser B, MBIA, RB
Callable 09/01/12 @ 100
5.250%, 09/01/16 350 377
Culver City, Redevelopment
Finance Authority, TA, AMBAC
5.500%, 11/01/14 75 81
Escondido, Union School District,
Refunding & Financing Project,
COP, MBIA
4.750%, 07/01/19 735 783
Evergreen, School District,
Ser C, GO, FGIC
Pre-Refunded @ 101 (A)
5.250%, 09/01/08 200 207
Fruitvale, School District, GO, FSA
Callable 08/01/09 @ 102
5.000%, 08/01/19 200 209
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 21
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Golden State, Tobacco
Settlement, Ser A, RB
Callable 06/01/09 @ 100
5.000%, 06/01/19 $ 250 $ 256
Golden State, Tobacco
Settlement, Ser A, RB
Callable 06/01/10 @ 100
5.000%, 06/01/20 500 518
Golden State, Tobacco
Settlement, Ser B, RB
Pre-Refunded @ 100 (A)
5.750%, 06/01/08 250 256
Hawthorne, School District,
COP, FSA
Pre-Refunded @ 101 (A)
6.000%, 11/01/10 500 545
Indio, Public Financing Authority,
Public Capital Improvement
Project, Ser B, RB, AMBAC
3.800%, 11/01/37 500 501
Irvine, Improvement Board,
Act 1915 Project,
District #93-14, SAB (B)
3.650%, 09/02/25 500 500
Irwindale, Community
Redevelopment Agency,
Ser C, TA, AMBAC
4.500%, 12/01/12 685 712
Kern, High School District,
GO, ETM
7.100%, 08/01/12 290 339
Los Angeles County, Public Works
Finance Authority, Master
Refunding Project,
Ser A, RB, MBIA
5.000%, 12/01/11 400 424
5.000%, 12/01/12 275 294
Los Angeles County, Public Works
Finance Authority, Master
Refunding Project,
Ser A, RB, MBIA
5.000%, 12/01/15 500 545
Los Angeles County, Public Works
Finance Authority, Regional
Park & Open Project, Ser A, RB
Pre-Refunded @ 101 (A)
5.500%, 10/01/07 325 331
Los Angeles, Municipal
Improvement Authority,
Central Library Project,
Ser A, RB, MBIA
5.250%, 06/01/13 230 250
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Los Angeles, Property Tax
Project, Ser A, GO, MBIA
4.000%, 09/01/09 $ 250 $ 253
Los Angeles, Wastewater
Systems Authority, RB, FSA
4.500%, 06/01/09 250 255
M-S-R Public Power
Agency, San Juan Project,
Ser G, RB, MBIA
Callable 07/01/07 @ 101
5.250%, 07/01/11 100 101
Newport Beach, Hoag Memorial
Hospital, Ser C, RB
Callable 04/10/07 @ 100
3.650%, 10/01/26 400 400
Northern California, Transmission
Resource Authority, Ore
Transmission Project,
Ser A, RB, MBIA
7.000%, 05/01/13 250 286
Oakland, Joint Powers Financing
Authority, Oakland Convention
Center Project, RB, AMBAC
5.500%, 10/01/11 300 323
Oakland, Redevelopment Agency,
Central District Redevelopment
Project, TA, AMBAC
5.500%, 02/01/14 475 505
Oakland, State Building Authority,
Elihu M Harris Project,
Ser A, RB, AMBAC
Pre-Refunded @ 101 (A)
5.500%, 04/01/08 100 103
Oakley, Civic Center Project, COP
4.000%, 05/01/12 230 233
Oxnard, School District,
Election 2006 Project,
Ser A, GO, CIFG
6.750%, 08/01/11 300 337
Pasadena, Electric Improvements
Authority, RB, FSA
4.500%, 06/01/07 160 160
Pinole, Redevelopment Agency
Project, TA, FSA
Callable 08/01/09 @ 101
5.250%, 08/01/14 100 105
Riverside, RB
Callable 10/01/08 @ 101
5.375%, 10/01/12 90 93
Riverside, RB
Pre-Refunded @ 101 (A)
5.375%, 10/01/08 10 10
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 22
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Rowland, Unified School
District, Ser A, GO
Callable 08/01/16 @ 100
5.000%, 08/01/20 $ 290 $ 312
Sacramento County, Sanitation
District Funding Authority,
RB, ETM
Callable 05/11/07 @ 101
5.000%, 12/01/07 100 101
Sacramento, City Unified School
District, Ser A, GO, FSA
4.250%, 07/01/09 75 76
San Bernardio, Community
College District, Election 2002
Project, Ser B, GO, MBIA
Pre-Refunded @ 100 (A)
5.250%, 08/01/14 500 551
San Diego, Unified School
District, Election 1998 Project,
Ser B-1, GO, MBIA
5.000%, 07/01/17 1,500 1,646
San Diego, Unified School
District, Election 1998 Project,
Ser E, GO, FSA
Callable 07/01/13 @ 100
5.000%, 07/01/28 400 428
San Diego, University School
District, Election 1998 Project,
Ser E, GO, FSA
Callable 07/01/13 @ 101
5.250%, 07/01/16 100 109
San Francisco (City & County),
Airports Commission Authority,
Second Ser-27B, RB, FGIC
5.250%, 05/01/12 250 265
San Francisco (City & County), GO
Callable 06/15/10 @ 102
5.000%, 06/15/11 235 248
San Jose, University School
District, Ser A, GO, FSA
Callable 08/01/11 @ 101
5.375%, 08/01/19 150 161
San Ysidro, School District, Election
1997 Project, Ser C, GO, MBIA
6.000%, 08/01/11 205 225
Sanger, Unified School District,
GO, MBIA
5.350%, 08/01/15 250 269
Santa Monica, Public Safety
Facilities Project, RB
Callable 07/01/09 @ 101
5.250%, 07/01/14 100 104
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Solano County, COP, MBIA
Pre-Refunded @ 100 (A)
5.250%, 11/01/12 $ 100 $ 108
Southern California, Metropolitan
Water District Authority,
Ser A, RB
5.750%, 07/01/21 280 328
Southern Kern, Unified School
District, Ser A, GO, FGIC
Callable 11/01/13 @ 100
4.500%, 11/01/18 220 227
Tamalpais, Unified High School
District, GO, MBIA
Callable 08/01/11 @ 101
4.875%, 08/01/17 100 105
Vallejo, City Unified School
District, Election 1997 Project,
GO, AMBAC
8.600%, 08/01/10 580 671
Wiseburn, School District,
Ser A, GO, FGIC
4.200%, 08/01/07 125 125
------------------------------------------------------------
TOTAL CALIFORNIA 26,928
============================================================
FLORIDA [0.9%]
Seminole County, Water & Sewer
Authority, Refunding Project, RB
Callable 10/01/15 @ 100
5.000%, 10/01/19 250 268
============================================================
GEORGIA [0.6%]
Georgia State, Metropolitan
Atlanta Rapid Transportation
Authority, Second Indenture
Project, Ser A, RB, MBIA
6.250%, 07/01/07 200 201
============================================================
ILLINOIS [0.7%]
Illinois State, Civic Center
Authority, RB, FSA
Callable 12/15/10 @ 100
5.500%, 12/15/14 200 212
============================================================
MISSOURI [0.7%]
St. Louis, Parking Facilities
Authority, Downtown Parking
Facilities Project, Sub-Ser A, RB
Pre-Refunded @ 100 (A)
6.000%, 02/01/12 200 220
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 23
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
NEW JERSEY [1.2%]
New Jersey State, Turnpike
Authority, RB, MBIA, ETM
6.500%, 01/01/16 $ 315 $ 364
============================================================
NEW YORK [3.4%]
New York State, Environmental
Facilities Authority, Ser D, RB
Callable 08/15/14 @ 100
4.750%, 08/15/21 500 522
New York State, Ser E, RB
6.000%, 04/01/14 500 556
------------------------------------------------------------
TOTAL NEW YORK 1,078
============================================================
TEXAS [2.4%]
Rio Grande, City Consolidated
Independent School District, GO
Pre-Refunded @ 100 (A)
5.875%, 08/15/10 200 214
San Angelo, Waterworks &
Sewer System Authority,
Refunding & Improvements
Projects, RB, FSA
Callable 04/01/11 @ 100
5.250%, 04/01/19 100 105
Travis County, Health Facilities
Development Authority,
Ascension Health Credit
Project, Ser A, RB, MBIA
Pre-Refunded @ 101 (A)
6.250%, 11/15/09 400 429
------------------------------------------------------------
TOTAL TEXAS 748
============================================================
UTAH [0.5%]
Central, Water Conservancy
District, Ser D, GO
Pre-Refunded @ 100 (A)
4.600%, 04/01/09 140 143
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
PUERTO RICO [1.7%]
Puerto Rico, Electric Power
Authority, Power Project,
Ser CC, RB, MBIA
Callable 07/01/07 @ 101.5
5.250%, 07/01/09 $ 100 $ 102
Puerto Rico, Municipal Finance
Agency, Ser A, RB, FSA
Callable 07/01/07 @ 101.5
5.250%, 07/01/10 130 133
Puerto Rico, Public Buildings
Authority, Government
Facilities Project, Ser J,
RB, AMBAC
Callable 07/01/12 @ 100
5.000%, 07/01/36 300 318
------------------------------------------------------------
TOTAL PUERTO RICO 553
============================================================
TOTAL MUNICIPAL BOND
(Cost $31,018) 30,975
========================================================
CASH EQUIVALENT [0.3%]
Federated California Municipal
Money Market Fund,
Cl, 3.41%* 106,886 107
============================================================
TOTAL CASH EQUIVALENT
(Cost $107) 107
========================================================
TOTAL INVESTMENTS [98.4%]
(Cost $31,125) $31,082
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $31,603 ($ THOUSANDS).
* RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
(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.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CIFG -- CDC IXIS FINANCIAL GUARANTY
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 24
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
70.8% Industrial
10.8% Financials
5.4% Telephone
5.3% Utilities
4.6% Gas Transmission
1.7% Short-Term Investments
1.0% Transportation
0.4% Common Stock
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
CORPORATE BONDS [97.3%]
ADVERTISING [0.7%]
Advanstar Communications
10.750%, 08/15/10 $100 $ 108
Gray Television
9.250%, 12/15/11 100 105
Olympus Communications (D)
10.625%, 07/15/04 100 --
R.H. Donnelley, Ser A-2
6.875%, 01/15/13 50 49
------------------------------------------------------------
TOTAL ADVERTISING 262
============================================================
AEROSPACE & DEFENSE [1.0%]
DRS Technologies
6.625%, 02/01/16 100 101
Esterline Technologies
7.750%, 06/15/13 100 103
L-3 Communications
5.875%, 01/15/15 200 194
------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 398
============================================================
AGRICULTURE [0.4%]
American Rock Salt
9.500%, 03/15/14 150 152
============================================================
ALUMINUM [0.1%]
Aleris International (A)
10.000%, 12/15/16 50 52
============================================================
APPAREL/TEXTILES [0.5%]
Levi Strauss
9.750%, 01/15/15 100 110
Phillips-Van Heusen
7.250%, 02/15/11 75 76
------------------------------------------------------------
TOTAL APPAREL/TEXTILES 186
============================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
AUTO RENT & LEASE [1.5%]
Avis Budget Car Rental (A)
7.750%, 05/15/16 $100 $ 102
Hertz
10.500%, 01/01/16 150 171
Rental Services (A)
9.500%, 12/01/14 100 106
United Rentals North America
6.500%, 02/15/12 100 100
Williams Scotsman
8.500%, 10/01/15 100 105
------------------------------------------------------------
TOTAL AUTO RENT & LEASE 584
============================================================
AUTOMOTIVE [2.7%]
General Motors
7.125%, 07/15/13 850 795
UCI Holdco (A)
0.000%, 12/15/13 154 153
United Auto (A)
7.750%, 12/15/16 100 101
------------------------------------------------------------
TOTAL AUTOMOTIVE 1,049
============================================================
AUTOPARTS [0.6%]
Accuride
8.500%, 02/01/15 150 151
Asbury Automotive Group (A)
7.625%, 03/15/17 75 75
------------------------------------------------------------
TOTAL AUTOPARTS 226
============================================================
BEAUTY PRODUCTS [0.3%]
Chattem
7.000%, 03/01/14 100 99
============================================================
BROADCASTING & CABLE [6.5%]
Albritton Communications
7.750%, 12/15/12 150 154
Barrington Broadcasting Group (A)
10.500%, 08/15/14 100 105
Cablevision Systems, Ser B
8.000%, 04/15/12 250 254
CCO Holdings
8.750%, 11/15/13 250 259
Charter Communications Holdings
10.250%, 09/15/10 400 422
Coleman Cable
9.875%, 10/01/12 100 104
CSC Holdings
7.625%, 07/15/18 100 101
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 25
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Echostar DBS
6.625%, 10/01/14 $200 $ 201
Fisher Communication
8.625%, 09/15/14 150 161
Insight Communications (B)
12.250%, 02/15/11 100 104
Kabel Deutschland
10.625%, 07/01/14 200 223
Mediacom Capital
7.875%, 02/15/11 150 150
Nexstar Finance Holdings (B)
0.000%, 04/01/13 200 193
Videotron Ltee
6.875%, 01/15/14 100 101
------------------------------------------------------------
TOTAL BROADCASTING & CABLE 2,532
============================================================
BUILDING & CONSTRUCTION [3.0%]
Ainsworth Lumber
7.250%, 10/01/12 100 74
6.750%, 03/15/14 100 69
Beazer Homes USA
8.375%, 04/15/12 100 96
DR Horton
5.625%, 01/15/16 125 116
Esco (A)
8.625%, 12/15/13 50 53
Goodman Global Holdings
7.875%, 12/15/12 75 75
Interline Brands
8.125%, 06/15/14 50 52
International Utility Structures (D)
10.750%, 02/01/08 100 1
KB Home
8.625%, 12/15/08 50 51
Nortek
8.500%, 09/01/14 200 194
Panolam Industries (A)
10.750%, 10/01/13 250 269
Ply Gem Industries
9.000%, 02/15/12 150 130
------------------------------------------------------------
TOTAL BUILDING & CONSTRUCTION 1,180
============================================================
BUILDING & CONSTRUCTION SUPPLIES [0.1%]
Tube City IMS (A)
9.750%, 02/01/15 25 26
============================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
BUSINESS SERVICES [0.8%]
Corrections
7.500%, 05/01/11 $100 $ 103
FTI Consulting
7.625%, 06/15/13 50 52
Geo Group
8.250%, 07/15/13 150 156
------------------------------------------------------------
TOTAL BUSINESS SERVICES 311
============================================================
CHEMICALS [4.2%]
Basell Af SCA (A)
8.375%, 08/15/15 250 261
BCP Crystal US Holdings
9.625%, 06/15/14 45 51
Crystal Holdings, Ser B (B)
0.000%, 10/01/14 73 68
Equistar Chemicals
10.625%, 05/01/11 150 158
Georgia Gulf (A)
9.500%, 10/15/14 150 144
Huntsman International (A)
7.875%, 11/15/14 115 119
Lyondell Chemical
8.250%, 09/15/16 60 64
Mosaic (A)
7.375%, 12/01/14 75 78
Nova Chemicals
6.500%, 01/15/12 250 238
Polymer Holdings (B)
11.043%, 07/15/14 250 221
PolyOne
10.625%, 05/15/10 100 105
Rockwood Specialties Group
10.625%, 05/15/11 73 77
Terra Capital (A)
7.000%, 02/01/17 50 50
------------------------------------------------------------
TOTAL CHEMICALS 1,634
============================================================
CHEMICALS [0.3%]
Innophos
8.875%, 08/15/14 100 104
============================================================
CIRCUIT BOARDS [0.1%]
Viasystems
10.500%, 01/15/11 50 50
============================================================
COAL MINING [0.4%]
Alpha Natural Resources
10.000%, 06/01/12 150 161
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 27
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
COMMERCIAL SERVICES [1.3%]
Aramark (A) (C)
8.860%, 02/01/15 $100 $ 103
Iron Mountain
8.750%, 07/15/18 150 161
8.625%, 04/01/13 100 103
Jarden
7.500%, 05/01/17 75 76
Yankee Acquisition (A)
9.750%, 02/15/17 50 50
------------------------------------------------------------
TOTAL COMMERCIAL SERVICES 493
============================================================
COMPUTER SYSTEM DESIGN & SERVICES [0.3%]
Compucom (A)
12.000%, 11/01/14 125 133
============================================================
CONSUMER PRODUCTS & SERVICES [4.6%]
Ames True Temper (C)
9.360%, 01/15/12 100 102
Central Garden & Pet
9.125%, 02/01/13 100 104
Gregg Appliances
9.000%, 02/01/13 150 158
Johnsondiversey Holdings (B)
0.000%, 05/15/13 200 206
Johnsondiversey, Ser B
9.625%, 05/15/12 150 157
Libbey Glass (C)
12.348%, 06/01/11 100 109
MSX International (A)
12.500%, 04/01/12 100 101
Prestige Brands
9.250%, 04/15/12 90 93
Sealy Mattress
8.250%, 06/15/14 200 210
Southern States Cooperative (A)
10.500%, 11/01/10 200 212
Spectrum Brands
7.375%, 02/01/15 300 240
Steinway Musical (A)
7.000%, 03/01/14 100 99
------------------------------------------------------------
TOTAL CONSUMER PRODUCTS & SERVICES 1,791
============================================================
CONTAINERS & PACKAGING [1.9%]
Crown Americas
7.750%, 11/15/15 150 156
Graham Packaging
9.875%, 10/15/14 100 102
Intertape Polymer US
8.500%, 08/01/14 50 44
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Owens-Brockway Glass Container
6.750%, 12/01/14 $100 $ 99
Plastipak Holdings (A)
8.500%, 12/15/15 100 106
Solo Cup
8.500%, 02/15/14 150 128
Stone Container Finance
7.375%, 07/15/14 100 96
------------------------------------------------------------
TOTAL CONTAINERS & PACKAGING 731
============================================================
DIVERSIFIED METALS & MINING [0.3%]
MAAX
9.750%, 06/15/12 200 137
============================================================
DIVERSIFIED OPERATIONS [1.5%]
Bombardier (A)
8.000%, 11/15/14 75 77
Kansas City Southern Railway
9.500%, 10/01/08 100 105
Stena
7.000%, 12/01/16 200 198
Trinity Industries
6.500%, 03/15/14 200 198
------------------------------------------------------------
TOTAL DIVERSIFIED OPERATIONS 578
============================================================
EDUCATIONAL SERVICES [0.3%]
Education Management
10.250%, 06/01/16 60 65
8.750%, 06/01/14 60 63
------------------------------------------------------------
TOTAL EDUCATIONAL SERVICES 128
============================================================
UTILITIES [0.3%]
NRG Energy
7.375%, 02/01/16 100 103
============================================================
ELECTRICAL PRODUCTS [5.4%]
AES (A)
9.000%, 05/15/15 300 320
7.750%, 03/01/14 100 105
Allegheny Energy Supply
7.800%, 03/15/11 200 212
Aquila
7.625%, 11/15/09 100 105
Calpine Generating (D)
11.070%, 04/01/10 200 207
CMS Energy
7.500%, 01/15/09 100 103
6.875%, 12/15/15 150 156
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 27
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Edison Mission Energy
7.730%, 06/15/09 $200 $ 207
ESI Tractebel Acquisitions, Ser B
7.990%, 12/30/11 58 59
General Cable (A)
7.125%, 04/01/17 100 101
Mirant North America
7.375%, 12/31/13 150 154
Reliant Energy
9.500%, 07/15/13 200 218
Sierra Pacific Resources
8.625%, 03/15/14 70 76
TECO Energy
7.200%, 05/01/11 100 106
------------------------------------------------------------
TOTAL ELECTRICAL PRODUCTS 2,129
============================================================
ENERGY & POWER [0.3%]
Aventine Renewable Energy
Holding (A)
10.000%, 04/01/17 100 103
============================================================
ENTERTAINMENT [7.9%]
AMC Entertainment
11.000%, 02/01/16 100 114
Buffalo Thunder Development
Authority (A)
9.375%, 12/15/14 100 102
Choctaw Resort Development
Enterprise (A)
7.250%, 11/15/19 194 195
Chukchansi Economic
Development Authority (A)
8.000%, 11/15/13 150 155
Circus & Eldorado Joint Venture/
Silver Legacy Capital
10.125%, 03/01/12 150 157
Greektown Holdings (A)
10.750%, 12/01/13 125 134
Herbst Gaming
8.125%, 06/01/12 150 152
Inn of the Mountain Gods
Resort & Casino
12.000%, 11/15/10 150 163
Isle of Capri Casinos
7.000%, 03/01/14 200 196
Leslie's Poolmart
7.750%, 02/01/13 100 101
MGM Mirage
8.500%, 09/15/10 200 214
6.750%, 09/01/12 100 99
6.000%, 10/01/09 100 100
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Mohegan Tribal Gaming Authority
7.125%, 08/15/14 $150 $ 152
MTR Gaming Group, Ser B
9.750%, 04/01/10 200 209
OED/Diamond Jo
8.750%, 04/15/12 100 99
Penn National Gaming
6.875%, 12/01/11 100 100
Snoqualmie Entertainment
Authority (A)
9.150%, 02/01/14 100 102
Speedway Motorsports
6.750%, 06/01/13 100 99
Tunica-Biloxi Gaming Authority (A)
9.000%, 11/15/15 125 133
Waterford Gaming (A)
8.625%, 09/15/12 101 107
Wynn Las Vegas Capital
6.625%, 12/01/14 200 198
------------------------------------------------------------
TOTAL ENTERTAINMENT 3,081
============================================================
FINANCIAL SERVICES [3.7%]
Atlantic Broadband Finance
9.375%, 01/15/14 100 102
Ford Motor Credit
7.375%, 10/28/09 200 200
7.375%, 02/01/11 350 344
GMAC
6.750%, 12/01/14 675 664
Smurfit Kappa Funding
7.750%, 04/01/15 150 153
------------------------------------------------------------
TOTAL FINANCIAL SERVICES 1,463
============================================================
FOOD, BEVERAGE & TOBACCO [3.0%]
Alliance One (A)
8.500%, 05/15/12 75 76
Beverages & More (A)
9.250%, 03/01/12 100 102
Chiquita Brands International
7.500%, 11/01/14 100 90
Del Monte
8.625%, 12/15/12 50 52
Friendly Ice Cream
8.375%, 06/15/12 200 196
Land O' Lakes
8.750%, 11/15/11 6 6
Le-Natures (A) (D)
10.000%, 06/15/13 150 54
Leiner Health Products
11.000%, 06/01/12 100 100
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 28
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
National Beef Packing
10.500%, 08/01/11 $100 $ 105
Pilgrim's Pride
8.375%, 05/01/17 100 99
Smithfield Foods, Ser B
8.000%, 10/15/09 100 104
Swift
12.500%, 01/01/10 200 210
------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 1,194
============================================================
FORESTRY [0.2%]
Tembec Industries
7.750%, 03/15/12 150 91
============================================================
GAS/NATURAL GAS [1.1%]
MarkWest Energy Partners, Ser B
8.500%, 07/15/16 150 156
Semgroup (A)
8.750%, 11/15/15 175 178
Williams (A)
7.250%, 02/01/17 100 106
------------------------------------------------------------
TOTAL GAS/NATURAL GAS 440
============================================================
GLASS PRODUCTS [0.3%]
Advanced Medical Optics (A)
7.500%, 05/01/17 100 101
============================================================
HOTELS & LODGING [0.3%]
Seminole Hard Rock
Entertainment (A) (C)
7.848%, 03/15/14 100 102
============================================================
MACHINERY [0.9%]
Case New Holland
9.250%, 08/01/11 100 105
Terex
7.375%, 01/15/14 100 103
Trimas
9.875%, 06/15/12 150 150
------------------------------------------------------------
TOTAL MACHINERY 358
============================================================
MEDICAL [2.0%]
Bio-Rad Laboratories
7.500%, 08/15/13 100 103
Biovail
7.875%, 04/01/10 100 102
CDRV Investors (B)
0.000%, 01/01/15 200 172
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
MQ Associates (B)
0.000%, 08/15/12 $150 $ 61
Mylan Laboratories
5.750%, 08/15/10 150 149
Tenet Healthcare
9.250%, 02/01/15 200 198
------------------------------------------------------------
TOTAL MEDICAL 785
============================================================
MEDICAL PRODUCTS & SERVICES [0.7%]
HCA (A)
9.250%, 11/15/16 50 54
Idearc (A)
8.000%, 11/15/16 125 129
Vanguard Health Holding
9.000%, 10/01/14 100 101
------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 284
============================================================
METALS & MINING [0.7%]
Freeport-McMoRan Copper & Gold
8.250%, 04/01/15 125 134
Novelis
7.250%, 02/15/15 150 159
------------------------------------------------------------
TOTAL METALS & MINING 293
============================================================
MISCELLANEOUS BUSINESS SERVICES [3.3%]
Affinion Group
11.500%, 10/15/15 150 165
Allied Security Escrow
11.375%, 07/15/11 150 153
Carriage Services
7.875%, 01/15/15 200 205
CCM Merger (A)
8.000%, 08/01/13 225 226
Compagnie Generale de
Geophysique
7.500%, 05/15/15 100 103
Integrated Alarm Services
Group (A)
12.000%, 11/15/11 100 99
Jacobs Entertainment
9.750%, 06/15/14 75 77
Mobile Services Group (A)
9.750%, 08/01/14 150 159
Seneca Gaming
7.250%, 05/01/12 100 101
------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 1,288
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 29
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
------------------------------------------------------------
MISCELLANEOUS MANUFACTURING [1.5%]
AGY Holding (A)
11.000%, 11/15/14 $100 $ 104
American Railcar Industries (A)
7.500%, 03/01/14 50 51
Cellu Tissue Holdings
9.750%, 03/15/10 100 100
Dresser-Rand Group
7.375%, 11/01/14 133 136
KI Holdings (B)
0.000%, 11/15/14 250 210
------------------------------------------------------------
TOTAL MISCELLANEOUS MANUFACTURING 601
============================================================
PAPER & RELATED PRODUCTS [3.1%]
Abitibi-Consolidated
7.750%, 06/15/11 100 96
Appleton Papers, Ser B
9.750%, 06/15/14 100 103
Domtar
7.125%, 08/15/15 150 149
Exopack Holding
11.250%, 02/01/14 100 107
Georgia-Pacific
7.700%, 06/15/15 100 103
JSG Funding
9.625%, 10/01/12 37 39
Newark Group
9.750%, 03/15/14 200 208
Norampac
6.750%, 06/01/13 100 99
Norske Skog Canada
7.375%, 03/01/14 250 242
Verso Paper Holdings (A)
9.125%, 08/01/14 65 68
------------------------------------------------------------
TOTAL PAPER & RELATED PRODUCTS 1,214
============================================================
PETROLEUM & FUEL PRODUCTS [9.7%]
Atlas Pipeline Partners
8.125%, 12/15/15 200 206
Chesapeake Energy
6.250%, 01/15/18 100 99
Clayton William Energy
7.750%, 08/01/13 150 141
Colorado Interstate Gas
6.800%, 11/15/15 150 160
Comstock Resources
6.875%, 03/01/12 150 145
Dynegy Holdings
6.875%, 04/01/11 100 100
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
El Paso
7.000%, 05/15/11 $275 $ 289
El Paso Production Holding
7.750%, 06/01/13 200 209
Forest Oil
8.000%, 06/15/08 150 153
8.000%, 12/15/11 100 104
Frontier Oil
6.625%, 10/01/11 150 150
Giant Industries
8.000%, 05/15/14 200 216
Pacific Energy
7.125%, 06/15/14 100 104
6.250%, 09/15/15 250 250
Parker Drilling
9.625%, 10/01/13 150 163
Pogo Producing
6.875%, 10/01/17 300 292
Pride International
7.375%, 07/15/14 100 103
Regency Energy Partners (A)
8.375%, 12/15/13 100 102
Swift Energy
7.625%, 07/15/11 100 103
Targa Resources (A)
8.500%, 11/01/13 200 204
Whiting Petroleum
7.000%, 02/01/14 300 292
Williams
7.625%, 07/15/19 50 54
6.375%, 10/01/10 (A) 150 152
------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 3,791
============================================================
PRINTING & PUBLISHING [4.0%]
Dex Media (B)
8.738%, 11/15/13 200 186
Dex Media East
9.875%, 11/15/09 100 104
Dex Media West, Ser B
8.500%, 08/15/10 100 105
Haights Cross Operating
11.750%, 08/15/11 200 210
Lyondell Chemical
8.000%, 09/15/14 60 63
MediMedia USA (A)
11.375%, 11/15/14 50 53
Primedia
8.000%, 05/15/13 100 104
Reader's Digest Association (A)
9.000%, 02/15/17 75 72
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 30
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
RH Donnelley
6.875%, 01/15/13 $200 $ 194
Sheridan Group
10.250%, 08/15/11 150 157
Valassis Communications (A)
8.250%, 03/01/15 140 138
Visant Holding
8.750%, 12/01/13 100 104
Warner Music Group
7.375%, 04/15/14 100 95
------------------------------------------------------------
TOTAL PRINTING & PUBLISHING 1,585
============================================================
REAL ESTATE INVESTMENT TRUST [0.4%]
Host Marriott, Ser O
6.375%, 03/15/15 150 149
============================================================
RETAIL [1.8%]
Buffets
12.500%, 11/01/14 100 104
Group 1 Automotive
8.250%, 08/15/13 100 104
Landry's Restaurants, Ser B
7.500%, 12/15/14 100 99
NPC International
9.500%, 05/01/14 100 103
Rite Aid
8.125%, 05/01/10 100 103
Sbarro (A)
10.375%, 02/01/15 50 52
True Temper Sports
8.375%, 09/15/11 150 133
------------------------------------------------------------
TOTAL RETAIL 698
============================================================
RUBBER & PLASTIC [0.4%]
Goodyear Tire & Rubber
9.000%, 07/01/15 150 165
============================================================
SEMI-CONDUCTORS [1.1%]
Amkor Technology
9.250%, 06/01/16 100 104
Flextronics International
6.250%, 11/15/14 100 97
Freescale Semiconductor (A)
10.125%, 12/15/16 150 151
Sensata Technologies
8.000%, 05/01/14 100 99
------------------------------------------------------------
TOTAL SEMI-CONDUCTORS 451
============================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
SPECIAL PURPOSE ENTITY [0.4%]
Hawker Beechcraft Acquision (A)
8.500%, 04/01/15 $100 $ 104
Seitel (A)
9.750%, 02/15/14 50 51
------------------------------------------------------------
TOTAL SPECIAL PURPOSE ENTITY 155
============================================================
STEEL & STEEL WORKS [1.2%]
AK Steel
7.875%, 02/15/09 58 58
7.750%, 06/15/12 150 153
Gerdau Ameristeel
10.375%, 07/15/11 100 106
International Steel Group
6.500%, 04/15/14 150 156
------------------------------------------------------------
TOTAL STEEL & STEEL WORKS 473
============================================================
TELEPHONES & TELECOMMUNICATIONS [8.3%]
American Cellular, Ser B
10.000%, 08/01/11 25 26
American Tower
7.125%, 10/15/12 150 154
Centennial Communications
10.125%, 06/15/13 100 108
8.125%, 02/01/14 50 52
Cincinnati Bell
8.375%, 01/15/14 185 189
Dobson Cellular Systems
9.875%, 11/01/12 230 251
Dobson Communications (C)
9.610%, 10/15/12 250 257
Insight Midwest
9.750%, 10/01/09 104 106
IPCS
11.500%, 05/01/12 150 165
Level 3 Financing (A)
9.250%, 11/01/14 125 128
MetroPCS Wireless (A)
9.250%, 11/01/14 100 106
Nordic Telephone (A)
8.875%, 05/01/16 50 54
NTL Cable
9.125%, 08/15/16 150 158
PanAmSat
9.000%, 08/15/14 96 104
Qwest
7.625%, 06/15/15 564 602
5.625%, 11/15/08 100 100
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 31
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000)/SHARES VALUE (000)
- -----------------------------------------------------------------
Rogers Wireless
9.625%, 05/01/11 $100 $ 114
7.250%, 12/15/12 50 53
Rural Cellular
9.750%, 01/15/10 200 206
Telenet Group Holding (A) (B)
9.651%, 06/15/14 22 21
Time Warner Telecom Holdings
9.250%, 02/15/14 100 107
Triton PCS
8.500%, 06/01/13 150 155
West (A)
11.000%, 10/15/16 55 58
------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 3,274
============================================================
TRANSPORTATION SERVICES [1.0%]
Navios Maritime Holdings (A)
9.500%, 12/15/14 100 104
NCL
10.625%, 07/15/14 100 99
Ship Finance International
8.500%, 12/15/13 200 205
------------------------------------------------------------
TOTAL TRANSPORTATION SERVICES 408
============================================================
WASTE DISPOSAL [0.3%]
Allied Waste North America, Ser B
7.125%, 05/15/16 100 102
============================================================
WHOLESALE [0.6%]
Activant Solutions
9.500%, 05/01/16 100 98
Baldor Electric
8.625%, 02/15/17 50 53
Collins & Aikman Floor Cover, Ser B
9.750%, 02/15/10 100 102
------------------------------------------------------------
TOTAL WHOLESALE 253
============================================================
TOTAL CORPORATE BONDS
(Cost $37,317) 38,131
========================================================
COMMON STOCK [0.4%]
BROADCASTING & CABLE [0.2%]
Olympus* 8,500 9
Time Warner Cable, Cl A* 1,784 67
------------------------------------------------------------
TOTAL BROADCASTING & CABLE 76
============================================================
DESCRIPTION SHARES VALUE (000)
- -----------------------------------------------------------------
BUILDING & CONSTRUCTION SUPPLIES [0.0%]
Dayton Superior* 149 $ 2
============================================================
RETAIL [0.2%]
Crunch Equity Holding* 56 84
============================================================
TOTAL COMMON STOCK
(Cost $143) 162
========================================================
CASH EQUIVALENTS [1.6%]
Evergreen Select Money Market,
Institutional Class, 5.34%** 318,132 318
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.22%** 318,132 318
------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $636) 636
========================================================
WARRANTS [0.0%]
Diva Systems*,
Expires 03/01/08 (A) 600 --
Pliant*, Expires 06/01/10 (A) 100 --
------------------------------------------------------------
TOTAL WARRANTS
(Cost $0) --
========================================================
TOTAL INVESTMENTS [99.3%]
(Cost $38,096) $38,929
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $39,205 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY
** RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
(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, 2007, THE
VALUE OF THESE SECURITIES AMOUNTED TO $7,238 ($ THOUSANDS), REPRESENTING
18.5% OF THE NET ASSETS OF THE FUND.
(B) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON MARCH 31, 2007. THE COUPON ON A STEP BOND CHANGES ON A SPECIFIC
DATE.
(C) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS
IS THE RATE IN EFFECT ON MARCH 31, 2007.
(D) IN DEFAULT ON INTEREST PAYMENTS.
CL -- CLASS
SER -- SERIES
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 32
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
41.8% Repurchase Agreements
29.0% Commercial Paper
17.3% Corporate Bond
9.5% Certificate of Deposit
2.1% U.S. Government Agency Obligations
0.2% Mortgaged-Backed
0.1% Cash Equivalent
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
COMMERCIAL PAPER (A) [29.0%]
ASSET BACKED SECURITIES [16.9%]
Amsterdam Funding
5.250%, 04/10/07 $ 25,000 $ 24,967
Barton Capital
5.300%, 04/11/07 25,000 24,963
Duke Funding High Grade
5.275%, 04/20/07 35,000 34,903
Kitty Hawk Fund
5.250%, 04/20/07 35,000 34,903
Laguna
5.240%, 06/05/07 35,000 34,669
Ranger Funding
5.250%, 04/18/07 25,000 24,938
Versailles
5.280%, 04/19/07 35,000 34,908
Windmill Funding
5.250%, 04/10/07 25,000 24,967
Yorktown Capital
5.260%, 05/08/07 25,000 24,865
------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES 264,083
============================================================
BANKS [1.6%]
Lloyds TSB Bank
5.265%, 04/02/07 25,000 24,996
============================================================
COMPUTER SYSTEM DESIGN & SERVICES [4.5%]
Hewlett-Packard
5.250%, 04/24/07 35,000 34,869
IBM Capital
5.250%, 04/24/07 35,000 34,883
------------------------------------------------------------
TOTAL COMPUTERS SYSTEM
DESIGN & SERVICES 69,752
============================================================
FINANCE AUTO LOANS [2.2%]
Toyota Motor Credit
5.235%, 04/12/07 35,000 34,944
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
INSURANCE [1.6%]
Prudential Funding
5.260%, 04/19/07 $ 25,000 $ 24,934
============================================================
SECURITY BROKERS & DEALERS [2.2%]
Bear Stearns
5.240%, 04/13/07 35,000 34,939
============================================================
TOTAL COMMERCIAL PAPER
(Cost $453,648) 453,648
========================================================
CORPORATE BONDS [17.3%]
BANKS [5.5%]
Bank of America
5.310%, 04/24/07 35,000 35,000
CIT Group
7.375%, 04/02/07 6,250 6,250
Royal Bank of Canada
5.320%, 03/20/08 19,225 19,227
UBS
5.400%, 11/28/07 25,000 25,000
------------------------------------------------------------
TOTAL BANKS 85,477
============================================================
FINANCIAL SERVICES [7.7%]
American Honda (B)
5.320%, 01/28/08 35,000 35,000
General Electric
5.388%, 03/04/08 25,000 25,019
Sigma Financial (B)
5.318%, 11/21/07 35,000 35,000
SLM, Ser A, MTN
5.625%, 04/10/07 25,000 25,001
------------------------------------------------------------
TOTAL FINANCIAL SERVICES 120,020
============================================================
INSURANCE [0.5%]
Prudential Insurance (B)
7.650%, 07/01/07 8,350 8,396
============================================================
INVESTMENT BANKER/BROKER DEALER [1.3%]
Lehman Brothers Holdings
4.000%, 01/22/08 20,000 19,793
============================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 33
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
PERSONAL CREDIT INSTITUTIONS [2.3%]
American Express Bank
5.290%, 01/22/08 $ 20,000 $ 20,000
Household Finance
5.836%, 02/15/08 16,300 16,381
------------------------------------------------------------
TOTAL PERSONAL CREDIT INSTITUTIONS 36,381
============================================================
TOTAL CORPORATE BONDS
(Cost $270,067) 270,067
========================================================
CERTIFICATES OF DEPOSIT [9.5%]
Bank of Ireland
5.340%, 08/09/07 29,000 29,000
Barclays Bank
5.330%, 03/26/08 25,000 25,000
Citibank
5.305%, 04/27/07 35,000 35,000
Deutsche Bank
5.260%, 04/05/07 35,000 35,000
Societe Generale
5.290%, 07/26/07 25,000 25,000
------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $149,000) 149,000
========================================================
U.S. GOVERNMENT AGENCY OBLIGATIONS [2.1%]
FHLB
4.250%, 04/16/07 5,000 4,998
5.150%, 06/22/07 5,000 5,000
5.250%, 10/26/07 5,000 5,000
5.300%, 03/19/08 5,000 5,000
FNMA
5.150%, 11/21/07 5,000 4,998
5.150%, 02/04/08 7,984 7,981
------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $32,977) 32,977
========================================================
MORTGAGE-BACKED SECURITY [0.2%]
Capital Auto Receivable Asset
Trust, Ser 06, Cl SN-1 2,780 2,780
============================================================
TOTAL MORTGAGE-BACKED SECURITY
(Cost $2,780) 2,780
========================================================
DESCRIPTION SHARES/FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
CASH EQUIVALENT [0.1%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 5.17%* 931,926 $ 932
------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $932) 932
========================================================
REPURCHASE AGREEMENTS (C) [41.9%]
Banc of America
5.380%, date 03/30/07,
repurchased on 04/02/07,
repurchase price $125,056,042
(collateralized by a U.S.
Government obligation,
par value $198,729,018,
5.000%, 03/01/34; with
total market value
$127,500,001) $125,000 125,000
Barclay Bank
5.390%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $154,269,262
(collateralized by various U.S.
Government obligations,
ranging in par value
$9,658,139-$46,108,532
5.645%-6.000%, 07/01/36-
03/01/37; with total market
value $157,284,000) 154,200 154,200
Bear Stearns
5.380%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $150,067,250
(collateralized by various U.S.
Government obligations,
ranging in par value
$29,915,000-$45,084,648,
4.000%-7.500%, 08/01/13-
03/01/36; with total market
value $153,002,992) 150,000 150,000
Lehman Brothers
5.370%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $100,044,750
(collateralized by various U.S.
Government obligations,
ranging in par value
$22,480,000-$93,500,000,
6.000%-6.500%, 01/01/24-
03/01/37 with total
market value $102,001,887) 100,000 100,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 34
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
PRIME MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Nomura
5.410%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $125,056,354
(collateralized by various U.S.
Government obligations,
ranging in par value
$41,433,743-$100,001,008,
6.157%-6.885%, 07/01/35-
09/01/36; with total market
value $127,500,001) $125,000 $125,000
------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $654,200) 654,200
========================================================
TOTAL INVESTMENTS [100.1%]
(Cost $1,563,604) $1,563,604
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $1,562,566 ($ THOUSANDS).
* RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2007.
(A) THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.
(B) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE
SECURITIES ACT OF 1933. THESE SECURITIES MAY BE RESOLD IN
TRANSACTIONS EXEMPT FROM REGISTRATION NORMALLY TO QUALIFIED
INSTITUTIONS. ON MARCH 31, 2007, THE VALUE OF THESE
SECURITIES AMOUNTED TO $78,396 ($ THOUSANDS), REPRESENTING
5.0% OF THE NET ASSETS OF THE FUND.
(C) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
FHLB -- FEDERAL HOME LOAN BANK
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 35
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
50.4% Repurchase Agreements
49.6% U.S. Government Agency Obligations
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS [49.5%]
FAMC
5.250%, 01/11/08 $ 14,725 $ 14,725
FHLB
5.100%, 04/03/07 (A) 50,000 49,986
5.150%, 04/09/07 (A) 75,000 74,914
5.150%, 04/11/07 (A) 100,000 99,857
4.250%, 04/16/07 31,930 31,917
5.170%, 04/20/07 (A) 50,000 49,864
3.500%, 05/15/07 45,000 44,901
4.625%, 05/18/07 36,010 35,984
5.150%, 06/22/07 25,000 25,000
3.125%, 08/15/07 15,530 15,411
4.750%, 08/17/07 21,000 20,961
5.260%, 10/23/07 25,000 25,000
5.250%, 10/26/07 37,060 37,060
4.125%, 10/26/07 20,000 19,875
5.500%, 12/27/07 15,000 15,029
5.290%, 01/10/08 25,500 25,500
5.250%, 01/16/08 9,445 9,445
4.000%, 02/01/08 10,520 10,413
5.280%, 02/07/08 20,000 20,003
5.250%, 02/13/08 10,780 10,795
5.125%, 02/26/08 23,690 23,699
5.300%, 03/05/08 20,000 20,000
5.300%, 03/19/08 25,000 25,000
FHLMC
3.750%, 04/15/07 200,000 199,843
5.150%, 04/30/07 (A) 25,000 24,896
5.248%, 11/30/07 (A) 13,107 12,662
5.350%, 03/26/08 25,000 25,000
FHLMC MTN
5.140%, 12/14/07 38,645 38,637
FNMA
5.250%, 04/15/07 46,383 46,379
3.250%, 04/20/07 5,000 4,995
5.140%, 05/01/07 (A) 50,000 49,786
3.875%, 05/15/07 50,000 49,910
4.250%, 07/15/07 20,024 19,960
5.150%, 11/21/07 25,000 24,989
5.150%, 02/04/08 10,000 9,996
------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,212,392) 1,212,392
========================================================
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
REPURCHASE AGREEMENTS (B) [50.2%]
Bank of America
5.380%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $225,100,875
(collateralized by a U.S.
Government obligation,
par value $237,925,037,
5.000%, 03/01/35; with
total market value
$229,500,000) $225,000 $225,000
Barclay Bank
5.390%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $229,734,394
(collateralized by U.S.
Government obligations,
ranging in par value
$3,228,203-$67,696,245,
3.791%-6.019%, 04/01/09-
11/01/36; with total market
value $234,294,000) 229,700 229,700
Bear Stearns, Inc. & Co.
5.320%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $225,033,253
(collateralized by U.S. Treasury
obligations, ranging in par value
$44,716,780-$54,456,000,
4.500%-6.000%, 04/01/20-
12/01/36, with total market
value $229,503,173) 225,000 225,000
Deutsche Bank
5.380%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $150,067,250
(collateralized by U.S.
Government obligations,
ranging in par value
$21,755,880-$37,144,000,
5.500%-6.500%, 08/25/15-
08/25/32; with total market
value $153,000,000) 150,000 150,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 36
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Lehman Brothers
5.280%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $100,014,670
(collateralized by U.S.
Government obligations,
ranging in par value
$4,980,000-$50,115,372,
4.500%-5.000%, 09/01/18-
11/01/19; with total market
value $102,004,940) $100,000 $100,000
Nomura
5.410%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $200,030,059
(collateralized by U.S.
Government obligations,
ranging in par value
$346,369-$66,266,563,
3.725%-8.799%, 12/01/16-
04/01/36; with total market
value $204,000,001) 200,000 200,000
UBS Warburg
5.310%, dated 03/30/07,
repurchased on 04/02/07,
repurchase price $100,059,000
(collateralized by U.S.
Government obligations,
ranging in par value
$26,255,000-$58,885,000,
4.500%-5.000%, 111/01/20-
12/01/36; with total market
value $102,001,748) 100,000 100,000
------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,229,700) 1,229,700
========================================================
TOTAL INVESTMENTS [99.7%]
(Cost $2,442,092) $2,442,092
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $2,448,995 ($ THOUSANDS).
(A) THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.
(B) TRI-PARTY REPURCHASE AGREEMENT
FAMC -- FEDERAL AGRICULTURAL MORTGAGE CORPORATION
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 37
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
[Bar Graph Omitted]
Percentages are as follows:
SECTOR WEIGHTINGS*:
15.7% General Obligation
12.5% General Revenue
11.8% Housing
10.2% Water
9.4% Power
8.2% Education
8.0% Industrial Development
7.2% Transportation
5.6% Healthcare
5.2% Utilities
4.9% Public Facilities
0.8% Commercial Paper
0.5% Equipment
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
MUNICIPAL BONDS [99.9%]
CALIFORNIA [99.3%]
ABAG, Finance Authority for
Non-Profit Corporations,
Hamlin School Project,
Ser A, GO (A) (B) (C)
3.550%, 08/01/32 $ 1,500 $ 1,500
ABAG, Finance Authority for
Non-Profit Corporations,
Public Policy Institute,
Ser A, RB (A) (B) (C)
3.550%, 11/01/31 2,915 2,915
ABAG, Finance Authority for
Non-Profit Corporations,
School of the Sacred
Heart, Ser B, RB (A) (B) (C)
3.690%, 06/01/30 8,100 8,100
ABAG, Finance Authority for
Non-Profit Corporations,
Ser C, COP (A) (B) (C)
3.650%, 10/01/27 9,920 9,920
ABAG, Finance Authority for
Non-Profit Corporations,
Ser D, COP (A) (B) (C)
3.650%, 10/01/27 2,400 2,400
Anaheim, Multi-Family Housing
Authority, Heritage Village
Apartments Project, Ser A,
RB (A) (B) (D)
3.550%, 07/15/33 4,685 4,685
Berkeley, TRAN
4.000%, 10/31/07 9,550 9,580
Berkeley, YMCA Project,
RB (A) (B) (C)
3.550%, 06/01/23 1,850 1,850
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
California State, Community
College Financing Authority,
Ser A, TRAN, FSA
4.500%, 06/29/07 $ 4,500 $ 4,509
California State, Daily
Kindergarten University,
Ser B-1, GO (A) (B) (C)
3.650%, 05/01/34 4,200 4,200
California State, Department of
Water Resource & Power,
Ser A, RB, MBIA (A) (B)
5.250%, 05/01/07 2,590 2,593
California State, Department of
Water Resource & Power,
Ser C-15, RB (A) (B) (C)
3.550%, 05/01/22 5,000 5,000
California State, Department of
Water Resource & Power,
Sub-Ser F-2, RB (A) (B) (C)
3.670%, 05/01/20 8,100 8,100
California State, Department of
Water Resource & Power,
Sub-Ser G-3, RB, FSA (A) (B)
3.550%, 05/01/16 1,050 1,050
California State, Department of
Water Resource & Power,
Sub-Ser G-4, RB, FSA (A) (B)
3.490%, 05/01/16 10,000 10,000
California State, Department of
Water Resourse & Power,
Ser B-6, RB (A) (B) (C)
3.610%, 05/01/22 1,200 1,200
California State, Economic
Development Financing
Authority, KQED Project,
RB (A) (B) (C)
3.550%, 04/01/20 1,300 1,300
California State, Economic
Recovery Authority,
Ser C, RB
Callable 04/10/07 @ 100
(A) (B)
3.650%, 07/01/23 11,135 11,135
California State, Economic
Recovery Authority,
Ser C-12, RB (A) (B)
3.550%, 07/01/23 1,100 1,100
California State, Economic
Recovery Authority,
Ser C-13, RB, XLCA (A) (B)
3.550%, 07/01/23 5,000 5,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 38
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
California State, Economic
Recovery Authority,
Ser C-4, RB (A) (B)
3.680%, 07/01/23 $ 5,325 $ 5,325
California State, Economic
Recovery Authority,
Ser C-8, RB (A) (B) (C)
3.550%, 07/01/23 3,000 3,000
California State, Educational
Facilities Authority, Chapman
University Project,
RB (A) (B) (C)
3.550%, 12/01/30 1,000 1,000
California State, Educational
Facilities Authority, University
San Francisco, RB (A) (B) (C)
3.470%, 05/01/30 5,200 5,200
California State, Health Facilities
Finance Authority, Adventist
Health Systems Project,
Ser B, RB (A) (B) (C)
3.630%, 09/01/25 4,400 4,400
California State, Health Facilities
Finance Authority, Adventist
Hospital Project,
Ser A, RB, MBIA (A) (B)
3.680%, 09/01/28 4,400 4,400
California State, Infrastructure &
Economic Authority, Asian Art
Museum Foundation Project,
RB, MBIA (A) (B)
3.680%, 06/01/34 14,100 14,100
California State, Infrastructure &
Economic Authority,
Contemporary Jewish Museum
Project, RB (A) (B) (C)
3.650%, 12/01/36 5,000 5,000
California State, Kindergarten-
University Project,
Ser B-3, GO
3.610%, 05/01/34 2,300 2,300
California State, RAN
4.500%, 06/29/07 7,650 7,670
California State, Ser B,
Sub-Ser B-1, GO (A) (B) (C)
3.560%, 05/01/40 19,000 19,000
California State, Ser B,
Sub-Ser B-7, GO (A) (B) (C)
3.650%, 05/01/40 3,425 3,425
California State, Ser B-1,
GO (A) (B) (C)
3.530%, 05/01/33 7,000 7,000
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
California State, Ser C-2,
GO (A) (B) (C)
3.550%, 05/01/33 $ 7,700 $ 7,700
California State, Weekly
Kindgarten University,
Ser B-5, GO (A) (B) (C)
3.560%, 05/01/34 11,525 11,525
California Statewide,
Communities Development
Authority, Childrens
Hospital Project, Ser A, RB,
AMBAC (A) (B)
3.540%, 08/15/32 3,210 3,210
California Statewide,
Communities Development
Authority, Childrens Hospital
Project, Ser B, RB,
AMBAC (A) (B)
3.540%, 08/15/32 1,800 1,800
California Statewide,
Communities Development
Authority, Monterey County
Project, Ser A-3, TRAN
4.500%, 06/29/07 5,000 5,011
California Statewide,
Communities Development
Authority, North Peninsula
Jewish Project, RB (A) (B) (C)
3.680%, 07/01/34 6,300 6,300
Contra Costa County,
Ser A, TRAN
4.500%, 12/11/07 5,000 5,038
Corona, Multi-Family Housing
Authority, Country Hills
Project, Ser A, RB (A) (B) (D)
3.540%, 02/01/25 6,355 6,355
East Bay, Municipal Utilities
District Authority,
Ser A, RB, FSA (A) (B)
3.540%, 06/01/25 8,915 8,915
East Bay, Municipal Utilities
District Authority,
Sub-Ser 1, RB,
XLCA (A) (B)
3.550%, 06/01/38 6,700 6,700
East Bay, Municipal Utilities
District Authority,
Sub-Ser B-1, RB,
XLCA (A) (B)
3.550%, 06/01/38 13,880 13,880
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 39
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
East Bay, Municipal Utilities
District Authority,
Sub-Ser B-3, RB,
XLCA (A) (B)
3.500%, 06/01/38 $ 4,985 $ 4,985
Eastern California, Municipal
Water District, COP,
Ser B, TA, FGIC (A) (B)
3.550%, 07/01/20 5,000 5,000
Fremont, Family Center Finance
Project, COP (A) (B) (C)
3.490%, 08/01/28 4,300 4,300
Fremont, Office Building
Improvement & Fire
Equipment Project,
COP (A) (B) (C)
3.490%, 08/01/30 3,345 3,345
Fresno, Multi-Family Housing
Authority, Stonepine
Apartment Project,
Ser A, RB (A) (B) (D)
3.540%, 02/15/31 2,495 2,495
Fresno, Palm Lakes Apartment
Project, RB (A) (B) (C)
3.580%, 05/01/15 3,615 3,615
Glendale, Police Building
Project, COP (A) (B)
3.540%, 06/01/30 19,600 19,600
Grant, Joint Union High School
District, School Facility
Bridge Funding Project,
COP, FSA (A) (B)
3.550%, 09/01/34 1,000 1,000
Huntington Beach, Union High
School District, School
Facility Bridge Funding
Project, COP, FSA (A) (B)
3.550%, 09/01/28 1,890 1,890
Irvine Ranch, Water District
#140-240-105-250,
GO (A) (B) (C)
3.610%, 04/01/33 9,125 9,125
Irvine Ranch, Water District,
GO (A) (B) (C)
3.650%, 01/01/21 3,300 3,300
Irvine, Improvement Board, Act
1915 Project, District #03-19,
Ser A, SAB (A) (B) (C)
3.610%, 09/02/29 5,393 5,393
Irvine, Improvement Board, Act
1915 Project, District #03-19,
Ser B, SAB (A) (B)
3.650%, 09/02/29 2,000 2,000
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Irvine, Improvement Board, Act
1915 Project, District #05-21,
Ser A, RB (A) (B) (C)
3.650%, 09/02/31 $15,500 $ 15,500
Irvine, Improvement Board, Act
1915 Project, District #87-8,
SAB (A) (B) (C)
3.630%, 09/02/24 1,100 1,100
Irvine, Improvement Board, Act
1915 Project, District #93-14,
SAB (A) (B) (C)
3.650%, 09/02/25 5,267 5,267
Kern County, TRAN
4.500%, 06/29/07 5,000 5,012
Kings County, Multi-Family
Housing Authority, Edgewater
Isle Apartments Project,
Ser A, RB (A) (B) (D)
3.540%, 02/15/31 13,410 13,410
Lemon Grove, Multifamily
Housing, Hillside Terrace
Project, RB (A) (B) (D)
3.540%, 02/15/31 4,955 4,955
Los Angeles County, Multi-
Family Housing Authority,
Malibu Canyon Apartments
Project, Ser B, RB (A) (B) (C)
3.560%, 06/01/10 8,000 8,000
Los Angeles County,
Ser A, TRAN
4.500%, 06/29/07 13,000 13,030
Los Angeles, Department of
Water & Power, Sub-Ser B-1,
RB (A) (B)
3.540%, 07/01/35 7,000 7,000
Los Angeles, Metropolitan
Transit Commission, Ser A,
RB, FGIC (A) (B)
3.540%, 07/01/12 8,530 8,530
Los Angeles, Metropolitan
Transportation Authority,
Proposition C, Ser A, RB,
MBIA (A) (B)
3.550%, 07/01/20 11,015 11,015
Los Angeles, Unified School
District, Administration
Building Project, Ser A,
COP, AMBAC (A) (B)
3.500%, 10/01/24 8,365 8,365
Los Angeles, Unified School
District, TRAN
4.000%, 12/03/07 3,155 3,164
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 40
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Los Angeles, Wastewater
Systems, Sub-Ser B-1,
RB, XLCA (A) (B)
3.520%, 06/01/28 $ 4,480 $ 4,480
Los Angeles, Water & Power
Resource Authority,
Power System Project,
Sub-Ser A-7, RB (A) (B)
3.560%, 07/01/35 15,000 15,000
Los Angeles, Water & Power
Resource Authority,
Sub-Ser B-2, RB (A) (B)
3.500%, 07/01/34 2,000 2,000
Los Angeles, Water & Power
Resource Authority,
Sub-Ser B-3, RB (A) (B)
3.650%, 07/01/34 5,475 5,475
Moorpark, Unified School
District, Ser A, COP,
FSA (A) (B)
3.550%, 11/01/28 1,000 1,000
Mount Diablo, Unified School
District, TRAN
4.000%, 11/21/07 5,000 5,018
Newport Beach, Hoag
Memorial Hospital,
Ser A, RB (A) (B)
3.650%, 10/01/26 5,700 5,700
Newport Beach, Hoag
Memorial Hospital,
Ser B, RB (A) (B)
3.650%, 10/01/26 1,045 1,045
Newport Beach, Hoag
Memorial Hospital,
Ser C, RB
Callable 04/10/07 @ 100
(A) (B)
3.650%, 10/01/26 7,870 7,870
Oakland, Capital Equipment
Project, COP (A) (B) (C)
3.550%, 12/01/15 3,590 3,590
Oakland-Alameda County,
Coliseum Project, Ser C-1,
RB (A) (B) (C)
3.530%, 02/01/25 15,000 15,000
Orange County, Apartment
Development Authority,
Bear Brand Apartments
Project, RB (A) (B) (D)
3.550%, 11/01/07 1,900 1,900
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Orange County, Apartment
Development Authority,
Hidden Hills Project,
Ser C, RB (A) (B)
3.560%, 11/01/09 $ 3,200 $ 3,200
Orange County, Apartment
Development Authority,
Larkspur Canyon Apartments,
Ser A, RB (A) (B) (D)
3.570%, 06/15/37 1,200 1,200
Orange County, Apartment
Development Authority,
Riverbend Apartments
Project, Ser B, RB (A) (B) (D)
3.570%, 12/01/29 5,000 5,000
Orange County, Apartment
Development Authority,
Seaside Meadow Project,
Ser C, RB (A) (B) (D)
3.550%, 08/01/08 8,000 8,000
Orange County, Improvement
Board District No. 88,
RB (A) (B) (C)
3.680%, 09/02/18 1,100 1,100
Orange County, Sanitation
District Authority,
Ser A, COP (A) (B)
3.630%, 08/01/29 1,755 1,755
Orange County, Sanitation
District Authority,
Ser B, COP (A) (B)
3.630%, 08/01/30 1,300 1,300
Orange County, Water
District Authority,
Ser A, COP (A) (B)
3.540%, 08/01/42 2,800 2,800
Pasadena, Public Financing
Authority, Rose Bowl
Refinancing & Improvement
Project, RB (A) (B) (C)
3.440%, 12/01/23 5,000 5,000
Riverside County, Ser C,
COP (A) (B) (C)
3.510%, 12/01/15 14,700 14,700
Riverside, Unified School
District, Ser C, School
Facility Bridge Funding
Project, COP, FSA (A) (B)
3.550%, 09/01/27 1,610 1,610
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 41
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Sacramento County, Housing
Authority, Bent Tree
Apartments Project,
Ser A, RB (A) (B) (D)
3.540%, 02/15/31 $ 2,500 $ 2,500
Sacramento County, TRAN
4.500%, 07/17/07 7,000 7,018
San Bernardino County,
Housing Authority, Alta Loma
Heritage Project, Ser A,
RB (A) (B) (C)
3.560%, 02/01/23 1,354 1,354
San Diego County, School
District, Ser A, TRAN
4.500%, 07/27/07 6,000 6,015
San Diego, Museum of Art
Project, COP (A) (B) (C)
3.690%, 09/01/30 1,400 1,400
San Diego, Unified School
District, Ser A, TRAN
4.500%, 07/24/07 4,000 4,010
San Francisco (City & County),
Housing Authority, Bayside
Village Project D, Ser A,
RB (A) (B) (C)
3.560%, 12/01/16 6,000 6,000
San Francisco (City & County),
Moscone Center Expansion
Project, Ser 2, RB,
AMBAC (A) (B)
3.500%, 04/01/30 1,150 1,150
San Francisco Bay Area Toll
Authority, Ser A-1, RB,
AMBAC (A) (B)
3.460%, 04/01/45 5,000 5,000
San Francisco, Bay Area Toll
Authority, Ser A, RB,
AMBAC (A) (B)
3.460%, 04/01/36 15,850 15,850
San Francisco, Bay Area Toll
Authority, Ser C, RB,
AMBAC (A) (B)
3.480%, 04/01/25 5,650 5,650
San Jose, Redevelopment
Agency, Merged Area
Redevelopment Project,
Ser A, RB (A) (B) (C)
3.520%, 07/01/26 3,100 3,100
Santa Barbara County, Schools
Financing Authority, TRAN
4.500%, 06/29/07 2,000 2,004
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
Santa Clara County, Financing
Authority, VMC Facility
Replacement Project,
Ser B, RB (A) (B)
3.500%, 11/15/25 $12,375 $ 12,375
Santa Clara Valley,
Transportation Authority,
Ser A, RB, AMBAC (A) (B)
3.500%, 06/01/26 6,300 6,300
Santa Cruz County, TRAN
4.500%, 06/29/07 5,000 5,010
South Coast, Local Education
Agencies, Ser A, TRAN
4.500%, 06/29/07 2,000 2,005
Southern California,
Metropolitan Water District
Authority, Ser A, RB (A) (B)
3.540%, 07/01/25 3,800 3,800
Southern California,
Metropolitan Water District
Authority, Ser B, RB (A) (B)
3.500%, 07/01/27 2,100 2,100
Southern California,
Metropolitan Water District
Authority, Ser C-1, RB (A) (B)
3.520%, 07/01/30 5,000 5,000
Southern California,
Metropolitan Water District
Authority, Ser C-3, RB (A) (B)
3.540%, 07/01/30 8,395 8,395
Southern California,
Metropolitan Water District
Authority, Water Works
Authorization, Ser B,
RB (A) (B)
3.500%, 07/01/28 5,200 5,200
Southern California,
Metropolitan Water District
Authority, Waterworks
Authorization, Ser B-4 (A) (B)
3.540%, 07/01/35 5,000 5,000
Southern California,
Public Power Authority,
Southern Transmission Project,
Ser A, RB, FSA (A) (B)
3.550%, 07/01/23 6,000 6,000
Southern California,
Public Power Authority,
Southern Transmission Project,
RB, AMBAC (A) (B) (C)
3.550%, 07/01/19 8,000 8,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 42
schedule of investments
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- -----------------------------------------------------------------
State of California, Economic
Recovery Authority,
Ser C-2, RB (A) (B) (D)
3.650%, 07/01/23 $ 4,160 $ 4,160
State of California,
Ser B-3, GO (A) (B) (C)
3.500%, 05/01/33 6,100 6,100
Sunnyvale, Government Center
Site Acquisition Project,
Ser A, COP, AMBAC (A) (B)
3.550%, 04/01/31 4,300 4,300
Three Valleys, Municipal Water
District Authority, Miramar
Water Treatment Project,
COP (A) (B) (C)
3.600%, 11/01/14 4,700 4,700
Turlock, Irrigation District,
Capital Improvement &
Refunding Project,
COP (A) (B) (C)
3.680%, 01/01/31 9,150 9,150
Upland, Community
Redevelopment Authority,
Sunset Ridge & Village
Apartments Project,
RB (A) (B) (C)
3.560%, 12/01/29 6,700 6,700
Ventura County, TRAN
4.500%, 07/02/07 2,500 2,505
Westminster, Civic Center
Refinancing Program,
Ser A, COP, AMBAC (A) (B)
3.550%, 06/01/22 2,900 2,900
Yolo County, Multi-Family
Housing Authority, Primero
Grove Project, Ser A,
RB (A) (B) (C)
3.520%, 11/01/27 10,485 10,485
------------------------------------------------------------
TOTAL CALIFORNIA 719,766
============================================================
WASHINGTON [0.6%]
Seattle, Municipal Light &
Power Authority,
RB (A) (B) (C)
3.620%, 06/01/21 4,300 4,300
============================================================
TOTAL MUNICIPAL BONDS
(Cost $724,066) 724,066
========================================================
COMMERCIAL PAPER (A) [0.8%]
Contra Costa
3.510%, 04/04/07 $ 5,800 $ 5,800
------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $5,800) 5,800
========================================================
TOTAL INVESTMENTS [100.7%]
(Cost $729,866) $729,866
========================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $725,032 ($ THOUSANDS).
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS
IS THE RATE IN EFFECT ON MARCH 31, 2007.
(B) PUT AND DEMAND FEATURE -- THE DATE REPORTED ON THE SCHEDULE OF INVESTMENTS
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.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
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 BOND
SER -- SERIES
TA -- TAX ALLOCATION
TRAN -- TAX & REVENUE ANTICIPATION NOTE
XLCA -- XL CAPITAL ASSURANCE
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 43
statements of assets and liabilities (000)
MARCH 31, 2007 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Value Large Cap Growth RCB Small Cap Technology
Equity Fund Equity Fund Value Fund Growth Fund
----------------------------------------------------------------------------
ASSETS:
Cost of securities (including repurchase agreements) $ 96,260 $ 46,150 $ 52,841 $ 2,583
====================================================================================================================================
Investments in securities, at value $ 119,241 $ 52,052 $ 67,261 $ 2,846
Receivable for capital shares sold 531 97 98 2
Income receivable 166 41 109 1
Prepaid Expenses 3 1 4 --
Cash -- -- 4 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 119,941 52,191 67,476 2,849
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for capital shares redeemed 704 147 106 --
Payable for income distributions 207 87 -- --
Investment adviser fees payable 62 28 51 2
Shareholder servicing fees payable 28 13 58 1
Administrative fees payable 5 2 3 --
Other accrued expenses 4 2 4 --
Cash overdraft 1 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 1,011 279 222 3
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 118,930 $ 51,912 $ 67,254 $ 2,846
====================================================================================================================================
NET ASSETS
Paid-in-Capital
(unlimited authorization -- $0.01 par value) $ 93,034 $ 48,387 $ 43,795 $ 4,024
Distributions in excess of net investment income (2) (1) (63) (9)
Accumulated net realized gain (loss) on investments 2,917 (2,376) 9,102 (1,432)
Net unrealized appreciation on investments 22,981 5,902 14,420 263
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 118,930 $ 51,912 $ 67,254 $ 2,846
====================================================================================================================================
Institutional Shares ($Dollars):
Net Assets $103,685,597 $39,760,557 $10,119,978 $1,337,870
Total shares outstanding at end of period 9,692,163 4,876,380 312,057 296,385
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 10.70 $ 8.15 $ 32.43 $ 4.51
Class A Shares ($Dollars):
Net Assets $ 15,244,501 $12,151,613 $11,143,491 $1,507,882
Total shares outstanding at end of period 1,427,187 1,505,797 347,326 339,354
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 10.68 $ 8.07 $ 32.08 $ 4.44
Class R Shares ($Dollars):
Net Assets $ -- $ -- $45,990,279 $ --
Total shares outstanding at end of period -- -- 1,435,671 --
Net asset value and redemption price per share
(net assets / shares outstanding) $ -- $ -- $ 32.03 $ --
Maximum offering price per share
(net asset value / 96.50%) $ -- $ -- $ 33.19 $ --
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 44
statements of assets and liabilities (000)
MARCH 31, 2007 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
California
Corporate Government Tax Exempt High Yield
Bond Fund Bond Fund Bond Fund Bond Fund
----------------------------------------------------------------------------
ASSETS:
Cost of securities $ 59,084 $ 46,987 $ 31,125 $ 38,096
====================================================================================================================================
Investments in securities, at value $ 59,030 $ 47,032 $ 31,082 $ 38,929
Income receivable 705 256 423 818
Receivable for capital shares sold 60 39 376 4
Prepaid Expenses 2 1 1 1
Cash -- -- 3 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 59,797 47,328 31,885 39,752
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for income distributions 173 125 49 101
Payable for capital shares redeemed 112 69 -- 51
Investment adviser fees payable 20 14 4 22
Shareholder servicing fees payable 13 10 7 14
Administrative fees payable 3 2 1 2
Trustees' fees payable -- -- -- --
Payable for investment securities purchased -- -- 220 100
Other accrued expenses 3 2 1 1
Cash overdraft -- -- -- 256
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 324 222 282 547
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 59,473 $ 47,106 $ 31,603 $ 39,205
====================================================================================================================================
NET ASSETS
Paid-in-Capital
(unlimited authorization -- $0.01 par value) $ 59,941 $ 47,598 $ 31,658 $ 39,448
Undistributed net investment income 2 -- 1 --
Accumulated net realized loss on investments (416) (537) (13) (1,076)
Net unrealized appreciation (depreciation) on investments (54) 45 (43) 833
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 59,473 $ 47,106 $ 31,603 $ 39,205
====================================================================================================================================
Institutional Shares ($Dollars):
Net Assets $58,296,313 $44,656,557 $30,564,905 $18,189,488
Total shares outstanding at end of period 5,710,753 4,328,435 2,992,232 1,978,299
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 10.21 $ 10.32 $ 10.21 $ 9.19
Class A Shares ($Dollars):
Net Assets $ 1,176,769 $ 2,449,152 $ 1,037,878 $21,015,458
Total shares outstanding at end of period 115,203 236,896 101,340 2,285,710
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 10.21 $ 10.34 $ 10.24 $ 9.19
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 45
statements of assets and liabilities (000)
MARCH 31, 2007 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
California
Prime Government Tax Exempt
Money Money Money
Market Fund Market Fund Market Fund
----------------------------------------------------------------------------
ASSETS:
Cost of securities (including repurchase agreements) $ 1,563,604 $ 2,442,092 $ 729,866
====================================================================================================================================
Investments in securities, at value $ 909,404 $ 1,212,392 $ 729,866
Repurchase agreements, at value 654,200 1,229,700 --
Income receivable 4,685 11,978 4,983
Prepaid Expenses 37 75 27
Cash -- 99 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 1,568,326 2,454,244 734,876
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Payable for income distributions 4,697 3,594 702
Shareholder servicing fees payable 611 956 302
Investment adviser fees payable 329 508 129
Administrative fees payable 70 104 34
Other accrued expenses 53 87 37
Cash overdraft -- -- 8,640
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 5,760 5,249 9,844
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,562,566 $ 2,448,995 $ 725,032
====================================================================================================================================
NET ASSETS
Paid-in-Capital
(unlimited authorization -- $0.01 par value) $ 1,562,973 $ 2,448,990 $ 725,031
Undistributed (distributions in excess of)
net investment income (5) 6 --
Accumulated net realized gain (loss) on investments (402) (1) 1
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 1,562,566 $ 2,448,995 $ 725,032
====================================================================================================================================
Institutional Shares ($Dollars):
Net Assets $436,833,772 $ 50,912,968 $ 73,458,220
Total shares outstanding at end of period 436,971,028 50,914,222 73,459,551
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 1.00 $ 1.00 $ 1.00
Class A Shares ($Dollars):
Net Assets $702,482,532 $2,133,333,284 $546,316,718
Total shares outstanding at end of period 702,754,218 2,133,326,194 546,319,214
Net asset value, offering and redemption price per share
(net assets / shares outstanding) $ 1.00 $ 1.00 $ 1.00
Class S Shares ($Dollars):
Net Assets $423,249,793 $ 264,749,201 $105,257,117
Total shares outstanding at end of period 423,340,950 264,749,391 105,253,361
Net asset value and redemption price per share
(net assets / shares outstanding) $ 1.00 $ 1.00 $ 1.00
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 46
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (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 Income $ 1,806 $ 427 $ 273 $ 10
Interest Income 10 3 153 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 1,816 430 426 10
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 353 163 297 12
Shareholder Servicing Fees--Institutional Class 124 48 15 2
Shareholder Servicing Fees--Class A(1) 36 29 28 4
Shareholder Servicing Fees--Class R(1) -- -- 117 --
Administration fee 30 13 19 1
Trustee Fees 1 1 1 --
Transfer Agent Fees 6 2 3 --
Professional fees 6 3 4 --
Custody fees 3 2 2 --
Printing fees 2 1 2 --
Registration fees 1 1 1 --
Insurance and Other expenses 5 2 4 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 567 265 493 19
- ------------------------------------------------------------------------------------------------------------------------------------
Less Waiver of:
Transfer Agent Fees (6) (2) (3) --
Net Expenses 561 263 490 19
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 1,255 167 (64) (9)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain from Securities Transactions 3,221 623 9,112 73
Net Change in Unrealized Appreciation on Investments 5,763 1,783 1,715 71
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $10,239 $2,573 $10,763 $135
====================================================================================================================================
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 47
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
California
Corporate Government Tax Exempt High Yield
Bond Fund Bond Fund Bond Fund Bond Fund
(000) (000) (000) (000)
-----------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $1,402 $1,016 $507 $1,689
Dividend Income 28 26 9 10
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 1,430 1,042 516 1,699
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 115 89 40 149
Shareholder Servicing Fees--Institutional Class 70 50 36 24
Shareholder Servicing Fees--Class A(1) 3 5 3 57
Administration fee 15 11 8 11
Trustee Fees 1 1 -- 1
Transfer Agent Fees 3 2 1 2
Professional fees 3 2 2 2
Custody fees 1 1 1 1
Printing fees 1 1 1 1
Registration fees 1 1 -- --
Insurance and Other expenses 3 1 1 2
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 216 164 93 250
- ------------------------------------------------------------------------------------------------------------------------------------
Less Waiver of:
Advisory fees -- (14) (16) (18)
Transfer Agent Fees (3) (2) (1) (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 213 148 76 230
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,217 894 440 1,469
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) from Securities Transactions (80) (122) 30 179
Net Change in Unrealized Appreciation (Depreciation)
on Investments 321 277 (120) 870
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,458 $1,049 $350 $2,518
====================================================================================================================================
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 48
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
California
Prime Government Tax Exempt
Money Money Money
Market Fund Market Fund Market Fund
(000) (000) (000)
----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $39,271 $62,291 $14,762
Dividend Income 17 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 39,288 62,291 14,762
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee 1,838 3,057 1,158
Shareholder Servicing Fees--Institutional Class 507 56 112
Shareholder Servicing Fees--Class A(1) 2,524 7,660 2,486
Shareholder Servicing Fees--Class S(1) 1,468 990 393
Administration fee 391 626 229
Trustee Fees 22 35 13
Professional fees 80 118 46
Transfer Agent Fees 72 115 42
Custody fees 34 65 24
Printing fees 27 43 16
Registration fees 27 31 14
Insurance and Other expenses 58 110 40
- ------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 7,048 12,906 4,573
- ------------------------------------------------------------------------------------------------------------------------------------
Less Waiver of:
Investment Advisory fees -- -- (259)
Shareholder Servicing Fees--Class A(1) (942) (2,860) (895)
Shareholder Servicing Fees--Class S(1) (156) (106) (37)
Transfer Agent Fees (72) (115) (42)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 5,878 9,825 3,340
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 33,410 52,466 11,422
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized Loss From Securities Transactions -- (1) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $33,410 $52,465 $11,422
====================================================================================================================================
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 49
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER 30, 2006
- -------------------------------------------------------------------------------------------------------------------------
Large Cap Value Large Cap Growth
Equity Fund (000) Equity Fund (000)
------------------------------- ----------------------------
2007 2006 2007 2006
- --------------------------------------------------------------------------------------- ----------------------------
OPERATIONS:
Net Investment Income (Loss) $ 1,255 $ 1,250 $ 167 $ 99
Net Realized Gain (Loss) from
Security Transactions 3,221 5,205 623 1,412
Net Change in Unrealized Appreciation
(Depreciation) on Investments 5,763 6,087 1,783 547
- --------------------------------------------------------------------------------------- ----------------------------
Net Increase in Net Assets
Resulting from Operations 10,239 12,542 2,573 2,058
- --------------------------------------------------------------------------------------- ----------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
Institutional Class (1,111) (1,124) (139) (96)
Class A (144) (128) (28) (5)
Class R -- -- -- --
Realized Capital Gains:
Institutional Class (4,815) (3,330) -- --
Class A (687) (459) -- --
Class R -- -- -- --
- --------------------------------------------------------------------------------------- ----------------------------
Total Dividends and Distributions (6,757) (5,041) (167) (101)
- --------------------------------------------------------------------------------------- ----------------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 11,927 55,314 5,126 7,916
Shares Issued in Lieu of Dividends and Distributions 4,124 2,902 45 30
Shares Redeemed (8,361) (14,689) (3,114) (7,829)
- --------------------------------------------------------------------------------------- ----------------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 7,690 43,527 2,057 117
- --------------------------------------------------------------------------------------- ----------------------------
CLASS A:
Shares Issued 1,903 2,656 2,000 3,182
Shares Issued in Lieu of Dividends and Distributions 668 471 19 4
Shares Redeemed (863) (1,743) (775) (1,497)
- --------------------------------------------------------------------------------------- ----------------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 1,708 1,384 1,244 1,689
- --------------------------------------------------------------------------------------- ----------------------------
CLASS R:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
- --------------------------------------------------------------------------------------- ----------------------------
Decrease in Net Assets from
Class R Share Transactions -- -- -- --
- --------------------------------------------------------------------------------------- ----------------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 9,398 44,911 3,301 1,806
- --------------------------------------------------------------------------------------- ----------------------------
Total Increase (Decrease) in Net Assets 12,880 52,412 5,707 3,763
- --------------------------------------------------------------------------------------- ----------------------------
NET ASSETS:
Beginning of period 106,050 53,638 46,205 42,442
- --------------------------------------------------------------------------------------- ----------------------------
End of period $118,930 $106,050 $51,912 $46,205
======================================================================================= ============================
Undistributed (Distributions in Excess of)
Net Investment Income $ (2) $ (2) $ (1) $ (1)
- --------------------------------------------------------------------------------------- ----------------------------
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | 50
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER 30, 2006
- ------------------------------------------------------------------------------------------------------------------------------------
RCB Small Cap Technology Growth Corporate Bond
Value Fund (000) Fund (000) Fund (000)
------------------------ ---------------------- ------------------------
2007 2006 2007 2006 2007 2006
------------------------ ---------------------- ------------------------
OPERATIONS:
Net Investment Income (Loss) $ (64) $ 1 $ (9) $ (17) $ 1,217 $ 2,227
Net Realized Gain (Loss) from
Security Transactions 9,112 1,110 73 103 (80) (276)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 1,715 (908) 71 81 321 (191)
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Net Increase in Net Assets
Resulting from Operations 10,763 203 135 167 1,458 1,760
- -------------------------------------------------------------------------------- ---------------------- ------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (2) (35) -- (4) (1,192) (2,167)
CLASS A -- (1) -- -- (24) (54)
CLASS R -- (10) -- -- -- --
Realized Capital Gains:
INSTITUTIONAL CLASS (213) (186) -- -- -- --
CLASS A (165) (170) -- -- -- --
CLASS R (730) (785) -- -- -- --
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Total Dividends and Distributions (1,110) (1,187) -- (4) (1,216) (2,221)
- -------------------------------------------------------------------------------- ---------------------- ------------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 1,327 5,422 132 333 6,774 15,662
Shares Issued in Lieu of Dividends and Distributions 196 159 -- 4 225 406
Shares Redeemed (6,537) (5,973) (104) (357) (4,229) (11,526)
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions (5,014) (392) 28 (20) 2,770 4,542
- -------------------------------------------------------------------------------- ---------------------- ------------------------
CLASS A:
Shares Issued 335 1,155 35 144 135 146
Shares Issued in Lieu of Dividends and Distributions 136 129 -- -- 11 25
Shares Redeemed (1,314) (3,396) (34) (215) (307) (353)
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions (843) (2,112) 1 (71) (161) (182)
- -------------------------------------------------------------------------------- ---------------------- ------------------------
CLASS R:
Shares Issued 2,526 12,077 -- -- -- --
Shares Issued in Lieu of Dividends and Distributions 690 742 -- -- -- --
Shares Redeemed (9,499) (24,106) -- -- -- --
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Decrease in Net Assets from
Class R Share Transactions (6,283) (11,287) -- -- -- --
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Net Increase (Decrease) in Net Assets from
Share Transactions (12,140) (13,791) 29 (91) 2,609 4,360
- -------------------------------------------------------------------------------- ---------------------- ------------------------
Total Increase (Decrease) in Net Assets (2,487) (14,775) 164 72 2,851 3,899
- -------------------------------------------------------------------------------- ---------------------- ------------------------
NET ASSETS:
Beginning of period 69,741 84,516 2,682 2,610 56,622 52,723
- -------------------------------------------------------------------------------- ---------------------- ------------------------
End of period $67,254 $ 69,741 $2,846 $2,682 $59,473 $ 56,622
================================================================================ ====================== ========================
Undistributed (Distributions in Excess of)
Net Investment Income $ (63) $ 3 $ (9) $ -- $ 2 $ 1
- -------------------------------------------------------------------------------- ---------------------- ------------------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | 51
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER 30, 2006
- ------------------------------------------------------------------------------------------------------------------------------------
Government California Tax Exempt
Bond Fund (000) Bond Fund (000)
--------------------------------- --------------------------------------
2007 2006 2007 2006
- ------------------------------------------------------------------------------------------- --------------------------------------
OPERATIONS:
Net Investment Income $ 894 $ 1,326 $ 440 $ 723
Net Realized Gain (Loss) from
Security Transactions (122) (360) 30 (35)
Net Change in Unrealized Appreciation (Depreciation)
on Investments 277 48 (120) 122
- ------------------------------------------------------------------------------------------- --------------------------------------
Net Increase in Net Assets
Resulting from Operations 1,049 1,014 350 810
- ------------------------------------------------------------------------------------------- --------------------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (856) (1,292) (424) (692)
CLASS A (39) (32) (15) (31)
CLASS S -- -- -- --
Realized Capital Gains:
INSTITUTIONAL CLASS -- -- -- (90)
CLASS A -- -- -- (5)
CLASS S -- -- -- --
- ------------------------------------------------------------------------------------------- --------------------------------------
Total Dividends and Distributions (895) (1,324) (439) (818)
- ------------------------------------------------------------------------------------------- --------------------------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 10,976 13,593 8,581 8,793
Shares Issued in Lieu of Dividends and Distributions 245 338 152 255
Shares Redeemed (2,382) (6,079) (4,156) (5,739)
- ------------------------------------------------------------------------------------------- --------------------------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 8,839 7,852 4,577 3,309
- ------------------------------------------------------------------------------------------- --------------------------------------
CLASS A:
Shares Issued 690 1,378 5 31
Shares Issued in Lieu of Dividends and Distributions 8 9 3 6
Shares Redeemed (38) (162) (101) (385)
- ------------------------------------------------------------------------------------------- --------------------------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 660 1,225 (93) (348)
- ------------------------------------------------------------------------------------------- --------------------------------------
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 9,499 9,077 4,484 2,961
- ------------------------------------------------------------------------------------------- --------------------------------------
Total Increase (Decrease) in Net Assets 9,653 8,767 4,395 2,953
- ------------------------------------------------------------------------------------------- --------------------------------------
NET ASSETS:
Beginning of period 37,453 28,686 27,208 24,255
- ------------------------------------------------------------------------------------------- --------------------------------------
End of period $47,106 $37,453 $31,603 $27,208
=========================================================================================== ======================================
Undistributed (Distributions in excess of)
Net Investment Income $ -- $ 1 $ 1 $ --
- ------------------------------------------------------------------------------------------- --------------------------------------
(1)SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 52
- -----------------------------------------------------------------------------------------------------------------------
High Yield Prime Money
Bond Fund (000) Market Fund (000)
-------------------------- -----------------------------
2007 2006 2007 2006
- ------------------------------------------------------------------------------------ -----------------------------
OPERATIONS:
Net Investment Income $ 1,469 $ 3,020 $ 33,410 $ 43,644
Net Realized Gain (Loss) from
Security Transactions 179 (18) -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments 870 (392) -- --
- ------------------------------------------------------------------------------------ -----------------------------
Net Increase in Net Assets
Resulting from Operations 2,518 2,610 33,410 43,644
- ------------------------------------------------------------------------------------ -----------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (719) (1,599) (9,645) (14,704)
CLASS A (750) (1,421) (15,276) (18,919)
CLASS S -- -- (8,495) (10,020)
Realized Capital Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS A -- -- -- --
CLASS S -- -- -- --
- ------------------------------------------------------------------------------------ -----------------------------
Total Dividends and Distributions (1,469) (3,020) (33,416) (43,643)
- ------------------------------------------------------------------------------------ -----------------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 512 4,120 615,771 1,690,942
Shares Issued in Lieu of Dividends and Distributions 434 895 1,880 2,507
Shares Redeemed (4,152) (6,503) (568,986) (1,637,671)
- ------------------------------------------------------------------------------------ -----------------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions (3,206) (1,488) 48,665 55,778
- ------------------------------------------------------------------------------------ -----------------------------
CLASS A:
Shares Issued 897 1,822 1,111,495 2,204,941
Shares Issued in Lieu of Dividends and Distributions 426 817 5,424 5,522
Shares Redeemed (893) (3,425) (1,054,800) (1,882,549)
- ------------------------------------------------------------------------------------ -----------------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 430 (786) 62,119 327,914
- ------------------------------------------------------------------------------------ -----------------------------
CLASS S:
Shares Issued -- -- 743,524 1,261,525
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- (644,626) (1,140,675)
- ------------------------------------------------------------------------------------ -----------------------------
Increase (Decrease) in Net Assets from
Class S Share Transactions -- -- 98,898 120,850
- ------------------------------------------------------------------------------------ -----------------------------
Net Increase (Decrease) in Net Assets from
Share Transactions (2,776) (2,274) 209,682 504,542
- ------------------------------------------------------------------------------------ -----------------------------
Total Increase (Decrease) in Net Assets (1,727) (2,684) 209,676 504,543
- ------------------------------------------------------------------------------------ -----------------------------
NET ASSETS:
Beginning of period 40,932 43,616 1,352,890 848,347
- ------------------------------------------------------------------------------------ -----------------------------
End of period $39,205 $40,932 $ 1,562,566 $ 1,352,890
==================================================================================== =============================
Undistributed (Distributions in excess of)
Net Investment Income $ -- $ -- $ (5) $ 1
- ------------------------------------------------------------------------------------ -----------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Government Money California Tax Exempt
Market Fund (000) Money Market Fund (000)
--------------------------------- -------------------------------
2007 2006 2007 2006
- ------------------------------------------------------------------------------------------- -------------------------------
OPERATIONS:
Net Investment Income $ 52,466 $ 85,646 $ 11,422 $ 19,286
Net Realized Gain (Loss) from
Security Transactions (1) 1 -- --
Net Change in Unrealized Appreciation (Depreciation)
on Investments -- -- -- --
- ------------------------------------------------------------------------------------------- -------------------------------
Net Increase in Net Assets
Resulting from Operations 52,465 85,647 11,422 19,286
- ------------------------------------------------------------------------------------------- -------------------------------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (1,053) (2,064) (1,301) (2,080)
CLASS A (45,761) (74,663) (8,829) (15,136)
CLASS S (5,648) (8,922) (1,292) (2,065)
Realized Capital Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS A -- -- -- --
CLASS S -- -- -- --
- ------------------------------------------------------------------------------------------- -------------------------------
Total Dividends and Distributions (52,462) (85,649) (11,422) (19,281)
- ------------------------------------------------------------------------------------------- -------------------------------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 305,556 635,895 846,084 1,444,514
Shares Issued in Lieu of Dividends and Distributions 2 2 -- --
Shares Redeemed (307,427) (615,154) (857,640) (1,432,711)
- ------------------------------------------------------------------------------------------- -------------------------------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions (1,869) 20,743 (11,556) 11,803
- ------------------------------------------------------------------------------------------- -------------------------------
CLASS A:
Shares Issued 2,647,781 5,761,555 1,091,054 2,014,013
Shares Issued in Lieu of Dividends and Distributions 31,472 51,511 6,815 12,188
Shares Redeemed (2,486,525) (5,767,874) (1,183,030) (1,964,398)
- ------------------------------------------------------------------------------------------- -------------------------------
Increase (Decrease) in Net Assets from
Class A Share Transactions 192,728 45,192 (85,161) 61,803
- ------------------------------------------------------------------------------------------- -------------------------------
CLASS S:
Shares Issued 363,409 1,013,412 170,453 348,788
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed (330,743) (1,009,234) (172,327) (329,840)
- ------------------------------------------------------------------------------------------- -------------------------------
Increase (Decrease) in Net Assets from
Class S Share Transactions 32,666 4,178 (1,874) 18,948
- ------------------------------------------------------------------------------------------- -------------------------------
Net Increase (Decrease) in Net Assets from
Share Transactions 223,525 70,113 (98,591) 92,554
- ------------------------------------------------------------------------------------------- -------------------------------
Total Increase (Decrease) in Net Assets 223,528 70,111 (98,591) 92,559
- ------------------------------------------------------------------------------------------- -------------------------------
NET ASSETS:
Beginning of period 2,225,467 2,155,356 823,623 731,064
- ------------------------------------------------------------------------------------------- -------------------------------
End of period $ 2,448,995 $ 2,225,467 $ 725,032 $ 823,623
=========================================================================================== ===============================
Undistributed (Distributions in excess of)
Net Investment Income $ 6 $ 2 $ -- $ --
- ------------------------------------------------------------------------------------------- -------------------------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 53
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (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)
2007* $10.36 $ 0.12^ $ 0.87^ $(0.12) $(0.53) $10.70 9.65% $103,686
2006 9.54 0.13^ 1.21^ (0.13) (0.39) 10.36 14.50 92,946
2005 8.77 0.10^ 1.13^ (0.10) (0.36) 9.54 14.39 42,974
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
Class A (commenced operations on April 13, 2000)
2007* $10.35 $ 0.11^ $ 0.85^ $(0.10) $(0.53) $10.68 9.43% $ 15,244
2006 9.53 0.11^ 1.20^ (0.10) (0.39) 10.35 14.24 13,104
2005 8.76 0.09^ 1.12^ (0.08) (0.36) 9.53 14.14 10,664
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
- -------------------------------------------------------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2007* $ 7.75 $ 0.03^ $ 0.40^ $(0.03) $ -- $ 8.15 5.53% $ 39,760
2006 7.43 0.02^ 0.32^ (0.02) -- 7.75 4.59 35,842
2005 6.76 0.04^ 0.67^ (0.04) -- 7.43 10.55 34,164
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 0.00 (1.11) -- -- 5.25 (17.45) 14,195
Class A (commenced operations on March 28, 2000)
2007* $ 7.68 $ 0.02^ $ 0.39^ $(0.02) $ -- $ 8.07 5.32% $ 12,152
2006 7.35 --^ 0.33^ --^^ -- 7.68 4.55 10,363
2005 6.69 0.02^ 0.67^ (0.03) -- 7.35 10.28 8,278
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
- -------------------------------------------------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
Institutional Class (commenced operations on October 3, 2001)
2007* $28.25 $ --^ $ 4.66^ $(0.01) $(0.47) $32.43 16.55% $ 10,120
2006 28.58 0.06^ 0.05^ (0.07) (0.37) 28.25 0.40 13,435
2005 27.30 0.07^ 2.58^ -- (1.37) 28.58 9.87 13,975
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)
2007* $27.98 $(0.03)^ $ 4.60^ $ -- $(0.47) $32.08 16.40% $ 11,144
2006 28.31 (0.01)^ 0.05^ --^^ (0.37) 27.98 0.17 10,470
2005 27.13 0.00^ 2.55^ -- (1.37) 28.31 9.55 12,754
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)
2007* $27.93 $(0.03)^ $ 4.60^ $ -- $(0.47) $32.03 16.43% $ 45,990
2006 28.27 (0.01)^ 0.04^ --^^ (0.37) 27.93 0.14 45,836
2005 27.09 0.01^ 2.54^ -- (1.37) 28.27 9.56 57,787
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
- -------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND
Institutional Class (commenced operations on October 3, 2000)
2007* $ 4.30 $(0.01)^ $ 0.22^ $ -- $ -- $ 4.51 4.88% $ 1,338
2006 4.04 (0.02)^ 0.29^ (0.01) -- 4.30 6.77 1,245
2005 3.46 0.01^ 0.57^ -- -- 4.04 16.76 1,187
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
Class A (commenced operations on October 23, 2000)
2007* $ 4.23 $(0.02)^ $ 0.23^ $ -- $ -- $ 4.44 4.96% $ 1,508
2006 3.98 (0.03)^ 0.28^ --^^ -- 4.23 6.30 1,437
2005 3.42 0.00^ 0.56^ -- -- 3.98 16.37 1,423
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
RATIO
OF EXPENSES
RATIO TO AVERAGE
OF NET NET ASSETS
RATIO INVESTMENT (EXCLUDING
OF EXPENSES INCOME (LOSS) WAIVERS & PORTFOLIO
TO AVERAGE TO AVERAGE RECOVERED TURNOVER
NET ASSETS(1)(3) NET ASSETS(1) FEES)(1) RATE
- ----------------------------------------------------------------------------
LARGE CAP VALUE EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2007* 0.96% 2.24% 0.97% 11%
2006 0.96 1.36 0.97 31
2005 0.96 1.12 0.97 34
2004 0.97 0.92 0.97 36
2003 1.00 1.12 1.00 39
2002 1.00 0.90 1.05 42
Class A (commenced operations on April 13, 2000)
2007* 1.21% 1.99% 1.22% 11%
2006 1.21 1.13 1.22 31
2005 1.21 0.87 1.22 34
2004 1.22 0.64 1.22 36
2003 1.25 0.84 1.25 39
2002 1.25 0.65 1.30 42
- ----------------------------------------------------------------------------
LARGE CAP GROWTH EQUITY FUND
Institutional Class (commenced operations on January 14, 2000)
2007* 0.99% 0.72% 1.00% 12%
2006 0.99 0.27 1.00 34
2005 0.98 0.57 1.00 27
2004 1.01 0.10 1.01 50
2003 1.05 0.16 1.03 43
2002 1.05 (0.04) 1.09 31
Class A (commenced operations on March 28, 2000)
2007* 1.24% 0.48% 1.25% 12%
2006 1.24 0.03 1.25 34
2005 1.23 0.33 1.25 27
2004 1.26 (0.14) 1.26 50
2003 1.30 (0.09) 1.29 43
2002 1.30 (0.29) 1.34 31
- ----------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
Institutional Class (commenced operations on October 3, 2001)
2007* 1.19% 0.03% 1.20% 28%
2006 1.20 0.20 1.21 66
2005 1.18 0.26 1.20 41
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)
2007* 1.44% (0.22)% 1.45% 28%
2006 1.45 (0.04) 1.46 66
2005 1.43 0.01 1.45 41
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)
2007* 1.44% (0.22)% 1.45% 28%
2006 1.45 (0.04) 1.46 66
2005 1.43 0.02 1.45 41
2004 1.49 (0.07) 1.48 40
2003 1.49 (0.41) 1.49 65
2002 1.49 (0.70) 1.53 39
- ----------------------------------------------------------------------------
TECHNOLOGY GROWTH FUND
Institutional Class (commenced operations on October 3, 2000)
2007* 1.19% (0.51)% 1.19% 19%
2006 1.16 (0.52) 1.10 24
2005 1.20 0.34 1.21 37
2004 1.20 (0.82) 1.28 33
2003 1.20 (0.78) 1.36 29
2002 1.20 (0.88) 1.37 24
Class A (commenced operations on October 23, 2000)
2007* 1.49% (0.81)% 1.49% 19%
2006 1.46 (0.81) 1.40 24
2005 1.50 0.06 1.51 37
2004 1.50 (1.12) 1.58 33
2003 1.50 (1.08) 1.66 29
2002 1.50 (1.18) 1.67 24
* FOR THE SIX MONTHS ENDED MARCH 31, 2007.
++ 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) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 54
- --------------------------------------------------------------------------------------------------------------------------
NET
NET REALIZED AND DISTRIBUTIONS NET NET
ASSET UNREALIZED DIVIDENDS FROM ASSET ASSETS
VALUE NET GAINS (LOSSES) FROM NET REALIZED VALUE END
BEGINNING INVESTMENT ON INVESTMENT CAPITAL END TOTAL OF PERIOD
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN++ (000)
- --------------------------------------------------------------------------------------------------------------------------
CORPORATE BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* $10.17 $ 0.22^ $ 0.04^ $(0.22) $ -- $10.21 2.54% $58,296
2006 10.27 0.42^ (0.10)^ (0.42) -- 10.17 3.19 55,290
2005 10.60 0.40^ (0.27)^ (0.40) (0.06) 10.27 1.26 51,193
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
Class A (commenced operations on April 13, 2000)
2007* $10.17 $ 0.20^ $ 0.04^ $(0.20) $ -- $10.21 2.41% $ 1,177
2006 10.27 0.39^ (0.10)^ (0.39) -- 10.17 2.93 1,332
2005 10.61 0.37^ (0.28)^ (0.37) (0.06) 10.27 0.91 1,530
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
- --------------------------------------------------------------------------------------------------------------------------
GOVERNMENT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* $10.28 $ 0.22^ $ 0.04^ $(0.22) $ -- $10.32 2.56% $44,657
2006 10.40 0.41^ (0.12)^ (0.41) -- 10.28 2.89 35,671
2005 10.62 0.31^ (0.16)^ (0.31) (0.06) 10.40 1.42 28,132
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
Class A (commenced operations on April 13, 2000)
2007* $10.30 $ 0.21^ $ 0.04^ $(0.21) $ -- $10.34 2.43% $ 2,449
2006 10.42 0.39^ (0.12)^ (0.39) -- 10.30 2.63 1,782
2005 10.64 0.29^ (0.17)^ (0.28) (0.06) 10.42 1.16 554
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
- --------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* $10.25 $ 0.15^ $(0.04)^ $(0.15) $ -- $10.21 1.10% $30,565
2006 10.26 0.29^ 0.03^ (0.29) (0.04) 10.25 3.18 26,074
2005 10.41 0.28^ (0.11)^ (0.28) (0.04) 10.26 1.65 22,768
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
Class A (commenced operations on April 13, 2000)
2007* $10.27 $ 0.14^ $(0.03)^ $(0.14) $ -- $10.24 1.07% $ 1,038
2006 10.29 0.26^ 0.02^ (0.26) (0.04) 10.27 2.81 1,134
2005 10.44 0.25^ (0.11)^ (0.25) (0.04) 10.29 1.39 1,487
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
- --------------------------------------------------------------------------------------------------------------------------
HIGH YIELD BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* $ 8.96 $ 0.34^ $ 0.23^ $(0.34) $ -- $ 9.19 6.48% $18,190
2006 9.04 0.68^ (0.08)^ (0.68) -- 8.96 6.90 20,887
2005 9.31 0.71^ (0.27)^ (0.71) -- 9.04 4.85 22,588
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
Class A (commenced operations on January 14, 2000)
2007* $ 8.96 $ 0.33^ $ 0.23^ $(0.34) $ -- $ 9.19 6.33% $21,015
2006 9.04 0.65^ (0.08)^ (0.65) -- 8.96 6.58 20,045
2005 9.31 0.69^ (0.27)^ (0.69) -- 9.04 4.54 21,028
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
RATIO
OF EXPENSES
RATIO TO AVERAGE
OF NET NET ASSETS
RATIO INVESTMENT (EXCLUDING
OF EXPENSES INCOME WAIVERS & PORTFOLIO
TO AVERAGE TO AVERAGE RECOVERED TURNOVER
NET ASSETS(1)(2) NET ASSETS(1) FEES)(1) RATE
- ----------------------------------------------------------------------------
CORPORATE BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* 0.74% 4.26% 0.75% 14%
2006 0.75 4.14 0.75 25
2005 0.75 3.80 0.76 25
2004 0.75 3.82 0.79 57
2003 0.75 4.30 0.78 66
2002 0.75 5.04 0.82 55
Class A (commenced operations on April 13, 2000)
2007* 0.99% 3.99% 1.00% 14%
2006 1.00 3.88 1.00 25
2005 1.00 3.55 1.01 25
2004 1.00 3.51 1.04 57
2003 1.00 4.00 1.03 66
2002 1.00 4.71 1.07 55
- ----------------------------------------------------------------------------
GOVERNMENT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* 0.70% 4.31% 0.78% 48%
2006 0.70 4.04 0.78 62
2005 0.70 2.98 0.79 58
2004 0.70 2.39 0.81 169
2003 0.70 3.26 0.81 54
2002 0.70 4.11+ 0.86 70
Class A (commenced operations on April 13, 2000)
2007* 0.95% 4.05% 1.03% 48%
2006 0.95 3.81 1.03 62
2005 0.95 2.70 1.04 58
2004 0.95 2.14 1.06 169
2003 0.95 3.00 1.06 54
2002 0.95 3.70 1.11 70
- ----------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* 0.50% 2.98% 0.62% 29%
2006 0.50 2.85 0.62 43
2005 0.50 2.70 0.63 54
2004 0.50 2.55 0.65 51
2003 0.50 2.91 0.65 68
2002 0.50 3.33 0.70 90
Class A (commenced operations on April 13, 2000)
2007* 0.75% 2.73% 0.87% 29%
2006 0.75 2.59 0.87 43
2005 0.75 2.43 0.88 54
2004 0.75 2.29 0.90 51
2003 0.75 2.62 0.90 68
2002 0.75 3.05 0.95 90
- ----------------------------------------------------------------------------
HIGH YIELD BOND FUND
Institutional Class (commenced operations on January 14, 2000)
2007* 1.00% 7.54% 1.10% 14%
2006 1.00 7.58 1.10 23
2005 1.00 7.71 1.11 46
2004 1.00 7.87 1.14 35
2003 1.00 8.84 1.13 36
2002 1.00 9.48 1.18 30
Class A (commenced operations on January 14, 2000)
2007* 1.30% 7.26% 1.40% 14%
2006 1.30 7.28 1.40 23
2005 1.30 7.41 1.41 46
2004 1.30 7.56 1.44 35
2003 1.30 8.44 1.43 36
2002 1.30 9.03 1.48 30
* FOR THE SIX MONTHS ENDED MARCH 31, 2007.
** 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.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 55
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2007 (UNAUDITED) AND THE YEAR OR PERIOD ENDED SEPTEMBER 30,
- -----------------------------------------------------------------------------------------------------------------------------------
RATIO
OF EXPENSES
RATIO TO AVERAGE
NET NET NET OF NET NET ASSETS
ASSET DIVIDENDS ASSET ASSETS RATIO INVESTMENT (EXCLUDING
VALUE NET FROM NET VALUE END OF EXPENSES INCOME WAIVERS &
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE RECOVERED
OF PERIOD INCOME INCOME OF PERIOD RETURN+++ (000) NET ASSETS(1)(2) NET ASSETS(1) FEES)(1)
- -----------------------------------------------------------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
Institutional Class (commenced operations on March 23, 1998)
2007* $1.00 $0.024 $(0.024) $1.00 2.40% $ 436,834 0.59% 4.76% 0.60%
2006 1.00 0.041 (0.041) 1.00 4.17 388,171 0.59 4.12 0.60
2005 1.00 0.021 (0.021) 1.00 2.10 332,393 0.60 2.05 0.61
2004 1.00 0.006 (0.006) 1.00 0.58 367,209 0.63 0.59 0.63
2003 1.00 0.007 (0.007) 1.00 0.68 287,087 0.63 0.68 0.64
2002 1.00 0.014 (0.014) 1.00 1.37 290,778 0.63 1.37 0.67
Class A (commenced operations on October 18, 1999)
2007* $1.00 $0.023 $(0.023) $1.00 2.28% $ 702,482 0.81% 4.54% 1.10%
2006 1.00 0.039 (0.039) 1.00 3.94 640,366 0.81 3.95 1.10
2005 1.00 0.019 (0.019) 1.00 1.87 312,452 0.82 1.94 1.11
2004 1.00 0.004 (0.004) 1.00 0.36 201,058 0.85 0.35 1.13
2003 1.00 0.005 (0.005) 1.00 0.46 205,191 0.85 0.47 1.14
2002 1.00 0.011 (0.011) 1.00 1.15 228,807 0.85 1.15 1.17
Class S (commenced operations on October 26, 1999)
2007* $1.00 $0.022 $(0.022) $1.00 2.18% $ 423,250 1.01% 4.34% 1.10%
2006 1.00 0.037 (0.037) 1.00 3.73 324,353 1.01 3.74 1.10
2005 1.00 0.017 (0.017) 1.00 1.67 203,502 1.02 1.70 1.11
2004 1.00 0.002 (0.002) 1.00 0.21 115,761 1.00 0.21 1.13
2003 1.00 0.003 (0.003) 1.00 0.29 118,624 1.03 0.29 1.14
2002 1.00 0.009 (0.009) 1.00 0.95 129,180 1.05 0.95 1.17
- -----------------------------------------------------------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
Institutional Class (commenced operations on April 3, 2000)
2007* $1.00 $0.023 $(0.023) $1.00 2.37% $ 50,913 0.60% 4.70% 0.61%
2006 1.00 0.040 (0.040) 1.00 4.08 52,782 0.60 4.11 0.61
2005 1.00 0.020 (0.020) 1.00 2.05 32,039 0.61 1.97 0.62
2004 1.00 0.006 (0.006) 1.00 0.57 43,608 0.63 0.56 0.64
2003 1.00 0.007 (0.007) 1.00 0.70 56,841 0.63 0.68 0.64
2002 1.00 0.014 (0.014) 1.00 1.38 51,985 0.63 1.43 0.66
Class A (commenced operations on June 21, 1999)
2007* $1.00 $0.022 $(0.022) $1.00 2.26% $2,133,333 0.82% 4.48% 1.11%
2006 1.00 0.038 (0.038) 1.00 3.86 1,940,602 0.82 3.78 1.11
2005 1.00 0.018 (0.018) 1.00 1.82 1,895,412 0.83 1.80 1.12
2004 1.00 0.004 (0.004) 1.00 0.35 1,857,676 0.85 0.35 1.14
2003 1.00 0.005 (0.005) 1.00 0.48 2,060,860 0.85 0.48 1.14
2002 1.00 0.012 (0.012) 1.00 1.16 2,149,151 0.85 1.18 1.16
Class S (commenced operations on October 6, 1999)
2007* $1.00 $0.021 $(0.021) $1.00 2.15% $ 264,749 1.02% 4.28% 1.11%
2006 1.00 0.036 (0.036) 1.00 3.65 232,083 1.02 3.60 1.11
2005 1.00 0.016 (0.016) 1.00 1.62 227,905 1.03 1.61 1.12
2004 1.00 0.002 (0.002) 1.00 0.20 263,086 1.00 0.21 1.14
2003 1.00 0.003 (0.003) 1.00 0.30 191,539 1.03 0.31 1.14
2002 1.00 0.010 (0.010) 1.00 0.96 219,387 1.05 0.93 1.16
- -----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
Institutional Class (commenced operations on April 3, 2000)
2007* $1.00 $0.014 $(0.014) $1.00 1.45% $ 73,460 0.55% 2.89% 0.62%
2006 1.00 0.026 (0.026) 1.00 2.62 85,014 0.55 2.60 0.62
2005 1.00 0.015 (0.015)** 1.00 1.51 73,211 0.55 1.46 0.63
2004 1.00 0.005 (0.005) 1.00 0.52 79,413 0.55 0.51 0.65
2003 1.00 0.006 (0.006) 1.00 0.62 87,820 0.55 0.59 0.65
2002 1.00 0.010 (0.010) 1.00 0.98 58,923 0.55 0.96 0.69
Class A (commenced operations on June 21, 1999)
2007* $1.00 $0.013 $(0.013) $1.00 1.34% $ 546,317 0.78% 2.66% 1.12%
2006 1.00 0.024 (0.024) 1.00 2.39 631,478 0.78 2.36 1.12
2005 1.00 0.013 (0.013)** 1.00 1.28 569,671 0.78 1.25 1.13
2004 1.00 0.003 (0.003) 1.00 0.29 505,029 0.78 0.29 1.15
2003 1.00 0.004 (0.004) 1.00 0.41 539,182 0.76 0.41 1.15
2002 1.00 0.007 (0.007) 1.00 0.75 519,269 0.78 0.75 1.19
Class S (commenced operations on November 12, 1999)
2007* $1.00 $0.012 $(0.012) $1.00 1.24% $ 105,257 0.98% 2.47% 1.12%
2006 1.00 0.022 (0.022) 1.00 2.18 107,131 0.98 2.17 1.12
2005 1.00 0.011 (0.011)** 1.00 1.08 88,182 0.98 1.09 1.13
2004 1.00 0.002 (0.002) 1.00 0.15 33,520 0.91 0.15 1.15
2003 1.00 0.003 (0.003) 1.00 0.27 24,002 0.89 0.27 1.15
2002 1.00 0.005 (0.005) 1.00 0.55 29,626 0.98 0.53 1.19
* FOR THE SIX MONTHS ENDED MARCH 31, 2007.
** INCLUDES A REALIZED CAPITAL GAIN DISTRIBUTION OF LESS THAN $0.001.
++ 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.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 56
notes to financial statements
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION:
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 sixteen 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");
and 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.
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 corresponding series of the Trust. The
reorganization was approved by shareholders of AHA Funds and was effective on
October 3, 2005. Shares of the AHA Funds are offered through separate
prospectuses. To request a prospectus for the AHA Funds, shareholders can call
1-800-445-1341 or write to CNI Charter Funds, c/o SEI Investments Distribution
Co., One Freedom Valley Drive, Oaks, Pennsylvania 19456.
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
accounting principles generally accepted in the U.S. 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 increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price 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
Trustees. 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; for international securities market events
occur after the close of the foreign markets that make closing prices not
representative of fair value; or the security's primary pricing source is not
able or willing to provide a price. When a security is valued in accordance with
the Fair Value Procedures, the Committee will determine the value after taking
into consideration relevant information reasonably available to the Committee.
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 method.
CNI CHARTER FUNDS | PAGE 57
notes to financial statements
MARCH 31, 2007 (UNAUDITED)
- --------------------------------------------------------------------------------
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 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.
EXPENSE ALLOCATION -- Common expenses incurred by the Funds are allocated among
the Funds (i) based upon relative average daily net assets, (ii) as incurred on
a specific identification basis, or (iii) equally among the Funds, depending on
the nature of the expenditure.
CLASSES -- Class-specific expenses are borne by that class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective class on the basis of relative net asset value each day.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid to shareholders monthly for the 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.
The Trust has adopted a Rule 12b-1 Distribution Plan ("the Plan") with respect
to Class A, Class S and Class 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
it provides services at an annual rate of $15,000 per share class. The Transfer
Agent has voluntarily agreed to waive these fees. Citigroup Fund Services, LLC
serves as the Sub-Transfer Agent for the RCB Small Cap Value Fund.
U.S. 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. The Trust
has agreed to voluntarily waive shareholder servicing fees to the extent
necessary to limit the total
CNI CHARTER FUNDS | PAGE 58
- --------------------------------------------------------------------------------
operating expenses of the Fund. For the six-months ended March 31, 2007, CNB
received Shareholder Servicing fees from the Trust in the amount of $4,737,643.
Certain officers of the Trust are also officers of City National Asset
Management, Inc. ("CNAM", the "Adviser") and the Administrator. Such officers
are paid no fees by the Trust for serving as officers of the Trust.
4. INVESTMENT ADVISORY FEES AND OTHER AGREEMENTS:
CNAM, a wholly owned subsidiary of CNB, serves as the Investment Manager for the
Funds. 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.
HSBC HALBIS PARTNERS (USA), INC. acts as the Investment Sub-Adviser on behalf of
the High Yield Bond Fund.
Sub-Adviser fees are paid by the Adviser.
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 Funds' 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.
As of March 31, 2007, fees which were previously waived by the Adviser which may
be subject to possible future reimbursement to the Adviser were as follows:
Potential Amount of
Fund Recovery (000) Expiration
- --------------------------------------------------------------------------------
Government Bond $ 16 2007
18 2008
23 2009
California Tax Exempt Bond 23 2007
25 2008
28 2009
High Yield Bond 42 2007
42 2008
38 2009
California Tax Exempt Money Market 496 2007
430 2008
516 2009
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, 2007, 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 $ -- $15,086 $ -- $12,011
Large Cap Growth Equity -- 9,187 -- 6,018
RCB Small Cap Value -- 18,669 -- 31,023
Technology Growth -- 539 -- 535
Corporate Bond 1,059 8,706 309 7,365
Government Bond 30,097 1,010 16,973 2,132
California Tax Exempt Bond -- 11,298 -- 7,976
High Yield Bond -- 5,279 -- 8,441
- --------------------------------------------------------------------------------
CNI CHARTER FUNDS | PAGE 59
notes to financial statements
MARCH 31, 2007 (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 undistributed net
investment income (loss), accumulated net realized gain (loss), or
paid-in-capital, as appropriate, in the period that the differences arise.
The tax character of dividends and distributions declared during the years ended
September 30, 2006 and September 30, 2005 are shown below:
Tax
Exempt Ordinary Long-term
Income Income Capital Gain Total
Fund (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Large Cap Value Equity
2006 $ -- $ 1,252 $3,789 $ 5,041
2005 -- 535 1,908 2,443
Large Cap Growth Equity
2006 -- 101 -- 101
2005 -- 198 -- 198
RCB Small Cap Value
2006 -- 66 1,121 1,187
2005 -- 521 2,493 3,014
Technology Growth
2006 -- 4 -- 4
2005 -- -- -- --
Corporate Bond
2006 -- 2,221 -- 2,221
2005 -- 1,919 303 2,222
Government Bond
2006 -- 1,324 -- 1,324
2005 -- 739 120 859
California Tax Exempt Bond
2006 724 26 68 818
2005 593 -- 82 675
High Yield Bond
2006 -- 3,020 -- 3,020
2005 -- 3,404 -- 3,404
Prime Money Market
2006 -- 43,643 -- 43,643
2005 -- 14,619 -- 14,619
Government Money Market
2006 -- 85,649 -- 85,649
2005 -- 38,829 -- 38,829
California Tax Exempt Money Market
2006 19,281 -- -- 19,281
2005 9,088 -- 173 9,261
As of September 30, 2006, 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 $ -- $ 303 $ 5,197 $ -- $ --
Large Cap Growth Equity -- 22 -- (2,998) --
RCB Small Cap Value -- 2 1,108 -- --
Technology Growth -- -- -- (1,504) --
Corporate Bond -- 198 -- (64) (271)
Government Bond -- 130 -- (59) (355)
California Tax Exempt Bond 65 -- -- -- (42)
High Yield Bond -- 245 -- (1,233) (22)
Prime Money Market -- 5,059 -- (403) --
Government Money Market -- 8,376 -- -- --
California Tax Exempt Money Market 1,831 -- -- -- --
Unrealized Other Total
Appreciation Temporary Distributable Earnings
(Depreciation) Differences (Accumulated Losses)
Fund (000) (000) (000)
- ---------------------------------------------------------------------------------------------
Large Cap Value Equity $17,218 $ (304) $22,414
Large Cap Growth Equity 4,119 (24) 1,119
RCB Small Cap Value 12,695 -- 13,806
Technology Growth 191 -- (1,313)
Corporate Bond (374) (199) (710)
Government Bond (232) (130) (646)
California Tax Exempt Bond 77 (66) 34
High Yield Bond (37) (245) (1,292)
Prime Money Market -- (5,057) (401)
Government Money Market -- (8,374) 2
California Tax Exempt Money Market -- (1,830) 1
CNI CHARTER FUNDS | PAGE 60
- --------------------------------------------------------------------------------
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,
2006, the breakdown of capital loss carryforwards is as follows:
Expiring September 30,
-------------------------------------------------------
2010 2011 2012 2013 2014
Fund (000) (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Large Cap Growth Equity $1,482 $1,516 $ -- $ -- $ --
Technology Growth 290 658 328 228 --
Corporate Bond -- -- -- -- 64
Government Bond -- -- -- -- 59
High Yield Bond 33 932 -- -- 268
Prime Money Market 403 -- -- -- --
- --------------------------------------------------------------------------------
During the year ended September 30, 2006, the following Funds had utilized
capital loss carryforwards to offset capital gains amounting to:
Amount
Fund (000)
- --------------------------------------------------------------------------------
Large Cap Growth Equity $1,412
Technology Growth 102
- --------------------------------------------------------------------------------
Post-October losses represent losses realized on investments and foreign
currency transactions from November 1, 2005 through September 30, 2006 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, 2007 for each of the Equity and
Fixed Income Funds were as follows:
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
Fund (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Large Cap Value Equity $ 96,260 $24,092 $(1,111) $22,981
Large Cap Growth Equity 46,150 7,587 (1,685) 5,902
RCB Small Cap Value 52,925 15,839 (1,503) 14,336
Technology Growth 2,585 529 (268) 261
Corporate Bond Fund 59,084 387 (441) (54)
Government Bond 46,987 141 (96) 45
California Tax Exempt Bond 31,125 75 (118) (43)
High Yield Bond 38,096 1,369 (536) 833
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.
8. SUBSEQUENT EVENT:
Effective as of the commencement of business on April 16, 2007, the Technology
Growth Fund of the CNI Charter Funds (the "Trust") was reorganized into the
Large Cap Growth Fund of the Trust.
CNI CHARTER FUNDS | PAGE 61
notes to financial statements
MARCH 31, 2007 (UNAUDITED)
9. CAPITAL SHARES ISSUED AND REDEEMED:
Capital share activity for the six months ended March 31, 2007 (Unaudited) and
the year ended September 30, 2006 were as follows:
LARGE CAP VALUE LARGE CAP GROWTH RCB SMALL CAP TECHNOLOGY
EQUITY FUND (000) EQUITY FUND (000) VALUE FUND (000) GROWTH FUND (000)
------------------ ----------------- ------------------ ------------------
2007 2006 2007 2006 2007 2006 2007 2006
- --------------------------------------------------------- ------------------ ------------------ ------------------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 1,115 5,652 631 1,054 43 192 29 80
Shares Issued in Lieu of
Dividends and Distributions 391 304 6 4 6 6 -- 1
Shares Redeemed (785) (1,488) (383) (1,036) (213) (211) (23) (85)
- --------------------------------------------------------- ------------------ ------------------ ------------------
Net Institutional
Class Transactions 721 4,468 254 22 (164) (13) 6 (4)
========================================================= ================== ================== ==================
CLASS A:
Shares Issued 178 275 249 425 11 41 8 34
Shares Issued in Lieu of
Dividends and Distributions 63 50 2 1 4 5 -- --
Shares Redeemed (81) (177) (95) (202) (42) (122) (8) (52)
- --------------------------------------------------------- ------------------ ------------------ ------------------
Net Class A Transactions 160 148 156 224 (27) (76) -- (18)
========================================================= ================== ================== ==================
CLASS R:
Shares Issued -- -- -- -- 82 433 -- --
Shares Issued in Lieu of
Dividends and Distributions -- -- -- -- 23 27 -- --
Shares Redeemed -- -- -- -- (310) (863) -- --
- --------------------------------------------------------- ------------------ ------------------ ------------------
Net Class R Transactions -- -- -- -- (205) (403) -- --
========================================================= ================== ================== ==================
CALIFORNIA HIGH YIELD
CORPORATE BOND GOVERNMENT BOND TAX EXEMPT BOND BOND
FUND (000) FUND (000) FUND (000) FUND (000)
---------------- ---------------- ----------------- -------------------
2007 2006 2007 2006 2007 2006 2007 2006
- --------------------------------------------------------- ------------------ ------------------ ------------------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 666 1,551 1,066 1,325 839 865 56 460
Shares Issued in Lieu of
Dividends and Distributions 22 40 24 33 15 25 48 100
Shares Redeemed (416) (1,139) (232) (594) (407) (565) (458) (726)
- --------------------------------------------------------- ------------------ ------------------ ------------------
Net Institutional
Class Transactions 272 452 858 764 447 325 (354) (166)
========================================================= ================== ================== ==================
CLASS A:
Shares Issued 13 14 67 135 -- 3 99 204
Shares Issued in Lieu of
Dividends and Distributions 1 3 1 1 1 1 47 92
Shares Redeemed (30) (35) (4) (16) (10) (38) (98) (383)
- --------------------------------------------------------- ------------------ ------------------ ------------------
Net Class A Transactions (16) (18) 64 120 (9) (34) 48 (87)
========================================================= ================== ================== ==================
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
CNI CHARTER FUNDS | PAGE 62
California
PRIME GOVERNMENT TAX EXEMPT
MONEY MARKET MONEY MARKET MONEY MARKET
FUND (000) FUND (000) FUND (000)
----------------------- ------------------------- -----------------------
2007 2006 2007 2006 2007 2006
- ------------------------------------------------------------------- ------------------------- -------------------------
CAPITAL SHARES ISSUED AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 615,771 1,690,942 305,556 635,895 846,084 1,444,514
Shares Issued in Lieu of
Dividends and Distributions 1,880 2,507 2 2 -- --
Shares Redeemed (568,986) (1,637,671) (307,427) (615,154) (857,640) (1,432,711)
- ------------------------------------------------------------------- ------------------------- -------------------------
Net Institutional
Class Transactions 48,665 55,778 (1,869) 20,743 (11,556) 11,803
=================================================================== ========================= =========================
CLASS A:
Shares Issued 1,111,495 2,204,941 2,647,781 5,761,555 1,091,054 2,014,013
Shares Issued in Lieu of
Dividends and Distributions 5,424 5,522 31,472 51,511 6,815 12,188
Shares Redeemed (1,054,800) (1,882,549) (2,486,525) (5,767,874) (1,183,030) (1,964,398)
- ------------------------------------------------------------------- ------------------------- -----------------------
Net Class A Transactions 62,119 327,914 192,728 45,192 (85,161) 61,803
=================================================================== ========================= =========================
CLASS S:
Shares Issued 743,524 1,261,525 363,409 1,013,412 170,453 348,788
Shares Issued in Lieu of
Dividends and Distributions -- -- -- -- -- --
Shares Redeemed (644,626) (1,140,675) (330,743) (1,009,234) (172,327) (329,840)
- ------------------------------------------------------------------- ------------------------- -----------------------
Net Class S Transactions 98,898 120,850 32,666 4,178 (1,874) 18,948
=================================================================== ========================= =========================
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
10. NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and its impact on the Funds' financial
statements has not yet been determined.
In September 2006, FASB issued Statement on Financial Accounting Standards
(SFAS) No. 157, "Fair Value Measurements." This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. The changes to current generally accepted accounting
principles from the application of this Statement relate to the definition of
fair value, the methods used to measure fair value, and the expanded disclosures
about fair value measurements. As of September 30, 2006, the Funds do not
believe the adoption of SFAS No. 157 will impact the amounts reported in the
financial statements; however, additional disclosures may be required about the
inputs used to develop the measurements and the effect of certain of the
measurements reported in the financial statements for a fiscal period.
CNI CHARTER FUNDS | PAGE 63
disclosure of fund expenses (UNAUDITED)
- --------------------------------------------------------------------------------
All mutual funds have operating expenses. As a shareholder of a Fund, your
investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, administrative services, 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
10/1/06 3/31/07 RATIOS PERIOD*
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,096.50 0.96% $5.02
Class A 1,000.00 1,094.30 1.21 6.32
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
10/1/06 3/31/07 RATIOS PERIOD*
- --------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,055.30 0.99% $5.07
Class A 1,000.00 1,053.20 1.24 6.35
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,020.00 0.99% $4.99
Class A 1,000.00 1,018.75 1.24 6.24
* 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 64
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/06 3/31/07 RATIOS PERIOD*
- --------------------------------------------------------------------------------
RCB SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,165.50 1.19% $6.42
Class A 1,000.00 1,164.00 1.44 7.77
Class R 1,000.00 1,164.30 1.44 7.77
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.00 1.19% $5.99
Class A 1,000.00 1,017.75 1.44 7.24
Class R 1,000.00 1,017.75 1.44 7.24
- --------------------------------------------------------------------------------
TECHNOLOGY FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,048.80 1.19% $6.08
Class A 1,000.00 1,049.60 1.49 7.61
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.00 1.19% $5.99
Class A 1,000.00 1,017.50 1.49 7.49
- --------------------------------------------------------------------------------
CORPORATE BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,025.40 0.74% $3.74
Class A 1,000.00 1,024.10 0.99 5.00
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.24 0.74% $3.73
Class A 1,000.00 1,020.00 0.99 4.99
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,025.60 0.70% $3.54
Class A 1,000.00 1,024.30 0.95 4.79
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 $1,011.00 0.50% $2.51
Class A 1,000.00 1,010.70 0.75 3.76
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
10/1/06 3/31/07 RATIOS PERIOD*
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,064.80 1.00% $5.15
Class A 1,000.00 1,063.30 1.30 6.69
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 $1,024.00 0.59% $2.98
Class A 1,000.00 1,022.80 0.81 4.08
Class S 1,000.00 1,021.80 1.01 5.09
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $ 1,021.99 0.59% $2.97
Class A 1,000.00 1,020.89 0.81 4.08
Class S 1,000.00 1,019.90 1.01 5.09
- --------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,023.70 0.60% $3.03
Class A 1,000.00 1,022.60 0.82 4.13
Class S 1,000.00 1,021.50 1.02 5.14
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.94 0.60% $3.02
Class A 1,000.00 1,020.84 0.82 4.13
Class S 1,000.00 1,019.85 1.02 5.14
- --------------------------------------------------------------------------------
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
- --------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,014.40 0.55% $2.76
Class A 1,000.00 1,013.40 0.78 3.92
Class S 1,000.00 1,012.40 0.98 4.92
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 65
proxy voting results
- --------------------------------------------------------------------------------
At a special meeting held on March 28, 2007 the shareholders of the Technology
Growth Fund of the CNI Charter Funds (the "Trust") approved an Agreement and
Plan of Reorganization whereby the Technology Growth Fund series of the Trust
was reorganized into the Large Cap Growth Fund series of the Trust.
The result of the vote was as follows:
% of % of
Outstanding Shares
Number of Shares Shares Present
- --------------------------------------------------------------------------------
AFFIRMATIVE 390,699.00 60.88% 100%
AGAINST 0.00 0.00 0.00
ABSTAIN 0.00 0.00 0.00
CNI CHARTER FUNDS | PAGE 66
approval of investment advisory agreements (UNAUDITED)
- --------------------------------------------------------------------------------
The Board of Trustees of CNI Charter Funds (the "Trust") is comprised of four
Trustees, all of whom are independent of the Trust's investment advisers and
sub-advisers. During the six months ended March 31, 2007, the Board of Trustees
approved renewal of the Trust's advisory agreement (the "Management Agreement")
with City National Asset Management, Inc. ("CNAM") and CNAM's sub-advisory
agreement (the "Sub-Advisory Agreement") with Reed, Conner & Birdwell, LLC
("RCB") with respect to the RCB Small Cap Value Fund (the "RCB Fund").
GENERAL INFORMATION
The following information summarizes the Board's considerations associated with
its approval of renewal of each of the Agreements. In connection with their
deliberations, the Board considered such information and factors as they
believed, in light of the legal advice furnished to them and their own business
judgment, to be relevant. The Management Agreement and the Sub-Advisory
Agreement were considered separately for each relevant investment portfolio of
the Trust (each a "Fund"), although the Board took into account the common
interests of all the relevant Funds in its review. As described below, the Board
considered the nature, quality and extent of the various investment advisory and
administrative services performed by CNAM and RCB. In considering these matters,
the Board discussed the approval of the Agreements with management and in
private sessions with counsel at which no representatives of CNAM or RCB were
present.
The Board reviewed extensive materials regarding investment results of CNAM and
RCB, advisory fee and expense comparisons, financial and profitability
information with respect to each entity, descriptions of various functions such
as compliance monitoring and portfolio trading practices, and information about
the personnel providing investment management and administrative services to the
Funds.
In deciding to approve renewal of the Agreements, 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.
CNAM
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services provided by CNAM, the Board considered a variety of
matters, including the background, education and experience of its key portfolio
management and operational personnel; its overall financial strength and
stability; its resources and efforts to retain, attract and motivate capable
personnel to serve the Funds; and the overall general quality and depth of its
organization. The Board also took into account the experience, capability and
integrity of its senior management; its investment philosophy and processes as
well as brokerage, trading and soft dollar practices; its disaster recovery and
contingency planning; and its commitment and systems in place with regard to
compliance with applicable laws and regulations.
INVESTMENT PERFORMANCE
The Board assessed the performance of each Fund compared with its respective
benchmark and the average of all funds in its respective peer group category
(each, a "universe") selected by Lipper, Inc. and iMoneyNet, Inc. (for the money
market funds only) for the one-, two-, three- and five-year periods ended
December 31, 2006. The Board also reviewed the performance of each Fund compared
with the average performance of all funds in its respective "bank channel"
universe, which includes only those funds in the Fund's Lipper universe that are
distributed through institutional and retail bank channels. The Board made the
following observations in reviewing the Funds' performance:
o The annualized total returns of the PRIME MONEY MARKET FUND were slightly
below but near those of the averages of the Lipper institutional money market
fund universe, iMoneyNet prime institutional fund universe, and bank channel
universe.
o The annualized total returns of the GOVERNMENT MONEY MARKET FUND were slightly
below but near those of the averages of the Lipper institutional U.S.
government money market fund universe, iMoneyNet government institutional fund
universe, and bank channel universe.
CNI CHARTER FUNDS | PAGE 67
approval of investment advisory agreements (Unaudited)
- --------------------------------------------------------------------------------
o The annualized total returns of the TAX EXEMPT MONEY MARKET FUND were slightly
below but near those of the averages of the Lipper California tax exempt money
market fund universe, iMoneyNet state specific institutional (California) fund
universe, and bank channel universe.
o The annualized total returns of the LARGE CAP GROWTH EQUITY FUND were above
those of the Lipper large cap growth fund universe, S&P 55/Citigroup Growth
Index, and bank channel universe for the one-year period (except the S&P
500/Citigroup Index), below those measures for the two-year period (except the
Lipper universe) and the three-year period, and significantly above all those
measures for the five-year period.
o The annualized total returns of the LARGE CAP VALUE EQUITY FUND were above
those of the averages of the Lipper large cap value funds universe and the
bank channel universe, and below the S&P 500/Citigroup Value Index, for all
periods.
o The annualized total returns of the RCB SMALL CAP VALUE FUND were below those
of the averages of the Lipper small cap core funds universe, Russell 2000
Index and bank channel universe for the one-year period, below those measures
(except for the Lipper universe) for the two- and three-year periods, and
above all those measures for the five-year period.
o The annualized total returns of the TECHNOLOGY GROWTH FUND were above those of
the Russell 3000 Technology Index, Lipper science & technology funds universe
and the bank channel universe (except for the Russell Index) for the one-year
period, below or near those measures (except for the Lipper universe) for the
two-year period, and below those measures for the three- and five-year
periods.
o The annualized total returns of the CORPORATE BOND FUND were equal to or above
those of the averages of the Lipper short/intermediate investment-grade
universe and the bank channel universe, and below those of the Lehman
Intermediate U.S. Corporate Index, for all periods.
o The annualized total returns of the GOVERNMENT BOND FUND were at or above
those of the averages of the Lipper short/intermediate U.S. government
universe and the bank channel universe for all periods, and below those of the
Lehman U.S. Government Bond Index for all periods (except the one-year
period).
o The annualized total returns of the CALIFORNIA TAX EXEMPT BOND FUND were above
those of the averages of the Lipper California short/intermediate debt
universe and the bank channel universe for all periods (except the two-year
period for the Lipper universe), and below those of the Lehman California
Intermediate-Short Municipal Index for all periods.
o The annualized total returns of the HIGH YIELD BOND FUND were approximately at
those of the averages of the Lipper high current yield bond funds universe and
the bank channel universe for the three- and five-year periods, below those
measures for the one- and two-year periods and below the Citigroup Bond
High-Yield Market Index for all periods.
The Board determined that CNAM continued to provide high quality services to the
Funds. They noted that the investment results of the Funds during the past year
and previous periods were generally good; that in the instances where some of
the Funds had below average short-term performance results their longer term
results were good; that the results for the Money Market Funds and Technology
Fund compared to their peer groups were acceptable given the special services
and investment focus of those Funds; and that measurements of performance
relative to market indexes needed to recognize that indexes did not reflect the
expenses of operating mutual funds. The Board also considered that the
Technology Growth Fund would be reorganized into the Large Cap Growth Equity
Fund, upon shareholder approval.
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the advisory fees charged by CNAM and
the total expenses of each of the Funds compared to those of the funds included
in the relevant Lipper and bank channel universes, and concluded that the
advisory fees and expenses of the Funds continued to be reasonable.
The Board observed that the management fees paid by the Funds for the year ended
December 31, 2006 were at or below
CNI CHARTER FUNDS | PAGE 68
- --------------------------------------------------------------------------------
the averages for relevant Lipper fund universes and bank channel universes
except for the fees paid by the RCB Small Cap Value Fund, the Technology Growth
Fund, the Money Market Funds and the High Yield Bond Fund, which were slightly
above their respective Lipper universe averages. The Board noted that the Funds
represented CNAM's sole investment advisory clients, and it would not be able to
compare the fees charged to the Funds by CNAM with fees charged to other
institutional clients of CNAM.
With respect to the total expenses of the Funds, the Board considered that total
expenses for the year ended December 31, 2006 were approximately at or below the
averages for relevant Lipper universes and bank channel universes except for
Class A of the Corporate Bond Fund and of the High Yield Bond Fund, which were
slightly above the relevant bank channel averages; the Prime Money Market Fund
and the California Tax-Exempt Money Market Fund, each of which were within the
middle 60% of comparable funds; and the Government Money Market Fund, which was
in the top 20% of comparable funds. The Board noted, however, that the Money
Market Funds offered unique features such as automatic sweep functions, late
cut-off times for investment, and no minimum transaction size requirements, and
as a result had high levels of activity and considerable asset volatility, which
created substantial demands on CNAM's portfolio management staff.
The Board considered information prepared by CNAM relating to its costs and
profits, recognizing that CNAM has no clients other than the Funds. The Board
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 Trust, and the intangible benefits of the
favorable publicity arising in connection with the Funds' performance. They also
noted that, although there were no advisory fee breakpoints, the asset levels of
most of the Funds were not so substantial that they would lead to significant
economies of scale, and that as the majority of CNAM's operating expenses are
employee salaries its operating expenses would not decrease significantly if the
Funds' asset levels changed.
CONCLUSIONS
Based on their review, including their consideration of each of the factors
referred to above, the Board concluded that the Management Agreement represents
fair and reasonable compensation in light of the nature and quality of the
services being provided by CNAM to the respective Funds and their shareholders.
RCB
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services provided by RCB to the RCB Fund, the Board considered
a variety of matters, including the background, education and experience of its
key portfolio management and operational personnel; its overall financial
strength and stability; its resources and related efforts to retain, attract and
motivate capable personnel to serve the RCB Fund; and the overall general
quality and depth of its organization. The Board also reviewed RCB's investment
philosophy and processes as well as brokerage, trading and soft dollar
practices.
INVESTMENT PERFORMANCE
The Board's observations regarding the RCB Fund's performance are described
above in the "Investment Performance" section under "CNAM." As indicated above,
the Board concluded that RCB continued to provide high quality services to the
RCB Fund. They noted that the longer-term investment results of the RCB Fund
were good, and that measurements of performance relative to market indexes
needed to recognize that indexes did not reflect the expenses of operating
mutual funds.
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the advisory fees charged by RCB and
observed that the fees charged by RCB were low compared to the fees it charged
to other institutional clients. They noted that CNAM pays RCB's sub-advisory
fees out of CNAM's advisory fee. Although RCB's fee schedule has no breakpoints,
they also noted that the asset levels of the RCB Fund were not so substantial
that they would lead to significant economies of scale.
CNI CHARTER FUNDS | PAGE 69
approval of investment advisory agreements (UNAUDITED)
- --------------------------------------------------------------------------------
The Board considered information prepared by RCB relating to its costs and
profits with respect to the RCB Fund, as well as the methodologies used to
determine and allocate such costs to its management of the Fund. The Board also
considered the benefits received by RCB and its affiliates as a result of RCB's
relationship with the Funds, including the intangible benefits of the favorable
publicity arising in connection with the RCB Fund's performance, fees paid to
CNAM as the Fund's adviser, and fees paid to City National Bank and City
National Securities for providing certain shareholder servicing and
sub-distribution services to the Trust.
CONCLUSIONS
Based on their review, including their consideration of each of the factors
referred to above, the Board concluded that the RCB Agreement represents fair
and reasonable compensation in light of the nature and quality of the services
being provided by RCB to the RCB Fund and its shareholders.
CNI CHARTER FUNDS | PAGE 70
notes
- --------------------------------------------------------------------------------
notes
- --------------------------------------------------------------------------------
----------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
For more information on CNI Charter Funds, including charges
and expenses, please call 1-888-889-0799 for a free prospectus.
Read it carefully before you invest or send money.
CNI CHARTER FUNDS(SM) [LOGO OMITTED]
CNI-SA-002-0300
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
CNI Charter Funds (the "Fund") has adopted the following procedures by which
shareholders may recommend nominees to the Fund's Board of Trustees. The Fund
has a Nominating Committee comprised solely of persons who are not considered
"interested persons" of the Fund within the meaning of the Investment Company
Act of 1940. The Committee periodically reviews such issues as the Board's
composition, responsibilities, committees, compensation and other relevant
issues, and recommends any appropriate changes to the full Board of Trustees.
While the Committee normally is able to identify from its own resources an ample
number of qualified candidates, it will consider shareholder suggestions of
persons to be considered as nominees to fill future vacancies on the Board, so
long as the shareholder or shareholder group submitting a proposed nominee: (a)
beneficially owns more than 5% of the Fund's voting shares and has held such
shares continuously for two years, and (b) is not an adverse holder. No eligible
shareholder or shareholder group may submit more than one independent Board
member nominee each year. Such suggestions must be sent in writing to the Fund
's Secretary, and must be accompanied by the shareholder's contact information,
the nominee's contact information and number of Fund shares owned by the
nominee, all information regarding the nominee that would be required to be
disclosed in solicitations of proxies for elections of directors required under
the Securities Exchange Act of 1934, and a notarized
letter from the nominee stating his or her intention to serve as a nominee and
be named in the Fund's proxy statement, if so designated by the Committee and
the Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrants 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/ Richard D. Byrd
--------------------------------
Richard D. Byrd, President & CEO
Date May 24, 2007
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/ Richard D. Byrd
-------------------------------------
Richard D. Byrd, President & CEO
Date May 24, 2007
By (Signature and Title)* /s/ Eric Kleinschmidt
-------------------------------------
Eric Kleinschmidt, Controller and COO
Date May 24, 2007
* Print the name and title of each signing officer under his or her signature.