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, 2008
DATE OF REPORTING PERIOD: MARCH 31, 2008
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO]
AMERICAN HOSPITAL
ASSOCIATION
AHA INVESTMENT FUNDS(TM)
A SERIES OF THE CNI CHARTER FUNDS
[GRAPHIC OMITTED]
March 31, 2008
2008 SEMI-ANNUAL REPORT
AHA Limited Maturity Fixed Income Fund
AHA Full Maturity Fixed Income Fund
AHA Balanced Fund
AHA Diversified Equity Fund
AHA Socially Responsible Equity Fund
CCM Advisors LLC, is the AHA-sponsored
investment advisor for the AHA Investment Program
TABLE OF CONTENTS
Semi-Annual Report
AHA Investment Funds
Series of CNI Charter Funds
2 Letter to Our Shareholders
6 Schedules of Investments
33 Statements of Assets and Liabilities
34 Statements of Operations
36 Statements of Changes in Net Assets
38 Financial Highlights
40 Notes to Financial Statements
46 Disclosure of Fund Expenses
47 Approval of Sub-Advisory Agreement
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AVAILABILITY OF PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies related 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 1-800-445-1341, (2) on the CNI Charter Funds' website at
www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission's
website at www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission for the first and third quarters of each
fiscal year on Form N-Q within 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 CNI Charter Funds' website at www.cnicharterfunds.com and without charge,
upon request by calling 1-800-445-1341.
AHA INVESTMENT FUNDS | PAGE 1
letter to our shareholders
MARCH 31, 2008
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Dear Shareholder:
The first half of our fiscal year, the six months ending March 31, 2008, have
witnessed turmoil in the bond markets due to the sub-prime debt crisis and the
resulting emergency actions by the Federal Reserve Bank to ease credit markets.
Fed funds rates were cut repeatedly over the six months which have actually
proved beneficial to investors in the AHA Limited Maturity Fixed Income Fund and
Full Maturity Fixed Income Fund, as discussed below. Further, equity markets
have been down across the board with the S&P 500 off -12.46% in the half year as
oil prices reached new peaks and the economy hovers in the early phases of
recession. While investors in the AHA Diversified Equity Fund experienced this
along with the market as a whole, the Fund was restructured during this period
to provide more diversification by investment strategy and risk control.
Please find below a review of the first half of the fiscal year for the AHA
Investment Funds
AHA LIMITED MATURITY FIXED INCOME FUND
Because of strict high credit quality standards this Fund has responded
favorably to Federal Reserve rate cuts designed to stem an economic recession
and the crisis in credit markets. The two managers of the AHA Limited Maturity
Fund diversify by investing in different maturity ranges: Patterson Capital
Corporation manages in the 1-3 year maturity range whereas City National Asset
Management, Inc. ("CNAM") manages in the 1-5 year maturity range. As a defensive
strategy the managers bought even higher quality securities raising the average
credit quality from AA+ to AAA- over the course of the half year. The Fund's
overall duration shortened slightly to 2.0 years at March 31st, as CNAM in
particular shortened its portfolio maturity to 2.6 years as the under three year
segments of the yield curve (i.e., the curve that plots the yields of Treasury
securities with differing maturity dates) stood to benefit the most from Fed
rate cuts. The Fund's securities were distributed almost evenly among
Treasuries, agencies, mortgages and corporate bonds as a diversification and
income producing approach, since non-Treasury bonds generally produce higher
income than Treasuries themselves.
Over the past six months ending March 31, 2008, the Institutional Class of the
AHA Limited Maturity Fixed Income Fund produced a total return, net of fees, of
4.28% as compared to 1.95% for 90 day Treasury Bills and 5.41% for 1-3 year
Treasuries. Note that the flight to Treasuries in the period produced a jump in
the 1-3 year Treasury Index returns, whereas the Limited Maturity Fixed Income
Fund is a bond fund diversified across multiple sectors. For income oriented
investors, the drop in rates caused the 30 day yield on Treasury Bills to fall
from 3.94% in October to 1.38% in March; while the 30 day yield on the AHA
Limited Maturity Fixed Income Fund went from 4.20% in October to 2.79% in March,
giving investors a 1.41% advantage. The table below shows the movement of the
yield curve over the six months:
YIELD CURVE OF U.S. TREASURY SECURITIES AS OF 3/31/08, 12/31/07 AND 9/30/07
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
3/31/08 12/31/07 9/30/07
3M 1.38 3.36 3.82
6M 1.51 3.49 4.09
1 Yr 1.55 3.34 4.05
2 Yr 1.62 3.05 3.97
3 Yr 1.79 3.07 4.03
2.12 3.26 4.13
5 Yr 2.46 3.45 4.23
2.88 3.70 4.38
10 Yr 3.45 4.04 4.59
3.67 4.27 4.74
3.88 4.50 4.89
4.09 4.47 4.86
25Yr+ 4.30 4.45 4.83
Both managers followed policies of not investing Fund assets in low quality
sub-prime debt or structured investment vehicles. In November the money market
sweep account for all of the AHA Funds was changed from a prime money market
fund to a Treasuries only daily sweep to ensure the Funds were not exposed to
commercial paper with credit con-cerns. The high credit standards of the AHA
Funds are of primary concern as we seek to maintain liquidity and safety for our
investors.
AHA INVESTMENT FUNDS | PAGE 2
letter to our shareholders
MARCH 31, 2008
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AHA FULL MATURITY FIXED INCOME
This Fund also combines two sub-advisors: a core bond manager, Baird Advisors,
with a mandate to follow a market neutral duration compared to the Lehman
Aggregate Index; and Boyd Watterson Asset Management, LLC, an alpha manager
whose role is to move duration proactively in comparison to the Lehman
Intermediate Government/Credit Index. Our objective is to maintain a
broadly-invested core bond portfolio and seek additional return through duration
and interest rate tactical management.
In the six months ending March 31, 2008, the Institutional Class of the Fund
achieved a net total return of 4.37%, compared to 5.24% for the Lehman Aggregate
Index and 6.01% for the Lehman Intermediate Government/Credit Index. We note
that the Lehman Intermediate Government/Credit Index contains no mortgage
exposure of any kind, while the Fund holds high quality, AAA-rated mortgages,
which were impacted by the market-wide credit crunch. The flight to safety
across debt markets favored Treasuries over all other sectors over this period.
The return of this Fund compares favorably to the Lipper, Inc. Corporate Debt
Funds A Rated benchmark which had an average return of 1.88% for the half year.
The Fund managers over-weighted corporate, mortgage and asset backed,
dollar-issued bonds of foreign entities, and under-weighted Treasury and to a
lesser degree agency issues. The Fund is an investment grade Fund with an
average credit quality rating of AA, and the Fund's managers avoided any losses
due to the sub-prime, lower grade mortgage lenders. The Fund is structured to
provide safety through high quality investment grade holdings.
AHA BALANCED FUND
This Fund is what Morningstar labels a moderately balanced fund, with target
weightings of 60% large cap core stocks, 30% core bonds, and 10% cash. During
the six months ending March 31, 2008, the Fund's portfolio was divided between
two managers, Freeman Associates for core equity and Baird Advisors for core
bonds. During the first half of the fiscal year the Institutional Class of the
Fund returned (6.73)% compared to (5.95)% for its blended index of 60% S&P 500,
30% Lehman Aggregate and 10% Treasury Bills. The approach of the core equity
manager, Freeman Associates, relies heavily upon quantitative models emphasizing
price-to-cash flow, price-to-earnings and price-to-sales ratios. Freeman's
portion of the Fund is diversified in all S&P 500 sectors within a narrow range
of the sector weightings of the Index. The core bond manager, Baird Advisors,
with a mandate to follow a market neutral duration compared to the Lehman
Aggregate Index, maintains a broadly-invested core bond portfolio and seeks
additional return through sector weightings.
AHA DIVERSIFIED EQUITY FUND
During the six month period ending March 31, 2008, this Fund was restructured to
keep its goal of diversification by investment style intact. As the stock market
turned a corner in 2007 from favoring value to growth oriented stocks, we added
a growth manager to the blend as the investment adviser's Investment Committee
believes the bias for growth stocks to be a long term trend. Turner Investment
Partners, Inc. was added to the Fund on February 29th as a large cap growth
ALPHA manager. An ALPHA manager seeks to provide returns in excess of market
generated returns, and may be more concentrated in certain industry sectors.
SKBA Capital Management, LLC (large/ mid-cap ALPHA) and AMBS Investment Counsel,
LLC (traditional large cap value), provide value style to the Fund to complement
the core manager, Freeman Associates Investment Management, LLC, as illustrated
in the pie chart.
AHA INVESTMENT FUNDS | PAGE 3
letter to our shareholders
MARCH 31, 2008
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[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
Freeman - Core 36.00%
AMBS - Fundamental Value 18.25%
SKBA - Large Mid-Value 18.25%
Turner Investment - Growth 27.50%
During the six month period under review, the Institutional Class of this Fund
returned (12.87)%, as compared to (12.46)% for the S&P 500 Index. The approach
of the core manager, Freeman Associates, relies heavily upon quantitative models
emphasizing price-to-cash flow, price-to-earnings and price-to-sales ratios. The
core half of the Fund is diversified in all S&P 500 sectors within a narrow
range of the sector weightings of the Index.
SKBA, an alpha manager in the large/mid-capitalization range, was able to add to
the Fund's performance by diversification in holdings with favorable dividend
and price valuations in the Energy, Healthcare and non-bank Financials sectors.
Underweights in the Consumer Staples and Materials, sectors which performed well
in the half year, caused the comparative performance of this portion of the
Fund's portfolio to lag.
AMBS, a traditional value manager, concentrates holdings in certain sectors.
AMBS held no Utilities, and although that sector did well in 2007, in the first
quarter of 2008 it was advantageous to under (or zero) weight this sector. AMBS
also had a heavy weighting in Consumer Staples and Industrials, two of the
better performing sectors, and fortunately underweighted Financials, which
underperformed in this period. However, Information Technology, a large sector
holding, detracted from performance in the period.
On February 29th, Turner Investment Partners, LLC began management of 27.5% of
the Fund, with assets transferred proportionately from the other three managers.
In March, its first month of sub-advising the Fund, Turner avoided overweighting
Information Technology, which was beneficial as that sector was weak. Turner's
other largest sector allocations were to Healthcare and Energy, which were
middle of the pack in the month.
AHA SOCIALLY RESPONSIBLE EQUITY FUND
This Fund is managed solely by SKBA Capital Management, LLC, a manager with
expertise in socially conscious investing, using a value oriented philosophy.
For the half year ending March 31, 2008, the Institutional Class of the Fund
returned (12.19)% net of fees, compared to (12.34)% for the Domini 400 Social
Index. The manager invests from a universe of companies which are screened for
social values including pro-environmental, good corporate governance and
citizenship and following the guidelines of the U.S. Conference of Catholic
Bishops. Starting with a universe of 600 companies remaining after social
screening of the Russell Value Index and stocks outside of the Index, this Fund
seeks to invest responsibly using fundamental stock valuation analysis and
through social concerns. The Fund is heavily weighted in Energy, notably natural
gas production and distribution as a clean energy source (Chesapeake Energy and
Atmos Energy), Financials (NASDAQ, and Marsh & McLennan), Health (Johnson &
Johnson) and Consumer Discretionary (Honda Motor) sectors.
AHA INVESTMENT FUNDS | PAGE 4
letter to our shareholders
MARCH 31, 2008
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We at CCM Advisors, LLC, the investment advisor to the AHA Investment Funds,
series of the CNI Charter Funds, are grateful for your trust. We are confident
that our combination of safety through high quality fixed income investments and
core plus ALPHA equity strategies is designed to provide an optimal investment
approach that will weather up and down market cycles and meet our investors'
risk control and return optimization needs.
Sincerely,
/s/ Timothy G.Solberg
Timothy G.Solberg, CFA
CHIEF INVESTMENT OFFICER
AHA INVESTMENT FUNDS, SERIES OF THE CNI CHARTER FUNDS
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
OPINIONS EXPRESSED ABOVE ARE SUBJECT TO CHANGE, ARE NOT GUARANTEED, AND SHOULD
NOT BE CONSIDERED A RECOMMENDATION TO BUY OR SELL ANY SECURITY. PLEASE REFER TO
THE SCHEDULE OF INVESTMENTS IN THE REPORT FOR FUND HOLDINGS AND INDEX
DEFINITIONS. PORTFOLIO HOLDINGS AND SECTOR ALLOCATIONS ARE SUBJECT TO CHANGE.
THE ADVISER HAS AN AGREEMENT IN PLACE TO WAIVE FEES. IN THE ABSENCE OF SUCH
WAIVERS, TOTAL RETURN WOULD BE REDUCED.
MUTUAL FUND INVESTING INVOLVES RISK. PRINCIPAL LOSS IS POSSIBLE.
CHANGING INTEREST RATES CAN ADVERSELY AFFECT THE VALUE OF AN INVESTMENT IN THE
AHA LIMITED AND FULL MATURITY FUNDS.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. PLEASE
READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO.
AHA INVESTMENT FUNDS | PAGE 5
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA LIMITED MATURITY FIXED INCOME FUND
TYPE OF SECURITY WEIGHTINGS*:
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
U.S. Government Mortgage-Backed Obligations 32.0%
U.S. Treasury Obligations 24.4%
Corporate Bonds 22.9%
U.S. Government Agency Obligations 16.4%
Mortgage-Backed Securities 2.1%
Cash Equivalent 1.2%
Municipal Bond 1.0%
* Percentages based on total investments.
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE BACKED OBLIGATIONS [31.7%]
FFCB, Ser IA2, Cl 1
5.220%, 10/21/13 $ 644 $ 693
FFCB, Ser IA8, Cl 1
4.650%, 01/21/14 1,389 1,390
FHLB
4.375%, 03/17/10 1,825 1,900
FHLMC REMIC, Ser R003,
Cl AG
5.125%, 10/15/15 886 899
FHLMC REMIC,
Ser R005, Cl AB
5.500%, 12/15/18 1,315 1,344
FHLMC REMIC, Ser R006,
Cl AK
5.750%, 12/15/18 799 816
FHLMC REMIC,
Ser R007, Cl AC
5.875%, 05/15/16 775 787
FHLMC REMIC, Ser R009,
Cl AJ
5.750%, 12/15/18 1,321 1,352
FHLMC REMIC, Ser R010,
Cl AB
5.500%, 12/15/19 1,537 1,583
FHLMC REMIC, Ser R013,
Cl AB
6.000%, 12/15/21 1,547 1,590
FHLMC REMIC, Ser R014,
Cl AL
5.500%, 10/15/14 1,244 1,262
FHLMC REMIC,
Ser R015, Cl AN
3.750%, 02/15/13 1,759 1,748
FHLMC, Pool J04241
5.500%, 01/01/22 928 948
FHLMC, Pool J04459
5.000%, 03/01/22 270 272
FHLMC, Pool J04492
5.000%, 03/01/22 379 384
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FHLMC, Pool J04508
5.000%, 03/01/22 $ 270 $ 273
FNMA
4.750%, 12/15/10 1,000 1,056
FNMA, Pool 541946
7.500%, 07/01/30 1 1
FNMA, Pool 584930
7.500%, 05/01/31 2 2
FNMA, Pool 837191
5.000%, 12/01/20 762 770
FNMA, Pool 837196
5.500%, 02/01/21 739 756
FNMA, Pool 961783
4.500%, 02/01/23 956 952
GNMA, Pool 2003 31 PB,
Cl PB
5.500%, 02/16/32 1,244 1,274
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $21,750) 22,052
=======================================================================
U.S. TREASURY OBLIGATIONS [24.2%]
U.S.Treasury Notes
6.000%, 08/15/09 4,700 4,986
4.875%, 04/30/11 875 953
4.625%, 07/31/09 1,300 1,353
4.500%, 05/15/10 1,190 1,263
4.500%, 02/28/11 2,185 2,355
3.875%, 09/15/10 1,500 1,581
3.625%, 10/31/09 300 309
3.500%, 12/15/09 500 516
2.625%, 03/15/09 1,500 1,515
2.000%, 02/28/10 2,000 2,014
-----------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $16,488) 16,845
=======================================================================
CORPORATE BONDS [22.7%]
AEROSPACE & DEFENSE [0.3%]
United Technologies
4.375%, 05/01/10 200 205
=============================================================================
BANKS [2.0%]
HSBC Holding
7.500%, 07/15/09 200 207
U.S. Bank, NA
6.375%, 08/01/11 1,100 1,191
-----------------------------------------------------------------------------
TOTAL BANKS 1,398
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 6
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA LIMITED MATURITY FIXED INCOME FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CHEMICALS [0.4%]
Dow Chemical
5.750%, 12/15/08 $ 250 $ 254
=============================================================================
COMPUTER SYSTEM DESIGN & SERVICES [1.6%]
IBM, MTN
4.375%, 06/01/09 1,100 1,123
=============================================================================
ELECTRICAL PRODUCTS [0.4%]
Public Service Electric & Gas,
Ser C, MTN
4.000%, 11/01/08 250 250
=============================================================================
FINANCE AUTO LOANS[0.4%]
Toyota MotorCredit
5.500%, 12/15/08 300 303
=============================================================================
FINANCIAL SERVICES [1.8%]
American General Finance,
Ser H, MTN
5.375%, 10/01/12 710 697
Boeing Capital
6.100%, 03/01/11 250 266
International Lease Finance
4.350%, 09/15/08 300 299
-----------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 1,262
=============================================================================
INSURANCE [0.3%]
Allstate
7.200%, 12/01/09 200 212
=============================================================================
INVESTMENT BANKER/BROKER DEALER [6.4%]
Credit Suisse First Boston
6.125%, 11/15/11 1,100 1,162
3.875%, 01/15/09 300 300
Goldman Sachs Group
6.650%, 05/15/09 1,100 1,129
Lehman Brothers Holdings
6.625%, 01/18/12 735 742
Morgan Stanley
6.750%, 04/15/11 1,100 1,153
-----------------------------------------------------------------------------
TOTAL INVESTMENT BANKER/BROKER DEALER 4,486
=============================================================================
MULTI MEDIA [1.7%]
Walt Disney, MTN
6.375%, 03/01/12 1,100 1,191
=============================================================================
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS [0.8%]
ConocoPhillips
8.750%, 05/25/10 $ 250 $ 279
Unilever Capital
7.125%, 11/01/10 250 274
-----------------------------------------------------------------------------
TOTAL OIL, GAS & CONSUMABLE FUELS 553
=============================================================================
PETROLEUM & FUEL PRODUCTS [1.7%]
Conoco Funding
6.350%, 10/15/11 1,100 1,198
=============================================================================
RETAIL [0.7%]
Target
5.400%, 10/01/08 250 253
Wal-Mart Stores
6.875%, 08/10/09 200 211
-----------------------------------------------------------------------------
TOTAL RETAIL 464
=============================================================================
TELEPHONES & TELECOMMUNICATIONS [4.2%]
AT&T
6.250%, 03/15/11 1,100 1,152
Bellsouth Telecommunications
5.875%, 01/15/09 300 305
Verizon Communications
7.250%, 12/01/10 1,350 1,450
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,907
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $15,599) 15,806
=======================================================================
U.S. GOVERNMENT AGENCY OBLIGATIONS [16.3%]
FHLB
4.875%, 05/14/10 2,280 2,400
4.375%, 09/17/10 1,515 1,585
FHLMC
5.250%, 05/21/09 980 1,013
5.125%, 10/15/08 1,200 1,219
4.250%, 07/15/09 675 692
FNMA, MTN
6.625%, 09/15/09 1,200 1,275
5.500%, 03/15/11 1,200 1,291
4.875%, 04/15/09 685 703
3.250%, 02/15/09 1,105 1,114
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $10,942) 11,292
=======================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 7
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA LIMITED MATURITY FIXED INCOME FUND (CONCLUDED)
FACE AMOUNT
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
MORTGAGE BACKED SECURITIES [2.1%]
Bear Stearns Commercial Mortgage
Securities, Ser 2001 TOP2, Cl A1
6.080%, 02/15/35 $ 289 $ 291
GMAC Commercial Mortgage
Securities, Ser 2004 C3, Cl A2
3.950%, 12/10/41 260 258
JPMorgan Chase Commercial
Mortgage, Ser 2005 LDP5, Cl A1
5.035%, 12/15/44 444 443
Morgan Stanley Capital Investments,
Ser 2005 T17, Cl A2
4.110%, 12/13/41 481 477
-----------------------------------------------------------------------------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $1,492) 1,469
=======================================================================
MUNICIPAL BOND [1.0%]
Philadelphia School District, Ser A,
General Obligation Student Aid
Withholding 625 679
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BOND
(Cost $671) 679
=======================================================================
CASH EQUIVALENT [1.2%]
AIM STIT-Treasury
Portfolio, 1.24%* 850,868 851
-----------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $851) 851
=======================================================================
TOTAL INVESTMENTS [99.2%]
(Cost $67,793) $ 68,994
=======================================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $69,532,649.
* THE RATE SHOWN RESPRESENTS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2008.
CL -- CLASS
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
NA -- NATIONAL ASSOCIATION
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 8
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND
TYPE OF SECURITY WEIGHTINGS*:
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Corporate Bonds 29.8%
U.S. Government Agency Obligations 20.8%
U.S. Government Mortgage-Backed Obligations 15.1%
U.S. Treasury Obligations 15.0%
Mortgage-Backed Securities 14.9%
Cash Equivalents 2.5%
Asset-Backed Securities 1.2%
Foreign Government Bonds 0.6%
Municipal Bond 0.1%
* Percentages based on total investments.
- --------------------------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
CORPORATE BONDS [30.0%]
AEROSPACE & DEFENSE [0.5%]
United Technologies
4.375%, 05/01/10 $ 215 $ 220
=============================================================================
AGRICULTURE [0.2%]
Bunge NA Finance
5.900%, 04/01/17 100 100
=============================================================================
BANKS [5.2%]
AmSouth Bancorp
6.750%, 11/01/25 75 73
Bank of America
10.200%, 07/15/15 100 130
5.750%, 12/01/17 365 378
Bank One
10.000%, 08/15/10 89 99
Bankers Trust
7.250%, 10/15/11 46 52
Deutsche Bank
6.000%, 09/01/17 180 188
Dresdner Bank New York
7.250%, 09/15/15 150 162
European Investment Bank
4.625%, 03/21/12 450 478
FHLB of Chicago
5.625%, 06/13/16 185 203
HSBC Holding
7.500%, 07/15/09 285 295
Santander Central Hispano
Issuances
7.625%, 09/14/10 100 110
Wachovia
6.300%, 04/15/08 150 150
-----------------------------------------------------------------------------
TOTAL BANKS 2,318
=============================================================================
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
BUILDING & CONSTRUCTION [0.3%]
Hanson Australia Funding
5.250%, 03/15/13 $ 75 $ 76
Masco
6.125%, 10/03/16 75 66
-----------------------------------------------------------------------------
TOTAL BUILDING & CONSTRUCTION 142
=============================================================================
CABLE/MEDIA [0.2%]
TCI Communications
7.875%, 08/01/13 75 82
=============================================================================
COMPUTER SYSTEM DESIGN & SERVICES [0.7%]
IBM, MTN
4.375%, 06/01/09 300 306
=============================================================================
DATA PROCESSING [0.2%]
Fiserv
6.125%, 11/20/12 100 103
=============================================================================
DIVERSIFIED OPERATIONS [0.4%]
Hutchison Whampoa International (A)
5.450%, 11/24/10 150 155
=============================================================================
DRUGS [1.0%]
Abbott Laboratories
5.600%, 05/15/11 325 345
Teva Pharmaceutical
5.550%, 02/01/16 75 76
-----------------------------------------------------------------------------
TOTAL DRUGS 421
=============================================================================
ENERGY [1.5%]
Carolina Power & Light
5.150%, 04/01/15 80 81
Exelon
5.625%, 06/15/35 75 66
Korea Electric Power
7.750%, 04/01/13 95 106
6.750%, 08/01/27 75 76
NiSource Finance
7.875%, 11/15/10 75 82
Pacific Gas & Electric
6.050%, 03/01/34 25 25
PPL Energy Supply, Ser A
5.700%, 10/15/15 75 72
Public Service Company
of Colorado, Ser 14
4.375%, 10/01/08 100 100
United Utilities
6.450%, 04/01/08 70 70
-----------------------------------------------------------------------------
TOTAL ENERGY 678
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 9
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES [4.0%]
American Express Credit
3.000%, 05/16/08 $ 300 $ 300
American General Finance
8.450%, 10/15/09 100 106
Associates Corp of North
America, Ser A
7.950%, 02/15/10 75 81
Eksportsfinans, Ser G
5.125%, 10/26/11 300 320
General Electric Capital, MTN
5.500%, 04/28/11 330 346
General Electric Capital, Ser A,
MTN
6.000%, 06/15/12 75 80
HSBC Finance
5.000%, 06/30/15 75 71
Residential Capital
8.000%, 02/22/11 75 37
Svensk Exportkredit
4.875%, 01/19/10 280 291
UFJ Finance Aruba
6.750%, 07/15/13 125 139
-----------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 1,771
=============================================================================
FOOD, BEVERAGE & TOBACCO [1.2%]
Coca Cola
5.350%, 11/15/17 290 303
Kraft Foods
6.500%, 08/11/17 190 195
Pepsi Bottling Holdings (A)
5.625%, 02/17/09 50 51
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 549
=============================================================================
INSURANCE [0.4%]
Protective Life
4.300%, 06/01/13 100 97
Travelers (B)
6.250%, 03/15/37 100 88
-----------------------------------------------------------------------------
TOTAL INSURANCE 185
=============================================================================
INVESTMENT BANKER/BROKER DEALER [5.7%]
Bear Stearns, MTN (B)
3.474%, 01/31/11 340 312
Citigroup
3.625%, 02/09/09 300 299
Credit Suisse USA
5.250%, 03/02/11 325 335
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Goldman Sachs Group
6.600%, 01/15/12 $ 200 $ 211
5.150%, 01/15/14 75 74
2.971%, 06/28/10 (B) 100 97
Jefferies Group
6.450%, 06/08/27 100 80
JPMorgan Chase
6.000%, 01/15/18 150 156
Lehman Brothers Holdings
6.625%, 01/18/12 300 303
6.500%, 07/19/17 100 95
Merrill Lynch
6.000%, 02/17/09 325 326
Merrill Lynch, Ser C, MTN (B)
3.315%, 02/05/10 70 67
Morgan Stanley
4.750%, 04/01/14 75 70
4.538%, 01/15/10 (B) 140 137
-----------------------------------------------------------------------------
TOTAL INVESTMENT BANKER/BROKER DEALER 2,562
=============================================================================
MANUFACTURING [0.5%]
General Electric
5.000%, 02/01/13 150 155
Tyco International Group
6.375%, 10/15/11 75 75
-----------------------------------------------------------------------------
TOTAL MANUFACTURING 230
=============================================================================
MEDICAL PRODUCTS [0.3%]
Johnson & Johnson
5.550%, 08/15/17 130 140
=============================================================================
METALS & MINING [0.5%]
Vale Overseas
6.875%, 11/21/36 100 97
6.250%, 01/23/17 100 100
-----------------------------------------------------------------------------
TOTAL METALS & MINING 197
=============================================================================
MULTI MEDIA [0.9%]
Time Warner
9.125%, 01/15/13 50 56
5.875%, 11/15/16 85 81
Viacom
7.700%, 07/30/10 75 79
Walt Disney, MTN
6.375%, 03/01/12 150 162
-----------------------------------------------------------------------------
TOTAL MULTI MEDIA 378
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 10
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS [1.4%]
ConocoPhillips
5.300%, 04/15/12 $ 300 $ 317
Shell International
5.625%, 06/27/11 300 322
-----------------------------------------------------------------------------
TOTAL OIL, GAS & CONSUMABLE FUELS 639
=============================================================================
PETROLEUM & FUEL PRODUCTS [0.3%]
Energy Transfer Partners
6.625%, 10/15/36 75 70
Pemex Project Funding
Master Trust
9.125%, 10/13/10 50 56
-----------------------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 126
=============================================================================
RETAIL [1.7%]
Home Depot
5.250%, 12/16/13 310 303
Lowe's
5.000%, 10/15/15 200 201
Target
6.350%, 01/15/11 250 265
-----------------------------------------------------------------------------
TOTAL RETAIL 769
=============================================================================
SECURITY BROKERS & DEALERS [0.2%]
iStar Financial
5.850%, 03/15/17 100 69
=============================================================================
SHORT TERM BUSINESS CREDIT [0.2%]
Citigroup Canada
5.200%, 06/01/15 100 75
=============================================================================
TELEPHONES & TELECOMMUNICATIONS [2.2%]
British Telecommunications
9.125%, 12/15/30 100 124
8.625%, 12/15/10 (C) 60 66
Deutsche Telekom
International Finance
8.250%, 06/15/30 75 90
8.000%, 06/15/10 25 27
France Telecom
7.750%, 03/01/11 50 54
New Cingular Wireless Services
8.750%, 03/01/31 75 91
SBC Communications
5.300%, 11/15/10 300 311
Sprint Capital
6.900%, 05/01/19 75 59
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Telecom Italia Capital
7.200%, 07/18/36 $ 75 $ 71
Telefonica Emisiones
6.421%, 06/20/16 75 77
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 970
=============================================================================
TRANSPORTATION SERVICES [0.3%]
FedEx
9.650%, 06/15/12 125 150
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $13,174) 13,335
=======================================================================
U.S. GOVERNMENT AGENCY OBLIGATIONS [20.9%]
FAMC, MTN
4.250%, 07/29/08 20 20
FFCB
4.875%, 04/04/12 200 214
FHLMC
6.875%, 09/15/10 300 331
5.875%, 03/21/11 350 378
4.375%, 07/17/15 810 838
FNMA, MTN
6.625%, 09/15/09 200 212
6.125%, 03/15/12 740 826
6.000%, 05/15/11 2,550 2,788
5.000%, 02/13/17 950 1,015
4.625%, 05/01/13 200 203
4.625%, 10/15/13 400 424
4.250%, 09/25/22 226 228
3.875%, 02/15/10 325 335
FNMA, Pool 745418
5.500%, 04/01/36 1,465 1,482
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $8,972) 9,294
=======================================================================
MORTGAGE BACKED SECURITIES [15.0%]
Banc of America Alternative
Loan Trust, Ser 2004 2, Cl 5A1
5.500%, 03/25/19 118 114
Banc of America Alternative
Loan Trust, Ser 2005 4, Cl CB11
5.500%, 05/25/35 118 117
Banc of America Alternative
Loan Trust, Ser 2005 6, Cl 7A1
5.500%, 07/25/20 98 99
Banc of America Alternative
Loan Trust, Ser 2005 9, Cl 1CB3
5.500%, 10/25/35 114 110
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 11
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
Banc of America Alternative
Loan Trust, Ser 2006 2, Cl 6A1
5.500%, 03/25/21 $ 132 $ 124
Bayview Financial Acquisition Trust,
Ser 2007 A, Cl 1A2
6.205%, 04/28/37 200 196
Bear Stearns Commercial
Mortgage Security,
Ser 2007 PW16, Cl AM (B)
5.713%, 06/11/40 300 274
Capital One Multi Asset
Execution Trust, Ser 2006 A9,
Cl A9 (B)
2.830%, 05/15/13 500 490
Chase Mortgage Finance,
Ser 2003 S13, Cl A11
5.500%, 11/25/33 100 100
Citigroup
5.205%, 12/11/49 400 389
Citigroup Mortgage Loan Trust,
Ser 2005 9, Cl 2A2
5.500%, 11/25/35 105 102
Commercial Mortgage,
Ser 2006 C8, Cl A2B
5.248%, 12/10/46 185 181
Countrywide Asset Backed
Certificate, Ser 2007 S1,
Cl A6 (B)
5.693%, 02/25/37 200 153
Countrywide Asset Backed
Certificates, Ser 2006 11,
Cl 1AF3 (B)
6.050%, 09/25/46 200 190
Countrywide Asset Backed
Certificates, Ser 2006 13,
Cl 1AF2
5.884%, 01/25/37 200 197
Deutsche Bank Alternate Loan
Trust, Ser 2006 AR5, Cl 21A
6.000%, 10/15/21 165 157
Discover Card Master Trust I,
Ser 2003 4, Cl A1 (B)
2.930%, 05/15/11 400 397
First Horizon Alternative Mortgage
Securities, Ser 2006 FA8, Cl 2A1
5.750%, 02/25/37 161 150
GE Capital Commercial Mortgage,
Ser 2002 3A, Cl A2
4.996%, 12/10/37 150 146
GE Capital Commercial Mortgage,
Ser 2004 C3, Cl A4 (B)
5.189%, 07/10/39 200 201
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
GMAC Commercial Mortgage
Securities, Ser 2003 C1, Cl A2
4.079%, 05/10/36 $ 225 $ 209
GMAC Mortgage Corporation Loan
Trust, Ser 2004 GH1, Cl A6 (B)
4.810%, 07/25/35 147 141
GMAC Mortgage Corporation
Loan Trust, Ser 2004 J4, Cl A2
5.500%, 08/25/14 105 104
John Deere Owner Trust,
Ser 2007 A, Cl A3
5.040%, 07/15/11 420 424
JPMorgan Alternative Loan
Trust, Ser 2006 S3, Cl A3A
6.000%, 08/25/36 200 196
JPMorgan Chase,
Ser 2006 CB17, Cl ASB
5.415%, 12/12/43 200 198
JPMorgan Mortgage Trust,
Ser 2006 A7, Cl 2A2 (B)
5.819%, 01/25/37 185 180
JPMorgan Mortgage Trust,
Ser 2006 A7, Cl 2A4R (B)
5.446%, 01/25/37 200 183
JPMorgan Mortgage Trust,
Ser 2007 A2, Cl 2A3 (B)
5.708%, 04/25/37 200 181
RAAC, Ser 2004 SP1, Cl AI4 (B)
5.285%, 08/25/27 143 131
Renaissance Home Equity,
Ser 2007 1, Cl AF2
5.512%, 04/25/37 200 199
Residential Accredit Loans,
Ser 2004 QS5, Cl A5
4.750%, 04/25/34 45 41
Residential Accredit Loans,
Ser 2004 QS6, Cl A1
5.000%, 05/25/19 76 70
Salomon Brothers Mortgage
Securities VII, Cl A2
7.455%, 07/18/33 174 179
Wachovia Bank Commercial
Mortgage, Ser 2003 C3, Cl A2
4.867%, 02/15/35 150 147
WaMu Mortgage Pass Through
Certificates, Ser 2004 CB2, Cl 5A
5.000%, 07/25/19 187 181
-----------------------------------------------------------------------------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $6,932) 6,651
==========================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 12
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE BACKED OBLIGATIONS [15.2%]
FHLMC Gold, Pool G11880
5.000%, 12/01/20 $ 147 $ 149
FHLMC REMIC, Ser 2720
5.000%, 12/15/16 150 154
FHLMC REMIC, Ser R003
5.500%, 08/15/16 165 171
FHLMC REMIC, Ser R009, Cl AJ
5.750%, 12/15/18 161 165
FHLMC REMIC, Ser R010, Cl AB
5.500%, 12/15/19 320 330
FHLMC REMIC, Ser R010, Cl VA
5.500%, 04/15/17 138 143
FHLMC, Pool 160098
10.500%, 01/01/10 2 2
FHLMC, Pool 1B2550 (B)
5.277%, 02/01/36 195 198
FHLMC, Pool 1B2677 (B)
4.104%, 01/01/35 32 32
FHLMC, Pool 1B2683 (B)
4.088%, 01/01/35 19 19
FHLMC, Pool 1B2692 (B)
4.469%, 12/01/34 56 56
FHLMC, Pool 1Q0081 (B)
5.064%, 03/01/36 309 314
FHLMC, Pool C20300
6.500%, 01/01/29 15 15
FHLMC, Pool E01280
5.000%, 12/01/17 53 53
FHLMC, Pool G08003
6.000%, 07/01/34 160 164
FHLMC, Pool G11431
6.000%, 02/01/18 35 36
FHLMC, Pool G11911
5.000%, 02/01/21 383 388
FHLMC, Pool G12609
5.500%, 04/01/22 786 803
FHLMC, Pool G18124
6.000%, 06/01/21 142 146
FHLMC, Ser 2141, Cl N
5.550%, 11/15/27 6 6
FHLMC, Ser 2544, Cl QB
5.000%, 09/15/15 66 67
FHLMC, Ser 2730, Cl PD
5.000%, 05/15/21 150 155
FHLMC, Ser 2804, Cl VC
5.000%, 07/15/21 169 171
FHLMC, Ser 3122, Cl VA
6.000%, 01/15/17 129 134
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
FHLMC, Ser 3132, Cl MA
5.500%, 12/15/23 $ 131 $ 135
FNMA REMIC, Ser 2003, Cl 18
5.000%, 03/25/16 78 79
FNMA REMIC, Ser 2003, Cl 31
4.500%, 12/25/28 77 77
FNMA REMIC, Ser 2006 B2, Cl AB
5.500%, 05/25/14 203 207
FNMA, Pool 844809
5.000%, 11/01/35 168 167
FNMA, Pool 252570
6.500%, 07/01/29 30 32
FNMA, Pool 253183
7.500%, 04/01/30 2 3
FNMA, Pool 253398
8.000%, 08/01/30 9 10
FNMA, Pool 254510
5.000%, 11/01/17 68 69
FNMA, Pool 254545
5.000%, 12/01/17 132 134
FNMA, Pool 254685
5.000%, 04/01/18 100 101
FNMA, Pool 254949
5.000%, 11/01/33 85 84
FNMA, Pool 254953
5.000%, 11/01/18 53 54
FNMA, Pool 255814
5.500%, 08/01/35 226 229
FNMA, Pool 303168
9.500%, 02/01/25 7 8
FNMA, Pool 735060
6.000%, 11/01/34 110 113
FNMA, Pool 735228
5.500%, 02/01/35 95 96
FNMA, Pool 827223 (B)
4.753%, 04/01/35 178 180
FNMA, Pool 835744
5.000%, 09/01/35 545 540
FNMA, Ser 1992, Cl 136
6.000%, 08/25/22 36 38
FNMA, Ser 2003, Cl 16
5.000%, 10/25/15 124 126
FNMA, Ser 2004 W6, Cl 1A6
5.500%, 07/25/34 81 76
GNMA, Pool 479168
8.000%, 02/15/30 8 9
GNMA, Pool 780315
9.500%, 12/15/17 15 17
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 13
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
GNMA, Ser 2004, Cl 78
4.658%, 04/16/29 $ 150 $ 152
GNMA, Ser 2006, Cl 15A
3.727%, 03/16/27 127 127
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $6,602) 6,734
=======================================================================
U.S. TREASURY OBLIGATIONS [15.2%]
U.S. Treasury Bonds
9.125%, 05/15/18 200 293
6.250%, 08/15/23 2,225 2,739
U.S. Treasury Notes
5.750%, 08/15/10 345 378
4.875%, 08/15/16 775 868
4.750%, 05/15/14 700 786
4.375%, 12/15/10 400 428
4.250%, 08/15/13 300 326
4.250%, 11/15/17 850 907
-----------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $6,298) 6,725
=======================================================================
ASSET BACKED SECURITIES [1.2%]
CitiFinancial Mortgage Securities,
Ser 2004 1, Cl AF2 (C)
2.645%, 04/25/34 53 52
Cityscape Home Equity Loan Trust,
Ser 1997 C, Cl A4 (C)
7.000%, 07/25/28 11 11
Contimortgage Home Equity
Loan Trust, Ser 1997 2, Cl A9
7.090%, 04/15/28 4 4
Green Tree Financial, Ser 1997 7,
Cl A6
6.760%, 07/15/29 112 115
GSAA Home Equity Trust,
Ser 2005 1, Cl AF2 (B)
4.316%, 11/25/34 117 112
Renaissance Home Equity Loan
Trust, Ser 2005 3, Cl AF2 (C)
4.723%, 11/25/35 5 5
Residential Asset Mortgage
Products, Ser 2002 RS3,
Cl AI5 (B)
5.572%, 06/25/32 71 69
Residential Asset Securities,
Ser 2003 KS5, Cl AI6 (B)
3.620%, 07/25/33 167 150
FACE AMOUNT
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
Residential Asset Securities,
Ser 2004 KS5, Cl AI3 (B)
4.030%, 04/25/30 $ 8 $ 8
-----------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $546) 526
=======================================================================
FOREIGN GOVERNMENT BONDS [0.7%]
Cia Bras Bebida
8.750%, 09/15/13 175 205
National Bank of Hungary
8.875%, 11/01/13 75 97
-----------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $279) 302
=======================================================================
MUNICIPAL BOND [0.1%]
LOUISIANA [0.1%]
Louisiana State, Tobacco Settlement
Financing Authority, Ser 2001A,
6.360%, 05/15/25 30 30
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BOND
(Cost $30) 30
=======================================================================
CASH EQUIVALENT [2.5%]
AIM STIT Treasury Portfolio,
1.24% * 1,113,820 1,114
-----------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $1,114) 1,114
=======================================================================
TOTAL INVESTMENTS [100.8%]
(Cost $43,947) $ 44,711
=======================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 14
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND (CONCLUDED)
DESCRIPTION
- --------------------------------------------------------------------------------
PERCENTAGES ARE BASED ON NET ASSETS OF $44,365,885.
* THE RATE SHOWN REPRESENTS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2008.
(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, 2008, THE
VALUE OF THESE SECURITIES AMOUNTED TO $206(000), REPRESENTING 0.5% OF THE
NET ASSETS OF THE FUND.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF
INVESTMENTS IS THE RATE IN EFFECT ON MARCH 31, 2008.
(C) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON MARCH 31, 2008.THE COUPON ON A STEP BOND CHANGES ON A
SPECIFIC DATE.
CL -- CLASS
FAMC -- FEDERAL AGRICULTURAL MORTGAGE CORPORATION
FFCB -- FEDERAL FARM CREDIT BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
NA -- NATIONAL ASSOCIATION
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 15
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND
SECTOR WEIGHTINGS*:
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Mortgage-Backed Securities 13.0%
Financials - Common Stock 9.5%
U.S. Government Mortgage-Backed Obligations 9.2%
Energy - Common Stock 7.8%
Information Technology - Common Stock 7.4%
Industrials - Common Stock 6.9%
U.S. Treasury Obligations 6.9%
HealthCare - Common Stock 6.2%
U.S. Government Agency Obligations 6.2%
Corporate Bonds 6.1%
Consumer Discretionary - Common Stock 5.1%
Consumer Staples - Common Stock 5.0%
Cash Equivalent 3.1%
Telecommunication Services - Common Stock 2.4%
Materials - Common Stock 2.1%
Utilities - Common Stock 2.0%
Asset-Backed Securities 0.6%
Foreign Government Bonds 0.4%
Municipal Bond 0.1%
* Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK [55.2%]
ADVERTISING [0.1%]
CBS, Cl B 843 $ 19
=============================================================================
AEROSPACE & DEFENSE [1.5%]
Boeing 1,650 123
Honeywell International 46 2
Lockheed Martin 777 77
Northrop Grumman 112 9
Raytheon 278 18
-----------------------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 229
=============================================================================
AIRLINES [0.5%]
Southwest Airlines 6,209 77
=============================================================================
AUTOMOTIVE [0.3%]
Autozone* 98 11
Ford Motor* 2,314 13
Paccar 364 17
-----------------------------------------------------------------------------
TOTAL AUTOMOTIVE 41
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BANKS [2.7%]
Bank of America 2,789 $ 106
Bank of New York Mellon 688 29
CME Group, Cl A 10 5
Comerica 195 7
Fifth Third Bancorp 284 6
Marshall & Ilsley 11 --
NYSE Euronext 265 16
PNC Financial Services Group 431 28
State Street 524 41
SunTrust Banks 419 23
Wachovia 2,120 57
Wells Fargo 2,712 79
-----------------------------------------------------------------------------
TOTAL BANKS 397
=============================================================================
BEAUTY PRODUCTS [0.9%]
Procter & Gamble 1,955 137
=============================================================================
BIOMEDICAL RESEARCH & PRODUCTS [0.1%]
Celgene 289 18
=============================================================================
BIOTECHNOLOGY [0.5%]
Amgen 762 32
Biogen Idec 208 13
Gilead Sciences 660 34
Millipore 33 2
-----------------------------------------------------------------------------
TOTAL BIOTECHNOLOGY 81
=============================================================================
BROADCASTING & CABLE [0.7%]
Cisco Systems 3,444 83
Qualcomm 491 20
-----------------------------------------------------------------------------
TOTAL BROADCASTING & CABLE 103
=============================================================================
BUSINESS SERVICES [0.4%]
Computer Sciences* 951 39
eBay* 351 10
Xerox 1,139 17
-----------------------------------------------------------------------------
TOTAL BUSINESS SERVICES 66
=============================================================================
CHEMICALS [1.7%]
Dow Chemical 1,985 73
Eastman Chemical 120 8
EI Du Pont de Nemours 893 42
Monsanto 1,150 128
-----------------------------------------------------------------------------
TOTAL CHEMICALS 251
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 16
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMERCIAL BANKS [0.6%]
BB&T 1,605 $ 51
Regions Financial 1,805 36
-----------------------------------------------------------------------------
TOTAL COMMERCIAL BANKS 87
=============================================================================
COMMUNICATION & MEDIA [0.8%]
Comcast, Cl A 822 16
DIRECTV Group* 299 7
Meredith 286 11
Time Warner 6,235 88
-----------------------------------------------------------------------------
TOTAL COMMUNICATION & MEDIA 122
=============================================================================
COMPUTER & ELECTRONICS RETAIL [0.2%]
GameStop, Cl A* 623 32
=============================================================================
COMPUTER SYSTEM DESIGN & SERVICES [2.9%]
Apple* 785 113
Dell* 1,490 30
Hewlett Packard 2,422 110
IBM 1,479 170
Lexmark International, Cl A* 130 4
Sun Microsystems* 400 6
-----------------------------------------------------------------------------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 433
=============================================================================
COMPUTERS & PERIPHERALS [0.1%]
EMC* 1,239 18
=============================================================================
CONSTRUCTION & ENGINEERING [0.2%]
Jacobs Engineering Group* 345 25
=============================================================================
CONSUMER PRODUCTS [0.1%]
Black & Decker 117 8
=============================================================================
CONSUMER PRODUCTS & SERVICES [0.4%]
Kimberly Clark 818 53
=============================================================================
DATA PROCESSING [0.1%]
Electronic Data Systems 938 16
=============================================================================
DIVERSIFIED MANUFACTURING [2.2%]
General Electric 8,970 332
=============================================================================
DIVERSIFIED METALS & MINING [0.3%]
Freeport McMoRan Copper & Gold, Cl B 433 42
Newmont Mining 55 2
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED METALS & MINING 44
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
DRUGS [2.8%]
Abbott Laboratories 62 $ 3
AmerisourceBergen, Cl A 488 20
Johnson & Johnson 1,426 93
Merck 1,710 65
Pfizer 7,809 163
Watson Pharmaceuticals* 31 1
Wyeth 1,602 67
-----------------------------------------------------------------------------
TOTAL DRUGS 412
=============================================================================
ELECTRICAL SERVICES [1.2%]
DTE Energy 1,147 45
Duke Energy 5,573 99
TECO Energy 2,262 36
Xcel Energy 63 1
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 181
=============================================================================
ENERGY [0.7%]
Edison International 1,343 66
Entergy 239 26
PG&E 462 17
-----------------------------------------------------------------------------
TOTAL ENERGY 109
=============================================================================
ENGINEERING SERVICES [0.4%]
Fluor 437 62
=============================================================================
ENTERTAINMENT [0.4%]
Carnival 1,306 53
=============================================================================
FINANCIAL SERVICES [2.3%]
American Express 2,072 91
Capital One Financial 1,262 62
Charles Schwab 1,715 32
CIT Group 470 6
Citigroup 3,541 76
Discover Financial Services 2,201 36
Federal National Mortgage Association 269 7
Western Union 1,468 31
-----------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 341
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 17
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO [2.5%]
Anheuser Busch 59 $ 3
Coca Cola 128 8
General Mills 1,759 105
Kellogg Company 694 37
Pepsi Bottling Group 2,418 82
PepsiCo 515 37
Safeway 1,987 58
Supervalu 1,572 47
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 377
=============================================================================
GAS/NATURAL GAS [0.1%]
Nicor 476 16
=============================================================================
HEALTHCARE PRODUCTS & SERVICES [1.4%]
Applera - Applied Biosystems Group 119 4
Express Scripts, Cl A* 107 7
Humana* 1,200 54
McKesson 419 22
Medco Health Solutions* 582 25
UnitedHealth Group 2,589 89
-----------------------------------------------------------------------------
TOTAL HEALTHCARE PRODUCTS & SERVICES 201
=============================================================================
HOUSEHOLD FURNITURE & FIXTURES [0.0%]
Whirlpool 37 3
=============================================================================
INSURANCE [3.1%]
ACE 1,486 82
Aetna 930 39
Allstate 501 24
American International Group 794 34
AON 493 20
Cigna 901 37
Coventry Health Care* 57 2
Genworth Financial, Cl A 4,039 91
Hartford Financial Services Group 1,278 97
XL Capital, Cl A 1,276 38
-----------------------------------------------------------------------------
TOTAL INSURANCE 464
=============================================================================
INVESTMENT BANKER/BROKER DEALER [1.4%]
Ameriprise Financial 47 2
Federated Investors, Cl B 831 33
Franklin Resources 425 41
Janus Capital Group 477 11
JPMorgan Chase 2,917 125
Legg Mason 45 3
Northern Trust 4 --
-----------------------------------------------------------------------------
TOTAL INVESTMENT BANKER/BROKER DEALER 215
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
LEISURE & RECREATIONAL PRODUCTS [0.1%]
Brunswick 1,233 $ 20
=============================================================================
MACHINERY [0.9%]
Caterpillar 1,070 84
Cummins 453 21
Deere 276 22
-----------------------------------------------------------------------------
TOTAL MACHINERY 127
=============================================================================
MEDICAL PRODUCTS & SERVICES [1.0%]
Baxter International 149 9
Becton Dickinson 214 18
Eli Lilly 227 12
Genzyme General Division* 188 14
WellPoint* 2,104 93
-----------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 146
=============================================================================
MISCELLANEOUS MANUFACTURING [0.2%]
Leggett & Platt 1,966 30
=============================================================================
MULTI MEDIA [0.7%]
Walt Disney 3,368 106
=============================================================================
OFFICE FURNITURE & FIXTURES [1.3%]
Adobe Systems* 214 8
Microsoft 4,639 132
Oracle* 2,103 41
Symantec* 1,040 17
-----------------------------------------------------------------------------
TOTAL OFFICE FURNITURE & FIXTURES 198
=============================================================================
PAPER & RELATED PRODUCTS [0.2%]
International Paper 1,016 28
=============================================================================
PETROLEUM & FUEL PRODUCTS [7.9%]
Anadarko Petroleum 639 40
Apache 307 37
Chesapeake Energy 387 18
ChevronTexaco 2,368 202
ConocoPhillips 2,284 174
Consol Energy 510 35
Devon Energy 372 39
Exxon Mobil 3,736 316
Hess 425 37
Marathon Oil 162 7
National Oilwell Varco* 427 25
Occidental Petroleum 444 33
Peabody Energy 80 4
Range Resources 268 17
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 18
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Sunoco 1,587 $ 83
Transocean 87 12
Valero Energy 1,844 91
-----------------------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 1,170
=============================================================================
PRINTING & PUBLISHING [0.3%]
Gannett 1,665 48
=============================================================================
RAILROADS [0.2%]
CSX 504 28
=============================================================================
REAL ESTATE INVESTMENT TRUST [0.2%]
Apartment Investment & Management, Cl A 9 --
Host Hotels & Resorts 1,476 24
Public Storage 57 5
-----------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUST 29
=============================================================================
RETAIL [2.9%]
Abercrombie & Fitch, Cl A 261 19
Best Buy 616 26
Gap 1,471 29
Home Depot 2,085 58
Kroger 2,907 74
Lowe's 2,031 47
McDonald's 1,171 65
Target 128 6
Wal-Mart Stores 1,912 101
-----------------------------------------------------------------------------
TOTAL RETAIL 425
=============================================================================
RUBBER & PLASTIC [0.2%]
Apollo Group, Cl A* 556 24
=============================================================================
SEMI CONDUCTORS [1.1%]
Intel 4,036 85
MEMC Electronic Materials* 216 15
Novellus Systems* 388 8
Nvidia* 495 10
Texas Instruments 1,159 33
-----------------------------------------------------------------------------
TOTAL SEMI CONDUCTORS 151
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS [2.5%]
AT&T 2,737 $ 105
CenturyTel 193 6
Corning 228 5
Embarq 702 28
Qwest Communications International 13,597 62
Sprint Nextel 2,151 14
Verizon Communications 3,966 145
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 365
=============================================================================
TRANSPORTATION SERVICES [0.2%]
FedEx 246 23
Norfolk Southern 11 --
-----------------------------------------------------------------------------
TOTAL TRANSPORTATION SERVICES 23
=============================================================================
TRUCKING [0.4%]
Ryder System 1,045 64
=============================================================================
WASTE MANAGEMENT SERVICES [0.4%]
Allied Waste Industries* 3,838 41
Waste Management 357 12
-----------------------------------------------------------------------------
TOTAL WASTE MANAGEMENT SERVICES 53
=============================================================================
WEB PORTALS/ISP [0.8%]
Amazon.com* 231 17
Expedia* 379 8
Google, Cl A* 174 77
Juniper Networks* 376 9
VeriSign* 104 3
-----------------------------------------------------------------------------
TOTAL WEB PORTALS/ISP 114
=============================================================================
WHOLESALE [0.1%]
Dean Foods 491 10
-----------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $8,593) 8,182
==========================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 19
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
MORTGAGE BACKED SECURITIES [13.1%]
Banc of America Alternative
Loan Trust, Ser 2005 6, Cl 7A1
5.500%, 07/25/20 $ 33 $ 33
Bayview Financial Acquisition
Trust, Ser 2007 A, Cl 1A2
6.205%, 04/28/37 100 98
Capital One Multi Asset
Execution Trust, Ser 2006 A9,
Cl A9 (A)
2.830%, 05/15/13 100 98
Chase Mortgage Finance,
Ser 2003 S14, Cl 3A6
5.500%, 01/25/34 45 45
Citicorp Mortgage Securities,
Ser 2003 11, Cl 2A8
5.500%, 12/25/33 52 51
Citicorp Mortgage Securities,
Ser 2004 4, Cl A5
5.500%, 06/25/34 140 137
Citigroup Mortgage Loan Trust,
Ser 2005 9, Cl 2A2
5.500%, 11/25/35 53 51
Countrywide Alternative
Loan Trust, Ser 2005 50CB,
Cl 4A1
5.000%, 11/25/20 32 31
Countrywide Alternative
Loan Trust, Ser 2005 85CB,
Cl 3A1
5.250%, 02/25/21 68 65
Countrywide Alternative
Loan Trust, Ser 2006 7CB,
Cl 3A1
5.250%, 05/25/21 51 48
Countrywide Asset Backed
Certificates, Ser 2005 13,
Cl AF2 (A)
5.294%, 04/25/36 75 75
Credit Based Asset Servicing
and Securitization, Ser 2005 CB8,
Cl AF2 (B)
5.300%, 12/25/35 63 63
Deutsche Bank Alternate
Loan Trust, Ser 2006 AR5,
Cl 21A
6.000%, 10/15/21 83 79
Discover Card Master Trust I,
Ser 2003 3, Cl A (A)
3.018%, 09/15/12 150 148
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
First Horizon CMO,
Ser 2006 FA6, Cl 3A1
5.750%, 11/25/21 $ 69 $ 67
First Union National Bank CMO,
Ser 2001 C4, Cl A2
6.223%, 12/12/33 50 51
GE Capital Commercial
Mortgage, Ser 2002 3A, Cl A2
4.996%, 12/10/37 100 97
GE Capital Commercial
Mortgage, Ser 2004 C3,
Cl A4 (A)
5.189%, 07/10/39 75 75
GMAC Commercial Mortgage
Securities, Ser 2003 C1, Cl A2
4.079%, 05/10/36 100 93
GMAC Mortgage Corporation
Loan Trust, Ser 2004 GH1,
Cl A6 (A)
4.810%, 07/25/35 73 70
GMAC Mortgage Corporation
Loan Trust, Ser 2004 HE5,
Cl A6 (A)
4.390%, 09/25/34 72 55
GMAC Mortgage Corporation
Loan Trust, Ser 2004 J4, Cl A2
5.500%, 08/25/14 53 52
JPMorgan Mortgage Trust,
Ser 2006 A7, Cl 2A4R (A)
5.446%, 01/25/37 100 91
JPMorgan Mortgage Trust,
Ser 2007 A2, Cl 2A3 (A)
5.708%, 04/25/37 100 91
RAAC, Ser 2004 SP1,
Cl AI4 (A)
5.285%, 08/25/27 71 65
Residential Accredit Loans,
Ser 2004 QS5, Cl A5
4.750%, 04/25/34 22 20
Residential Accredit Loans,
Ser 2004 QS6, Cl A1
5.000%, 05/25/19 25 23
Residential Funding Mortgage
Securities I, Ser 2003 S11,
Cl A2
4.000%, 06/25/18 75 71
-----------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $2,030) 1,943
=======================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 20
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE BACKED OBLIGATIONS [9.3%]
FHLMC Gold, Pool C90691
5.500%, 07/01/23 $ 45 $ 46
FHLMC Gold, Pool G01823
6.000%, 05/01/35 77 80
FHLMC Gold, Pool G11771
6.000%, 06/01/20 59 61
FHLMC REMIC, Ser 2578,
Cl PD
5.000%, 08/15/14 40 40
FHLMC REMIC, Ser 2673,
Cl NC
5.500%, 05/15/21 75 78
FHLMC REMIC,
Ser R007, Cl AC
5.875%, 05/15/16 65 66
FHLMC REMIC, Ser R010,
Cl AB
5.500%, 12/15/19 107 110
FNMA REMIC, Ser 2003,
Cl 18
5.000%, 03/25/16 65 66
FNMA REMIC, Ser 2003,
Cl 31
4.500%, 12/25/28 44 44
FNMA, Pool 254800
5.500%, 07/01/23 333 339
FNMA, Pool 256171
6.000%, 03/01/26 186 191
FNMA, Pool 725773
5.500%, 09/01/34 110 111
FNMA, Pool 735228
5.500%, 02/01/35 47 48
FNMA, Pool 790108
6.000%, 08/01/34 54 55
FNMA, Ser 2004 W10, Cl A24
5.000%, 08/25/34 50 50
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE
BACKED OBLIGATIONS
(Cost $1,359) 1,385
=========================================================================
U.S.TREASURY OBLIGATIONS [7.0%]
U.S. Treasury Bond
9.125%, 05/15/18 100 147
6.250%, 08/15/23 725 892
-----------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $976) 1,039
=========================================================================
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS [6.3%]
FNMA
6.000%, 05/15/11 $ 550 $ 601
5.500%, 04/01/36 244 247
4.250%, 09/25/22 81 82
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $911) 930
=========================================================================
CORPORATE BONDS [6.2%]
AGRICULTURE [0.2%]
Bunge NA Finance
5.900%, 04/01/17 25 25
=============================================================================
BANKS [1.6%]
AmSouth Bancorp
6.750%, 11/01/25 50 49
Bankers Trust
7.500%, 11/15/15 25 29
Compass Bank
8.100%, 08/15/09 50 52
Dresdner Bank -- New York
7.250%, 09/15/15 50 54
PNC Funding
7.500%, 11/01/09 50 53
-----------------------------------------------------------------------------
TOTAL BANKS 237
=============================================================================
BUILDING & CONSTRUCTION [0.5%]
Hanson Australia Funding
5.250%, 03/15/13 50 50
Masco
6.125%, 10/03/16 25 22
-----------------------------------------------------------------------------
TOTAL BUILDING & CONSTRUCTION 72
=============================================================================
CONTAINERS & PACKAGING [0.4%]
Pactiv
7.950%, 12/15/25 50 55
=============================================================================
DATA PROCESSING [0.2%]
Fiserv
6.125%, 11/20/12 25 26
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 21
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------------------------
ENERGY [0.7%]
Dominion Resources
6.250%, 06/30/12 $ 30 $ 32
Exelon Generation
6.950%, 06/15/11 50 53
Pacific Gas & Electric
6.050%, 03/01/34 25 24
-----------------------------------------------------------------------------
TOTAL ENERGY 109
=============================================================================
FINANCIAL SERVICES [0.3%]
Household Finance
8.000%, 07/15/10 40 42
=============================================================================
INSURANCE [0.6%]
MetLife
6.500%, 12/15/32 50 49
Protective Life
4.300%, 06/01/13 50 49
-----------------------------------------------------------------------------
TOTAL INSURANCE 98
=============================================================================
INVESTMENT BANKER/BROKER DEALER [0.3%]
Lehman Brothers Holdings
6.500%, 07/19/17 50 48
=============================================================================
MANUFACTURING [0.2%]
Tyco International Group
6.375%, 10/15/11 25 25
=============================================================================
PAPER & PAPER PRODUCTS [0.4%]
Westvaco
9.750%, 06/15/20 50 65
=============================================================================
PETROLEUM & FUEL PRODUCTS [0.2%]
Pemex Project Funding Master Trust
9.125%, 10/13/10 25 28
=============================================================================
TELEPHONES & TELECOMMUNICATIONS [0.6%]
Deutsche Telekom International Finance
8.250%, 06/15/30 25 30
GTE
6.840%, 04/15/18 25 27
New Cingular Wireless Services
8.750%, 03/01/31 25 30
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 87
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $911) 917
=========================================================================
FACE AMOUNT
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------------------------------------
ASSET BACKED SECURITIES [0.5%]
Residential Asset Mortgage Products,
Ser 2002 RS3,
Cl AI5 (A)
5.572%, 06/25/32 $ 82 $ 80
Residential Asset Securities,
Ser 2004 KS5, Cl AI3 (A)
4.030%, 04/25/30 3 3
-----------------------------------------------------------------------------
TOTAL ASSET BACKED SECURITIES
(Cost $86) 83
=========================================================================
FOREIGN GOVERNMENT BOND [0.4%]
Hydro Quebec
11.750%, 02/01/12 50 65
-----------------------------------------------------------------------------
TOTAL FOREIGN GOVERNMENT BOND
(Cost $63) 65
=========================================================================
MUNICIPAL BOND [0.1%]
LOUISIANA [0.1%]
Louisiana State, Tobacco Settlement
Financing Authority, Ser 2001A,
6.360%, 05/15/25 20 20
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BOND
(Cost $20) 20
=========================================================================
CASH EQUIVALENT [3.2%]
AIM STIT Treasury Portfolio,
1.24%** 469,213 469
-----------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $469) 469
=========================================================================
TOTAL INVESTMENTS [101.3%]
(Cost $15,418) $ 15,033
=========================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 22
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA BALANCED FUND (CONCLUDED)
DESCRIPTION
- --------------------------------------------------------------------------------
PERCENTAGES ARE BASED ON NET ASSETS OF $14,833,952.
* NON INCOME PRODUCING SECURITY.
** THE RATE SHOWN REPRESENTS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2008.
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF
INVESTMENTS IS THE RATE IN EFFECT ON MARCH 31, 2008.
(B) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON MARCH 31, 2008. THE COUPON ON A STEP BOND CHANGES ON A
SPECIFIC DATE.
CL -- CLASS
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
ISP -- INTERNET SERVICE PROVIDER
NA -- NATIONAL ASSOCIATION
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 23
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND
SECTOR WEIGHTINGS*:
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Financials 15.8%
Information Technology 15.5%
Energy 12.7%
HealthCare 12.5%
Industrials 11.2%
Consumer Staples 10.2%
Consumer Discretionary 8.9%
Telecommunication Services 4.3%
Materials 3.5%
Cash Equivalents 2.8%
Utilities 2.6%
* Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK [97.6%]
ADVERTISING [0.1%]
CBS, Cl B 5,411 $ 119
=============================================================================
AEROSPACE & DEFENSE [0.8%]
Boeing 6,360 473
General Dynamics 37 3
Honeywell International 363 20
Lockheed Martin 1,556 155
Northrop Grumman 964 75
Raytheon 605 39
-----------------------------------------------------------------------------
TOTAL AEROSPACE & DEFENSE 765
=============================================================================
AIRLINES [0.4%]
Southwest Airlines 26,006 322
=============================================================================
APPAREL/TEXTILES [0.4%]
Coach* 7,260 219
Nike, Cl B 2,260 154
-----------------------------------------------------------------------------
TOTAL APPAREL/TEXTILES 373
=============================================================================
AUTOMOTIVE [0.6%]
Autozone* 379 43
Ford Motor* 975 6
Honda Motor, ADR 14,000 403
Paccar 1,479 67
-----------------------------------------------------------------------------
TOTAL AUTOMOTIVE 519
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
BANKS [3.7%]
Bank of America 14,159 $ 537
Bank of New York Mellon 12,585 525
CME Group, Cl A 933 438
Comerica 355 12
Fifth Third Bancorp 1,331 28
International Bancshares 14,800 334
Marshall & Ilsley 92 2
NYSE Euronext 1,227 76
PNC Financial Services Group 5,480 359
State Street 5,002 395
SunTrust Banks 1,979 109
Wachovia 11,590 313
Wells Fargo 7,473 218
-----------------------------------------------------------------------------
TOTAL BANKS 3,346
=============================================================================
BEAUTY PRODUCTS [0.7%]
Procter & Gamble 9,179 643
=============================================================================
BIOMEDICAL RESEARCH & PRODUCTS [0.5%]
Celgene 1,112 68
Quest Diagnostics 9,100 412
-----------------------------------------------------------------------------
TOTAL BIOMEDICAL RESEARCH & PRODUCTS 480
=============================================================================
BIOTECHNOLOGY [1.3%]
Amgen 2,938 123
Biogen Idec 801 49
BioMarin Pharmaceutical* 2,550 90
Genentech* 3,070 249
Gilead Sciences* 13,746 708
Millipore* 126 9
-----------------------------------------------------------------------------
TOTAL BIOTECHNOLOGY 1,228
=============================================================================
BROADCASTING & CABLE [3.0%]
Cisco Systems* 54,175 1,305
Motorola 16,500 153
Nokia, ADR 10,000 318
Qualcomm 14,114 579
Research In Motion* 3,570 401
-----------------------------------------------------------------------------
TOTAL BROADCASTING & CABLE 2,756
=============================================================================
BUSINESS SERVICES [1.1%]
Computer Sciences* 4,290 175
eBay* 3,478 104
Fiserv* 560 27
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 24
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Visa, Cl A* 3,270 $ 204
Xerox 33,000 494
-----------------------------------------------------------------------------
TOTAL BUSINESS SERVICES 1,004
=============================================================================
CHEMICALS [2.0%]
Dow Chemical 5,945 219
Eastman Chemical 611 38
EI Du Pont de Nemours 4,890 229
Monsanto 8,699 970
Mosaic* 2,130 219
Rohm & Haas 3,000 162
-----------------------------------------------------------------------------
TOTAL CHEMICALS 1,837
=============================================================================
COMMERCIAL BANKS [0.4%]
BB&T 8,070 259
Regions Financial 7,601 150
-----------------------------------------------------------------------------
TOTAL COMMERCIAL BANKS 409
=============================================================================
COMMUNICATION & MEDIA [1.8%]
Comcast, Cl A 4,274 83
DISH Network, Cl A* 15,500 445
Meredith 1,296 50
Time Warner 73,289 1,027
-----------------------------------------------------------------------------
TOTAL COMMUNICATION & MEDIA 1,605
=============================================================================
COMPUTER & ELECTRONICS RETAIL [0.5%]
GameStop, Cl A* 8,210 424
=============================================================================
COMPUTER SYSTEM DESIGN & SERVICES [4.5%]
Apple* 6,592 946
Dell* 35,374 705
Hewlett Packard 20,743 947
IBM 10,157 1,169
Lexmark International, Cl A* 484 15
Seagate Technology 14,400 302
Sun Microsystems* 1,952 30
-----------------------------------------------------------------------------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 4,114
=============================================================================
COMPUTERS & PERIPHERALS [0.4%]
EMC* 27,769 398
=============================================================================
CONSTRUCTION & ENGINEERING [0.1%]
Jacobs Engineering Group* 1,657 122
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS [0.0%]
Black & Decker 527 $ 35
=============================================================================
CONSUMER PRODUCTS & SERVICES [1.6%]
Clorox 8,800 498
Colgate Palmolive 5,320 415
Hasbro 508 14
Kimberly Clark 4,136 267
Mattel 15,000 299
-----------------------------------------------------------------------------
TOTAL CONSUMER PRODUCTS & SERVICES 1,493
=============================================================================
CONTAINERS & PACKAGING [0.2%]
Bemis 711 18
Owens Illinois* 3,180 179
-----------------------------------------------------------------------------
TOTAL CONTAINERS & PACKAGING 197
=============================================================================
DATA PROCESSING [0.1%]
Electronic Data Systems 4,401 73
=============================================================================
DIVERSIFIED MANUFACTURING [3.8%]
General Electric 82,629 3,058
Parker Hannifin 5,300 367
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 3,425
=============================================================================
DIVERSIFIED METALS & MINING [0.2%]
Freeport McMoRan
Copper & Gold, Cl B 1,691 163
=============================================================================
DRUG STORES [0.4%]
Rite Aid* 120,000 353
=============================================================================
DRUGS [4.6%]
Abbott Laboratories 5,383 297
Allergan 5,020 283
AmerisourceBergen, Cl A 2,732 112
Johnson & Johnson 25,892 1,680
Merck 7,164 272
Pfizer 21,761 455
Schering Plough 11,300 163
Teva Pharmaceutical Industries 3,690 170
Wyeth 17,628 736
-----------------------------------------------------------------------------
TOTAL DRUGS 4,168
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 25
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
ELECTRICAL COMPONENTS & EQUIPMENT [0.4%]
Tyco Electronics 10,250 $ 352
=============================================================================
ELECTRICAL SERVICES [1.4%]
American Electric Power 198 8
DTE Energy 1,810 70
Duke Energy 13,628 243
First Solar* 1,170 271
Portland General Electric 21,000 474
TECO Energy 12,805 204
Xcel Energy 24 1
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 1,271
=============================================================================
ELECTRONIC EQUIPMENT & INSTRUMENTS [0.1%]
Dolby Laboratories, Cl A* 1,790 65
=============================================================================
ENERGY [0.6%]
Atmos Energy 5,000 128
Edison International 4,290 210
Entergy 1,284 140
PG&E 800 29
-----------------------------------------------------------------------------
TOTAL ENERGY 507
=============================================================================
ENGINEERING SERVICES [0.2%]
Fluor 1,494 211
=============================================================================
ENTERTAINMENT [0.5%]
Carnival 2,075 84
Chipotle Mexican Grill, Cl A* 1,890 214
International Game Technology 4,640 187
-----------------------------------------------------------------------------
TOTAL ENTERTAINMENT 485
=============================================================================
FINANCIAL SERVICES [3.5%]
American Express 8,558 374
Capital One Financial 12,040 593
Charles Schwab 28,466 536
CIT Group 1,826 22
Citigroup 25,176 539
Discover Financial Services 8,669 142
Federal National Mortgage Association 1,324 35
Nasdaq Stock Market* 11,300 437
People's United Financial 5,600 97
Western Union 20,892 444
-----------------------------------------------------------------------------
TOTAL FINANCIAL SERVICES 3,219
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO [5.8%]
Anheuser Busch 1,185 $ 56
Coca Cola 27,192 1,655
ConAgra Foods 23,400 560
Constellation Brands, Cl A* 71 1
Del Monte Foods 49,500 472
Fomento Economico Mexicano, ADR 5,540 231
General Mills 12,385 742
Molson Coors Brewing, Cl B 4,880 257
Pepsi Bottling Group 8,457 287
PepsiCo 1,087 78
Safeway 24,607 722
Supervalu 8,255 248
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 5,309
=============================================================================
GAS/NATURAL GAS [0.0%]
Nicor 489 16
=============================================================================
HEALTHCARE PRODUCTS & SERVICES [2.4%]
Applera - Applied Biosystems Group 5,113 168
Cardinal Health 11,565 607
Express Scripts, Cl A* 915 59
Humana* 5,621 252
McKesson 1,922 101
Medco Health Solutions* 711 31
Medtronic 7,100 343
Thermo Fisher Scientific* 5,290 301
UnitedHealth Group 9,021 310
-----------------------------------------------------------------------------
TOTAL HEALTHCARE PRODUCTS & SERVICES 2,172
=============================================================================
HOUSEHOLD FURNITURE & FIXTURES [0.3%]
NVR* 410 245
=============================================================================
INDEPENDENT POWER PRODUCERS & ENERGY
TRADER [0.4%]
Constellation Energy Group 4,100 362
=============================================================================
INSURANCE [4.9%]
ACE 6,671 367
Aetna 2,044 86
Aflac 6,480 421
Allstate 650 31
American International Group 14,682 635
AON 1,877 75
Chubb 14,657 725
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 26
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Cigna 2,168 $ 88
Genworth Financial, Cl A 16,769 380
Hartford Financial Services Group 4,758 361
HCC Insurance Holdings 18,500 420
Marsh & McLennan 12,800 312
Mercury General 3,800 168
Prudential Financial 25 2
Unum Group 9,500 209
XL Capital, Cl A 4,902 145
-----------------------------------------------------------------------------
TOTAL INSURANCE 4,425
=============================================================================
INTERNET & CATALOG RETAIL [0.2%]
priceline.com* 1,470 178
=============================================================================
INVESTMENT BANKER/BROKER DEALER [2.7%]
Ameriprise Financial 437 23
BlackRock, Cl A 1,450 296
Federated Investors, Cl B 1,504 59
Franklin Resources 1,697 164
Goldman Sachs Group 2,260 374
Janus Capital Group 1,144 27
JPMorgan Chase 19,134 822
Legg Mason 40 2
Northern Trust 4,821 320
T Rowe Price Group 6,820 341
-----------------------------------------------------------------------------
TOTAL INVESTMENT BANKER/BROKER DEALER 2,428
=============================================================================
LEISURE & RECREATIONAL PRODUCTS [0.1%]
Brunswick 5,326 85
=============================================================================
MACHINERY [1.7%]
Caterpillar 9,248 724
Cummins 1,964 92
Deere 7,113 572
SPX 1,870 196
-----------------------------------------------------------------------------
TOTAL MACHINERY 1,584
============================================================================
MANUFACTURING [0.8%]
Tyco International 16,550 729
=============================================================================
MEDICAL PRODUCTS & SERVICES [2.8%]
Baxter International 9,787 566
Becton Dickinson 3,267 280
Eli Lilly 1,506 78
Genzyme General Division* 3,888 290
Intuitive Surgical* 740 240
Stryker 7,650 497
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
WellPoint* 8,112 $ 358
Zimmer Holdings* 3,670 286
-----------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 2,595
=============================================================================
METALS & MINING [0.6%]
Barrick Gold 11,600 504
=============================================================================
MISCELLANEOUS MANUFACTURING [0.8%]
Covidien 12,750 564
Leggett & Platt 8,929 136
-----------------------------------------------------------------------------
TOTAL MISCELLANEOUS MANUFACTURING 700
=============================================================================
MULTI MEDIA [0.2%]
Walt Disney 5,187 163
=============================================================================
OFFICE FURNITURE & FIXTURES [3.5%]
3M 13,100 1,037
Activision* 7,120 194
Adobe Systems* 1,237 44
Microsoft 24,880 706
Oracle* 33,435 654
Symantec* 30,617 509
-----------------------------------------------------------------------------
TOTAL OFFICE FURNITURE & FIXTURES 3,144
=============================================================================
PAPER & RELATED PRODUCTS [0.5%]
International Paper 4,000 109
Packaging Corp of America 10,500 234
Sealed Air 5,000 126
-----------------------------------------------------------------------------
TOTAL PAPER & RELATED PRODUCTS 469
=============================================================================
PETROLEUM & FUEL PRODUCTS [13.4%]
Anadarko Petroleum 11,527 727
Apache 953 115
Cameron International* 7,670 319
Chesapeake Energy 14,278 659
ChevronTexaco 8,580 732
ConocoPhillips 15,408 1,174
Consol Energy 6,652 460
Devon Energy 1,166 122
Exxon Mobil 16,469 1,393
Hess 2,133 188
Marathon Oil 443 20
Nabors Industries* 11,400 385
National Oilwell Varco* 2,016 118
Occidental Petroleum 2,295 168
Peabody Energy 156 8
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 27
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Petroleo Brasileiro, ADR 5,980 $ 611
Range Resources 4,963 315
Royal Dutch Shell, Cl B 7,600 512
Southwestern Energy* 7,840 264
Spectra Energy 7,000 159
Sunoco 6,118 321
Transocean 3,577 484
Unit* 11,500 651
Valero Energy 10,136 498
Weatherford International* 7,860 570
Williams 21,410 706
XTO Energy 7,830 484
-----------------------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 12,163
=============================================================================
PRINTING & PUBLISHING [0.2%]
Gannett 7,160 208
=============================================================================
PROPERTY & CASUALTY INSURANCE [0.4%]
Fidelity National Financial, Cl A 18,500 339
=============================================================================
RAILROADS [0.1%]
CSX 1,336 75
=============================================================================
REAL ESTATE INVESTMENT TRUST [0.3%]
Apartment Investment & Management, Cl A 591 21
Host Hotels & Resorts 5,655 90
Public Storage 1,396 124
-----------------------------------------------------------------------------
TOTAL REAL ESTATE INVESTMENT TRUST 235
=============================================================================
REAL ESTATE MANAGEMENT & DEVELOPMENT [0.6%]
Brookfield Asset Management, Cl A 21,200 569
=============================================================================
RETAIL [5.4%]
Abercrombie & Fitch, Cl A 53 4
Best Buy 13,534 561
CVS Caremark 6,810 276
Gap 5,551 109
Guess? 4,790 194
Home Depot 11,195 313
Kohl's* 7,400 318
Kroger 15,020 382
Lowe's 20,938 480
McDonald's 2,158 120
Nordstrom 5,960 194
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
Staples 18,450 $ 408
Target 737 37
TJX 5,630 186
Urban Outfitters* 5,780 181
Walgreen 4,500 172
Wal-Mart Stores 19,128 1,008
-----------------------------------------------------------------------------
TOTAL RETAIL 4,943
=============================================================================
RUBBER & PLASTIC [0.1%]
Apollo Group, Cl A* 2,343 101
=============================================================================
SEMI CONDUCTORS [2.0%]
Applied Materials 41,670 813
Intel 17,267 366
MEMC Electronic Materials* 2,398 170
Microchip Technology 3,940 129
Micron Technology* 25,100 150
Novellus Systems* 2,112 44
Nvidia* 1,057 21
Texas Instruments 5,850 165
-----------------------------------------------------------------------------
TOTAL SEMI CONDUCTORS 1,858
=============================================================================
TELEPHONES & TELECOMMUNICATIONS [5.0%]
America Movil, ADR 7,310 466
AT&T 24,456 937
CenturyTel 1,027 34
Corning 26,513 638
Embarq 2,917 117
Millicom International Cellular* 2,570 243
Qwest Communications International 51,936 235
Sprint Nextel 36,713 246
Telegraph Norte Leste Participacoes, ADR 11,580 307
Verizon Communications 29,719 1,083
Windstream 20,000 239
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATIONS 4,545
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 28
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
TRANSPORTATION SERVICES [1.2%]
Expeditors International Washington 3,880 $ 175
FedEx 6,767 627
Norfolk Southern 40 2
Union Pacific 2,072 260
-----------------------------------------------------------------------------
TOTAL TRANSPORTATION SERVICES 1,064
=============================================================================
TRUCKING [0.3%]
Ryder System 3,821 233
=============================================================================
WASTE MANAGEMENT SERVICES [0.3%]
Allied Waste Industries* 18,919 204
Waste Management 2,489 84
-----------------------------------------------------------------------------
TOTAL WASTE MANAGEMENT SERVICES 288
=============================================================================
WEB PORTALS/ISP [0.7%]
Akamai Technologies* 3,000 85
Amazon.Com* 911 65
Expedia* 661 14
Google, Cl A* 577 254
Juniper Networks* 1,879 47
VeriSign* 5,193 173
-----------------------------------------------------------------------------
TOTAL WEB PORTALS/ISP 638
=============================================================================
WHOLESALE [0.0%]
Dean Foods 1,471 30
-----------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $92,265) 88,878
==========================================================================
CASH EQUIVALENT [2.8%]
AIM STIT Treasury Portfolio,
1.24%** 2,537,535 2,538
-----------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(Cost $2,538) 2,538
==========================================================================
TOTAL INVESTMENTS [100.4%]
(Cost $94,803) $ 91,416
==========================================================================
DESCRIPTION
- --------------------------------------------------------------------------------
PERCENTAGES ARE BASED ON NET ASSETS OF $ 91,009,872.
* NON-INCOME PRODUCING SECURITY
** THE RATE SHOWN REPRESENTS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2008.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
ISP -- INTERNET SERVICE PROVIDER
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 29
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA SOCIALLY RESPONSIBLE EQUITY FUND
SECTOR WEIGHTINGS*:
[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]
Financials 18.6%
HealthCare 13.1%
Energy 12.7%
Information Technology 9.4%
Industrials 9.1%
Consumer Staples 8.9%
Materials 7.9%
Consumer Discretionary 6.6%
Cash Equivalents 6.4%
Utilities 5.5%
Telecommunication Services 1.8%
* Percentages based on total investments.
- --------------------------------------------------------------------------------
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMON STOCK [93.5%]
ADVERTISING [1.5%]
CBS, Cl B 37,000 $ 817
=============================================================================
AUTOMOTIVE [2.7%]
Honda Motor, ADR 50,000 1,441
=============================================================================
BANKS [3.6%]
International Bancshares 84,057 1,898
=============================================================================
BIOMEDICAL RESEARCH & PRODUCTS [1.9%]
Quest Diagnostics 22,500 1,019
=============================================================================
BROADCASTING & CABLE [2.9%]
Motorola 66,000 614
Nokia, ADR 29,000 923
-----------------------------------------------------------------------------
TOTAL BROADCASTING & CABLE 1,537
=============================================================================
BUSINESS SERVICES [2.8%]
Xerox 100,400 1,503
=============================================================================
CHEMICALS [4.7%]
EI Du Pont de Nemours 23,000 1,075
Rohm & Haas 26,100 1,412
-----------------------------------------------------------------------------
TOTAL CHEMICALS 2,487
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
COMMUNICATION & MEDIA [2.3%]
Time Warner 88,500 $ 1,241
=============================================================================
COMPUTER SYSTEM DESIGN & SERVICES [1.8%]
Sun Microsystems* 61,000 947
=============================================================================
CONSUMER PRODUCTS & SERVICES [2.9%]
Kimberly Clark 24,000 1,549
=============================================================================
DRUGS [6.4%]
Abbott Laboratories 18,300 1,009
Johnson & Johnson 27,000 1,751
Schering Plough 44,600 643
-----------------------------------------------------------------------------
TOTAL DRUGS 3,403
=============================================================================
ELECTRICAL SERVICES [4.4%]
Emerson Electric 19,000 978
Portland General Electric 61,000 1,375
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,353
=============================================================================
ENERGY [2.9%]
Atmos Energy 59,500 1,517
=============================================================================
FINANCIAL SERVICES [3.9%]
Nasdaq Stock Market* 53,500 2,068
=============================================================================
FOOD, BEVERAGE & TOBACCO [3.1%]
Supervalu 54,000 1,619
=============================================================================
HEALTHCARE PRODUCTS & SERVICES [2.8%]
Applera - Applied Biosystems Group 16,000 526
Cardinal Health 18,000 945
-----------------------------------------------------------------------------
TOTAL HEALTHCARE PRODUCTS & SERVICES 1,471
=============================================================================
INSURANCE [4.7%]
Marsh & McLennan 67,000 1,631
Mercury General 19,200 851
-----------------------------------------------------------------------------
TOTAL INSURANCE 2,482
=============================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 30
schedule of investments
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA SOCIALLY RESPONSIBLE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
MANUFACTURING [3.4%]
Tyco International 40,375 $ 1,779
=============================================================================
METALS & MINING [1.7%]
Worthington Industries 52,000 877
=============================================================================
MISCELLANEOUS MANUFACTURING [1.9%]
Covidien 23,375 1,034
=============================================================================
OFFICE EQUIPMENT & SUPPLIES [1.9%]
Avery Dennison 21,000 1,034
=============================================================================
OFFICE FURNITURE & FIXTURES [2.0%]
3M 13,300 1,053
=============================================================================
PAPER & RELATED PRODUCTS [1.6%]
Packaging Corp of America 37,000 826
=============================================================================
PETROLEUM & FUEL PRODUCTS [12.7%]
Chesapeake Energy 46,000 2,123
Patterson UTI Energy 74,000 1,937
Spectra Energy 22,000 500
Unit * 38,000 2,153
-----------------------------------------------------------------------------
TOTAL PETROLEUM & FUEL PRODUCTS 6,713
=============================================================================
PROPERTY & CASUALTY INSURANCE [2.5%]
Fidelity National Financial, Cl A 71,500 1,311
=============================================================================
REAL ESTATE INVESTMENT TRUST [1.1%]
AMB Property 11,000 599
=============================================================================
REAL ESTATE MANAGEMENT & DEVELOPMENT [2.7%]
Brookfield Asset Management, Cl A 54,000 1,449
=============================================================================
SEMI CONDUCTORS [1.9%]
Intel 47,500 1,006
=============================================================================
TELEPHONES & TELECOMMUNICATIONS [1.8%]
Windstream 79,000 944
=============================================================================
DESCRIPTION SHARES VALUE (000)
- --------------------------------------------------------------------------------
WHOLESALE [3.0%]
Kraft Foods, Cl A 50,500 $ 1,566
-----------------------------------------------------------------------------
TOTAL COMMON STOCK
(Cost $50,060) 49,543
=========================================================================
CASH EQUIVALENTS [6.4%]
AIM STIT Treasury Portfolio,
1.24% ** 3,361,513 3,362
Fidelity Institutional
Money Market Funds
Treasury Only Portfolio,
Cl I, 1.77% ** 26,431 26
-----------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(Cost $3,388) 3,388
=========================================================================
TOTAL INVESTMENTS [99.9%]
(Cost $53,448) $ 52,931
=========================================================================
PERCENTAGES ARE BASED ON NET ASSETS OF $52,994,489.
* NON INCOME PRODUCING SECURITY.
** THE RATE SHOWN REPRESENTS THE 7-DAY EFFECTIVE YIELD AS OF MARCH 31, 2008.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 31
This page intentionally left blank.
statements of assets and liabilities (000)
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA AHA AHA
Limited Full AHA Socially
Maturity Maturity AHA Diversified Responsible
Fixed Income Fixed Income Balanced Equity Equity
Fund Fund Fund Fund Fund
-------------------------------------------------------------------------
ASSETS:
Cost of securities $ 67,793 $ 43,947 $ 15,418 $ 94,803 $ 53,448
====================================================================================================================================
Investments in securities at value $ 68,994 $ 44,711 $ 15,033 $ 91,416 $ 52,931
Cash -- -- 1 2 --
Dividend and interest receivable 622 436 69 126 138
Receivable for capital shares sold 7 1 -- 12 117
Receivable for dividend tax reclaim -- -- 1 2 --
Receivable for investment securities sold -- -- -- 479 --
Prepaid Expenses 11 4 2 10 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 69,634 45,152 15,106 92,047 53,189
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Investment adviser fees payable 29 19 9 58 129
Administrative fees payable 3 2 1 3 2
Distribution fees payable 1 -- 1 5 33
Trustees fees payable -- -- -- -- --
Income distribution payable 35 30 -- -- --
Payable for capital shares redeemed 6 -- -- 1
Payable for investment securities
purchased -- 705 250 925 --
Other accrued expenses 27 30 11 45 31
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 101 786 272 1,037 195
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 69,533 $ 44,366 $ 14,834 $ 91,010 $ 52,994
====================================================================================================================================
NET ASSETS:
Paid-in Capital
(unlimited authorization --
$0.01 par value) $ 70,753 $ 43,870 $ 15,424 $ 97,238 $ 55,152
Undistributed (distributions in excess of)
net investment income (9) -- 6 17 47
Accumulated net realized loss
on investments (2,412) (268) (211) (2,858) (1,688)
Net unrealized appreciation (depreciation)
on investments 1,201 764 (385) (3,387) (517)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 69,533 $ 44,366 $ 14,834 $ 91,010 $ 52,994
====================================================================================================================================
Institutional Class Shares ($ Dollars):
Net Assets $ 69,104,850 $ 43,587,022 $ 14,833,952 $ 82,676,308 $ 52,234,066
Total shares outstanding at end of year 6,378,815 4,204,699 1,841,887 5,987,545 5,198,373
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 10.83 $ 10.37 $ 8.05 $ 13.81 $ 10.05
Class N Shares ($ Dollars):
Net Assets $ 427,799 $ 778,863 n/a $ 8,333,564 $ 760,423
Total shares outstanding at end of year 39,430 75,154 n/a 601,944 75,771
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 10.85 $ 10.36 n/a $ 13.84 $ 10.04
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 33
statements of operations (000)
FOR THE SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
AHA Limited Maturity Fixed AHA Full Maturity Fixed
Income Fund Income Fund
----------------------------------------------------
INVESTMENT INCOME:
Interest $ 1,329 $ 1,090
Dividends 10 9
Income from Securities Lending -- Net 6 5
Foreign taxes withheld -- --
- ------------------------------------------------------------------------------------------------------
Total Investment Income 1,345 1,104
- ------------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 146 109
Administration Fees 14 10
Trustees' Fees and Expenses 1 1
Distribution Expense -- Class N Shares 1 1
Transfer Agent Fees and Expenses 14 12
Reports to Shareholders 7 5
Registration Fees 4 2
Custodian Fees and Expenses 1 1
Legal Fees 1 1
Audit Fees (3) (2)
Insurance and Other Expenses 12 4
- ------------------------------------------------------------------------------------------------------
Total Expenses 198 144
- ------------------------------------------------------------------------------------------------------
Recovery of Investment Advisory Fees
Previously Waived(1) 23 --
Less Waiver of:
Transfer Agent Fees (2) (2)
- ------------------------------------------------------------------------------------------------------
Net Expenses 219 142
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,126 962
- ------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Investments 146 149
Change in Net Unrealized Appreciation
(Depreciation) on Investments 1,120 725
- ------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on Investments 1,266 874
- ------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 2,392 $ 1,836
======================================================================================================
(1) SEE NOTE 3 FOR ADVISORY FEES RECOVERED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 34
- --------------------------------------------------------------------------------
AHA Socially Responsible
AHA Balanced Fund AHA Diversified Equity Fund Equity Fund
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 165 $ 28 $ 26
Dividends 101 974 654
Income from Securities Lending -- Net 1 4 2
Foreign taxes withheld -- (4) (7)
- ----------------------------------------------------------------------------------------------------------------------------
Total Investment Income 267 1,002 675
- ----------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees 59 367 204
Administration Fees 4 23 13
Trustees' Fees and Expenses -- 1 1
Distribution Expense -- Class N Shares -- 12 1
Transfer Agent Fees and Expenses 6 36 17
Reports to Shareholders 2 11 5
Registration Fees 1 7 3
Custodian Fees and Expenses 1 4 2
Legal Fees -- 3 2
Audit Fees (2) (4) (5)
Insurance and Other Expenses 2 15 6
- ----------------------------------------------------------------------------------------------------------------------------
Total Expenses 73 475 249
- ----------------------------------------------------------------------------------------------------------------------------
Recovery of Investment Advisory Fees
Previously Waived(1) 7 25 52
Less Waiver of:
Transfer Agent Fees (1) (4) (2)
- ----------------------------------------------------------------------------------------------------------------------------
Net Expenses 79 18 50
- ----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 188 506 376
- ----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Investments (67) (700) (1,688)
Change in Net Unrealized Appreciation
(Depreciation) on Investments (1,190) (13,202) (5,850)
- ----------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain (Loss) on Investments (1,257) (13,902) (7,538)
- ----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ (1,069) $ (13,396) $ (7,162)
============================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 35
statements of changes in net assets (000)
FOR THE SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED) AND THE YEAR ENDED
SEPTEMBER 30, 2007
- --------------------------------------------------------------------------------
AHA LIMITED MATURITY AHA FULL MATURITY
FIXED INCOME FUND FIXED INCOME FUND
-------------------------------------------------------
2008 2007 2008 2007
- -------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 1,126 $ 1,854 $ 962 $ 1,631
Net Realized Gain (Loss) on Investments Sold 146 (98) 149 (5)
Change in Net Unrealized Appreciation
(Depreciation) on Investments 1,120 239 725 (11)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations 2,392 1,995 1,836 1,615
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to Shareholders from Net Investment Income:
INSTITUTIONAL CLASS (1,138) (1,846) (960) (1,618)
CLASS N (7) (11) (11) (8)
Distributions to Shareholders from Net Realized Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS N -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions to Shareholders (1,145) (1,857) (971) (1,626)
- -------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS:
FUND SHARE TRANSACTIONS: INSTITUTIONAL CLASS
Net Proceeds from Shares Sold 23,331 2,382 88 11,258
Reinvestment of Dividends 820 423 545 533
Cost of Shares Redeemed (652) (3,917) -- (82)
- -------------------------------------------------------------------------------------------------------------------
Total Fund Share Transactions Institutional Class 23,499 (1,112) 633 11,709
- -------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS: CLASS N
Net Proceeds from Shares Sold 307 95 549 88
Reinvestment of Dividends 7 11 7 8
Cost of Shares Redeemed (202) (155) (19) (6)
- -------------------------------------------------------------------------------------------------------------------
Total Fund Share Transactions Class N 112 (49) 537 90
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Contributions 23,611 (1,161) 1,170 11,799
===================================================================================================================
Total Increase (Decrease) in Net Assets 24,858 (1,023) 2,035 11,788
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 44,675 45,698 42,331 30,543
- -------------------------------------------------------------------------------------------------------------------
End of period* 69,533 44,675 44,366 42,331
===================================================================================================================
*Including Undistributed (Distributions in excess of)
Net Investment Income of $ (9) $ 10 $ -- $ 9
===================================================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 36
- --------------------------------------------------------------------------------
AHA BALANCED AHA DIVERSIFIED
FUND EQUITY FUND
--------------------------------------------------------------------
2008 2007 2008 2007
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 188 $ 416 $ 506 $ 1,065
Net Realized Gain (Loss) on Investments Sold (67) 1,759 (700) 13,160
Change in Net Unrealized Appreciation
(Depreciation) on Investments (1,190) (613) (13,202) (1,793)
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations (1,069) 1,562 (13,396) 12,432
- --------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to Shareholders from Net Investment Income:
INSTITUTIONAL CLASS (191) (425) (476) (987)
CLASS N -- -- (39) (77)
Distributions to Shareholders from Net Realized Gains:
INSTITUTIONAL CLASS (890) (2,125) (12,355) (8,054)
CLASS N -- -- (1,315) (860)
- --------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions to Shareholders (1,081) (2,550) (14,185) (9,978)
- --------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS:
FUND SHARE TRANSACTIONS: INSTITUTIONAL CLASS
Net Proceeds from Shares Sold -- -- 7,275 13,332
Reinvestment of Dividends 99 37 8,552 6,506
Cost of Shares Redeemed -- -- (10,431) (14,435)
- --------------------------------------------------------------------------------------------------------------------------------
Total Fund Share Transactions Institutional Class 99 37 5,396 5,403
- --------------------------------------------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS: CLASS N
Net Proceeds from Shares Sold -- -- 237 1,282
Reinvestment of Dividends -- -- 1,333 924
Cost of Shares Redeemed -- -- (1,007) (3,206)
- --------------------------------------------------------------------------------------------------------------------------------
Total Fund Share Transactions Class N -- -- 563 (1,000)
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Contributions 99 37 5,959 4,403
================================================================================================================================
Total Increase (Decrease) in Net Assets (2,051) (951) (21,622) 6,857
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 16,885 17,836 112,632 105,775
- --------------------------------------------------------------------------------------------------------------------------------
End of period* 14,834 16,885 91,010 112,632
================================================================================================================================
*Including Undistributed (Distributions in excess of)
Net Investment Income of $ 6 $ 9 $ 17 $ 26
================================================================================================================================
AHA Socially Responsible
Equity Fund
----------------------------------
2008 2007
- ----------------------------------------------------------------------------------------------
OPERATIONS:
Net Investment Income $ 376 $ 640
Net Realized Gain (Loss) on Investments Sold (1,688) 2,822
Change in Net Unrealized Appreciation
(Depreciation) on Investments (5,850) 3,077
- ----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations (7,162) 6,539
- ----------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to Shareholders from Net Investment Income:
INSTITUTIONAL CLASS (349) (623)
CLASS N (4) (6)
Distributions to Shareholders from Net Realized Gains:
INSTITUTIONAL CLASS (2,723) (654)
CLASS N (37) (5)
- ----------------------------------------------------------------------------------------------
Total Dividends and Distributions to Shareholders (3,113) (1,288)
- ----------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS:
FUND SHARE TRANSACTIONS: INSTITUTIONAL CLASS
Net Proceeds from Shares Sold 6,361 13,931
Reinvestment of Dividends 3,073 1,277
Cost of Shares Redeemed (3,543) (8,929)
- ----------------------------------------------------------------------------------------------
Total Fund Share Transactions Institutional Class 5,891 6,279
- ----------------------------------------------------------------------------------------------
FUND SHARE TRANSACTIONS: CLASS N
Net Proceeds from Shares Sold 165 542
Reinvestment of Dividends 41 11
Cost of Shares Redeemed (59) (136)
- ----------------------------------------------------------------------------------------------
Total Fund Share Transactions Class N 147 417
- ----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from
Capital Share Contributions 6,038 6,696
==============================================================================================
Total Increase (Decrease) in Net Assets (4,237) 11,947
- ----------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period 57,231 45,284
- ----------------------------------------------------------------------------------------------
End of period* 52,994 57,231
==============================================================================================
*Including Undistributed (Distributions in excess of)
Net Investment Income of $ 47 $ 24
==============================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 37
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2008 (UNAUDITED) AND THE YEAR ENDED
SEPTEMBER 30, (UNLESS OTHERWISE INDICATED)
- --------------------------------------------------------------------------------
NET
NET REALIZED AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS (LOSSES) FROM NET FROM VALUE
BEGINNING INVESTMENT ON INVESTMENT REALIZED END TOTAL
OF PERIOD INCOME(1)(3) INVESTMENTS(1)(3) INCOME GAINS OF PERIOD RETURN
- ------------------------------------------------------------------------------------------------------------------------
AHA Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on December 22,1988)
2008* $ 10.59 $ 0.21 $ 0.24 $ (0.21) $ -- $ 10.83 4.28%(6)
2007 10.56 0.45 0.03 (0.45) -- 10.59 4.63
2006^ 10.57 0.34 0.02 (0.37) -- 10.56 3.49
For the period July 1, through September 30,
2005+ 10.61 0.06 (0.04) (0.06) -- 10.57 0.20(6)
For the years ended June 30,
2005 10.68 0.22 (0.06) (0.22)(5) (0.01) 10.61 1.53
2004 10.86 0.18 (0.18) (0.18) -- 10.68 (0.05)
2003 10.65 0.28 0.21 (0.28) -- 10.86 4.65
Class N (commenced operations on October 22, 2004)
2008* $ 10.61 $ 0.20 $ 0.24 $ (0.20) $ -- $ 10.85 4.15%(6)
2007 10.57 0.42 0.04 (0.42) -- 10.61 4.47
2006^ 10.58 0.30 0.03 (0.34) -- 10.57 3.17
For the period July 1, through September 30,
2005+ 10.62 0.05 (0.04) (0.05) -- 10.58 0.13(6)
For the period October 22, 2004 through June 30,
2005 10.77 0.14 (0.13) (0.15)(5) (0.01) 10.62 0.12(6)
- ------------------------------------------------------------------------------------------------------------------------
AHA Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2008* $ 10.16 $ 0.23 $ 0.21 $ (0.23) $ -- $ 10.37 4.37%(6)
2007 10.16 0.45 -- (0.45) -- 10.16 4.48
2006^^ 10.35 0.43 (0.13) (0.43) (0.06) 10.16 3.03
For the period July 1, through September 30,
2005+ 10.50 0.09 (0.15) (0.09) -- 10.35 (0.57)(6)
For the years ended June 30,
2005 10.39 0.38 0.20 (0.38) (0.09) 10.50 5.72
2004 10.87 0.36(8) (0.36) (0.39) (0.09) 10.39 0.08
2003 10.34 0.49 0.53 (0.49) -- 10.87 10.06
Class N (commenced operations on May 11, 2004)
2008* $ 10.16 $ 0.22 $ 0.20 $ (0.22) $ -- $ 10.36 4.15%(6)
2007 10.16 0.42 -- (0.42) -- 10.16 4.23
2006^^ 10.36 0.40 (0.13) (0.41) (0.06) 10.16 2.67
For the period July 1, through September 30,
2005+ 10.50 0.08 (0.14) (0.08) -- 10.36 (0.54)(6)
For the year ended June 30,
2005 10.39 0.34 0.22 (0.36) (0.09) 10.50 5.46
For the period May 11, through June 30,
2004 10.32 0.04 0.09 (0.06) -- 10.39 1.29(6)
- ------------------------------------------------------------------------------------------------------------------------
AHA Balanced Fund
Institutional Class (commenced operations on October 20, 1988)
2008* $ 9.23 $ 0.10 $(0.69) $ (0.10) $ (0.49) $ 8.05 (6.73)%(6)
2007 9.77 0.23 0.62 (0.23) (1.16) 9.23 9.47
2006^^^ 9.76 0.18 0.59 (0.18) (0.58) 9.77 8.32
For the period July 1, through September 30,
2005+ 9.62 0.04 0.14 (0.04) -- 9.76 1.87(6)
For the years ended June 30,
2005 8.98 0.16 0.64 (0.16) -- 9.62 8.97
2004 8.03 0.10(8) 0.97 (0.12) -- 8.98 13.41
2003 8.03 0.11 -- (0.11) -- 8.03 1.40
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS RATIO
NET BEFORE AFTER OF NET
ASSETS WAIVERS WAIVERS INCOME
END & $ INVESTMENT PORTFOLIO
OF PERIOD RECOVERED RECOVERED TO AVERAGE TURNOVER
(000) FEES(2)(3) FEES(2)(3) NET ASSETS(2)(3) RATE(4)
- -------------------------------------------------------------------------------------------------------------
AHA Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on December 22,1988)
2008* $ 69,105 0.68% 0.75% 3.85% 23.64%
2007 44,365 0.77 0.76 4.25 75.71
2006^ 45,340 0.94 0.75 3.24 86.31
For the period July 1, through September 30,
2005+ 112,381 0.88(7) 0.86(7) 2.20(7) 4.33(6)
For the years ended June 30,
2005 128,501 0.79 0.78 2.01 109.44
2004 159,949 0.73 0.73 1.65 97.66
2003 96,605 0.83 0.85 2.58 N/A
Class N (commenced operations on October 22, 2004)
2008* $ 428 0.93% 0.99% 3.59% 23.64%
2007 310 1.02 1.00 3.99 75.71
2006^ 358 1.18 1.00 2.88 86.31
For the period July 1, through September 30,
2005+ 822 1.11(7) 1.10(7) 1.95(7) 4.33(6)
For the period October 22, 2004 through June 30,
2005 1,070 1.07(7) 1.03(7) 1.75(7) 109.44
- -------------------------------------------------------------------------------------------------------------
AHA Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2008* $ 43,587 0.67% 0.65% 4.44% 14.67%
2007 42,096 0.73 0.79 4.48 54.97
2006^^ 30,398 0.87 0.80 4.20 91.35
For the period July 1, through September 30,
2005+ 31,764 0.83(7) 1.00(7) 3.37(7) 17.47(6)
For the years ended June 30,
2005 31,960 0.95 1.00 3.58 144.07
2004 28,958 0.98 1.00 3.40 302.49
2003 31,264 1.29 1.00 4.51 N/A
Class N (commenced operations on May 11, 2004)
2008* $ 779 0.91% 0.90% 4.12% 14.67%
2007 235 0.99 1.04 4.23 54.97
2006^^ 145 1.12 1.05 3.95 91.35
For the period July 1, through September 30,
2005+ 134 1.08(7) 1.25(7) 3.12(7) 17.47(6)
For the year ended June 30,
2005 134 1.20 1.25 3.33 144.07
For the period May 11, through June 30,
2004 104 1.15(7) 1.25(7) 3.27(7) 302.49(6)
- -------------------------------------------------------------------------------------------------------------
AHA Balanced Fund
Institutional Class (commenced operations on October 20, 1988)
2008* $ 14,834 0.92% 1.00% 2.37% 41.93%
2007 16,885 1.00 1.00 2.45 127.95
2006^^^ 17,836 1.11 1.00 1.83 73.58
For the period July 1, through September 30,
2005+ 18,352 1.10(7) 0.98(7) 1.54(7) 13.53(6)
For the years ended June 30,
2005 18,088 1.25 1.20 1.69 98.60
2004 16,930 1.31 1.50 1.14 69.85
2003 18,615 1.81 1.50 1.43 N/A
+ THE FUND'S FISCAL AND TAX YEAR-END CHANGED FROM JUNE 30 TO SEPTEMBER 30.
^ ON OCTOBER 3, 2005, THE LIMITED MATURITY FIXED INCOME FUND WAS REORGANIZED
INTO THE AHA LIMITED MATURITY FIXED INCOME FUND, A NEWLY ESTABLISHED
SERIES OF THE CNI CHARTER FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL
STATEMENTS FOR MORE INFORMATION.
^^ ON OCTOBER 3, 2005, THE FULL MATURITY FIXED INCOME FUND WAS REORGANIZED
INTO THE AHA FULL MATURITY FIXED INCOME FUND, A NEWLY ESTABLISHED SERIES
OF THE CNI CHARTER FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR
MORE INFORMATION.
^^^ ON OCTOBER 3, 2005, THE BALANCED FUND WAS REORGANIZED INTO THE AHA
BALANCED FUND, A NEWLY ESTABLISHED SERIES OF THE CNI CHARTER FUNDS. SEE
NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR MORE INFORMATION.
* FOR THE SIX MONTHS ENDED MARCH 31, 2008.
(1) INFORMATION PRESENTED RELATES TO A SHARE OF CAPITAL STOCK OUTSTANDING FOR
THE ENTIRE PERIOD.
(2) RATIOS INCLUDE ALL MANAGEMENT FEES AND EXPENSES.
(3) FOR THE PERIOD FROM NOVEMBER 1, 2001 THROUGH JUNE 30, 2003, THE FUND
INVESTED SUBSTANTIALLY ALL OF ITS ASSETS IN A SEPARATE SERIES OF A MUTUAL
FUND CALLED THE CCM ADVISORS FUNDS (THE "MASTER PORTFOLIO"), AND AS A
RESULT, THE PER SHARE AMOUNTS AND PERCENTAGES REFLECT INCOME AND EXPENSES
ASSUMING INCLUSION OF THE FUND'S PROPORTIONATE SHARE OF INCOME AND
EXPENSES IN THE MASTER PORTFOLIO. THE MASTER PORTFOLIO HAD SUBSTANTIALLY
SIMILAR OBJECTIVES, STRATEGIES AND POLICIES AS THE FUND.
(4) CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT DISTINGUISHING
BETWEEN THE CLASSES OF SHARES ISSUED. FOR PERIODS LESS THAN 1 YEAR,
PORTFOLIO TURNOVER RATE HAS NOT BEEN ANNUALIZED.
(5) INCLUDES A TAX RETURN OF CAPITAL WHICH IS LESS THAN $0.01 PER SHARE, FOR
THE FUND FOR THE YEAR ENDED JUNE 30, 2005.
(6) NOT ANNUALIZED.
(7) ANNUALIZED.
(8) NET INVESTMENT INCOME PER SHARE IS CALCULATED USING ENDING BALANCES PRIOR
TO CONSIDERATION OF ADJUSTMENTS FOR PERMANENT BOOK AND TAX DIFFERENCES.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 38
- --------------------------------------------------------------------------------
NET
NET REALIZED AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS (LOSSES) FROM NET FROM VALUE
BEGINNING INVESTMENT ON INVESTMENT REALIZED END TOTAL
OF PERIOD INCOME(3) INVESTMENTS(3) INCOME GAINS OF PERIOD RETURN
- -------------------------------------------------------------------------------------------------------------------
AHA Diversified Equity Fund
Institutional Class (commenced operations on October 20, 1988)
2008* $18.48 $ 0.08 $(2.24) $(0.06) $(2.45) $13.81 (12.87)%(5)
2007 18.17 0.18 1.89 (0.18) (1.58) 18.48 11.93
2006^ 17.42 0.15 1.55 (0.15) (0.80) 18.17 10.16
For the period July 1, through September 30,
2005+ 16.79 0.02 0.63 (0.02) -- 17.42 3.88(5)
For the years ended June 30,
2005 15.39 0.13 1.40 (0.13) -- 16.79 9.95
2004 12.74 0.10 2.65 (0.10) -- 15.39 21.60
2003 13.08 0.08(3) (0.34)(3) (0.08) -- 12.74 (1.98)
Class N (commenced operations on December 30, 2002)
2008* $18.52 $ 0.06 $(2.23) $(0.06) $(2.45) $13.84 (13.01)%(5)
2007 18.21 0.13(8) 1.89 (0.13) (1.58) 18.52 11.62
2006^ 17.46 0.11 1.55 (0.11) (0.80) 18.21 9.87
For the period July 1, through September 30,
2005+ 16.83 0.01 0.63 (0.01) -- 17.46 3.81(5)
For the years ended June 30,
2005 15.43 0.09 1.40 (0.09) -- 16.83 9.66
2004 12.75 0.06 2.65 (0.03) -- 15.43 21.24
For the period December 30, 2002, through June 30,
2003 11.48 0.03(7) 1.26(7) (0.02) -- 12.75 11.26(5)
- -------------------------------------------------------------------------------------------------------------------
AHA Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2008* $12.12 $ 0.07 $(1.50) $(0.07) $(0.57) $10.05 (12.19)%(5)
2007 10.91 0.14 1.36 (0.14) (0.15) 12.12 13.89
2006^^ 10.28 0.12 0.67 (0.11) (0.05) 10.91 7.69
For the period July 1, through September 30,
2005+ 9.70 0.02 0.58 (0.02) -- 10.28 6.20(5)
For the period January 3, through June 30,
2005 10.00 0.05 (0.30) (0.05) -- 9.70 (2.48)(5)
Class N (commenced operations on August 12, 2005)
2008* $12.11 $ 0.06 $(1.50) $(0.06) $(0.57) $10.04 (12.30)%(5)
2007 10.90 0.12 1.36 (0.11) (0.16) 12.11 13.64
2006^^ 10.28 0.09 0.67 (0.09) (0.05) 10.90 7.40
For the period August 12, through September 30,
2005 10.17 0.01 0.12 (0.02) -- 10.28 1.27(5)
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS RATIO
NET BEFORE AFTER OF NET
ASSETS WAIVERS WAIVERS INVESTMENT
END AND AND INCOME PORTFOLIO
OF PERIOD RECOVERED RECOVERED TO AVERAGE TURNOVER
(000) FEES(2)(3) FEES(2)(3) NET ASSETS(2)(3) RATE(4)
- --------------------------------------------------------------------------------------------------
AHA Diversified Equity Fund
Institutional Class (commenced operations on October 20, 1988)
2008* $ 82,676 0.95% 0.99% 1.04% 90.58%
2007 102,232 0.99 1.02 0.98 115.99
2006^ 94,653 1.09 1.01 0.87 99.16
For the period July 1, through September 30,
2005+ 81,447 1.08(6) 1.13(6) 0.46(6) 20.08(5)
For the years ended June 30,
2005 81,510 1.07 1.05 0.78 128.37
2004 68,068 1.02 1.02 0.67 97.51
2003 55,564 1.18(3) 1.18(3) 0.61(3) N/A
Class N (commenced operations on December 30, 2002)
2008* $ 8,334 1.20% 1.24% 0.80% 90.58%
2007 10,400 1.24 1.27 0.73 115.99
2006^ 11,122 1.34 1.26 0.62 99.16
For the period July 1, through September 30,
2005+ 9,451 1.34(6) 1.38(6) 0.20(6) 20.08(5)
For the years ended June 30,
2005 8,842 1.32 1.30 0.53 128.37
2004 7,392 1.27 1.27 0.42 97.51
For the period December 30, 2002, through June 30,
2003 6,454 1.45(6)(7) 1.45(6)(7) 0.48(6)(7) N/A
- --------------------------------------------------------------------------------------------------
AHA Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2008* $ 52,234 0.92% 1.10% 1.38% 19.27%
2007 56,490 1.00 0.94 1.19 29.38
2006^^ 45,003 1.12 1.04 1.10 28.57
For the period July 1, through September 30,
2005+ 21,795 1.24(6) 1.15(6) 0.90(6) 6.89(5)
For the period January 3, through June 30,
2005 20,510 1.16(6) 1.12(6) 1.43(6) 47.56(5)
Class N (commenced operations on August 12, 2005)
2008* $ 760 1.17% 1.35% 1.13% 19.27%
2007 741 1.25 1.19 0.94 29.38
2006^^ 281 1.37 1.29 0.80 28.57
For the period August 12, through September 30,
2005 15 1.69(6) 1.43(6) 0.74(6) 6.89(5)
+ THE FUND'S FISCAL AND TAX YEAR-END CHANGED FROM JUNE 30 TO SEPTEMBER 30.
^ ON OCTOBER 3, 2005, THE DIVERSIFIED EQUITY FUND WAS REORGANIZED INTO THE
AHA DIVERSIFIED EQUITY FUND, A NEWLY ESTABLISHED SERIES OF THE CNI CHARTER
FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR MORE INFORMATION.
^^ ON OCTOBER 3, 2005, THE SOCIALLY RESPONSIBLE EQUITY FUND WAS REORGANIZED
INTO THE AHA SOCIALLY RESPONSIBLE EQUITY FUND, A NEWLY ESTABLISHED SERIES
OF THE CNI CHARTER FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR
MORE INFORMATION.
* FOR THE SIX MONTHS ENDED MARCH 31, 2008.
(1) INFORMATION PRESENTED RELATES TO A SHARE OF CAPITAL STOCK OUTSTANDING FOR
THE ENTIRE PERIOD.
(2) RATIOS INCLUDE ALL MANAGEMENT FEES AND EXPENSES.
(3) FOR THE PERIOD FROM NOVEMBER 1, 2001 THROUGH JUNE 30, 2003, THE FUND
INVESTED SUBSTANTIALLY ALL OF ITS ASSETS IN A SEPARATE SERIES OF A MUTUAL
FUND CALLED THE CCM ADVISORS FUNDS (THE "MASTER PORTFOLIO"), AND AS A
RESULT, THE PER SHARE AMOUNTS AND PERCENTAGES REFLECT INCOME AND EXPENSES
ASSUMING INCLUSION OF THE FUND'S PROPORTIONATE SHARE OF INCOME AND
EXPENSES IN THE MASTER PORTFOLIO. THE MASTER PORTFOLIO HAD SUBSTANTIALLY
SIMILAR OBJECTIVES, STRATEGIES AND POLICIES AS THE FUND.
(4) CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT DISTINGUISHING
BETWEEN THE CLASSES OF SHARES ISSUED. FOR PERIODS LESS THAN 1 YEAR,
PORTFOLIO TURNOVER RATE HAS NOT BEEN ANNUALIZED.
(5) NOT ANNUALIZED.
(6) ANNUALIZED.
(7) FOR THE PERIOD FROM DECEMBER 30, 2002 THROUGH JUNE 30, 2003, THE PER SHARE
AMOUNTS AND PERCENTAGES REFLECT INCOME AND EXPENSES ASSUMING INCLUSION OF
THE FUND'S PROPORTIONATE SHARE OF THE INCOME AND EXPENSES OF ITS MASTER
PORTFOLIO.
(8) PER SHARE CALCULATIONS ARE BASED ON THE AVERAGE SHARES OUTSTANDING
THROUGHOUT THE PERIOD.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 39
notes to financial statements
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
The AHA Investment Funds (the "AHA Funds") are series of CNI Charter Funds (the
"Trust"), which is registered as an open-end management investment company under
the Investment Company Act of 1940. The Trust was organized as a business trust
under the laws of Delaware on October 28, 1996. Each of the AHA Funds commenced
operations on October 3, 2005, the effective date of the reorganization of each
corresponding series (each a "Predecessor Fund" and collectively the
"Predecessor Funds") of AHA Investment Funds, Inc. (the "AHA Company"), a
registered investment company organized on March 14, 1988 under the laws of
Maryland. On May 17, 2005, the Board of Directors of the AHA Company approved
the reorganization of the Predecessor Funds into the newly established
corresponding AHA Fund series of the Trust.
The AHA Funds currently offer the following series of shares: the AHA Limited
Maturity Fixed Income Fund (the "Limited Maturity Fund"), the AHA Full Maturity
Fixed Income Fund (the "Full Maturity Fund"), the AHA Balanced Fund (the
"Balanced Fund"), the AHA Diversified Equity Fund (the "Diversified Fund"), and
the AHA Socially Responsible Equity Fund (the "Socially Responsible Fund") (each
a "Fund" and, collectively, the "Funds"). The shares of common stock of the
Funds are divided into two classes: Class N Shares and Institutional Class
Shares. As of March 31, 2008, only the Institutional Class Shares of the Funds
and the Class N Shares of the Limited Maturity Fund, the Full Maturity Fund, the
Diversified Fund, and the Socially Responsible Fund had commenced operations.
Effective as of the commencement of business on October 17, 2007, the
designation of the Class A shares of Limited Maturity Fund, Full Maturity Fund,
Diversified Equity Fund and Socially Responsible Fund was changed to Class N.
There were no changes to the rights, fees or expenses of the Class A shares or
services provided to Class A shareholders in connection with the change in
designation to Class N.
Expenses related to the reorganization and reimbursements to the Adviser for
reorganization related expenses were incurred and paid by the Funds. These
amounts are subject to recapture within the next three fiscal years.
2. SIGNIFICANT ACCOUNTING POLICIES
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 amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
SECURITY VALUATION - Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price is used. If
available, debt securities are priced based upon valuations provided by
independent, third-party pricing agents. Such values generally reflect the last
reported sales price if the security is actively traded. The third-party pricing
agents may also value debt securities at an evaluated bid price by employing
methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value for
such securities. Debt obligations with remaining maturities of 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 values; 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
AHA INVESTMENT FUNDS | PAGE 40
- --------------------------------------------------------------------------------
determine the value after taking into consideration relevant information
reasonably available to the Committee. The Funds held no fair valued securities
as of March 31, 2008.
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.
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, be 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, be 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.
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 the class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective classes on the basis of relative net asset value each day.
FUND DISTRIBUTIONS - The Limited Maturity Fund and the Full Maturity Fund
declare and pay income dividends from net investment income monthly.
In the Balanced Fund, the Diversified Fund and the Socially Responsible Fund,
dividends from net investment income are declared and paid quarterly.
Distributions from net realized capital gains are distributed to shareholders at
least annually.
3. INVESTMENT ADVISER AND SUB-ADVISER AGREEMENTS
The Funds have an Investment Management Agreement dated October 1, 2005 (the
"Agreement") with CCM Advisors, LLC (the "Adviser"), an affiliate of City
National Asset Management, Inc. ("CNAM, Inc."), with which certain officers and
trustees of the Funds are affiliated, to furnish investment advisory services to
the Funds. Under the terms of the Agreement, the Funds compensate the Adviser
for its management services at the annual rate of 0.50% of each Fund's average
daily net assets for the Limited Maturity Fund and the Full Maturity Fund, and
an annual rate of 0.75% of each Fund's average daily net assets for the Balanced
Fund, Diversified Fund and the Socially Responsible Fund. Effective through
September 30, 2006, the Adviser had contractually agreed to pay all operating
expenses in excess of the annual rates presented below as applied to each Fund's
average daily net assets.
Expense Cap (as a % of average daily net assets)
Limited Full Socially
Maturity Maturity Balanced Diversified Responsible
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------
Institutional Class 0.75% 0.80% 1.00% 1.01% 1.04%
Class A 1.00% 1.05% N/A 1.26% 1.29%
- --------------------------------------------------------------------------------
Effective November 1, 2006, the Adviser has contractually agreed to pay all
operating expenses in excess of the annual rates presented below as applied to
each Fund's average daily net assets.
Expense Cap (as a % of average daily net assets)
Limited Full Socially
Maturity Maturity Balanced Diversified Responsible
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------
Institutional Class 1.00% 1.00% 1.00% 1.25% 1.25%
Class N 1.25% 1.25% N/A 1.50% 1.50%
- --------------------------------------------------------------------------------
Any fee reductions or expense reimbursements may be repaid to the Adviser within
three years after occurrence, subject to certain restrictions and only if such
repayments do not cause the Funds' expense ratios, at the time of repayment, to
exceed the amounts shown in the preceding table.
During the six months ended March 31, 2008, the Board of Trustees approved the
reimbursement of previously waived fees by the Adviser in the amount of $22,959,
$7,368, $25,460 and $51,812 for the Limited Maturity Fund, the Balanced Fund,
the Diversified Fund and the Socially Responsible Fund, respectively.
AHA INVESTMENT FUNDS | PAGE 41
notes to financial statements
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
As of March 31, 2008, 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
- --------------------------------------------------------------------------------
Limited Maturity Fund $ 128 2009
3 2010
Balanced Fund 19 2009
18 2010
- --------------------------------------------------------------------------------
THE PATTERSON CAPITAL CORPORATION and CNAM, INC. act as the sub-advisers on
behalf of the Limited Maturity Fund and are paid by the Adviser.
ROBERT W. BAIRD & CO., INCORPORATED and BOYD WATTERSON ASSET MANAGEMENT, LLC act
as sub-advisers on behalf of the AHA Full Maturity Fund and are paid by the
Adviser.
ROBERT W. BAIRD & CO., INCORPORATED and FREEMAN ASSOCIATES INVESTMENT MANAGEMENT
LLC act as sub-advisers on behalf of the Balanced Fund and are paid by the
Adviser.
FREEMAN ASSOCIATES INVESTMENT MANAGEMENT, LLC act as sub-advisers on behalf of
the Diversified Fund and are paid by the Adviser. Effective February 29, 2008,
TURNER INVESTMENT PARTNERS, INC. commenced acting as sub-adviser for a portion
of the Diversified Fund and is paid by the Adviser.
SKBA CAPITAL MANAGEMENT, LLC acts as the sub-adviser on behalf of the Socially
Responsible Fund and is paid by the Adviser.
4. ADMINISTRATION, TRANSFER AGENT AND DISTRIBUTION 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 AHA Fund's administrator. Effective with the
reorganization into the CNI Charter Funds on October 3, 2005, under the terms of
the Agreement dated April 1, 1999, as amended, the Administrator is entitled to
receive an annual fee of 0.065% of aggregate average daily net assets of the
Trust not exceeding $2.5 billion, 0.045% of aggregate average daily net assets
of the Trust exceeding $2.5 billion but not exceeding $5 billion, 0.025% of
aggregate average daily net assets of the Trust exceeding $5 billion, but not
exceeding $7.5 billion, and 0.02% of aggregate average net assets of the Trust
exceeding $7.5 billion.
The AHA Funds have adopted a Rule 12b-1 Distribution Plan ("the Plan") with
respect to Class N 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 0.25% of the average
daily net assets of the Class N Shares of each Fund.
SEI Investments Management Corporation 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 sub-transfer agent for the AHA Funds
whereby it provides services at an annual rate of $14,000 per share class.
U.S. Bank, N.A. (the "Custodian") serves as custodian for the Trust. The
Custodian plays no role in determining the investment policies of the AHA Funds
or which securities are to be purchased or sold by the AHA Funds.
Certain officers of the Trust are also officers of the Adviser, CNAM, Inc. or
the Administrator. Such officers are paid no fees by the Trust or the AHA Funds
for serving as officers of the Funds.
5. FEDERAL INCOME TAXES
It is each Fund's policy to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code and the Funds intend to
distribute investment company net taxable income and net capital gains to
share-holders. Therefore, no Federal income tax provision is 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.
AHA INVESTMENT FUNDS | PAGE 42
- --------------------------------------------------------------------------------
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. As a result, net investment income (loss) and net realized
gain (loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. These book/tax differences
may be temporary or permanent. To the extent these differences are permanent in
nature, they are charged or credited to paid-in-capital, undistributed net
investment income (loss), or accumulated net realized gain (loss), as
appropriate, in the period that the differences arise.
The tax character of dividends and distributions declared during the periods
ended September 30, 2007 and September 30, 2006 are shown below (000s):
Ordinary Long-term
Income Capital Gain Total
Fund (000) (000) (000)
- --------------------------------------------------------------------------------
Limited Maturity Fund
September 2007 $ 1,857 $ -- $ 1,857
September 2006 2,460 -- 2,460
Full Maturity Fund
September 2007 1,626 -- 1,626
September 2006 1,394 85 1,479
Balanced Fund
September 2007 997 1,553 2,550
September 2006 635 787 1,422
Diversified Fund
September 2007 3,146 6,832 9,978
September 2006 1,057 4,157 5,214
Socially Responsible Fund
September 2007 629 659 1,288
September 2006 370 -- 370
As of September 30, 2007, the components of Distributable Earnings/(Accumulated
Losses) on a tax basis were as follows (000s):
Undistributed Undistributed Capital Unrealized Other Total
Ordinary Long-term Loss Post-October Appreciation Temporary Distributable Earnings
Income Capital Gain Carryforwards Losses (Depreciation) Differences (Accumulated Losses)
Fund (000) (000) (000) (000) (000) (000) (000)
- -----------------------------------------------------------------------------------------------------------------------------------
Limited Maturity Fund $ 161 $ -- $ (2,462) $ (97) $ 81 $ (150) $ (2,467)
Full Maturity Fund 151 -- (399) (4) 25 (142) (369)
Balanced Fund 316 479 -- -- 765 -- 1,560
Diversified Fund 3,837 8,165 -- -- 9,351 -- 21,353
Socially Responsible Fund 784 2,000 -- -- 5,333 -- 8,117
Post-October losses represent losses realized on investments and foreign
currency transactions from November 1, 2006 through September 30, 2007 that, in
accordance with Federal income tax regulations, the Funds have elected to defer
and treat as having arisen in the following fiscal year.
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,
2007, the breakdown of capital loss carryforwards was as follows (000s):
Expiring
-----------------------------------------
2012 2013 2014 2015 Total
Fund (000) (000) (000) (000) (000)
- --------------------------------------------------------------------------------
Limited Maturity Fund $ 76 $ 838 $ 133 $ 1,415 $ 2,462
Full Maturity Fund -- 64 46 289 399
- --------------------------------------------------------------------------------
The Federal tax cost, 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, 2008 for each of the
Funds were as follows (000s):
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
Fund (000) (000) (000) (000)
- --------------------------------------------------------------------------------------
Limited Maturity Fund $ 67,793 $ 1,301 $ (100) $ 1,201
Full Maturity Fund 43,947 1,322 (558) 764
Balanced Fund 15,418 568 (953) (385)
Diversified Fund 94,807 4,395 (7,786) (3,391)
Socially Responsible Fund 53,448 3,628 (4,145) (517)
- --------------------------------------------------------------------------------------
AHA INVESTMENT FUNDS | PAGE 43
notes to financial statements
MARCH 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS (000S):
The share transactions for the six months ended March 31, 2008 (unaudited) and
the year ended September 30, 2007 are as follows:
LIMITED MATURITY FUND (000) FULL MATURITY FUND (000) BALANCED FUND (000)
--------------------------- ------------------------ --------------------
03/31/08 09/30/07 03/31/08 09/30/07 03/31/08 09/30/07
- -------------------------------------------------------------- ------------------------ --------------------
INSTITUTIONAL CLASS
Shares Sold 2,176 226 9 1,107 -- --
Shares Issued in Reinvestment
of Dividends 76 40 52 51 12 4
Shares Redeemed (61) (371) -- (8) -- --
- -------------------------------------------------------------- ------------------------ --------------------
Total Net Change 2,191 (105) 61 1,150 12 4
============================================================== ======================== ====================
CLASS N
Shares Sold 28 9 53 9
Shares Issued in Reinvestment
of Dividends 1 1 1 1
Shares Redeemed (19) (15) (2) (1)
- -------------------------------------------------------------- ------------------------
Total Net Change 10 (5) 52 9
============================================================== ========================
SOCIALLY
DIVERSIFIED FUND (000) RESPONSIBLE FUND (000)
------------------------ ------------------------
03/31/08 09/30/07 03/31/08 09/30/07
- --------------------------------------------------------------- ------------------------
INSTITUTIONAL CLASS
Shares Sold 473 728 585 1,164
Shares Issued in Reinvestment
of Dividends 558 367 280 108
Shares Redeemed (575) (773) (326) (737)
- --------------------------------------------------------------- ------------------------
Total Net Change 456 322 539 535
=============================================================== ========================
CLASS N
Shares Sold 15 70 17 45
Shares Issued in Reinvestment
of Dividends 87 52 4 1
Shares Redeemed (62) (171) (6) (11)
- --------------------------------------------------------------- ------------------------
Total Net Change 40 (49) 15 35
=============================================================== ========================
AHA INVESTMENT FUNDS | PAGE 44
- --------------------------------------------------------------------------------
7. SECURITIES TRANSACTIONS
Purchases and sales and maturities of investment securities, other than
short-term investments, for the six months ended March 31, 2008 were as follows:
Purchases Sales & Maturities
- ------------------------------------------------------------------------
U.S. Gov't Other U.S. Gov't Other
Fund (000) (000) (000) (000)
- ------------------------------------------------------------------------
Limited Maturity Fund $ 30,348 $ 8,661 $ 8,667 $ 4,206
Full Maturity Fund 4,869 3,817 3,599 2,334
Balanced Fund 308 6,128 220 12,490
Diversified Fund -- 87,373 -- 94,363
Socially Responsible Fund -- 12,804 -- 10,120
- ------------------------------------------------------------------------
8. SECURITIES LENDING
The Custodian serves as the AHA Funds' securities lending agent. Certain Funds
lend their securities to approved brokers to earn additional income and receive
cash and/or securities as collateral to secure the loans. Income the Funds
earned on securities purchased with cash collateral is reflected on the
statements of operations. Collateral was maintained at not less than 102% of the
value of loaned securities. If cash collateral is received, a related liability
is shown on the statement of net assets. Although the risk of lending is
mitigated by the collateral, a Fund could experience a delay in recovering its
securities and a possible loss of income or value if the borrower fails to
return them. There were no securities on loan for the period ended March 31,
2008.The AHA Funds terminated the program in January 2008.
9. INVESTMENT RISKS
In the normal course of business, the AHA Funds enter into contracts that
provide general indemnifications by the Fund to the counterparty to the
contract. 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.
10. NEW ACCOUNTING PRONOUNCEMENTS
On July 13, 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 Funds' financial statements. FIN 48
requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" to be 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 was required for fiscal years beginning after December 15, 2006 and is to
be applied to all open tax years as of the effective date. Based on its
analysis, management has determined that the adoption of FIN 48 did not have a
material impact to the Fund's financial statements upon adoption. However,
management's conclusions regarding FIN 48 may be subject to review and
adjustment at a later date based on factors including, but not limited to,
further implementation guidance expected from the FASB, and on-going analyses of
and changes to tax laws, regulations and interpretations thereof.
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 March 31, 2008, 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 on the statement of changes in net assets for a fiscal period.
AHA INVESTMENT FUNDS | PAGE 45
disclosure of fund expenses (UNAUDITED)
- --------------------------------------------------------------------------------
All mutual funds have operating expenses. As a shareholder of a Fund, your
investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, administrative services, class specific
distribution fees and shareholder reports like this one. It is important for you
to understand the impact of these costs on your investment returns.
Operating expenses such as these are deducted from the Fund's gross income and
directly reduce your final investment return. These expenses are expressed as a
percentage of the Fund's average net assets; this percentage is known as the
Fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN. This section helps you to estimate the actual expenses that
your Fund incurred over the period. The "Expenses Paid During Period" column
shows the actual dollar expense cost incurred by a $1,000 investment in the
Fund, and the "Ending Account Value" number is derived from deducting that
expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply that ratio by the number
shown for your Fund under "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with
those of other mutual funds. It assumes that the Fund had an annual 5% return
before expenses during the year, but that the expense ratio (Column 3) for the
period is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess your Fund's comparative cost by comparing the
hypothetical result for your Fund in the "Expenses Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
funds.
NOTE: Because the return is set at 5% for comparison purposes - NOT your Fund's
actual return - the account values shown do not apply to your specific
investment.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/07 3/31/08 RATIOS PERIOD*
- ----------------------------------------------------------------------------------------------------------------
AHA LIMITED MATURITY FIXED INCOME FUND
- ----------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,042.80 0.75% $ 3.83
Class N 1,000.00 1,041.50 0.99% 5.05
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,021.25 0.75% $ 3.79
Class N 1,000.00 1,020.09 0.99% 5.00
- ----------------------------------------------------------------------------------------------------------------
AHA FULL MATURITY FIXED INCOME FUND
- ----------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 1,043.70 0.65% $ 3.32
Class N 1,000.00 1,041.50 0.90% 4.59
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,021.75 0.65% $ 3.29
Class N 1,000.00 1,020.50 0.90% 4.55
- ----------------------------------------------------------------------------------------------------------------
AHA BALANCED FUND
- ----------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 932.70 1.00% $ 4.83
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,020.00 1.00% $ 5.05
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/07 3/31/08 RATIOS PERIOD*
- ----------------------------------------------------------------------------------------------------------------
AHA DIVERSIFIED EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 871.30 0.99% $ 4.63
Class N 1,000.00 869.90 1.24% 5.80
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,020.05 0.99% $ 5.00
Class N 1,000.00 1,018.80 1.24% 6.26
- ----------------------------------------------------------------------------------------------------------------
AHA SOCIALLY RESPONSIBLE EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Institutional Class $ 1,000.00 $ 878.10 1.10% $ 5.16
Class N 1,000.00 877.00 1.35% 6.33
HYPOTHETICAL 5% RETURN
Institutional Class $ 1,000.00 $ 1,020.35 1.10% $ 4.70
Class N 1,000.00 1,019.10 1.35% 5.96
- ----------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the six month period).
AHA INVESTMENT FUNDS | PAGE 46
approval of sub-advisory agreement (UNAUDITED)
- --------------------------------------------------------------------------------
The Board of Trustees (the "Board") of CNI Charter Funds (the "Trust") is
comprised of five Trustees, four of whom are independent of the Trust's
investment advisers and sub-advisers (the "Independent Trustees"). During the
six months ended March 31, 2008, the Board and the Independent Trustees approved
a new sub-advisory agreement (the "Agreement") between CCM Advisors, LLC
("CCMA") and Turner Investment Partners, Inc. ("Turner") with respect to the AHA
Diversified Equity Fund (the "Fund").
GENERAL INFORMATION
The following information summarizes the Board's considerations associated with
its review of the Agreement. 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. As
described below, the Board considered the nature, quality and extent of the
services to be performed by Turner. In considering these matters, the
Independent Trustees discussed the approval of the Agreement with management and
in private sessions with counsel at which no representatives of CCMA or Turner
were present.
The Board reviewed extensive materials regarding the investment results of
Turner's core growth equity composite, advisory fee comparisons, financial and
profitability information provided by Turner, descriptions of various functions
such as compliance monitoring and portfolio trading practices, and information
about the personnel Turner proposed would provide services to the Fund.
In deciding to approve the Agreement, the Board and the Independent Trustees did
not identify a single factor as controlling and this summary does not describe
all of the matters considered. However, the Board and the Independent Trustees
concluded that each of the various factors referred to below favored such
approval.
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services to be provided by Turner, the Board considered a
variety of matters including the background, education and experience of
Turner's key portfolio management and operational personnel; Turner's overall
financial strength and stability; its regulatory compliance systems and
procedures; its resources and ability to retain, attract and motivate capable
personnel to serve the Fund; and the overall general quality and depth of its
organization. The Board also reviewed Turner's investment philosophy and
processes as well as its brokerage, trading and soft dollar practices.
INVESTMENT PERFORMANCE
The Board reviewed information regarding the historical composite performance of
Turner's core growth equity accounts, noting that the returns of Turner's
composite were significantly higher than those of the Russell 1000 Growth index
for the one-, three-, five-, seven-, and ten-year and since-inception periods
ended December 31, 2007.
ADVISORY FEES
The Board also reviewed information regarding the advisory fees proposed to be
charged under the Turner sub-advisory agreement, noting that those fees were
within the range of fees charged by Turner to other investment companies and
institutional clients. The Board noted that CCMA pays the Fund's sub-advisory
fees out of CCMA's advisory fee, and that the Fund's asset levels currently were
not so substantial that they could lead to significant economies of scale.
The Board also considered information prepared by Turner relating to its
projected costs and profits with respect to the Fund. The Board recognized that
Turner would not receive benefits other than investment advisory fees as a
result of its relationship with the Fund, except the intangible benefits of any
reputation enhancement and exposure within the community of investment
management companies arising in connection with the Fund's performance.
CONCLUSIONS
Based on their review, including their consideration of each of the factors
referred to above, the Board and the Independent Trustees concluded that the
proposed Turner sub-advisory agreement represents fair and reasonable
compensation in light of the nature and quality of the services proposed to be
provided by Turner to the Fund and its shareholders, and that approval of the
sub-advisory agreement is in the best interest of both the Fund and its
shareholders.
AHA INVESTMENT FUNDS | PAGE 47
notes
- --------------------------------------------------------------------------------
For more information on CNI Charter Funds, including charges and expenses, visit
cnicharterfunds.com or call 1-888-889-0799 for a free prospectus. Read it
carefully before you invest or send money.
- --------------------------------------------------------------------------------
[LOGO]
AMERICAN HOSPITAL
ASSOCIATION
AHA INVESTMENT FUNDS(TM)
A SERIES OF THE CNI CHARTER FUNDS
CCM Advisors, LLC is the AHA-sponsored investment
advisor for the AHA Investment Program
CNI CHARTER FUNDS(SM) [LOGO](R)
www.ahafunds.org
CNI-SA-003-0300
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. Effective for closed-end management investment companies for
fiscal years ending on or after December 31, 2005
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
CNI Charter Funds (the "Fund") has adopted the following procedures by which
shareholders may recommend nominees to the Fund's Board of Trustees. The Fund
has a Nominating Committee comprised solely of persons who are not considered
"interested persons" of the Fund within the meaning of the Investment Company
Act of 1940. The Committee periodically reviews such issues as the Board's
composition, responsibilities, committees, compensation and other relevant
issues, and recommends any appropriate changes to the full Board of Trustees.
While the Committee normally is able to identify from its own resources an ample
number of qualified candidates, it will consider shareholder suggestions of
persons to be considered as nominees to fill future vacancies on the Board, so
long as the shareholder or shareholder group submitting a proposed nominee: (a)
beneficially owns more than 5% of the Fund's voting shares and has held such
shares continuously for two years, and (b) is not an adverse holder. No eligible
shareholder or shareholder group may submit more than one independent Board
member nominee each year. Such suggestions must be sent in writing to the Fund
's Secretary, and must be accompanied by the shareholder's contact information,
the nominee's contact information and number of Fund shares owned by the
nominee, all information regarding the nominee that would be required to be
disclosed in solicitations of proxies for elections of directors required under
the Securities Exchange Act of 1934, and a notarized
letter from the nominee stating his or her intention to serve as a nominee and
be named in the Fund's proxy statement, if so designated by the Committee and
the Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no 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.
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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 A. Weiss
---------------------------
Richard A. Weiss, President & CEO
Date May 27, 2008
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 A. Weiss
---------------------------
Richard A. Weiss, President & CEO
Date May 27, 2008
By (Signature and Title)* /s/ Eric Kleinschmidt
---------------------------
Eric Kleinschmidt, Controller and COO
Date May 27, 2008
* Print the name and title of each signing officer under his or her signature.