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 - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- [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 - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- 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.