UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-0792
CNI CHARTER FUNDS
(Exact name of registrant as specified in charter)
----------
400 North Roxbury Drive
Beverly Hills, CA 90210
(Address of principal executive offices) (Zip code)
SEI Investments Distributors
1 Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-888-889-0799
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2009
DATE OF REPORTING PERIOD: MARCH 31, 2009
ITEM 1. REPORTS TO STOCKHOLDERS.
(AMERICAN HOSPITAL ASSOCIATION LOGO)
AHA INVESTMENT FUNDS(TM)
SERIES OF THE CNI CHARTER FUNDS
(GRAPHIC)
2009 SEMI-ANNUAL REPORT
March 31, 2009
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
This report and the financial statements contained herein are provided for the
general information of the shareholders of the CNI Charter Funds. This report is
not authorized for distribution to prospective investors in the CNI Charter
Funds unless preceded or accompanied by an effective prospectus. Please remember
that past performance is no guarantee of future results.
Shares of CNI Charter Funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency and
involve investment risks, including the possible loss of the principal amount
invested.
TABLE OF CONTENTS
Semi-Annual Report
AHA Investment Funds
Series of CNI Charter Funds
2 Letter to Our Shareholders
6 Schedules of Investments
29 Statements of Assets and Liabilities
30 Statements of Operations
32 Statements of Changes in Net Assets
34 Financial Highlights
36 Notes to Financial Statements
42 Disclosure of Fund Expenses
43 Approval of Sub-Advisory Agreements
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, 2009
Dear Shareholder,
The first half of our fiscal year, the six months ending March 31, 2009,
experienced a downward spiral in the stock and bond markets not seen in seventy
years. The recession is now the longest on record since the 1930s due to the
mortgage crisis, the freeze up of bank lending, and the subsequent bailout of
the banking industry. The resulting emergency actions by the Federal Reserve
Bank ("Fed") to ease credit markets has resulted in Fed Funds rates of zero to
25 basis points (0.25%) (see Yield Curve table below showing the last three
quarter-end yields by maturity).While investors in the AHA Investment Funds felt
the market effects, the conservative nature of the AHA Funds has provided more
protection in the fixed income funds than many of their peers by investment
strategy and high quality standards for risk control. The AHA Full Maturity
Fixed Income Fund was awarded Lipper Leader recognition for both the
Institutional Class and Class N for consistency of returns over the three years
ending March 31, 2009 and for the overall total return in the Corporate Bond
Funds peer group. The Institutional Class of the AHA Limited Maturity Fund was
also recognized by Lipper for consistent returns over the three and five years
ending March 31, 2009 among Short-Intermediate Investment Grade Bond Funds.
The AHA Funds investors saw the benefits of diversification come into effect
late in the half year after the Obama administration's multi-pronged actions
were announced as follows:
- - On March 9, the $75B housing rescue plan was made public;
- - On March 18, the Fed's plan to buy $300B of Treasuries and mortgage-backed
securities was announced;
- - On March 24, the Obama administration unveiled its Public-Private
Investment Program to buy up to $2T in toxic real estate assets from banks.
Please find below a review of the first half of the fiscal year for the AHA
Investment Funds.
AHA LIMITED MATURITY FUND
Because of strict high credit quality standards this Fund has responded
favorably to Fed rate cuts designed to melt the freeze up of credit markets. The
two managers of the AHA Limited Maturity Fund complement each other by bringing
a core + ALPHA strategy to diversify by investing in different maturity ranges:
- - Patterson Capital Corporation manages in the core 1-3 year maturity range,
and is heavily weighted towards government securities;
- - City National Asset Management, Inc. ("CNAM"), as the ALPHA manager,
proactively shifts duration along the 1-5 year maturity spectrum.
The core manager, led by CIO Joe Patterson, a veteran of four decades of
interest rate cycles, kept duration short and allocated more towards governments
and mortgages. As a result of the announcements from Washington, D.C.,
Treasuries rallied as the two-year targeted T-note dropped 22 basis points
(0.22%) in yield (bond yields and prices move in opposite directions). The
mortgage-backed sector welcomed the news of buybacks as well and outperformed
Treasuries. Going forward, Mr. Patterson says,"We expect the follow through on
the government's rescue efforts to have a positive impact in the bond markets.
In terms of the portfolio, we are still maintaining an emphasis on liquidity and
quality, and selectively adding high quality corporate at the expense of
Treasuries and Agencies."
The ALPHA manager maintained its duration longer than the core manager and was
overweight in mortgage-backed securities. CNAM also took advantage of the new
Temporary Liquidity Guarantee Program in which the Federal Deposit Insurance
Corporation ("FDIC") supports the issuance of short term notes by financial
institutions to maintain the liquidity of the banking system. This has resulted
in three of the top ten holdings having FDIC backing: JP Morgan Chase, GE
Capital and Goldman Sachs. In a search for interest accrual, the sub-advisor has
been accumulating high quality credits as opposed to low yielding Treasuries.
AHA INVESTMENT FUNDS | PAGE 2
letter to our shareholders
MARCH 31, 2009
Overall, both managers have helped the Fund's shares provide a 30-day SEC yield
above the benchmark. The Class N yield in March was 3.57% and the Institutional
Class was 3.82%, as compared to 0.78% for the Merrill Lynch 1-3 year Treasury
Index and 0.16% for 90-day T-Bills.
Six-month returns were 3.58% for Class N shares and 3.71% for Institutional
Class shares compared to 0.96% average returns for the Lipper peer group of
Short-Intermediate Investment Grade Bond Funds. The returns ranked 37th and 34th
respectively out of 155 similar funds. The AHA Limited Maturity Fund maintained
liquidity and safety without interruption for our investors throughout the
crisis in the bond markets.
(PERFORMANCE GRAPH)
3/31/2009 12/31/2008 9/30/2008
--------- ---------- ---------
3 M 0.21% 0.11% 0.92%
6 M 0.43% 0.27% 1.60%
1 Yr 0.57% 0.37% 1.78%
2 Yr 0.81% 0.76% 2.00%
3 Yr 1.15% 1.00% 2.28%
1.41% 1.27% 2.63%
5 Yr 1.67% 1.55% 2.98%
2.28% 1.87% 3.38%
10 Yr 2.71% 2.25% 3.85%
3.16% 2.51% 4.04%
3.61% 2.78% 4.23%
3.59% 3.05% 4.43%
25Y+ 3.56% 2.63% 4.31%
AHA FULL MATURITY FIXED INCOME FUND
This high investment grade credit quality Fund is co-managed by sub-advisors
following a core + ALPHA manager strategy as follows:
- - Baird Advisors is the core manager, investing half of the Fund in a
portfolio duration matched to the Barclays U.S. Aggregate Bond Index, and
allocating among sectors in a broadly diversified manner that seeks to
manage bond market risk;
- - Boyd Watterson Asset Management is the ALPHA manager, actively investing
half of the Fund in a portfolio duration tilted above or below the Barclays
Intermediate Government/Credit Index based on economic and interest rate
cycles, and over/under weighting bond market sectors in an effort to
maximize returns.
The government surprised the bond market with the extent of the Treasury
Department and the Fed's intervention. During the first quarter of 2009, the Fed
actively promoted economic recovery and price stability, in the near term
meaning fighting deflation; in the longer term it may mean inflation. As the Fed
is committed to preventing interest rates from rising, and the targeted Fed
Funds rate is at the zero to 25 basis points (0.25%) range now, both the core
and alpha sub-advisors have adopted duration-neutral stances. Unusually, both
the Aggregate and Intermediate indices durations are nearly identical, which
therefore is the duration of the AHA Full Maturity Fund.
The core manager held an overweight in Asset-Backed Securities (ABS) compared to
the index. These credit card receivables benefitted from government Term
Asset-Backed Securities Loan Facility (" TALF") support aimed at securitized
markets which have been frozen for six months. TALF liquidity enabled
Asset-Backed Securities to rebound sharply in the quarter (+7.56%), making it
the best performing sector. Treasury and Agency debenture holdings, constituting
28% of the Fund, jumped in March after slumping earlier in the quarter. U.S.
Government and general market mortgage-backed obligations, representing 27% of
the Fund, were buoyed by steady government purchases. This was the largest
sector weighting in the core portfolio.
Due to the flight to Treasuries during the market meltdown in the fourth quarter
of 2008, their prices became overbid. The ALPHA manager took advantage of this
pricing and sold Treasuries in the first quarter, as well as financial sector
corporate bonds. The strategy of the ALPHA portfolio manager in the Fund is to
increase exposure to industrial corporate bonds of high credit quality for
income generation and price appreciation. While at 17 months the recession is
already the longest since the Depression, the industrial bond market is coming
off extremely low prices early in 2009 and performed well in March.
AHA Full Maturity Fixed Income Fund jumped 1.33% for Class N and 1.35% for
Institutional Class in March, ahead of the Barclays Intermediate Government/
AHA INVESTMENT FUNDS | PAGE 3
letter to our shareholders
MARCH 31, 2009
Credit Bond Index performance of 0.95% and the Lipper Corporate Debt peer group
return of 1.23%. This gave it an edge over both benchmarks for the first quarter
of calendar year 2009 as well. For the past six months the Fund outperformed its
Lipper peer group by 4% as many bond funds produced negative returns in the
crisis. For the first six months of our fiscal year, the AHA Full Maturity Fixed
Income Fund returned 3.79% for Class N, and 3.82% for Institutional Class,
compared to -1.65% for the Lipper Corporate Bond Funds peer group. The Barclays
Intermediate Government/Credit Index, which does not include mortgages, returned
4.79% for the last six months. The Institutional Class of the Fund was the
recipient of the Lipper Leader Award in its peer group in 2008 for its steady
and consistently positive returns over the past three and five years.
AHA BALANCED FUND
The AHA Balanced Fund is what Morningstar labels a moderately balanced fund,
with target weightings of 60% large cap core stocks, 30% core bonds, and 10%
cash. The Fund during these six months was divided between two managers, Freeman
Investment Management for core equity and Baird Advisors for core bonds. During
the first half of the fiscal year the Fund returned -16.10% for the
Institutional Class compared to -21.52% for its Lipper peer group of Mixed-Asset
Target Allocation Funds. It ranked in the top decile of its peer group at 52nd
out of 709. The blended index of 60% S&P 500, 30% Lehman Aggregate and 10%
Treasury Bills returned -17.87% for the six months. The approach of the core
equity manager, Freeman Investment Management, relies heavily upon quantitative
models emphasizing price-to-cash flow, price-to-earnings and price-to-sales. It
also is diversified in all S&P 500 sectors within a narrow range of the sector
weightings of the index. During the six months, Freeman's volatility metrics
caused it to expand holdings to 300 in December, and decrease to 175 (the normal
range) by March 2009.
The core bond manager, Baird Advisors, with a mandate to follow a market neutral
duration compared to the Lehman Aggregate Index, shifted to a more heavily
government-weighted portfolio in September 2008. This benefitted the returns all
the more since its fixed income weighting increased relative to the equity
holdings as the stock market fell and the government securities had a positive
return in the flight to quality.
AHA DIVERSIFIED EQUITY FUND
During this six month period, the AHA Diversified Equity Fund kept its goal of
diversification by investment style intact. Turner Investment Partners was added
to the Fund in March 2008 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 (large/mid-cap
ALPHA) and AMBS Investment Counsel (traditional large cap value), provide value
style to the Fund to complement the core manager, Freeman Investment Management,
as illustrated in the pie chart.
(PIE CHART)
Freeman - Core 30.00%
AMBS - Fundamental Value 17.50%
SKBA - Large-Mid Value 17.50%
Turner Investment - Growth 35.00%
During the six month period under review, Class N shares of the Fund returned
- -29.14%, and the Institutional Class returned -29.12%, versus -29.66% for the
Lipper Large Cap Core peer group. The Fund ranked in the upper third of the
Lipper universe. The approach of the core manager, Freeman Investment
Management, relies heavily upon quantitative models emphasizing price-to-cash
flow, price-to-earnings and price-to-sales. The core portion 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 Consumer Staples and Materials, sectors which performed well in
the half year, were lags on comparative performance.
AHA INVESTMENT FUNDS | PAGE 4
letter to our shareholders
MARCH 31, 2009
AMBS, a traditional value manager, concentrates holdings in certain sectors.
AMBS held a zero percent weighting in Utilities; in the first quarter of 2009 it
was advantageous to avoid this sector. The manager also had a heavy weighting in
Consumer Staples and Industrials, two of the better performing sectors, and it
fortunately underweighted Financials, which had underperformance in this period.
Information Technology was a large sector holding which aided performance in the
March 2009 period end.
In March 2008,Turner Investment Partners began management of 27.5% of the Fund,
with assets transferred proportionately from the other three managers. Turner
adds an ALPHA large cap growth dimension to the Fund which we believe will
address a long-term trend in the equity market. By March 2009 heavy shifting
toward overweighting Information Technology was beneficial as that sector led
all the others in early 2009, giving the portfolio an edge.
For the six months under review this Fund performed much as its peers, as stated
above, but in the recent quarter pulled ahead of the pack, beating the S&P 500
by 340 basis points (3.40%) for the quarter at -7.62% for the Class N and -7.60
for the Institutional Class, versus -11.01% for the index, due in large part to
the contributions of the growth manager.
AHA SOCIALLY RESPONSIBLE EQUITY FUND
This Fund is sub-advised solely by SKBA Capital Management, a manager with
expertise in socially conscious investing following a
large-to-mid-capitalization value oriented strategy. For the half year it
returned -37.05% for Class N and -36.93% for Institutional Class, compared to
- -28.93% for the Domini 400 Social Index and -31.71% for the Lipper Multi-Cap
Value Funds. SKBA invests from a universe of stocks which are screened for
social values including pro-environmental, good corporate governance and
citizenship, and follows the guidelines of the U.S. Conference of Catholic
Bishops. Starting with a universe of 600 stocks remaining after socially
screening the Russell Value Index, and stocks outside the index, this Fund seeks
to invest responsibly both along fundamental stock valuation analysis and
through social concerns. The Fund is heavily weighted in Energy, notably natural
gas production and distribution as a cleaner energy source, non-bank Financials,
Health and Consumer Staples sectors. However, as growth stocks pulled ahead in
the first quarter the value orientation of the holdings lagged in performance.
We are confident that the approach is sound and will prove a benefit to
shareholders.
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 core plus ALPHA sub-advisor strategies and socially
responsible investing are designed to provide an optimal investment approach
which will weather financial crises and serve your investment 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 ADVISOR 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.
THE S&P 500 INDEX IS A BROAD BASED UNMANAGED INDEX OF 500 STOCKS WHICH IS WIDELY
RECOGNIZED AS REPRESENTATIVE OF THE EQUITY MARKET IN GENERAL. THE BARCLAYS
INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX IS A MARKET VALUE WEIGHTED
PERFORMANCE BENCHMARK FOR GOVERNMENT AND CORPORATE FIXED-RATE DEBT ISSUES WITH
MATURITIES BETWEEN ONE AND TEN YEARS. THE MERRILL LYNCH 1-3 TREASURY YEAR INDEX
IS A MARKET VALUE WEIGHTED INDEX OF U.S. TREASURY SECURITIES WITH MATURITIES OF
1-3 YEARS.
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, 2009 (UNAUDITED)
AHA LIMITED MATURITY FIXED INCOME FUND
TYPE OF SECURITY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Corporate Bonds 38.1%
U.S. Government Mortgage-Backed Obligations 23.4%
U.S. Government Agency Obligations 17.3%
U.S. Treasury Obligations 16.9%
Cash Equivalent 4.3%
* Percentages based on total investments.
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
CORPORATE BONDS [39.0%]
AEROSPACE & DEFENSE [0.5%]
United Technologies
7.125%, 11/15/10 $ 175 $ 188
===========
AEROSPACE/DEFENSE [1.6%]
Boeing
5.000%, 03/15/14 550 564
===========
BANKS [6.0%]
Bank of America
4.375%, 12/01/10 60 57
Goldman Sachs Group
1.625%, 07/15/11 1,000 1,001
JPMorgan Chase
3.125%, 12/01/11 1,000 1,036
Wachovia
4.375%, 06/01/10 100 97
-----------
TOTAL BANKS 2,191
===========
COMPUTER SYSTEM DESIGN & SERVICES [2.2%]
Hewlett-Packard
6.125%, 03/01/14 550 586
IBM
4.950%, 03/22/11 190 200
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 786
===========
ENERGY [1.3%]
Exelon Generation
6.950%, 06/15/11 200 204
Florida Power
4.500%, 06/01/10 250 255
-----------
TOTAL ENERGY 459
===========
FINANCIAL SERVICES [9.1%]
American General Finance,
Ser H, MTN
5.375%, 10/01/12 1,700 683
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Boeing Capital
6.100%, 03/01/11 $ 250 $ 263
Caterpillar Financial Services, MTN
5.050%, 12/01/10 200 204
General Electric Capital
3.000%, 12/09/11 1,000 1,030
General Electric Capital, MTN
4.875%, 10/21/10 150 149
General Electric Capital, Ser A, MTN
6.000%, 06/15/12 550 542
HSBC Finance
6.375%, 11/27/12 550 444
-----------
TOTAL FINANCIAL SERVICES 3,315
===========
FOOD, BEVERAGE & TOBACCO [1.5%]
Coca-Cola
5.750%, 03/15/11 145 155
Kellogg
6.600%, 04/01/11 200 214
Unilever Capital
7.125%, 11/01/10 150 161
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 530
===========
INSURANCE [0.1%]
Allstate
7.200%, 12/01/09 50 50
===========
INVESTMENT BANKER/BROKER DEALER [6.7%]
Bear Stearns, MTN
6.950%, 08/10/12 550 560
Credit Suisse First Boston
6.125%, 11/15/11 550 560
Goldman Sachs Group
4.500%, 06/15/10 100 100
Merrill Lynch, MTN
4.250%, 02/08/10 550 519
Morgan Stanley
6.750%, 04/15/11 550 550
4.250%, 05/15/10 150 146
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 2,435
===========
MULTI-MEDIA [1.6%]
Walt Disney, MTN
6.375%, 03/01/12 550 594
===========
OIL, GAS & CONSUMABLE FUELS [3.1%]
Chevron
3.950%, 03/03/14 525 539
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 6
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA LIMITED MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
ConocoPhillips
4.750%, 02/01/14 $ 550 $ 572
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 1,111
===========
PETROLEUM & FUEL PRODUCTS [2.1%]
ConocoPhillips
8.750%, 05/25/10 250 267
Occidental Petroleum, MTN
4.250%, 03/15/10 500 512
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 779
===========
TELEPHONES & TELECOMMUNICATIONS [3.2%]
AT&T
6.250%, 03/15/11 550 574
Verizon Communications
7.250%, 12/01/10 550 581
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 1,155
===========
TOTAL CORPORATE BONDS
(Cost $15,263) 14,157
===========
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [24.0%]
FFCB, Ser IA2, Cl 1
5.220%, 10/21/13 434 437
FFCB, Ser IA8, Pool FFCB
2007-IA8 1, Cl 1
4.650%, 01/21/14 685 686
FHLMC REMIC, Pool FHRR
R005 AB, Cl AB
5.500%, 12/15/18 555 566
FHLMC REMIC, Ser R003,
Cl AG
5.125%, 10/15/15 455 461
FHLMC REMIC, Ser R006,
Cl AK
5.750%, 12/15/18 352 360
FHLMC REMIC, Ser R009,
Cl AJ
5.750%, 12/15/18 560 573
FHLMC REMIC, Ser R010,
Pool FHRR R010 AB,
Cl AB
5.500%, 12/15/19 649 663
FHLMC REMIC, Ser R015,
Pool FHRR R015 AN, Cl AN
3.750%, 02/15/13 474 476
FHLMC, Pool G12806
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
5.500%, 09/01/22 $ 421 $ 439
FHLMC, Pool G18247
5.000%, 04/01/23 283 294
FHLMC, Pool G18251
5.000%, 05/01/23 436 452
FHLMC, Pool J04241
5.500%, 01/01/22 310 324
FHLMC, Pool J04459
5.000%, 03/01/22 219 227
FHLMC, Pool J04508
5.000%, 03/01/22 184 191
FHLMC, Pool J07575
5.000%, 04/01/23 300 311
FNMA
1.750%, 03/23/11 200 201
FNMA, Pool 541946
7.500%, 07/01/30 1 1
FNMA, Pool 584930
7.500%, 05/01/31 2 2
FNMA, Pool 837196
5.500%, 02/01/21 586 612
FNMA, Pool 933915
4.500%, 06/01/23 462 476
FNMA, Pool 961783
4.500%, 02/01/23 409 422
GNMA REMIC, Ser 31,
Pool 2003-31 PB, Cl PB
5.500%, 02/16/32 500 516
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $8,549) 8,690
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [17.7%]
FHLB
5.375%, 08/19/11 600 650
4.375%, 09/17/10 330 345
FHLMC
6.000%, 06/15/11 600 658
4.750%, 01/18/11 600 636
FNMA
6.250%, 02/01/11 1,475 1,558
6.000%, 05/15/11 1,000 1,097
5.375%, 11/15/11 600 658
4.250%, 08/15/10 790 823
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $6,363) 6,425
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 7
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA LIMITED MATURITY FIXED INCOME FUND (CONCLUDED)
FACE
AMOUNT
(000) VALUE
DESCRIPTION /SHARES (000)
- ----------------------------------------------------- ---------- -----------
U.S. TREASURY OBLIGATIONS [17.2%]
U.S. Treasury Notes
4.875%, 02/15/12 $ 100 $ 111
4.750%, 02/15/10 1,000 1,036
4.750%, 01/31/12 50 55
4.500%, 05/15/10 1,260 1,315
4.500%, 11/30/11 1,000 1,092
4.125%, 08/31/12 1,120 1,227
3.875%, 09/15/10 235 246
1.750%, 11/15/11 1,150 1,173
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $6,155) 6,255
===========
CASH EQUIVALENT [4.4%]
AIM STIT-Treasury Portfolio,
0.17%* 1,610,557 1,611
-----------
TOTAL CASH EQUIVALENT
(Cost $1,611) 1,611
===========
TOTAL INVESTMENTS [102.3%]
(Cost $37,941) $ 37,138
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $36,296,092.
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
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
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 8
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND
TYPE OF SECURITY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Corporate Bonds 39.0%
U.S. Government Mortgage-Backed Obligations 17.3%
U.S. Treasury Obligations 14.4%
U.S. Government Agency Obligations 13.4%
Mortgage-Backed Securities 7.7%
Asset-Backed Securities 5.4%
Cash Equivalent 2.6%
Foreign Government Bond 0.2%
Municipal Bond 0.0%
* Percentages based on total investments.
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
CORPORATE BONDS [38.7%]
AEROSPACE & DEFENSE [0.8%]
United Technologies
6.125%, 02/01/19 $ 100 $ 108
4.375%, 05/01/10 215 220
-----------
TOTAL AEROSPACE & DEFENSE 328
===========
AGRICULTURE [0.2%]
Bunge NA Finance
5.900%, 04/01/17 100 79
===========
BANKS [7.7%]
AmSouth Bancorporation
6.750%, 11/01/25 75 49
Bank of America
10.200%, 07/15/15 100 108
5.650%, 05/01/18 315 263
2.100%, 04/30/12 360 361
Bank One
10.000%, 08/15/10 89 92
Citigroup
2.125%, 04/30/12 285 286
Deutsche Bank Trust
7.250%, 10/15/11 46 47
Dresdner Bank - New York
7.250%, 09/15/15 150 124
European Investment Bank
4.625%, 03/21/12 450 482
HSBC Holding
7.500%, 07/15/09 285 285
JPMorgan Chase
3.125%, 12/01/11 260 269
Morgan Stanley
5.300%, 03/01/13 260 250
PNC Funding
2.300%, 06/22/12 200 202
Santander Central Hispano Issuances
7.625%, 09/14/10 100 98
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Wachovia
5.300%, 10/15/11 $ 260 $ 257
Wachovia, MTN
5.500%, 05/01/13 150 138
-----------
TOTAL BANKS 3,311
===========
BEAUTY PRODUCTS [1.0%]
Procter & Gamble
4.700%, 02/15/19 210 212
4.600%, 01/15/14 200 212
-----------
TOTAL BEAUTY PRODUCTS 424
===========
BUILDING & CONSTRUCTION [0.1%]
Hanson Australia Funding
5.250%, 03/15/13 75 33
===========
CABLE/MEDIA [0.2%]
TCI Communications
7.875%, 08/01/13 75 76
===========
CHEMICALS [0.5%]
EI Du Pont de Nemours
5.875%, 01/15/14 215 227
===========
COMPUTER SYSTEM DESIGN & SERVICES [1.0%]
Hewlett-Packard
6.125%, 03/01/14 135 144
IBM, MTN
4.375%, 06/01/09 300 301
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 445
===========
DATA PROCESSING [0.2%]
Fiserv
6.125%, 11/20/12 100 99
===========
DIVERSIFIED OPERATIONS [0.4%]
Hutchison Whampoa International (A)
5.450%, 11/24/10 150 155
===========
DRUGS [2.3%]
Abbott Laboratories
5.600%, 05/15/11 325 349
Eli Lilly
3.550%, 03/06/12 200 204
Novartis Capital
4.125%, 02/10/14 110 112
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 9
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Pfizer
5.350%, 03/15/15 $ 225 $ 237
Teva Pharmaceutical
5.550%, 02/01/16 75 78
-----------
TOTAL DRUGS 980
===========
ENERGY [1.3%]
Carolina Power & Light
5.150%, 04/01/15 80 81
Exelon
5.625%, 06/15/35 75 50
FPL Group Capital
7.875%, 12/15/15 115 130
Korea Electric Power
7.750%, 04/01/13 95 94
6.750%, 08/01/27 75 54
NiSource Finance
7.875%, 11/15/10 75 74
Pacific Gas & Electric
6.050%, 03/01/34 25 25
PPL Energy Supply, Ser A
5.700%, 10/15/15 75 68
-----------
TOTAL ENERGY 576
===========
FINANCIAL SERVICES [5.5%]
American Express Credit, MTN
7.300%, 08/20/13 285 264
American General Finance
8.450%, 10/15/09 100 74
Associates Corp of North
America, Ser A
7.950%, 02/15/10 75 73
Caterpillar Financial
Services, MTN
6.200%, 09/30/13 265 265
Eksportsfinans, Ser G
5.125%, 10/26/11 250 263
General Electric Capital
3.000%, 12/09/11 310 319
General Electric Capital, MTN
5.500%, 04/28/11 330 325
General Electric Capital,
Ser A, MTN
6.000%, 06/15/12 75 74
HSBC Finance
5.000%, 06/30/15 75 55
John Deere Capital
2.875%, 06/19/12 200 205
Svensk Exportkredit
4.875%, 01/19/10 280 287
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
UFJ Finance Aruba
6.750%, 07/15/13 $ 125 $ 129
-----------
TOTAL FINANCIAL SERVICES 2,333
===========
FOOD, BEVERAGE & TOBACCO [2.1%]
Bottling Group
5.125%, 01/15/19 115 116
Cia de Bebidas das Americas
8.750%, 09/15/13 175 191
Coca-Cola
5.350%, 11/15/17 290 310
General Mills
5.650%, 02/15/19 110 112
Kraft Foods
6.500%, 08/11/17 190 195
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 924
===========
INSURANCE [0.3%]
Protective Life
4.300%, 06/01/13 100 85
Travelers (B)
6.250%, 03/15/37 100 53
-----------
TOTAL INSURANCE 138
===========
INVESTMENT BANKER/BROKER DEALER [3.7%]
Bear Stearns, MTN (B)
1.404%, 01/31/11 340 324
Citigroup
6.500%, 01/18/11 275 263
Credit Suisse USA
5.250%, 03/02/11 325 329
Goldman Sachs Group
6.600%, 01/15/12 200 200
5.150%, 01/15/14 75 68
1.532%, 06/28/10 (B) 100 95
Jefferies Group
6.450%, 06/08/27 100 57
Merrill Lynch, Ser C, MTN (B)
1.454%, 02/05/10 70 66
Morgan Stanley
4.750%, 04/01/14 75 61
1.374%, 04/15/09 (B) 140 134
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 1,597
===========
MACHINERY-CONSTRUCTION AND MINING [0.4%]
Caterpillar
7.900%, 12/15/18 160 166
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 10
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
MANUFACTURING [0.8%]
General Electric
5.000%, 02/01/13 $ 150 $ 150
Honeywell International
3.875%, 02/15/14 100 101
Tyco International Group
6.375%, 10/15/11 75 76
-----------
TOTAL MANUFACTURING 327
===========
MEDICAL PRODUCTS [0.3%]
Johnson & Johnson
5.550%, 08/15/17 130 145
===========
METALS & MINING [0.4%]
Rio Tinto Finance USA
6.500%, 07/15/18 100 88
Vale Overseas
6.875%, 11/21/36 100 86
-----------
TOTAL METALS & MINING 174
===========
MULTI-MEDIA [1.4%]
CBS
6.625%, 05/15/11 60 58
Time Warner
9.125%, 01/15/13 50 53
5.875%, 11/15/16 260 246
Viacom
7.700%, 07/30/10 75 75
Walt Disney, MTN
6.375%, 03/01/12 150 162
-----------
TOTAL MULTI-MEDIA 594
===========
NETWORKING PRODUCTS [0.3%]
Cisco Systems
4.950%, 02/15/19 115 113
===========
OIL, GAS & CONSUMABLE FUELS [2.1%]
Chevron
3.450%, 03/03/12 250 257
ConocoPhillips
5.300%, 04/15/12 300 314
Shell International
5.625%, 06/27/11 300 321
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 892
===========
PETROLEUM & FUEL PRODUCTS [0.3%]
Energy Transfer Partners
6.625%, 10/15/36 75 56
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Pemex Project Funding Master Trust
9.125%, 10/13/10 $ 50 $ 53
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 109
===========
RETAIL [1.8%]
Home Depot
5.250%, 12/16/13 310 302
Lowe's
5.000%, 10/15/15 200 203
Target
6.350%, 01/15/11 250 265
-----------
TOTAL RETAIL 770
===========
RETAIL-DRUG STORE [0.2%]
Walgreen
5.250%, 01/15/19 100 100
===========
RETAIL-RESTAURANTS [0.2%]
McDonald's, MTN
5.000%, 02/01/19 90 94
===========
SECURITY BROKERS & DEALERS [0.1%]
iStar Financial
5.850%, 03/15/17 100 29
===========
SHORT-TERM BUSINESS CREDIT [0.2%]
Citigroup Canada
5.200%, 06/01/15 100 63
===========
TELEPHONES & TELECOMMUNICATIONS [2.1%]
British Telecommunications
9.625%, 12/15/30 100 91
9.125%, 12/15/10 (C) 60 62
Deutsche Telekom International
Finance
8.750%, 06/15/30 75 80
8.500%, 06/15/10 25 26
France Telecom
7.750%, 03/01/11 50 54
New Cingular Wireless Services
8.750%, 03/01/31 75 82
SBC Communications
5.300%, 11/15/10 300 309
Sprint Capital
6.900%, 05/01/19 75 53
Telecom Italia Capital
7.200%, 07/18/36 75 59
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 11
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Telefonica Emisiones
6.421%, 06/20/16 $ 75 $ 78
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 894
===========
TRANSPORTATION SERVICES [0.8%]
FedEx
9.650%, 06/15/12 125 136
United Parcel Service
3.875%, 04/01/14 225 226
-----------
TOTAL TRANSPORTATION SERVICES 362
-----------
TOTAL CORPORATE BONDS
(Cost $16,941) 16,557
===========
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [17.1%]
FHLMC Gold, Pool G11880
5.000%, 12/01/20 122 127
FHLMC REMIC, Ser 2544,
Cl QB
5.000%, 09/15/15 36 37
FHLMC REMIC, Ser 2804,
Cl VC
5.000%, 07/15/21 160 169
FHLMC REMIC, Ser R003, Cl VA
5.500%, 08/15/16 149 156
FHLMC REMIC, Ser R009, Cl AJ
5.750%, 12/15/18 124 127
FHLMC REMIC, Ser R010,
Pool FHRR R010 AB, Cl AB
5.500%, 12/15/19 271 276
FHLMC REMIC, Ser R010, Cl VA
5.500%, 04/15/17 125 132
FHLMC
3.125%, 10/25/10 675 695
FHLMC, Pool 160098
10.500%, 01/01/10 0 --
FHLMC, Pool 1B2677 (B)
4.159%, 01/01/35 27 27
FHLMC, Pool 1B2683 (B)
4.087%, 01/01/35 14 14
FHLMC, Pool 1B2692 (B)
4.462%, 12/01/34 45 46
FHLMC, Pool 1Q0081 (B)
5.052%, 03/01/36 280 288
FHLMC, Pool C20300
6.500%, 01/01/29 12 13
FHLMC, Pool E01280
5.000%, 12/01/17 42 44
FHLMC, Pool G08003
6.000%, 07/01/34 133 139
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
FHLMC, Pool G11431
6.000%, 02/01/18 $ 27 $ 29
FHLMC, Pool G11911
5.000%, 02/01/21 319 331
FHLMC, Pool G18124
6.000%, 06/01/21 103 107
FHLMC, Ser 2730, Cl PD
5.000%, 05/15/21 150 156
FHLMC, Ser 3122, Cl VA
6.000%, 01/15/17 118 123
FHLMC, Ser 3132, Cl MA
5.500%, 12/15/23 104 107
FNMA REMIC, Ser B2, Cl AB
5.500%, 05/25/14 145 149
FNMA
2.750%, 03/14/14 200 202
1.750%, 03/23/11 800 805
FNMA, Pool 252570
6.500%, 07/01/29 26 27
FNMA, Pool 253183
7.500%, 04/01/30 2 2
FNMA, Pool 253398
8.000%, 08/01/30 8 9
FNMA, Pool 254510
5.000%, 11/01/17 54 57
FNMA, Pool 254545
5.000%, 12/01/17 106 111
FNMA, Pool 254685
5.000%, 04/01/18 81 85
FNMA, Pool 254949
5.000%, 11/01/33 77 80
FNMA, Pool 255814
5.500%, 08/01/35 203 211
FNMA, Pool 303168
9.500%, 02/01/25 6 7
FNMA, Pool 735060
6.000%, 11/01/34 94 98
FNMA, Pool 735228
5.500%, 02/01/35 84 88
FNMA, Pool 745418
5.500%, 04/01/36 1,289 1,341
FNMA, Pool 827223 (B)
4.764%, 04/01/35 154 158
FNMA, Pool 844809
5.000%, 11/01/35 153 158
FNMA, Ser 136, Cl PK
6.000%, 08/25/22 30 31
FNMA, Ser 33, Cl LD
4.250%, 09/25/22 184 190
FNMA, Ser W6, Cl 1A6
5.500%, 07/25/34 73 76
GNMA, Pool 479168
8.000%, 02/15/30 8 9
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 12
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
GNMA, Pool 780315
9.500%, 12/15/17 $ 12 $ 14
GNMA, Ser 15, Cl A
3.727%, 03/16/27 122 123
GNMA, Ser 78, Cl C
4.658%, 04/16/29 150 155
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $7,066) 7,329
===========
U.S. TREASURY OBLIGATIONS [14.3%]
U.S. Treasury Bonds
9.125%, 05/15/18 200 303
6.250%, 08/15/23 2,725 3,585
U.S. Treasury Notes
4.875%, 08/15/16 775 912
4.750%, 05/15/14 230 265
4.250%, 11/15/17 910 1,032
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,441) 6,097
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [13.3%]
FFCB
4.875%, 04/04/12 200 217
FHLMC
4.375%, 07/17/15 820 894
FNMA
6.000%, 05/15/11 2,125 2,330
5.000%, 02/13/17 350 383
4.625%, 10/15/13 1,050 1,153
4.625%, 10/15/14 170 187
4.375%, 09/15/12 500 540
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,438) 5,704
===========
MORTGAGE-BACKED SECURITIES [7.6%]
American Express Credit Account
Master Trust, Cl A (B)
0.596%, 02/15/13 300 287
Banc of America Alternative Loan
Trust, Ser 2004-2, Cl 5A1
5.500%, 03/25/19 104 98
Banc of America Alternative Loan
Trust, Ser 2005-4, Cl CB11
5.500%, 05/25/35 87 79
Banc of America Alternative Loan
Trust, Ser 2005-6, Cl 7A1
5.500%, 07/25/20 82 73
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Banc of America Alternative Loan
Trust, Ser 2005-9, Cl 1CB3
5.500%, 10/25/35 $ 100 $ 86
Banc of America Alternative Loan
Trust, Ser 2006-2, Cl 6A1
5.500%, 03/25/21 116 98
Bear Stearns Commercial Mortgage
Security, Ser 2007-PW16,
Cl AM (B)
5.717%, 06/11/40 300 138
Capital One Multi-Asset Execution
Trust, Ser 2006-A9, Cl A9 (B)
0.571%, 05/15/13 500 477
Chase Mortgage Finance,
Ser 2003-S13, Cl A11
5.500%, 11/25/33 87 86
Citigroup, Ser 2007-CD4, Cl A2B
5.205%, 12/11/49 150 120
Citigroup Mortgage Loan Trust,
Ser 2005-9, Cl 2A2
5.500%, 11/25/35 88 67
First Horizon Alternative Mortgage
Securities, Ser 2006-FA8, Cl 2A1
5.750%, 02/25/37 117 67
GE Capital Commercial Mortgage,
Ser 2002-3A, Cl A2
4.996%, 12/10/37 150 139
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A4 (B)
5.189%, 07/10/39 200 166
GMAC Commercial Mortgage
Securities, Ser 2003-C1, Cl A2
4.079%, 05/10/36 225 195
GMAC Mortgage Corporation
Loan Trust, Ser 2004-J4, Cl A2
5.500%, 08/25/14 91 89
JPMorgan Alternative Loan Trust,
Ser 2006-S3, Cl A3A
6.000%, 08/25/36 200 84
JPMorgan Chase, Ser 2006-CB17,
Cl ASB
5.415%, 12/12/43 200 167
JPMorgan Mortgage Trust,
Ser 2006-A7, Cl 2A2 (B)
5.793%, 01/25/37 135 77
JPMorgan Mortgage Trust,
Ser 2006-A7, Cl 2A4R (B)
5.420%, 01/25/37 200 86
JPMorgan Mortgage Trust,
Ser 2007-A2, Cl 2A3 (B)
5.686%, 04/25/37 200 97
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 13
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Residential Accredit Loans,
Ser 2004-QS5, Cl A5
4.750%, 04/25/34 $ 39 $ 35
Salomon Brothers Mortgage
Securities VII, Cl A2
7.455%, 07/18/33 162 163
Wachovia Bank Commercial
Mortgage, Ser 2003-C3, Cl A2
4.867%, 02/15/35 150 134
WaMu Mortgage Pass-Through
Certificates, Ser 2004-CB2, Cl 5A
5.000%, 07/25/19 165 154
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $5,420) 3,262
===========
ASSET-BACKED SECURITIES [5.4%]
Bayview Financial Acquisition Trust,
Ser 2007-A, Cl 1A2
6.205%, 04/28/37 200 171
Chase Issuance Trust, Cl A
4.960%, 09/17/12 400 405
CitiFinancial Mortgage Securities,
Ser 2004-1, Cl AF2 (C)
2.645%, 04/25/34 26 24
Cityscape Home Equity Loan Trust,
Ser 1997-C, Cl A4 (C)
7.000%, 07/25/28 10 10
Commercial Mortgage, Ser 2006-C8,
Cl A2B
5.248%, 12/10/46 185 153
Contimortgage Home Equity Loan
Trust, Ser 1997-2, Cl A9
7.090%, 04/15/28 2 2
Countrywide Asset-Backed
Certificates, Ser 2006-11,
Cl 1AF3 (B)
6.050%, 09/25/46 200 76
Countrywide Asset-Backed
Certificates, Ser 2006-13,
Cl 1AF2
5.884%, 01/25/37 200 188
Countrywide Asset-Backed
Certificates, Ser 2007-S1,
Cl A6 (B)
5.693%, 02/25/37 183 53
GMAC Mortgage Corporation Loan
Trust, Ser 2004-GH1, Cl A6 (B)
4.810%, 07/25/35 137 97
Green Tree Financial, Ser 1997-7,
Cl A6
6.760%, 07/15/29 94 74
FACE
AMOUNT
(000)/
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
GSAA Home Equity Trust, Ser 2005-1,
Cl AF2 (B)
4.316%, 11/25/34 $ 93 $ 76
John Deere Owner Trust, Ser 2007-A,
Cl A3
5.040%, 07/15/11 151 151
MBNA Master Credit Card Trust,
Cl A
7.800%, 10/15/12 400 415
RAAC, Ser 2004-SP1, Cl AI4 (B)
5.285%, 08/25/27 131 106
Renaissance Home Equity,
Ser 2007-1, Cl AF2
5.512%, 04/25/37 200 131
Residential Accredit Loans,
Ser 2004-QS6, Cl A1
5.000%, 05/25/19 65 60
Residential Asset Mortgage Products,
Ser 2002-RS3, Cl AI5 (B)
5.572%, 06/25/32 61 39
Residential Asset Securities,
Ser 2003-KS5, Cl AI6 (B)
3.620%, 07/25/33 150 82
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,597) 2,313
===========
FOREIGN GOVERNMENT BOND [0.2%]
National Bank of Hungary
8.875%, 11/01/13 75 79
-----------
TOTAL FOREIGN GOVERNMENT BOND
(Cost $78) 79
===========
MUNICIPAL BOND [0.0%]
LOUISIANA [0.0%]
Louisiana State,Tobacco
Settlement Financing Authority,
Ser 2001A, RB
6.360%, 05/15/25 19 18
-----------
TOTAL MUNICIPAL BOND
(Cost $19) 18
===========
CASH EQUIVALENT [2.6%]
AIM STIT-Treasury Portfolio,
0.17%* 1,116,701 1,117
-----------
TOTAL CASH EQUIVALENT
(Cost $1,117) 1,117
===========
TOTAL INVESTMENTS [99.2%]
(Cost $43,117) $ 42,476
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 14
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA FULL MATURITY FIXED INCOME FUND (CONCLUDED)
DESCRIPTION
PERCENTAGES ARE BASED ON NET ASSETS OF $42,812,587.
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
(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, 2009, THE VALUE OF THESE
SECURITIES AMOUNTED TO $155(000), REPRESENTING 0.4% 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, 2009.
(C) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON MARCH 31, 2009.
CL -- CLASS
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
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 15
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA BALANCED FUND
SECTOR WEIGHTINGS*:
(PERFORMANCE GRAPH)
U.S. Treasury Obligations 16.3%
U.S. Government Agency Obligations 13.3%
Mortgage-Backed Securities 12.6%
Information Technology - Common Stock 7.4%
Health Care - Common Stock 7.2%
Energy - Common Stock 6.4%
Financials - Common Stock 6.1%
Industrials - Common Stock 6.0%
Consumer Discretionary - Common Stock 5.4%
Consumer Staples - Common Stock 5.1%
Cash Equivalent 4.2%
Asset-Backed Securities 2.8%
Telecommunication Services - Common Stock 2.4%
Utilities - Common Stock 2.3%
Materials - Common Stock 1.8%
Corporate Bonds 0.7%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [49.7%]
AEROSPACE & DEFENSE [1.4%]
General Dynamics 273 $ 11
Honeywell International 954 27
ITT 274 11
L-3 Communications Holdings, Cl 3 134 9
Lockheed Martin 624 43
Northrop Grumman 260 11
Raytheon 495 19
United Technologies 744 32
-----------
TOTAL AEROSPACE & DEFENSE 163
===========
APPAREL/TEXTILES [0.2%]
Polo Ralph Lauren, Cl A 490 21
===========
AUTOMOTIVE [0.4%]
Paccar 1,803 46
===========
BANKS [1.2%]
Bank of New York Mellon 2,624 74
M&T Bank 553 25
State Street 1,327 41
-----------
TOTAL BANKS 140
===========
BEAUTY PRODUCTS [0.9%]
Procter & Gamble 2,192 103
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
BIOMEDICAL RESEARCH & PRODUCTS [0.0%]
Quest Diagnostics 106 $ 5
===========
BIOTECHNOLOGY [1.1%]
Amgen* 1,565 78
Biogen Idec* 229 12
Cephalon* 57 4
Gilead Sciences* 804 37
-----------
TOTAL BIOTECHNOLOGY 131
===========
BROADCASTING & CABLE [1.2%]
Cisco Systems* 4,447 75
Harris 442 13
Qualcomm 1,425 55
-----------
TOTAL BROADCASTING & CABLE 143
===========
BUILDING & CONSTRUCTION [0.3%]
DR Horton 3,270 32
BUSINESS SERVICES [0.4%]
Computer Sciences* 837 31
eBay* 403 5
Fidelity National Information Services 145 3
Omnicom Group 259 6
-----------
TOTAL BUSINESS SERVICES 45
===========
CHEMICALS [0.8%]
Air Products & Chemicals 441 25
Eastman Chemical 509 14
EI du Pont de Nemours 965 21
International Flavors & Fragrances 297 9
Monsanto 249 21
Sigma-Aldrich 169 6
-----------
TOTAL CHEMICALS 96
===========
COMMERCIAL BANKS [0.4%]
BB&T 3,050 52
===========
COMMUNICATION & MEDIA [0.9%]
Comcast, Cl A 5,789 79
DIRECTV Group* 299 7
Time Warner 712 14
Time Warner Cable, Cl A 179 4
-----------
TOTAL COMMUNICATION & MEDIA 104
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 16
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMPUTER SOFTWARE [1.4%]
Adobe Systems* 569 $ 12
CA 584 11
Compuware* 490 3
Microsoft 5,392 99
Oracle 1,992 36
-----------
TOTAL COMPUTER SOFTWARE 161
===========
COMPUTER SYSTEM DESIGN & SERVICES [2.5%]
Apple* 681 72
Hewlett-Packard 1,945 62
IBM 1,207 117
Lexmark International, Cl A* 2,393 40
NetApp* 215 3
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 294
===========
COMPUTERS & PERIPHERALS [0.1%]
EMC* 1,270 14
===========
CONSUMER PRODUCTS & SERVICES [0.5%]
Black & Decker 1,002 31
Colgate-Palmolive 170 10
Kimberly-Clark 472 22
-----------
TOTAL CONSUMER PRODUCTS & SERVICES 63
===========
CONTAINERS & PACKAGING [0.3%]
Pactiv* 2,284 33
===========
DIVERSIFIED CONSUMER SERVICES [0.3%]
H&R Block 1,724 31
===========
DIVERSIFIED MANUFACTURING [1.7%]
3M 1,084 54
General Electric 13,796 139
-----------
TOTAL DIVERSIFIED MANUFACTURING 193
===========
DIVERSIFIED METALS & MINING [0.4%]
Newmont Mining 411 18
United States Steel 1,426 30
-----------
TOTAL DIVERSIFIED METALS & MINING 48
===========
DRUGS [4.3%]
Abbott Laboratories 998 48
AmerisourceBergen, Cl A 94 3
Bristol-Myers Squibb 866 19
Forest Laboratories* 587 13
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Johnson & Johnson 3,341 $ 176
Merck 1,867 50
Pfizer 9,065 123
Watson Pharmaceuticals* 433 13
Wyeth 1,202 52
-----------
TOTAL DRUGS 497
===========
ELECTRICAL COMPONENTS & EQUIPMENT [0.1%]
Tyco Electronics 607 7
===========
ELECTRICAL EQUIPMENT [0.1%]
Emerson Electric 349 10
===========
ELECTRICAL SERVICES [1.5%]
American Electric Power 622 16
Duke Energy 1,617 23
Exelon 1,606 73
FPL Group 624 31
NiSource 277 3
Public Service Enterprise Group 402 12
Southern 458 14
-----------
TOTAL ELECTRICAL SERVICES 172
===========
ENERGY [0.8%]
Edison International 1,343 39
Entergy 551 37
PG&E 462 18
-----------
TOTAL ENERGY 94
===========
ENGINEERING SERVICES [0.2%]
Fluor 800 28
===========
ENTERTAINMENT [0.4%]
Carnival 1,303 28
Wyndham Worldwide 3,243 14
-----------
TOTAL ENTERTAINMENT 42
===========
FINANCIAL SERVICES [0.7%]
Discover Financial Services 6,488 41
Hudson City Bancorp 3,743 44
-----------
TOTAL FINANCIAL SERVICES 85
===========
FOOD, BEVERAGE & TOBACCO [2.1%]
Coca-Cola 1,428 63
General Mills 656 33
Kellogg Company 108 4
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 17
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Kraft Foods, Cl A 1,941 $ 43
Pepsi Bottling Group 1,236 27
PepsiCo 985 51
Safeway 997 20
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 241
===========
HEALTHCARE PRODUCTS & SERVICES [0.6%]
Express Scripts, Cl A* 286 13
Medtronic 400 12
PerkinElmer 1,322 17
Thermo Fisher Scientific* 374 13
UnitedHealth Group 546 11
Waters* 79 3
-----------
TOTAL HEALTHCARE PRODUCTS & SERVICES 69
===========
HOUSEHOLD FURNITURE & FIXTURES [0.4%]
Pulte Homes 3,935 43
===========
INSURANCE [1.3%]
Aflac 1,618 31
Chubb 1,743 74
MetLife 692 16
Progressive 563 7
Prudential Financial 1,365 26
-----------
TOTAL INSURANCE 154
===========
INVESTMENT BANKER/BROKER DEALER [2.4%]
JPMorgan Chase 5,026 134
Morgan Stanley 3,476 79
Northern Trust 1,109 66
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 279
===========
MACHINERY [0.5%]
Caterpillar 730 20
Cummins 1,054 27
Dover 253 7
-----------
TOTAL MACHINERY 54
===========
MEDICAL PRODUCTS & SERVICES [1.0%]
Baxter International 206 10
Becton Dickinson 250 17
Boston Scientific* 3,649 29
Hospira* 172 5
St. Jude Medical* 215 8
Stryker 172 6
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
WellPoint* 693 $ 26
Zimmer Holdings* 373 14
-----------
TOTAL MEDICAL PRODUCTS & SERVICES 115
===========
MEDICAL PRODUCTS MANUFACTURING [0.1%]
Covidien 275 9
===========
MULTI-MEDIA [0.3%]
Walt Disney 1,806 33
===========
PAPER & RELATED PRODUCTS [0.0%]
Sealed Air 411 6
===========
PETROLEUM & FUEL PRODUCTS [6.4%]
Anadarko Petroleum 1,895 74
ChevronTexaco 2,548 171
ConocoPhillips 199 8
ENSCO International 1,071 28
Exxon Mobil 3,746 255
Marathon Oil 2,743 72
Murphy Oil 128 6
Nabors Industries* 488 5
Noble 104 3
Noble Energy 683 37
Occidental Petroleum 491 27
Southwestern Energy* 1,991 59
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 745
===========
PRINTING & PUBLISHING [0.5%]
Pitney Bowes 2,109 49
RR Donnelley & Sons 2,119 16
-----------
TOTAL PRINTING & PUBLISHING 65
===========
RAILROADS [0.1%]
Burlington Northern Santa Fe 126 8
CSX 320 8
-----------
TOTAL RAILROADS 16
===========
RETAIL [3.8%]
Big Lots* 2,009 42
CVS Caremark 1,949 53
Family Dollar Stores 515 17
Gap 1,798 23
Home Depot 2,431 57
Kohl's* 275 12
Kroger 1,309 28
Limited Brands 945 8
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 18
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Lowe's 1,193 $ 22
McDonald's 697 38
RadioShack 913 8
Sherwin-Williams 209 11
SYSCO 463 10
TJX 541 14
Wal-Mart Stores 1,840 96
-----------
TOTAL RETAIL 439
===========
SCHOOLS [0.1%]
Apollo Group, Cl A* 172 13
===========
SEMI-CONDUCTORS [0.9%]
Analog Devices 382 7
Intel 4,387 66
Texas Instruments 1,738 29
Xilinx 456 9
-----------
TOTAL SEMI-CONDUCTORS 111
===========
STEEL & STEEL WORKS [0.2%]
Nucor 636 24
===========
TELEPHONES & TELECOMMUNICATIONS [2.5%]
AT&T 4,015 101
CenturyTel 472 13
Corning 864 12
Embarq 102 4
Qwest Communications International 7,347 25
Verizon Communications 4,163 126
Windstream 999 8
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 289
===========
TRANSPORTATION SERVICES [0.3%]
FedEx 407 18
Norfolk Southern 123 4
Union Pacific 227 9
United Parcel Service, Cl B 68 4
-----------
TOTAL TRANSPORTATION SERVICES 35
===========
TRUCKING [0.4%]
Ryder System 1,581 45
===========
WASTE MANAGEMENT SERVICES [0.3%]
Waste Management 1,274 33
===========
SHARES/
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
WEB PORTALS/ISP [0.8%]
Amazon.com* 191 $ 14
Google, Cl A* 189 66
Juniper Networks* 283 4
VeriSign* 297 6
-----------
TOTAL WEB PORTALS/ISP 90
===========
WHOLESALE [0.2%]
Archer-Daniels-Midland 707 20
Campbell Soup 221 6
-----------
TOTAL WHOLESALE 26
===========
TOTAL COMMON STOCK
(Cost $7,296) 5,787
===========
U.S. TREASURY OBLIGATIONS [16.2%]
U.S. Treasury Bonds
9.125%, 05/15/18 $ 100 151
6.250%, 08/15/23 750 987
U.S. Treasury Note
3.125%, 08/31/13 700 749
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,718) 1,887
===========
U.S. GOVERNMENT AGENCY OBLIGATION [13.2%]
FNMA
6.000%, 05/15/11 1,400 1,535
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $1,515) 1,535
===========
MORTGAGE-BACKED SECURITIES [12.5%]
American Express Credit Account
Master Trust, Cl A (A)
0.596%, 02/15/13 125 119
Banc of America Alternative Loan
Trust, Ser 2005-6, Cl 7A1
5.500%, 07/25/20 27 24
Capital One Multi-Asset Execution
Trust, Ser 2006-A9, Cl A9 (A)
0.571%, 05/15/13 100 95
Chase Mortgage Finance,
Ser 2003-S14, Cl 3A6
5.500%, 01/25/34 36 37
Citicorp Mortgage Securities,
Ser 2004-4, Cl A5
5.500%, 06/25/34 124 119
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 19
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA BALANCED FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Citigroup Mortgage Loan Trust,
Ser 2005-9, Cl 2A2
5.500%, 11/25/35 $ 44 $ 34
Countrywide Alternative Loan
Trust, Ser 2005-50CB, Cl 4A1
5.000%, 11/25/20 27 22
Countrywide Alternative Loan
Trust, Ser 2006-7CB, Cl 3A1
5.250%, 05/25/21 43 30
Credit-Based Asset Servicing and
Securitization, Ser 2005-CB8,
Cl AF2 (C)
5.300%, 12/25/35 38 33
Discover Card Master Trust I,
Ser 2003-3, Cl A (A)
0.760%, 07/15/08 150 145
First Horizon CMO, Ser 2006-FA6,
Cl 3A1
5.750%, 11/25/21 57 53
First Union National Bank CMO,
Ser 2001-C4, Cl A2
6.223%, 12/12/33 50 49
GE Capital Commercial Mortgage,
Ser 2002-3A, Cl A2
4.996%, 12/10/37 100 93
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A4 (A)
5.189%, 07/10/39 75 62
GMAC Commercial Mortgage
Securities, Ser 2003-C1, Cl A2
4.079%, 05/10/36 100 87
GMAC Mortgage Corporation
Loan Trust, Ser 2004-HE5,
Cl A6 (A)
4.390%, 08/25/08 66 40
GMAC Mortgage Corporation
Loan Trust, Ser 2004-J4, Cl A2
5.500%, 08/25/14 45 44
JPMorgan Mortgage Trust,
Ser 2006-A7, Cl 2A4R (A)
5.420%, 01/25/37 100 43
JPMorgan Mortgage Trust,
Ser 2007-A2, Cl 2A3 (A)
5.686%, 04/25/37 100 48
MBNA Master Credit Card Trust,
Cl A
7.800%, 10/15/12 125 130
RAAC, Ser 2004-SP1, Cl AI4 (A)
5.285%, 08/25/27 65 53
Residential Accredit Loans,
Ser 2004-QS5, Cl A5
4.750%, 04/25/34 20 18
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Residential Funding Mortgage
Securities I, Ser 2003-S11,
Cl A2
4.000%, 06/25/18 $ 75 $ 72
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,690) 1,450
===========
ASSET-BACKED SECURITIES [2.8%]
Bayview Financial Acquisition Trust,
Ser 2007-A, Cl 1A2
6.205%, 04/28/37 100 86
Chase Issuance Trust, Cl A (A)
0.566%, 04/15/09 100 95
Countrywide Asset-Backed
Certificates, Ser 2005-13,
Cl AF2 (A)
5.294%, 04/25/36 26 26
GMAC Mortgage Corporation
Loan Trust, Ser 2004-GH1,
Cl A6 (A)
4.810%, 07/25/35 68 48
Residential Accredit Loans,
Ser 2004-QS6, Cl A1
5.000%, 05/25/19 22 20
Residential Asset Mortgage Products,
Ser 2002-RS3, Cl AI5 (A)
5.572%, 06/25/32 71 45
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $384) 320
===========
CORPORATE BONDS [0.7%]
BANKS [0.3%]
Dresdner Bank - New York
7.250%, 09/15/15 50 42
===========
CONTAINERS & PACKAGING [0.4%]
Pactiv
7.950%, 12/15/25 50 43
===========
TOTAL CORPORATE BONDS
(Cost $109) 85
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 20
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA BALANCED FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CASH EQUIVALENT [4.1%]
AIM STIT-Treasury Portfolio,
0.17% (B) 481,684 $ 482
===========
TOTAL CASH EQUIVALENT
(Cost $482) 482
===========
TOTAL INVESTMENTS [99.2%]
(Cost $13,194) $ 11,546
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $11,637,051.
* NON-INCOME PRODUCING SECURITY.
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS
IS THE RATE IN EFFECT ON MARCH, 31, 2009.
(B) THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
(C) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON MARCH 31, 2009.
CL -- CLASS
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
ISP -- INTERNET SERVICE PROVIDER
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 21
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA DIVERSIFIED EQUITY FUND
(PERFORMANCE GRAPH)
SECTOR WEIGHTINGS*:
Information Technology 17.6%
Health Care 14.9%
Energy 12.9%
Consumer Staples 12.1%
Financials 12.0%
Consumer Discretionary 9.7%
Industrials 7.5%
Telecommunication Services 5.0%
Materials 3.7%
Cash Equivalent 2.5%
Utilities 2.1%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [97.6%]
AEROSPACE & DEFENSE [0.7%]
General Dynamics 1,101 $ 46
Goodrich 223 8
Honeywell International 3,471 97
L-3 Communications Holdings,
Cl 3 510 35
Lockheed Martin 600 41
Northrop Grumman 1,561 68
Raytheon 575 22
United Technologies 1,922 83
-----------
TOTAL AEROSPACE & DEFENSE 400
===========
APPAREL/TEXTILES [0.1%]
Polo Ralph Lauren, Cl A 1,674 71
===========
AUTOMOTIVE [0.2%]
Paccar 5,700 147
===========
BANKS [2.8%]
Bank of New York Mellon 18,278 516
IntercontinentalExchange* 2,360 176
M&T Bank 5,749 260
State Street 4,125 127
SunTrust Banks 4,500 53
US Bancorp 24,600 360
Wells Fargo 10,200 145
-----------
TOTAL BANKS 1,637
===========
BEAUTY PRODUCTS [0.7%]
Procter & Gamble 8,720 411
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
BIOMEDICAL RESEARCH & PRODUCTS [0.9%]
Celgene* 5,590 $ 248
Quest Diagnostics 6,165 293
-----------
TOTAL BIOMEDICAL RESEARCH & PRODUCTS 541
===========
BIOTECHNOLOGY [2.0%]
Amgen* 4,917 244
Biogen Idec* 748 39
Cephalon* 179 12
Gilead Sciences* 16,085 745
Myriad Genetics* 3,100 141
-----------
TOTAL BIOTECHNOLOGY 1,181
===========
BROADCASTING & CABLE [2.3%]
Cisco Systems* 29,734 499
F5 Networks* 4,220 88
Harris 2,822 82
Qualcomm 17,462 679
-----------
TOTAL BROADCASTING & CABLE 1,348
===========
BUILDING & CONSTRUCTION [0.1%]
DR Horton 8,102 79
===========
BUSINESS SERVICES [0.9%]
Computer Sciences* 2,647 97
eBay* 1,515 19
Fidelity National Information Services 503 9
Omnicom Group 965 23
Visa, Cl A 5,360 298
Xerox 19,100 87
-----------
TOTAL BUSINESS SERVICES 533
===========
CHEMICALS [1.2%]
Air Products & Chemicals 1,474 83
Eastman Chemical 1,774 48
EI du Pont de Nemours 3,501 78
International Flavors & Fragrances 1,197 36
Monsanto 5,385 448
Sigma-Aldrich 637 24
-----------
TOTAL CHEMICALS 717
===========
COMMERCIAL BANKS [0.2%]
BB&T 7,236 122
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 22
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMUNICATION & MEDIA [1.5%]
Cablevision Systems, Cl A 12,820 $ 166
Comcast, Cl A 16,015 218
Time Warner 19,354 374
Time Warner Cable, Cl A 4,858 120
-----------
TOTAL COMMUNICATION & MEDIA 878
===========
COMPUTER SOFTWARE [2.0%]
Adobe Systems* 6,511 139
CA 1,675 29
Compuware* 1,446 10
Microsoft 22,733 418
Oracle 31,978 578
-----------
TOTAL COMPUTER SOFTWARE 1,174
===========
COMPUTER SYSTEM DESIGN & SERVICES [5.5%]
Apple* 7,727 812
Dell* 25,500 242
Hewlett-Packard 17,977 576
IBM 15,787 1,530
Lexmark International, Cl A* 5,812 98
NetApp* 833 12
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 3,270
===========
COMPUTERS & PERIPHERALS [0.5%]
EMC* 24,807 283
===========
CONSUMER PRODUCTS & SERVICES [2.0%]
Black & Decker 3,805 120
Clorox 9,380 483
Colgate-Palmolive 5,504 324
Kimberly-Clark 1,752 81
Mattel 13,700 158
-----------
TOTAL CONSUMER PRODUCTS & SERVICES 1,166
===========
CONTAINERS & PACKAGING [0.5%]
Crown Holdings* 9,100 207
Pactiv* 7,220 105
-----------
TOTAL CONTAINERS & PACKAGING 312
===========
DISTRIBUTORS [0.2%]
Genuine Parts 3,400 102
===========
DIVERSIFIED CONSUMER SERVICES [0.2%]
H&R Block 5,450 99
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
DIVERSIFIED MANUFACTURING [2.3%]
3M 10,363 $ 515
General Electric 63,919 646
Parker Hannifin 6,700 228
-----------
TOTAL DIVERSIFIED MANUFACTURING 1,389
===========
DIVERSIFIED METALS & MINING [0.8%]
BHP Billiton, ADR 4,970 221
Freeport-McMoRan Copper & Gold, Cl B 3,300 126
Newmont Mining 1,201 54
United States Steel 4,509 95
-----------
TOTAL DIVERSIFIED METALS & MINING 496
===========
DRUGS [6.7%]
Abbott Laboratories 14,657 699
Allergan 3,020 144
AmerisourceBergen, Cl A 409 13
Bristol-Myers Squibb 2,913 64
Forest Laboratories* 2,212 48
Johnson & Johnson 18,028 948
Merck 6,714 180
Mylan* 26,400 354
Pfizer 24,925 339
Roche Holding, ADR 6,300 217
Schering-Plough 6,400 151
Teva Pharmaceutical Industries 3,750 169
Watson Pharmaceuticals* 1,466 46
Wyeth 13,914 599
-----------
TOTAL DRUGS 3,971
===========
ELECTRICAL COMPONENTS & EQUIPMENT [0.0%]
Tyco Electronics 2,205 24
===========
ELECTRICAL EQUIPMENT [0.4%]
Baldor Electric 13,100 190
Emerson Electric 1,068 30
-----------
TOTAL ELECTRICAL EQUIPMENT 220
===========
ELECTRICAL SERVICES [1.3%]
American Electric Power 2,321 58
Duke Energy 6,012 86
Exelon 4,687 213
First Solar* 1,500 199
FPL Group 2,244 114
NiSource 831 8
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 23
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Public Service Enterprise Group 1,552 $ 46
Southern 2,262 69
-----------
TOTAL ELECTRICAL SERVICES 793
===========
ENERGY [0.5%]
Atmos Energy 3,000 70
Edison International 4,928 142
Entergy 987 67
PG&E 760 29
-----------
TOTAL ENERGY 308
===========
ENGINEERING SERVICES [0.1%]
Fluor 1,953 67
===========
ENTERTAINMENT [0.5%]
Carnival 4,921 106
Darden Restaurants 2,830 97
Wynn Resorts* 5,040 101
-----------
TOTAL ENTERTAINMENT 304
===========
FINANCIAL SERVICES [1.2%]
Discover Financial Services 20,510 129
Hudson City Bancorp 7,036 82
Nasdaq Stock Market* 16,300 319
Western Union 13,650 172
-----------
TOTAL FINANCIAL SERVICES 702
===========
FOOD, BEVERAGE & TOBACCO [5.3%]
Coca-Cola 14,406 633
ConAgra Foods 22,400 378
Del Monte Foods 43,000 313
General Mills 10,798 539
Pepsi Bottling Group 4,379 97
PepsiCo 21,630 1,114
Safeway 3,634 73
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 3,147
===========
GAS/NATURAL GAS [0.3%]
Questar 5,510 162
===========
HEALTHCARE PRODUCTS & SERVICES [1.5%]
Express Scripts, Cl A* 3,388 156
McKesson 6,900 242
Medtronic 12,097 357
PerkinElmer 5,355 68
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Thermo Fisher Scientific* 1,302 $ 47
UnitedHealth Group 1,713 36
Waters* 247 9
-----------
TOTAL HEALTHCARE PRODUCTS & SERVICES 915
===========
HOUSEHOLD FURNITURE & FIXTURES [1.0%]
NVR* 515 220
Pulte Homes 33,930 371
-----------
TOTAL HOUSEHOLD FURNITURE & FIXTURES 591
===========
INDUSTRIAL [0.3%]
Robert Half International 8,340 149
===========
INSURANCE [4.2%]
Aflac 5,639 109
Chubb 13,011 551
Cincinnati Financial 666 15
DaVita* 3,600 158
HCC Insurance Holdings 16,200 408
Laboratory Corp of America Holdings* 3,500 205
Marsh & McLennan 19,810 401
MetLife 2,643 60
Patterson* 12,700 240
Progressive 1,950 26
Prudential Financial 5,347 102
Torchmark 770 20
Travelers 387 16
Unum Group 13,300 166
-----------
TOTAL INSURANCE 2,477
===========
INVESTMENT BANKER/BROKER DEALER [4.4%]
BlackRock, Cl A 3,240 421
Goldman Sachs Group 2,420 257
JPMorgan Chase 21,142 562
Morgan Stanley 20,664 470
Northern Trust 10,175 609
T Rowe Price Group 9,630 278
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 2,597
===========
MACHINERY [0.4%]
Caterpillar 7,418 207
Cummins 577 15
Dover 863 23
-----------
TOTAL MACHINERY 245
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 24
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
MANUFACTURING [0.5%]
Tyco International 16,050 $ 314
===========
MEDICAL PRODUCTS & SERVICES [2.1%]
Baxter International 8,897 456
Becton Dickinson 527 36
Boston Scientific* 13,417 107
Hospira* 656 20
Intuitive Surgical* 800 76
St. Jude Medical* 4,602 167
Stryker 7,819 266
WellPoint* 2,507 95
Zimmer Holdings* 1,281 47
-----------
TOTAL MEDICAL PRODUCTS & SERVICES 1,270
===========
MEDICAL PRODUCTS MANUFACTURING [0.6%]
Covidien 11,175 371
===========
METALS & MINING [0.5%]
Barrick Gold 9,000 292
===========
MULTI-MEDIA [0.2%]
Walt Disney 4,928 89
===========
OFFICE EQUIPMENT & SUPPLIES [0.2%]
Avery Dennison 4,700 105
===========
OFFICE FURNITURE & FIXTURES [0.2%]
Salesforce.com* 3,380 111
===========
PAPER & RELATED PRODUCTS [0.5%]
International Paper 1,376 10
Sealed Air 20,221 279
-----------
TOTAL PAPER & RELATED PRODUCTS 289
===========
PETROLEUM & FUEL PRODUCTS [13.0%]
Anadarko Petroleum 15,117 588
Cameron International* 11,090 243
Chesapeake Energy 24,500 418
ChevronTexaco 11,553 777
ConocoPhillips 8,863 347
Enbridge 7,180 207
ENSCO International 3,386 89
Exterran Holdings* 14,200 227
Exxon Mobil 13,323 907
Marathon Oil 5,841 154
Murphy Oil 488 22
Nabors Industries* 12,809 128
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Noble 344 $ 8
Noble Energy 704 38
Occidental Petroleum 7,947 442
Peabody Energy 12,330 309
PetroHawk Energy* 10,180 196
Petroleo Brasileiro, ADR 6,620 202
Royal Dutch Shell, Cl B 7,300 318
Southwestern Energy* 17,175 510
Spectra Energy 18,300 259
Transocean* 8,420 495
Unit* 9,600 201
Valero Energy 5,200 93
Weatherford International* 21,110 234
Williams 22,550 257
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 7,669
===========
PRINTING & PUBLISHING [0.3%]
Pitney Bowes 4,417 103
RR Donnelley & Sons 7,996 59
-----------
TOTAL PRINTING & PUBLISHING 162
===========
RAILROADS [0.1%]
Burlington Northern Santa Fe 482 29
CSX 1,174 30
-----------
TOTAL RAILROADS 59
===========
REAL ESTATE INVESTMENT TRUST [0.1%]
Plum Creek Timber 1,976 57
===========
REAL ESTATE MANAGEMENT & DEVELOPMENT [0.5%]
Brookfield Asset Management,
Cl A 20,200 278
===========
RETAIL [8.7%]
Best Buy 14,795 562
Big Lots* 6,351 132
CVS 21,482 590
Family Dollar Stores 2,895 97
Gap 5,793 75
Guess ? 5,260 111
Home Depot 5,838 137
Kohl's* 14,822 627
Kroger 4,433 94
Limited Brands 3,763 33
Lowe's 15,680 286
McDonald's 2,169 118
RadioShack 3,003 26
Sherwin-Williams 779 40
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 25
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA DIVERSIFIED EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Staples 17,650 $ 320
Supervalu 19,800 283
SYSCO 10,533 240
TJX 1,897 49
Walgreen 10,700 278
Wal-Mart Stores 17,023 887
Whole Foods Market 3,280 55
Yum! Brands 4,590 126
-----------
TOTAL RETAIL 5,166
===========
SEMI-CONDUCTORS [3.1%]
Analog Devices 1,246 24
Applied Materials 48,240 519
Broadcom, Cl A* 11,360 227
Intel 43,745 658
Lam Research* 12,420 283
Texas Instruments 6,345 105
Xilinx 1,939 37
-----------
TOTAL SEMI-CONDUCTORS 1,853
===========
STEEL & STEEL WORKS [0.1%]
Nucor 1,807 69
===========
TELECOMMUNICATIONS EQUIPMENT [0.5%]
Nokia, ADR 24,600 287
===========
TELEPHONES & TELECOMMUNICATIONS [5.1%]
American Tower, Cl A* 8,160 248
AT&T 42,160 1,063
CenturyTel 1,749 49
China Mobile, ADR 8,580 373
China Unicom Hong Kong, ADR 16,710 174
Corning 3,151 42
Embarq 372 14
MetroPCS Communications* 11,830 202
Qwest Communications International 28,508 98
Verizon Communications 23,876 721
Windstream 3,815 31
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 3,015
===========
TRANSPORTATION SERVICES [1.3%]
FedEx 6,504 289
Norfolk Southern 480 16
Union Pacific 5,552 228
United Parcel Service, Cl B 4,300 212
-----------
TOTAL TRANSPORTATION SERVICES 745
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
TRUCKING [0.2%]
Ryder System 4,998 $ 141
===========
WASTE MANAGEMENT SERVICES [0.2%]
Waste Management 4,533 116
===========
WATER UTILITIES [0.3%]
Aqua America 9,880 198
===========
WEB PORTALS/ISP [3.1%]
Amazon.com* 6,736 495
Google, Cl A* 2,074 722
Juniper Networks* 1,715 26
Symantec* 32,100 479
VeriSign* 6,394 121
-----------
TOTAL WEB PORTALS/ISP 1,843
===========
WHOLESALE [0.5%]
Archer-Daniels-Midland 9,321 259
Campbell Soup 790 22
-----------
TOTAL WHOLESALE 281
===========
TOTAL COMMON STOCK
(Cost $74,911) 57,808
===========
CASH EQUIVALENT [2.5%]
AIM STIT-Treasury Portfolio, 0.170%** 1,474,696 1,475
===========
TOTAL CASH EQUIVALENT
(Cost $1,475) 1,475
===========
TOTAL INVESTMENTS [100.1%]
(Cost $76,386) $ 59,283
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $59,215,410.
* NON-INCOME PRODUCING SECURITY.
** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
ISP -- INTERNET SERVICE PROVIDER
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 26
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA SOCIALLY RESPONSIBLE EQUITY FUND
SECTOR WEIGHTINGS*:
(PERFORMANCE GRAPH)
Financials 17.6%
Energy 16.5%
Health Care 15.9%
Consumer Staples 12.9%
Information Technology 9.3%
Cash Equivalent 7.2%
Industrials 6.8%
Materials 6.5%
Telecommunication Services 4.0%
Consumer Discretionary 3.3%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [92.5%]
ADVERTISING [1.2%]
CBS, Cl B 117,000 $ 449
===========
BANKS [6.1%]
BOK Financial 10,000 345
IntercontinentalExchange* 7,000 521
US Bancorp 54,000 789
Wells Fargo 40,000 570
-----------
TOTAL BANKS 2,225
===========
BIOMEDICAL RESEARCH & PRODUCTS [3.8%]
Quest Diagnostics 29,000 1,377
===========
CHEMICALS [2.9%]
EI du Pont de Nemours 47,000 1,050
===========
COMPUTER SOFTWARE [1.1%]
Microsoft 21,000 386
===========
COMPUTER SYSTEM DESIGN & SERVICES [1.7%]
Dell* 67,000 635
===========
CONSUMER PRODUCTS & SERVICES [5.4%]
Clorox 20,500 1,056
Kimberly-Clark 20,000 922
-----------
TOTAL CONSUMER PRODUCTS & SERVICES 1,978
===========
DISTRIBUTORS [2.1%]
Genuine Parts 25,000 747
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
DRUGS [1.9%]
Johnson & Johnson 13,000 $ 684
===========
ELECTRICAL EQUIPMENT [2.8%]
Baldor Electric 30,000 435
Emerson Electric 21,000 600
-----------
TOTAL ELECTRICAL EQUIPMENT 1,035
===========
FINANCIAL SERVICES [2.8%]
Nasdaq Stock Market* 53,000 1,038
===========
FOOD, BEVERAGE & TOBACCO [1.8%]
Kraft Foods, Cl A 29,000 646
===========
HEALTHCARE PRODUCTS & SERVICES [3.8%]
Cardinal Health 18,000 567
McKesson 23,000 806
-----------
TOTAL HEALTHCARE PRODUCTS & SERVICES 1,373
===========
INSURANCE [6.3%]
Laboratory Corp of America
Holdings* 11,700 685
Marsh & McLennan 48,500 982
Patterson* 34,000 641
-----------
TOTAL INSURANCE 2,308
===========
MANUFACTURING [2.5%]
Tyco International 45,875 897
===========
MEDICAL PRODUCTS MANUFACTURING [2.8%]
Covidien 30,575 1,016
===========
METALS & MINING [1.7%]
Worthington Industries 70,000 610
===========
OFFICE EQUIPMENT & SUPPLIES [1.5%]
Avery Dennison 25,000 558
===========
PAPER & RELATED PRODUCTS [1.9%]
Packaging Corp of America 53,500 697
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 27
schedule of investments
MARCH 31, 2009 (UNAUDITED)
AHA SOCIALLY RESPONSIBLE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
PETROLEUM & FUEL PRODUCTS [16.4%]
Chesapeake Energy 80,000 $ 1,365
ConocoPhillips 25,000 979
Exterran Holdings* 39,000 625
Patterson-UTI Energy 119,000 1,066
Spectra Energy 72,000 1,018
Unit* 45,000 941
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 5,994
===========
REAL ESTATE INVESTMENT TRUST [2.8%]
AMB Property 72,000 1,037
===========
REAL ESTATE MANAGEMENT & DEVELOPMENT [3.0%]
Brookfield Asset Management,
Cl A 80,000 1,102
===========
RETAIL [5.7%]
Supervalu 87,000 1,242
Walgreen 31,500 818
-----------
TOTAL RETAIL 2,060
===========
SEMI-CONDUCTORS [2.4%]
Intel 59,000 888
===========
TELECOMMUNICATIONS EQUIPMENT [3.0%]
Nokia, ADR 93,000 1,085
===========
TELEPHONES & TELECOMMUNICATIONS [4.0%]
AT&T 29,000 731
Verizon Communications 24,000 725
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 1,456
===========
WEB PORTALS/ISP [1.1%]
Symantec* 27,000 403
-----------
TOTAL COMMON STOCK
(Cost $53,350) 33,734
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CASH EQUIVALENT [7.2%]
AIM STIT-Treasury Portfolio,
0.170%** 2,619,441 $ 2,619
-----------
TOTAL CASH EQUIVALENT
(Cost $2,619) 2,619
===========
TOTAL INVESTMENTS [99.7%]
(Cost $55,974) $ 36,353
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $36,454,461.
* NON-INCOME PRODUCING SECURITY.
** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
ISP -- INTERNET SERVICE PROVIDER
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 28
statements of assets and liabilities (000)
MARCH 31, 2009 (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 $ 37,941 $ 43,117 $ 13,194 $ 76,386 $ 55,974
----------- ----------- ----------- ----------- -----------
Investments in securities at value $ 37,138 $ 42,476 $ 11,546 $ 59,283 $ 36,353
Dividend and interest receivable 368 440 62 70 54
Receivable for capital shares sold 70 6 -- 2 98
Cash -- 1 -- -- --
Receivable for investment securities sold -- 235 38 44 --
Prepaid Expenses 4 2 1 3 2
----------- ----------- ----------- ----------- -----------
Total Assets 37,580 43,160 11,647 59,402 36,507
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Investment advisor fees payable 15 18 7 36 22
Distribution fees payable 2 1 -- 1 1
Administrative fees payable 1 2 -- 2 1
Payable for capital shares redeemed 1,137 -- -- 2 4
Income distribution payable 91 146 -- -- --
Payable for investment securities --
purchased -- 166 -- 123 --
Other accrued expenses 38 14 3 23 25
----------- ----------- ----------- ----------- -----------
Total Liabilities 1,284 347 10 187 53
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 36,296 $ 42,813 $ 11,637 $ 59,215 $ 36,454
=========== =========== =========== =========== ===========
NET ASSETS:
Paid-in Capital
(unlimited authorization --
$0.01 par value) $ 39,687 $ 43,617 $ 15,765 $ 100,727 $ 62,641
Undistributed (distributions in excess of)
net investment income (8) 1 -- (21) 10
Accumulated net realized loss
on investments (2,580) (164) (2,480) (24,388) (6,576)
Net unrealized depreciation
on investments (803) (641) (1,648) (17,103) (19,621)
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 36,296 $ 42,813 $ 11,637 $ 59,215 $ 36,454
=========== =========== =========== =========== ===========
Institutional Class Shares ($ Dollars):
Net Assets $35,420,848 $42,091,377 $11,637,051 $54,701,394 $35,687,225
Total shares outstanding at end of period 3,306,083 4,179,962 1,890,420 6,382,042 6,017,518
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 10.71 $ 10.07 $ 6.16 $ 8.57 $ 5.93
Class N Shares ($ Dollars):
Net Assets $ 875,244 $ 721,210 N/A $ 4,514,016 $ 767,236
Total shares outstanding at end of period 81,592 71,648 N/A 525,159 129,536
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 10.73 $ 10.07 N/A $ 8.60 $ 5.92
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 29
statements of operations (000)
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED)
AHA Limited Maturity Fixed AHA Full Maturity Fixed
Income Fund Income Fund
-------------------------- -----------------------
INVESTMENT INCOME:
Interest $ 714 $1,020
Dividends 4 3
Foreign taxes withheld -- --
------ ------
Total Investment Income 718 1,023
------ ------
EXPENSES:
Investment Advisory Fees 98 106
Administration Fees 9 10
Trustees' Fees and Expenses 1 1
Shareholder Servicing Fees -- Class N Shares 1 1
Distribution Expense -- Class N Shares 1 1
Transfer Agent Fees and Expenses 24 16
Custodian Fees and Expenses 8 5
Reports to Shareholders 7 7
Registration Fees 2 1
Professional Fees 2 3
Insurance and Other Expenses 8 3
------ ------
Total Expenses 161 154
------ ------
Recovery of Investment Advisory Fees
Previously Waived(1) -- --
Less Waiver of:
Shareholder Servicing Fees -- Class N Shares -- (1)
Distribution Expenses -- Class N Shares (1) --
Advisory Fees (11) --
Transfer Agent Fees (1) (2)
------ ------
Net Expenses 148 151
------ ------
NET INVESTMENT INCOME 570 872
------ ------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Investments (174) 375
Change in Net Unrealized Appreciation/(Depreciation)
on Investments 973 347
------ ------
Net Realized and Unrealized
Gain/(Loss) on Investments 799 722
------ ------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $1,369 $1,594
====== ======
(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 30
AHA Socially Responsible
AHA Balanced Fund AHA Diversified Equity Fund Equity Fund
- ----------------- --------------------------- ------------------------
$ 120 $ -- $ --
92 755 587
-- (3) (4)
------- -------- --------
212 752 583
------- -------- --------
45 233 148
3 14 9
-- 1 1
-- 6 1
-- 6 1
4 27 18
2 8 6
1 9 8
-- 1 1
1 4 2
1 5 2
------- -------- --------
57 314 197
------- -------- --------
3 -- --
-- (1) (1)
-- (5) --
-- -- --
-- (3) (2)
------- -------- --------
60 305 194
------- -------- --------
152 447 389
------- -------- --------
(1,742) (16,297) (5,353)
(645) (8,025) (15,305)
------- -------- --------
(2,387) (24,322) (20,658)
------- -------- --------
$(2,235) $(23,875) $(20,269)
======= ======== ========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 31
statements of changes in net assets (000)
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED)
AND THE YEAR ENDED SEPTEMBER 30, 2008
AHA Limited Maturity AHA Full Maturity
Fixed Income Fund Fixed Income Fund
-------------------- -------------------
2009 2008 2009 2008
-------- -------- -------- -------
OPERATIONS:
Net Investment Income $ 570 $ 2,643 $ 872 $ 1,884
Net Realized Gain (Loss) on Investments Sold (174) 175 375 (124)
Change in Net Unrealized Appreciation
(Depreciation) on Investments 973 (1,857) 347 (1,027)
-------- -------- -------- -------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations 1,369 961 1,594 733
-------- -------- -------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to Shareholders from Net Investment Income:
INSTITUTIONAL CLASS (569) (2,664) (857) (1,867)
CLASS N (9) (12) (13) (25)
Distributions to Shareholders from Net Realized Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS N -- -- -- --
-------- -------- -------- -------
Total Dividends and Distributions to Shareholders (578) (2,676) (870) (1,892)
-------- -------- -------- -------
FUND SHARE TRANSACTIONS:
FUND SHARE TRANSACTIONS: INSTITUTIONAL CLASS
Net Proceeds from Shares Sold 2,015 63,962 120 332
Reinvestment of Dividends 386 2,170 681 1,285
Cost of Shares Redeemed (60,443) (16,107) (2,002) --
-------- -------- -------- -------
Total Fund Share Transactions Institutional Class (58,042) 50,025 (1,201) 1,617
-------- -------- -------- -------
FUND SHARE TRANSACTIONS: CLASS N
Net Proceeds from Shares Sold 487 417 138 597
Reinvestment of Dividends 9 12 9 16
Cost of Shares Redeemed (62) (301) (123) (136)
-------- -------- -------- -------
Total Fund Share Transactions Class N 434 128 24 477
-------- -------- -------- -------
Net Increase (Decrease) in Net Assets from
Capital Share Contributions (57,608) 50,153 (1,177) 2,094
-------- -------- -------- -------
Total Increase (Decrease) in Net Assets (56,817) 48,438 (453) 935
-------- -------- -------- -------
NET ASSETS:
Beginning of period 93,113 44,675 43,266 42,331
-------- -------- -------- -------
End of period* 36,296 93,113 42,813 43,266
======== ======== ======== =======
* Including Undistributed (Distributions in excess of)
Net Investment Income of $ (8) $ -- $ 1 $ (1)
======== ======== ======== =======
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 32
AHA Balanced AHA Diversified AHA Socially Responsible
Fund Equity Fund Equity Fund
- ------------------- --------------------- ------------------------
2009 2008 2009 2008 2009 2008
- ------- -------- -------- --------- -------- --------
$ 152 $ 367 $ 447 $ 915 $ 389 $ 832
(1,742) (591) (16,297) (5,928) (5,353) (1,221)
(645) (1,808) (8,025) (18,893) (15,305) (9,649)
- ------- -------- -------- --------- -------- --------
(2,235) (2,032) (23,875) (23,906) (20,269) (10,038)
- ------- -------- -------- --------- -------- --------
(156) (375) (455) (862) (423) (795)
-- -- (31) (66) (8) (10)
-- (890) -- (12,355) -- (2,724)
-- -- -- (1,315) -- (37)
- ------- -------- -------- --------- -------- --------
(156) (1,265) (486) (14,598) (431) (3,566)
- ------- -------- -------- --------- -------- --------
-- -- 4,918 9,453 5,435 17,318
156 284 410 8,905 423 3,519
-- -- (3,331) (10,675) (3,111) (10,663)
- ------- -------- -------- --------- -------- --------
156 284 1,997 7,683 2,747 10,174
- ------- -------- -------- --------- -------- --------
-- -- 102 349 436 491
-- -- 30 1,360 8 47
-- -- (652) (1,421) (178) (198)
- ------- -------- -------- --------- -------- --------
-- -- (520) 288 266 340
- ------- -------- -------- --------- -------- --------
156 284 1,477 7,971 3,013 10,514
- ------- -------- -------- --------- -------- --------
(2,235) (3,013) (22,884) (30,533) (17,687) (3,090)
- ------- -------- -------- --------- -------- --------
13,872 16,885 82,099 112,632 54,141 57,231
- ------- -------- -------- --------- -------- --------
11,637 13,872 59,215 82,099 36,454 54,141
======= ======== ======== ========= ======== ========
$ -- $ 4 $ (21) $ 18 $ 10 $ 52
======= ======== ======== ========= ======== ========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 33
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (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
OF PERIOD INCOME(1)(3) INVESTMENIS(1) INCOME GAINS OF PERIOD
--------- ------------ -------------- ---------- ------------- ---------
AHA Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on December 22,1988)
2009* $10.49 $0.16 $ 0.23 $(0.17) $ -- $10.71
2008 10.59 0.37 (0.10) (0.37) -- 10.49
2007 10.56 0.45 0.03 (0.45) -- 10.59
2006# 10.57 0.34 0.02 (0.37) -- 10.56
For the period July 1, through September 30,
2005+ 10.61 0.06 (0.04) (0.06) -- 10.57
For the years ended June 30,
2005 10.68 0.22 (0.06) (0.22)(4) (0.01) 10.61
2004 10.86 0.18 (0.18) (0.18) -- 10.68
Class N (commenced operations on October 22, 2004)
2009* $10.51 $0.14 $ 0.23 $(0.15) $ -- $10.73
2008 10.61 0.35 (0.10) (0.35) -- 10.51
2007 10.57 0.42 0.04 (0.42) -- 10.61
2006# 10.58 0.30 0.03 (0.34) -- 10.57
For the period July 1, through September 30,
2005+ 10.62 0.05 (0.04) (0.05) -- 10.58
For the period October 22, 2004 through June 30,
2005 10.77 0.14 (0.13) (0.15)(4) (0.01) 10.62
AHA Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2009* $ 9.90 $0.19 $ 0.18 $(0.20) $ -- $10.07
2008 10.16 0.44 (0.26) (0.44) -- 9.90
2007 10.16 0.45 -- (0.45) -- 10.16
2006## 10.35 0.43 (0.13) (0.43) (0.06) 10.16
For the period July 1, through September 30,
2005+ 10.50 0.09 (0.15) (0.09) -- 10.35
For the years ended June 30,
2005 10.39 0.38 0.20 (0.38) (0.09) 10.50
2004 10.87 0.36(7) (0.36) (0.39) (0.09) 10.39
Class N (commenced operations on May 11, 2004)
2009* $ 9.89 $0.21 $ 0.16 $(0.19) $ -- $10.07
2008 10.16 0.42 (0.27) (0.42) -- 9.89
2007 10.16 0.42 -- (0.42) -- 10.16
2006## 10.36 0.40 (0.13) (0.41) (0.06) 10.16
For the period July 1, through September 30,
2005+ 10.50 0.08 (0.14) (0.08) -- 10.36
For the year ended June 30,
2005 10.39 0.34 0.22 (0.36) (0.09) 10.50
For the period May 11, through June 30,
2004 10.32 0.04 0.09 (0.06) -- 10.39
AHA Balanced Fund
Institutional Class (commenced operations on October 20, 1988)
2009* $ 7.44 $0.08 $(1.28) $(0.08) $ -- $ 6.16
2008 9.23 0.20 (1.30) (0.20) (0.49) 7.44
2007 9.77 0.23 0.62 (0.23) (1.16) 9.23
2006### 9.76 0.18 0.59 (0.18) (0.58) 9.77
For the period July 1, through September 30,
2005+ 9.62 0.04 0.14 (0.04) -- 9.76
For the years ended June 30,
2005 8.98 0.16 0.64 (0.16) -- 9.62
2004 8.03 0.10(7) 0.97 (0.12) -- 8.98
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE RATIO
NET NET ASSETS NET ASSETS OF NET
ASSETS BEFORE AFTER INVESTMENT
END OF WAIVERS & WAIVERS & INCOME PORTFOLIO
TOTAL PERIOD RECOVERED RECOVERED TO AVERAGE TURNOVER
RETURN (000) FEES(2) FEES(2) NET ASSETS(2) RATE(3)
--------- -------- ---------- ---------- ------------- --------
AHA Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on December 22, 1988)
2009* 3.71% $ 35,421 0.81% 0.75% 2.92% 51%
2008 2.54 92,681 0.67 0.76** 3.44 79
2007 4.63 44,365 0.77 0.76 4.25 76
2006# 3.49 45,340 0.94 0.75 3.24 86
For the period July 1, through September 30,
2005+ 0.20(5) 112,381 0.88(6) 0.86(6) 2.20(6) 4(5)
For the years ended June 30,
2005 1.53 128,501 0.79 0.78 2.01 109
2004 (0.05) 159,949 0.73 0.73 1.65 98
Class N (commenced operations on October 22, 2004)
2009* 3.58% $ 875 1.30% 0.99% 2.66% 51%
2008 2.29 432 0.92 1.00** 3.24 79
2007 4.47 310 1.02 1.00 3.99 76
2006# 3.17 358 1.18 1.00 2.88 86
For the period July 1, through September 30,
2005+ 0.13(5) 822 1.11(6) 1.10(6) 1.95(6) 4(5)
For the period October 22, 2004 through June 30,
2005 0.12(5) 1,070 1.07(6) 1.03(6) 1.75(6) 109
AHA Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2009* 3.82% $ 42,092 0.71% 0.70% 4.09% 27%
2008 1.76 42,579 0.64 0.64** 4.32 34
2007 4.48 42,096 0.73 0.79** 4.48 55
2006## 3.03 30,398 0.87 0.80** 4.20 91
For the period July 1, through September 30,
2005+ (0.57)(5) 31,764 0.83(6) 1.00(6)** 3.37(6) 17(5)
For the years ended June 30,
2005 5.72 31,960 0.95 1.00** 3.58 144
2004 0.08 28,958 0.98 1.00** 3.40 302
Class N (commenced operations on May 11, 2004)
2009* 3.79% $ 721 1.21% 0.95% 3.84% 27%
2008 1.42 687 0.89 0.89 4.02 34
2007 4.23 235 0.99 1.04** 4.23 55
2006## 2.67 145 1.12 1.05** 3.95 91
For the period July 1, through September 30,
2005+ (0.54)(5) 134 1.08(6) 1.25(6)** 3.12(6) 17(5)
For the year ended June 30,
2005 5.46 134 1.20 1.25** 3.33 144
For the period May 11, through June 30,
2004 1.29(5) 104 1.15(7) 1.25(7)** 3.27(7) 302(5)
AHA Balanced Fund
Institutional Class (commenced operations on October 20, 1988)
2009* (16.10)% $ 11,637 0.96% 1.00%** 2.54% 38%
2008 (12.68) 13,872 0.91 1.00** 2.42 88
2007 9.47 16,885 1.00 1.00 2.45 128
2006### 8.32 17,836 1.11 1.00 1.83 74
For the period July 1, through September 30,
2005+ 1.87(5) 18,352 1.10(6) 0.98(6) 1.54(6) 14(5)
For the years ended June 30,
2005 8.97 18,088 1.25 1.20 1.69 99
2004 13.41 16,930 1.31 1.50 1.14 70
+ 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, 2009.
** RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED.THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
(1) INFORMATION PRESENTED RELATES TO A SHARE OF CAPITAL STOCK OUTSTANDING FOR
THE ENTIRE PERIOD.
(2) RATIOS INCLUDE ALL MANAGEMENT FEES AND EXPENSES.
(3) 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.
(4) INCLUDES A TAX RETURN OF CAPITAL WHICH IS LESS THAN $0.01 PER SHARE, FOR
THE FUND FOR THE YEAR ENDED JUNE 30, 2005.
(5) NOT ANNUALIZED.
(6) ANNUALIZED.
(7) 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 34
NET
NET REALIZED AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS (LOSSES) FROM NET FROM VALUE
BEGINNING INVESTMENT ON INVESTMENT REALIZED END OF
OF PERIOD INCOME(3) INVESTMENIS(3) INCOME GAINS PERIOD
--------- ---------- -------------- ---------- ------------- ------
AHA Diversified Equity Fund
Institutional Class (commenced operations on October 20, 1988)
2009* $12.19 $ 0.07 $(3.62) $(0.07) $ -- $ 8.57
2008 18.48 0.14 (3.84) (0.14) (2.45) 12.19
2007 18.17 0.18 1.89 (0.18) (1.58) 18.48
2006# 17.42 0.15 1.55 (0.15) (0.80) 18.17
For the period July 1, through September 30,
2005+ 16.79 0.02 0.63 (0.02) -- 17.42
For the years ended June 30,
2005 15.39 0.13 1.40 (0.13) -- 16.79
2004 12.74 0.10 2.65 (0.10) -- 15.39
Class N (commenced operations on December 30, 2002)
2009* $ 12.22 $ 0.05 $(3.61) $ (0.06) $ -- $ 8.60
2008 18.52 0.11 (3.85) (0.11) (2.45) 12.22
2007 18.21 0.13(7) 1.89 (0.13) (1.58) 18.52
2006# 17.46 0.11 1.55 (0.11) (0.80) 18.21
For the period July 1, through September 30,
2005+ 16.83 0.01 0.63 (0.01) -- 17.46
For the years ended June 30,
2005 15.43 0.09 1.40 (0.09) -- 16.83
2004 12.75 0.06 2.65 (0.03) -- 15.43
AHA Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2009* $ 9.51 $ 0.07 $(3.58) $(0.07) $ -- $ 5.93
2008 12.12 0.16 (2.04) (0.15) (0.58) 9.51
2007 10.91 0.14 1.36 (0.14) (0.15) 12.12
2006## 10.28 0.12 0.67 (0.11) (0.05) 10.91
For the period July 1, through September 30,
2005+ 9.70 0.02 0.58 (0.02) -- 10.28
For the period January 3, through June 30,
2005 10.00 0.05 (0.30) (0.05) -- 9.70
Class N (commenced operations on August 12, 2005)
2009* $ 9.50 $ 0.06 $(3.58) $(0.06) $ -- $ 5.92
2008 12.11 0.14 (2.05) (0.12) (0.58) 9.50
2007 10.90 0.12 1.36 (0.11) (0.16) 12.11
2006## 10.28 0.09 0.67 (0.09) (0.05) 10.90
For the period August 12, through September 30,
2005 10.17 0.01 0.12 (0.02) -- 10.28
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 OF AND AND INCOME PORTFOLIO
TOTAL PERIOD RECOVERED RECOVERED TO AVERAGE TURNOVER
RETURN (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)
2009* (29.12)% $ 54,701 0.97% 0.96% 1.46% 48%
2008 (22.73) 74,997 0.94 0.97** 0.98 143
2007 11.93 102,232 1.02 0.99 0.98 116
2006# 10.16 94,653 1.09 1.01 0.87 99
For the period July 1, through September 30,
2005+ 3.88(5) 81,447 1.08(6) 1.13(6) 0.46(6) 20(5)
For the years ended June 30,
2005 9.95 81,510 1.07 1.05 0.78 128
2004 21.60 68,068 1.02 1.02 0.67 98
Class N (commenced operations on December 30, 2002)
2009* (29.14)% $ 4,514 1.47% 1.21% 1.20% 48%
2008 (22.93) 7,102 1.19 1.22** 0.74 143
2007 11.62 10,400 1.24 1.27 0.73 116
2006# 9.87 11,122 1.34 1.26 0.62 99
For the period July 1, through September 30,
2005+ 3.81(5) 9,451 1.34(6) 1.38(6) 0.20(6) 20(5)
For the years ended June 30,
2005 9.66 8,842 1.32 1.30 0.53 128
2004 21.24 7,392 1.27 1.27 0.42 98
AHA Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2009* (36.93)% $ 35,687 0.99% 0.98% 1.98% 32%
2008 (16.24) 53,256 0.90 0.99** 1.51 41
2007 13.89 56,490 1.00 0.94** 1.19 29
2006## 7.69 45,003 1.12 1.04** 1.10 29
For the period July 1, through September 30,
2005+ 6.20(5) 21,795 1.24(6) 1.15(6)** 0.90(6) 7(5)
For the period January 3, through June 30,
2005 (2.48)(5) 20,510 1.16(6) 1.12(6)** 1.43(6) 48(5)
Class N (commenced operations on August 12, 2005)
2009* (37.05)% $ 767 1.49% 1.23% 1.76% 32%
2008 (16.46) 885 1.15 1.24** 1.26 41
2007 13.64 741 1.25 1.19** 0.94 29
2006## 7.40 281 1.37 1.29** 0.80 29
For the period August 12, through September 30,
2005 1.27(5) 15 1.69(6) 1.43(6)** 0.74(6) 7(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, 2009.
** RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED.THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
(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.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 35
notes to financial statements
MARCH 31, 2009 (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, 2009, 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.
Expenses related to the reorganization and reimbursements to CCM Advisors, LLC
for reorganization related expenses were incurred and paid by the Funds. These
amounts are subject to recapture through the year ended September 30, 2009.
2. SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States 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 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, 2009.
The Funds adopted Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective
October 1, 2008. In accordance with FAS 157, fair value is defined as the price
that a Fund would receive upon selling an investment in a timely transaction to
an independent buyer in the principal or most advantageous market of the
investment. FAS 157 established a
AHA INVESTMENT FUNDS | PAGE 36
three-tier hierarchy to maximize the use of the observable market data and
minimize the use of unobservable inputs and to establish classification of the
fair value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing an asset. Inputs may
be observable or unobservable. Observable inputs are inputs that reflect the
assumptions market participants would use in pricing the asset or liability
developed based on market data obtained from sources independent of the
reporting entity. Unobservable inputs are inputs that reflect the reporting
entity's own assumptions about the assumptions market participants would use in
pricing the asset or liability developed based on the best information available
in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad Levels
listed below:
- Level 1 - quoted prices in active markets for identical investments
- Level 2 - other significant observable inputs (including quoted prices
for similar investments, interest rates, prepayment speeds, credit
risks, etc.)
- Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The valuation techniques used by the Funds to measure fair value during the
six-month period ended March 31, 2009 maximized the use of observable inputs and
minimized the use of unobservable inputs.
The following is a summary of the inputs used as of March 31, 2009 in valuing
the Funds' investments carried at value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- ------------------------- ------- ------- ------- -------
Limited Maturity Fixed Income Fund $ 1,611 $35,527 $-- $37,138
Full Maturity Fixed Income Fund 1,117 41,359 -- 42,476
Balanced Fund 6,269 5,277 -- 11,546
Diversified Equity Fund 59,283 -- -- 59,283
Socially Responsible Equity Fund 36,353 -- -- 36,353
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 an
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.
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 ADVISOR AND SUB-ADVISOR AGREEMENTS
The Funds have an Investment Management Agreement dated October 1, 2005 (the
"Agreement") with CCM Advisors, LLC (the "Advisor"), 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 Advisor
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 November 1,
2006, the Advisor 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 Advisor 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.
AHA INVESTMENT FUNDS | PAGE 37
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
During the six months ended March 31, 2009, the Board of Trustees approved the
reimbursement of previously waived fees by the Advisor in the amount of $2,838
in the Balanced Fund.
As of March 31, 2009, fees which were previously waived by the Advisor which may
be subject to possible future reimbursement to the Advisor were as follows:
Potential Amount of
Fund Recovery (000) Expiration
- ---- ------------------- ----------
Limited Maturity Fund $64 2009
3 2010
11 2012
Balanced Fund 7 2009
1 2011
THE PATTERSON CAPITAL CORPORATION and CNAM, INC. act as the sub-advisors with
respect to the Limited Maturity Fund and are paid by the Advisor.
ROBERT W. BAIRD & CO., INCORPORATED and BOYD WATTERSON ASSET MANAGEMENT, LLC act
as sub-advisors with respect to the AHA Full Maturity Fund and are paid by the
Advisor.
ROBERT W. BAIRD & CO., INCORPORATED and FREEMAN INVESTMENT MANAGEMENT CO., LLC
act as sub-advisors with respect to the Balanced Fund and are paid by the
Advisor.
AMBS INVESTMENT COUNSEL, LLC, FREEMAN INVESTMENT MANAGEMENT, CO., LLC AND SKBA
CAPITAL MANAGEMENT, LLC act as sub-advisors with respect to the Diversified Fund
and are paid by the Advisor. Effective February 29, 2008, TURNER INVESTMENT
PARTNERS, INC. commenced acting as sub-advisor for a portion of the Diversified
Fund and is paid by the Advisor.
SKBA CAPITAL MANAGEMENT, LLC acts as the sub-advisor with respect to the
Socially Responsible Fund and is paid by the Advisor.
4. ADMINISTRATION, TRANSFER AGENT DISTRIBUTION AND SHAREHOLDER SERVICES
AGREEMENTS
Pursuant to an administration agreement dated April 1, 1999, as amended (the
"Agreement"), SEI Investments Global Funds Services (the "Administrator"), a
wholly owned subsidiary of SEI Investments Company, acts as the AHA Funds'
administrator. Effective with the reorganization into the CNI Charter Funds on
October 3, 2005, under the terms of the Agreement, 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 (the "Transfer Agent") serves as transfer
agent for the Trust and 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 and 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.
The Trust has entered into a Shareholder Servicing Agreement that permits
payment of compensation to CCM Advisors, LLC ("CCMA"), which provides certain
shareholder support for its customers who own Class N Shares. In consideration
for such services, a shareholder servicing fee is charged at the annual rate of
up to 0.25% of each Fund's average daily net assets. CCMA has agreed to
voluntarily waive portions of its shareholder servicing fees with respect to
certain Funds. For the six months ended March 31, 2009, CCMA received
Shareholder Servicing fees from the Trust in the amount of $4,983.
Certain officers of the Trust are also officers of the Advisor, 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 each Fund intends to
distribute investment company net taxable income and net capital gains to
shareholders. Therefore, no Federal income tax provision is required.
Management has analyzed the Funds' tax position taken on federal income tax
returns for all open tax years and has concluded that as of September 30, 2008,
no provision for income tax would be required in the Funds' financial
statements. The Funds' federal and state income and federal excise tax returns
for tax years for which the applicable statutes of limitations have not expired
are subject to examination by the Internal Revenue Service and state departments
of revenue.
AHA INVESTMENT FUNDS | PAGE 38
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned. The Funds accrue
such taxes when the related income is earned.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with Federal tax
regulations, which may differ from accounting principles generally accepted in
the United States. As a result, net investment income (loss) and net realized
gain (loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. These book/tax differences
may be temporary or permanent. To the extent these differences are permanent in
nature, they are charged or credited to paid-in-capital, undistributed net
investment income (loss), or accumulated net realized gain (loss), as
appropriate, in the period that the differences arise.
The tax character of dividends and distributions declared during the years ended
September 30, 2008 and September 30, 2007 are shown below (000s):
Ordinary Long-term
Income Capital Gain Total
Fund (000) (000) (000)
- ---- -------- ------------ -------
Limited Maturity Fund
September 2008 $2,676 $ -- $ 2,676
September 2007 1,857 -- 1,857
Full Maturity Fund
September 2008 $1,892 $ -- $ 1,892
September 2007 1,626 -- 1,626
Balanced Fund
September 2008 $ 714 $ 551 $ 1,265
September 2007 997 1,553 2,550
Diversified Fund
September 2008 $5,167 $9,431 $14,598
September 2007 3,146 6,832 9,978
Socially Responsible Fund
September 2008 $1,565 $2,001 $ 3,566
September 2007 629 659 1,288
As of September 30, 2008, the components of Accumulated Losses on a tax basis
were as follows (000s):
Undistributed Undistributed Capital Unrealized Other Total
Ordinary Long-term Loss Post-October Appreciation Temporary Accumulated
Income Capital Gain Carryforwards Losses (Depreciation) Differences Losses
Fund (000) (000) (000) (000) (000) (000) (000)
- ---- ------------- ------------- ------------- ------------ -------------- ----------- -----------
Limited Maturity Fund $261 $-- $(2,407) $ -- $ (1,776) $(260) $ (4,182)
Full Maturity Fund 154 -- (397) (127) (1,002) (156) (1,528)
Balanced Fund 5 -- -- (654) (1,088) -- (1,737)
Diversified Fund 18 -- -- (7,049) (10,120) -- (17,151)
Socially Responsible
Fund 53 -- (81) (1,126) (4,333) -- (5,487)
During the year ended September 30, 2008, the following Funds utilized capital
loss carryforwards to offset capital gains amounting to (000):
Limited Maturity Fund $55
Full Maturity Fund 1
Post-October losses represent losses realized on investments and foreign
currency transactions from November 1, 2007 through September 30, 2008 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,
2008, the breakdown of capital loss carryforwards was as follows (000s):
Expiring
-----------------------------------------------
2012 2013 2014 2015 2016 Total
Fund (000) (000) (000) (000) (000) (000)
- ---- ----- ----- ----- ------ ----- ------
Limited Maturity Fund $22 $838 $133 $1,414 $-- $2,407
Full Maturity Fund -- 63 45 289 -- 397
Socially Responsible -- -- -- -- 81 81
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, 2009 for each of the
Funds were as follows (000s):
Aggregate Aggregate
Gross Gross Net
Federal Unrealized Unrealized Unrealized
Tax Cost Appreciation Depreciation Depreciation
Fund (000) (000) (000) (000)
- ---- -------- ------------ ------------ ------------
Limited Maturity Fund $37,941 $ 429 $ (1,232) $ (803)
Full Maturity Fund 43,117 1,565 (2,206) (641)
Balanced Fund 13,194 317 (1,965) (1,648)
Diversified Fund 76,386 1,944 (19,047) (17,103)
Socially Responsible Fund 55,974 447 (20,068) (19,621)
AHA INVESTMENT FUNDS | PAGE 39
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
6. CAPITAL SHARE TRANSACTIONS (000S):
The share transactions for the six months ended March 31, 2009 and the year
ended September 30, 2008 are as follows:
Limited Maturity Full Maturity
Fund (000) Fund (000) Balanced Fund (000)
------------------- ------------------- -------------------
03/31/09 09/30/08 03/31/09 09/30/08 03/31/09 09/30/08
-------- -------- -------- -------- -------- --------
INSTITUTIONAL CLASS
Shares Sold 188 5,951 12 33 -- --
Shares Issued in
Reinvestment
of Dividends 36 203 68 126 25 36
Shares Redeemed (5,752) (1,508) (202) -- -- --
------ ------ ---- --- --- ---
Total Net Change (5,528) 4,646 (122) 159 25 36
====== ====== ==== === === ===
CLASS N
Shares Sold -- 39 13 58
Shares Issued in
Reinvestment
of Dividends 46 1 1 1
Shares Redeemed (6) (28) (12) (13)
--- --- --- ---
Total Net Change 40 12 2 46
=== === === ===
Socially
Diversified Responsible
Fund (000) Fund (000)
------------------- -------------------
03/31/09 09/30/08 03/31/09 09/30/08
-------- -------- -------- --------
INSTITUTIONAL CLASS
Shares Sold 536 630 817 1,635
Shares Issued in
Reinvestment
of Dividends 47 585 66 324
Shares Redeemed (355) (593) (464) (1,021)
---- ---- ---- ------
Total Net Change 228 622 419 938
==== ==== ==== ======
CLASS N
Shares Sold 11 24 60 47
Shares Issued in
Reinvestment
of Dividends 4 89 1 4
Shares Redeemed (71) (93) (25) (19)
---- ---- ---- ------
Total Net Change (56) 20 36 32
==== ==== ==== ======
7. SECURITIES TRANSACTIONS
Purchases and sales and maturities of investment securities, other than
short-term investments, for the six months ended March 31, 2009 were as follows:
Purchases Sales & Maturities
-------------------- --------------------
U.S. Gov't Other U.S. Gov't Other
Fund (000) (000) (000) (000)
- ---- ---------- ------- ---------- -------
Limited Maturity Fund $12,908 $ 8,112 $50,742 $24,182
Full Maturity Fund 3,749 6,985 8,452 3,827
Balanced Fund -- 5,019 286 3,913
Diversified Fund -- 32,602 -- 30,450
Socially Responsible Fund -- 15,338 -- 12,393
AHA INVESTMENT FUNDS | PAGE 40
8. INVESTMENT RISKS
In the normal course of business, the Funds enter into contracts that provide
general indemnifications by the Funds 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.
AHA INVESTMENT FUNDS | PAGE 41
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
10/1/08 3/31/09 RATIOS PERIOD*
--------- --------- ---------- --------
AHA LIMITED MATURITY FIXED INCOME FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,037.10 0.75% $3.81
Class N 1,000.00 1,035.80 0.99% 5.02
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,021.19 0.75% $3.78
Class N 1,000.00 1,020.00 0.99% 4.99
AHA FULL MATURITY FIXED INCOME FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,038.20 0.70% $3.56
Class N 1,000.00 1,037.90 0.95% 4.83
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.44 0.70% $3.53
Class N 1,000.00 1,020.19 0.95% 4.78
AHA BALANCED FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 839.00 1.00% $4.58
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,019.95 1.00% $5.04
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
--------- --------- ---------- --------
AHA DIVERSIFIED EQUITY FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 708.80 0.96% $4.09
Class N 1,000.00 708.60 1.21% 5.15
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,020.14 0.96% $4.84
Class N 1,000.00 1,018.90 1.21% 6.89
AHA SOCIALLY RESPONSIBLE EQUITY FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 630.70 0.98% $3.98
Class N 1,000.00 629.50 1.23% 5.00
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,020.04 0.98% $4.94
Class N 1,000.00 1,018.80 1.23% 6.19
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/365 (to reflect
the six-month period).
AHA INVESTMENT FUNDS | PAGE 42
approval of sub-advisory agreements (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 advisors and sub-advisors (the "Independent Trustees"). During the
six months ended March 31, 2009, the Board and the Independent Trustees approved
new sub-advisory agreements between CCM Advisors, LLC ("CCMA") and Boyd
Watterson Asset Management, LLC ("Boyd"), with respect to a portion of the AHA
Full Maturity Fixed Income Fund (the "Full Maturity Fund"); and CCMA and Freeman
Investment Management Co., LLC ("Freeman"), with respect to portions of the AHA
Balanced Fund (the "Balanced Fund") and AHA Diversified Equity Fund (the
"Diversified Equity Fund") (collectively, the "Agreements"). Boyd was an
existing sub-advisor to the Full Maturity Fund. However, under the Investment
Company Act of 1940 the acquisition of Boyd by Titanium Asset Management Corp.
automatically terminated its existing sub-advisory agreement with the Full
Maturity Fund. Freeman is a new investment management firm formed by Freeman
Associates Investment Management, LLC ("Freeman Associates"), an existing
sub-advisor to the Balanced Fund and Diversified Equity Fund, and Investment
Science Corporation.
GENERAL INFORMATION
The following information summarizes the Board's considerations associated with
its review of the Agreements. In connection with their deliberations, the
Trustees 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 Boyd and Freeman. In considering these
matters, the Independent Trustees discussed the approval of the Agreements with
management and in private sessions with counsel at which no representatives of
CCMA, Boyd or Freeman were present.
The Board reviewed extensive materials regarding the investment results of the
Funds and the portions of the Funds managed by Boyd and Freeman Associates,
advisory fee comparisons, financial and profitability information provided by
Boyd and Freeman, descriptions of various functions such as compliance
monitoring and portfolio trading practices, and personnel providing investment
management and administrative services to the Funds. They also took into account
information they received at past Board meetings with respect to these matters.
In deciding to approve each 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.
BOYD
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services provided by Boyd, the Board considered a variety of
matters, including the background, education and experience of Boyd's key
portfolio management and operational personnel; its overall financial strength
and stability; its resources and related efforts to retain, attract and motivate
capable personnel to serve the Full Maturity Fund; information about its parent
company; and the overall general quality and depth of its organization. The
Board also reviewed Boyd's investment philosophy and processes as well as its
brokerage and trading practices. The Board noted Boyd's representation that
there would be no material changes in its investment staff or operations in
connection with the change of control.
INVESTMENT PERFORMANCE
The Board assessed the performance of the Full Maturity Fund and Boyd
Watterson's portion of the Fund compared with the Fund's benchmarks and the
average of all funds in its peer group category selected by Lipper, Inc. for
one-year, two-year and since-inception periods ended September 30, 2008. The
Board noted that the returns for Boyd Watterson's portion of the Full Maturity
Fund were above those of the Full Maturity Fund, the average returns of the
Lipper Corporate A-Rated Debt Funds classification, the Barclays Capital US
Aggregate Bond Index and the Barclays Capital Intermediate US Government/Credit
Index for all periods (except for the Barclays Capital US Aggregate Bond Index
for the one-year and since-inception periods).
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the sub-advisory fees charged by Boyd
and observed that Boyd Watterson's sub-advisory fee with respect to the Fund was
competitive with the sub-advisory fees it charges with respect to other mutual
funds. The Board also noted that Boyd Watterson does not manage any
non-investment company accounts with similar mandates to that of the Full
Maturity Fund. The Board observed that the asset levels of the Full Maturity
Fund were relatively small and were not currently likely to lead to significant
economies of scale.
AHA INVESTMENT FUNDS | PAGE 43
approval of sub-advisory agreements (UNAUDITED) (CONTINUED)
The Board also considered the information prepared by Boyd relating to its costs
and profits, as well as the benefits received by Boyd and its affiliates as a
result of its relationship with the Full Maturity Fund, including Boyd's receipt
of sub-advisory fees and the intangible benefits of any favorable publicity
arising in connection with the Fund's performance.
CONCLUSIONS
Based on its review, including its consideration of each of the factors referred
to above, the Board concluded that the terms of the Agreement were fair and
reasonable in light of the nature and quality of the services proposed to be
provided by Boyd to the Full Maturity Fund and its shareholders.
FREEMAN
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services to be provided by Freeman, the Board considered a
variety of matters, including the background, education and experience of
Freeman's key portfolio management and operational personnel; its overall
financial strength and stability; its resources and related efforts to retain,
attract and motivate capable personnel to serve the Funds; and the overall
general quality and depth of its organization. The Board also reviewed Freeman's
investment philosophy and processes as well as its brokerage and trading
practices.
INVESTMENT PERFORMANCE
The Board assessed the performance of the Balanced Fund and the Diversified
Equity Fund and Freeman Associates' portions of those Funds compared with those
Funds' benchmarks and the average of all funds in their peer group categories
selected by Lipper, Inc. for periods ended December 31, 2008.The Board observed
that the annualized total returns for Freeman Associates' portion of the
Balanced Fund were below the returns of the Balanced Fund, its Blended Index
(which is an index composed of 60% in the S&P 500 Index, 30% in the Barclays US
Aggregate Bond Index and 10% in the Merrill Lynch 3-Month U.S.Treasury Index),
and the Lipper Mixed-Asset Target Allocation Growth Funds average; above the S&P
500 Index for the one-year, five-year and since-inception periods ending
December 31, 2008; and below all those measures for the three-year period. With
respect to the Diversified Equity Fund, the Board noted that Freeman Associates'
portion of the Fund had outperformed the returns of the Fund, the S&P 500 Index
and the Lipper Multi-Cap Core Funds average for the one-, three-, five-, and
ten-year and since-inception periods ending December 31, 2008, except the S&P
500 Index for the three-year period, and the Fund and the Lipper Multi-Cap Core
Funds average for the ten-year period.
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the sub-advisory fees to be charged by
Freeman with respect to the Balanced Fund and the Diversified Equity Fund and
observed that the fees were reasonable. They noted that Freeman's sub-advisory
fees with respect to the Funds were lower than the fees it will charge with
respect to other clients in its large cap core value strategy. The Board also
noted that the asset levels of those Funds were relatively small and were not
currently likely to lead to significant economies of scale.
The Board also considered the information prepared by Freeman relating to its
costs and profits, as well as the benefits to be received by Freeman and its
affiliates as a result of its relationship with the Balanced Fund and the
Diversified Equity Fund, including Freeman's receipt of sub-advisory fees and
the intangible benefits of any favorable publicity arising in connection with
the Funds' performance.
CONCLUSIONS
Based on its review, including its consideration of each of the factors referred
to above, the Board concluded that the terms of the Agreements, including the
fees to be received by Freeman, were fair and reasonable in light of the nature
and quality of the services proposed to be provided by Freeman to the Balanced
Fund and the Diversified Equity Fund and their shareholders.
AHA INVESTMENT FUNDS | PAGE 44
THANK YOU
for your investment with CNI Charter
Funds. We value the trust you have
placed in us to help you achieve your
financial goals.
For more information on CNI Charter Funds, including charges and
expenses, visit cnicharterfunds.com or call 1-888-889-0799 for a free
prospectus.
Read it carefully before you invest or send money.
(AMERICAN HOSPITAL ASSOCIATION LOGO)
AHA INVESTMENT FUNDS(TM)
SERIES OF THE CNI CHARTER FUNDS
(CNI CHARTER FUNDS(SM)(R) LOGO)
CCM Advisors, LLC is the AHA-sponsored investment
advisor for the AHA Investment Program
www.ahafunds.org AHA-SA-001-0100
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
CNI Charter Funds (the "Fund") has adopted the following procedures by which
shareholders may recommend nominees to the Fund's Board of Trustees. The Fund
has a Nominating Committee comprised solely of persons who are not considered
"interested persons" of the Fund within the meaning of the Investment Company
Act of 1940. The Committee periodically reviews such issues as the Board's
composition, responsibilities, committees, compensation and other relevant
issues, and recommends any appropriate changes to the full Board of Trustees.
While the Committee normally is able to identify from its own resources an ample
number of qualified candidates, it will consider shareholder suggestions of
persons to be considered as nominees to fill future vacancies on the Board, so
long as the shareholder or shareholder group submitting a proposed nominee: (a)
beneficially owns more than 5% of the Fund's voting shares and has held such
shares continuously for two years, and (b) is not an adverse holder. No eligible
shareholder or shareholder group may submit more than one independent Board
member nominee each year. Such suggestions must be sent in writing to the Fund's
Secretary, and must be accompanied by the shareholder's contact information,
the nominee's contact information and number of Fund shares owned by the
nominee, all information regarding the nominee that would be required to be
disclosed in solicitations
of proxies for elections of directors required under the Securities Exchange Act
of 1934, and a notarized letter from the nominee stating his or her intention to
serve as a nominee and be named in the Fund's proxy statement, if so designated
by the Committee and the Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the second fiscal quarter covered by
this report that has materially affected, or is reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) CNI Charter Funds
By (Signature and Title)* /s/ Richard A. Weiss
----------------------------------------
Richard A. Weiss, President & CEO
Date June 4, 2009
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 June 4, 2009
By (Signature and Title)* /s/ Eric Kleinschmidt
----------------------------------------
Eric Kleinschmidt, Controller and COO
Date June 4, 2009
* Print the name and title of each signing officer under his or her
signature.