UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------
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.
(CNI CHARTER FUNDS(SM)(R) LOGO)
2009 SEMI-ANNUAL REPORT
March 31, 2009
Large Cap Value Equity Fund
Large Cap Growth Equity Fund
RCB Small Cap Value Fund
Opportunistic Value Fund
Multi-Asset Fund
Corporate Bond Fund
Government Bond Fund
California Tax Exempt Bond Fund
High Yield Bond Fund
Prime Money Market Fund
Government Money Market Fund
California Tax Exempt Money Market Fund
This report and the financial statements contained herein are provided for the
general information of the shareholders of the CNI Charter Funds. This report is
not authorized for distribution to prospective investors in the CNI Charter
Funds unless preceded or accompanied by an effective prospectus. Please remember
that past performance is no guarantee of future results.
Shares of CNI Charter Funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency and
involve investment risks, including the possible loss of the principal amount
invested. Notwithstanding the preceding statements, until September 18, 2009
shareholders of the CNI Charter Prime Money Market Fund and California Tax
Exempt Money Market Fund are guaranteed to receive $1.00 per share for amounts
that they held as of September 19, 2008 subject to the terms of the U.S.
Treasury Department's Temporary Guarantee Program for Money Market Funds.
TABLE OF CONTENTS
CNI Charter Funds Annual Report
2 Letter to Our Shareholders
4 Equity Funds Investment Adviser's Report
5 Fixed Income Funds Investment Adviser's Report
6 Schedules of Investments
50 Statements of Assets & Liabilities
53 Statements of Operations
56 Statements of Changes in Net Assets
60 Financial Highlights
63 Notes to Financial Statements
72 Disclosure of Fund Expenses
74 Board Approval of Sub-Advisory Agreement
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 Funds' website at www.cnicharterfunds.com and without charge, upon
request, by calling 1-888-889-0799.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to the Funds' portfolio securities, and information on
how the Funds voted proxies relating to portfolio securities during the most
recent 12-month period ending June 30 is available (1) without charge, upon
request, by calling 1-888-889-0799, (2) on the Funds' website at
www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission's
website at www.sec.gov.
CNI CHARTER FUNDS | PAGE 1
letter to our shareholders
MARCH 31, 2009
We are pleased to provide you with the CNI Charter Funds Semi-Annual Report for
the six months ended March 31, 2009, a period of financial crisis, economic
recession, government intervention, and precipitous market price declines.
Although there are signs that the worst is now over, both economically and
financially, it is clear that very few investments came through this period
unscathed.
The underlying investment philosophy of CNI Charter Funds is to pursue the
long-term goals and objectives specified for each of the Funds without being
swayed by short-term trends and fads. All of the Funds are managed with an
active yet disciplined style that seeks to achieve competitive rates of return
consistent with their respective, prescribed risk parameters. City National
Asset Management, Inc., as Investment Manager to the Funds, utilizes in-depth
research that takes advantage of the most advanced investment technology,
fundamental valuation, and quantitative tools to determine the most attractive
sectors and securities within each Fund's area of concentration. This approach
has served shareholders well overall during the turbulent economic, financial,
and geopolitical environment we encountered in the six months ended March 31,
2009.
SIX-MONTH MARKET WATCH:
OCTOBER 2008 - MARCH 2009
The six months ended March 31, 2009 produced negative returns in virtually every
asset class around the globe. Even fixed income securities were not exempt from
this bear market panic as the riskier elements of this asset class also suffered
in the massive flight to quality that occurred during this period. It was only
in the last month that any investment began to show some gains, resulting in
positive returns for some asset classes over the six-month period.
Six-Month October 2008 -
Market Performance: March 2009
EQUITIES:
S&P 500 Stock Index ................................ -30.5%
Dow Jones Industrials .............................. -28.6%
NASDAQ ............................................. -26.5%
Russell 2000 Value Index ........................... -39.6%
MSCI EAFE Index .................................... -31.1%
BONDS:
Barclays Capital Aggregate Bond Index .............. +4.7%
Citigroup High Yield Market Index .................. -12.9%
Dubbed "The Great Recession," this six-month period witnessed the collapse of
several major U.S. investment banks and governmental intervention on an
unprecedented scale, all stemming from a collapse in the housing market. The
credit crisis quickly spread to all sectors of the domestic and international
economy, resulting in a sharp drop in growth around the world. Massive monetary
injections by the U.S. Federal Reserve, the U.S. Treasury, and many other
central banks arguably prevented a collapse of the entire financial system. Yet,
after all of this turmoil, it now appears as though the worst is over, and we
are on the road to recovery. However, the process may still take many quarters,
if not years, to get our economy and markets back on track to a "normal" level.
One of the main questions facing investors today is whether the coordinated
global monetary intervention/ infusion (which was necessary to stave off a
severe depression and nasty deflationary cycle), will ultimately result in
excessive inflation down the road.
CNI CHARTER FUNDS PERFORMANCE
(ALL RETURNS LISTED BELOW ARE FOR INSTITUTIONAL CLASS SHARES)
By adhering to our basic investment discipline and maintaining the appropriate
amount of risk control in the various portfolios, the Funds continue to provide
returns that are competitive in their respective investment arenas.
CNI CHARTER FUNDS | PAGE 2
Returns for three of the four bond-oriented Funds were positive. The GOVERNMENT
BOND FUND returned 3.2%, the CORPORATE BOND FUND returned 4.0%, and the
CALIFORNIA TAX EXEMPT BOND FUND gained 4.4%.The HIGH YIELD BOND FUND lost 16.3%
during the six-month period.
All of the equity-oriented Funds lost ground during the six-month period as one
would expect given the negative economic environment. The MULTI-ASSET FUND lost
10.4%, the LARGE CAP GROWTH EQUITY FUND lost 24.7%, the LARGE CAP VALUE EQUITY
FUND fell 32.0%, the OPPORTUNISTIC VALUE FUND dropped by 31.5%, and the RCB
SMALL CAP VALUE FUND lost 31.9%.
Lastly, all three Money Market Funds steered clear of virtually every financial
pitfall to turn in competitive yields for the six months ending March 31, 2009.
The PRIME MONEY MARKET FUND gained 0.4%, the GOVERNMENT MONEY MARKET FUND gained
0.2% and the CALIFORNIA TAX EXEMPT MONEY MARKET FUND rose 0.3%.
The following pages contain important information and details on the assets and
financial condition of the Funds. Please read them carefully and if you have any
questions about this report or CNI Charter Funds, please call your investment
professional or contact us at (888) 889-0799.
Thank you for choosing CNI Charter Funds.
Sincerely,
/s/ Richard A. Weiss
Richard A. Weiss
PRESIDENT
CITY NATIONAL ASSET MANAGEMENT, INC.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. CERTAIN SHAREHOLDERS MAY BE
SUBJECT TO THE ALTERNATIVE MINIMUM TAX (AMT). FEDERAL INCOME TAX RULES APPLY TO
ANY CAPITAL GAIN DISTRIBUTIONS.
FUND EXPENSES HAVE BEEN WAIVED DURING THE PERIOD ON WHICH THE PERFORMANCE IS
BASED. WITHOUT WAIVERS, PERFORMANCE WOULD BE LOWER.
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
INVESTING IN MUTUAL FUNDS INVOLVES RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
IN ADDITIONAL TO THE NORMAL RISKS ASSOCIATED WITH INVESTING, INVESTMENTS IN
SMALLER COMPANIES TYPICALLY EXHIBIT HIGHER VOLATILITY. AN INVESTMENT IN THE
FUNDS IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION
OR ANY OTHER GOVERNMENT AGENCY. NOTWITHSTANDING THE PRECEDING STATEMENTS, UNTIL
SEPTEMBER 18, 2009 SHAREHOLDERS OF THE CNI CHARTER PRIME MONEY MARKET FUND AND
CALIFORNIA TAX EXEMPT MONEY MARKET FUND ARE GUARANTEED TO RECEIVE $1.00 PER
SHARE FOR AMOUNTS THAT THEY HELD AS OF SEPTEMBER 19, 2008 SUBJECT TO THE TERMS
OF THE U.S. TREASURY DEPARTMENT'S TEMPORARY GUARANTEE PROGRAM FOR MONEY MARKET
FUNDS.
*NOT FDIC INSURED *NO BANK GUARANTEE *MAY LOSE VALUE
CNI CHARTER FUNDS | PAGE 3
investment adviser's report
MARCH 31, 2009
EQUITY FUNDS
The equity market, as measured by the S&P 500 Stock Index, fell 30.5% over the
six months ending March 31, 2009. This period continued the "bear" market that
was established after the October 2007 market highs. The majority of the loss
during this period came in October 2008, with the market continuing to judge the
stability of the global financial system. Rebounding from a near-term low in
late October, the market rallied over 25% until the first part of 2009. From
that point, the market proceeded to trade lower, reaching a low of 666 in early
March. The market continued to gauge the severity of this recession with its
tight credit environment, lower corporate earnings, increased unemployment and
weak consumer demand.
All of the CNI Charter Equity and Blended funds produced negative returns in
this tough environment, but the blended Multi-Asset Fund fared best. In
addition, each of the equity funds remained ahead of their investment and
competitive benchmarks over this six month period.
EQUITY FUND PERFORMANCE
ALL RETURNS FOR THE CNI CHARTER FUNDS STATED BELOW ARE FOR INSTITUTIONAL CLASS
SHARES.
- The MULTI-ASSET FUND lost 10.4%.This performance lagged the targeted
CPI + 5% return of -0.4%, but beat the Lipper Flexible Portfolio Funds
Objective of -21.0%.
- The LARGE CAP GROWTH EQUITY FUND fell 24.7%. This performance
outperformed the S&P 500/ Citigroup Growth Index return of -25.2% and
the Lipper Large Cap Growth Funds Classification return of -26.0%.
- The OPPORTUNISTIC VALUE FUND lost 31.5%.This performance led the Frank
Russell 1000 Value Index return of -35.2% and the Lipper Multi-Cap
Value Funds Classification of -31.7%.
- The LARGE CAP VALUE EQUITY FUND dropped 32.0%. This performance beat
the S&P 500/Citigroup Value Index return of -36.1% and the Lipper
Large Cap Value Funds Classification of -32.0%.
- The RCB SMALL CAP VALUE FUND lost 31.9%.This performance surpassed the
Russell 2000 Value Index of -39.6% and the Lipper Small Cap Value Fund
Classification of -37.2%.
Since the mid-March low, the equity market has seen a near 20% rally as the
first quarter came to a close. Economic "green shoots" are starting to emerge as
the economic indicators show signs that the economy is starting to slow its
contraction. The Federal Reserve continues to keep interest rates low across the
yield curve in an active attempt to spur investment and ultimately economic
growth.
LOOKING FORWARD
Most economists expect the U.S. to see positive real economic growth in the
third and fourth quarters of 2009. This growth, though, is expected to remain
low and not reach normal levels until 2010. Equity analysts continue to ratchet
down corporate earnings levels in line with this tepid growth expectation. There
are still many hurdles to overcome to return to a stable economic environment,
but we remain optimistic about the market's ability to provide strong results in
the future. As always, we continue to apply our disciplined investment approach
with the objective of providing superior investment results across the various
strategies we manage.
Sincerely,
/s/ Brian L. Garbe
Brian L. Garbe
DIRECTOR OF RESEARCH
CITY NATIONAL ASSET MANAGEMENT, INC.
THIS MATERIAL REPRESENTS THE MANAGER'S ASSESSMENT OF THE PORTFOLIO AND MARKET
ENVIRONMENT AT A SPECIFIC POINT IN TIME AND SHOULD NOT BE RELIED UPON BY THE
READER AS RESEARCH OR INVESTMENT ADVICE.
CNI CHARTER FUNDS | PAGE 4
investment adviser's report
MARCH 31, 2009
FIXED INCOME FUNDS
The six months ending March 31, 2009 have truly been remarkable for the credit
markets. A worldwide recession led to a major contraction of the U.S. economy,
heightened levels of unemployment and dismal earnings from corporate America.
The Federal Reserve and the U.S. Treasury, as well as other major worldwide
governments and central banks, worked in tandem to bolster the entire financial
system. The range of government support expanded immensely during this period
which helped buffer the magnitude of the downturn and importantly, helped
increase confidence on both Wall Street and Main Street.
The fundamentals of the credit markets are very supportive for future economic
growth once the economy gains more traction. Over the past six months, the
Federal Funds target rate declined from 2% to a very accommodative 0% - 0.25%
range. Importantly, confidence between banks improved as well -- a critical
component to a healthy financial system. The best gauge of this is the Libor/
overnight index swap rate (OIS) spread which has stabilized at 82 basis points
currently, but was as high as 364 basis points in October 2008.
STRATEGIC OUTLOOK FOR BOND FUNDS
U.S. Treasury yields generally declined during this period due to a flight to
quality. However, the current trajectory has been for higher Treasury yields
given increased supply coupled with some asset allocation changes into more
growth oriented assets as well as into lower rated credit markets. In the first
quarter of 2009, credit markets such as the corporate, municipal and high yield
bond sectors out-performed Treasuries as investors took advantage of
historically attractive yield spreads.
Importantly, our disciplined investment process and active risk management of
the CNI Charter Funds helped us steer clear of problems that damaged other fund
families. We responded to mounting credit pressures (especially last year) by
taking a more conservative credit approach. We also anticipate corporate and
municipal spreads to narrow once the credit crunch is behind us.
Strategically, in the CORPORATE BOND FUND, we continue to avoid lower quality
credits and those companies highly levered to the consumer given our concern of
the weakness in the economy. We are seeking to maintain a higher average quality
posture than the Barclays Intermediate Corporate Index in this environment.
The GOVERNMENT BOND FUND continues to benefit from attractive yields offered by
agency securities versus Treasuries. We are utilizing U.S. Government agency
issue mortgages to capture higher yields without taking on credit risk.
The CALIFORNIA TAX EXEMPT BOND FUND maintains a neutral maturity profile
relative to benchmark while keeping credit quality high. This positioning should
continue to benefit the Fund by protecting investors from reinvestment risk
while also positioning it for a steeper yield curve by reducing maturities
outside of 10 years.
In this slow growth environment, the HIGH YIELD BOND FUND has come under
pressure with the credit crunch and risk premiums in the market. This strategy
is starting to benefit as yield spreads appear to be stabilizing somewhat. This
Fund retains its strategic posture of excellent sector allocation as well as a
quality bias versus its competitors.
STRATEGIC OUTLOOK FOR MONEY MARKET FUNDS
The primary outlook for our money market strategies remains diligence in risk
management. Our disciplined strategies helped us avoid many of the credit and
liquidity problems that permeated the landscape in late 2008. We continue to
manage with a primary mandate of principal stability, liquidity and competitive
yields.
Sincerely,
/s/ Rodney J. Olea
Rodney J. Olea
DIRECTOR OF FIXED INCOME
CITY NATIONAL ASSET MANAGEMENT, INC.
THIS MATERIAL REPRESENTS THE MANAGER'S ASSESSMENT OF THE PORTFOLIO AND MARKET
ENVIRONMENT AT A SPECIFIC POINT IN TIME AND SHOULD NOT BE RELIED UPON BY THE
READER AS RESEARCH OR INVESTMENT ADVICE.
CNI CHARTER FUNDS | PAGE 5
schedule of investments
MARCH 31, 2009 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND
SECTOR WEIGHTINGS*:
(PERFORMANCE GRAPH)
Financials 17.1%
Healthcare 14.5%
Consumer Staples 12.4%
Industrials 11.4%
Consumer Discretionary 9.0%
Utilities 8.4%
Telecommunication Services 7.9%
Information Technology 7.4%
Short-Term Investments 5.3%
Materials 3.6%
Energy 3.0%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [95.1%]
AEROSPACE & DEFENSE [4.9%]
General Dynamics 9,000 $ 374
Goodrich 16,400 622
Lockheed Martin 13,000 897
Northrop Grumman 14,500 633
Raytheon 22,700 884
-----------
TOTAL AEROSPACE & DEFENSE 3,410
===========
AIR FREIGHT & LOGISTICS [0.6%]
FedEx 9,600 427
===========
BEVERAGES [3.4%]
Coca-Cola 24,700 1,086
Coca-Cola Enterprises 25,200 332
Molson Coors Brewing, Cl B 15,400 528
Pepsi Bottling Group 17,300 383
-----------
TOTAL BEVERAGES 2,329
===========
BIOTECHNOLOGY [0.9%]
Genzyme - General Division* 10,000 594
CAPITAL MARKETS [3.6%]
Bank of New York Mellon 28,900 817
Goldman Sachs Group 11,200 1,187
State Street 15,000 462
-----------
TOTAL CAPITAL MARKETS 2,466
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CHEMICALS [2.1%]
Dow Chemical 36,000 $ 303
EI Du Pont de Nemours 28,500 636
PPG Industries 14,000 517
-----------
TOTAL CHEMICALS 1,456
===========
COMMERCIAL BANKS [3.5%]
BB&T 21,100 357
PNC Financial Services Group 7,300 214
US Bancorp 33,000 482
Wells Fargo 94,960 1,352
-----------
TOTAL COMMERCIAL BANKS 2,405
===========
COMMUNICATIONS EQUIPMENT [0.7%]
Corning 37,100 492
===========
COMPUTERS & PERIPHERALS [4.2%]
EMC* 15,000 171
Hewlett-Packard 36,600 1,173
IBM 14,300 1,386
Lexmark International, Cl A* 12,000 202
-----------
TOTAL COMPUTERS & PERIPHERALS 2,932
===========
CONSTRUCTION & ENGINEERING [0.3%]
Fluor 5,800 200
===========
CONTAINERS & PACKAGING [0.8%]
Ball 13,200 573
===========
DIVERSIFIED FINANCIAL SERVICES [3.2%]
JPMorgan Chase 83,200 2,211
===========
DIVERSIFIED TELECOMMUNICATION SERVICES [8.0%]
AT&T 129,917 3,274
Verizon Communications 73,509 2,220
-----------
TOTAL DIVERSIFIED
TELECOMMUNICATION SERVICES 5,494
===========
ELECTRIC UTILITIES [5.0%]
Allegheny Energy 14,000 324
American Electric Power 13,000 329
Edison International 32,600 939
Entergy 9,300 633
FPL Group 10,200 518
PPL 24,100 692
-----------
TOTAL ELECTRIC UTILITIES 3,435
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 6
schedule of investments
MARCH 31, 2009 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
ELECTRICAL EQUIPMENT [0.4%]
Emerson Electric 10,200 $ 292
===========
FOOD & STAPLES RETAILING [4.7%]
CVS 13,400 368
Kroger 30,800 654
Safeway 21,400 432
SUPERVALU 14,200 203
Wal-Mart Stores 31,000 1,615
-----------
TOTAL FOOD & STAPLES RETAILING 3,272
===========
FOOD PRODUCTS [2.4%]
Archer-Daniels-Midland 22,400 622
ConAgra Foods 8,000 135
General Mills 13,200 659
Sara Lee 27,000 218
-----------
TOTAL FOOD PRODUCTS 1,634
===========
HEALTH CARE EQUIPMENT & SUPPLIES [3.3%]
Baxter International 23,100 1,183
Becton Dickinson 5,500 370
Covidien 21,800 725
-----------
TOTAL HEALTH CARE
EQUIPMENT & SUPPLIES 2,278
===========
HEALTH CARE PROVIDERS & SERVICES [2.8%]
Aetna 27,600 672
Cigna 33,500 589
McKesson 20,000 701
-----------
TOTAL HEALTH CARE
PROVIDERS & SERVICES 1,962
===========
HOTELS, RESTAURANTS & LEISURE [0.8%]
Darden Restaurants 17,000 582
===========
HOUSEHOLD DURABLES [0.4%]
Whirlpool 8,700 257
===========
HOUSEHOLD PRODUCTS [1.9%]
Procter & Gamble 28,500 1,342
===========
INDUSTRIAL CONGLOMERATES [1.3%]
General Electric 33,500 339
Tyco International 27,600 540
-----------
TOTAL INDUSTRIAL CONGLOMERATES 879
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
INSURANCE [6.8%]
ACE 24,600 $ 994
Aflac 9,600 186
Assurant 15,000 327
Chubb 27,100 1,147
MetLife 13,806 314
Prudential Financial 13,800 262
Travelers 27,000 1,097
Unum Group 30,000 375
-----------
TOTAL INSURANCE 4,702
===========
IT SERVICES [0.4%]
Western Union 20,000 251
===========
LIFE SCIENCES TOOLS & SERVICES [0.6%]
PerkinElmer 32,000 409
===========
MACHINERY [1.3%]
Caterpillar 10,600 296
Eaton 8,400 310
Parker Hannifin 7,700 262
-----------
TOTAL MACHINERY 868
===========
MEDIA [4.2%]
CBS, Cl B 31,250 120
Comcast, Cl A 48,200 657
Omnicom Group 14,700 344
Time Warner 27,933 539
Time Warner Cable, Cl A 7,012 174
Viacom, Cl B* 23,000 400
Walt Disney 35,900 652
-----------
TOTAL MEDIA 2,886
===========
METALS & MINING [0.4%]
United States Steel 12,000 254
===========
MULTILINE RETAIL [0.8%]
Target 15,500 533
===========
MULTI-UTILITIES [3.4%]
Dominion Resources 13,700 425
PG&E 20,300 776
Public Service Enterprise
Group 22,100 651
Sempra Energy 11,200 518
-----------
TOTAL MULTI-UTILITIES 2,370
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 7
schedule of investments
MARCH 31, 2009 (UNAUDITED)
LARGE CAP VALUE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
OIL, GAS & CONSUMABLE FUELS [3.0%]
Chevron 8,240 $ 554
ConocoPhillips 10,580 414
Occidental Petroleum 20,000 1,113
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 2,081
===========
PAPER & FOREST PRODUCTS [0.3%]
MeadWestvaco 20,400 245
===========
PHARMACEUTICALS [7.0%]
Abbott Laboratories 21,700 1,035
Bristol-Myers Squibb 66,000 1,447
Eli Lilly 16,000 535
Merck 14,100 377
Pfizer 104,000 1,416
-----------
TOTAL PHARMACEUTICALS 4,810
===========
REAL ESTATE INVESTMENT TRUSTS [0.1%]
Host Hotels & Resorts 21,000 82
===========
ROAD & RAIL [2.6%]
CSX 31,400 812
Norfolk Southern 12,600 425
Union Pacific 14,500 596
-----------
TOTAL ROAD & RAIL 1,833
===========
SEMICONDUCTORS & SEMICONDUCTOR
EQUIPMENT [1.1%]
Texas Instruments 44,900 741
===========
SOFTWARE [1.0%]
Microsoft 37,500 689
===========
SPECIALTY RETAIL [1.7%]
Best Buy 12,200 463
Lowe's 15,000 274
Sherwin-Williams 8,200 426
-----------
TOTAL SPECIALTY RETAIL 1,163
===========
TEXTILES, APPAREL & LUXURY GOODS [1.2%]
Nike, Cl B 17,900 839
-----------
TOTAL COMMON STOCK
(Cost $92,850) 65,678
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CASH EQUIVALENTS [5.4%]
Fidelity Institutional Domestic
Money Market Portfolio,
Cl I, 0.820%** 2,525,140 $ 2,525
Goldman Sachs Financial
Square Funds - Government
Fund, 0.450%** 1,188,433 1,188
===========
TOTAL CASH EQUIVALENTS
(Cost $3,713) 3,713
===========
TOTAL INVESTMENTS [100.5%]
(Cost $96,563) $ 69,391
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $69,017 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 8
schedule of investments
MARCH 31, 2009 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND
SECTOR WEIGHTINGS*:
(PERFORMANCE GRAPH)
Information Technology 26.9%
Energy 21.1%
Healthcare 13.6%
Consumer Staples 12.4%
Consumer Discretionary 8.1%
Industrials 7.8%
Financials 4.5%
Short-Term Investments 2.7%
Materials 2.6%
Utilities 0.3%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [96.4%]
AEROSPACE & DEFENSE [2.9%]
Boeing 6,000 $ 213
L-3 Communications Holdings,
Cl 3 3,000 203
Lockheed Martin 3,300 228
Precision Castparts 3,600 216
-----------
TOTAL AEROSPACE & DEFENSE 860
===========
AIR FREIGHT & LOGISTICS [0.7%]
Expeditors International of
Washington 7,700 218
===========
BEVERAGES [3.0%]
Coca-Cola 5,800 255
PepsiCo 12,200 628
-----------
TOTAL BEVERAGES 883
===========
BIOTECHNOLOGY [4.5%]
Biogen Idec* 4,600 241
Celgene* 4,400 196
Genzyme - General Division* 6,500 386
Gilead Sciences* 11,400 528
-----------
TOTAL BIOTECHNOLOGY 1,351
===========
CAPITAL MARKETS [2.9%]
Franklin Resources 4,500 243
Goldman Sachs Group 4,000 424
T Rowe Price Group 7,000 202
-----------
TOTAL CAPITAL MARKETS 869
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CHEMICALS [1.2%]
Monsanto 4,200 $ 349
===========
COMMERCIAL SERVICES & SUPPLIES [0.4%]
Pitney Bowes 2,100 49
RR Donnelley & Sons 9,900 72
-----------
TOTAL COMMERCIAL SERVICES & SUPPLIES 121
===========
COMMUNICATIONS EQUIPMENT [4.1%]
Harris 5,100 148
Juniper Networks, Inc.* 5,000 75
Qualcomm 25,500 992
-----------
TOTAL COMMUNICATIONS EQUIPMENT 1,215
===========
COMPUTERS & PERIPHERALS [6.7%]
Apple* 5,375 565
Hewlett-Packard 13,723 440
IBM 10,200 988
-----------
TOTAL COMPUTERS & PERIPHERALS 1,993
===========
CONSTRUCTION & ENGINEERING [0.9%]
Fluor 3,500 121
Jacobs Engineering Group* 3,700 143
-----------
TOTAL CONSTRUCTION & ENGINEERING 264
===========
DIVERSIFIED FINANCIAL SERVICES [0.8%]
CME Group, Cl A 1,000 246
===========
ELECTRIC UTILITIES [0.3%]
Edison International 3,100 89
===========
ENERGY EQUIPMENT & SERVICES [4.3%]
Baker Hughes 4,500 128
ENSCO International 10,300 272
Noble 13,100 316
Schlumberger 11,300 459
Smith International 4,700 101
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 1,276
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 9
schedule of investments
MARCH 31, 2009 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
FOOD & STAPLES RETAILING [3.1%]
Wal-Mart Stores 18,075 $ 942
===========
FOOD PRODUCTS [1.4%]
General Mills 4,300 214
Kellogg 5,700 209
-----------
TOTAL FOOD PRODUCTS 423
===========
HEALTH CARE EQUIPMENT & SUPPLIES [2.9%]
Bard (C.R.) 3,200 255
Baxter International 2,500 128
Stryker 9,300 317
Zimmer Holdings* 4,900 179
-----------
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES 879
===========
HEALTH CARE PROVIDERS & SERVICES [2.3%]
DaVita* 3,400 150
McKesson 4,300 151
UnitedHealth Group 18,700 391
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 692
===========
HOUSEHOLD PRODUCTS [4.2%]
Colgate-Palmolive 9,400 555
Procter & Gamble 15,102 711
-----------
TOTAL HOUSEHOLD PRODUCTS 1,266
===========
INSURANCE [0.4%]
Aflac 6,600 128
===========
INTERNET & CATALOG RETAIL [1.1%]
Amazon.Com* 4,400 323
===========
INTERNET SOFTWARE & SERVICES [5.0%]
eBay* 30,575 384
Google, Cl A* 2,600 905
Yahoo!* 15,000 192
-----------
TOTAL INTERNET SOFTWARE & SERVICES 1,481
===========
MACHINERY [2.1%]
Caterpillar 10,700 299
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
Cummins 4,100 $ 105
Danaher 4,100 222
-----------
TOTAL MACHINERY 626
===========
MEDIA [2.3%]
Comcast, Cl A 18,150 248
DIRECTV Group* 12,700 289
Omnicom Group 6,000 140
-----------
TOTAL MEDIA 677
===========
METALS & MINING [1.4%]
Freeport-McMoRan Copper & Gold 7,000 267
Nucor 4,200 160
-----------
TOTAL METALS & MINING 427
===========
MULTILINE RETAIL [0.7%]
Kohl's* 1,900 80
Target 4,000 138
-----------
TOTAL MULTILINE RETAIL 218
===========
OIL, GAS & CONSUMABLE FUELS [16.7%]
Apache 3,300 212
Chevron 18,000 1,210
ConocoPhillips 5,600 219
EOG Resources 4,900 268
Exxon Mobil 32,000 2,179
Occidental Petroleum 8,200 456
Southwestern Energy* 5,000 149
XTO Energy 9,400 288
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 4,981
===========
PERSONAL PRODUCTS [0.5%]
Avon Products 8,300 160
===========
PHARMACEUTICALS [3.7%]
Abbott Laboratories 5,000 238
Johnson & Johnson 16,664 877
-----------
TOTAL PHARMACEUTICALS 1,115
===========
PROFESSIONAL SERVICES [0.5%]
Robert Half International 8,400 150
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 10
schedule of investments
MARCH 31, 2009 (UNAUDITED)
LARGE CAP GROWTH EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
ROAD & RAIL [0.2%]
CSX 2,300 $ 59
===========
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [1.3%]
MEMC Electronic Materials* 9,500 156
Texas Instruments 14,400 238
-----------
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 394
===========
SOFTWARE [9.6%]
Adobe Systems* 3,000 64
Autodesk* 13,100 220
Citrix Systems* 8,275 187
Microsoft 62,180 1,142
Oracle 43,265 782
Symantec* 31,300 468
-----------
TOTAL SOFTWARE 2,863
===========
SPECIALTY RETAIL [2.3%]
Autozone* 2,500 407
Best Buy 4,200 159
GameStop, Cl A* 4,500 126
-----------
TOTAL SPECIALTY RETAIL 692
===========
TEXTILES, APPAREL & LUXURY GOODS [1.7%]
Coach* 18,100 302
Nike, Cl B 4,300 202
-----------
TOTAL TEXTILES, APPAREL & LUXURY GOODS 504
===========
THRIFTS & MORTGAGE FINANCE [0.3%]
Hudson City Bancorp 8,000 94
===========
TOTAL COMMON STOCK
(Cost $37,116) 28,828
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CASH EQUIVALENTS [2.7%]
Fidelity Institutional Domestic
Money Market Portfolio, Cl I, 0.820%** 470,591 $ 471
Goldman Sachs Financial Square
Funds - Government Fund, 0.450%** 333,155 333
===========
TOTAL CASH EQUIVALENTS
(Cost $804) 804
===========
TOTAL INVESTMENTS [99.1%]
(Cost $37,920) $ 29,632
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $29,899 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 11
schedule of investments
MARCH 31, 2009 (UNAUDITED)
RCB SMALL CAP VALUE FUND
SECTOR WEIGHTINGS*:
(PERFORMANCE GRAPH)
Consumer Discretionary 27.0%
Financials 18.5%
Materials 12.8%
Consumer Staples 12.4%
Industrials 9.3%
Information Technology 6.9%
Healthcare 4.2%
Energy 4.1%
Short-Term Investments 3.1%
Telecommunication Services 1.7%
Warrants 0.0%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [99.8%]
AUTO COMPONENTS [2.4%]
Autoliv 19,600 $ 364
===========
BEVERAGES [2.0%]
PepsiAmericas 17,100 295
===========
CHEMICALS [8.0%]
Nalco Holding 58,400 763
Spartech 173,800 428
-----------
TOTAL CHEMICALS 1,191
===========
COMMERCIAL SERVICES & SUPPLIES [2.7%]
PHH* 28,600 402
===========
CONSTRUCTION MATERIALS [2.1%]
Eagle Materials 13,000 315
===========
DIVERSIFIED CONSUMER SERVICES [6.1%]
Coinstar* 10,500 344
Washington Post, Cl B 1,600 571
-----------
TOTAL DIVERSIFIED CONSUMER SERVICES 915
===========
ENERGY EQUIPMENT & SERVICES [4.2%]
Exterran Holdings* 16,900 271
Global Industries* 92,700 356
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 627
===========
FOOD PRODUCTS [3.9%]
Ralcorp Holdings* 10,900 587
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
HOTELS, RESTAURANTS & LEISURE [5.9%]
Wendy's/Arby's Group, Cl A 173,839 $ 874
===========
HOUSEHOLD PRODUCTS [9.4%]
Central Garden & Pet, Cl A* 136,100 1,023
Scotts Miracle-Gro, Cl A 10,800 375
-----------
TOTAL HOUSEHOLD PRODUCTS 1,398
===========
INSURANCE [10.5%]
Alleghany* 1,983 537
First American 12,800 339
White Mountains Insurance Group 4,000 688
-----------
TOTAL INSURANCE 1,564
===========
INTERNET & CATALOG RETAIL [3.1%]
Liberty Media - Interactive* 160,000 464
===========
INTERNET SOFTWARE & SERVICES [2.8%]
United Online 93,000 415
===========
LIFE SCIENCES TOOLS & SERVICES [4.4%]
PerkinElmer 50,700 648
===========
MACHINERY [6.9%]
Actuant, Cl A 33,800 349
Crane 19,800 334
IDEX 15,400 337
-----------
TOTAL MACHINERY 1,020
===========
MEDIA [7.8%]
Fisher Communications 36,247 354
Liberty Media - Capital* 64,402 450
Virgin Media 73,100 351
-----------
TOTAL MEDIA 1,155
===========
METALS & MINING [0.5%]
Barzel Industries* 253,300 76
===========
MULTILINE RETAIL [2.5%]
99 Cents Only Stores* 40,000 370
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 12
schedule of investments
MARCH 31, 2009 (UNAUDITED)
RCB SMALL CAP VALUE FUND (CONCLUDED)
SHARES/FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
REAL ESTATE INVESTMENT TRUSTS [8.5%]
Annaly Capital Management 40,700 $ 564
Chimera Investment 208,500 701
-----------
TOTAL REAL ESTATE INVESTMENT TRUSTS 1,265
===========
SOFTWARE [4.3%]
Fair Isaac 20,000 281
PLATO Learning* 202,200 360
-----------
TOTAL SOFTWARE 641
===========
WIRELESS TELECOMMUNICATION SERVICES [1.8%]
iPCS* 26,900 261
===========
TOTAL COMMON STOCK
(Cost $22,785) 14,847
===========
REPURCHASE AGREEMENT (A) [3.2%]
Morgan Stanley
0.050%, dated 03/31/09, to be repurchased on
04/01/09, repurchase price $473,934
(collateralized by a U.S. Treasury Note,
par value $321,259, 8.000%, 11/15/21; with
total market value $483,414) $ 474 474
-----------
TOTAL REPURCHASE AGREEMENT
(Cost $474) 474
===========
WARRANTS [0.0%]
Barzel Industries,
Expires 03/07/11* 72,000 2
===========
TOTAL WARRANTS
(Cost $103) 2
===========
TOTAL INVESTMENTS [103.0%]
(Cost $23,362) $ 15,323
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $14,875 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
(A) TRI-PARTY REPURCHASE AGREEMENT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 13
schedule of investments
MARCH 31, 2009 (UNAUDITED)
OPPORTUNISTIC VALUE FUND
SECTOR WEIGHTINGS*:
(PERFORMANCE GRAPH)
Financials 21.0%
Healthcare 17.3%
Energy 15.2%
Consumer Staples 11.7%
Information Technology 9.3%
Industrials 7.0%
Consumer Discretionary 4.9%
Materials 4.8%
Telecommunication Services 3.9%
Short-Term Investments 3.9%
Utilities 1.0%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
COMMON STOCK [95.6%]
BEVERAGES [3.2%]
PepsiCo 11,800 $ 608
===========
COMMERCIAL BANKS [6.3%]
M&T Bank 7,500 339
US Bancorp 41,000 599
Wells Fargo 19,500 278
-----------
TOTAL COMMERCIAL BANKS 1,216
===========
COMMERCIAL SERVICES & SUPPLIES [1.0%]
Avery Dennison 8,600 192
===========
COMMUNICATIONS EQUIPMENT [2.9%]
Nokia, ADR 48,000 560
===========
COMPUTERS & PERIPHERALS [2.3%]
Dell* 45,500 431
===========
CONTAINERS & PACKAGING [4.8%]
Crown Holdings* 18,100 411
Sealed Air 37,300 515
-----------
TOTAL CONTAINERS & PACKAGING 926
===========
DISTRIBUTORS [1.0%]
Genuine Parts 6,200 185
===========
DIVERSIFIED FINANCIAL SERVICES [3.2%]
Nasdaq OMX Group* 31,800 623
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
DIVERSIFIED TELECOMMUNICATION SERVICES [3.9%]
AT&T 29,700 $ 749
===========
ELECTRICAL EQUIPMENT [1.9%]
Baldor Electric 25,000 362
===========
ENERGY EQUIPMENT & SERVICES [4.4%]
Exterran Holdings* 27,800 445
Unit* 19,000 398
-----------
TOTAL ENERGY EQUIPMENT & SERVICES 843
===========
FOOD & STAPLES RETAILING [5.4%]
SUPERVALU 37,900 541
Walgreen 19,100 496
-----------
TOTAL FOOD & STAPLES RETAILING 1,037
===========
FOOD PRODUCTS [3.0%]
Del Monte Foods 80,000 583
===========
GAS UTILITIES [1.0%]
Atmos Energy 8,000 185
===========
HEALTH CARE EQUIPMENT & SUPPLIES [3.3%]
Covidien 19,200 638
===========
HEALTH CARE PROVIDERS & SERVICES [9.6%]
Laboratory Corp of America Holdings* 6,600 386
McKesson 12,800 448
Patterson* 23,400 441
Quest Diagnostics 11,700 556
-----------
TOTAL HEALTH CARE PROVIDERS & SERVICES 1,831
===========
INDUSTRIAL CONGLOMERATES [4.1%]
3M 3,800 189
Tyco International 30,800 602
-----------
TOTAL INDUSTRIAL CONGLOMERATES 791
===========
INSURANCE [8.8%]
Chubb 14,300 605
HCC Insurance Holdings 29,700 748
Unum Group 26,500 332
-----------
TOTAL INSURANCE 1,685
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 14
schedule of investments
MARCH 31, 2009 (UNAUDITED)
OPPORTUNISTIC VALUE FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
LEISURE EQUIPMENT & PRODUCTS [1.6%]
Mattel 26,000 $ 300
===========
MEDIA [2.3%]
Time Warner 17,567 339
Time Warner Cable, Cl A 4,409 110
-----------
TOTAL MEDIA 449
===========
OFFICE ELECTRONICS [0.9%]
Xerox 37,000 168
===========
OIL, GAS & CONSUMABLE FUELS [10.7%]
Chesapeake Energy 46,000 785
ConocoPhillips 14,400 564
Spectra Energy 37,100 525
Valero Energy 10,200 182
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 2,056
===========
PHARMACEUTICALS [4.3%]
Johnson & Johnson 3,600 190
Mylan* 45,200 606
Schering-Plough 1,500 35
-----------
TOTAL PHARMACEUTICALS 831
===========
REAL ESTATE MANAGEMENT & DEVELOPMENT [2.5%]
Brookfield Asset Management, Cl A 34,700 478
===========
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT [2.1%]
Applied Materials 37,500 403
===========
SOFTWARE [1.1%]
Symantec* 14,000 209
===========
TOTAL COMMON STOCK
(Cost $17,203) 18,339
===========
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
CASH EQUIVALENT [3.9%]
First American Prime Obligations Fund,
Cl Y, 0.360%** 739 $ 739
-----------
TOTAL CASH EQUIVALENT
(Cost $739) 739
===========
TOTAL INVESTMENTS [99.5%]
(Cost $17,942) $ 19,078
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $19,175 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
** THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 15
schedule of investments
MARCH 31, 2009 (UNAUDITED)
MULTI-ASSET FUND
TYPE OF SECURITY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Exchange Traded Funds 37.7%
Short-Term Investments 28.8%
Affiliated Investment Funds 16.9%
Commercial Paper 9.7%
Corporate Bond 3.5%
U.S. Government Agency Obligation 3.4%
* Percentages based on total investments.
SHARES/FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
EXCHANGE TRADED FUNDS [37.6%]
iShares Barclays 1-3 Year Credit Bond Fund 21 $ 2,037
iShares iBoxx High Yield Corporate Bond Fund 15 992
SPDR S&P 500 Fund, Ser 1 65 5,126
-----------
TOTAL EXCHANGE TRADED FUNDS
(Cost $10,511) 8,155
===========
AFFILIATED INVESTMENT FUNDS [16.9%]
CNI Corporate Bond Fund,
Institutional Class 201 2,001
CNI Government Bond Fund,
Institutional Class 158 1,660
-----------
TOTAL AFFILIATED INVESTMENT FUNDS
(Cost $3,706) 3,661
===========
CORPORATE BOND [3.5%]
FINANCIAL SERVICES [3.5%]
John Deere Capital, MTN 4.625%, 04/15/09 750 751
-----------
TOTAL CORPORATE BOND
(Cost $750) 751
===========
U.S. GOVERNMENT AGENCY OBLIGATION [3.5%]
FNMA (A)
1.244%, 07/13/10 750 750
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $750) 750
===========
CASH EQUIVALENT [28.7%]
Goldman Sachs Financial Square Funds -
Government Fund, 0.460%* 6,233 6,233
-----------
TOTAL CASH EQUIVALENT
(Cost $6,233) 6,233
===========
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
COMMERCIAL PAPER (B) [9.7%]
BANKS [6.5%]
Bank of Ireland
1.113%, 04/15/09 700 $ 700
Lloyds TSB Bank
1.103%, 04/09/09 700 700
UBS Finance Delaware
1.199%, 04/14/09 700 699
-----------
TOTAL BANKS 2,099
===========
TOTAL COMMERCIAL PAPER
(Cost $2,099) 2,099
===========
TOTAL INVESTMENTS [99.9%]
(Cost $24,049) $ 21,649
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $21,678 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2009.
(B) RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SER -- SERIES
SPDR -- STANDARD & POOR'S DEPOSITORY RECEIPTS
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 16
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CORPORATE BOND FUND
ISSUER INDUSTRY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Financials 34.2%
Industrials 24.5%
Banks 14.6%
Telephone 6.9%
U.S. Government Mortgage-Backed Obligations 6.1%
Short-Term Investment 3.7%
Utilities 3.2%
Municipal Bonds 2.8%
U.S. Government Agency Obligations 2.5%
U.S. Treasury Obligation 0.8%
Foreign Governments 0.7%
* Percentages based on total investments.
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
CORPORATE BONDS [84.1%]
AUTOMOTIVE [0.8%]
DaimlerChrysler
5.875%, 03/15/11 $ 570 $ 546
===========
BANKS [14.6%]
Bank of America
5.300%, 03/15/17 1,000 735
Barclays Bank (A)
6.050%, 12/04/17 1,000 786
Deutsche Bank
7.500%, 04/25/09 500 500
7.250%, 10/15/11 500 515
PNC Funding, FDIC Insured
1.875%, 06/22/11 1,150 1,156
US Bank
6.375%, 08/01/11 1,485 1,560
Wachovia Bank
4.800%, 11/01/14 1,270 1,056
Wells Fargo, FDIC Insured
3.000%, 12/09/11 2,200 2,275
Wells Fargo Bank
7.550%, 06/21/10 1,000 1,007
4.625%, 08/09/10 1,000 987
-----------
TOTAL BANKS 10,577
===========
BEAUTY PRODUCTS [1.1%]
Avon Products
7.150%, 11/15/09 800 817
===========
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
COMMUNICATION & MEDIA [4.0%]
AOL Time Warner
6.750%, 04/15/11 $ 415 $ 421
Comcast Cable Communications Holdings
8.375%, 03/15/13 440 471
News America Holdings
9.250%, 02/01/13 450 477
Walt Disney, MTN
5.700%, 07/15/11 1,395 1,494
-----------
TOTAL COMMUNICATION & MEDIA 2,863
===========
COMPUTER SYSTEM DESIGN & SERVICES [3.3%]
Cisco Systems
5.500%, 02/22/16 1,250 1,323
Hewlett-Packard
6.125%, 03/01/14 1,000 1,065
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 2,388
===========
DIVERSIFIED OPERATIONS [0.7%]
3M, MTN
4.375%, 08/15/13 500 526
===========
DRUGS [1.4%]
Abbott Laboratories
5.375%, 05/15/09 1,000 1,004
===========
ELECTRICAL SERVICES [2.3%]
Alabama Power
4.850%, 12/15/12 210 217
American Electric Power
5.250%, 06/01/15 490 459
WPS Resources
7.000%, 11/01/09 1,000 1,012
-----------
TOTAL ELECTRICAL SERVICE 1,688
===========
FINANCE AUTO LOANS [3.9%]
American Honda Finance, MTN (A)
5.125%, 12/15/10 1,000 985
Toyota Motor Credit
4.350%, 12/15/10 1,800 1,843
-----------
TOTAL FINANCE AUTO LOANS 2,828
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 17
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CORPORATE BOND FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
FINANCIAL SERVICES [15.3%]
American General Finance, MTN
5.750%, 09/15/16 $ 500 $ 181
American General Finance,
Ser I, MTN
4.625%, 05/15/09 1,000 936
AXA Financial
7.750%, 08/01/10 1,000 990
Boeing Capital
6.500%, 02/15/12 930 981
CIT Group
5.400%, 03/07/13 1,000 624
General Electric Capital, FDIC Insured
2.200%, 06/08/12 2,805 2,823
General Electric Capital, Ser A, MTN
6.875%, 11/15/10 250 253
6.000%, 06/15/12 1,540 1,518
HSBC Finance
5.250%, 04/15/15 1,250 951
John Deere Capital, MTN
4.625%, 04/15/09 750 751
National Rural Utilities, Ser C, MTN
7.250%, 03/01/12 1,000 1,039
-----------
TOTAL FINANCIAL SERVICES 11,047
===========
FOOD, BEVERAGE & TOBACCO [5.3%]
Anheuser-Busch
7.500%, 03/15/12 665 702
Bottling Group
5.500%, 04/01/16 1,000 1,063
4.625%, 11/15/12 1,435 1,482
General Mills
6.000%, 02/15/12 560 590
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 3,837
===========
FOREIGN GOVERNMENTS [0.7%]
United Mexican States, MTN
5.875%, 01/15/14 450 465
-----------
INSURANCE [3.7%]
Aflac
6.500%, 04/15/09 1,150 1,151
Berkshire Hathaway Finance
4.125%, 01/15/10 1,475 1,499
-----------
TOTAL INSURANCE 2,650
===========
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
INVESTMENT BANKER/BROKER DEALER [11.3%]
Citigroup
5.850%, 08/02/16 $ 1,000 $ 803
5.500%, 02/15/17 250 157
Credit Suisse
5.500%, 08/15/13 1,250 1,234
Goldman Sachs Group
5.625%, 01/15/17 1,260 981
Jefferies Group
5.500%, 03/15/16 665 490
JPMorgan Chase
7.125%, 06/15/09 675 677
6.750%, 02/01/11 500 510
JPMorgan Chase, MTN (B)
1.760%, 06/28/09 1,000 953
Merrill Lynch, Ser C, MTN
4.250%, 02/08/10 1,275 1,203
Morgan Stanley
6.750%, 04/15/11 30 30
5.300%, 03/01/13 1,215 1,168
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 8,206
===========
PETROLEUM & FUEL PRODUCTS [3.7%]
ConocoPhillips
4.750%, 02/01/14 1,400 1,456
ConocoPhillips Canada Funding I
5.625%, 10/15/16 600 621
Duke Capital
5.500%, 03/01/14 625 600
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 2,677
===========
RETAIL [4.1%]
Home Depot
5.250%, 12/16/13 1,000 975
Kohl's
6.300%, 03/01/11 1,000 1,009
Kroger
5.500%, 02/01/13 450 461
Target
5.875%, 07/15/16 500 519
-----------
TOTAL RETAIL 2,964
===========
TELEPHONES & TELECOMMUNICATIONS [6.9%]
AT&T
8.125%, 05/01/12 400 436
6.250%, 03/15/11 1,485 1,551
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 18
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CORPORATE BOND FUND (CONTINUED)
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------- ------------ -----------
BellSouth
4.200%, 09/15/09 $ 1,000 $ 1,009
Deutsche Telekom International Finance
5.250%, 07/22/13 475 474
Verizon Communications
5.550%, 02/15/16 1,000 984
Verizon Global Funding
7.250%, 12/01/10 525 555
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 5,009
===========
WASTE DISPOSAL [1.0%]
Waste Management
6.875%, 05/15/09 735 737
-----------
TOTAL CORPORATE BONDS
(Cost $62,934) 60,829
===========
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [6.1%]
FFCB REMIC, Ser IA4, Cl 1
5.770%, 02/21/14 684 689
FHLMC REMIC, Ser 2982, Cl NB
5.500%, 02/15/29 450 463
FHLMC REMIC, Ser R004, Cl A1
5.125%, 12/15/13 670 684
FHLMC REMIC, Ser R015, Cl AN
3.750%, 02/15/13 698 701
FNMA REMIC, Ser 2002-56, Cl MC
5.500%, 09/25/17 770 810
FNMA REMIC, Ser 2006-B1, Cl AB
6.000%, 06/25/16 194 197
FNMA REMIC, Ser 2007-B1, Cl BE
5.450%, 12/25/20 798 832
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $4,272) 4,376
===========
FACE AMOUNT
DESCRIPTION (000)/SHARES VALUE (000)
- --------------------------------------------------- ------------ -----------
MUNICIPAL BONDS [2.8%]
CALIFORNIA [1.3%]
California State, City of Industry,
Sales Tax Project, RB, NATL
5.000%, 01/01/12 $ 955 $ 960
===========
WISCONSIN [1.5%]
De Pere, Unified School District,
GO, FGIC
Pre-Refunded @ 100 (C)
4.500%, 10/01/11 995 1,080
===========
TOTAL MUNICIPAL BONDS
(Cost $2,001) 2,040
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [2.6%]
FHLMC
5.500%, 09/15/11 460 503
5.125%, 04/18/11 1,250 1,340
-----------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(Cost $1,769) 1,843
===========
CASH EQUIVALENT [3.7%]
Goldman Sachs Financial Square
Funds - Government Fund,
0.450%* 2,690,190 2,690
-----------
TOTAL CASH EQUIVALENT
(Cost $2,690) 2,690
===========
U.S. TREASURY OBLIGATION [0.8%]
U.S.Treasury Inflation Protection
Security
2.000%, 01/15/14 572 589
-----------
TOTAL U.S. TREASURY OBLIGATION
(Cost $583) 589
===========
TOTAL INVESTMENTS [100.1%]
(Cost $74,249) $ 72,367
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 19
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CORPORATE BOND FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $72,303 ($ THOUSANDS).
* 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 $1,771(000), REPRESENTING 2.4% OF
THE NET ASSETS OF THE FUND.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON
MARCH 31, 2009.
(C) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
CL -- CLASS
FFCB -- FEDERAL FARM CREDIT BANK
FDIC -- FEDERAL DEPOSIT INSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MTN -- MEDIUM TERM NOTE
NATL -- NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION (FORMERLY MBIA-IL).
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 20
schedule of investments
MARCH 31, 2009 (UNAUDITED)
GOVERNMENT BOND FUND
TYPE OF SECURITY WEIGHTINGS*:
(PERFORMANCE GRAPH)
U.S. Government Mortgage-Backed Obligations 58.8%
U.S. Government Agency Obligations 32.5%
U.S. Treasury Obligations 7.5%
Short-Term Investments 1.2%
* Percentages based on total investments.
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [58.7%]
FFCB REMIC, Ser IA2, Cl 1
5.220%, 10/21/13 $ 1,722 $ 1,735
FFCB REMIC, Ser IA3, Cl 1
5.370%, 09/25/13 3,159 3,254
FFCB REMIC, Ser IA4, Cl 1
5.770%, 02/21/14 3,332 3,357
FFCB REMIC, Ser IA8, Cl 1
4.650%, 01/21/14 2,664 2,669
FHLMC REMIC, Ser R002,
Cl AH
4.750%, 07/15/15 1,510 1,529
FHLMC REMIC, Ser R003, Cl AG
5.125%, 10/15/15 1,755 1,781
FHLMC REMIC, Ser R005, Cl AB
5.500%, 12/15/18 863 880
FHLMC REMIC, Ser R007, Cl AC
5.875%, 05/15/16 1,542 1,569
FHLMC REMIC, Ser R009, Cl AK
5.750%, 12/15/18 1,759 1,800
FHLMC REMIC, Ser R010, Cl AB
5.500%, 12/15/19 3,827 3,905
FHLMC REMIC, Ser R011, Cl AB
5.500%, 12/15/20 1,730 1,771
FHLMC REMIC, Ser R012, Cl AB
5.500%, 12/15/20 1,463 1,496
FHLMC REMIC, Ser R013, Cl AB
6.000%, 12/15/21 1,925 1,971
FHLMC REMIC, Ser R014, Cl AL
5.500%, 10/15/14 899 908
FHLMC REMIC, Ser R015, Cl AN
3.750%, 02/15/13 2,393 2,403
FHLMC REMIC, Ser R016, Cl AM
5.125%, 06/15/18 3,565 3,650
FNMA ARM (A)
4.537%, 03/01/34 643 659
FNMA REMIC, Ser 119, Cl DG
5.500%, 01/25/36 597 602
FNMA REMIC, Ser R009, Cl AJ
5.750%, 12/15/18 2,732 2,796
GNMA
8.000%, 08/15/22 12 13
7.500%, 06/15/24 6 7
7.500%, 05/15/26 6 6
FACE
AMOUNT
(000)/
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
7.500%, 04/15/32 $ 31 $ 33
7.000%, 12/15/16 14 15
6.000%, 01/15/29 13 14
GNMA ARM (A)
4.000%, 08/20/35 158 157
3.625%, 04/20/35 648 640
GNMA REMIC, Ser 31, Cl PB
5.500%, 02/16/32 3,592 3,706
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $42,667) 43,326
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [32.4%]
FFCB
3.500%, 10/03/11 2,000 2,087
FHLB
5.000%, 12/11/15 2,500 2,802
2.250%, 04/13/12 4,000 4,030
FNMA
7.125%, 06/15/10 4,000 4,292
6.625%, 09/15/09 2,750 2,822
6.250%, 02/01/11 3,870 4,088
5.500%, 03/15/11 3,500 3,775
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $23,224) 23,896
===========
U.S. TREASURY OBLIGATIONS [7.5%]
U.S.Treasury Notes
6.000%, 08/15/09 4,950 5,055
4.500%, 02/28/11 410 439
4.250%, 08/15/13 45 50
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,509) 5,544
===========
CASH EQUIVALENT [1.2%]
Goldman Sachs Financial Square
Funds - Government Fund,
0.450%* 887,096 887
-----------
TOTAL CASH EQUIVALENT
(Cost $887) 887
===========
TOTAL INVESTMENTS [99.8%]
(Cost $72,287) $ 73,653
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 21
schedule of investments
MARCH 31, 2009 (UNAUDITED)
GOVERNMENT BOND FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $73,829 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
(A) FLOATING
RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH 31, 2009.
ARM -- ADJUSTABLE RATE MORTGAGE
CL -- CLASS
FFCB -- FEDERAL CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 22
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND
ISSUER INDUSTRY WEIGHTINGS*:
(PERFORMANCE GRAPH)
General Revenue 28.3%
Education 22.4%
General Obligation 17.2%
Healthcare 6.9%
Water 6.8%
Public Facilities 4.3%
Industrial Development 3.9%
Power 2.4%
Airport 2.3%
Transportation 1.7%
Utilities 1.6%
Equipment 0.9%
Housing 0.7%
Short-Term Investments 0.6%
* Percentages based on total investments.
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
MUNICIPAL BONDS [95.0%]
ARIZONA [2.3%]
Arizona School Facilities Board,
Ser C, COP, FSA
Callable 09/01/14 @ 100
5.000%, 09/01/15 $ 750 $ 829
===========
CALIFORNIA [79.7%]
Antelope Valley, Unified High School
District, Ser A, GO, NATL
Callable 08/01/12 @ 101
5.000%, 08/01/23 250 253
Azusa, Redevelopment Agency,
Mortgage-Backed Securities
Program, Ser A, RB, ETM (A)
6.875%, 10/01/12 200 237
Bay Area, Infrastructure Financing
Authority, State Payment
Acceleration Project, RB, XLCA
Callable 08/01/11 @ 100
5.000%, 08/01/14 500 517
Bay Area, Infrastructure Financing
Authority, State Payment
Acceleration Project, RB,
NATL-RE FGIC
Callable 08/01/14 @ 100
5.000%, 08/01/17 350 355
Big Bear Lake, Water
Authority, RB, NATL
6.000%, 04/01/11 200 205
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Burbank, Public Financing
Authority, Golden State
Redevelopment Project,
Ser A, TA, AMBAC
Callable 12/01/13 @ 100
5.250%, 12/01/18 $ 100 $ 101
Burbank, Public Financing
Authority, Golden State
Redevelopment Project,
Ser A, TA, AMBAC
Pre-Refunded @ 100 (B)
5.250%, 12/01/13 75 87
California State, Department
of Water Resources, Water
Systems Project J-2, RB
7.000%, 12/01/12 500 594
California State, Economic
Recovery Authority, Ser A, GO,
NATL
Callable 07/01/14 @ 100
5.000%, 07/01/15 500 533
California State, Economic
Recovery Authority, Ser A, GO
5.250%, 01/01/11 50 53
California State, Economic
Recovery Authority, Ser A, GO
5.250%, 07/01/13 500 544
California State, Educational
Facilities Authority, Pooled
College & University Projects,
Ser A, RB
4.300%, 04/01/09 100 100
California State, Educational
Facilities Authority, Stanford
University Project, Ser T-4, RB
5.000%, 03/15/14 350 397
California State, GO
Callable 02/01/12 @ 100
5.000%, 02/01/18 175 177
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 09/01/10 165 174
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 09/01/10 10 11
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 09/01/10 25 26
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 10/01/10 20 21
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 23
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
California State, GO
Pre-Refunded @ 100 (B)
5.000%, 02/01/12 $ 400 $ 443
California State, GO
Pre-Refunded @ 100 (B)
5.250%, 04/01/12 200 224
California State, GO
5.000%, 04/01/10 215 221
California State, Health
Facilities Financing Authority,
Healthcare West Project,
Ser G, RB
5.000%, 07/01/10 500 508
California State, Health
Facilities Financing Authority,
Valley Care Project, Ser A, RB
Pre-Refunded @ 100 (B)
5.375%, 05/01/12 500 560
California State, Infrastructure &
Economic Authority, Bay Area
Toll Bridges Project, Ser A,
RB, FSA
Pre-Refunded @ 100 (B)
5.250%, 07/01/13 125 144
California State, Public Works
Board Lease, Department of
Corrections Project, Ser B,
RB, NATL
Callable 05/04/09 @ 101
5.000%, 09/01/21 100 99
California State, Public Works
Board Lease, Department of
Corrections-Administration
Project, Ser A, RB, AMBAC
Callable 03/01/12 @ 100
5.250%, 03/01/18 155 156
California State, Public Works
Board Lease, Department of
General Services - Butterfield
Street Project, Ser A, RB
5.000%, 06/01/10 500 515
California State, Public Works
Board Lease, Department of
Mental Health Project,
Ser A, RB
5.250%, 06/01/13 200 212
California State, Public Works
Board Lease, Various University
Projects, Ser A, RB, NATL
5.500%, 06/01/14 250 270
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Carlsbad, Public Financing
Authority, Municipal Golf
Course Project, Ser A, RB,
AMBAC
4.500%, 09/01/16 $ 350 $ 381
Castaic Lake, Water Agency,
Water Systems Improvement
Project, Ser A, COP, NATL
7.000%, 08/01/13 300 356
Contra Costa County, Public
Financing Authority, Medical
Center Project, Ser B, RB, NATL
5.000%, 06/01/11 250 266
Corona, Public Financing
Authority, City Hall Project,
Ser B, RB, NATL
Callable 09/01/12 @ 100
5.250%, 09/01/16 350 369
Culver City, Redevelopment
Finance Authority, TA, AMBAC
5.500%, 11/01/14 75 81
Dry Creek, Joint Elementary
School District, Ser A, GO, FSA
3.033%, 08/01/11 200 189
East Bay, Regional Park
District, GO
5.000%, 09/01/13 250 280
Eastern California, Municipal
Water District, Ser A, COP,
NATL
5.000%, 07/01/14 500 558
Escondido, Union School District,
Refunding & Financing Project,
COP, NATL
4.750%, 07/01/19 735 804
Fresno, Unified School District,
Election 2001 Project,
Ser D, GO, NATL
Callable 08/01/13 @ 102
5.000%, 08/01/17 200 213
Fruitvale, School District, GO, FSA
Callable 08/01/09 @ 102
5.000%, 08/01/19 200 205
Golden State, Tobacco Settlement,
Ser A, RB, AMBAC
Callable 06/01/10 @ 100
5.000%, 06/01/13 500 451
Golden State, Tobacco Settlement,
Ser A-1, RB
Pre-Refunded @ 100 (B)
6.750%, 06/01/13 370 435
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHART ERFUNDS | PAGE 24
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Golden State, Tobacco
Settlement, Ser A-3, RB
Pre-Refunded @ 100 (B)
7.875%, 06/01/13 $ 675 $ 824
Golden State, Tobacco
Settlement, Ser B, RB, FGIC
Pre-Refunded @ 100 (B)
5.500%, 06/01/13 100 113
Golden State, Tobacco
Settlement, Ser B, RB
Pre-Refunded @ 100 (B)
5.625%, 06/01/13 500 567
Golden State, Tobacco
Settlement, Ser B, RB
Pre-Refunded @ 100 (B)
5.500%, 06/01/13 1,000 1,128
Hawthorne, School District,
COP, FSA
Pre-Refunded @ 101 (B)
6.000%, 11/01/10 470 499
Indio, Public Financing
Authority, Public Capital
Improvement Project,
Ser B, RB, AMBAC (C)
3.800%, 11/01/37 500 495
Kern, High School District,
GO, ETM
7.100%, 08/01/12 290 345
Los Angeles County, Capital
Asset Leasing, Ser A, RB
3.250%, 06/01/10 310 317
Los Angeles County, Metropolitan
Transportation Authority, Ser A,
RB, NATL
Callable 07/01/14 @ 100
5.000%, 07/01/16 200 217
Los Angeles County, Sanitation
Districts Financing Authority,
Capital Projects (District #14),
Sub-Ser B, RB,
NATL-RE FGIC
3.750%, 10/01/14 175 178
Los Angeles, Department of
Water & Power, Ser A
Sub-Ser A-1, RB, NATL
5.000%, 07/01/12 665 735
Los Angeles, Municipal
Improvement Authority, Central
Library Project,
Ser A, RB, NATL
Callable 06/01/12 @ 100
5.500%, 06/01/18 500 532
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Los Angeles, Municipal
Improvement Authority,
Central Library Project,
Ser A, RB, NATL
5.250%, 06/01/12 $ 300 $ 317
Los Angeles, Ser A, GO,
MBIA, FSA-CR
Callable 09/01/12 @ 100
5.000%, 09/01/20 750 782
Los Angeles, Ser A, GO
5.000%, 09/01/15 175 197
Los Angeles, Unified
School District, GO, NATL
5.750%, 07/01/16 500 569
Los Angeles, Unified School
District, Ser A-1, GO, NATL
Callable 07/01/14 @ 100
5.000%, 07/01/17 125 133
Metropolitan Water District,
Southern California
Waterworks Authority,
Ser A, RB, NATL
5.250%, 07/01/11 200 218
Metropolitan Water District,
Southern California Waterworks
Authority, Ser A, RB
5.750%, 07/01/21 280 321
North Orange County,
Community College District,
Ser A, GO, NATL
Pre-Refunded @ 101 (B)
5.375%, 08/01/12 525 602
Northern California,
Transmission Resource
Authority, Ore Transmission
Project, Ser A, RB, NATL
7.000%, 05/01/13 250 273
Oakland, Redevelopment
Agency, Central District
Redevelopment Project, TA,
AMBAC
5.500%, 02/01/14 390 398
Oakland, Ser A, GO, NATL
Callable 01/15/13 @ 100
5.000%, 01/15/21 500 509
Oakley, Civic Center Project, COP
4.000%, 05/01/12 230 240
Orange County, Public Financing
Authority, RB, NATL
5.000%, 07/01/17 1,000 1,040
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 25
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Oxnard, School District, Election
2006 Project, Ser A, GO, CIFG
6.750%, 08/01/11 $ 300 $ 335
Pinole, Redevelopment Agency,
Pinole Vista Redevelopment
Project, TA, FSA
Callable 08/01/09 @ 101
5.250%, 08/01/14 100 102
Redwoods, Community College
District, 2004 Election Project,
Ser A, GO, NATL
Callable 08/01/14 @ 100
5.000%, 08/01/23 420 423
Riverside, Water Authority, RB
Callable 05/04/09 @ 101
5.375%, 10/01/12 90 91
Sacramento, City Unified School
District, Ser A, GO, FSA
4.250%, 07/01/09 75 76
San Diego, Unified School
District, Election 1998 Project,
Ser E, GO, FSA
Callable 07/01/13 @ 101
5.250%, 07/01/16 100 112
San Diego, Unified School
District, Ser D, GO, FGIC
Callable 07/01/12 @ 100
5.000%, 07/01/27 500 546
San Francisco (City & County),
Airports Commission Authority,
Ser 27B, RB, NATL-RE FGIC
Callable 05/01/11 @ 100
5.250%, 05/01/12 250 265
San Francisco (City & County), GO
Callable 06/15/10 @ 102
5.000%, 06/15/11 235 249
San Francisco (City & County),
Ser R1, GO
5.000%, 06/15/14 500 560
San Jose, Unified School District,
Ser A, GO, FSA
Callable 08/01/11 @ 101
5.375%, 08/01/19 150 158
San Ysidro, School District,
Election 1997 Project,
Ser C, GO, NATL
6.000%, 08/01/11 205 225
Sanger, Unified School
District, GO, NATL
5.350%, 08/01/15 250 254
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Santa Margarita, Dana Point
Authority, Ser A, RB, AMBAC
Callable 08/01/14 @ 100
5.000%, 08/01/15 $ 165 $ 180
Santa Monica, Public Financing
Authority, Public Safety Facilities
Project, RB
Callable 07/01/09 @ 101
5.250%, 07/01/14 100 102
Solano County, COP, NATL
Pre-Refunded @ 100 (B)
5.250%, 11/01/12 100 114
Southern Kern, Unified School
District, Ser A, GO, NATL-RE
FGIC
Callable 11/01/13 @ 100
4.500%, 11/01/18 220 225
Tamalpais, Unified High School
District, GO, NATL
Callable 08/01/11 @ 101
4.875%, 08/01/17 100 104
University of California,
Ser B, RB, AMBAC
Pre-Refunded @ 100 (B)
5.500%, 05/15/14 500 584
-----------
TOTAL CALIFORNIA 28,579
===========
ILLINOIS [0.6%]
Illinois State, Civic Center
Authority, RB, FSA
Callable 12/15/10 @ 100
5.500%, 12/15/14 200 209
===========
MISSOURI [0.6%]
St. Louis, Parking Facilities
Authority, Downtown Parking
Facilities Project, Sub-Ser A, RB
Pre-Refunded @ 100 (B)
6.000%, 02/01/12 200 224
===========
NEW JERSEY [1.0%]
New Jersey State, Turnpike
Authority, Ser C, RB,
NATL, ETM
6.500%, 01/01/16 315 370
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 26
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
NEW MEXICO [1.1%]
Santa Fe, Educational Facilities
Authority, College of Santa Fe
Project, RB
Pre-Refunded @ 100 (B)
5.750%, 10/01/14 $ 350 $ 406
===========
NEW YORK [1.6%]
New York State, LocalAssistance
Correction Authority,
Ser E, RB
6.000%, 04/01/14 500 561
===========
RHODE ISLAND [1.5%]
Rhode Island, Economic
Development Authority,
Ser B, RB, FGIC
Pre-Refunded @ 101 (B)
6.000%, 07/01/10 500 538
===========
SOUTH CAROLINA [2.4%]
Columbia, Tourism Development
Fee Pledge Project,
COP, AMBAC
Callable 06/01/13 @ 100
5.250%, 06/01/16 350 376
South Carolina, Jobs &
Economic Development
Authority, Palmetto Health
Project, Ser C, RB
Pre-Refunded @ 100 (B)
6.875%, 08/01/13 400 480
-----------
TOTAL SOUTH CAROLINA 856
===========
TEXAS [0.3%]
San Angelo, Waterworks &
Sewer System Authority,
Refunding & Improvements
Projects, RB, FSA
Callable 04/01/11 @ 100
5.250%, 04/01/19 100 104
===========
WASHINGTON [1.8%]
Clark County, GO, NATL
Pre-Refunded @ 100 (B)
5.125%, 12/01/11 250 277
FACE
AMOUNT
(000)/
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
King County, NJB Properties
Project, Ser A, RB
5.000%, 12/01/14 $ 325 $ 366
===========
TOTAL WASHINGTON 643
WEST VIRGINIA [1.5%]
West Virginia State, Economic
Development Authority,
Correctional Juvenile Project,
Ser A, RB, NATL
Callable 06/01/12 @ 101
5.500%, 06/01/17 500 524
===========
PUERTO RICO [0.6%]
Puerto Rico, Electric Power
Authority, Ser CC, RB, NATL
Callable 05/04/09 @ 101
5.250%, 07/01/09 100 100
Puerto Rico, Municipal Finance
Agency, Ser A, RB, FSA
Callable 05/04/09 @ 101
5.250%, 07/01/10 130 131
-----------
TOTAL PUERTO RICO 231
===========
Total Municipal Bonds
(Cost $33,504) 34,074
===========
CASH EQUIVALENT [0.6%]
Federated California Municipal
Money Market Fund,
Cl I, 0.610%* 212,270 212
-----------
TOTAL CASH EQUIVALENT
(Cost $212) 212
===========
TOTAL INVESTMENTS [95.6%]
(Cost $33,716) $ 34,286
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 27
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT BOND FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $35,867 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
(A) SECURITIES ARE COLLATERALIZED UNDER AN AGREEMENT FROM FNMA.
(B) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
(C) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH
31, 2009.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
CIFG -- CDC IXIS FINANCIAL GUARANTEE
CL -- CLASS
COP -- CERTIFICATE OF PARTICIPATION
ETM -- ESCROW TO MATURITY
FGIC -- FINANCIAL GUARANTEE INSURANCE COMPANY
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSISTANCE
FSA-CR -- SECURITY IS SECONDARILY GUARANTEED BY FSA
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
NATL -- NATIONAL PUBLIC FINANCE GUARANTEE CORPORATION (FORMERLY MBIA-IL)
NATL-RE FGIC -- NATL REINSURES FGIC
RB -- REVENUE BOND
SER -- SERIES
TA -- TAX ALLOCATION
XLCA -- XL CAPITAL ASSURANCE
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 28
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND
ISSUER INDUSTRY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Industrials 74.1%
Utilities 14.0%
Telecommunication Services 4.9%
Financials 4.5%
Transportation 1.4%
Short-Term Investments 1.0%
Common Stock 0.1%
* Percentages based on total investments.
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
CORPORATE BONDS [96.1%]
AEROSPACE & DEFENSE [1.8%]
BE Aerospace
8.500%, 07/01/18 $ 100 $ 83
Esterline Technologies
7.750%, 06/15/13 100 96
L-3 Communications
5.875%, 01/15/15 200 186
TransDigm (F)
7.750%, 07/15/14 100 93
-----------
TOTAL AEROSPACE & DEFENSE 458
===========
AIRLINES [0.2%]
DAE Aviation Holdings (A)
11.250%, 08/01/15 150 38
===========
APPAREL/TEXTILES [0.9%]
Hanesbrands (B)
5.697%, 12/15/14 100 67
Levi Strauss
9.750%, 01/15/15 100 86
Phillips-Van Heusen
7.250%, 02/15/11 75 72
-----------
TOTAL APPAREL/TEXTILES 225
===========
AUTO RENT & LEASE [1.1%]
Avis Budget Car Rental
7.750%, 05/15/16 100 25
H&E Equipment Services
8.375%, 07/15/16 100 63
Hertz
10.500%, 01/01/16 150 65
RSC Equipment Rental
9.500%, 12/01/14 100 49
United Rentals North America
6.500%, 02/15/12 100 80
-----------
TOTAL AUTO RENT & LEASE 282
===========
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
AUTOMOTIVE [0.2%]
General Motors (F)
7.125%, 07/15/13 $ 150 $ 21
UCI Holdco (B)
9.320%, 12/15/13 193 16
-----------
TOTAL AUTOMOTIVE 37
===========
AUTOPARTS [0.7%]
Accuride
8.500%, 02/01/15 150 32
Asbury Automotive Group
7.625%, 03/15/17 100 47
Pep Boys
7.500%, 12/15/14 100 56
TRW Automotive (A)
7.250%, 03/15/17 100 41
-----------
TOTAL AUTOPARTS 176
===========
BEAUTY PRODUCTS [0.4%]
Chattem
7.000%, 03/01/14 100 95
===========
BROADCASTING & CABLE [7.2%]
Allbritton Communications
7.750%, 12/15/12 150 55
Atlantic Broadband Finance
9.375%, 01/15/14 100 79
Barrington Broadcasting Group
10.500%, 08/15/14 100 19
Bonten Media Acquisition (A)
9.000%, 06/01/15 150 26
Cablevision Systems, Ser B
8.000%, 04/15/12 250 243
Charter Communications
Holdings II (C)
10.250%, 09/15/10 300 270
CSC Holdings
7.625%, 07/15/18 100 90
DirecTV Holdings
7.625%, 05/15/16 150 147
DISH DBS
6.625%, 10/01/14 200 179
Fisher Communications
8.625%, 09/15/14 150 128
Kabel Deutschland
10.625%, 07/01/14 200 202
Local TV Finance (A)
9.250%, 06/15/15 100 10
Mediacom Capital
7.875%, 02/15/11 150 143
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 29
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Newport Television (A)
13.000%, 03/15/17 $ 100 $ 3
Nexstar Finance Holdings (D)
11.375%, 04/01/13 128 46
Quebecor Media
7.750%, 03/15/16 75 57
Radio One
8.875%, 07/01/11 100 32
Videotron Ltee
6.875%, 01/15/14 100 94
-----------
TOTAL BROADCASTING & CABLE 1,823
===========
BUILDING & CONSTRUCTION [1.0%]
DR Horton
5.625%, 01/15/16 125 95
Esco (A)
8.625%, 12/15/13 50 38
Interline Brands
8.125%, 06/15/14 50 45
International Utility Structures (C)
10.750%, 02/01/08 100 1
Nortek
8.500%, 09/01/14 200 20
Panolam Industries International
10.750%, 10/01/13 250 33
Ply Gem Industries
11.750%, 06/15/13 50 22
-----------
TOTAL BUILDING & CONSTRUCTION 254
===========
BUSINESS SERVICES [1.1%]
Corrections
7.500%, 05/01/11 100 100
FTI Consulting
7.625%, 06/15/13 50 51
Geo Group
8.250%, 07/15/13 150 139
-----------
TOTAL BUSINESS SERVICES 290
===========
CHEMICALS [3.1%]
Airgas (A)
7.125%, 10/01/18 100 96
Georgia Gulf
9.500%, 10/15/14 150 25
Huntsman International
7.875%, 11/15/14 115 47
Innophos
8.875%, 08/15/14 100 82
Momentive Performance Materials
9.750%, 12/01/14 100 30
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Mosaic (A)
7.375%, 12/01/14 $ 50 $ 49
Nalco
8.875%, 11/15/13 150 144
Nova Chemicals
6.500%, 01/15/12 150 131
Polymer Holdings (D) (E) (F)
18.929%, 07/15/14 250 88
Terra Capital, Ser B
7.000%, 02/01/17 100 92
-----------
TOTAL CHEMICALS 784
===========
CIRCUIT BOARDS [0.1%]
Viasystems
10.500%, 01/15/11 50 32
===========
COMMERCIAL SERVICES [2.1%]
ARAMARK
8.500%, 02/01/15 150 138
4.670%, 02/01/15 (B) 100 76
Iron Mountain (F)
8.750%, 07/15/18 150 149
Mobile Mini
6.875%, 05/01/15 75 52
Mobile Services Group
9.750%, 08/01/14 150 112
Tube City IMS
9.750%, 02/01/15 100 15
-----------
TOTAL COMMERCIAL SERVICES 542
===========
COMPUTER SYSTEM DESIGN & SERVICES [0.3%]
Activant Solutions
9.500%, 05/01/16 100 61
Unisys
12.500%, 01/15/16 65 17
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 78
===========
CONGLOMERATE [0.2%]
KAR Holdings
8.750%, 05/01/14 100 53
===========
CONSUMER PRODUCTS & SERVICES [4.3%]
Central Garden & Pet
9.125%, 02/01/13 100 79
Jarden
7.500%, 05/01/17 75 60
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 30
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Johnsondiversey Holdings (D)
10.670%, 05/15/13 $ 200 $ 150
Johnsondiversey, Ser B
9.625%, 05/15/12 150 136
Libbey Glass (B)
9.568%, 06/01/11 100 45
MSX International (A)
12.500%, 04/01/12 100 35
Prestige Brands
9.250%, 04/15/12 90 86
Sealy Mattress
8.250%, 06/15/14 200 73
Sotheby's (A)
7.750%, 06/15/15 100 73
Southern States Cooperative (A)
10.500%, 11/01/10 200 178
Steinway Musical Instruments (A)
7.000%, 03/01/14 100 67
Visant Holding
8.750%, 12/01/13 100 91
Yankee Acquisition, Ser B
9.750%, 02/15/17 50 24
-----------
TOTAL CONSUMER PRODUCTS & SERVICES 1,097
===========
CONTAINERS & PACKAGING [2.4%]
Crown Americas
7.750%, 11/15/15 150 151
Exopack Holding
11.250%, 02/01/14 100 45
Intertape Polymer US
8.500%, 08/01/14 100 61
Owens Brockway Glass Container
6.750%, 12/01/14 150 144
Plastipak Holdings (A)
8.500%, 12/15/15 100 70
Solo Cup
8.500%, 02/15/14 200 146
-----------
TOTAL CONTAINERS & PACKAGING 617
===========
DIVERSIFIED OPERATIONS [0.9%]
Bombardier (A)
8.000%, 11/15/14 75 55
Trinity Industries
6.500%, 03/15/14 200 162
-----------
TOTAL DIVERSIFIED OPERATIONS 217
===========
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
EDUCATIONAL SERVICES [0.6%]
Education Management
10.250%, 06/01/16 $ 50 $ 47
8.750%, 06/01/14 100 94
-----------
TOTAL EDUCATIONAL SERVICES 141
===========
ELECTRIC UTILITIES [7.7%]
AES
8.000%, 10/15/17 100 86
8.000%, 06/01/20 (A) 50 40
Allegheny Energy Supply
7.800%, 03/15/11 200 200
Aquila
7.625%, 11/15/09 100 99
CMS Energy
6.875%, 12/15/15 150 139
Edison Mission Energy
7.000%, 05/15/17 150 110
Energy Future Holdings
10.875%, 11/01/17 500 323
ESI Tractebel Acquisition, Ser B
7.990%, 12/30/11 43 42
KCP&L Greater Missouri
Operations
7.950%, 02/01/11 150 147
Mirant North America
7.375%, 12/31/13 150 136
NRG Energy
7.375%, 02/01/16 100 93
PNM Resources
9.250%, 05/15/15 100 88
PSEG Energy Holdings
8.500%, 06/15/11 150 148
Reliant Energy
7.625%, 06/15/14 200 162
Sierra Pacific Resources
8.625%, 03/15/14 70 66
Teco Finance, MTN
6.572%, 11/01/17 100 77
-----------
TOTAL ELECTRIC UTILITIES 1,956
===========
ENERGY & POWER [0.0%]
VeraSun Energy (C)
9.375%, 06/01/17 200 10
===========
ENTERTAINMENT & GAMING [7.7%]
AMC Entertainment
11.000%, 02/01/16 100 91
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 31
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Buffalo Thunder Development
Authority (A)
9.375%, 12/15/14 $ 75 $ 4
CCM Merger (A)
8.000%, 08/01/13 175 72
Choctaw Resort Development
Enterprise (A)
7.250%, 11/15/19 182 52
Chukchansi Economic Development
Authority (A)
8.000%, 11/15/13 150 33
Circus & Eldorado Joint Venture/
Silver Legacy Capital
10.125%, 03/01/12 150 97
Gaylord Entertainment
8.000%, 11/15/13 100 66
Indianapolis Downs & Capital (A)
11.000%, 11/01/12 100 53
Inn of the Mountain Gods
Resort & Casino
12.000%, 11/15/10 150 16
Isle of Capri Casinos
7.000%, 03/01/14 112 66
Jacobs Entertainment
9.750%, 06/15/14 75 44
Mashantucket Western Pequot Tribe
(A)
8.500%, 11/15/15 170 29
MGM Mirage
8.500%, 09/15/10 200 82
6.750%, 09/01/12 100 35
6.000%, 10/01/09 100 54
Mohegan Tribal Gaming
Authority
7.125%, 08/15/14 100 28
MTR Gaming Group, Ser B
9.750%, 04/01/10 200 150
OED/Diamond Jo
8.750%, 04/15/12 100 80
Penn National Gaming
6.875%, 12/01/11 100 96
San Pasqual Casino (A)
8.000%, 09/15/13 100 74
Scientific Games
6.250%, 12/15/12 100 88
Seminole Hard Rock
Entertainment (A) (B)
3.820%, 03/15/14 100 52
Seneca Gaming
7.250%, 05/01/12 100 64
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Shingle Springs Tribal
Gaming Authority (A)
9.375%, 06/15/15 $ 100 $ 42
Snoqualmie Entertainment
Authority (A)(B)
5.384%, 02/01/14 100 25
Speedway Motorsports
6.750%, 06/01/13 100 84
Tunica-Biloxi Gaming
Authority (A)
9.000%, 11/15/15 125 101
Vail Resorts
6.750%, 02/15/14 100 86
Waterford Gaming (A)
8.625%, 09/15/14 81 47
Wynn Las Vegas Capital
6.625%, 12/01/14 175 132
-----------
TOTAL ENTERTAINMENT & GAMING 1,943
===========
FINANCIAL SERVICES [1.6%]
Ford Motor Credit
7.375%, 10/28/09 150 134
7.375%, 02/01/11 100 76
GMAC
6.750%, 12/01/14 425 201
-----------
TOTAL FINANCIAL SERVICES 411
===========
FOOD, BEVERAGE & TOBACCO [2.8%]
Alliance One International
8.500%, 05/15/12 100 85
Beverages & More (A)
9.250%, 03/01/12 100 68
Chiquita Brands International
7.500%, 11/01/14 100 73
Constellation Brands
8.375%, 12/15/14 150 151
Del Monte
8.625%, 12/15/12 50 50
Land O' Lakes
8.750%, 11/15/11 100 99
Leiner Health Products (C)
11.000%, 06/01/12 100 --
Le-Nature's (A) (C)
9.000%, 06/15/13 150 1
National Beef Packing
10.500%, 08/01/11 100 78
Smithfield Foods, Ser B
8.000%, 10/15/09 100 100
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 705
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 32
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
GAS/NATURAL GAS [2.3%]
Colorado Interstate Gas
6.800%, 11/15/15 $ 150 $ 140
El Paso
7.000%, 05/15/11 275 263
7.000%, 06/15/17 150 128
Targa Resources
8.500%, 11/01/13 100 62
-----------
TOTAL GAS/NATURAL GAS 593
===========
INSURANCE [0.2%]
USI Holdings (A) (B)
5.113%, 11/15/14 125 59
===========
MACHINERY [1.5%]
Baldor Electric
8.625%, 02/15/17 125 99
Case New Holland
7.125%, 03/01/14 100 73
Terex
8.000%, 11/15/17 75 61
7.375%, 01/15/14 (F) 100 87
Trimas
9.875%, 06/15/12 115 56
-----------
TOTAL MACHINERY 376
===========
MEDICAL PRODUCTS & SERVICES [3.4%]
Bio-Rad Laboratories
7.500%, 08/15/13 100 96
Community Health Systems
8.875%, 07/15/15 150 142
DJO Finance
10.875%, 11/15/14 25 19
Fresenius US Finance II (A)
9.000%, 07/15/15 125 130
HCA
9.250%, 11/15/16 50 46
5.750%, 03/15/14 100 65
Omnicare
6.750%, 12/15/13 150 136
Tenet Healthcare
9.250%, 02/01/15 200 154
Vanguard Health Holding II
9.000%, 10/01/14 100 88
-----------
TOTAL MEDICAL PRODUCTS & SERVICES 876
===========
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
METALS & MINING [1.6%]
American Rock Salt
9.500%, 03/15/14 $ 150 $ 147
Freeport-McMoRan Copper
& Gold
8.250%, 04/01/15 150 144
Noranda Aluminium Acquisition (B)
6.595%, 05/15/15 150 46
Novelis
7.250%, 02/15/15 150 60
-----------
TOTAL METALS & MINING 397
===========
MISCELLANEOUS BUSINESS SERVICES [2.4%]
Affinion Group
11.500%, 10/15/15 100 62
Carriage Services
7.875%, 01/15/15 200 164
Compagnie Generale de
Geophysique
7.500%, 05/15/15 100 79
Lamar Media
6.625%, 08/15/15 100 72
MCBC Holdings (A)(B)
10.751%, 10/15/14 50 10
Service International
6.750%, 04/01/15 150 132
Stewart Enterprises
6.250%, 02/15/13 100 84
-----------
TOTAL MISCELLANEOUS BUSINESS SERVICES 603
===========
MISCELLANEOUS MANUFACTURING [2.8%]
AGY Holding
11.000%, 11/15/14 100 61
Altra Industrial Motion
9.000%, 12/01/11 100 93
Coleman Cable
9.875%, 10/01/12 100 57
Dresser-Rand Group
7.375%, 11/01/14 133 114
General Cable
7.125%, 04/01/17 100 82
Hawker Beechcraft Acquisition
9.750%, 04/01/17 75 13
8.500%, 04/01/15 100 26
Koppers Holdings (D)
14.335%, 11/15/14 250 204
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 33
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Mueller Water Products (F)
7.375%, 06/01/17 $ 100 $ 51
-----------
TOTAL MISCELLANEOUS MANUFACTURING 701
===========
PAPER & RELATED PRODUCTS [2.3%]
Appleton Papers, Ser B
9.750%, 06/15/14 100 18
Catalyst Paper
7.375%, 03/01/14 250 89
Cellu Tissue Holdings
9.750%, 03/15/10 100 88
Domtar
7.125%, 08/15/15 150 100
Georgia-Pacific
7.700%, 06/15/15 100 91
Newark Group (C)
9.750%, 03/15/14 200 17
Norampac Industries
6.750%, 06/01/13 100 44
Smurfit Kappa Funding
7.750%, 04/01/15 150 88
Verso Paper Holdings
9.125%, 08/01/14 100 38
-----------
TOTAL PAPER & RELATED PRODUCTS 573
===========
PETROLEUM & FUEL PRODUCTS [12.3%]
Atlas Pipeline Partners
8.125%, 12/15/15 200 114
Chesapeake Energy
6.875%, 01/15/16 (F) 100 84
6.250%, 01/15/18 100 78
Cimarex Energy
7.125%, 05/01/17 100 80
Clayton Williams Energy
7.750%, 08/01/13 150 93
Comstock Resources
6.875%, 03/01/12 150 130
Copano Energy (A)
7.750%, 06/01/18 100 79
Dynegy Holdings
7.750%, 06/01/19 100 65
6.875%, 04/01/11 100 89
Forest Oil
8.000%, 12/15/11 100 96
Frontier Oil
6.625%, 10/01/11 150 146
Helix Energy Solutions Group (A)
9.500%, 01/15/16 100 59
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Key Energy Services
8.375%, 12/01/14 $ 100 $ 63
Linn Energy (A)
9.875%, 07/01/18 100 82
MarkWest Energy Partners, Ser B
8.500%, 07/15/16 150 107
Newfield Exploration
6.625%, 09/01/14 150 136
OPTI Canada
7.875%, 12/15/14 100 44
Pacific Energy Partners
7.125%, 06/15/14 100 93
Parker Drilling
9.625%, 10/01/13 150 100
Petroplus Finance (A)
7.000%, 05/01/17 150 108
Pioneer Natural Resources
5.875%, 07/15/16 100 74
Plains Exploration & Production
7.750%, 06/15/15 150 129
7.625%, 06/01/18 (F) 100 81
Pride International
7.375%, 07/15/14 100 99
Regency Energy Partners
8.375%, 12/15/13 65 55
Southern Star Central
6.750%, 03/01/16 100 84
Southwestern Energy (A)
7.500%, 02/01/18 100 97
Swift Energy
7.625%, 07/15/11 100 76
Tesoro
6.625%, 11/01/15 100 79
Whiting Petroleum
7.000%, 02/01/14 300 225
Williams
7.625%, 07/15/19 50 47
6.375%, 10/01/10 (A) 150 148
Williams Partners
7.250%, 02/01/17 100 85
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 3,125
===========
PRINTING & PUBLISHING [1.3%]
Dex Media (D)
9.000%, 11/15/13 150 19
Dex Media West, Ser B
8.500%, 08/15/10 100 50
Idearc (C) (F)
8.000%, 11/15/16 100 2
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 34
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
MediMedia USA (A)
11.375%, 11/15/14 $ 50 $ 32
R.H. Donnelley (A)
11.750%, 05/15/15 168 22
Sheridan Group
10.250%, 08/15/11 150 88
Valassis Communications
8.250%, 03/01/15 100 43
Warner Music Group
7.375%, 04/15/14 100 69
-----------
TOTAL PRINTING & PUBLISHING 325
===========
RADIO [0.2%]
XM Satellite Radio Holdings (A)
13.000%, 08/01/13 100 46
===========
REAL ESTATE INVESTMENT TRUSTS [0.4%]
Host Marriott, Ser O
6.375%, 03/15/15 150 111
===========
RETAIL [4.1%]
ACE Hardware (A) (F)
9.125%, 06/01/16 100 82
Autonation
7.000%, 04/15/14 100 88
Claire's Stores
9.625%, 06/01/15 105 21
Couche-Tard US
7.500%, 12/15/13 100 98
Ferrellgas Partners (A)
6.750%, 05/01/14 100 84
Group 1 Automotive
8.250%, 08/15/13 100 77
Inergy
8.250%, 03/01/16 200 190
Leslie's Poolmart
7.750%, 02/01/13 100 84
NPC International
9.500%, 05/01/14 100 78
Penske Auto Group
7.750%, 12/15/16 100 50
Rare Restaurant Group (A)
9.250%, 05/15/14 100 38
Sbarro
10.375%, 02/01/15 50 19
Sonic Automotive
8.625%, 08/15/13 70 21
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Suburban Propane Partners
6.875%, 12/15/13 $ 100 $ 95
True Temper Sports
8.375%, 09/15/11 150 21
-----------
TOTAL RETAIL 1,046
===========
RUBBER & PLASTIC [0.5%]
Cooper Tire & Rubber
8.000%, 12/15/19 100 52
Cooper-Standard Automotive
8.375%, 12/15/14 50 3
Goodyear Tire & Rubber
9.000%, 07/01/15 98 75
-----------
TOTAL RUBBER & PLASTIC 130
===========
SEMI-CONDUCTORS [0.8%]
Amkor Technology
9.250%, 06/01/16 100 77
Flextronics International
6.250%, 11/15/14 100 84
Sensata Technologies
8.000%, 05/01/14 100 30
-----------
TOTAL SEMI-CONDUCTORS 191
===========
STEEL & STEEL WORKS [1.7%]
AK Steel
7.750%, 06/15/12 150 118
ArcelorMittal USA
6.500%, 04/15/14 150 118
Gerdau Ameristeel
10.375%, 07/15/11 100 100
Ryerson (A)
12.000%, 11/01/15 75 43
Steel Dynamics
7.375%, 11/01/12 50 39
-----------
TOTAL STEEL & STEEL WORKS 418
===========
TELEPHONES & TELECOMMUNICATIONS [6.7%]
American Tower
7.125%, 10/15/12 150 151
Broadview Networks Holdings
11.375%, 09/01/12 100 58
Centennial Communications
10.125%, 06/15/13 100 103
8.125%, 02/01/14 50 51
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 35
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONTINUED)
FACE
AMOUNT
DESCRIPTION (000) VALUE (000)
- ----------------------------------------------------- ---------- -----------
Cincinnati Bell
8.375%, 01/15/14 $ 150 $ 141
Citizens Communications
7.125%, 03/15/19 150 118
Crown Castle International
9.000%, 01/15/15 75 75
Fairpoint Communications (A)
13.125%, 04/01/18 100 19
MetroPCS Wireless
9.250%, 11/01/14 100 97
Nordic Telephone (A)
8.875%, 05/01/16 50 47
Qwest
7.625%, 06/15/15 289 260
Rogers Wireless
9.625%, 05/01/11 100 104
7.250%, 12/15/12 50 52
Sprint Capital
8.375%, 03/15/12 150 136
Time Warner Telecom Holdings
9.250%, 02/15/14 100 97
Virgin Media Finance
9.125%, 08/15/16 150 139
West
11.000%, 10/15/16 50 33
-----------
TOTAL TELEPHONES &
TELECOMMUNICATIONS 1,681
===========
TRANSPORTATION SERVICES [1.8%]
Kansas City Southern Railway
8.000%, 06/01/15 100 83
Navios Maritime Holdings
9.500%, 12/15/14 100 57
Pegasus Solutions (A)
10.500%, 04/15/15 100 40
Ship Finance International
8.500%, 12/15/13 200 136
Stena
7.000%, 12/01/16 150 105
Swift Transportation (A) (B)
8.984%, 05/15/15 200 44
-----------
TOTAL TRANSPORTATION SERVICES 465
===========
FACE
AMOUNT
(000)/
DESCRIPTION SHARES VALUE (000)
- ----------------------------------------------------- ---------- -----------
WASTE DISPOSAL [1.4%]
Allied Waste North America, Ser B
7.125%, 05/15/16 $ 225 $ 210
Waste Services
9.500%, 04/15/14 100 75
WCA Waste
9.250%, 06/15/14 100 73
-----------
TOTAL WASTE DISPOSAL 358
===========
TOTAL CORPORATE BONDS
(Cost $35,585) 24,338
===========
COMMON STOCK [0.1%]
BROADCASTING & CABLE [0.0%]
Olympus (E) (F)* 8,500 9
-----------
BUILDING & CONSTRUCTION SUPPLIES [0.0%]
Dayton Superior* 149 --
===========
MEDIA [0.1%]
Time Warner Cable, Cl A 655 16
===========
PAPER & FOREST PRODUCTS [0.0%]
Tembec* 5,625 4
===========
TOTAL COMMON STOCK
(Cost $221) 29
===========
CASH EQUIVALENTS [0.9%]
Evergreen Select Money
Market Fund, Institutional
Class, 0.760%** 118,598 119
Fidelity Institutional
Domestic Money Market
Portfolio, Cl I, 0.810%** 118,598 119
-----------
TOTAL CASH EQUIVALENTS
(Cost $238) 238
===========
TOTAL INVESTMENTS [97.1%]
(Cost $36,044) $ 24,605
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 36
schedule of investments
MARCH 31, 2009 (UNAUDITED)
HIGH YIELD BOND FUND (CONCLUDED)
PERCENTAGES ARE BASED ON NET ASSETS OF $25,335 ($ THOUSANDS).
* NON-INCOME PRODUCING SECURITY.
** 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 $2,741(000), REPRESENTING 10.8% OF
THE NET ASSETS OF THE FUND.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH
31, 2009.
(C) IN DEFAULT ON INTEREST PAYMENTS. RATE SHOWN REPRESENTS THE LAST COUPON RATE
PRIOR TO DEFAULT.
(D) STEP BOND -- THE REPORTED IS THE RATE IN EFFECT ON MARCH 31, 2009. THE
COUPON ON A STEP BOND CHANGES ON A SPECIFIC DATE.
(E) SECURITY IS FAIR VALUED.
(F) SECURITY IS CONSIDERED ILLIQUID.
CL -- CLASS
MTN -- MEDIUM TERM NOTE
SER -- SERIES
AMOUNTS DESIGNATED AS "-" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 37
schedule of investments
MARCH 31, 2009 (UNAUDITED)
PRIME MONEY MARKET FUND
TYPE OF SECURITY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Commercial Paper 42.2%
Short-Term Investments 34.6%
U.S. Government Agency Obligations 10.2%
Corporate Bond 6.9%
Certificates of Deposit 5.1%
Municipal Bond 1.0%
* Percentages are b ased on total investments.
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
COMMERCIAL PAPER (A) [42.2%]
BANKS [24.3%]
Abbey National North America
0.210%, 04/27/09 $ 25,000 $ 24,996
Banco Bilbao Vizcaya
0.750%, 05/13/09 25,000 24,978
Bank of Ireland (B)
0.650%, 04/06/09 25,000 24,998
Bank of Nova Scotia
0.460%, 05/22/09 25,000 24,984
Bayerische Landesbank
1.450%, 06/04/09 25,000 24,936
BNP Paribas Finance
0.650%, 05/11/09 25,000 24,982
Commerzbank US Finance
0.490%, 04/24/09 25,000 24,992
Danske (B)
1.040%, 06/08/09 25,000 24,951
Deutsche Bank
0.500%, 04/17/09 25,000 25,000
Dexia Delaware
0.790%, 04/21/09 25,000 24,989
Erste Finance (B)
0.690%, 04/24/09 25,000 24,989
KBC Financial Products
International (B)
0.971%, 04/24/09 25,000 24,984
Landesbank Baden-
Wuerttemberg
1.250%, 04/08/09 25,000 24,994
Lloyds TSB Bank
1.250%, 04/09/09 25,000 24,993
National Australia Funding
Delaware (B)
0.340%, 04/01/09 25,000 25,000
Societe Generale North America
0.890%, 05/27/09 25,000 24,965
Toronto-Dominion
Holdings USA (B)
0.150%, 04/27/09 25,000 24,997
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
UBS Finance Delaware
0.600%, 04/09/09 $ 25,000 $ 24,997
Wells Fargo
0.250%, 04/13/09 25,000 24,998
-----------
TOTAL BANKS 474,723
===========
COMPUTER SYSTEM DESIGN & SERVICES [1.3%]
Hewlett-Packard (B)
0.450%, 05/01/09 25,000 24,991
===========
CONSUMER PRODUCTS & SERVICES [1.3%]
Procter & Gamble International
Funding SCA (B)
0.270%, 05/07/09 25,000 24,993
FINANCIAL SERVICES [8.9%]
General Electric Capital
0.300%, 04/16/09 50,000 49,994
HSBC Finance
0.450%, 04/20/09 25,000 24,994
ING US Funding
0.940%, 05/11/09 25,000 24,974
Rabobank USA Financial
0.690%, 06/01/09 25,000 24,971
Siemens Capital (B)
0.290%, 04/08/09 25,000 24,998
Westpac Securities (B)
1.210%, 06/02/09 25,000 24,948
-----------
TOTAL FINANCIAL SERVICES 174,879
===========
FOOD, BEVERAGE & TOBACCO [2.6%]
Campbell Soup (B)
0.260%, 05/11/09 25,000 24,992
Nestle Capital (B)
0.320%, 04/20/09 25,000 24,996
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 49,988
===========
PETROLEUM & FUEL PRODUCTS [1.3%]
Chevron
0.250%, 04/17/09 25,000 25,000
===========
SECURITY BROKERS & DEALERS [2.5%]
Goldman Sachs Group
0.170%, 04/20/09 25,000 24,998
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 38
schedule of investments
MARCH 31, 2009 (UNAUDITED)
PRIME MONEY MARKET FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
JPMorgan Chase Funding (B)
0.500%, 05/08/09 $ 25,000 $ 24,987
-----------
TOTAL SECURITY BROKERS & DEALERS 49,985
===========
TOTAL COMMERCIAL PAPER (Cost $824,559) 824,559
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [10.2%]
FHLB DN
0.280%, 04/01/09 (C) 25,000 25,000
3.094%, 04/03/09 (C) 50,000 49,991
3.095%, 04/06/09 (C) 50,000 49,979
3.149%, 04/13/09 (C) 50,000 49,948
0.270%, 06/22/09 (C) 25,000 24,985
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $199,903) 199,903
===========
CORPORATE BONDS [6.8%]
BANKS [2.6%]
US Bank, MTN (D)
0.657%, 04/14/09 50,000 50,000
===========
FINANCIAL SERVICES [1.6%]
John Deere Capital, MTN
4.625%, 04/15/09 32,000 32,017
===========
SUPRANATIONAL BANK [2.6%]
International Bank of
Reconstruction & Development
0.100%, 04/06/09 26,700 26,699
0.410%, 06/01/09 25,000 24,983
-----------
TOTAL SUPRANATIONAL BANK 51,682
===========
TOTAL CORPORATE BONDS (Cost $133,699) 133,699
===========
MUNICIPAL BOND [1.0%]
CALIFORNIA [1.0%]
County of Los Angeles,
Ser C, RB, MBIA
3.837%, 06/30/09 20,000 19,814
===========
TOTAL MUNICIPAL BOND (Cost $19,814) 19,814
===========
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
CERTIFICATES OF DEPOSIT [5.1%]
Bank of Montreal
0.450%, 04/24/09 $ 25,000 $ 25,000
Barclays Bank
1.350%, 06/02/09 25,000 25,000
Natixis
0.600%, 04/06/09 25,000 25,000
Royal Bank of Scotland
1.310%, 04/08/09 25,000 25,000
-----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $100,000) 100,000
===========
CASH EQUIVALENT [0.1%]
Goldman Sachs Financial Square
Funds - Government Fund, 0.500%* 1,319,721 1,320
-----------
TOTAL CASH EQUIVALENT (Cost $1,320) 1,320
===========
REPURCHASE AGREEMENTS (E) [34.6%]
Banc of America
0.120%, dated 03/31/09,
to be repurchased on
04/01/09, repurchase price $225,000,750
(collateralized by U.S. government agency
obligations, ranging in par
value, $100,715,000-$110,
119,000, 5.250%-5.500%, 04/18/16-12/14/22;
with total market value $229,500,572) 225,000 225,000
Barclays
0.150%, dated 03/31/09,
to be repurchased on
04/01/09, repurchase price
$26,500,110 (collateralized
by a Fannie Mae obligation,
par value $26,621,000,
3.250%, 04/28/11; with
total market value $27,030,231) 26,500 26,500
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 39
schedule of investments
MARCH 31, 2009 (UNAUDITED)
PRIME MONEY MARKET FUND (CONCLUDED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Deutsche Bank
0.190%, dated 03/31/09,
to be repurchased on
04/01/09, repurchase price $100,000,528
(collateralized by U.S. government agency
obligations, ranging in par value, $28,840,000-
$69,577,000, 5.950%-6.000%, 04/22/22-11/07/36;
with total market value $102,000,215) $ 100,000 $ 100,000
JPMorgan Chase
0.120%, dated 03/31/09,
to be repurchased on
04/01/09, repurchase price
$325,001,083 (collateralized
by U.S. treasury obligations,
ranging in par value,
$102,385,500-$230,225,000,
0.000%, 10/22/09-02/11/10;
with total market value $331,504,348) 325,000 325,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $676,500) 676,500
===========
TOTAL INVESTMENTS [100.0%] (Cost $1,955,795) $ 1,955,795
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $1,955,697 ($ THOUSANDS).
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2009.
(A) THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF PURCHASE.
(B) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2009, THE
VALUE OF THESE SECURITIES AMOUNTED TO $324,824(000), REPRESENTING 16.6% OF
THE NET ASSETS OF THE FUND.
(C) ZERO COUPON SECURITY -- THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF
PURCHASE.
(D) FLOATING RATE SECURITY -- THE RATE REPORTED IS THE RATE IN EFFECT ON MARCH
31, 2009.
(E) TRI-PARTY REPURCHASE AGREEMENT
DN -- DISCOUNT NOTE
FHLB -- FEDERAL HOME LOAN BANK
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
SER -- SERIES
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 40
schedule of investments
MARCH 31, 2009 (UNAUDITED)
GOVERNMENT MONEY MARKET FUND
TYPE OF SECURITY WEIGHTINGS*:
(PERFORMANCE GRAPH)
Repurchase Agreements 51.9%
U.S. Government Agency Obligations 48.1%
* Percentages are based on total investments.
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS [48.0%]
FARMER MAC DN (A)
0.320%, 04/02/09 $ 50,000 $ 49,999
0.390%, 05/21/09 25,000 24,986
FFCB DN (A)
0.020%, 04/02/09 10,000 10,000
FHLB
1.435%, 04/01/09 (B) 45,000 45,000
3.240%, 04/07/09 50,000 50,006
2.450%, 04/08/09 33,100 33,099
3.000%, 04/15/09 25,000 25,026
3.050%, 06/18/09 30,000 30,000
5.250%, 09/11/09 25,000 25,512
3.000%, 09/25/09 37,710 37,710
FHLB DN (A)
1.182%, 04/01/09 100,000 100,000
2.357%, 04/02/09 50,000 49,997
0.010%, 04/03/09 50,000 50,000
0.120%, 04/09/09 25,000 24,999
0.350%, 04/13/09 25,000 24,997
0.300%, 04/14/09 25,000 24,997
0.350%, 04/24/09 23,000 22,995
0.130%, 04/27/09 25,000 24,998
0.340%, 04/29/09 50,000 49,987
0.180%, 05/01/09 50,000 49,992
0.180%, 05/11/09 31,850 31,844
0.270%, 05/13/09 25,000 24,992
0.380%, 05/15/09 50,000 49,977
0.380%, 05/18/09 50,000 49,975
0.280%, 05/22/09 50,000 49,980
0.300%, 06/01/09 50,000 49,975
0.300%, 06/02/09 25,000 24,987
0.300%, 06/04/09 25,000 24,987
0.275%, 06/22/09 50,000 49,969
0.441%, 07/02/09 25,000 24,972
1.010%, 02/23/10 25,000 24,772
FHLMC
5.000%, 06/11/09 25,000 25,227
3.125%, 02/04/10 25,000 25,428
1.375%, 03/16/10 25,000 25,000
FHLMC DN
0.160%, 04/07/09 11,300 11,300
0.100%, 04/13/09 50,000 49,998
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
FNMA (B)
1.024%, 04/28/09 $ 25,000 $ 25,041
FNMA DN (A)
0.076%, 04/03/09 95,172 95,172
0.050%, 04/13/09 50,000 49,999
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,467,895) 1,467,895
===========
REPURCHASE AGREEMENTS (C) [51.9%]
Bank of America
0.120%, dated 03/31/09, repurchased on
04/01/09, repurchase price $400,001,333
(collateralized by U.S. Government agency
obligations, ranging in par value,
$66,000,000- $130,226,000, 4.250%- 5.700%,
05/15/09-11/19/24; with total market
value $408,000,367) 400,000 400,000
Barclays
0.150%, dated 03/31/09,
repurchased on 04/01/09,
repurchase price $336,901,404
(collateralized by U.S. Government agency
obligations, ranging in par value, $41,337,000-
$100,000,000, 0.000%-
5.080%, 11/28/09-10/15/28; with total market
value $343,638,649) 336,900 336,900
Deutsche Bank
0.190%, dated 03/31/09,
repurchased on 04/01/09,
repurchase price $100,000,528
(collateralized by U.S. Government agency
obligations, ranging in par value, $1,247,000-
$63,619,000, 3.125%- 6.030%, 10/25/10-10/08/27;
with total market value $102,028,247) 100,000 100,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 41
schedule of investments
MARCH 31, 2009 (UNAUDITED)
GOVERNMENT MONEY MARKET FUND (CONCLUDED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
JPMorgan Chase
0.120%, dated 03/31/09, repurchased on
04/01/09, repurchase price $500,001,667
(collateralized by U.S. Government agency
obligations, ranging in par value, $127,000-
$100,000,000, 0.000%- 5.950%,
04/13/09-01/28/28; with total market
value $510,002,809) $ 500,000 $ 500,000
UBS Warburg
0.090%, dated 03/31/09,
repurchased on 04/01/09,
repurchase price $250,000,625
(collateralized by U.S. Government agency
obligations, ranging in par value, $3,165,000-
$100,000,000, 0.000%-0.000%, 04/17/09-09/30/09;
with total market value $255,000,463) 250,000 250,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $1,586,900) 1,586,900
===========
TOTAL INVESTMENTS [99.9%]
(Cost $3,054,795) $ 3,054,795
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $3,056,735 ($ THOUSANDS).
(A) ZERO COUPON SECURITY -- THE RATE REPORTED IS THE EFFECTIVE YIELD AT TIME OF
PURCHASE.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH
31, 2009.
(C) TRI-PARTY REPURCHASE AGREEMENT
DN -- DISCOUNT NOTE
FARMER MAC -- FEDERAL AGRICULTURAL MORTGAGE CORPORATION
FFCB -- FEDERAL FARM CREDIT BANK
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 42
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
ISSUER INDUSTRY WEIGHTINGS*:
(PERFORMANCE GRAPH)
General Obligation 19.9%
Water 15.6%
Education 13.3%
General Revenue 12.6%
Power 10.1%
Industrial Development 9.1%
Transportation 8.9%
Utilities 4.7%
Healthcare 3.0%
Public Facilities 2.5%
Equipment 0.3%
* Percentages based on total investments.
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
MUNICIPAL BONDS [97.5%]
CALIFORNIA [89.2%]
ABAG, Finance Authority for
Non-Profit Corporations,
Public Policy Institute,
Ser A, RB (A) (B) (C)
0.370%, 05/01/09 $ 2,870 $ 2,870
ABAG, Finance Authority for
Non-Profit Corporations,
Ser C, COP (A) (B) (C)
0.200%, 05/01/09 7,620 7,620
ABAG, Finance Authority for
Non-Profit Corporations,
Ser D, COP (A) (B) (C)
0.200%, 05/01/09 6,140 6,140
Bay Area Toll Authority,
RB (B) (C)
0.200%, 05/01/09 5,000 5,000
Bay Area Toll Authority,
RB (B) (C)
0.150%, 04/01/25 14,245 14,245
Bay Area Toll Authority,
RB (B) (C)
0.250%, 05/01/09 4,000 4,000
Bay Area Toll Authority,
Ser E-1, RB (B) (C)
0.250%, 05/01/09 3,560 3,560
Bay Area Toll Authority,
San Francisco Bay Area
Project, Ser A-1, RB (B) (C)
0.200%, 05/01/09 12,000 12,000
California State, Community
College Financing Authority,
Ser A, TRAN
3.500%, 06/30/09 10,000 10,042
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
California State, Daily
Kindergarten University
Project, Ser A-3,
GO (A) (B) (C)
0.250%, 05/01/09 $ 14,735 $ 14,735
California State, Daily
Kindergarten University
Project, Ser A-4, GO
(A) (B) (C)
0.400%, 04/01/09 1,250 1,250
California State, Daily
Kindergarten University
Project, Ser B-1,
GO (A) (B) (C)
0.300%, 05/01/09 3,370 3,370
California State, Daily
Kindergarten University
Project, Ser B-2, GO
(A) (B) (C)
0.400%, 05/01/09 4,975 4,975
California State, Department
of Water Resource & Power,
Ser B-4, RB (A) (B) (C)
0.150%, 05/01/09 4,900 4,900
California State, Department
of Water Resource & Power,
Ser C-15, RB (A) (B) (C)
0.200%, 05/01/09 5,000 5,000
California State, Department
of Water Resource & Power,
Ser C-7, RB, FSA (B) (C)
2.000%, 05/01/09 11,425 11,425
California State, Department
of Water Resource & Power,
Sub-Ser F-2, RB (A) (B) (C)
0.300%, 05/01/09 10,000 10,000
California State, Department
of Water Resource & Power,
Sub-Ser G-3, RB, FSA (B) (C)
2.000%, 05/01/09 10,000 10,000
California State, Department
of Water Resource & Power,
Sub-Ser I-1, RB (A) (B) (C)
0.450%, 05/01/09 6,500 6,500
California State, Economic
Development Financing
Authority, KQED Incorporated
Project, RB (A) (B) (C)
0.300%, 05/01/09 1,335 1,335
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 43
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
California State, Economic
Recovery Authority,
Ser C-1, GO (B) (C)
0.300%, 05/01/09 $ 27,170 $ 27,170
California State, Economic
Recovery Authority,
Ser C-4, GO (B) (C)
0.250%, 05/01/09 21,080 21,080
California State, Economic
Recovery Authority,
Ser C-5, GO (B) (C)
0.400%, 04/01/09 6,500 6,500
California State, Educational
Facilities Authority, Chapman
University Project, RB
(A) (B) (C)
1.250%, 05/01/09 1,000 1,000
California State, Educational
Facilities Authority, Pitzer
College Project, Ser B, RB
(A) (B) (C)
0.280%, 05/01/09 3,215 3,215
California State, Educational
Facilities Authority, Pomona
College Project, Ser B, RB
(B) (C)
0.280%, 04/02/09 7,925 7,925
California State, Educational
Facilities Authority,
University of San Francisco
Project, RB (A) (B) (C)
1.250%, 05/01/09 5,000 5,000
California State, GO
Pre-Refunded @ 101 (D)
5.000%, 08/01/09 1,000 1,021
California State, Infrastructure
& Economic Authority,
California Academy Project,
Ser A, RB (A) (B) (C)
0.250%, 05/01/09 9,900 9,900
California State, Infrastructure
& Economic Authority,
J Paul Getty Trust Project,
Ser A-2, RB (B) (C)
0.500%, 10/01/09 4,000 4,000
California State, Infrastructure
& Economic Authority,
J Paul Getty Trust Project,
Ser B, RB (B) (C)
0.200%, 05/01/09 7,820 7,820
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
California State, Infrastructure
& Economic Authority,
J Paul Getty Trust Project,
Ser D, RB (B) (C)
0.200%, 05/01/09 $ 3,700 $ 3,700
California State, Infrastructure
& Economic Authority,
Orange County Performing
Project, Ser C, RB (A) (B) (C)
1.600%, 05/01/09 6,000 6,000
California State, Ser A-1,
GO (A) (B) (C)
0.200%, 05/01/09 8,350 8,350
California State, Ser A-2,
GO (A) (B) (C)
0.150%, 05/01/09 6,050 6,050
California State, Ser A-3,
GO (A) (B) (C)
0.200%, 05/01/09 16,500 16,500
California State, Ser B,
Sub-Ser B-6, GO (A) (B) (C)
0.300%, 05/01/09 13,205 13,205
California State, Ser B,
Sub-Ser B-7, GO (A) (B) (C)
0.300%, 05/01/09 19,275 19,275
California State, Ser B-1,
GO (A) (B) (C)
0.200%, 05/01/09 7,000 7,000
California State, Ser C-2,
GO (A) (B) (C)
0.400%, 05/01/09 7,700 7,700
California State, Sub-Ser B-3,
GO (A) (B) (C)
0.150%, 04/01/09 3,145 3,145
California State, Sub-Ser B-4,
GO (A) (B) (C)
0.210%, 05/01/09 6,880 6,880
California State, Weekly
Kindergarten University Project,
Ser A-7, GO (A) (B) (C)
0.350%, 05/01/09 3,195 3,195
California State, Weekly
Kindergarten University Project,
Ser A-8, GO (A) (B) (C)
0.320%, 05/01/09 25,600 25,600
California State, Weekly
Kindergarten University Project,
Ser B-5, GO (A) (B) (C)
0.260%, 05/01/09 12,725 12,725
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 44
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
California Statewide,
Communities Development
Authority, Masters College
Project, RB (A) (B) (C)
0.200%, 05/06/09 $ 3,000 $ 3,000
California Statewide,
Communities Development
Authority, Park Century
School Project, RB (A) (B) (C)
0.300%, 05/01/09 4,000 4,000
East Bay, Municipal Utilities
District Water Authority,
Sub-Ser A-1, RB (B) (C)
1.000%, 04/01/09 10,000 10,000
East Bay, Municipal Utilities
District Water Authority,
Sub-Ser A-2, RB (B) (C)
1.000%, 06/01/09 2,900 2,900
East Bay, Municipal Utilities
District Water Authority,
Sub-Ser A-3, RB (B) (C)
1.000%, 06/01/09 10,000 10,000
Glendale, Police Building
Project, COP (B) (C)
0.200%, 05/01/09 13,800 13,800
Irvine Ranch,Water District,
Ser B, GO (A) (B) (C)
0.180%, 05/01/09 8,000 8,000
Irvine, Improvement Board,
Act 1915 Project, District
#03-19, Ser A, SAB (A) (B) (C)
0.300%, 05/01/09 10,278 10,278
Irvine, Improvement Board,
Act 1915 Project, District
#04-20, Ser A, SAB (A) (B) (C)
0.300%, 05/01/09 8,560 8,560
Irvine, Improvement Board,
Act 1915 Project, District
#05-21, Ser A, SAB (A) (B) (C)
0.300%, 05/01/09 20,430 20,430
Irvine, Improvement Board,
Act 1915 Project, District
#07-22, Ser A, RB (A) (B) (C)
0.300%, 05/01/09 9,950 9,950
Irvine, Improvement Board,
Act 1915 Project, District
#87-8, SAB (A) (B) (C)
0.300%, 05/01/09 5,889 5,889
Irvine, Improvement Board,
Act 1915 Project, District
#97-17, SAB (A) (B) (C)
0.300%, 05/01/09 7,150 7,150
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Irvine, Ser B, RB (A) (B) (C)
0.300%, 05/01/09 $ 1,382 $ 1,382
Kern County, TRAN
3.000%, 06/30/09 14,000 14,048
Los Angeles County,
Metropolitan Transportation
Authority, RB (B) (C)
0.280%, 05/01/09 20,000 20,000
Los Angeles County, Ser A,
TRAN
3.000%, 06/30/09 20,000 20,069
Los Angeles, Department
of Water & Power, Sub-Ser
B-1, RB (B) (C)
0.200%, 05/01/09 7,000 7,000
Los Angeles, Department
of Water & Power,
Sub-Ser B-2, RB (B) (C)
0.150%, 05/01/09 26,500 26,500
Los Angeles, TRAN
3.000%, 06/30/09 11,000 11,039
Los Angeles, Unified School
District, Ser A, TRAN
3.000%, 07/30/09 13,000 13,062
Los Angeles, Unified School
District, Ser B, COP (A) (B) (C)
0.300%, 05/01/09 3,000 3,000
Los Angeles, Wastewater Systems
Authority, Sub-Ser F-2,
RB (A) (B) (C)
0.300%, 05/01/09 7,000 7,000
Los Angeles, Water & Power
Resource Authority, Power
System Project, Sub-Ser A-7,
RB (B) (C)
0.240%, 05/01/09 5,000 5,000
Los Angeles, Water & Power
Resource Authority,
Sub-Ser B-1, RB (B) (C)
0.230%, 05/01/09 4,000 4,000
Los Angeles, Water & Power
Resource Authority, Sub-Ser
B-2, RB (B) (C)
0.230%, 05/01/09 12,600 12,600
Los Angeles, Water & Power
Resource Authority, Sub-Ser
B-3, RB (B) (C)
0.250%, 05/01/09 24,400 24,400
Los Angeles, Water & Power
Resource Authority,
Sub-Ser B-6, RB (B) (C)
0.150%, 05/01/09 5,000 5,000
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 45
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Oakland, Capital Equipment
Project, COP (A) (B) (C)
0.200%, 05/01/09 $ 3,000 $ 3,000
Oakland-Alameda County,
Coliseum Project, Ser C-1,
RB (A) (B) (C)
0.300%, 05/01/09 15,000 15,000
Orange County, Sanitation
District Authority,
Ser A, COP (B) (C)
1.000%, 05/01/09 13,830 13,830
Orange County, Sanitation
District Authority, Ser B,
COP (B) (C)
1.000%, 05/01/09 23,590 23,590
Orange County, Water
District Authority, Ser A,
COP (B) (C)
0.220%, 05/06/09 2,800 2,800
Pasadena, Public Financing
Authority, Rose Bowl
Refinancing & Improvement
Project, RB (A) (B) (C)
0.200%, 04/01/09 16,525 16,525
Riverside County, Public
Facilities Authority, Ser C,
COP (A) (B) (C)
0.300%, 05/01/09 12,300 12,300
Riverside, Water Authority,
Ser A, RB (B) (C)
0.300%, 05/01/09 8,305 8,305
Sacramento County, Sanitation
District Authority, Sub-Ser B,
RB (B) (C)
0.300%, 05/01/09 2,000 2,000
Sacramento County, Sanitation
District Authority, Sub-Ser E,
RB (A) (B) (C)
0.250%, 05/01/09 6,500 6,500
San Diego County, Regional
Transportation Commission,
Ser B, RB (B) (C)
0.200%, 05/01/09 13,650 13,650
San Diego County,
Regional Transportation
Commission, Ser C,
RB (B) (C)
0.930%, 05/01/09 5,000 5,000
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
San Francisco Bay, Area
Transit Financing Authority,
RB, FGIC
Pre-Refunded @ 101 (D)
5.500%, 07/01/09 $ 5,000 $ 5,100
San Jose, Redevelopment
Agency, Merged Area
Redevelopment Project,
Ser A, RB (A) (B) (C)
0.230%, 05/01/09 7,450 7,450
Santa Clara County, Financing
Authority, Multiple Facilities
Projects, Ser M, RB (A) (B) (C)
0.350%, 04/15/09 17,105 17,105
Santa Clara County, Financing
Authority, VMC Facility
Replacement Project,
Ser B, RB (B) (C)
0.250%, 05/01/09 13,475 13,475
Santa Clara Valley, Transportation
Authority, Ser C, RB (B) (C)
0.200%, 05/01/09 8,000 8,000
Santa Clara Valley, Transportation
Authority, Ser D, RB (B) (C)
0.270%, 05/01/09 6,000 6,000
Santa Clara, Electric Authority,
Sub-Ser A, RB (A) (B) (C)
0.300%, 05/01/09 5,000 5,000
Santa Clara, Electric Authority,
Sub-Ser B, RB (A) (B) (C)
0.800%, 05/01/09 5,000 5,000
Santa Cruz County, TRAN
3.000%, 07/06/09 5,000 5,018
Southern California, Metropolitan
Water District Authority,
Ser 1, RB (B) (C)
0.300%, 05/01/09 9,735 9,735
Southern California, Metropolitan
Water District Authority,
Ser A, RB (B) (C)
0.230%, 07/01/09 3,600 3,600
Southern California, Metropolitan
Water District Authority,
Ser B, RB (B) (C)
0.230%, 05/01/09 4,200 4,200
Southern California, Metropolitan
Water District Authority,
Ser C-1, RB (B) (C)
0.200%, 05/01/09 11,400 11,400
Southern California, Metropolitan
Water District Authority,
Ser C-1, RB (B) (C)
0.700%, 05/01/09 5,700 5,700
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 46
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Southern California, Metropolitan
Water District Authority,
Ser C-3, RB (B) (C)
1.050%, 05/01/09 $ 8,375 $ 8,375
Southern California, Metropolitan
Water District Authority,
Water Works Authorization
Project, Ser B, RB (B) (C)
0.260%, 05/01/09 10,135 10,135
Southern California, Public
Power Authority, Southern
Transmission Project, Ser A,
RB, FSA (B) (C)
2.250%, 05/06/09 6,000 6,000
Turlock, Irrigation District,
Capital Improvement &
Refunding Project, COP
(A) (B) (C)
0.250%, 05/01/09 6,070 6,070
Tustin, Improvement Board
Act, Reassessment District
No. 95-2-A, Ser A,
SAB (A) (B) (C)
0.300%, 05/01/09 9,250 9,250
University of California,
Regents Medical Center,
Ser B-1, RB (B) (C)
0.250%, 05/01/09 6,510 6,510
University of California,
Regents Medical Center,
Ser B-2, RB (B) (C)
0.280%, 04/01/09 5,480 5,480
University of California,
Ser M, RB, FGIC
Pre-Refunded @ 101 (D)
5.125%, 09/01/09 7,850 8,044
Ventura County, RB
3.500%, 07/01/09 10,000 10,047
-----------
TOTAL CALIFORNIA 960,174
===========
CONNECTICUT [2.8%]
Connecticut State, Health &
Educational Facility Authority,
Yale University Project,
Ser V-1, RB (B) (C)
0.200%, 05/01/09 15,000 15,000
Connecticut State, Health &
Educational Facility Authority,
Yale University Project,
Ser X-2, RB (B) (C)
0.200%, 05/01/09 6,000 6,000
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
Connecticut State, Health &
Educational Facility Authority,
Yale University Project,
Ser Y-2, RB (B) (C)
0.200%, 05/01/09 $ 8,850 $ 8,850
-----------
TOTAL CONNECTICUT 29,850
===========
ILLINOIS [0.9%]
Illinois State, Finance Authority,
Northwestern Memorial
Project, Sub-Ser B-1,
RB (B) (C)
0.400%, 05/01/09 5,000 5,000
Illinois State, Finance Authority,
Northwestern University
Project, Sub-Ser A, RB (B) (C)
0.400%, 04/01/09 4,600 4,600
-----------
TOTAL ILLINOIS 9,600
===========
MASSACHUSETTS [1.9%]
Massachusetts State,
Development Finance Agency,
Harvard University Project,
Ser HH, RB (B) (C)
0.270%, 05/01/09 5,950 5,950
Massachusetts State, Health &
Educational Facilities
Authority, Tufts University
Project, Ser N-1, RB (B) (C)
0.200%, 05/01/09 14,200 14,200
-----------
TOTAL MASSACHUSETTS 20,150
===========
MICHIGAN [0.5%]
University of Michigan,
Ser B, RB (B) (C)
0.150%, 04/02/09 6,000 6,000
===========
TEXAS [1.7%]
University of Texas, Ser A,
RB (B) (C)
0.200%, 05/01/09 4,695 4,695
University of Texas, Ser B,
RB (B) (C)
0.150%, 04/02/09 13,600 13,600
-----------
TOTAL TEXAS 18,295
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 47
schedule of investments
MARCH 31, 2009 (UNAUDITED)
CALIFORNIA TAX EXEMPT MONEY MARKET FUND (CONCLUDED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------------------------------------------------- ---------- -----------
VIRGINIA [0.5%]
University of Virginia, Ser A,
RB (B) (C)
0.200%, 05/01/09 $ 4,965 $ 4,965
===========
TOTAL MUNICIPAL BONDS
(Cost $1,049,034) 1,049,034
===========
COMMERCIAL PAPER [3.3%]
Contra Costa, Water District
Authority
0.500%, 04/07/09 3,400 3,400
0.600%, 06/04/09 9,200 9,200
San Diego County,Water
Authority
0.320%, 04/07/09 15,000 15,000
University of California
0.450%, 06/08/09 8,100 8,100
===========
TOTAL COMMERCIAL PAPER
(Cost $35,700) 35,700
===========
TOTAL INVESTMENTS [100.8%]
(Cost $1,084,734) $ 1,084,734
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $1,075,835 ($ THOUSANDS).
(A) SECURITIES ARE HELD IN CONJUNCTION WITH A LETTER OF CREDIT FROM A MAJOR
BANK OR FINANCIAL INSTITUTION.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH
31, 2009.
(C) PUT AND DEMAND FEATURE -- THE DATE REPORTED IS THE NEXT RESET DATE.
(D) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
COP -- CERTIFICATE OF PARTICIPATION
FGIC -- FINANCIAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSISTANCE
GO -- GENERAL OBLIGATION
RB -- REVENUE BOND
SAB -- SPECIAL ASSESSMENT BOND
SER -- SERIES
TRAN -- TAX & REVENUE ANTICIPATION NOTE
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 48
THIS PAGE INTENTIONALLY LEFT BLANK.
statements of assets and liabilities (000)
MARCH 31, 2009 (UNAUDITED)
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic
Equity Fund Equity Fund Value Fund Value Fund
--------------- ---------------- ------------- -------------
ASSETS:
Cost of securities (including
repurchase agreements) $ 96,563 $ 37,920 $ 23,362 $ 17,942
----------- ----------- ----------- -----------
Investments in securities at value $ 69,391 $ 29,632 $ 14,849 $ 19,078
Repurchase agreements at value -- -- 474 --
Receivable for investment securities
sold -- 285 77 92
Income receivable 137 23 29 22
Receivable for capital shares sold 100 23 36 18
Deferred offering costs -- -- -- 8
Prepaid expenses 4 2 1 2
----------- ----------- ----------- -----------
Total Assets 69,632 29,965 15,466 19,220
----------- ----------- ----------- -----------
LIABILITIES:
Payable for investment securities
purchased -- -- 97 21
Payable for capital shares redeemed 430 5 467 --
Payable for income distributions 129 33 -- 18
Investment adviser fees payable 33 16 10 5
Shareholder servicing & distribution
fees payable 15 8 2 --
Administrative fees payable 3 1 1 --
Accrued expenses 5 3 14 1
----------- ----------- ----------- -----------
Total Liabilities 615 66 591 45
----------- ----------- ----------- -----------
NET ASSETS $ 69,017 $ 29,899 $ 14,875 $ 19,175
----------- ----------- ----------- -----------
NET ASSETS
Paid-in Capital (unlimited
authorization -- $0.01 par value) $ 105,226 $ 41,798 $ 30,292 $ 36,555
Distribution in excess of net
investment income (1) -- (4) --
Accumulated net realized loss on
investments (9,036) (3,611) (7,374) (18,516)
Net unrealized appreciation
(depreciation) on investments (27,172) (8,288) (8,039) 1,136
----------- ----------- ----------- -----------
NET ASSETS $ 69,017 $ 29,899 $ 14,875 $ 19,175
----------- ----------- ----------- -----------
Institutional Class Shares ($Dollars):
Net Assets $61,839,519 $22,383,385 $ 1,242,548 $ 64
Total shares outstanding at end of year 11,149,232 4,048,001 113,932 13
Net asset value, offering and
redemption price per share (net
assets / shares outstanding) $ 5.55 $ 5.53 $ 10.91 $ 4.87
Class N Shares ($Dollars):
Net Assets $ 7,177,485 $ 7,515,674 $ 2,595,395 $ 3,860
Total shares outstanding at end of year 1,296,043 1,373,377 242,124 794
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 5.54 $ 5.47 $ 10.72 $ 4.86
Class E Shares ($Dollars):
Net Assets $ -- $ -- $ -- $19,170,996
Total shares outstanding at end of year -- -- -- 4,001,244
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ -- $ -- $ -- $ 4.79
Class R Shares ($Dollars):
Net Assets $ -- $ -- $11,036,974 $ --
Total shares outstanding at end of year -- -- 1,029,056 --
Net asset value and redemption price
per share
(net assets / shares outstanding) $ -- $ -- $ 10.73 $ --
Maximum offering price per share
(net asset value / 96.50%) $ -- $ -- $ 11.12 $ --
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 50
statements of assets and liabilities (000)
MARCH 31, 2009 (UNAUDITED)
California
Multi-Asset Corporate Government Tax Exempt
Fund Bond Fund Bond Fund Bond Fund
----------- ----------- ----------- -----------
ASSETS:
Cost of securities (including
affiliated) $ 24,049 $ 74,249 $ 72,287 $ 33,716
----------- ----------- ----------- -----------
Investments in securities at value $ 17,988 $ 72,367 $ 73,653 $ 34,286
Affiliated investments at value 3,661 -- -- --
Income receivable 72 852 414 454
Receivable for capital shares sold 16 458 12 1,200
Prepaid expenses 1 3 3 1
----------- ----------- ----------- -----------
Total Assets 21,738 73,680 74,082 35,941
----------- ----------- ----------- -----------
LIABILITIES:
Payable for income distributions 40 195 157 58
Payable for capital shares redeemed -- 68 50 --
Payable for investment securities
purchased -- 1,068 -- --
Investment adviser fees payable 10 24 23 5
Shareholder servicing & distribution
fees payable 8 15 16 8
Administrative fees payable 1 3 3 1
Accrued expenses 1 4 4 2
----------- ----------- ----------- -----------
Total Liabilities 60 1,377 253 74
----------- ----------- ----------- -----------
Net Assets $ 21,678 $ 72,303 $ 73,829 $ 35,867
----------- ----------- ----------- -----------
NET ASSETS
Paid-in Capital (unlimited
authorization -- $0.01 par value) $ 27,963 $ 74,714 $ 73,003 $ 35,485
Undistributed (distribution in excess
of) net investment income 1 1 (12) --
Accumulated net realized loss on
investments (3,886) (530) (528) (188)
Net unrealized appreciation
(depreciation) on investments (2,400) (1,882) 1,366 570
----------- ----------- ----------- -----------
Net Assets $ 21,678 $ 72,303 $ 73,829 $ 35,867
----------- ----------- ----------- -----------
Institutional Class Shares ($Dollars):
Net Assets $ 7,256,375 $71,661,772 $70,677,651 $34,500,293
Total shares outstanding at end of year 842,554 7,207,556 6,709,332 3,335,924
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 8.61 $ 9.94 $ 10.53 $ 10.34
Class N Shares ($Dollars):
Net Assets $14,421,740 $ 641,100 $ 3,151,388 $ 1,366,941
Total shares outstanding at end of year 1,675,332 64,432 298,518 131,829
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 8.61 $ 9.95 $ 10.56 $ 10.37
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 51
statements of assets and liabilities (000)
MARCH 31, 2009 (UNAUDITED)
California
Prime Government Tax Exempt
High Yield Money Market Money Market Money Market
Bond Fund Fund Fund Fund
----------- ------------ -------------- ------------
ASSETS:
Cost of securities (including
repurchase agreements) $ 36,044 $ 1,955,795 $ 3,054,795 $ 1,084,734
----------- ------------ -------------- ------------
Investments in securities at value $ 24,605 $ 1,279,295 $ 1,467,895 $ 1,084,734
Repurchase agreements at value -- 676,500 1,586,900 --
Cash 6 -- 46 --
Income receivable 813 834 2,613 2,399
Receivable for capital shares sold 4 -- -- --
Receivable for yield floor waiver -- 545 1,315 397
Prepaid expenses 1 176 261 85
----------- ------------ -------------- ------------
Total Assets 25,429 1,957,350 3,059,030 1,087,615
----------- ------------ -------------- ------------
LIABILITIES:
Payable for income distributions 65 238 77 40
Payable for capital shares redeemed 3 -- -- --
Payable for investment securities
purchased -- -- -- 4,000
Shareholder servicing & distribution
fees payable 9 810 1,299 429
Investment adviser fees payable 14 430 675 207
Administrative fees payable 1 81 123 45
Payable to custodian -- -- -- 7,001
Accrued expenses 2 94 121 58
----------- ------------ -------------- ------------
Total Liabilities 94 1,653 2,295 11,780
----------- ------------ -------------- ------------
NET ASSETS $ 25,335 $ 1,955,697 $ 3,056,735 $ 1,075,835
----------- ------------ -------------- ------------
NET ASSETS:
Paid-in Capital
(unlimited authorization -- $0.01
par value) $ 39,719 $ 1,955,498 $ 3,056,723 $ 1,075,834
Undistributed (distribution in excess
of) net investment income 47 (5) (8) --
Accumulated net realized gain (loss) on
investments (2,992) 204 20 1
Net unrealized depreciation on
investments (11,439) -- -- --
----------- ------------ -------------- ------------
NET ASSETS $ 25,335 $ 1,955,697 $ 3,056,735 $ 1,075,835
----------- ------------ -------------- ------------
Institutional Class Shares ($Dollars):
Net Assets $11,303,355 $630,709,468 $ 174,858,898 $214,969,738
Total shares outstanding at end of year 1,933,170 630,710,302 174,860,257 214,971,732
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 5.85 $ 1.00 $ 1.00 $ 1.00
Class N Shares ($Dollars):
Net Assets $14,031,854 $783,282,865 $2,498,487,641 $794,161,394
Total shares outstanding at end of year 2,399,843 783,260,915 2,498,475,052 794,163,099
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 5.85 $ 1.00 $ 1.00 $ 1.00
Class S Shares ($Dollars):
Net Assets $ -- $541,704,630 $ 383,388,099 $ 66,703,752
Total shares outstanding at end of year -- 541,620,247 383,387,630 66,700,124
Net asset value and redemption price
per share
(net assets / shares outstanding) $ -- $ 1.00 $ 1.00 $ 1.00
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 52
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED)
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic
Equity Fund Equity Fund Value Fund Value Fund
(000) (000) (000) (000)
--------------- ---------------- ------------- -------------
INCOME:
Dividend Income $ 1,325 $ 278 $ 67 $ 236
Interest Income -- -- 1 --
Less: Foreign Taxes Withheld -- -- -- (2)
-------- -------- ------- --------
Total Investment Income 1,325 278 68 234
-------- -------- ------- --------
EXPENSES:
Investment Advisory Fee 227 101 68 49
Shareholder Servicing Fees--
Institutional Class 81 29 2 --
Shareholder Servicing Fees--Class N(1) 21 20 7 --
Shareholder Servicing Fees--Class R(1) -- -- 30 --
Administration Fee 16 7 4 4
Transfer Agent Fees 3 1 28 1
Trustee Fees 1 -- -- --
Professional Fees 5 2 1 1
Custody Fees 2 1 -- 1
Registration Fees 2 1 1 --
Printing Fees 1 1 -- 1
Insurance and Other Expenses 5 2 1 11
-------- -------- ------- --------
Total Expenses 364 165 142 68
-------- -------- ------- --------
Less, Waiver/Reimbursement of:
Shareholder Servicing Fees--
Class R(1) -- -- (73) --
Transfer Agent Fees (3) (1) (1) (1)
-------- -------- ------- --------
Net Expenses 361 164 68 67
-------- -------- ------- --------
NET INVESTMENT INCOME 964 114 -- 167
-------- -------- ------- --------
Net Realized Loss From
Securities Transactions (7,038) (1,458) (6,710) (17,791)
Net Change in Unrealized
Appreciation (Depreciation)
on Investments (26,060) (9,074) (1,205) 6,239
-------- -------- ------- --------
NET DECREASE IN NET ASSETS FROM OPERATIONS $(32,134) $(10,418) $(7,915) $(11,385)
======== ======== ======= ========
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 53
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED)
California
Multi-Asset Corporate Government Tax Exempt
Fund Bond Fund Bond Fund Bond Fund
(000) (000) (000) (000)
----------- --------- ---------- ----------
INCOME:
Interest Income $ 68 $1,717 $1,583 $ 631
Dividend Income 178 -- -- --
Income from Affiliated Investments 83 -- -- --
------- ------ ------ ------
Total Income 329 1,717 1,583 631
------- ------ ------ ------
EXPENSES:
Investment Advisory Fee 61 141 153 46
Shareholder Servicing Fees--Institutional Class 12 88 85 42
Shareholder Servicing Fees--Class N(1) 36 1 8 3
Administration Fee 5 16 16 8
Trustee Fees -- 1 1 --
Transfer Agent Fees 1 3 3 1
Professional Fees 2 5 4 2
Custody Fees 1 2 1 1
Printing Fees 1 1 2 1
Registration Fees -- 1 1 --
Insurance and Other Expenses 1 4 3 2
------- ------ ------ ------
Total Expenses 120 263 277 106
------- ------ ------ ------
Less,Waivers of:
Investment Advisory Fees -- -- (21) (17)
Transfer Agent Fees (1) (3) (3) (1)
------- ------ ------ ------
NET EXPENSES 119 260 253 88
------- ------ ------ ------
NET INVESTMENT INCOME 210 1,457 1,330 543
------- ------ ------ ------
Net Realized Gain (Loss)
From Securities Transactions (3,514) 12 8 (94)
From Affiliated Investments (3) -- -- --
Net Change in Unrealized Appreciation
on Investments 425 1,303 935 1,052
------- ------ ------ ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(2,882) $2,772 $2,273 $1,501
======= ====== ====== ======
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 54
statements of operations
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED)
California
Prime Government Tax Exempt
High Yield Money Market Money Market Money Market
Bond Fund Fund Fund Fund
(000) (000) (000) (000)
---------- ------------ ------------ ------------
INCOME:
Interest Income $ 1,534 $14,972 $17,739 $ 5,773
Dividend Income 22 -- -- --
------- ------- ------- -------
Total Income 1,556 14,972 17,739 5,773
------- ------- ------- -------
EXPENSES:
Investment Advisory Fee 95 2,767 4,550 1,647
Shareholder Servicing Fees--Institutional Class 14 760 183 252
Shareholder Servicing Fees--Class N(1) 38 3,741 11,098 3,407
Shareholder Servicing Fees--Class S(1) -- 2,281 1,479 414
Administration Fee 6 496 783 273
Trustee Fees -- 29 46 16
Transfer Agent Fees 1 84 133 46
Professional Fees 2 147 221 76
Custody Fees 1 51 72 27
Printing Fees 1 53 84 27
Registration Fees -- 49 84 12
Treasury Guarantee Program Fees -- 512 730 260
Insurance and Other Expenses 1 123 172 60
------- ------- ------- -------
Total Expenses 159 11,093 19,635 6,517
------- ------- ------- -------
Less,Waivers of:
Investment Advisory Fees (11) -- (329) (569)
Shareholder Servicing Fees--Institutional Class -- (130) (94) (148)
Shareholder Servicing Fees--Class N(1) -- (1,732) (6,661) (2,369)
Shareholder Servicing Fees--Class S(1) -- (630) (686) (201)
Transfer Agent Fees (1) (84) (133) (46)
------- ------- ------- -------
NET EXPENSES 147 8,517 11,732 3,184
------- ------- ------- -------
NET INVESTMENT INCOME 1,409 6,455 6,007 2,589
------- ------- ------- -------
Net Realized Gain (Loss) From Securities Transactions (1,638) 117 4 --
Net Change in Unrealized Depreciation
on Investments (4,942) -- -- --
------- ------- ------- -------
Total Net Realized and Unrealized Gain (Loss)
on Investments (6,580) 117 4 --
------- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $(5,171) $ 6,572 $ 6,011 $ 2,589
======= ======= ======= =======
(1) INCLUDES CLASS SPECIFIC DISTRIBUTION EXPENSES.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 55
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED) AND THE YEAR ENDED
SEPTEMBER 30, 2008
Large Cap Value Large Cap Growth
Equity Fund (000) Equity Fund (000)
------------------- -------------------
2009 2008 2009 2008
-------- -------- -------- --------
OPERATIONS:
Net Investment Income (Loss) $ 964 $ 1,828 $ 114 $ 154
Net Realized Gain (Loss) from Security Transactions (7,038) (2,121) (1,458) 229
Net Change in Unrealized Appreciation
(Depreciation) on Investments (26,060) (27,129) (9,074) (9,483)
-------- -------- -------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations (32,134) (27,422) (10,418) (9,100)
-------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net Investment Income:
INSTITUTIONAL CLASS (757) (1,637) (99) (138)
CLASS N (81) (190) (25) (14)
CLASS R -- -- -- --
CLASS E -- -- -- --
Realized Capital Gains:
INSTITUTIONAL CLASS -- (4,754) -- --
CLASS N -- (735) -- --
CLASS R -- -- -- --
-------- -------- -------- --------
Total Dividends and Distributions (838) (7,316) (124) (152)
-------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 11,272 22,976 3,071 5,320
Shares Issued in Lieu of Dividends and Distributions 526 4,640 30 47
Shares Redeemed (9,147) (18,936) (4,041) (13,229)
-------- -------- -------- --------
Increase (Decrease) in Net Assets from
Institutional Class Share Transactions 2,651 8,680 (940) (7,862)
-------- -------- -------- --------
CLASS N:
Shares Issued 246 623 220 909
Shares Issued in Lieu of Dividends and Distributions 55 660 15 9
Shares Redeemed (1,036) (2,366) (1,269) (2,236)
-------- -------- -------- --------
Increase (Decrease) in Net Assets from
Class N Share Transactions (735) (1,083) (1,034) (1,318)
-------- -------- -------- --------
CLASS R:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
-------- -------- -------- --------
Decrease in Net Assets from
Class R Share Transactions -- -- -- --
-------- -------- -------- --------
CLASS E:
Shares Issued -- -- -- --
Shares Issued in Lieu of Dividends and Distributions -- -- -- --
Shares Redeemed -- -- -- --
-------- -------- -------- --------
Increase (Decrease) in Net Assets from
Class E Share Transactions -- -- -- --
-------- -------- -------- --------
Net Increase (Decrease) in Net Assets from Share Transactions 1,916 7,597 (1,974) (9,180)
-------- -------- -------- --------
Total Increase (Decrease) in Net Assets (31,056) (27,141) (12,516) (18,432)
-------- -------- -------- --------
NET ASSETS:
Beginning of Period 100,073 127,214 42,415 60,847
-------- -------- -------- --------
End of Period $ 69,017 $100,073 $ 29,899 $ 42,415
======== ======== ======== ========
Undistributed (Distributions in Excess of)
Net Investment Income $ (1) $ (127) $ -- $ 10
-------- -------- -------- --------
* FUND COMMENCED OPERATIONS ON OCTOBER 1, 2007.
** FUND COMMENCED OPERATIONS ON JUNE 26, 2008.
(1) SEE NOTE 8 FOR SHARES ISSUED AND REDEEMED.
(2) INCLUDES SUBSCRIPTIONS AS A RESULT OF AN IN-KIND TRANSFER OF SECURITIES
(SEE NOTE 9).
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 56
RCB Small Cap Opportunistic Multi-Asset Corporate Bond
Value Fund (000) Value Fund (000) Fund (000) Fund (000)
- ------------------- ------------------ ----------------- ------------------
2009 2008 2009 2008** 2009 2008* 2009 2008
- -------- -------- -------- ------- ------- ------- ------- --------
$ -- $ 364 $ 167 $ 174 $ 210 $ 474 $ 1,457 $ 2,891
(6,710) 53 (17,791) (725) (3,517) (369) 12 (66)
(1,205) (18,035) 6,239 (5,103) 425 (2,825) 1,303 (3,019)
- -------- -------- -------- ------- ------- ------- ------- --------
(7,915) (17,618) (11,385) (5,654) (2,882) (2,720) 2,772 (194)
- -------- -------- -------- ------- ------- ------- ------- --------
(30) -- -- -- (87) (205) (1,446) (2,857)
(69) -- (1) -- (123) (268) (11) (31)
(341) -- -- -- -- -- -- --
-- -- (340) -- -- -- -- --
-- (1,426) -- -- -- -- -- --
-- (1,567) -- -- -- -- -- --
-- (6,612) -- -- -- -- -- --
- -------- -------- -------- ------- ------- ------- ------- --------
(440) (9,605) (341) -- (210) (473) (1,457) (2,888)
- -------- -------- -------- ------- ------- ------- ------- --------
155 944 -- -- 2,420 13,719 8,462 23,936
28 1,255 -- -- 43 50 299 605
(106) (6,104) -- -- (4,676) (1,732) (8,114) (13,983)
- -------- -------- -------- ------- ------- ------- ------- --------
77 (3,905) -- -- (2,213) 12,037 647 10,558
- -------- -------- -------- ------- ------- ------- ------- --------
1 111 -- 8 1,537 20,655 105 39
50 1,250 -- -- 58 118 6 16
(262) (2,424) -- -- (2,061) (2,168) (87) (467)
- -------- -------- -------- ------- ------- ------- ------- --------
(211) (1,063) -- 8 (466) 18,605 24 (412)
- -------- -------- -------- ------- ------- ------- ------- --------
722 5,853 -- -- -- -- -- --
324 6,293 -- -- -- -- -- --
(2,869) (14,527) -- -- -- -- -- --
- -------- -------- -------- ------- ------- ------- ------- --------
(1,823) (2,381) -- -- -- -- -- --
- -------- -------- -------- ------- ------- ------- ------- --------
-- -- 16,515 50,892(2) -- -- --
-- -- 340 -- -- -- -- --
-- -- (31,200) -- -- -- -- --
- -------- -------- -------- ------- ------- ------- ------- --------
-- -- (14,345) 50,892 -- -- -- --
- -------- -------- -------- ------- ------- ------- ------- --------
(1,957) (7,349) (14,345) 50,900 (2,679) 30,642 671 10,146
- -------- -------- -------- ------- ------- ------- ------- --------
(10,312) (34,572) (26,071) 45,246 (5,771) 27,449 1,986 7,064
- -------- -------- -------- ------- ------- ------- ------- --------
25,187 59,759 45,246 -- 27,449 -- 70,317 63,253
- -------- -------- -------- ------- ------- ------- ------- --------
$ 14,875 $ 25,187 $ 19,175 $45,246 $21,678 $27,449 $72,303 $ 70,317
======== ======== ======== ======= ======= ======= ======= ========
$ (4) $ 436 $ -- $ 174 $ 1 $ 1 $ 1 $ 1
- -------- -------- -------- ------- ------- ------- ------- --------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 57
statements of changes in net assets
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER
30, 2008
California Tax
Government Exempt
Bond Fund (000) Bond Fund (000)
------------------ -----------------
2009 2008 2009 2008
------- -------- ------- -------
OPERATIONS:
Net Investment Income $ 1,330 $ 2,627 $ 543 $ 1,063
Net Realized Gain (Loss)
from Security
Transactions 8 42 (94) (52)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 935 250 1,052 (573)
------- -------- ------- -------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations 2,273 2,919 1,501 438
------- -------- ------- -------
DIVIDENDS AND DISTRIBUTIONS
FROM:
Net Investment Income:
INSTITUTIONAL CLASS (1,288) (2,532) (527) (1,041)
CLASS N (53) (107) (16) (22)
CLASS S -- -- -- --
------- -------- ------- -------
Total Dividends and
Distributions (1,341) (2,639) (543) (1,063)
------- -------- ------- -------
CAPITAL SHARE
TRANSACTIONS:(1)
INSTITUTIONAL CLASS:
Shares Issued 10,574 24,102 4,793 10,565
Shares Issued in Lieu of
Dividends and
Distributions 359 699 182 369
Shares Redeemed (7,245) (11,579) (5,663) (9,859)
------- -------- ------- -------
Increase (Decrease)
in Net Assets from
Institutional
Class Share
Transactions 3,688 13,222 (688) 1,075
------- -------- ------- -------
CLASS N:
Shares Issued 510 780 441 776
Shares Issued in Lieu of
Dividends and
Distributions 24 44 4 4
Shares Redeemed (183) (706) (159) (643)
------- -------- ------- -------
Increase (Decrease)
in Net Assets from
Class N Share
Transactions 351 118 286 137
------- -------- ------- -------
CLASS S:
Shares Issued -- -- -- --
Shares Issued in Lieu of
Dividends and
Distributions -- -- -- --
Shares Redeemed -- -- -- --
------- -------- ------- -------
Increase (Decrease)
in Net Assets from
Class S Share
Transactions -- -- -- --
------- -------- ------- -------
Net Increase (Decrease) in
Net Assets from Share
Transactions 4,039 13,340 (402) 1,212
------- -------- ------- -------
Total Increase (Decrease)
in Net Assets 4,971 13,620 556 587
------- -------- ------- -------
NET ASSETS:
Beginning of Period 68,858 55,238 35,311 34,724
------- -------- ------- -------
End of Period $73,829 $ 68,858 $35,867 $35,311
======= ======== ======= =======
Undistributed (Distribution
in Excess of) Net
Investment Income $ (12) $ (1) $ -- $ --
------- -------- ------- -------
(1) SEE NOTE 9 FOR SHARES ISSUED AND REDEEMED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 58
High Yield Prime Money Government Money California Tax Exempt
Bond Fund (000) Market Fund (000) Market Fund (000) Money Market Fund (000)
- ----------------- ------------------------- ------------------------- ------------------------
2009 2008 2009 2008 2009 2008 2009 2008
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
$ 1,409 $ 2,807 $ 6,455 $ 61,887 $ 6,007 $ 73,638 $ 2,589 $ 17,077
(1,638) (526) 117 297 4 17 -- --
(4,942) (5,822) -- -- -- -- -- --
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
(5,171) (3,541) 6,572 62,184 6,011 73,655 2,589 17,077
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
(644) (1,258) (2,177) (14,508) (312) (1,571) (486) (2,286)
(775) (1,548) (2,976) (30,822) (5,246) (64,510) (1,886) (12,486)
-- -- (1,306) (16,569) (456) (7,574) (219) (2,303)
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
(1,419) (2,806) (6,459) (61,899) (6,014) (73,655) (2,591) (17,075)
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
487 1,173 749,576 1,704,267 388,506 553,021 622,939 1,830,572
389 862 357 2,772 7 3 -- --
(584) (2,455) (652,183) (1,612,805) (314,328) (500,209) (565,396) (1,762,382)
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
292 (420) 97,750 94,234 74,185 52,815 57,543 68,190
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
267 1,645 1,349,784 3,333,223 2,374,113 6,290,498 889,206 2,477,610
516 1,000 1,344 13,996 3,744 43,391 1,613 9,947
(597) (1,689) (1,691,799) (3,093,998) (2,886,302) (5,618,090) (977,450) (2,302,084)
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
186 956 (340,671) 253,221 (508,455) 715,799 (86,631) 185,473
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
-- -- 725,778 1,657,732 381,028 801,055 166,853 409,458
-- -- -- -- -- -- -- --
-- -- (817,919) (1,644,197) (406,386) (713,370) (241,906) (446,618)
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
-- -- (92,141) 13,535 (25,358) 87,685 (75,053) (37,160)
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
478 536 (335,062) 360,990 (459,618) 856,299 (104,141) 216,503
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
(6,112) (5,811) (334,949) 361,275 (459,621) 856,299 (104,143) 216,505
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
31,447 37,258 2,290,646 1,929,371 3,516,356 2,660,057 1,179,978 963,473
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
$25,335 $31,447 $ 1,955,697 $ 2,290,646 $ 3,056,735 $ 3,516,356 $1,075,835 $ 1,179,978
======= ======= =========== =========== =========== =========== ========== ===========
$ 47 $ 57 $ (5) $ (1) $ (8) $ (1) $ -- $ 2
- ------- ------- ----------- ----------- ----------- ----------- ---------- -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 59
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
SEPTEMBER 30,
NET
REALIZED
AND
NET UNREALIZED DISTRIBUTIONS NET
ASSET NET GAINS DIVIDENDS FROM ASSET
VALUE INVESTMENT (LOSSES) FROM NET REALIZED VALUE
BEGINNING INCOME ON INVESTMENT CAPITAL END OF
OF PERIOD (LOSS)+ SECURITIES+ INCOME GAINS PERIOD
--------- ---------- ----------- ---------- ------------- ------
Large Cap Value Equity Fund
Institutional Class (commenced operations on January 14, 2000)
2009* $ 8.25 $ 0.08 $ (2.71) $(0.07) $ -- $ 5.55
2008 11.21 0.16 (2.48) (0.15) (0.49) 8.25
2007 10.36 0.19 1.38 (0.19) (0.53) 11.21
2006 9.54 0.13 1.21 (0.13) (0.39) 10.36
2005 8.77 0.10 1.13 (0.10) (0.36) 9.54
2004 7.41 0.08 1.36 (0.08) -- 8.77
Class N (commenced operations on April 13, 2000)
2009* $ 8.24 $ 0.07 $ (2.71) $(0.06) $ -- $ 5.54
2008 11.19 0.13 (2.46) (0.13) (0.49) 8.24
2007 10.35 0.16 1.37 (0.16) (0.53) 11.19
2006 9.53 0.11 1.20 (0.10) (0.39) 10.35
2005 8.76 0.09 1.12 (0.08) (0.36) 9.53
2004 7.41 0.05 1.36 (0.06) -- 8.76
Large Cap Growth Equity Fund
Institutional Class (commenced operations on January 14, 2000)
2009* $ 7.38 $ 0.02 $ (1.85) $(0.02) $ -- $ 5.53
2008 8.86 0.03 (1.48) (0.03) -- 7.38
2007 7.75 0.05 1.10 (0.04) -- 8.86
2006 7.43 0.02 0.32 (0.02) -- 7.75
2005 6.76 0.04 0.67 (0.04) -- 7.43
2004 6.37 0.01 0.38 --## -- 6.76
Class N (commenced operations on March 28, 2000)
2009* $ 7.31 $ 0.02 $ (1.84) $(0.02) $ -- $ 5.47
2008 8.77 0.01 (1.46) (0.01) -- 7.31
2007 7.68 0.01 1.10 (0.02) -- 8.77
2006 7.35 -- 0.33 --## -- 7.68
2005 6.69 0.02 0.67 (0.03) -- 7.35
2004 6.32 (0.01) 0.38 --## -- 6.69
RCB Small Cap Value Fund
Institutional Class (commenced operations on October 3, 2001)
2009* $16.42 $(0.02) $ (5.20) $(0.29) $ -- $10.91
2008 30.79 0.19 (9.57) -- (4.99) 16.42
2007 28.25 0.02 3.00 (0.01) (0.47) 30.79
2006 28.58 0.06 0.05 (0.07) (0.37) 28.25
2005 27.30 0.07 2.58 -- (1.37) 28.58
2004 21.92 0.06 5.40 -- (0.08) 27.30
Class N (commenced operations on October 3, 2001)
2009* $16.14 $(0.03) $ (5.12) $(0.27) $ -- $10.72
2008 30.42 0.15 (9.44) -- (4.99) 16.14
2007 27.98 (0.05) 2.96 -- (0.47) 30.42
2006 28.31 (0.01) 0.05 --## (0.37) 27.98
2005 27.13 0.00 2.55 -- (1.37) 28.31
2004 21.84 (0.02) 5.39 -- (0.08) 27.13
Class R (commenced operations on September 30, 1998)
2009* $16.15 $ 0.01 $ (5.11) $(0.32) $ -- $10.73
2008 30.38 0.20 (9.44) -- (4.99) 16.15
2007 27.93 (0.05) 2.97 -- (0.47) 30.38
2006 28.27 (0.01) 0.04 --## (0.37) 27.93
2005 27.09 0.01 2.54 -- (1.37) 28.27
2004 21.81 (0.02) 5.38 -- (0.08) 27.09
Opportunistic Value Fund
Institutional Class (commenced operations on June 26, 2008)
2009* $ 9.31 $ 0.04 $ (2.84) $(1.64) $ -- $ 4.87
2008 10.00 0.05 (0.74) -- -- 9.31
Class N (commenced operations on June 26, 2008)
2009* $ 9.31 $ 0.03 $ (2.82) $(1.64) $ -- $ 4.86
2008 10.00 0.04 (0.73) -- -- 9.31
Class E (commenced operations on June 26, 2008)
2009* $ 9.30 $ 0.06 $ (2.93) $(1.66) $ -- $ 4.79
2008 10.00 0.04 (0.74) -- -- 9.30
Multi-Asset Fund
Institutional Class (commenced operations on October 1, 2007)
2009* $ 9.70 $ 0.08 $ (1.08) $(0.09) $ -- $ 8.61
2008 11.00 0.25 (1.32) (0.23) -- 9.70
Class N (commenced operations on October 1, 2007)
2009* $ 9.69 $ 0.07 $ (1.07) $(0.08) $ -- $ 8.61
2008 11.00 0.23 (1.33) (0.21) -- 9.69
RATIO OF
EXPENSES
TO AVERAGE
NET RATIO OF NET NET ASSETS
ASSETS RATIO OF INVESTMENT (EXCLUDING
END OF EXPENSES TO INCOM(LOSS) WAIVERS & PORTFOLIO
TOTAL PERIOD AVERAGE NET TO AVERAGE RECOVERED TURNOVER
RETURN++ (000) ASSETS(1, 2) NET ASSETS(1) FEES)(1) RATE
-------- ------------ ------------ ------------- ---------- ---------
Large Cap Value Equity Fund
Institutional Class (commenced operations on January 14, 2000)
2009* (31.95)% $ 61,840 0.95% 2.66% 0.96% 9%
2008 (21.57) 88,361 0.95 1.64 0.96 36
2007 15.60 110,024 0.96 1.73 0.97 24
2006 14.50 92,946 0.96 1.36 0.97 31
2005 14.39 42,974 0.96 1.12 0.97 34
2004 19.40 38,344 0.97 0.92 0.97 36
Class N (commenced operations on April 13, 2000)
2009* (32.07)% $ 7,177 1.20% 2.42% 1.21% 9%
2008 (21.72) 11,712 1.20 1.38 1.21 36
2007 15.24 17,190 1.21 1.47 1.22 24
2006 14.24 13,104 1.21 1.13 1.22 31
2005 14.14 10,664 1.21 0.87 1.22 34
2004 19.01 6,281 1.22 0.64 1.22 36
Large Cap Growth Equity Fund
Institutional Class (commenced operations on January 14, 2000)
2009* (24.74)% $ 22,383 0.98% 0.80% 0.99% 6%
2008 (16.40) 31,074 0.98 0.35 0.99 26
2007 14.91 45,784 0.99 0.52 1.00 30
2006 4.59 35,842 0.99 0.27 1.00 34
2005 10.55 34,164 0.98 0.57 1.00 27
2004 6.20 25,575 1.01 0.10 1.01 50
Class N (commenced operations on March 28, 2000)
2009* (24.94)% $ 7,516 1.23% 0.54% 1.24% 6%
2008 (16.55) 11,341 1.23 0.11 1.24 26
2007 14.51 15,063 1.24 0.28 1.25 30
2006 4.55 10,363 1.24 0.03 1.25 34
2005 10.28 8,278 1.23 0.33 1.25 27
2004 5.87 5,223 1.26 (0.14) 1.26 50
RCB Small Cap Value Fund
Institutional Class (commenced operations on October 3, 2001)
2009* (31.91)% $ 1,243 1.19% (0.38)% 1.20% 32%
2008 (35.01) 1,742 1.19 0.85 1.20 78
2007 10.65 9,062 1.19 0.08 1.20 57
2006 0.40 13,435 1.20 0.20 1.21 66
2005 9.87 13,975 1.18 0.26 1.20 41
2004 24.97 8,955 1.21 0.23 1.20 40
Class N (commenced operations on October 3, 2001)
2009* (32.02)% $ 2,595 1.44% (0.57)% 1.45% 32%
2008 (35.16) 4,262 1.44 0.70 1.45 78
2007 10.37 9,753 1.44 (0.16) 1.45 57
2006 0.17 10,470 1.45 (0.04) 1.46 66
2005 9.55 12,754 1.43 0.01 1.45 41
2004 24.64 7,551 1.49 (0.07) 1.48 40
Class R (commenced operations on September 30, 1998)
2009* (31.72)% $ 11,037 0.69% 0.16% 1.91% 32%
2008 (35.02) 19,183 1.23 0.92 1.55 78
2007 10.43 40,944 1.44 (0.17) 1.45 57
2006 0.14 45,836 1.45 (0.04) 1.46 66
2005 9.56 57,787 1.43 0.02 1.45 41
2004 24.63 36,473 1.49 (0.07) 1.48 40
Opportunistic Value Fund
Institutional Class (commenced operations on June 26, 2008)
2009* (31.52)% $ -- 1.04%(3) 1.27% 1.05%(3) 139%
2008 (6.90) -- 0.23(3) 1.83 0.23(3) 5
Class N (commenced operations on June 26, 2008)
2009* (31.70)% $ 4 1.30%(3) 1.12% 1.31%(3) 139%
2008 (6.90) 7 1.20(3) 1.50 1.23(3) 5
Class E (commenced operations on June 26, 2008)
2009* (32.13)% $ 19,171 0.68% 1.69% 0.69% 139%
2008 (7.00) 45,239 0.69(3) 1.44 0.70(3) 5
Multi-Asset Fund
Institutional Class (commenced operations on October 1, 2007)
2009* (10.36)% $ 7,256 0.83% 1.85% 0.84% 43%
2008 (9.84) 10,741 1.29 2.37 1.30 141
Class N (commenced operations on October 1, 2007)
2009* (10.38)% $ 14,422 1.08% 1.64% 1.09% 43%
2008 (10.12) 16,708 1.53 2.22 1.54 141
* FOR THE SIX MONTHS ENDED MARCH 31, 2009.
+ PER SHARE CALCULATIONS ARE BASED ON AVERAGE SHARES OUTSTANDING THROUGHOUT
THE PERIOD.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER.TOTAL RETURN FIGURES DO NOT INCLUDE APPLICABLE SALES LOADS.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
## AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED.THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
(3) RATIO REFLECTS THE IMPACT OF THE INITIAL LOW LEVEL OF AVERAGE NET ASSETS
ASSOCIATED WITH COMMENCEMENT OF OPERATIONS.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 60
RATIO OF
NET EXPENSES
REALIZED RATIO OF RATIO OF TO
AND EXPENSES NET AVERAGE
NET UNREALIZED DISTRIBUTIONS NET NET TO INVESTMENT NET ASSETS
ASSET GAINS DIVIDENDS FROM ASSET ASSETS AVERAGE INCOME (EXCLUDING
VALUE NET (LOSSES) FROM NET REALIZED VALUE END OF NET TO AVERAGE WAIVERS & PORTFOLIO
BEGINNING INVESTMENT ON INVESTMENT CAPITAL END OF TOTAL PERIOD ASSETS NET RECOVERED TURNOVER
OF PERIOD INCOME+ SECURITIES+ INCOME GAINS PERIOD RETURN++ (000) (1, 2) ASSETS(1) FEES)(1) RATE
--------- ---------- ----------- ---------- ------------- ------ -------- ------- -------- ---------- ---------- ---------
Corporate Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2009* $ 9.76 $0.20 $ 0.18 $(0.20) $ -- $ 9.94 3.96% $71,662 0.73% 4.12% 0.74% 7%
2008 10.18 0.43 (0.41) (0.44) -- 9.76 0.04 69,709 0.73 4.25 0.74 12
2007 10.17 0.45 -- (0.44) -- 10.18 4.57 62,210 0.74 4.39 0.75 30
2006 10.27 0.42 (0.10) (0.42) -- 10.17 3.19 55,290 0.75 4.14 0.75 25
2005 10.60 0.40 (0.27) (0.40) (0.06) 10.27 1.26 51,193 0.75 3.80 0.76 25
2004 10.89 0.41 (0.18) (0.41) (0.11) 10.60 2.15 47,080 0.75 3.82 0.79 57
Class N (commenced operations on April 13, 2000)
2009* $ 9.77 $0.19 $ 0.18 $(0.19) $ -- $ 9.95 3.82% $ 641 0.98% 3.87% 0.99% 7%
2008 10.18 0.41 (0.41) (0.41) -- 9.77 (0.11) 608 0.98 4.02 0.99 12
2007 10.17 0.42 0.01 (0.42) -- 10.18 4.30 1,043 0.99 4.13 1.00 30
2006 10.27 0.39 (0.10) (0.39) -- 10.17 2.93 1,332 1.00 3.88 1.00 25
2005 10.61 0.37 (0.28) (0.37) (0.06) 10.27 0.91 1,530 1.00 3.55 1.01 25
2004 10.89 0.37 (0.16) (0.38) (0.11) 10.61 1.99 1,522 1.00 3.51 1.04 57
Government Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2009* $10.40 $0.20 $ 0.13 $(0.20) $ -- $10.53 3.18% $70,678 0.70% 3.76% 0.77% 14%
2008 10.33 0.42 0.08 (0.43) -- 10.40 4.87 66,097 0.70 4.05 0.77 36
2007 10.28 0.46 0.05 (0.46) -- 10.33 5.04 52,606 0.70 4.50 0.77 83
2006 10.40 0.41 (0.12) (0.41) -- 10.28 2.89 35,671 0.70 4.04 0.78 62
2005 10.62 0.31 (0.16) (0.31) (0.06) 10.40 1.42 28,132 0.70 2.98 0.79 58
2004 10.93 0.25 (0.17) (0.25) (0.14) 10.62 0.81 20,901 0.70 2.39 0.81 169
Class N (commenced operations on April 13, 2000)
2009* $10.42 $0.18 $ 0.15 $(0.19) $ -- $10.56 3.14% $ 3,151 0.95% 3.50% 1.02% 14%
2008 10.35 0.40 0.07 (0.40) -- 10.42 4.59 2,761 0.95 3.80 1.02 36
2007 10.30 0.44 0.04 (0.43) -- 10.35 4.77 2,632 0.95 4.25 1.02 83
2006 10.42 0.39 (0.12) (0.39) -- 10.30 2.63 1,782 0.95 3.81 1.03 62
2005 10.64 0.29 (0.17) (0.28) (0.06) 10.42 1.16 554 0.95 2.70 1.04 58
2004 10.95 0.23 (0.17) (0.23) (0.14) 10.64 0.55 436 0.95 2.14 1.06 169
California Tax Exempt Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2009* $10.06 $0.16 $ 0.28 $(0.16) $ -- $10.34 4.41% $34,500 0.50% 3.16% 0.61% 19%
2008 10.24 0.32 (0.18) (0.32) -- 10.06 1.38 34,262 0.50 3.13 0.61 55
2007 10.25 0.31 (0.01) (0.31) -- 10.24 2.98 33,802 0.50 3.04 0.62 43
2006 10.26 0.29 0.03 (0.29) (0.04) 10.25 3.18 26,074 0.50 2.85 0.62 43
2005 10.41 0.28 (0.11) (0.28) (0.04) 10.26 1.65 22,768 0.50 2.70 0.63 54
2004 10.60 0.27 (0.06) (0.27) (0.13) 10.41 2.00 17,789 0.50 2.55 0.65 51
Class N (commenced operations on April 13, 2000)
2009* $10.09 $0.15 $ 0.28 $(0.15) $ -- $10.37 4.27% $ 1,367 0.75% 2.91% 0.86% 19%
2008 10.27 0.30 (0.18) (0.30) -- 10.09 1.12 1,049 0.75 2.87 0.86 55
2007 10.27 0.28 -- (0.28) -- 10.27 2.82 922 0.75 2.78 0.87 43
2006 10.29 0.26 0.02 (0.26) (0.04) 10.27 2.81 1,134 0.75 2.59 0.87 43
2005 10.44 0.25 (0.11) (0.25) (0.04) 10.29 1.39 1,487 0.75 2.43 0.88 54
2004 10.62 0.24 (0.05) (0.24) (0.13) 10.44 1.84 2,439 0.75 2.29 0.90 51
High Yield Bond Fund
Institutional Class (commenced operations on January 14, 2000)
2009* $ 7.40 $0.34 $(1.55) $(0.34) $ -- $ 5.85 (16.26)% $11,303 1.00% 11.32% 1.09% 4%
2008 8.91 0.64 (1.47) (0.68) -- 7.40 (9.83) 13,926 1.00 7.72 1.09 20
2007 8.96 0.70 (0.06) (0.69) -- 8.91 7.27 17,137 1.00 7.73 1.10 26
2006 9.04 0.68 (0.08) (0.68) -- 8.96 6.90 20,887 1.00 7.58 1.10 23
2005 9.31 0.71 (0.27) (0.71) -- 9.04 4.85 22,588 1.00 7.71 1.11 46
2004 8.95 0.72 0.36 (0.72) -- 9.31 12.47 22,860 1.00 7.87 1.14 35
Class N (commenced operations on January 14, 2000)
2009* $ 7.40 $0.33 $(1.55) $(0.33) $ -- $ 5.85 (16.39)% $14,032 1.30% 11.02% 1.39% 4%
2008 8.91 0.62 (1.47) (0.66) -- 7.40 (10.10) 17,521 1.30 7.43 1.39 20
2007 8.96 0.68 (0.07) (0.66) -- 8.91 6.95 20,121 1.30 7.44 1.40 26
2006 9.04 0.65 (0.08) (0.65) -- 8.96 6.58 20,045 1.30 7.28 1.40 23
2005 9.31 0.69 (0.27) (0.69) -- 9.04 4.54 21,028 1.30 7.41 1.41 46
2004 8.95 0.70 0.35 (0.69) -- 9.31 12.14 20,655 1.30 7.56 1.44 355
* FOR THE SIX MONTHS ENDED MARCH 31, 2009.
+ PER SHARE CALCULATIONS ARE BASED ON THE AVERAGE SHARES OUTSTANDING
THROUGHOUT THE PERIOD.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED.THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 61
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2009 (UNAUDITED) AND THE YEAR OR PERIOD ENDED
SEPTEMBER 30,
RATIO
OF EXPENSES
RATIO TO AVERAGE
NET DIVIDENDS NET NET OF NET NET ASSETS
ASSET FROM ASSET ASSETS RATIO INVESTMENT (EXCLUDING
VALUE NET NET VALUE END OF EXPENSES INCOME WAIVERS &
BEGINNING INVESTMENT INVESTMENT END TOTAL OF PERIOD TO AVERAGE TO AVERAGE RECOVERED
OF PERIOD INCOME INCOME OF PERIOD RETURN++ (000) NET ASSETS(1)(2) NET ASSETS(1) FEES)(1)
--------- ---------- ---------- --------- -------- ---------- ----------------- ------------- -----------
Prime Money Market Fund
Institutional Class (commenced operations on March 23, 1998)
2009* $1.00 $0.004 $(0.004) $1.00 0.37% $ 630,709 0.59% 0.71% 0.64%
2008 1.00 0.030 (0.030) 1.00 3.01 532,931 0.58 2.90 0.58
2007 1.00 0.047 (0.047) 1.00 4.85 438,639 0.59 4.74 0.60
2006 1.00 0.041 (0.041) 1.00 4.17 388,171 0.59 4.12 0.60
2005 1.00 0.021 (0.021) 1.00 2.10 332,393 0.60 2.05 0.61
2004 1.00 0.006 (0.006) 1.00 0.58 367,209 0.63 0.59 0.63
Class N (commenced operations on October 18, 1999)
2009* $1.00 $0.003 $(0.003) $1.00 0.28% $ 783,283 0.78% 0.60% 1.14%
2008 1.00 0.027 (0.027) 1.00 2.78 1,123,900 0.80 2.65 1.08
2007 1.00 0.045 (0.045) 1.00 4.62 870,537 0.81 4.52 1.10
2006 1.00 0.039 (0.039) 1.00 3.94 640,366 0.81 3.95 1.10
2005 1.00 0.019 (0.019) 1.00 1.87 312,452 0.82 1.94 1.11
2004 1.00 0.004 (0.004) 1.00 0.36 201,058 0.85 0.35 1.13
Class S (commenced operations on October 26, 1999)
2009* $1.00 $0.002 $(0.002) $1.00 0.21% $ 541,705 0.92% 0.43% 1.14%
2008 1.00 0.025 (0.025) 1.00 2.57 633,815 1.00 2.54 1.08
2007 1.00 0.043 (0.043) 1.00 4.41 620,195 1.01 4.32 1.10
2006 1.00 0.037 (0.037) 1.00 3.73 324,353 1.01 3.74 1.10
2005 1.00 0.017 (0.017) 1.00 1.67 203,502 1.02 1.70 1.11
2004 1.00 0.002 (0.002) 1.00 0.21 115,761 1.00 0.21 1.13
Government Money Market Fund
Institutional Class (commenced operations on April 3, 2000)
2009* $1.00 $0.002 $(0.002) $1.00 0.24% $ 174,859 0.48% 0.42% 0.64%
2008 1.00 0.027 (0.027) 1.00 2.72 100,674 0.59 2.62 0.59
2007 1.00 0.047 (0.047) 1.00 4.77 47,858 0.60 4.67 0.61
2006 1.00 0.040 (0.040) 1.00 4.08 52,782 0.60 4.11 0.61
2005 1.00 0.020 (0.020) 1.00 2.05 32,039 0.61 1.97 0.62
2004 1.00 0.006 (0.006) 1.00 0.57 43,608 0.63 0.56 0.64
Class N (commenced operations on June 21, 1999)
2009* $1.00 $0.002 $(0.002) $1.00 0.17% $2,498,488 0.67% 0.35% 1.14%
2008 1.00 0.025 (0.025) 1.00 2.49 3,006,935 0.81 2.40 1.09
2007 1.00 0.044 (0.044) 1.00 4.54 2,291,138 0.82 4.45 1.11
2006 1.00 0.038 (0.038) 1.00 3.86 1,940,602 0.82 3.78 1.11
2005 1.00 0.018 (0.018) 1.00 1.82 1,895,412 0.83 1.80 1.12
2004 1.00 0.004 (0.004) 1.00 0.35 1,857,676 0.85 0.35 1.14
Class S (commenced operations on October 6, 1999)
2009* $1.00 $0.001 $(0.001) $1.00 0.11% $ 383,388 0.77% 0.23% 1.14%
2008 1.00 0.023 (0.023) 1.00 2.29 408,747 1.02 2.23 1.09
2007 1.00 0.042 (0.042) 1.00 4.33 321,061 1.02 4.24 1.11
2006 1.00 0.036 (0.036) 1.00 3.65 232,083 1.02 3.60 1.11
2005 1.00 0.016 (0.016) 1.00 1.62 227,905 1.03 1.61 1.12
2004 1.00 0.002 (0.002) 1.00 0.20 263,086 1.00 0.21 1.14
California Tax Exempt Money Market Fund
Institutional Class (commenced operations on April 3, 2000)
2009* $1.00 $0.002 $(0.002) $1.00 0.26% $ 214,970 0.40% 0.48% 0.65%
2008 1.00 0.018 (0.018) 1.00 1.80 157,427 0.55 1.69 0.61
2007 1.00 0.030 (0.030) 1.00 3.01 89,237 0.55 2.97 0.62
2006 1.00 0.026 (0.026) 1.00 2.62 85,014 0.55 2.60 0.62
2005 1.00 0.015 (0.015)** 1.00 1.51 73,211 0.55 1.46 0.63
2004 1.00 0.005 (0.005) 1.00 0.52 79,413 0.55 0.51 0.65
Class N (commenced operations on June 21, 1999)
2009* $1.00 $0.002 $(0.002) $1.00 0.20% $ 794,161 0.53% 0.41% 1.15%
2008 1.00 0.016 (0.016) 1.00 1.57 880,794 0.78 1.47 1.11
2007 1.00 0.027 (0.027) 1.00 2.78 695,318 0.78 2.73 1.12
2006 1.00 0.024 (0.024) 1.00 2.39 631,478 0.78 2.36 1.12
2005 1.00 0.013 (0.013)** 1.00 1.28 569,671 0.78 1.25 1.13
2004 1.00 0.003 (0.003) 1.00 0.29 505,029 0.78 0.29 1.15
Class S (commenced operations on November 12, 1999)
2009* $1.00 $0.002 $(0.002) $1.00 0.16% $ 66,704 0.70% 0.40% 1.15%
2008 1.00 0.014 (0.014) 1.00 1.37 141,757 0.98 1.40 1.11
2007 1.00 0.025 (0.025) 1.00 2.57 178,918 0.98 2.55 1.12
2006 1.00 0.022 (0.022) 1.00 2.18 107,131 0.98 2.17 1.12
2005 1.00 0.011 (0.011)** 1.00 1.08 88,182 0.98 1.09 1.13
2004 1.00 0.002 (0.002) 1.00 0.15 33,520 0.91 0.15 1.15
* FOR THE SIX MONTHS ENDED MARCH 31, 2009.
** INCLUDES A REALIZED CAPITAL GAIN DISTRIBUTION OF LESS THAN $0.001.
++ RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED. FEE
WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD
HAVE BEEN LOWER. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A
SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES.
(1) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(2) RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED. THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 62
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
1. ORGANIZATION:
CNI Charter Funds, a Delaware statutory trust (the "Trust"), is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company with 17 portfolios. The financial statements included herein
are those of the Large Cap Value Equity Fund, Large Cap Growth Equity Fund, RCB
Small Cap Value Fund, Opportunistic Value Fund (collectively, the "Equity
Funds"); Corporate Bond Fund, Government Bond Fund, California Tax Exempt Bond
Fund, High Yield Bond Fund (collectively, the "Fixed Income Funds"); Prime Money
Market Fund, Government Money Market Fund, California Tax Exempt Money Market
Fund (collectively, the "Money Market Funds"); and Multi-Asset Fund (each a
"Fund," collectively, the "Funds"). The Equity and Fixed Income Funds and the
Multi-Asset Fund are registered to offer Institutional and Class N Shares; in
addition, the Opportunistic Value Fund is registered to offer Class E Shares and
the RCB Small Cap Value Fund is registered to offer Class R Shares. The Money
Market Funds are registered to offer Institutional, Class N and Class S
Shares. The assets of each Fund are segregated, and a shareholder's interest is
limited to the Fund in which shares are held. The Funds' prospectuses provide
descriptions of each Fund's investment objectives, policies and strategies.
Class N and Institutional Class shares of the Multi-Asset Fund commenced
operations on October 1, 2007.
Class E, Class N and Institutional Class shares of the Opportunistic Value Fund
commenced operations on June 26, 2008.
Effective January 31, 2008, Class A shares of the Funds were redesignated as
Class N shares. There were no changes to the rights, fees or expenses of the
Class A shares or services provided to Class A shareholders in connection with
the change in designation to Class N.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Funds.
USE OF ESTIMATES - The preparation of financial statements in conformity with
accounting principles generally accepted in the U.S. requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION - Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price 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 value; or the security's primary pricing source is not
able or willing to provide a price. When a security is valued in accordance with
the Fair Value Procedures, the Committee will determine the value after taking
into consideration relevant information reasonably available to the Committee.
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 the Funds 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 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
CNI CHARTER FUNDS | PAGE 63
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
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
- -------------------------- ------- ---------- ------- ----------
Large Cap Value Equity $69,391 $ -- $-- $ 69,391
Large Cap Growth Equity 29,632 -- -- 29,632
RCB Small Cap Value 14,849 474 -- 15,323
Opportunistic Value 19,078 -- -- 19,078
Multi-Asset 18,049 3,600 -- 21,649
Corporate Bond 2,690 69,677 -- 72,367
Government Bond 887 72,766 -- 73,653
California Tax Exempt Bond 212 34,074 -- 34,286
High Yield Bond 258 24,250 97 24,605
Prime Money Market 1,320 1,954,475 -- 1,955,795
Government Money Market -- 3,054,795 -- 3,054,795
California Tax Exempt
Money Market -- 1,084,734 -- 1,084,734
The following is a reconciliation of investments in which significant
unobservable inputs (Level 3) were used in determining value:
Beginning Change in Net Ending
Balance as of unrealized realized Balance as of
10/1/08 depreciation gain 3/31/09
------------- ------------ -------- -------------
High Yield Bond $154 $(65) $8 $97
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, except for the Money Market
funds which use a straight line basis.
REPURCHASE AGREEMENTS - Securities pledged as collateral for repurchase
agreements are held by each Fund's custodian bank until maturity of the
repurchase agreements. Provisions of the agreements and procedures adopted by
the investment adviser require that the market value of the collateral,
including accrued interest thereon, is sufficient in the event of default by the
counterparty. The Funds also invest in tri-party repurchase agreements.
Securities held as collateral for tri-party repurchase agreements are maintained
by the broker's custodian bank in a segregated account until maturity of the
repurchase agreement. Provisions of the agreements require that the market value
of the collateral, including accrued interest thereon, is sufficient in the
event of default. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters into an insolvency proceeding,
realization of the collateral by the Fund may be delayed or limited.
TBA TRANSACTIONS - The Funds may engage in "to be announced" ("TBA") security
transactions. Such transactions involve a commitment by the Funds to purchase or
sell securities for a predetermined price or yield, with payment and delivery
taking place beyond the customary settlement period. The Funds record TBA
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payments for the securities
purchased.
EXPENSE ALLOCATION - Common expenses incurred by the Funds are allocated among
the Funds (i) based upon relative average daily net assets, (ii) as incurred on
a specific identification basis, or (iii) equally among the Funds, depending on
the nature of the expenditure.
CLASSES - Class-specific expenses are borne by that class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective class on the basis of relative net asset value each day.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends from net investment
income are declared daily and paid to shareholders monthly for the Fixed Income
and Money Market Funds. Dividends from net investment income are declared and
paid quarterly for the Large Cap Value Equity, Large Cap Growth Equity,
Opportunistic Value and Multi-Asset Funds. For the RCB Small Cap Value Fund,
dividends from net investment income are declared and paid annually.
Distributions from net realized capital gains are distributed to shareholders at
least annually.
CNI CHARTER FUNDS | PAGE 64
DEFERRED OFFERING COSTS - All offering costs incurred with the start up of a
Fund are being amortized on a straight line basis over a period of twelve months
from commencement of operations. As of March 31, 2009, the remaining amount
still to be amortized for the Opportunistic Value Fund was $8,382.
3. ADMINISTRATION,TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES
AGREEMENTS:
Pursuant to an administration agreement dated April 1, 1999, as amended April 1,
2008, (the "Agreement"), SEI Investments Global Funds Services (the
"Administrator"), a wholly owned subsidiary of SEI Investments Company, acts as
the Trust's administrator. Under the terms of the Agreement, 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 daily net
assets of the Trust exceeding $7.5 billion. Each Fund is subject to a minimum
annual fee of $90,000, which may be reduced at the sole discretion of the
Administrator.
The Trust has adopted a Rule 12b-1 Distribution Plan ("the Plan") with respect
to Class N, Class S and Class R Shares that allows each Fund to pay distribution
and servicing fees. SEI Investments Distribution Co. (the "Distributor")
receives a distribution fee, computed daily and paid monthly, at the annual rate
of 0.50% of the average daily net assets of the Class N Shares and Class S
Shares of the Money Market Funds and 0.25% of the Class N Shares of the Equity
Funds, Fixed Income Funds and the Multi-Asset Fund and the Class R Shares of the
RCB Small Cap Value Fund, with the exception of 0.30% charged to the Class N
Shares of the High Yield Bond Fund, which may be used by the Distributor to
provide compensation for sales support and distribution-related activities.
The Trust and the Distributor are parties to a distribution agreement dated
April 1, 1999.
SEI Institutional Transfer Agency, a division of SEI Investments Fund 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 agreed to waive these fees.The Class R shares of the RCB Small Cap
Value Fund began paying the sub-transfer agent, Citigroup Fund Services, LLC,
fees commencing February 1, 2008.
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 Trust or
which securities are to be purchased or sold by the Trust.
The Trust has entered into Shareholder Servicing Agreements that permit payment
of compensation to City National Bank ("CNB") and its affiliates, which provide
certain shareholder support for their customers who own Institutional Class,
Class N, Class S or Class R Shares. In consideration for such services, a
shareholder servicing fee is charged at the annual rate of up to 0.25% of each
Fund's average daily net assets. CNB has agreed to voluntarily waive portions of
its shareholder servicing fees with respect to certain Funds. For the six months
ended March 31, 2009, CNB received Shareholder Servicing fees from the Trust in
the amount of $9,100,777.
Certain officers of the Trust are also officers of City National Asset
Management, Inc. ("CNAM, Inc." or the "Adviser") or the Administrator. Such
officers are paid no fees by the Trust for serving as officers of the Trust.
4. INVESTMENT A DVISORY FEES AND OTHER AGREEMENTS:
CNAM, Inc., a wholly owned subsidiary of CNB, serves as the investment manager
for the Funds. Under the terms of the current agreement, the Adviser receives an
annual fee equal to 0.62% of the average daily net assets of the Large Cap Value
Equity Fund, 0.65% of the average daily net assets of the Large Cap Growth
Equity Fund, 0.85% of the average net assets of the RCB Small Cap Value Fund,
0.50% of the average daily net assets of the Opportunistic Value Fund, 0.50% of
the average daily net assets of the Multi-Asset Fund, 0.40% of the average daily
net assets of the Corporate Bond Fund, 0.43% of the average daily net assets of
the Government Bond Fund, 0.27% of the average daily net assets of the
California Tax Exempt Bond Fund, 0.75% of the average daily net assets of the
High Yield Bond Fund, 0.25% of the average daily net assets of the Prime Money
Market Fund, 0.26% of the average daily net assets of the Government Money
Market Fund, and 0.27% of the average daily net assets of the California Tax
Exempt Money Market Fund.
REED, CONNER & BIRDWELL, LLC acts as the investment sub-adviser with respect to
the RCB Small Cap Value Fund.
HALBIS CAPITAL MANAGEMENT (USA), INC. acts as the investment sub-adviser with
respect to the High Yield Bond Fund. Effective April 15, 2009, Guggenheim
Investment Management, LLC replaced Halbis as the investment sub-adviser to the
Fund.
SKBA CAPITAL MANAGEMENT, LLC acts as the investment sub-adviser with respect to
the Opportunistic Value Fund.
Sub-adviser fees are paid by the Adviser.
CNI CHARTER FUNDS | PAGE 65
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
The Adviser has voluntarily agreed to limit its fees or reimburse expenses to
the extent necessary to keep operating expenses at or below certain percentages
of the Funds' respective average daily net assets. In the case of the RCB Small
Cap Value Fund and the Opportunistic Value Fund, the Fund's sub-adviser has
contractually agreed to limit its fees or reimburse expenses to meet the expense
limitations. The expense limitations (expressed as percentages of average daily
net assets) are as follows:
Large Cap Large Cap RCB
Value Growth Small Cap Opportunistic
Equity Equity Value Value
Fund Fund Fund Fund
--------- --------- --------- -------------
Institutional Class 1.00% 1.05% 1.24% 1.00%
Class N 1.25% 1.30% 1.49% 1.25%
Class E -- -- -- 0.75%
Class R -- -- 1.49% --
California
Multi- Corporate Government Tax Exempt
Asset Bond Bond Bond
Fund Fund Fund Fund
------ --------- ---------- ----------
Institutional Class 1.75% 0.75% 0.70% 0.50%
Class N 2.00% 1.00% 0.95% 0.75%
California
High Yield Prime Government Tax Exempt
Bond Money Market Money Market Money Market
Fund Fund Fund Fund
---------- ------------ ------------ ------------
Institutional Class 1.00% 0.63% 0.63% 0.55%
Class N 1.30% 0.85% 0.85% 0.78%
Class S -- 1.05% 1.05% 0.98%
Any fee reductions or expense reimbursements may be repaid to the Adviser (or
relevant sub-adviser, as applicable) within three years after occurrence,
subject to certain restrictions and only if such repayments do not cause the
Funds' expense ratios, at the time of repayment, to exceed the amounts shown in
the preceding table.
As of March 31, 2009, fees which were previously waived by the Adviser (or
relevant sub-adviser, as applicable) which may be subject to possible future
reimbursement to the Adviser (or relevant sub-adviser, as applicable) were as
follows:
Potential Amount of
Fund Recovery (000) Expiration
- ---- ------------------- ----------
Opportunistic Value $ 1 2011
Government Bond 13 2009
31 2010
39 2011
21 2012
California Tax Exempt Bond 15 2009
34 2010
34 2011
17 2012
High Yield Bond 19 2009
35 2010
29 2011
11 2012
Government Money Market 329 2012
California Tax Exempt 276 2009
Money Market 494 2010
583 2011
569 2012
5. INVESTMENT TRANSACTIONS:
The cost of security purchases and proceeds from the sale and maturities of
securities, other than temporary investments in short-term securities for the
six months ended March 31, 2009, were as follows for the Equity Funds,
Multi-Asset Fund and Fixed Income Funds:
Purchases Sales & Maturities
------------------- --------------------
U.S. Gov't Other U.S. Gov't Other
Fund (000) (000) (000) (000)
- ---- ---------- ------ ---------- -------
Large Cap Value Equity $ -- $6,742 $ -- $ 6,958
Large Cap Growth Equity -- 1,938 -- 4,221
RCB Small Cap Value -- 5,442 -- 7,708
Opportunistic Value -- 25,773 -- 38,037
Multi-Asset -- 6,066 2,145 10,265
Corporate Bond 545 14,384 1,145 3,521
Government Bond 13,219 2,164 9,513 --
California Tax Exempt Bond -- 6,143 -- 7,128
High Yield Bond -- 1,275 -- 1,037
6. FEDERAL TAX INFORMATION:
It is each Fund's intention to continue to qualify as a regulated investment
company for Federal income tax purposes and distribute all of its taxable income
and net capital gains. Accordingly, no provisions for Federal income taxes are
required.
Management has analyzed the Funds' tax position taken on federal income tax
returns for all open tax years and has concluded that as of March 31, 2009, 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.
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned. The Funds accrue
such taxes when the related income is earned.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with Federal tax
regulations, which may differ from accounting principles generally accepted in
the United States of America. As a result, net investment income (loss) and net
realized gain (loss) on investment transactions for a reporting period may
differ significantly from distributions during such period. These book/tax
differences may be temporary or permanent. To the extent these differences are
permanent in nature, they are charged or credited to undistributed net
investment income (loss), accumulated net realized gain (loss), or paid-in
capital, as appropriate, in the period that the differences arise.
CNI CHARTER FUNDS | PAGE 66
Accordingly, the following permanent difference, primarily attributable to REIT
adjustments, corporate action adjustments, the realized gains (losses) on
paydowns and the timing of distributions, were reclassified to/from the
following accounts as of September 30, 2008:
Increase Increase
(Decrease) (Decrease)
Undistributed Accumulated
Net Investment Net Realized
Income (Loss) Gain (Loss)
Fund (000) (000)
- ---- -------------- ------------
Large Cap Value Equity $(123) $123
Large Cap Growth Equity 1 (1)
RCB Small Cap Value 72 (72)
Corporate Bond (3) 3
Government Bond 11 (11)
These reclassifications had no effect on net assets or net asset value per
share.
The tax character of dividends and distributions declared during the years ended
September 30, 2008 and September 30, 2007 are shown below:
Tax
Exempt Ordinary Long-term
Income Income Capital Gain Total
Fund (000) (000) (000) (000)
- ---- ------- -------- ------------ --------
Large Cap Value Equity
2008 $ -- $ 1,827 $5,489 $ 7,316
2007 -- 2,039 5,502 7,541
Large Cap Growth Equity
2008 -- 152 -- 152
2007 -- 246 -- 246
RCB Small Cap Value
2008 $ -- $ 3,067 $6,538 $ 9,605
2007 -- 2 1,108 1,110
Opportunistic Value
2008 -- -- -- --
Multi-Asset
2008 -- 473 -- 473
Corporate Bond
2008 -- 2,888 -- 2,888
2007 -- 2,595 -- 2,595
Government Bond
2008 -- 2,639 -- 2,639
2007 -- 2,072 -- 2,072
California Tax Exempt Bond
2008 1,063 -- -- 1,063
2007 950 1 -- 951
High Yield Bond
2008 -- 2,806 -- 2,806
2007 -- 2,880 -- 2,880
Prime Money Market
2008 -- 61,899 -- 61,899
2007 -- 73,650 -- 73,650
Government Money Market
2008 -- 73,655 -- 73,655
2007 -- 106,396 -- 106,396
California Tax Exempt
Money Market
2008 17,064 11 -- 17,075
2007 22,975 -- -- 22,975
As of September 30, 2008, the components of Distributable Earnings/(Accumulated
Losses) on a tax basis were as follows:
Total
Distributable
Undistributed Undistributed Capital Unrealized Other Earnings
Tax-Exempt Ordinary Loss Post-October Appreciation Temporary (Accumulated
Income Income Carryforwards Losses (Depreciation) Differences Losses)
Fund (000) (000) (000) (000) (000) (000) (000)
- ---- ------------- ------------- ------------- ------------ -------------- ----------- -------------
Large Cap Value Equity $ -- $ 330 $ -- $(1,918) $(1,192) $ (457) $(3,237)
Large Cap Growth Equity -- 46 (2,153) -- 786 (36) (1,357)
RCB Small Cap Value -- 439 -- (635) (6,866) -- (7,062)
Opportunistic Value -- 174 -- (725) (5,103) -- (5,654)
Multi-Asset -- 182 -- (362) (2,832) (181) (3,193)
Corporate Bond -- 243 (451) (90) (3,185) (243) (3,726)
Government Bond -- 215 (535) -- 430 (216) (106)
California Tax Exempt
Bond 93 -- (42) (52) (482) (93) (576)
High Yield Bond -- 283 (789) (563) (6,497) (228) (7,794)
Prime Money Market -- 3,639 -- -- -- (3,553) 86
Government Money Market -- 3,846 -- -- -- (3,831) 15
California Tax Exempt
Money Market 2,581 -- -- -- -- (2,578) 3
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 is as follows:
Expiring September 30,
-------------------------------------------------------------
2010 2011 2012 2013 2014 2015 2016
Fund (000) (000) (000) (000) (000) (000) (000) Total
- ---- ----- ----- ----- ----- ----- ----- ----- -----
Large Cap Growth Equity 82 1,844 227 -- -- -- -- 2,153
Corporate Bond -- -- -- -- 64 271 116 451
Government Bond -- -- -- -- 59 374 102 535
California Tax Exempt Bond -- -- -- -- -- 35 7 42
High Yield Bond -- 521 -- -- 268 -- -- 789
CNI CHARTER FUNDS | PAGE 67
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
During the year ended September 30, 2008, the following Funds had utilized
capital loss carryforwards to offset capital gains amounting to:
Amount
Fund (000)
- ---- ------
Large Cap Growth Equity $224
High Yield Bond 37
Prime Money Market 210
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.
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
Equity and Fixed Income Funds and Multi-Asset Fund were as follows:
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
Fund (000) (000) (000) (000)
- ---- --------- ------------ ------------ --------------
Large Cap Value Equity $96,644 $2,093 $(29,346) $(27,253)
Large Cap Growth Equity 37,920 1,985 (10,273) (8,288)
RCB Small Cap Value 23,370 2,045 (10,092) (8,047)
Opportunistic Value 18,169 1,594 (685) 909
Multi-Asset 24,049 33 (2,433) (2,400)
Corporate Bond 74,249 1,023 (2,905) (1,882)
Government Bond 72,287 1,411 (45) 1,366
California Tax Exempt Bond 33,716 788 (218) 570
High Yield Bond 36,044 65 (11,504) (11,439)
At March 31, 2009, the Money Market Funds' cost of securities for Federal income
tax purposes approximates the cost disclosed in the Schedule of Investments.
7. CONCENTRATION OF CREDIT RISK
In the normal course of business, the Funds enter into contracts that provide
general indemnifications.The Funds' maximum exposure under these arrangements is
dependent on future claims that may be made against the Funds and, therefore,
cannot be established; however, based on experience, the risk of loss from such
claim is considered remote.
The Multi-Asset Fund may invest in exchange-traded notes ("ETNs") as a
non-principal investment strategy. ETNs are unsecured debt obligations of
investment banks which are traded on exchanges and the returns of which are
linked to the performance of market indexes. In addition to trading ETNs on
exchanges, investors may redeem ETNs directly with the issuer on a weekly basis,
typically in a minimum amount of 50,000 units, or hold the ETNs until maturity.
ETNs are riskier than ordinary unsecured debt securities and have no principal
protection. The Fund will generally invest in ETNs which are linked to
commodities indexes. The Fund's investment in an ETN may be influenced by many
unpredictable factors, including highly volatile commodities prices, changes in
supply and demand relationships, weather, agriculture, trade, changes in
interest rates, and monetary and other governmental policies, action and
inaction. Investing in ETNs is not equivalent to investing directly in index
components or the relevant index itself. Because ETNs are debt securities, they
possess credit risk; if the issuer has financial difficulties or goes bankrupt,
the investor may not receive the return it was promised.
CALIFORNIA TAX EXEMPT FUNDS - SPECIFIC RISKS
The ability of issuers to pay interest on, and repay principal of, California
municipal securities may be affected by economic and political developments in
the State of California.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
CNI CHARTER FUNDS | PAGE 68
8. CAPITAL SHARES ISSUED AND REDEEMED:
Capital share activity for the six months ended March 31, 2009 (unaudited) and
the year ended September 30, 2008 were as follows:
Large Cap Value Large Cap Growth RCB Small Cap Opportunistic
Equity Fund (000) Equity Fund (000) Value Fund (000) Value Fund (000)
----------------- ----------------- ----------------- ----------------
2009 2008 2009 2008 2009 2008 2009 2008
------- ------- ------- ------- ------- ------- ------- ------
CAPITAL SHARES ISSUED
AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 1,854 2,441 541 638 15 43 -- --
Shares Issued in Lieu of
Dividends and Distributions 88 469 5 6 2 55 -- --
------ ------ ------ ------ ------ ------ ------ ------
Shares Redeemed (1,504) (2,015) (707) (1,601) (9) (286) -- --
Net Institutional
Class Transactions 438 895 (161) (957) 8 (188) -- --
====== ====== ====== ====== ====== ====== ====== ======
CLASS N:
Shares Issued 41 66 39 107 -- 4 -- 1(1)
Shares Issued in Lieu of
Dividends and Distributions 9 66 3 1 4 55 -- --
Shares Redeemed (176) (246) (221) (274) (26) (116) -- --
------ ------ ------ ------ ------ ------ ------ ------
Net Class N Transactions (126) (114) (179) (166) (22) (57) -- 1
====== ====== ====== ====== ====== ====== ====== ======
CLASS R:
Shares Issued -- -- -- -- 65 264 -- --
Shares Issued in Lieu of
Dividends and Distributions -- -- -- -- 28 280 -- --
Shares Redeemed -- -- -- -- (252) (704) -- --
------ ------ ------ ------ ------ ------ ------ ------
Net Class R Transactions -- -- -- -- (159) (160) -- --
====== ====== ====== ====== ====== ====== ====== ======
CLASS E:
Shares Issued -- -- -- -- -- -- 3,744 4,863(1)
Reinvestment of cash distributions -- -- -- 65 --
Shares Redeemed -- -- -- -- -- -- (4,671) --
------ ------ ------ ------ ------ ------ ------ ------
Net Class E Transactions -- -- -- -- -- -- (862) 4,863
====== ====== ====== ====== ====== ====== ====== ======
(1) INCLUDES SUBSCRIPTIONS AS A RESULT OF IN-KIND TRANSFERS OF SECURITIES (SEE
NOTE 9).
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
CNI CHARTER FUNDS | PAGE 69
notes to financial statements
MARCH 31, 2009 (UNAUDITED)
8. CAPITAL SHARES ISSUED AND REDEEMED (CONTINUED):
California
Multi-Asset Corporate Bond Government Bond Tax Exempt Bond
Fund (000) Fund (000) Fund (000) Fund (000)
------------ -------------- --------------- ---------------
2009 2008 2009 2008 2009 2008 2009 2008
---- ----- ---- ------- ----- ------- ---- -----
CAPITAL SHARES ISSUED
AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 277 1,269 854 2,342 1,008 2,308 467 1,027
Shares Issued in Lieu of
Dividends and
Distributions 5 5 31 59 34 67 18 36
Shares Redeemed (546) (167) (820) (1,372) (690) (1,109) (555) (958)
Net Institutional ---- ----- ---- ------- ----- ------- ---- -----
Class Transactions (264) 1,107 65 1,029 352 1,266 (70) 105
==== ===== ==== ====== ===== ====== ==== =====
CLASS N:
Shares Issued 177 1,916 10 4 49 74 43 76
Shares Issued in Lieu of
Dividends and
Distributions 7 11 1 2 2 4 -- --
Shares Redeemed (232) (204) (9) (46) (17) (67) (15) (62)
---- ----- ---- ------ ----- ------ ---- -----
Net Class N Transactions (48) 1,723 2 (40) 34 11 28 14
==== ===== ==== ====== ===== ====== ==== =====
California
High-Yield Prime Government Tax Exempt
Bond Money Market Money Market Money Market
Fund (000) Fund (000) Fund (000) Fund (000)
----------- ----------------------- ----------------------- ---------------------
2009 2008 2009 2008 2009 2008 2009 2008
---- ---- ---------- ---------- ---------- ---------- -------- ----------
CAPITAL SHARES ISSUED
AND REDEEMED:
INSTITUTIONAL CLASS:
Shares Issued 82 142 749,576 1,704,267 388,506 553,021 622,939 1,830,572
Shares Issued in Lieu of
Dividends and
Distributions 66 104 357 2,772 7 3 -- --
Shares Redeemed (97) (288) (652,183) (1,612,805) (314,328) (500,209) (565,396) (1,762,382)
Net Institutional ---- ---- ---------- ---------- ---------- ---------- -------- ----------
Class Transactions 51 (42) 97,750 94,234 74,185 52,815 57,543 68,190
==== ==== ========== ========== ========== ========== ======== ==========
CLASS N:
Shares Issued 45 193 1,349,784 3,333,223 2,374,113 6,290,498 889,206 2,477,610
Shares Issued in Lieu of
Dividends and
Distributions 88 121 1,344 13,996 3,744 43,391 1,613 9,947
Shares Redeemed (101) (205) (1,691,799) (3,093,998) (2,886,302) (5,618,090) (977,450) (2,302,084)
Net Class N Transactions ---- ---- ---------- ---------- ---------- ---------- -------- ----------
32 109 (340,671) 253,221 (508,445) 715,799 (86,631) 185,473
==== ==== ========== ========== ========== ========== ======== ==========
CLASS S:
Shares Issued -- -- 725,778 1,657,732 381,028 801,055 166,853 409,458
Shares Redeemed -- -- (817,919) (1,644,197) (406,386) (713,370) (241,906) (446,618)
---- ---- ---------- ---------- ---------- ---------- -------- ----------
Net Class S Transactions -- -- (92,141) 13,535 (25,358) 87,685 (75,053) (37,160)
==== ==== ========== ========== ========== ========== ======== ==========
AMOUNTS DESIGNATED AS "--" ARE EITHER 0 OR HAVE BEEN ROUNDED TO 0.
CNI CHARTER FUNDS | PAGE 70
9. IN-KIND TRANSACTIONS
During the year ended September 30, 2008, the Opportunistic Value Fund issued
shares of beneficial interest in exchange for securities. The securities were
transferred at their current value on June 26, 2008 as follows:
Shares Value
Issued ($ Thousands)
- ------- -------------
579,800 $5,979
10. TREASURY GUARANTEE PROGRAM
The CNI Charter Funds Board of Trustees approved the participation by the Prime
Money Market Fund, Government Money Market Fund and California Money Market Fund
(each, a "Fund," and collectively, the "Funds") in the U.S. Department of the
Treasury's Temporary Guarantee Program for Money Market Funds (the "Program")
for the initial term of the Program, which ended December 18, 2008, and the
first extended term of the Program, which ended April 30, 2009. After
considering the costs and benefits of continued participation in the Program,
the Board of Trustees determined that the Prime Money Market Fund and California
Tax Exempt Money Market Fund should continue to participate in the second
extended term of the Program, which ends September 18, 2009, but that the
Government Money Market Fund should not, since that Fund invests primarily in
government securities that are guaranteed by the U.S. Government. The Program
insures shares held by money market fund investors as of the close of business
on September 19, 2008 against loss in the event that a money market fund
liquidates its holdings and shareholders receive less than $1.00 per share. The
guarantee is triggered if the money market fund's net asset value per share
falls below $0.995. Participation by a Fund in the Program does not reflect a
decision by the Fund to liquidate, and the Trust, in consultation with the
Funds' investment adviser, City National Asset Management, Inc., views the
liquidation of each Fund as unlikely.
The current term of the Program covers shareholders of the Prime Money Market
Fund and California Tax Exempt Money Market Fund for amounts they held in the
respective Fund as of the close of business on September 19, 2008. New accounts
opened since September 19, 2008 and any increase in the number of shares held by
a shareholder after the close of business on September 19, 2008 will not be
guaranteed. If shares held by a shareholder as of the close of business on
September 19, 2008 are sold before the guarantee is called upon, then the
guarantee will only cover the lesser of the number of shares held by that
shareholder as of September 19, 2008, or the number of shares held by that
shareholder on the date the guarantee is called upon. If a shareholder closes
its account after September 19, 2008, new investments by that shareholder in the
Fund will not be guaranteed. Guarantee payments under the Program will not
exceed the amount available to all participating money market funds within the
U.S. Department of the Treasury's Exchange Stabilization Fund ("ESF") on the
date of payment. Currently, ESF assets are approximately $50 billion.
The Program is designed to address temporary dislocations in the credit markets.
The current term of the Program will operate through September 18, 2009.
Participation in the initial term and first extended term of the Program
required payments to the U.S. Department of the Treasury in the amount of 0.01%
and 0.015%, respectively, of the net asset value of each of Fund as of September
19, 2008. Participation in the current term of the Program required a payment to
the U.S. Department of the Treasury in the amount of 0.015% of the net asset
value of each of the Prime Money Market Fund and California Tax Exempt Money
Market Fund as of September 19, 2008. These expenses were borne by each Fund and
are not be subject to any expense limitation currently in effect. Additional
information about the Program is available on the U.S. Department of the
Treasury's website at www.ustreas.gov.
CNI CHARTER FUNDS | PAGE 71
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*
--------- --------- ---------- --------
LARGE CAP VALUE FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 680.50 0.95% $3.98
Class N 1,000.00 679.30 1.20 5.02
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,020.19 0.95% $4.78
Class N 1,000.00 1,018.95 1.20 6.04
LARGE CAP GROWTH FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 752.60 0.98% $4.28
Class N 1,000.00 750.60 1.23 5.37
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
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
--------- --------- ---------- --------
RCB SMALL CAP VALUE FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 680.90 1.19% $4.99
Class N 1,000.00 679.80 1.44 6.03
Class R 1,000.00 682.80 0.69 2.89
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.00 1.19% $5.99
Class N 1,000.00 1,017.75 1.44 7.24
Class R 1,000.00 1,021.49 0.69 3.48
OPPORTUNISTIC VALUE FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 684.80 1.04% $4.37
Class N 1,000.00 683.00 1.30 5.45
Class E 1,000.00 678.70 0.68 2.85
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.75 1.04% $5.24
Class N 1,000.00 1,018.45 1.30 6.54
Class E 1,000.00 1,021.54 0.68 3.43
* 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 one-half year period).
CNI CHARTER FUNDS | PAGE 72
disclosure of fund expenses (UNAUDITED) (CONTINUED)
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
--------- --------- ---------- --------
MULTI-ASSET FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 896.40 0.83% $3.92
Class N 1,000.00 896.20 1.08 5.11
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,020.79 0.83% $4.18
Class N 1,000.00 1,019.55 1.08 5.44
CORPORATE BOND FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,039.60 0.73% $3.71
Class N 1,000.00 1,038.20 0.98 4.98
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.29 0.73% $3.68
Class N 1,000.00 1,020.04 0.98 4.94
GOVERNMENT BOND FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,031.80 0.70% $3.55
Class N 1,000.00 1,031.40 0.95 4.81
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
CALIFORNIA TAX-EXEMPT BOND FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,044.10 0.50% $2.55
Class N 1,000.00 1,042.70 0.75 3.82
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,022.44 0.50% $2.52
Class N 1,000.00 1,021.19 0.75 3.78
HIGH YIELD BOND FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 837.40 1.00% $4.58
Class N 1,000.00 836.10 1.30 5.95
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,019.95 1.00% $5.04
Class N 1,000.00 1,018.45 1.30 6.54
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
--------- --------- ---------- --------
PRIME MONEY MARKET FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,003.70 0.59% $2.95
Class N 1,000.00 1,002.80 0.78 3.89
Class S 1,000.00 1,002.10 0.92 4.59
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.99 0.59% $2.97
Class N 1,000.00 1,021.04 0.78 3.93
Class S 1,000.00 1,020.34 0.92 4.63
GOVERNMENT MONEY MARKET FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,002.40 0.48% $2.40
Class N 1,000.00 1,001.70 0.67 3.34
Class S 1,000.00 1,001.10 0.77 3.84
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,022.54 0.48% $2.42
Class N 1,000.00 1,021.59 0.67 3.38
Class S 1,000.00 1,021.09 0.77 3.88
CALIFORNIA TAX EXEMPT MONEY MARKET FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,002.60 0.40% $2.00
Class N 1,000.00 1,002.00 0.53 2.65
Class S 1,000.00 1,001.60 0.70 3.49
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,022.94 0.40% $2.02
Class N 1,000.00 1,022.29 0.53 2.67
Class S 1,000.00 1,021.44 0.70 3.53
* 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 one-half year period).
CNI CHARTER FUNDS | PAGE 73
board approval of sub-advisory agreement (UNAUDITED)
The Board of Trustees (the "Board") of CNI Charter Funds (the "Trust") is
comprised of five Trustees, four of whom are independent of the Trust's
investment advisers and sub-advisers (the "Independent Trustees"). During the
six months ended March 31, 2009, the Board and the Independent Trustees approved
a new sub-advisory agreement (the "Agreement") between City National Asset
Management, Inc. ("CNAM") and Guggenheim Investment Management, LLC
("Guggenheim") with respect to the High Yield Bond Fund. Richard J. Lindquist,
CFA, the portfolio manager for the Fund, joined Guggenheim from Halbis Capital
Management (USA), Inc. ("Halbis"), the Fund's prior sub-adviser, on April 15,
2009. Effective that day, Guggenheim replaced Halbis as the sub-adviser to the
Fund.
The following information summarizes the Board's considerations associated with
its review of the Agreement. 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 Guggenheim. In considering these
matters, the Independent Trustees discussed the approval of the Agreement with
management and in private sessions with counsel at which no representatives of
CNAM or Guggenheim were present.
The Board reviewed extensive materials regarding the investment results of the
Funds, advisory fee comparisons, financial and profitability information
provided by Guggenheim, descriptions of various functions such as compliance
monitoring and portfolio trading practices, and personnel who would be providing
investment management and administrative services to the Fund.
In deciding to approve the Agreement, the Board and the Independent Trustees did
not identify a single factor as controlling and this summary does not describe
all of the matters considered. However, the Board and the Independent Trustees
concluded that each of the various factors referred to below favored such
approval.
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services to be provided by Guggenheim, the Board considered a
variety of matters, including the background, education and experience of
Guggenheim'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 Fund; and the overall
general quality and depth of its organization. The Board also reviewed
Guggenheim's investment philosophy and processes as well as its brokerage and
trading practices.
INVESTMENT PERFORMANCE
The Board assessed the performance of the Fund compared with the Fund's
benchmark and the average of all funds in its peer group category selected by
Lipper, Inc. for one-year, three-year, five-year and since-inception periods
ended February 28, 2009. The Board noted that the returns for the Fund were
above the average returns of the Lipper High Current Yield Funds category and
below the returns of the Citigroup High Yield Market Capped Index for the
three-year, five-year and since-inception periods, and below those measures for
the one-year period.
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the sub-advisory fees to be charged by
Guggenheim and observed that its fees were below its standard fees for its high
yield strategy. The Board also noted that Guggenheim does not currently manage
any other mutual fund accounts with similar mandates to that of the Fund. The
Board observed that the asset levels of the Fund were relatively small and were
not currently likely to lead to significant economies of scale.
The Board also considered the information prepared by Guggenheim relating to its
costs and profits, as well as the benefits to be received by Guggenheim as a
result of its relationship with the Fund, including Guggenheim'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 Guggenheim to the Fund and its shareholders.
CNI CHARTER FUNDS | PAGE 74
notes
notes
THANK YOU
for your investment with CNI Charter Funds. We value the trust you have placed
in us to help you achieve your financial goals.
For more information on CNI Charter Funds, including charges and expenses,
please call 1-888-889-0799 for a free prospectus. Read it carefully before you
invest or send money.
(CNI CHARTER FUNDS(SM) LOGO)
cnicharterfunds.com CNI -SA- 004-0100
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 of the period
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