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)
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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: SEPTEMBER 30, 2009
ITEM 1. REPORTS TO STOCKHOLDERS.
(American Hospital Association LOGO)
AHA INVESTMENT FUNDS(TM)
A SERIES OF THE CNI CHARTER FUNDS
(GRAPHIC)
2009 ANNUAL REPORT
SEPTEMBER 30, 2009
AHA Limited Maturity Fixed Income Fund
AHA Full Maturity Fixed Income Fund
AHA Balanced Fund
AHA Diversified Equity Fund
AHA Socially Responsible Equity Fund
CCM Advisors, LLC is the AHA-sponsored investment
advisor for the AHA Investment Program
(GRAPHIC)
This report and the financial statements contained herein are provided for the
general information of the shareholders of the CNI Charter Funds. This report is
not authorized for distribution to prospective investors in the CNI Charter
Funds unless preceded or accompanied by an effective prospectus. Please remember
that past performance is no guarantee of future results.
Shares of CNI Charter Funds are not deposits or obligations of any bank, are not
guaranteed by any bank, are not insured by the FDIC or any other agency and
involve investment risks, including the possible loss of the principal amount
invested.
TABLE OF CONTENTS
Annual Report
AHA Investment Funds
Series of CNI Charter Funds
2 Letter to Our Shareholders
6 Fund Overview
11 Schedules of Investments
34 Statements of Assets and Liabilities
36 Statements of Operations
38 Statements of Changes in Net Assets
40 Financial Highlights
42 Notes to Financial Statements
48 Report of Independent Registered Public Accounting Firm
49 Trustees and Officers
52 Notice to Shareholders
53 Disclosure of Fund Expenses
54 Approval of Sub-Advisory Agreements
AVAILABILITY OF PROXY VOTING INFORMATION
A description of the policies and procedures that the Funds use to determine how
to vote proxies related to the Funds' portfolio securities, and information on
how the Funds voted proxies relating to portfolio securities during the most
recent 12-month period ending June 30 is available (1) without charge, upon
request by calling 1-800-445-1341, (2) on the CNI Charter Funds' website at
www.cnicharterfunds.com, and (3) on the Securities and Exchange Commission's
website at www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE
The Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission for the first and third quarters of each
fiscal year on Form N-Q within sixty days after the end of the period. The
Funds' Form N-Q is available on the Commission's website at http://www.sec.gov
and may be reviewed and copied at the Commission's Public Reference Room in
Washington, DC. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330. The most current Form N-Q is also available
on the CNI Charter Funds' website at www.cnicharterfunds.com and without charge,
upon request by calling 1-800-445-1341.
AHA INVESTMENT FUNDS | PAGE 1
letter to our shareholders
SEPTEMBER 30, 2009
Dear Shareholder,
Please find enclosed the annual report for the AHA Investment Funds, series of
the CNI Charter Funds (the "AHA Funds"), dated September 30, 2009. This letter
will summarize results for the AHA Funds and our activities for the past twelve
months. The CNI Charter Funds have $6 billion in assets under management and are
affiliated with City National Corporation, an independent bank holding company
in California. City National Corporation is traded on the New York Stock
Exchange as ticker CYN.
CCM Advisors ("CCMA"), the advisor to the AHA Funds, has a long-term
relationship with the American Hospital Association as the AHA-sponsored
investment advisor to the AHA Investment Program. As part of this relationship,
CCMA oversees the health conscious, tobacco-free guidelines in all of the AHA
Funds. The AHA Funds also include the AHA Socially Responsible Equity Fund,
which screens for environmentally "pro-green" stock holdings along with other
socially responsible stock selection criteria.
CAPITAL MARKET ENVIRONMENT
As we started the fiscal year last October 1st, the global economy was in
freefall with the stock indices spiraling downward. In late 2008 and early 2009
only the safety of U.S. government debt and the highest quality bonds provided
positive returns. Frozen debt markets meant that no lending activity supported
corporations or consumers and led to the steepest recession since World War II.
The federal government put bailout packages into place for banks, automobile
manufacturers and the vast real estate mortgage industry, which by March, the
mid-point of our fiscal year, put a floor on the equity and credit markets. The
total U.S. taxpayer supported stimulus program, with TARP, TALF and other
Treasury and Federal Reserve programs to purchase securities and extend credit,
has amounted to $4.5 trillion in stimulus spending to date. By comparison, World
War II cost $3.8 trillion in today's dollars.
By March, the consensus was building that the government programs were having
the desired effect of stabilizing the economy and preventing a depression. The
market's trough was reached March 9th and the resulting upsurge in valuation was
of an historic proportion not seen since 1938: from the bottom through September
30th the S&P 500 gained 56%. This does not put stock prices back to their 2007
peak values yet (and there can be no guarantee as to whether or when valuations
will return to or exceed those peak values), but many investors used the price
declines to buy shares at much cheaper levels. Furthermore, corporate and other
credit rated bonds scored some of the highest returns recorded, as investors
felt safe enough to take risk again and began to switch out of government
securities.
By the third quarter of 2009, the AHA Funds' fourth fiscal quarter, many
economists concluded that the U.S. was coming out of the two year recession but
the National Bureau of Economic Research, which officially dates the beginning
and end of recessions, will not be able to pronounce that until the statistics
are analyzed in future months. With the Fed keeping interest rates at very low
levels to encourage lending and the Treasury issuing massive amounts of Treasury
bonds to fund the stimulus, forecasters are debating whether the economy is at
risk of near term deflation or inflation and what the pressure on the U.S.
dollar will mean globally.
While we are all catching our breath after a tumultuous fiscal year which
included a presidential election and turnover of administration in Washington,
we can be grateful for the durability of the U.S. economy after a stress test
not seen in seventy years.The following is a fund-by-fund account of the fiscal
year's results for each of the five AHA Funds.
AHA LIMITED MATURITY FIXED INCOME FUND
This Fund follows the multiple manager style of combining complementary core +
ALPHA managers to blend returns over interest rate and sector cycles. The two
sub-advisors are:
- - The 1-3 year maturity core manager, Patterson Capital Corporation, which is
the more conservative, short duration sub-advisor with often heavier
weightings in government securities;
- - The 1-5 year maturity alpha portfolio manager, City National Asset
Management Inc., a subsidiary of City National Bank, which more actively
shifts the duration based on Fed interest rate setting and
easing/tightening policies and weights sectors to lean towards corporate,
mortgage and asset-backed securities.
AHA INVESTMENT FUNDS | PAGE 2
letter to our shareholders
SEPTEMBER 30, 2009
The objectives of this Fund combine preservation of capital, liquidity and
maximization of returns only after consideration of low risk qualifications. We
are pleased to report that Lipper Analytics has designated both the
Institutional and N Classes of this Fund a Lipper Leader (top quintile) for
Preservation of Capital and Tax Efficiency every quarter this fiscal year. The
combined portfolios which create this investment grade Fund are benchmarked to
the Merrill Lynch 1-3 Year Treasury Index and the Merrill Lynch 3-Month
U.S. Treasury Bill Index.
During the fiscal year ended September 30, 2009, the Federal Reserve Board
("Fed") took emergency action and cut interest rates to the lowest levels
possible because of the halt in lending triggered by the rising defaults in
sub-prime mortgages. We want to assure investors that the Fund's sub-advisors do
not invest in low quality or sub-prime loans. Fed actions affected short term
yields, causing the 30-day SEC yield on the Merrill Lynch 3-Month U.S. Treasury
Index ("T-Bill") to drop from the already very low 0.68% in September 2008 to
0.12% in September 2009 (see Yield Curve chart below at the 3M (month) maturity
plot point). The AHA Limited Maturity Fund 30-day SEC yield has been
substantially higher, moving from 3.34% for Institutional Class (3.08% for N
Class) in September 2008 to 1.65% for Institutional Class (1.40% for N Class) in
September 2009. For income oriented investors, it is currently yielding more
than T-Bills and many other short term instruments.
For the fiscal year, the total net return of the Fund's Institutional Class
shares was 8.44% and 8.07% for N Class. Treasury and agency securities rallied
in the first six months of this fiscal year as a response to the financial
crisis, and the short duration of the Fund's core portfolio held up well in the
crisis. The Merrill Lynch 1-3 year Treasury Index had a one year return of 3.46%
and T-Bills' one year return was 0.39%. Since the Fund is a diversified blend of
corporate, Treasury, agency and mortgage securities, it has been able to
participate in the rally in corporate and other credit rated fixed income
securities since March of this year, led by the ALPHA portfolio's slightly
longer maturity and heavier mix of corporate bonds. The overall average credit
quality rating, a measure of risk control, is AA+ as this Fund is designed to
protect shareholder principal, and the sub-advisors follow conservative
investment grade quality guidelines. The Fund's peer group, the Lipper
Short-Intermediate Investment Grade Debt Funds, had an average return for the
fiscal year of 10.32%. The peer group includes funds that have a heavy weighting
in corporate bonds, which would be outside of the Fund's diversified,
conservative approach. Since the March rally in corporate credits began, funds
overweighted in corporate bonds have performed ahead of more diversified funds.
Yield Curve of U.S. Treasury Securities
as of 9/30/09, 6/30/09 and 3/31/09
[PERFORMANCE GRAPH]
Years to Maturity 9/30/2009 6/30/2009 3/31/2009
- ----------------- --------- --------- ---------
3M 0.14% 0.19% 0.21%
6M 0.18% 0.35% 0.43%
1 Yr 0.40% 0.56% 0.57%
2 Yr 0.95% 1.11% 0.81%
3 Yr 1.45% 1.64% 1.15%
1.88% 2.09% 1.41%
5 Yr 2.31% 2.54% 1.67%
2.93% 3.19% 2.28%
10 Yr 3.31% 3.53% 2.71%
3.66% 3.91% 3.16%
4.02% 4.30% 3.61%
4.02% 4.31% 3.59%
25Yr+ 4.03% 4.32% 3.56%
AHA FULL MATURITY FIXED INCOME
The AHA Full Maturity Fixed Income Fund combines two equally weighted portfolios
designed to complement each other in the core + ALPHA strategy and to provide a
"Full" maturity spectrum. They are:
- - Baird Advisors, the core sub-advisor, managed to the Barclays Aggregate
Index, is always duration neutral to their index and seeks to add value by
sector selection.
- - Boyd Watterson Asset Management, the ALPHA sub-advisor, managed to the
Barclays Intermediate Government/Credit Index, will more aggressively move
duration above or below their index by 20%;
The Fund began the fiscal year with a slightly longer maturity than its primary
benchmark, the Barclays Intermediate Index, at 5.2 years vs. 4.6 years, a
measure which aided performance in the sharply falling interest rate
environment. At the end of the fiscal year average maturity of the Fund was up
slightly to 5.3 years and the index had decreased slightly to 4.5 years. As the
Yield Curve chart shows, rates have shifted for intermediate to longer
maturities over the course of the year, but remained very low at the shorter
maturity end of the time horizon. Bond prices and interest rates have an inverse
relationship, so that when interest rates fall, prices rise.
(CONTINUES)
AHA INVESTMENT FUNDS | PAGE 3
letter to our shareholders
SEPTEMBER 30, 2009
As with the Limited Maturity Fund above, the Full Maturity Fund sub-advisors
began the fiscal year, at the depth of the crisis, with a tilt towards Treasury
and Agency bonds and a higher than normal cash position which aided the Fund's
performance. Treasury prices rose sharply in late 2008, and after the stimulus
program began to take effect in March, they backed off and corporate securities
began their ascent. Active sector changes by the ALPHA manager in the first
quarter brought the Fund's weighting in corporate credits to 39.0% by March 31,
2009; core manager purchases of asset-backed securities brought the Fund up to a
5.4% weighting in that surging sector. These weightings remained steady through
the end of the fiscal year and added substantially to the Fund's returns. The
Fund invests in investment grade bonds only and therefore did not hold any high
risk sub-prime assets. The Fund's average dollar-weighted credit quality is AA
and has remained so throughout the year.
The Fund's Institutional Class' net return was 9.95% for the fiscal year and the
N Class was 9.79%. This was only a few basis points under the Barclays
Intermediate U.S. Government/Credit Index return of 10.01% for the period. The
peer group, the Lipper Corporate Debt Funds A Rated, was heavily weighted
towards corporate bonds and returned 11.47%. However by means of comparison, the
Fund follows a diversified investment strategy among sectors and is not allowed
to heavily allocate to corporate bonds (or any other sector). Lipper did award
the Institutional Class of this Fund a Lipper Leader designation (top quintile)
for Preservation of Capital for each of the quarters of the fiscal year just
ended.
AHA BALANCED FUND
The AHA Balanced Fund combines stocks, bonds and cash in a moderate allocation
targeted at 60% stocks/30% bonds/10% cash. During the crisis of late 2008, the
fixed income portion of the Fund rose to a weighting of 54%, a historically high
level. Furthermore, the fixed income portion was almost completely in government
securities and that conservative selection protected Fund assets very well
compared to the Fund's peers. It earned Lipper Leader awards in the December
2008 and March 2009 quarters, the thick of the financial meltdown, due to
defensive allocation and holdings.
There was a partial rebalancing to equities in February 2009, and after the
stock market rally it ended the fiscal year with nearly 56% in equities. Its net
return for the fiscal year was off slightly compared to its benchmark at -1.75%.
A hybrid benchmark of 60% S&P 500 Stock Index, 30% Barclays Capital U.S.
Aggregate Bond Index and 10% Merrill Lynch 3-month U.S. Treasury Index was also
off as it returned -0.30%. The Fund had an over market weight in the Information
Technology sector stocks, which was the best performing sector for the year with
the only positive returns. The Fund was also overweight in Consumer
Discretionary stocks, the second best performing sector with a return of -2.2%
for the fiscal year. Keep in mind that even after the stock market rally of the
past six months, the S&P 500 is still down by 6.9% for the twelve months ended
September 30, 2009. The allocation to Financial and Telecomm sectors were drags
on performance for the year, despite Financials being the strongest up market
rally aiding the portfolio in the last fiscal quarter. The governments-only
fixed income allocation aided returns in the first half of the fiscal year, but
hurt compared to the aggregate bond market once corporate bonds began to rally
in the second half of the fiscal year.
(PIE CHART)
Freeman - Core 25.00%
AMBS - Fundamental Value 17.50%
SKBA - Large-Mid Value 25.50%
Turner Investment - Growth 35.00%
AHA DIVERSIFIED EQUITY FUND
The AHA Diversified Equity Fund Institutional Class and N Class shares produced
results of -7.08% and -7.30% respectively this fiscal year, very close to the
S&P 500 Index which was off this year by -6.91%. Lipper compares this Fund to
its Large-Cap Core Funds classification, which had an average return of -5.89%
for the period. This Fund combines four portfolio sub-advisors. The target
weightings for the sub-advisors at the start of the new fiscal year are: core
(25% weight), defensive/traditional value (17.5%) and an alpha large-mid value
(22.5%) and alpha growth (35%). In March 2008, the Fund added
AHA INVESTMENT FUNDS | PAGE 4
letter to our shareholders
SEPTEMBER 30, 2009
Turner Investment Partners as a sub-advisor and this fiscal year represents the
first full year with their growth portfolio in the Fund's mix. The addition of a
growth manager benefited the Fund's holdings as it caused overweighting in the
best performing sector this fiscal year, Information Technology. This was the
only sector to have positive returns for the fiscal year, up 7.2%. However,
while a large weighting in the Consumer Staples sector was defensive in late
2008, it became a drag in late 2009. Alternatively, a significant weighting in
Financials was a boost in performance in the final fiscal quarter, although it
hurt over the course of the fiscal year as Financials were the best performers
for the most recent quarter and worst for the year due to the banking crisis and
lock-up of credit markets.
As noted above, this Fund is a blend of four complementary investment styles,
the conservative "core" management of Freeman Associates, value large/mid cap
alpha manager, SKBA Capital Management's Value Opportunity style, AMBS
Investment Counsel's defensive Large Cap Value style, a fundamental value
approach which performed particularly well in the first half of the fiscal year,
and Turner rounding out the growth weightings, which we have increased
throughout the year.
AHA SOCIALLY RESPONSIBLE EQUITY FUND
The AHA Socially Responsible Equity Fund completed its fourth full fiscal year
of performance. It is pro-green and designed to meet the social guidelines of
church-based organizations. As a value style fund, atypical for a socially
conscious fund, it generally has holdings which are included in the Russell 1000
Value index, but there are 200 stocks of this index which are socially
restricted from the Fund. The Fund's Institutional Class returned -12.11% for
the fiscal year, while the N shares returned -12.34%. The Lipper Multi-Cap Value
Funds peer group has no social restrictions and returned -4.90% for the year.
The growth style FTSE KLD 400 Social Index is a stock index constructed using
environmental, social and governance factors, and was off -3.69% as growth
stocks were up in 2009. Returns of the Fund were hurt by overweights to Energy
stocks and the Financial sector, which are important value style sectors.
The Fund's sub-advisor, SKBA Capital Management, uses their Socially Responsible
Value investment style, and incorporates the social guidelines of the U.S.
Conference of Catholic Bishops. Proactively SKBA researches companies that have
good environmental sustainability, human rights and governance track records.
NEW FISCAL YEAR
Please visit our website, www.ahafunds.com for daily updates and greater detail
and background information. We want to thank our shareholders for their
confidence in the AHA Investment Funds and express our best wishes for the New
Year.
Sincerely,
/s/ Timothy G. Solberg
- -------------------------------------
Timothy G. Solberg, CFA
CHIEF INVESTMENT OFFICER
AHA INVESTMENT FUNDS, A SERIES OF THE CNI CHARTER FUNDS
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
OPINIONS EXPRESSED ABOVE ARE SUBJECT TO CHANGE, ARE NOT GUARANTEED, AND SHOULD
NOT BE CONSIDERED A RECOMMENDATION TO BUY OR SELL ANY SECURITY. PLEASE REFER TO
THE SCHEDULE OF INVESTMENTS IN THE REPORT FOR FUND HOLDINGS AND INDEX
DEFINITIONS. PORTFOLIO HOLDINGS AND SECTOR ALLOCATIONS ARE SUBJECT TO CHANGE.
THE ADVISOR HAS AN AGREEMENT IN PLACE TO WAIVE FEES. IN THE ABSENCE OF SUCH
WAIVERS, TOTAL RETURN WOULD BE REDUCED.
MUTUAL FUND INVESTING INVOLVES RISK. PRINCIPAL LOSS IS POSSIBLE.
CHANGING INTEREST RATES CAN ADVERSELY AFFECT THE VALUE OF AN INVESTMENT IN THE
AHA LIMITED AND FULL MATURITY FUNDS.
THE S&P 500 INDEX IS A BROAD BASED UNMANAGED INDEX OF 500 STOCKS WHICH IS WIDELY
RECOGNIZED AS REPRESENTATIVE OF THE EQUITY MARKET IN GENERAL. THE BARCLAYS
CAPITAL INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX IS A MARKET VALUE WEIGHTED
PERFORMANCE BENCHMARK FOR GOVERNMENT AND CORPORATE FIXED-RATE DEBT ISSUES WITH
MATURITIES BETWEEN ONE AND TEN YEARS. THE MERRILL LYNCH 1-3 TREASURY YEAR INDEX
IS A MARKET VALUE WEIGHTED INDEX OF U.S. TREASURY SECURITIES WITH MATURITIES OF
1-3 YEARS.
THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. PLEASE
READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO.
AHA INVESTMENT FUNDS | PAGE 5
fund overview
SEPTEMBER 30, 2009
AHA LIMITED MATURITY FIXED INCOME FUND
Comparison of Change in the Value of a $10,000 Investment in the AHA Limited
Maturity Fixed Income Fund, Institutional Class, versus the following indexes:
the Merrill Lynch 1-3 Year Treasury Index and the Merrill Lynch 3-Month U.S.
Treasury Index
(PERFORMANCE GRAPH)
AHA Limited Maturity Fixed Merrill Lynch 3-Month US Merrill Lynch 1-3 Year US
Income Fund, Institutional Class Treasury Index Treasury Index
-------------------------------- -----------------------------------------------------
Return Cum. Gro. 10K Return Cum. Gro. 10K Return Cum. Gro. 10K
------ ----- -------- ------ ----- -------- ------ ----- --------
Sep 00 5.51 5.51% $10,551 5.78 5.78% $10,578 5.79 5.79% $10,579
Sep 01 10.16 16.23% $11,623 5.45 11.54% $11,154 10.38 16.77% $11,677
Sep 02 5.15 22.21% $12,221 2.00 13.77% $11,377 5.65 23.37% $12,337
Sep 03 2.75 25.57% $12,557 1.32 15.27% $11,527 2.62 26.60% $12,660
Sep 04 0.72 26.48% $12,648 1.10 16.54% $11,654 1.05 27.92% $12,792
Sep 05 0.66 27.32% $12,732 2.62 19.59% $11,959 0.98 29.18% $12,918
Sep 06 3.49 31.76% $13,176 4.50 24.98% $12,498 3.74 34.01% $13,401
Sep 07 4.63 37.86% $13,786 5.22 31.49% $13,149 5.80 41.78% $14,178
Sep 08 2.54 41.37% $14,137 2.90 35.31% $13,531 6.27 50.67% $15,067
Sep 09 8.44 53.30% $15,330 0.39 35.84% $13,584 3.46 55.89% $15,589
This chart assumes an initial gross investment of $10,000 for the AHA Limited
Maturity Fixed Income Fund -Institutional Class Shares, as well as the Merrill
Lynch 1-3 Year Treasury Index and the Merrill Lynch 3-Month U.S. Treasury Index.
Performance figures include reinvested dividends and capital gains. Class N
Shares are sold with a 0.25% 12b-1 fee. The performance in the above graph does
not reflect the deduction of taxes the shareholder will pay on Fund
distributions or the redemptions of Fund shares. Investment performance reflects
fee waivers in effect. In the absence of such waivers, total return would be
reduced. Please refer to Note 3 in Notes to Financial Statements for expense
limitations.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-445-1341.
AVERAGE ANNUAL TOTAL RETURNS
Annualized Annualized Annualized Annualized
One-Year 3-Year 5-Year 10-Year Inception
Shares Return Return Return Return to Date
- ------ -------- ---------- ---------- ---------- ----------
Institutional Class(1) 8.44% 5.18% 3.92% 4.36% 5.27%
Class N(2) 8.07% 4.91% N/A N/A 3.66%
Merrill Lynch 1-3 Year
Treasury Index 3.46% 5.17% 4.03% 4.54% 0.76%
Merrill Lynch 3-Month
U.S. Treasury Index 0.39% 2.82% 3.11% 3.11% 0.17%
(1) Commenced operations on October 31, 1988.
(2) Commenced operations on October 22, 2004.
MERRILL LYNCH 1-3 YEAR TREASURY INDEX
A subset of the Merrill Lynch Treasury Master Index that includes securities
with a maturity range from one to three years. This index is available on a
monthly basis in price-only and total return versions. The value was set at 100
on December 31, 1975.
MERRILL LYNCH 3-MONTH U.S. TREASURY INDEX
The Merrill Lynch 3-Month U.S. Treasury Index is comprised of a single issue
purchased at the beginning of each month and held for a full month. Each month
the index is rebalanced and the issue selected is the outstanding Treasury Bill
that matures closest to, but not beyond three months from the rebalancing date.
One cannot invest directly in an index.
Top Ten Holdings*
% OF PORTFOLIO
--------------
U.S. Treasury Note, 1.750%,
11/15/11 3.1
FNMA, 6.000%, 05/15/11 2.9
U.S. Treasury Note, 4.125%,
08/31/12 2.8
U.S. Treasury Note, 4.500%,
11/30/11 2.8
JPMorgan Chase, 3.125%,
12/01/11 2.7
Citigroup Funding, 2.250%,
12/10/12 2.7
Goldman Sachs Group, 1.625%,
07/15/11 2.7
FNMA, 6.250%, 02/01/11 2.6
FNMA, 3.000%, 07/28/14 2.5
FNMA, 2.900%, 04/07/14 2.4
* Excludes cash equivalents.
AHA INVESTMENT FUNDS | PAGE 6
fund overview
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND
Comparison of Change in the Value of a $10,000 Investment in the AHA Full
Maturity Fixed Income Fund, Institutional Class, versus the following indexes:
the Barclays Intermediate Government/Credit Total Return Index and the Barclays
U.S. Aggregate Bond Index
(PERFORMANCE GRAPH)
AHA Full Maturity Fixed Barclays US Aggregate Barclays Intermediate US
Income Fund, Institutional Class Bond Index Government/Credit Index
-------------------------------- -----------------------------------------------------
Return Cum. Gro. 10K Return Cum. Gro. 10K Return Cum. Gro. 10K
------ ----- -------- ------ ----- -------- ------ ----- --------
Sep 00 6.72 6.72% $10,672 6.99 6.99% $10,699 6.25 6.25% $10,625
Sep 01 12.00 19.53% $11,953 12.95 20.85% $12,085 12.90 19.95% $11,995
Sep 02 7.06 27.97% $12,797 8.60 31.24% $13,124 8.10 29.66% $12,966
Sep 03 5.68 35.24% $13,524 5.41 38.34% $13,834 6.01 37.46% $13,746
Sep 04 3.45 39.91% $13,991 3.68 43.43% $14,343 2.65 41.11% $14,111
Sep 05 2.10 42.85% $14,285 2.80 47.43% $14,743 1.50 43.23% $14,323
Sep 06 3.03 47.18% $14,718 3.67 52.85% $15,285 3.55 48.31% $14,831
Sep 07 4.48 53.77% $15,377 5.14 60.70% $16,070 5.43 56.37% $15,637
Sep 08 1.76 56.49% $15,649 3.65 66.56% $16,656 3.13 61.26% $16,126
Sep 09 9.95 72.06% $17,206 10.56 84.15% $18,415 10.01 77.40% $17,740
This chart assumes an initial gross investment of $10,000 for the AHA Full
Maturity Fixed Income Fund -Institutional Class Shares and the Barclays
Intermediate Government/Credit Total Return Index and the Barclays U.S.
Aggregate Bond Index. Performance figures include reinvested dividends and
capital gains. Class N Shares are sold with a 0.25% 12b-1 fee. The performance
in the above graph does not reflect the deduction of taxes the shareholder will
pay on Fund distributions or the redemptions of Fund shares. Investment
performance reflects fee waivers in effect. In the absence of such waivers,
total returns would be reduced. Please refer to Note 3 in Notes to Financial
Statements for expense limitations.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-445-1341.
AVERAGE ANNUAL TOTAL RETURNS
Annualized Annualized Annualized Annualized
One-Year 3-Year 5-Year 10-Year Inception
Shares Return Return Return Return to Date
- ------ -------- ---------- ---------- ---------- ----------
Institutional Class(1) 9.95% 5.34% 4.22% 5.58% 6.49%
Class N(2) 9.79% 5.09% 3.95% N/A 4.21%
Barclays Intermediate
Government/Credit
Total Return Index 10.01% 6.15% 4.68% 5.90% 4.92%
Barclays
U.S. Aggregate
Bond Index 10.56% 6.41% 5.13% 6.30% 5.72%
(1) Commenced operations on October 20, 1988.
(2) Commenced operations on May 11, 2004.
BARCLAYS U.S. AGGREGATE BOND INDEX
The Barclays U.S. Aggregate Bond Index represents securities that are
SEC-registered, taxable, and dollar denominated. The index covers the U.S.
investment grade fixed rate bond market, with index components for government
and corporate securities, mortgage pass-through securities, and asset-backed
securities. These major sectors are subdivided into more specific indices that
are calculated and reported on a regular basis.
BARCLAYS INTERMEDIATE GOVERNMENT/CREDIT TOTAL RETURN INDEX
A total return index consisting of investment grade corporate debt issues as
well as debt issues of U.S. government agencies and the U.S. Treasury. The debt
issues all maintain maturities within a range of one to ten years.
One cannot invest directly in an index.
Top Ten Holdings*
% OF PORTFOLIO
--------------
U.S. Treasury Bond, 6.250%,
08/15/23 8.9
FNMA, 5.500%, 04/01/36 3.0
FNMA, 4.625%, 10/15/13 2.6
FHLMC, 2.500%, 01/07/14 2.0
FHLMC, 4.375%, 07/17/15 1.9
FNMA, 5.000%, 11/01/35 1.8
U.S. Treasury Note, 4.250%,
11/15/17 1.8
FNMA, 4.375%, 09/15/12 1.6
FNMA, 2.750%, 03/13/14 1.5
FNMA, 5.000%, 03/01/36 1.5
* Excludes cash equivalents.
AHA INVESTMENT FUNDS | PAGE 7
fund overview
SEPTEMBER 30, 2009
AHA BALANCED FUND
Comparison of Change in the Value of a $10,000 Investment in the AHA Balanced
Fund, versus the following indexes and a 60/30/10 hybrid of the following
indexes: the S&P 500 Index, the Barclays U.S. Aggregate Bond Index and the
Merrill Lynch 3-Month U.S. Treasury Index
(PERFORMANCE GRAPH)
60/30/10 Hybrid of the
AHA Balanced Fund following indexes: S&P 500 Index
------------------------- -------------------------- --------------------------
Return Cum. Gro. 10K Return Cum. Gro. 10K Return Cum. Gro. 10K
------ ----- -------- ------ ------ -------- ------ ------ --------
Sep 00 17.44 17.44% $11,744 10.71 10.71% $11,071 13.28 13.28% $11,328
Sep 01 -7.33 8.83% $10,883 -12.92 -3.59% $ 9,641 -26.62 -16.87% $ 8,313
Sep 02 -9.44 -1.45% $ 9,855 -10.15 -13.37% $ 8,663 -20.49 -33.90% $ 6,610
Sep 03 14.17 12.52% $11,252 16.36 0.80% $10,080 24.39 -17.78% $ 8,222
Sep 04 11.56 25.53% $12,553 9.52 10.40% $11,040 13.87 -6.38% $ 9,362
Sep 05 11.29 39.70% $13,970 8.46 19.75% $11,975 12.25 5.09% $10,509
Sep 06 8.32 51.33% $15,133 8.02 29.35% $12,935 10.79 16.43% $11,643
Sep 07 9.47 65.65% $16,565 11.90 44.74% $14,474 16.44 35.57% $13,557
Sep 08 -12.68 44.64% $14,464 -12.35 26.86% $12,686 -21.98 5.78% $10,578
Sep 09 -1.75 42.12% $14,212 -0.30 26.48% $12,648 -6.91 -1.53% $ 9,847
Barclays US Merrill Lynch 3-Month
Aggregate Bond Index US Treasury Index
------------------------- -------------------------
Return Cum. Gro. 10K Return Cum. Gro. 10K
------ ----- -------- ------ ----- --------
Sep 00 6.99 6.99% $10,699 5.78 5.78% $10,578
Sep 01 12.95 20.85% $12,085 5.45 11.54% $11,154
Sep 02 8.60 31.24% $13,124 2.00 13.77% $11,377
Sep 03 5.41 38.34% $13,834 1.32 15.27% $11,527
Sep 04 3.68 43.43% $14,343 1.10 16.54% $11,654
Sep 05 2.80 47.43% $14,743 2.62 19.59% $11,959
Sep 06 3.67 52.85% $15,285 4.50 24.98% $12,498
Sep 07 5.14 60.70% $16,070 5.22 31.49% $13,149
Sep 08 3.65 66.56% $16,656 2.90 35.31% $13,531
Sep 09 10.56 84.15% $18,415 0.39 35.84% $13,584
This chart assumes an initial gross investment of $10,000 for the AHA Balanced
Fund and in the 60/30/10 hybrid of the S&P 500 Index, the Barclays U.S.
Aggregate Bond Index and the Merrill Lynch 3-Month U.S. Treasury Index.
Performance figures include reinvested dividends and capital gains. The
performance in the above graph does not reflect the deduction of taxes the
shareholder will pay on Fund distributions or the redemption of Fund shares.
Investment performance reflects fee waivers in effect. In the absence of such
waivers, total return would be reduced. Please refer to Note 3 in Notes to
Financial Statements for expense limitations.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-445-1341.
AVERAGE ANNUAL TOTAL RETURNS
Annualized Annualized Annualized Annualized
One-Year 3-Year 5-Year 10-Year Inception
Shares Return Return Return Return to Date
- ------ -------- ---------- ---------- ---------- ----------
Institutional Class(1) (1.75)% (2.07)% 2.51% 3.58% 7.73%
60/30/10 Hybrid Index (0.30)% (0.75)% 2.76% 2.38% 8.22%
S&P 500 Index (6.91)% (5.43)% 1.01% (0.15)% 19.26%
Barclays U.S. Aggregate
Bond Index 10.56% 6.41% 5.13% 6.30% 5.72%
Merrill Lynch 3-Month
U.S. Treasury Index 0.39% 2.82% 3.11% 3.11% 0.17%
(1) Commenced operations on October 20, 1988.
60/30/10 HYBRID INDEX
This is a customized index with a blend of three indexes, consisting of 60% in
the S&P 500 Index, 30% in the Barclays U.S. Aggregate Bond Index and 10% in the
Merrill Lynch 3-Month U.S. Treasury Index.
S&P 500 INDEX
The S&P 500 is a broad market-weighted average of U.S. blue-chip companies. The
S&P 500 Index is a registered trademark of McGraw-Hill, Inc.
BARCLAYS U.S. AGGREGATE BOND INDEX
The Barclays U.S. Aggregate Bond Index represents securities that are
SEC-registered, taxable, and dollar denominated. The index covers the U.S.
investment grade fixed rate bond market, with index components for government
and corporate securities, mortgage pass-through securities, and asset-backed
securities. These major sectors are subdivided into more specific indices that
are calculated and reported on a regular basis.
MERRILL LYNCH 3-MONTH U.S. TREASURY INDEX
The Merrill Lynch 3-Month U.S. Treasury Index is comprised of a single issue
purchased at the beginning of each month and held for a full month. Each month
the index is rebalanced and the issue selected is the outstanding Treasury Bill
that matures closest to, but not beyond three months from the rebalancing date.
One cannot invest directly in an index.
Top Ten Holdings*
% OF PORTFOLIO
--------------
U.S. Treasury Bond, 6.250%,
08/15/23 9.6
U.S. Treasury Note, 3.125%,
08/31/13 5.5
FNMA, 6.000%, 05/15/11 4.0
FNMA, 2.750%, 03/13/14 3.8
U.S. Treasury Note, 2.250%,
05/31/14 3.0
General Electric 1.7
FNMA, 5.000%, 02/01/36 1.6
IBM 1.5
Exxon Mobil 1.5
Johnson & Johnson 1.4
* Excludes cash equivalents.
AHA INVESTMENT FUNDS | PAGE 8
fund overview
SEPTEMBER 30, 2009
AHA DIVERSIFIED EQUITY FUND
Comparison of Change in the Value of a $10,000 Investment in the AHA Diversified
Equity Fund, Institutional Class, versus the S&P 500 Index
(PERFORMANCE GRAPH)
AHA Diversified Equity Fund,
Institutional Class S&P 500 Index
---------------------------- --------------------------
Return Cum. Gro. 10K Return Cum. Gro. 10K
------ ------ -------- ------ ------ --------
Sep 00 20.52 20.52% $12,052 13.28 13.28% $11,328
Sep 01 -15.12 2.30% $10,230 -26.62 -16.87% $ 8,313
Sep 02 -18.17 -16.29% $ 8,371 -20.49 -33.90% $ 6,610
Sep 03 21.70 1.87% $10,187 24.39 -17.78% $ 8,222
Sep 04 16.15 18.32% $11,832 13.87 -6.38% $ 9,362
Sep 05 16.48 37.82% $13,782 12.25 5.09% $10,509
Sep 06 10.16 51.82% $15,182 10.79 16.43% $11,643
Sep 07 11.93 69.93% $16,993 16.44 35.57% $13,557
Sep 08 -22.73 31.30% $13,130 -21.98 5.78% $10,578
Sep 09 -7.08 22.01% $12,201 -6.91 -1.53% $ 9,847
This chart assumes an initial gross investment of $10,000 for the AHA
Diversified Equity Fund - Institutional Class Shares and the S&P 500 Index.
Performance figures include reinvested dividends and capital gains. Class A
Shares are sold with a 0.25% 12b-1 fee. The performance in the above graph does
not reflect the deduction of taxes the shareholder will pay on Fund
distributions or the redemption of Fund Shares. The adviser has an agreement in
place to waive fees. Currently, the expense levels have not been exceeded for
the Fund.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-445-1341.
AVERAGE ANNUAL TOTAL RETURNS
Annualized Annualized Annualized Annualized
One-Year 3-Year 5-Year 10-Year Inception
Shares Return Return Return Return to Date
- ------ -------- ---------- ---------- ---------- ----------
Institutional Class(1) (7.08)% (7.03)% 0.62% 2.01% 8.97%
Class N(2) (7.30)% (7.27)% 0.35% N/A 4.55%
S&P 500 Index (6.91)% (5.43)% 1.01% (0.15)% 19.26%
(1) Commenced operations on October 20, 1988.
(2) Commenced operations on December 30, 2002.
S&P 500 INDEX is a broad market-weighted average of U.S. blue-chip companies.
S&P 500 Index is a registered trademark of McGraw-Hill, Inc.
One cannot invest directly in an index.
Top Ten Holdings*
% OF PORTFOLIO
--------------
Apple 2.2
Cisco Systems 1.9
PepsiCo 1.9
Amgen 1.5
Google 1.4
AT&T 1.4
IBM 1.3
Gilead Sciences 1.2
US Bancorp 1.2
Symantec 1.2
* Excludes cash equivalents.
AHA INVESTMENT FUNDS | PAGE 9
fund overview
SEPTEMBER 30, 2009
AHA SOCIALLY RESPONSIBLE EQUITY FUND
Comparison of Change in the Value of a $10,000 Investment in the AHA Socially
Responsible Equity Fund, Institutional Class, versus the FTSE KLD 400 Social
Index
(PERFORMANCE GRAPH)
AHA Socially Responsible Equity Fund,
Institutional Class FTSE KLD 400 Social Index
------------------------------------- -------------------------
Return Cum. Gro. 10K Return Cum. Gro. 10K
------ ----- -------- ------ ----- --------
Sep 05 3.56 3.56% $10,356 0.86 0.86% $10,086
Sep 06 7.69 11.53% $11,153 9.54 10.48% $11,048
Sep 07 13.89 27.02% $12,702 13.94 25.88% $12,588
Sep 08 -16.24 6.39% $10,639 -19.88 0.86% $10,086
Sep 09 -12.11 -6.49% $ 9,351 -3.69 -2.86% $9,714
Sep 10 0.00 -6.49% $ 9,351 0.00 -2.86% $9,714
Sep 11 0.00 -6.49% $ 9,351 0.00 -2.86% $9,714
Sep 12 0.00 -6.49% $ 9,351 0.00 -2.86% $9,714
Sep 13 0.00 -6.49% $ 9,351 0.00 -2.86% $9,714
Sep 14 0.00 -6.49% $ 9,351 0.00 -2.86% $9,714
Sep 15 0.00 -6.49% $ 9,351 0.00 -2.86% $9,714
This chart assumes an initial gross investment of $10,000 made on January 3,
2005 (the Fund's inception date) for the AHA Socially Responsible Equity Fund -
Institutional Class Shares and the Domini 400 Social Index. Performance figures
include reinvested dividends and capital gains. Class N Shares are sold with a
0.25% 12b-1 fee. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on Fund distributions or the
redemption of Fund shares. The adviser has an agreement in place to waive fees.
Currently, the expense levels have not been exceeded for the Fund. Please refer
to Note 3 in Notes to Financial Statements for expense limitations.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-445-1341.
AVERAGE ANNUAL TOTAL RETURNS
Annualized
One-Year Three-Year Inception
Shares Return Return to Date
- ------ -------- ---------- ----------
Institutional Class(1) (12.11)% (5.70)% (1.40)%
Class N(2) (12.34)% (5.94)% (2.38)%
FTSE KLD 400 Social Index (3.69)% (4.20)% 22.57%
(1) Commenced operations on January 3, 2005.
(2) Commenced operations on August 12, 2005.
FTSE KLD 400 SOCIAL INDEX is a market capitalization-weighted common stock
index. It monitors the performance of 400 U.S. corporations that pass multiple,
broad-based social screens. The Index consists of approximately 250 companies
included in the Standard & Poor's 500 Index, approximately 100 additional large
companies not included in the S&P 500 but providing industry representation, and
approximately 50 additional companies with particularly strong social
characteristics.
One cannot invest directly in an index.
Top Ten Holdings*
% OF PORTFOLIO
--------------
McKesson 3.6
Brookfield Asset Management, Cl A 3.6
Patterson-UTI Energy 3.3
Unit 3.2
Patterson 3.2
Walgreen 3.2
Emerson Electric 3.1
Tyco International 3.1
Symantec 3.1
Microsoft 3.1
* Excludes cash equivalents.
AHA INVESTMENT FUNDS | PAGE 10
schedule of investments
SEPTEMBER 30, 2009
AHA LIMITED MATURITY FIXED INCOME FUND
(BAR CHART)
TYPE OF SECURITY WEIGHTINGS*:
Corporate Bonds 41.2%
U.S. Government Mortgage-Backed Obligations 23.9%
U.S. Treasury Obligations 15.1%
U.S. Government Agency Obligations 14.2%
Municipal Bonds 3.0%
Cash Equivalent 1.7%
Mortgage-Backed Securities 0.9%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
CORPORATE BONDS [41.1%]
AEROSPACE & DEFENSE [2.0%]
Boeing
5.000%, 03/15/14 $ 550 $ 600
United Technologies
7.125%, 11/15/10 175 186
-------
TOTAL AEROSPACE & DEFENSE 786
=======
BANKS [12.9%]
ANZ National International
6.200%, 07/19/13 550 601
Bank of America
4.375%, 12/01/10 60 61
Citibank
1.500%, 07/12/11 300 302
Citigroup
5.100%, 09/29/11 550 566
Goldman Sachs Group
1.625%, 07/15/11 1,000 1,010
Goldman Sachs Group, MTN
3.625%, 08/01/12 550 565
JPMorgan Chase
5.600%, 06/01/11 150 159
3.125%, 12/01/11 1,000 1,038
Wachovia
4.375%, 06/01/10 100 102
Wachovia, MTN
5.500%, 05/01/13 550 589
-------
TOTAL BANKS 4,993
=======
COMPUTER SYSTEM DESIGN & SERVICES [2.5%]
Hewlett-Packard
6.125%, 03/01/14 550 619
4.250%, 02/24/12 150 159
IBM
4.950%, 03/22/11 190 200
-------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 978
=======
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
DRUGS [0.4%]
Abbott Laboratories
5.600%, 05/15/11 $ 145 $ 155
=======
ENERGY [0.9%]
Florida Power
4.500%, 06/01/10 250 256
FPL Group Capital
5.625%, 09/01/11 85 91
-------
TOTAL ENERGY 347
=======
FINANCIAL SERVICES [5.1%]
Boeing Capital
6.100%, 03/01/11 250 266
Caterpillar Financial Services, MTN
5.050%, 12/01/10 200 207
Countrywide Financial, MTN
5.800%, 06/07/12 550 580
General Electric Capital, MTN
4.875%, 10/21/10 150 155
General Electric Capital, Ser A, MTN
6.000%, 06/15/12 550 589
John Deere Capital, MTN
5.250%, 10/01/12 150 162
-------
TOTAL FINANCIAL SERVICES 1,959
=======
FOOD, BEVERAGE & TOBACCO [2.4%]
Campbell Soup
6.750%, 02/15/11 150 161
Coca-Cola
5.750%, 03/15/11 145 154
Coca-Cola Enterprises
3.750%, 03/01/12 170 178
Kellogg
6.600%, 04/01/11 200 214
PepsiCo
5.150%, 05/15/12 60 65
Unilever Capital
7.125%, 11/01/10 150 160
-------
TOTAL FOOD, BEVERAGE & TOBACCO 932
=======
FOOD-RETAIL [0.2%]
Safeway
6.500%, 03/01/11 60 64
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 11
schedule of investments
SEPTEMBER 30, 2009
AHA LIMITED MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
INSURANCE [0.1%]
Allstate
7.200%, 12/01/09 $ 50 $ 50
=======
INVESTMENT BANKER/BROKER DEALER [8.7%]
Bear Stearns, MTN
6.950%, 08/10/12 550 612
Citigroup Funding
2.250%, 12/10/12 1,000 1,013
Credit Suisse First Boston
6.125%, 11/15/11 550 594
Goldman Sachs Group
6.600%, 01/15/12 115 125
4.500%, 06/15/10 100 103
Morgan Stanley
6.750%, 04/15/11 705 752
4.250%, 05/15/10 150 152
-------
TOTAL INVESTMENT BANKER/BROKER DEALER 3,351
=======
MULTI-MEDIA [2.0%]
Walt Disney, MTN
6.375%, 03/01/12 550 604
5.700%, 07/15/11 150 161
-------
TOTAL MULTI-MEDIA 765
=======
OIL, GAS & CONSUMABLE FUELS [1.5%]
ConocoPhillips
4.750%, 02/01/14 550 592
=======
PETROLEUM & FUEL PRODUCTS [2.0%]
ConocoPhillips
8.750%, 05/25/10 250 264
Occidental Petroleum, MTN
4.250%, 03/15/10 500 508
-------
TOTAL PETROLEUM & FUEL PRODUCTS 772
=======
TELEPHONES & TELECOMMUNICATIONS [0.4%]
AT&T
7.300%, 11/15/11 150 166
=======
TOTAL CORPORATE BONDS
(Cost $15,487) 15,910
=======
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [23.8%]
FHLMC
2.125%, 09/21/12 710 719
FHLMC, Pool G12806
5.500%, 09/01/22 338 358
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FHLMC, Pool G18247
5.000%, 04/01/23 $ 236 $ 248
FHLMC, Pool G18251
5.000%, 05/01/23 356 374
FHLMC, Pool J04241
5.500%, 01/01/22 238 253
FHLMC, Pool J04459
5.000%, 03/01/22 175 184
FHLMC, Pool J04508
5.000%, 03/01/22 127 134
FHLMC, Pool J07575
5.000%, 04/01/23 267 280
FHLMC REMIC, Pool FHRR
R005 AB, Cl AB
5.500%, 12/15/18 461 481
FHLMC REMIC, Ser R003,
Cl AG
5.125%, 10/15/15 346 357
FHLMC REMIC, Ser R006,
Cl AK
5.750%, 12/15/18 295 308
FHLMC REMIC, Ser R007,
Cl AC
5.875%, 05/15/16 324 334
FHLMC REMIC, Ser R009,
Cl AJ
5.750%, 12/15/18 426 445
FHLMC REMIC, Ser R010,
Pool FHRR R010 AB, Cl AB
5.500%, 12/15/19 539 563
FHLMC REMIC, Ser R015,
Pool FHRR R015 AN, Cl AN
3.750%, 02/15/13 383 390
FHLMC REMIC, Ser R016,
Pool FHRR R016 AM, Cl AM
5.125%, 06/15/18 623 650
FNMA
3.000%, 07/28/14 925 934
2.900%, 04/07/14 925 925
FNMA, Pool 541946
7.500%, 07/01/30 1 1
FNMA, Pool 837196
5.500%, 02/01/21 456 484
FNMA, Pool 933915
4.500%, 06/01/23 412 428
FNMA, Pool 961783
4.500%, 02/01/23 362 376
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS
(Cost $9,012) 9,226
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 12
schedule of investments
SEPTEMBER 30, 2009
AHA LIMITED MATURITY FIXED INCOME FUND (CONCLUDED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS [14.2%]
FHLB
5.375%, 08/19/11 $ 600 $ 648
FHLMC
6.000%, 06/15/11 600 652
4.750%, 03/05/12 645 698
FHLMC, Pool G18321
4.500%, 08/01/24 174 181
FHLMC REMIC, Pool FHRR
R011 AB, Cl AB
5.500%, 12/15/20 566 592
FNMA
6.250%, 02/01/11 925 980
6.000%, 05/15/11 1,000 1,083
5.375%, 11/15/11 600 654
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,394) 5,488
=======
U.S. TREASURY OBLIGATIONS [15.1%]
U.S.Treasury Notes
4.875%, 04/30/11 840 895
4.875%, 05/31/11 210 224
4.875%, 02/15/12 100 109
4.750%, 01/31/12 50 54
4.500%, 02/28/11 590 622
4.500%, 11/30/11 1,000 1,074
4.500%, 03/31/12 565 611
4.125%, 08/31/12 1,000 1,078
1.750%, 11/15/11 1,150 1,168
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,782) 5,835
=======
MORTGAGE-BACKED SECURITIES [0.8%]
BMW Vehicle Lease Trust, Cl A3
2.910%, 03/15/12 160 163
Mercedes Benz Auto Receivables
Trust, Cl A4
2.430%, 03/15/16 165 165
-------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $325) 328
=======
MUNICIPAL BONDS [3.0%]
Irvine Ranch Water District,
RB, ETM
8.180%, 03/15/14 550 613
State of California,
Sub-Ser A-2, RB
3.000%, 06/23/10 550 557
-------
TOTAL MUNICIPAL BONDS
(Cost $1,164) 1,170
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
CASH EQUIVALENT [1.7%]
AIM STIT-Treasury Portfolio,
0.060%* 647,997 $ 648
-------
TOTAL CASH EQUIVALENT
(Cost $648) 648
=======
TOTAL INVESTMENTS [99.7%]
(Cost $37,812) $38,605
=======
PERCENTAGES ARE BASED ON NET ASSETS OF $38,725,624.
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF SEPTEMBER 30, 2009.
CL -- CLASS
ETM -- ESCROW TO MATURITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
The following is a summary of the inputs used as of September 30, 2009 in
valuing the Fund's investments carried at value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Corporate Bonds $ -- $15,910 $-- $15,910
U.S. Government
Mortgage-Backed
Obligations -- 9,226 -- 9,226
U.S. Government Agency
Obligations -- 5,488 -- 5,488
U.S.Treasury Obligations -- 5,835 -- 5,835
Mortgage-Backed Securities -- 328 -- 328
Municipal Bonds -- 1,169 -- 1,170
Cash Equivalent 648 -- -- 648
---- ------- --- -------
Total Investments in
Securities $648 $37,957 $-- $38,605
==== ======= === =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 13
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND
(BAR CHART)
TYPE OF SECURITY WEIGHTINGS*:
Corporate Bonds 39.8%
U.S. Government Mortgage-Backed Obligations 17.3%
U.S. Treasury Obligations 15.1%
U.S. Government Agency Obligations 10.9%
Asset-Backed Securities 5.9%
Mortgage-Backed Securities 4.9%
Cash Equivalent 3.3%
Commercial Mortgage-Backed Securities 2.6%
Foreign Government Bond 0.2%
Municipal Bond 0.0%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
CORPORATE BONDS [40.2%]
AEROSPACE & DEFENSE [0.3%]
United Technologies
6.125%, 02/01/19 $ 100 $ 114
=======
AGRICULTURE [0.2%]
Bunge NA Finance
5.900%, 04/01/17 100 99
=======
APPLICATIONS SOFTWARE [0.8%]
Microsoft
4.200%, 06/01/19 300 309
=======
BANKS [8.1%]
AmSouth Bancorporation
6.750%, 11/01/25 75 55
Bank of America
10.200%, 07/15/15 100 117
2.100%, 04/30/12 320 324
Bank of America, MTN
7.375%, 05/15/14 100 111
5.650%, 05/01/18 265 262
Bank One
10.000%, 08/15/10 89 95
Citigroup
6.375%, 08/12/14 110 114
2.125%, 04/30/12 250 254
Deutsche Bank Trust
7.250%, 10/15/11 46 49
Dresdner Bank - New York
7.250%, 09/15/15 150 142
European Investment Bank
4.625%, 03/21/12 250 269
JPMorgan Chase
4.650%, 06/01/14 350 365
Morgan Stanley
5.300%, 03/01/13 260 272
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
PNC Funding
2.300%, 06/22/12 $ 355 $ 361
Santander Central Hispano
Issuances
7.625%, 09/14/10 100 106
Wachovia
5.300%, 10/15/11 200 212
Wachovia, MTN
5.500%, 05/01/13 150 161
-------
TOTAL BANKS 3,269
=======
BEAUTY PRODUCTS [0.9%]
Procter & Gamble
4.700%, 02/15/19 185 193
4.600%, 01/15/14 175 188
-------
TOTAL BEAUTY PRODUCTS 381
=======
BUILDING & CONSTRUCTION [0.2%]
Hanson Australia Funding
5.250%, 03/15/13 75 71
=======
CABLE/MEDIA [0.2%]
TCI Communications
7.875%, 08/01/13 75 85
=======
CHEMICALS [0.5%]
EI Du Pont de Nemours
5.875%, 01/15/14 190 210
=======
COMPUTER SYSTEM DESIGN & SERVICES [0.4%]
Hewlett-Packard
6.125%, 03/01/14 135 152
=======
DATA PROCESSING [0.3%]
Fiserv
6.125%, 11/20/12 100 108
=======
DRUGS [2.0%]
Eli Lilly
3.550%, 03/06/12 175 183
Merck
5.000%, 06/30/19 200 214
Novartis Capital
4.125%, 02/10/14 110 116
Pfizer
5.350%, 03/15/15 200 222
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 14
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Teva Pharmaceutical
5.550%, 02/01/16 $ 75 $ 80
-------
TOTAL DRUGS 815
=======
ENERGY [1.6%]
Carolina Power & Light
5.150%, 04/01/15 80 86
Exelon
5.625%, 06/15/35 75 72
FPL Group Capital
7.875%, 12/15/15 115 141
Korea Electric Power
7.750%, 04/01/13 95 107
6.750%, 08/01/27 75 75
NiSource Finance
7.875%, 11/15/10 75 79
PPL Energy Supply, Ser A
5.700%, 10/15/15 75 78
-------
TOTAL ENERGY 638
=======
FINANCIAL SERVICES [5.3%]
American Express Credit, MTN
7.300%, 08/20/13 245 272
American General Finance
8.450%, 10/15/09 100 100
Associates Corp of North America,
Ser A
7.950%, 02/15/10 75 75
Caterpillar Financial Services, MTN
6.200%, 09/30/13 225 249
General Electric Capital, MTN
3.500%, 08/13/12 225 228
3.000%, 12/09/11 270 280
General Electric Capital, Ser A,
MTN
6.000%, 06/15/12 75 80
HSBC Finance
5.000%, 06/30/15 75 75
John Deere Capital
2.875%, 06/19/12 350 362
Svensk Exportkredit
4.875%, 01/19/10 280 284
UFJ Finance Aruba
6.750%, 07/15/13 125 139
-------
TOTAL FINANCIAL SERVICES 2,144
=======
FOOD, BEVERAGE & TOBACCO [2.8%]
Bottling Group
5.125%, 01/15/19 115 123
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Cia de Bebidas das Americas
8.750%, 09/15/13 $ 175 $ 205
Coca-Cola
5.350%, 11/15/17 240 262
General Mills
5.650%, 02/15/19 110 119
Kellogg
4.450%, 05/30/16 210 220
Kraft Foods
6.500%, 08/11/17 190 205
-------
TOTAL FOOD, BEVERAGE & TOBACCO 1,134
=======
INSURANCE [0.4%]
Protective Life
4.300%, 06/01/13 100 95
Travelers (A)
6.250%, 03/15/37 100 88
-------
TOTAL INSURANCE 183
=======
INVESTMENT BANKER/BROKER DEALER [3.3%]
Citigroup
6.500%, 01/18/11 235 244
Credit Suisse USA
5.250%, 03/02/11 325 340
Goldman Sachs Group
6.600%, 01/15/12 200 217
5.150%, 01/15/14 75 79
0.583%, 06/28/10 (A) 100 100
Jefferies Group
6.450%, 06/08/27 100 84
Merrill Lynch, Ser C, MTN (A)
0.692%, 02/05/10 70 70
Morgan Stanley
4.750%, 04/01/14 75 74
0.789%, 01/15/10 (A) 140 140
-------
TOTAL INVESTMENT BANKER/BROKER DEALER 1,348
=======
MACHINERY-CONSTRUCTION AND MINING [0.4%]
Caterpillar
7.900%, 12/15/18 135 166
=======
MANUFACTURING [1.3%]
General Electric
5.000%, 02/01/13 150 158
Honeywell International
3.875%, 02/15/14 100 104
Tyco International Finance
4.125%, 10/15/14 200 201
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 15
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Tyco International Group
6.375%, 10/15/11 $ 75 $ 81
-------
TOTAL MANUFACTURING 544
=======
MEDICAL PRODUCTS [0.4%]
Johnson & Johnson
5.550%, 08/15/17 130 146
=======
METALS & MINING [0.5%]
Rio Tinto Finance USA
6.500%, 07/15/18 100 108
Vale Overseas
6.875%, 11/21/36 100 103
-------
TOTAL METALS & MINING 211
=======
MULTI-MEDIA [1.3%]
CBS
6.625%, 05/15/11 60 63
Time Warner
9.125%, 01/15/13 50 58
5.875%, 11/15/16 235 249
Walt Disney, MTN
6.375%, 03/01/12 150 165
-------
TOTAL MULTI-MEDIA 535
=======
NETWORKING PRODUCTS [0.3%]
Cisco Systems
4.950%, 02/15/19 115 121
=======
OIL, GAS & CONSUMABLE FUELS [1.9%]
Chevron
3.450%, 03/03/12 210 219
ConocoPhillips
5.300%, 04/15/12 300 324
Total Capital
3.125%, 10/02/15 250 249
-------
TOTAL OIL, GAS & CONSUMABLE FUELS 792
=======
PETROLEUM & FUEL PRODUCTS [0.3%]
Energy Transfer Partners
6.625%, 10/15/36 75 78
Pemex Project Funding Master Trust
9.125%, 10/13/10 50 53
-------
TOTAL PETROLEUM & FUEL PRODUCTS 131
=======
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
RETAIL [1.9%]
Home Depot
5.250%, 12/16/13 $ 310 $ 330
Lowe's
5.000%, 10/15/15 200 217
Target
6.350%, 01/15/11 200 213
-------
TOTAL RETAIL 760
=======
RETAIL-DRUG STORE [0.3%]
Walgreen
5.250%, 01/15/19 100 109
=======
RETAIL-RESTAURANTS [0.2%]
McDonald's, MTN
5.000%, 02/01/19 90 96
=======
SECURITY BROKERS & DEALERS [0.1%]
iStar Financial
5.850%, 03/15/17 100 52
=======
SHORT-TERM BUSINESS CREDIT [0.1%]
CIT Group Funding of Delaware
5.200%, 06/01/15 50 39
=======
TELEPHONES & TELECOMMUNICATIONS [3.0%]
British Telecommunications
9.625%, 12/15/30 100 128
9.125%, 12/15/10 (B) 60 65
Deutsche Telekom International
Finance
8.750%, 06/15/30 75 97
Deutsche Telekom International
FinanceBV
6.000%, 07/08/19 50 54
France Telecom
7.750%, 03/01/11 50 54
New Cingular Wireless Services
8.750%, 03/01/31 75 99
SBC Communications
5.300%, 11/15/10 250 260
Sprint Capital
6.900%, 05/01/19 75 67
Telecom Italia Capital
7.200%, 07/18/36 75 85
Telefonica Emisiones
6.421%, 06/20/16 75 84
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 16
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Verizon Pennsylvania
5.650%, 11/15/11 $ 200 $ 213
-------
TOTAL TELEPHONES & TELECOMMUNICATIONS 1,206
=======
TRANSPORTATION SERVICES [0.9%]
FedEx
9.650%, 06/15/12 125 146
United Parcel Service
3.875%, 04/01/14 195 204
-------
TOTAL TRANSPORTATION SERVICES 350
=======
TOTAL CORPORATE BONDS
(Cost $15,608) 16,318
=======
U.S. GOVERNMENT AGENCY OBLIGATIONS [10.9%]
FFCB
4.875%, 04/04/12 200 216
FHLMC
4.375%, 07/17/15 705 760
2.500%, 01/07/14 800 805
2.125%, 03/23/12 500 509
FNMA
4.625%, 10/15/13 930 1,016
4.625%, 10/15/14 450 491
4.375%, 09/15/12 600 645
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $4,307) 4,442
=======
U.S. TREASURY OBLIGATIONS [15.3%]
U.S.Treasury Bonds
6.250%, 08/15/23 2,800 3,510
5.250%, 11/15/28 300 348
U.S.Treasury Notes
4.750%, 05/15/14 230 256
4.250%, 08/15/13 200 218
4.250%, 11/15/17 660 711
2.750%, 02/15/19 275 262
2.625%, 04/30/16 425 420
2.250%, 05/31/14 475 477
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,921) 6,202
=======
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [17.5%]
FHLMC, Pool 160098
10.500%, 01/01/10 -- --
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FHLMC, Pool 1B2677 (A)
4.163%, 01/01/35 $ 21 $ 22
FHLMC, Pool 1B2683 (A)
4.086%, 01/01/35 13 13
FHLMC, Pool 1B2692 (A)
4.462%, 12/01/34 39 40
FHLMC, Pool C20300
6.500%, 01/01/29 10 11
FHLMC, Pool E01280
5.000%, 12/01/17 35 38
FHLMC, Pool G08003
6.000%, 07/01/34 108 115
FHLMC, Pool G11431
6.000%, 02/01/18 23 25
FHLMC, Pool G11911
5.000%, 02/01/21 268 284
FHLMC, Pool G18124
6.000%, 06/01/21 78 83
FHLMC, Ser 2730, Cl PD
5.000%, 05/15/21 150 158
FHLMC, Ser 3122, Cl VA
6.000%, 01/15/17 112 120
FHLMC, Ser 3132, Cl MA
5.500%, 12/15/23 83 87
FHLMC Gold, Pool G11880
5.000%, 12/01/20 106 112
FHLMC REMIC, Ser 2544,
Cl QB
5.000%, 09/15/15 18 18
FHLMC REMIC, Ser 2804,
Cl VC
5.000%, 07/15/21 155 167
FHLMC REMIC, Ser R003,
Cl VA
5.500%, 08/15/16 140 150
FHLMC REMIC, Ser R009,
Cl AJ
5.750%, 12/15/18 95 99
FHLMC REMIC, Ser R010,
Pool FHRR R010 AB, Cl AB
5.500%, 12/15/19 225 234
FHLMC REMIC, Ser R010,
Cl VA
5.500%, 04/15/17 119 128
FNMA
2.750%, 03/13/14 600 609
FNMA, Pool 252570
6.500%, 07/01/29 22 24
FNMA, Pool 253183
7.500%, 04/01/30 2 2
FNMA, Pool 253398
8.000%, 08/01/30 7 8
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 17
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FNMA, Pool 254510
5.000%, 11/01/17 $ 46 $ 49
FNMA, Pool 254545
5.000%, 12/01/17 91 96
FNMA, Pool 254685
5.000%, 04/01/18 71 75
FNMA, Pool 254949
5.000%, 11/01/33 69 72
FNMA, Pool 255814
5.500%, 08/01/35 180 189
FNMA, Pool 303168
9.500%, 02/01/25 5 6
FNMA, Pool 735060
6.000%, 11/01/34 81 86
FNMA, Pool 735228
5.500%, 02/01/35 74 78
FNMA, Pool 745355
5.000%, 03/01/36 578 599
FNMA, Pool 745418
5.500%, 04/01/36 1,121 1,177
FNMA, Pool 827223 (A)
4.766%, 04/01/35 141 146
FNMA, Pool 844809
5.000%, 11/01/35 690 715
FNMA, Pool 976420
4.500%, 03/01/23 577 599
FNMA, Ser 136, Cl PK
6.000%, 08/25/22 25 28
FNMA, Ser 33, Cl LD
4.250%, 09/25/22 144 150
FNMA, Ser W6, Cl 1A6
5.500%, 07/25/34 66 68
FNMA REMIC, Ser B2, Cl AB
5.500%, 05/25/14 105 109
GNMA, Pool 479168
8.000%, 02/15/30 8 9
GNMA, Pool 780315
9.500%, 12/15/17 11 12
GNMA, Ser 15, Cl A
3.727%, 03/16/27 119 122
GNMA, Ser 78, Cl C
4.658%, 04/16/29 150 158
-------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $6,791) 7,090
=======
MORTGAGE-BACKED SECURITIES [4.9%]
Banc of America Alternative Loan
Trust, Ser 2004-2, Cl 5A1
5.500%, 03/25/19 96 84
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Banc of America Alternative Loan
Trust, Ser 2005-4, Cl CB11
5.500%, 05/25/35 $ 70 $ 67
Banc of America Alternative Loan
Trust, Ser 2005-6, Cl 7A1
5.500%, 07/25/20 77 70
Banc of America Alternative Loan
Trust, Ser 2005-9, Cl 1CB3
5.500%, 10/25/35 93 74
Banc of America Alternative Loan
Trust, Ser 2006-2, Cl 6A1
5.500%, 03/25/21 111 96
Chase Mortgage Finance,
Ser 2003-S13, Cl A11
5.500%, 11/25/33 80 81
Citigroup, Ser 2007-CD4, Cl A2B
5.205%, 12/11/49 150 149
Citigroup Mortgage Loan Trust,
Ser 2005-9, Cl 2A2
5.500%, 11/25/35 76 65
First Horizon Alternative Mortgage
Securities, Ser 2006-FA8, Cl 2A1
5.750%, 02/25/37 105 60
JP Morgan Mortgage Trust,
Ser 2007-A2, Cl 2A3 (A)
5.415%, 04/25/37 200 142
JPMorgan Alternative Loan Trust,
Ser 2006-S3, Cl A3A
6.000%, 08/25/36 200 119
JPMorgan Chase, Ser 2006-CB17,
Cl ASB
5.415%, 12/12/43 200 194
JPMorgan Mortgage Trust,
Ser 2006-A7, Cl 2A2 (A)
5.774%, 01/25/37 110 77
JPMorgan Mortgage Trust,
Ser 2006-A7, Cl 2A4R (A)
5.401%, 01/25/37 200 128
RAAC, Ser 2004-SP1, Cl AI4 (A)
5.285%, 08/25/27 121 102
Residential Accredit Loans,
Ser 2004-QS5, Cl A5
4.750%, 04/25/34 34 32
Residential Accredit Loans,
Ser 2004-QS6, Cl A1
5.000%, 05/25/19 59 58
Salomon Brothers Mortgage Securities
VII, Cl A2
7.455%, 07/18/33 109 110
Wachovia Bank Commercial Mortgage,
Ser 2003-C3, Cl A2
4.867%, 02/15/35 150 155
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 18
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
WaMu Mortgage Pass-Through
Certificates, Ser 2004-CB2, Cl 5A
5.000%, 07/25/19 $ 154 $ 143
-------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $2,400) 2,006
=======
COMMERCIAL MORTGAGE-BACKED SECURITIES [2.6%]
Bear Stearns Commercial Mortgage
Security, Ser 2007-PW16,
Cl AM (A)
5.910%, 06/11/40 300 208
Commercial Mortgage, Ser-2006
C8, Cl A2B
5.248%, 12/10/46 185 184
GE Capital Commercial Mortgage,
Ser 2002-3A, Cl A2
4.996%, 12/10/37 150 155
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A4 (A)
5.189%, 07/10/39 200 203
GMAC Commercial Mortgage
Securities, Ser 2003-C1, Cl A2
4.079%, 05/10/36 225 225
GMAC Mortgage Corporation Loan
Trust, Ser 2004-J4, Cl A2
5.500%, 09/25/34 84 83
-------
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $1,135) 1,058
=======
ASSET-BACKED SECURITIES [5.9%]
American Express Credit Account
Master Trust, Cl A (A)
0.310%, 02/15/13 300 299
Bayview Financial Acquisition Trust,
Ser 2007-A, Cl 1A2
6.205%, 05/28/37 200 136
Capital One Multi-Asset Execution
Trust, Ser 2006-A9, Cl A9 (A)
0.260%, 05/15/13 250 249
Chase Issuance Trust, Cl A
4.960%, 09/17/12 400 416
CitiFinancial Mortgage Securities,
Ser 2004-1, Cl AF2 (B)
2.645%, 04/25/34 10 10
Cityscape Home Equity Loan Trust,
Ser 1997-C, Cl A4 (B)
7.000%, 07/25/28 9 9
Contimortgage Home Equity Loan
Trust, Ser 1997-2, Cl A9
7.090%, 04/15/28 2 2
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Countrywide AssetBacked Certificates,
Ser 2006-11, Cl 1AF3 (A)
6.050%, 09/25/46 $ 200 $ 116
Countrywide Asset-Backed Certificates,
Ser 2006-13, Cl 1AF2
5.884%, 01/25/37 200 183
Countrywide Asset-Backed Certificates,
Ser 2007S1, Cl A6 (A)
5.693%, 11/25/36 166 69
GMAC Mortgage Corporation
LoanTrust, Ser 2004-GH1,
Cl A6 (A)
4.810%, 07/25/35 128 99
Green Tree Financial, Ser 1997-7,
Cl A6
6.760%, 07/15/29 86 83
GSAA Home Equity Trust,
Ser 2005-1, Cl AF2 (A)
4.316%, 11/25/34 63 59
John Deere Owner Trust,
Ser 2007-A, Cl A3
5.040%, 07/15/11 39 39
MBNA Master Credit Card Trust,
Cl A
7.800%, 10/15/12 400 417
Renaissance Home Equity,
Ser 2007-1, Cl AF2
5.512%, 04/25/37 200 90
Residential Asset Mortgage Products,
Ser 2002-RS3, Cl AI5 (A)
5.572%, 06/25/32 56 36
Residential Asset Securities,
Ser 2003-KS5, Cl AI6 (A)
3.620%, 07/25/33 141 82
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,837) 2,394
=======
FOREIGN CORPORATE BOND [0.2%]
National Bank of Hungary
8.875%, 11/01/13 75 82
-------
TOTAL FOREIGN CORPORATE BOND
(Cost $78) 82
=======
MUNICIPAL BOND [0.0%]
LOUISIANA [0.0%]
Louisiana State, Tobacco Settlement
Financing Authority, Ser 2001A, RB
6.360%, 05/15/25 5 5
-------
TOTAL MUNICIPAL BOND
(Cost $5) 5
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 19
schedule of investments
SEPTEMBER 30, 2009
AHA FULL MATURITY FIXED INCOME FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
CASH EQUIVALENT [3.4%]
AIM STIT-Treasury Portfolio,
0.060%* 1,361,653 $ 1,362
-------
TOTAL CASH EQUIVALENT
(Cost $1,362) 1,362
=======
TOTAL INVESTMENTS [100.9%]
(Cost $40,444) $40,959
=======
PERCENTAGES ARE BASED ON NET ASSETS OF $40,581,230.
* THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF SEPTEMBER 30, 2009.
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS
IS THE RATE IN EFFECT ON SEPTEMBER 30, 2009.
(B) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON SEPTEMBER 30, 2009.
CL -- CLASS
FFCB -- FEDERAL FARM CREDIT BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
NA -- NATIONAL ASSOCIATION
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
AMOUNTS DESIGNATED AS "--" ARE EITHER ZERO SHARES/$0 OR HAVE BEEN ROUNDED TO
ZERO SHARES/$0.
The following is a summary of the inputs used as of September 30, 2009 in
valuing the Fund's investments carried at value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Corporate Bonds $ -- $16,318 $-- $16,318
U.S. Government Agency
Obligations -- 4,442 -- 4,442
U.S.Treasury Obligations -- 6,202 -- 6,202
U.S. Government
Mortgage-Backed
Obligations -- 7,090 -- 7,090
Mortgage-Backed Securities -- 2,006 -- 2,006
Commercial
Mortgage-Backed
Securities -- 1,058 -- 1,058
Asset-Backed Securities -- 2,394 -- 2,394
Foreign Corporate Bond -- 82 -- 82
Municipal Bond -- 5 -- 5
Cash Equivalent 1,362 -- -- 1,362
------ ------- --- -------
Total Investments in
Securities $1,362 $39,597 $-- $40,959
====== ======= === =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 20
schedule of investments
SEPTEMBER 30, 2009
AHA BALANCED FUND
(BAR CHART)
SECTOR WEIGHTINGS*:
U.S. Treasury Obligations 17.7%
Information Technology - Common Stock 9.5%
U.S. Government Mortgage - Backed Obligations 8.9%
Financials - Common Stock 7.5%
Health Care - Common Stock 7.5%
Industrials - Common Stock 7.3%
Consumer Discretionary - Common Stock 7.0%
Energy - Common Stock 5.4%
Asset-Backed Securities 4.9%
Consumer Staples - Common Stock 4.8%
Mortgage-Backed Securities 4.1%
U.S. Government Agency Obligations 3.9%
Telecommunication Services - Common Stock 2.5%
Utilities - Common Stock 2.4%
Cash Equivalent 2.3%
Commercial Mortgage-Backed Securities 2.0%
Materials - Common Stock 1.6%
Corporate Bonds 0.7%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
COMMON STOCK [55.8%]
AEROSPACE & DEFENSE [2.3%]
General Dynamics 273 $ 18
Goodrich 441 24
Honeywell International 954 35
L-3 Communications Holdings,
Cl 3 134 11
Lockheed Martin 1,281 100
Raytheon 1,636 79
United Technologies 744 45
-------
TOTAL AEROSPACE & DEFENSE 312
=======
AUTOMOTIVE [0.5%]
AutoZone* 115 17
Ford Motor* 7,914 57
-------
TOTAL AUTOMOTIVE 74
=======
BANKS [0.9%]
Bank of America 4,468 76
Fifth Third Bancorp 2,067 21
Wells Fargo 934 26
-------
TOTAL BANKS 123
=======
BEAUTY PRODUCTS [1.0%]
Procter & Gamble 2,466 143
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
BIOTECHNOLOGY [1.1%]
Amgen* 2,122 $ 128
Biogen Idec* 294 15
Cephalon* 98 5
-------
TOTAL BIOTECHNOLOGY 148
=======
BROADCASTING & CABLE [0.5%]
Cisco Systems* 1,430 34
Harris 784 29
-------
TOTAL BROADCASTING & CABLE 63
=======
BUILDING & CONSTRUCTION [0.3%]
DR Horton 3,270 37
=======
BUSINESS SERVICES [0.6%]
Computer Sciences* 1,034 54
eBay* 403 10
Fidelity National Information
Services 145 4
Omnicom Group 222 8
-------
TOTAL BUSINESS SERVICES 76
=======
CHEMICALS [0.2%]
Eastman Chemical 509 27
=======
COMMERCIAL BANKS [0.6%]
BB&T 3,050 83
=======
COMMUNICATION & MEDIA [1.7%]
Comcast, Cl A 6,804 115
Time Warner 1,062 30
Time Warner Cable, Cl A 1,086 47
Viacom, Cl B* 1,531 43
-------
TOTAL COMMUNICATION & MEDIA 235
=======
COMPUTER SOFTWARE [1.5%]
Adobe Systems* 569 19
CA 584 13
Compuware* 3,506 26
Microsoft 5,924 153
-------
TOTAL COMPUTER SOFTWARE 211
=======
COMPUTER SYSTEM DESIGN & SERVICES [4.5%]
Apple* 716 133
Dell* 5,984 91
Hewlett-Packard 1,945 92
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 21
schedule of investments
SEPTEMBER 30, 2009
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
IBM 1,717 $ 206
Lexmark International, Cl A* 2,197 47
Western Digital* 1,155 42
-------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 611
=======
CONSUMER PRODUCTS & SERVICES [0.5%]
Black & Decker 789 36
Kimberly-Clark 472 28
-------
TOTAL CONSUMER PRODUCTS & SERVICES 64
=======
CONTAINERS & PACKAGING [0.3%]
Pactiv* 1,752 46
=======
DIVERSIFIED CONSUMER SERVICES [0.4%]
H&R Block 2,902 53
=======
DIVERSIFIED MANUFACTURING [2.2%]
3M 1,084 80
General Electric 13,676 225
-------
TOTAL DIVERSIFIED MANUFACTURING 305
=======
DIVERSIFIED METALS & MINING [0.7%]
Freeport-McMoRan Copper &
Gold, Cl B 39 3
Newmont Mining 2,006 88
-------
TOTAL DIVERSIFIED METALS & MINING 91
=======
DRUGS [4.3%]
Abbott Laboratories 998 49
AmerisourceBergen, Cl A 188 4
Bristol-Myers Squibb 4,427 100
Forest Laboratories* 1,318 39
Johnson & Johnson 3,114 190
Pfizer 10,232 169
Wyeth 873 42
-------
TOTAL DRUGS 593
=======
ELECTRICAL SERVICES [1.5%]
Ameren 1,831 46
American Electric Power 622 19
DTE Energy 1,411 50
Exelon 1,606 80
FPL Group 62 3
NiSource 170 2
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
Public Service Enterprise
Group 57 $ 2
-------
TOTAL ELECTRICAL SERVICES 202
=======
ENERGY [0.8%]
Edison International 1,343 45
Entergy 551 44
PG&E 462 19
-------
TOTAL ENERGY 108
=======
ENTERTAINMENT [0.6%]
Carnival 2,494 83
=======
FINANCIAL SERVICES [1.6%]
American Express 3,341 113
Discover Financial Services 3,460 56
Hudson City Bancorp 3,559 47
-------
TOTAL FINANCIAL SERVICES 216
=======
FOOD, BEVERAGE & TOBACCO [1.8%]
Coca-Cola 1,329 71
Coca-Cola Enterprises 28 1
General Mills 814 53
Kellogg Company 108 5
PepsiCo 985 58
Safeway 2,747 54
-------
TOTAL FOOD, BEVERAGE & TOBACCO 242
=======
HEALTH CARE TECHNOLOGY [0.5%]
IMS Health 4,205 65
=======
HEALTHCARE PRODUCTS & SERVICES [1.0%]
McKesson 1,557 93
UnitedHealth Group 546 13
Waters* 482 27
-------
TOTAL HEALTHCARE PRODUCTS & SERVICES 133
=======
INDEPENDENT POWER PRODUCERS & ENERGY TRADER [0.2%]
AES* 1,654 24
=======
INSURANCE [1.8%]
Chubb 1,565 79
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 22
schedule of investments
SEPTEMBER 30, 2009
AHA BALANCED FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
Prudential Financial 1,055 $ 53
Tenet Healthcare* 5,527 32
Travelers 1,780 88
-------
TOTAL INSURANCE 252
=======
INVESTMENT BANKER/BROKER DEALER [2.8%]
Federated Investors, Cl B 1,794 47
Goldman Sachs Group 855 158
JPMorgan Chase 4,078 179
-------
TOTAL INVESTMENT BANKER/BROKER DEALER 384
=======
MACHINERY [0.9%]
Caterpillar 730 37
Dover 187 7
Illinois Tool Works 1,702 73
-------
TOTAL MACHINERY 117
=======
MEDICAL PRODUCTS & SERVICES [0.4%]
Becton Dickinson 250 18
Boston Scientific* 14 --
Hospira* 51 2
WellPoint* 693 33
Zimmer Holdings* 57 3
-------
TOTAL MEDICAL PRODUCTS & SERVICES 56
=======
PAPER & RELATED PRODUCTS [0.4%]
International Paper 2,034 45
Sealed Air 227 5
-------
TOTAL PAPER & RELATED PRODUCTS 50
=======
PETROLEUM & FUEL PRODUCTS [5.4%]
ChevronTexaco 1,849 130
ConocoPhillips 199 9
Devon Energy 599 40
Diamond Offshore Drilling 256 25
ENSCO International 1,071 46
Exxon Mobil 2,906 200
Marathon Oil 2,416 77
Murphy Oil 128 7
Noble Energy 530 35
Occidental Petroleum 1,675 131
Rowan 1,826 42
-------
TOTAL PETROLEUM & FUEL PRODUCTS 742
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
PRINTING & PUBLISHING [0.4%]
Pitney Bowes 2,146 $ 53
=======
RAILROADS [0.6%]
Burlington Northern Santa Fe 126 10
CSX 1,630 68
-------
TOTAL RAILROADS 78
=======
REAL ESTATE INVESTMENT TRUST [0.0%]
Equity Residential 154 5
Plum Creek Timber 9 --
-------
TOTAL REAL ESTATE INVESTMENT TRUST 5
=======
RETAIL [4.3%]
AutoNation* 1,580 29
Big Lots* 1,100 27
CVS 1,949 70
Gap 2,931 63
Home Depot 2,431 65
Kroger 2,206 46
McDonald's 697 40
RadioShack 2,506 41
Sherwin-Williams 209 13
SYSCO 463 11
Target 1,510 70
TJX 541 20
Wal-Mart Stores 1,840 90
-------
TOTAL RETAIL 585
=======
SCHOOLS [0.1%]
Apollo Group, Cl A* 272 20
=======
SEMI-CONDUCTORS [1.2%]
Intel 656 13
National Semiconductor 3,151 45
Texas Instruments 4,383 104
-------
TOTAL SEMI-CONDUCTORS 162
=======
TELEPHONES & TELECOMMUNICATIONS [3.2%]
AT&T 5,677 153
Corning 6,162 95
Qwest Communications
International 9,855 38
Verizon Communications 4,866 147
-------
TOTAL TELEPHONES & TELECOMMUNICATIONS 433
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 23
schedule of investments
SEPTEMBER 30, 2009
AHA BALANCED FUND (CONTINUED)
SHARES/FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
TRANSPORTATION SERVICES [0.1%]
Norfolk Southern 123 $ 5
Union Pacific 221 13
-------
TOTAL TRANSPORTATION SERVICES 18
=======
TRUCKING [0.3%]
Ryder System 1,130 44
=======
WASTE MANAGEMENT SERVICES [0.5%]
Waste Management 2,394 71
=======
WEB PORTALS/ISP [1.1%]
Expedia* 1,801 43
Google, Cl A* 189 94
VeriSign* 297 7
-------
TOTAL WEB PORTALS/ISP 144
=======
WHOLESALE [0.2%]
ArcherDanielsMidland 741 22
Campbell Soup 221 7
Dean Foods* 40 1
Hormel Foods 6 --
-------
TOTAL WHOLESALE 30
=======
TOTAL COMMON STOCK
(Cost $7,207) 7,612
=======
U.S. TREASURY OBLIGATIONS [17.7%]
U.S.Treasury Bond
6.250%, 08/15/23 $ 1,025 1,285
U.S.Treasury Notes
3.125%, 08/31/13 700 734
2.250%, 05/31/14 400 401
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,313) 2,420
=======
MORTGAGE-BACKED SECURITIES [4.2%]
Banc of America Alternative Loan
Trust, Ser 2005-6, Cl 7A1
5.500%, 07/25/20 26 23
Chase Mortgage Finance,
Ser 2003-S14, Cl 3A6
5.500%, 01/25/34 32 32
Citicorp Mortgage Securities,
Ser 2004-4, Cl A5
5.500%, 06/25/34 115 113
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Citigroup Mortgage Loan Trust,
Ser 2005-9, Cl 2A2
5.500%, 11/25/35 $ 38 $ 33
Countrywide Alternative Loan Trust,
Ser 2005-50 CB, Cl 4A1
5.000%, 11/25/20 24 19
Countrywide Alternative Loan Trust,
Ser 2006-7 CB, Cl 3A1
5.250%, 05/25/21 40 28
First Horizon CMO, Ser 2006-FA6,
Cl 3A1
5.750%, 11/25/21 51 45
First Union National Bank CMO,
Ser 2001-C4, Cl A2
6.223%, 12/12/33 50 52
JP Morgan Mortgage Trust,
Ser 2007-A2, Cl 2A3 (A)
5.728%, 04/25/37 100 71
JPMorgan Mortgage Trust,
Ser 2006-A7, Cl 2A4R (A)
5.401%, 01/25/37 100 64
Residential Accredit Loans,
Ser 2004-QS5, Cl A5
4.750%, 04/25/34 17 16
Residential Funding Mortgage Securities
I, Ser 2003-S11, Cl A2
4.000%, 06/25/18 75 73
-------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $672) 569
=======
COMMERCIAL MORTGAGE-BACKED SECURITIES [2.0%]
GE Capital Commercial Mortgage,
Ser 2002-3A, Cl A2
4.996%, 12/10/37 100 103
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A4 (A)
5.189%, 07/10/39 75 76
GMAC Commercial Mortgage
Securities, Ser 2003-C1, Cl A2
4.079%, 05/10/36 100 100
-------
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES
(Cost $270) 279
=======
U.S. GOVERNMENT AGENCY OBLIGATION [4.0%]
FNMA
6.000%, 05/15/11 500 541
=======
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(Cost $535) 541
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 24
schedule of investments
SEPTEMBER 30, 2009
AHA BALANCED FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [9.0%]
FHLB, Pool FHLB 00-0582 H, Cl H
4.750%, 10/25/10 $ 166 $ 172
FNMA
2.750%, 03/13/14 500 508
FNMA, Pool 725424
5.500%, 04/01/34 145 152
FNMA, Pool 735230
5.500%, 02/01/35 174 183
FNMA, Pool 745275
5.000%, 02/01/36 205 212
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS
(Cost $1,222) 1,227
=======
CORPORATE BONDS [0.7%]
BANKS [0.3%]
Dresdner Bank - New York
7.250%, 09/15/15 50 48
=======
CONTAINERS & PACKAGING [0.4%]
Pactiv
7.950%, 12/15/25 50 55
=======
TOTAL CORPORATE BONDS
(Cost $109) 103
=======
ASSET-BACKED SECURITIES [5.0%]
Bayview Financial Acquisition Trust,
Ser 2007-A, Cl 1A2
6.205%, 05/28/37 100 68
Capital One Multi-Asset Execution
Trust, Ser 2006-A9, Cl A9 (A)
0.260%, 05/15/13 100 100
Chase Issuance Trust, Cl A (A)
0.253%, 02/15/13 100 99
Countrywide Asset-Backed
Certificates, Ser 2005-13,
Cl AF2 (A)
5.294%, 04/25/36 10 10
Credit-Based Asset Servicing and
Securitization, Ser 2005 CB8,
Cl AF2 (B)
5.300%, 12/25/35 32 29
Discover Card Master Trust I,
Ser 2003-3, Cl A (A)
0.440%, 09/15/12 75 75
FACE AMOUNT
DESCRIPTION (000)/SHARES VALUE (000)
- ----------- ----------------- -----------
GMAC Mortgage Corporation Loan
Trust, Ser 2004-GH1, Cl A6 (A)
4.810%, 07/25/35 $ 64 $ 50
GMAC Mortgage Corporation Loan
Trust, Ser 2004-HE5, Cl A6 (A)
4.390%, 09/25/34 63 40
GMAC Mortgage Corporation Loan
Trust, Ser 2004-J4, Cl A2
5.500%, 09/25/34 42 42
MBNA Master Credit Card Trust,
Cl A
7.800%, 10/15/12 50 52
RAAC, Ser 2004-SP1, Cl AI4 (A)
5.285%, 08/25/27 61 51
Residential Accredit Loans,
Ser 2004-QS6, Cl A1
5.000%, 05/25/19 20 19
Residential Asset Mortgage Products,
Ser 200-RS3, Cl AI5 (A)
5.572%, 06/25/32 65 42
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $778) 677
=======
CASH EQUIVALENT [2.3%]
AIM STIT-Treasury Portfolio,
0.060%+ 309,251 309
=======
TOTAL CASH EQUIVALENT
(Cost $309) 309
=======
TOTAL INVESTMENTS [100.7%]
(Cost $13,415) $13,737
=======
PERCENTAGES ARE BASED ON NET ASSETS OF $13,640,725.
* NON-INCOME PRODUCING SECURITY.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF SEPTEMBER 30, 2009.
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS
IS THE RATE IN EFFECT ON SEPTEMBER 30, 2009.
(B) STEP BOND -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE
IN EFFECT ON SEPTEMBER 30, 2009.
CL -- CLASS
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
FHLB -- FEDERAL HOME LOAN BANK
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
ISP -- INTERNET SERVICE PROVIDER
SER -- SERIES
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 25
schedule of investments
SEPTEMBER 30, 2009
AHA BALANCED FUND (CONCLUDED)
DESCRIPTION
The following is a summary of the inputs used as of September 30, 2009 in
valuing the Fund's investments carried at value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
------- ------- ------- -------
Common Stock $7,612 $ -- $-- $ 7,612
U.S.Treasury Obligations -- 2,420 -- 2,420
Mortgage-Backed Securities -- 569 -- 569
Commercial
Mortgage-Backed
Securities -- 279 -- 279
U.S. Government Agency
Obligation -- 541 -- 541
U.S. Government
Mortgage-Backed
Obligations -- 1,227 -- 1,227
Corporate Bonds -- 103 -- 103
Asset-Backed Securities -- 677 -- 677
Cash Equivalent 309 -- -- 309
------ ------ --- -------
Total Investments in
Securities $7,921 $5,816 $-- $13,737
====== ====== === =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 26
schedule of investments
SEPTEMBER 30, 2009
AHA DIVERSIFIED EQUITY FUND
(BAR CHART)
SECTOR WEIGHTINGS*:
Cash Equivalent 30.1%
Information Technology 14.5%
Financials 10.0%
Health Care 9.7%
Energy 8.8%
Consumer Staples 7.6%
Consumer Discretionary 7.1%
Industrials 5.4%
Materials 3.1%
Telecommunication Services 2.5%
Utilities 1.2%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
COMMON STOCK [97.5%]
AEROSPACE & DEFENSE [1.0%]
General Dynamics 639 $ 41
Goodrich 129 7
Honeywell International 2,013 75
L-3 Communications Holdings,
Cl 3 296 24
Lockheed Martin 2,221 173
Raytheon 3,366 162
United Technologies 1,115 68
-------
TOTAL AEROSPACE & DEFENSE 550
=======
APPAREL/TEXTILES [0.4%]
Coach 3,860 127
Polo Ralph Lauren, Cl A 971 74
-------
TOTAL APPAREL/TEXTILES 201
=======
AUTOMOTIVE [0.4%]
Ford Motor* 13,721 99
Honda Motor, ADR 4,360 132
-------
TOTAL AUTOMOTIVE 231
=======
BANKS [3.1%]
Bank of America 15,940 270
Bank of New York Mellon 5,700 165
Fifth Third Bancorp 12,734 129
M&T Bank 2,900 181
MSCI, Cl A* 5,450 161
US Bancorp 30,800 673
Wells Fargo 6,021 170
-------
TOTAL BANKS 1,749
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
BEAUTY PRODUCTS [0.5%]
Procter & Gamble 5,058 $ 293
=======
BIOTECHNOLOGY [3.0%]
Alexion Pharmaceuticals* 2,580 115
Amgen* 13,781 830
Biogen Idec* 583 30
Cephalon* 105 6
Gilead Sciences* 14,493 675
-------
TOTAL BIOTECHNOLOGY 1,656
=======
BROADCASTING & CABLE [3.5%]
Alcatel-Lucent 44,880 202
Cisco Systems* 43,819 1,031
F5 Networks* 3,520 139
Harris 1,637 62
Qualcomm 12,222 550
-------
TOTAL BROADCASTING & CABLe 1,984
=======
BUILDING & CONSTRUCTION [0.1%]
DR Horton 4,699 54
=======
BUSINESS SERVICES [1.6%]
Computer Sciences* 2,228 117
eBay* 879 21
Mastercard, Cl A 1,070 216
Omnicom Group 113 4
Visa, Cl A 4,900 339
Xerox 28,700 222
-------
TOTAL BUSINESS SERVICES 919
=======
CHEMICALS [0.9%]
Air Products & Chemicals 204 16
Eastman Chemical 1,029 55
Monsanto 3,462 268
Potash Corp of Saskatchewan 2,000 181
-------
TOTAL CHEMICALS 520
=======
COMMERCIAL BANKS [0.3%]
BB&T 6,608 180
=======
COMMUNICATION & MEDIA [1.8%]
Cablevision Systems, Cl A 10,720 254
Comcast, Cl A 12,483 211
Time Warner 13,617 392
Time Warner Cable, Cl A 2,151 93
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 27
schedule of investments
SEPTEMBER 30, 2009
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
Viacom, Cl B* 2,761 $ 77
-------
TOTAL COMMUNICATION & MEDIA 1,027
=======
COMPUTER SOFTWARE [2.9%]
Adobe Systems* 5,222 173
CA 971 21
Microsoft 16,227 420
Oracle 16,400 342
Symantec* 40,100 661
-------
TOTAL COMPUTER SOFTWARE 1,617
=======
COMPUTER SYSTEM DESIGN & SERVICES [5.5%]
Apple* 6,456 1,197
Dell* 33,877 517
Hewlett-Packard 11,230 530
IBM 5,887 704
Lexmark International, Cl A* 3,811 82
Western Digital* 1,873 69
-------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 3,099
=======
COMPUTERS & PERIPHERALS [0.6%]
EMC* 19,025 324
=======
CONSUMER PRODUCTS & SERVICES [1.3%]
Black & Decker 288 14
Clorox 4,050 238
Colgate-Palmolive 3,920 299
Kimberly-Clark 1,016 60
Mattel 7,000 129
-------
TOTAL CONSUMER PRODUCTS & SERVICES 740
=======
CONTAINERS & PACKAGING [0.6%]
Ball 6 --
Crown Holdings* 9,100 248
Owens-Illinois* 444 16
Pactiv* 3,038 79
-------
TOTAL CONTAINERS & PACKAGING 343
=======
DISTRIBUTORS [0.5%]
Genuine Parts 6,888 262
=======
DIVERSIFIED CONSUMER SERVICES [0.2%]
H&R Block 5,032 92
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
DIVERSIFIED MANUFACTURING [2.2%]
3M 5,247 $ 387
General Electric 36,566 600
Parker Hannifin 4,275 222
-------
TOTAL DIVERSIFIED MANUFACTURING 1,209
=======
DIVERSIFIED METALS & MINING [1.8%]
Alcoa 22,470 295
Cliffs Natural Resources 7,900 256
Freeport-McMoRan Copper &
Gold, Cl B 718 49
Newmont Mining 3,478 153
Rio Tinto, ADR 1,360 231
-------
TOTAL DIVERSIFIED METALS & MINING 984
=======
DRUGS [4.5%]
Abbott Laboratories 5,837 289
Allergan 2,520 143
Bristol-Myers Squibb 13,976 315
Forest Laboratories* 445 13
Johnson & Johnson 10,106 615
Mylan* 19,200 307
Pfizer 35,772 592
Teva Pharmaceutical Industries 2,750 139
Wyeth 2,400 117
-------
TOTAL DRUGS 2,530
=======
ELECTRICAL EQUIPMENT [0.5%]
Baldor Electric 10,500 287
=======
ELECTRICAL SERVICES [0.7%]
Ameren 3,174 80
American Electric Power 1,346 42
DTE Energy 2,446 86
Exelon 2,718 135
FPL Group 1,285 71
-------
TOTAL ELECTRICAL SERVICES 414
=======
ENERGY [0.3%]
Edison International 2,858 96
Entergy 572 46
PG&E 441 18
-------
TOTAL ENERGY 160
=======
ENGINEERING SERVICES [0.1%]
Fluor 1,133 58
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 28
schedule of investments
SEPTEMBER 30, 2009
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
ENTERTAINMENT [0.9%]
Carnival 4,359 $ 145
International Game Technology 7,860 169
Wynn Resorts* 3,000 213
-------
TOTAL ENTERTAINMENT 527
=======
FINANCIAL SERVICES [2.1%]
American Express 5,794 196
Charles Schwab 20,180 386
Discover Financial Services 5,056 82
Hudson City Bancorp 4,081 54
IntercontinentalExchange* 2,620 255
Nasdaq Stock Market* 12,000 253
-------
TOTAL FINANCIAL SERVICES 1,226
=======
FOOD, BEVERAGE & TOBACCO [4.7%]
Coca-Cola 7,194 386
Coca-Cola Enterprises 1,753 38
ConAgra Foods 14,525 315
Del Monte Foods 31,500 365
General Mills 6,761 435
Pepsi Bottling Group 16 1
PepsiCo 17,343 1,017
Safeway 4,764 94
-------
TOTAL FOOD, BEVERAGE & TOBACCO 2,651
=======
GAS/NATURAL GAS [0.4%]
Questar 5,610 211
=======
HEALTH CARE TECHNOLOGY [0.2%]
IMS Health 7,031 108
=======
HEALTHCARE PRODUCTS & SERVICES [2.8%]
Express Scripts, Cl A* 4,730 367
McKesson 7,994 476
Medtronic 6,900 254
Patterson* 10,665 291
Pharmaceutical Product
Development 4,700 103
UnitedHealth Group 994 25
Waters* 1,113 62
-------
TOTAL HEALTHCARE PRODUCTS & SERVICES 1,578
=======
HOUSEHOLD FURNITURE & FIXTURES [0.5%]
Pulte Homes 24,180 266
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
INDUSTRIAL [0.2%]
Robert Half International 5,150 $ 129
=======
INSURANCE [3.2%]
Chubb 9,820 495
Hartford Financial Services
Group 9,030 239
HCC Insurance Holdings 15,500 424
Marsh & McLennan 7,850 194
Tenet Healthcare* 6,694 40
Travelers 3,286 162
Unum Group 11,300 242
-------
TOTAL INSURANCE 1,796
=======
INVESTMENT BANKER/BROKER DEALER [4.3%]
Ameriprise Financial 7,620 277
BlackRock, Cl A 1,690 366
Federated Investors, Cl B 1,364 36
Fortress Investment Group,
Cl A* 18,940 99
Goldman Sachs Group 3,554 655
JPMorgan Chase 9,456 414
Morgan Stanley 6,175 191
T Rowe Price Group 7,550 345
-------
TOTAL INVESTMENT BANKER/BROKER DEALER 2,383
=======
MACHINERY [1.2%]
Caterpillar 5,307 273
Cummins 3,420 153
Illinois Tool Works 1,507 64
Joy Global 3,700 181
-------
TOTAL MACHINERY 671
=======
MANUFACTURING [0.8%]
Tyco International 12,650 436
=======
MEDICAL PRODUCTS & SERVICES [3.1%]
Becton Dickinson 2,931 204
Covidien 8,750 378
Intuitive Surgical* 510 134
Laboratory Corp of America
Holdings* 3,200 210
Quest Diagnostics 5,800 303
St. Jude Medical* 5,050 197
Stryker 4,750 216
WellPoint* 1,454 69
-------
TOTAL MEDICAL PRODUCTS & SERVICEs 1,711
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 29
schedule of investments
SEPTEMBER 30, 2009
AHA DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
METALS & MINING [0.4%]
Barrick Gold 6,250 $ 237
=======
OFFICE EQUIPMENT & SUPPLIES [0.2%]
Avery Dennison 3,500 126
=======
OFFICE FURNITURE & FIXTURES [0.3%]
Salesforce.com* 2,710 154
=======
PAPER & RELATED PRODUCTS [0.6%]
International Paper 2,465 55
Sealed Air 13,382 262
-------
TOTAL PAPER & RELATED PRODUCTS 317
=======
PERSONAL PRODUCTS [0.5%]
Avon Products 7,430 252
=======
PETROLEUM & FUEL PRODUCTS [12.3%]
Anadarko Petroleum 7,482 469
Cameron International* 9,110 344
Chesapeake Energy 8,700 247
ChevronTexaco 3,648 257
ConocoPhillips 6,207 280
Devon Energy 944 64
Diamond Offshore Drilling 627 60
Enbridge 4,500 175
ENSCO International 1,964 83
Exterran Holdings* 12,300 292
Exxon Mobil 5,040 346
Marathon Oil 3,388 108
Murphy Oil 283 16
Newfield Exploration* 6,200 264
Noble Energy 408 27
Occidental Petroleum 8,009 628
PetroHawk Energy* 9,610 233
Petroleo Brasileiro, ADR 8,760 402
Rowan 3,493 81
Royal Dutch Shell, Cl B 4,750 265
Southwestern Energy* 6,360 271
Spectra Energy 16,100 305
Transocean* 6,205 531
Unit* 8,900 367
Valero Energy 6,200 120
Weatherford International* 17,350 360
Williams 14,750 264
-------
TOTAL PETROLEUM & FUEL PRODUCTS 6,859
=======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
PRINTING & PUBLISHING [0.1%]
Pitney Bowes 2,562 $ 64
=======
RAILROADS [0.1%]
Burlington Northern Santa Fe 280 22
CSX 681 29
-------
TOTAL RAILROADS 51
=======
REAL ESTATE INVESTMENT TRUST [0.3%]
Digital Realty Trust 3,390 155
Equity Residential 271 8
Plum Creek Timber 11 1
-------
TOTAL REAL ESTATE INVESTMENT TRUST 164
=======
REAL ESTATE MANAGEMENT & DEVELOPMENT [0.6%]
Brookfield Asset Management,
Cl A 15,900 361
=======
RETAIL [7.2%]
AutoNation* 2,736 49
Best Buy 6,175 232
Big Lots* 2,256 56
CVS 12,442 445
Gap 5,075 109
Guess ? 4,250 157
Home Depot 3,386 90
Kohl's* 9,900 565
Kroger 3,459 71
Limited Brands 2,183 37
Lowe's 9,450 198
McDonald's 1,258 72
RadioShack 4,587 76
Sherwin-Williams 452 27
Staples 10,700 248
Supervalu 19,800 298
SYSCO 1,371 34
Target 4,000 187
TJX 1,100 41
Walgreen 8,900 334
Wal-Mart Stores 10,462 514
Whole Foods Market* 6,390 195
-------
TOTAL RETAIL 4,035
=======
SCHOOLS [0.2%]
Apollo Group, Cl A* 1,160 85
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 30
schedule of investments
SEPTEMBER 30, 2009
AHA DIVERSIFIED EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
SEMI-CONDUCTORS [3.2%]
Applied Materials 47,590 $ 638
ASML Holding, Cl G GDR 8,020 237
Broadcom, Cl A* 9,490 291
Intel 1,138 22
Lam Research* 10,330 353
National Semiconductor 3,868 55
Texas Instruments 7,599 180
-------
TOTAL SEMI-CONDUCTORS 1,776
=======
TELECOMMUNICATIONS EQUIPMENT [0.6%]
Nokia, ADR 22,300 326
=======
TELEPHONES & TELECOMMUNICATIONS [3.8%]
America Movil, ADR 4,950 217
AT&T 27,732 749
China Unicom Hong Kong,
ADR 18,560 264
Corning 10,685 164
Millicom International
Cellular* 1,460 106
Qwest Communications
International 17,089 65
Verizon Communications 17,713 536
-------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,101
=======
TRANSPORTATION SERVICES [0.7%]
CH Robinson Worldwide 2,440 141
FedEx 3,325 250
Norfolk Southern 278 12
Union Pacific 280 16
-------
TOTAL TRANSPORTATION SERVICES 419
=======
TRUCKING [0.1%]
Ryder System 1,958 76
=======
WASTE MANAGEMENT SERVICES [0.2%]
Waste Management 4,485 134
=======
WATER UTILITIES [0.3%]
Aqua America 8,000 141
=======
WEB PORTALS/ISP [2.6%]
Amazon.com* 4,590 429
Expedia* 2,474 59
Google, Cl A* 1,565 776
Juniper Networks* 6,850 185
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
VeriSign* 524 $ 12
-------
TOTAL WEB PORTALS/ISP 1,461
=======
WHOLESALE [0.5%]
Archer-Daniels-Midland 10,043 293
=======
TOTAL COMMON STOCK
(Cost $52,108) 54,608
=======
CASH EQUIVALENT [42.1%]
AIM STIT-Treasury Portfolio,
0.060%+ 23,570,276 23,570
=======
TOTAL CASH EQUIVALENT
(Cost $23,570) 23,570
=======
TOTAL INVESTMENTS [139.6%]
(Cost $75,678) $78,178
=======
PERCENTAGES ARE BASED ON NET ASSETS OF $55,984,753.
* NON-INCOME PRODUCING SECURITY.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF SEPTEMBER 30, 2009.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
GDR -- GLOBAL DEPOSITARY RECEIPT
ISP -- INTERNET SERVICE PROVIDER
The following is a summary of the inputs used as of September 30, 2009 in
valuing the Fund's investments carried at value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- ------------------------- ------- ------- ------- -------
Common Stock $54,608 $-- $-- $54,608
Cash Equivalent 23,570 -- -- 23,570
------- --- --- -------
Total Investments in
Securities $78,178 $-- $-- $78,178
======= === === =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 31
schedule of investments
SEPTEMBER 30, 2009
AHA SOCIALLY RESPONSIBLE EQUITY FUND
(BAR CHART)
SECTOR WEIGHTINGS*:
Financials 19.8%
Health Care 17.7%
Energy 14.4%
Information Technology 13.2%
Consumer Staples 9.7%
Industrials 8.0%
Materials 6.0%
Consumer Discretionary 5.5%
Cash Equivalent 4.9%
Telecommunication Services 0.8%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
COMMON STOCK [95.1%]
ADVERTISING [2.6%]
CBS, Cl B 117,000 $1,410
======
BANKS [7.6%]
BOK Financial 10,000 463
M&T Bank 17,000 1,060
UMB Financial 13,500 546
US Bancorp 68,000 1,487
Wells Fargo 18,000 507
------
TOTAL BANKS 4,063
======
CHEMICALS [2.1%]
EI du Pont de Nemours 35,000 1,125
======
COMPUTER SOFTWARE [5.9%]
Microsoft 60,000 1,553
Symantec* 95,000 1,565
------
TOTAL COMPUTER SOFTWARE 3,118
======
COMPUTER SYSTEM DESIGN & SERVICES [2.7%]
Dell* 95,000 1,450
======
CONSUMER PRODUCTS & SERVICES [4.2%]
Clorox 20,500 1,206
Kimberly-Clark 18,000 1,061
------
TOTAL CONSUMER PRODUCTS & SERVICES 2,267
======
DISTRIBUTORS [1.8%]
Genuine Parts 25,000 951
======
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
ELECTRICAL EQUIPMENT [3.9%]
Baldor Electric 17,500 $ 479
Emerson Electric 40,000 1,603
------
TOTAL ELECTRICAL EQUIPMENT 2,082
======
FINANCIAL SERVICES [4.0%]
IntercontinentalExchange* 7,000 680
Nasdaq Stock Market* 45,000 947
NYSE Euronext 18,000 520
------
TOTAL FINANCIAL SERVICES 2,147
======
HEALTHCARE PRODUCTS & SERVICES [10.2%]
Cardinal Health 37,000 992
McKesson 31,000 1,846
Patterson* 60,000 1,635
Pharmaceutical Product Development 45,000 987
------
TOTAL HEALTHCARE PRODUCTS & SERVICES 5,460
======
HOUSEHOLD FURNITURE & FIXTURES [1.0%]
Whirlpool 8,000 560
======
INSURANCE [4.8%]
Chubb 20,000 1,008
Marsh & McLennan 62,500 1,545
------
TOTAL INSURANCE 2,553
======
MANUFACTURING [3.0%] 1,582
======
MEDICAL PRODUCTS & SERVICES [7.5%]
CareFusion* 12,500 272
Covidien 30,575 1,323
Laboratory Corp of America Holdings* 14,000 920
Quest Diagnostics 29,000 1,513
------
TOTAL MEDICAL PRODUCTS & SERVICES 4,028
======
METALS & MINING [1.8%]
Worthington Industries 70,000 973
======
OFFICE EQUIPMENT & SUPPLIES [1.2%]
Avery Dennison 18,000 648
======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 32
schedule of investments
SEPTEMBER 30, 2009
AHA SOCIALLY RESPONSIBLE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- ----------------- -----------
PAPER & RELATED PRODUCTS [2.0%]
Packaging Corp of America 53,500 $ 1,091
=======
PETROLEUM & FUEL PRODUCTS [14.4%]
ConocoPhillips 32,000 1,445
Exterran Holdings* 60,000 1,425
Patterson-UTI Energy 112,000 1,691
Spectra Energy 80,000 1,515
Unit* 40,000 1,650
-------
TOTAL PETROLEUM & FUEL PRODUCTS 7,726
=======
REAL ESTATE MANAGEMENT & DEVELOPMENT [3.4%]
Brookfield Asset Management, Cl A 80,000 1,817
=======
RETAIL [5.5%]
Supervalu 87,000 1,310
Walgreen 43,000 1,611
-------
TOTAL RETAIL 2,921
=======
SEMI-CONDUCTORS [2.2%]
Intel 59,000 1,155
=======
TELECOMMUNICATIONS EQUIPMENT [2.5%]
Nokia, ADR 93,000 1,360
=======
TELEPHONES & TELECOMMUNICATIONS [0.8%]
Verizon Communications 14,000 424
=======
TOTAL COMMON STOCK
(Cost $54,006) 50,911
=======
CASH EQUIVALENT [4.9%]
AIM STIT-Government Tax
Advantage Portfolio, Institutional
Class, 0.050%+ 2,601,617 2,602
=======
TOTAL CASH EQUIVALENT
(Cost $2,602) 2,602
=======
TOTAL INVESTMENTS [100.0%]
(Cost $56,608) $53,513
=======
PERCENTAGES ARE BASED ON NET ASSETS OF $53,506,835.
* NON-INCOME PRODUCING SECURITY.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF SEPTEMBER 30, 2009.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
The following is a summary of the inputs used as of September 30, 2009 in
valuing the Fund's investments carried at value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- ------------------------- ------- ------- ------- -------
Common Stock $50,911 $-- $-- $50,911
Cash Equivalent 2,602 -- -- 2,602
------- --- --- -------
Total Investments in
Securities $53,513 $-- $-- $53,513
======= === === =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 33
statements of assets and liabilities (000)
SEPTEMBER 30, 2009
AHA AHA AHA
Limited Full AHA Socially
Maturity Maturity AHA Diversified Responsible
Fixed Income Fixed Income Balanced Equity Equity
Fund Fund Fund Fund Fund
------------ ------------ ----------- ----------- -----------
ASSETS:
Cost of securities $ 37,812 $ 40,444 $ 13,415 $ 75,678 $ 56,608
=========== =========== =========== =========== ===========
Investments in securities at value $ 38,605 $ 40,959 $ 13,737 $ 78,178 $ 53,513
Dividend and interest receivable 343 361 45 53 60
Receivable for capital shares sold 4 3 -- 17 29
Receivable for investment securities sold -- 124 -- 1,256 --
Prepaid expenses 1 1 -- 1 1
----------- ----------- ----------- ----------- -----------
Total Assets 38,953 41,448 13,782 79,505 53,603
=========== =========== =========== =========== ===========
LIABILITIES:
Investment advisor fees payable 17 18 8 47 32
Distribution fees payable 2 1 -- -- 1
Administrative fees payable 2 2 1 3 2
Payable for capital shares redeemed -- 1 -- 21,931 38
Income distribution payable 23 23 -- -- --
Payable for investment securities
purchased 165 797 125 1,503 --
Other payables -- 8 1 -- --
Other accrued expenses 18 17 6 36 23
----------- ----------- ----------- ----------- -----------
Total Liabilities 227 867 141 23,520 96
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 38,726 $ 40,581 $ 13,641 $ 55,985 $ 53,507
=========== =========== =========== =========== ===========
NET ASSETS:
Paid-in Capital
(unlimited authorization --
$0.01 par value) $ 40,922 $ 39,877 $ 15,879 $ 79,562 $ 65,380
Undistributed (distributions in excess of)
net investment income (1) (1) 5 -- 3
Accumulated net realized gain (loss)
on investments (2,988) 190 (2,565) (26,077) (8,781)
Net unrealized appreciation (depreciation)
on investments 793 515 322 2,500 (3,095)
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 38,726 $ 40,581 $ 13,641 $ 55,985 $ 53,507
=========== =========== =========== =========== ===========
Institutional Class Shares ($ Dollars):
Net Assets $37,254,644 $39,494,729 $13,640,725 $50,424,663 $52,405,767
Total shares outstanding at end of period 3,367,723 3,775,426 1,907,373 4,504,928 6,388,284
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 11.06 $ 10.46 $ 7.15 $ 11.19 $ 8.20
Class N Shares ($ Dollars):
Net Assets $ 1,470,980 $ 1,086,501 N/A $ 5,560,090 $ 1,101,068
Total shares outstanding at end of period 132,824 103,918 N/A 495,367 134,404
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 11.07 $ 10.46 N/A $ 11.22 $ 8.19
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 34
THIS PAGE INTENTIONALLY LEFT BLANK.
statements of operations (000)
FOR THE YEAR ENDED SEPTEMBER 30, 2009
AHA Limited Maturity Fixed AHA Full Maturity Fixed
Income Fund Income Fund
-------------------------- -----------------------
INVESTMENT INCOME:
Interest $1,306 $1,971
Dividends 5 4
Foreign taxes withheld -- --
------ ------
Total Investment Income 1,311 1,975
------ ------
EXPENSES:
Investment Advisory Fees 192 209
Administration Fees 18 20
Trustees' Fees and Expenses 1 2
Shareholder Servicing Fees -- Class N Shares 2 2
Distribution Expense -- Class N Shares 2 2
Transfer Agent Fees and Expenses 39 46
Reports to Shareholders 11 12
Custodian Fees and Expenses 10 12
Professional Fees 5 6
Registration Fees 4 1
Insurance and Other Expenses 13 7
------ ------
Total Expenses 297 319
------ ------
Recovery of Investment Advisory Fees Previously Waived(1) 9 --
Less Waiver of:
Shareholder Servicing Fees -- Class N Shares (2) (2)
Distribution Expenses -- Class N Shares -- --
Advisory Fees (11) --
Transfer Agent Fees (3) (3)
------ ------
Net Expenses 290 314
------ ------
NET INVESTMENT INCOME 1,021 1,661
------ ------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Investments (559) 725
Change in Net Unrealized Appreciation on Investments 2,569 1,503
------ ------
Net Realized and Unrealized Gain (Loss) on Investments 2,010 2,228
------ ------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $3,031 $3,889
====== ======
(1) SEE NOTE 3 FOR ADVISORY FEES RECOVERED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 36
AHA Socially Responsible
AHA Balanced Fund AHA Diversified Equity Fund Equity Fund
----------------- --------------------------- ------------------------
$ 220 $ -- $ --
173 1,408 1,172
-- (8) (14)
------- -------- -------
393 1,400 1,158
------- -------- -------
92 492 321
6 31 20
-- 2 2
-- 13 2
-- 13 2
13 66 44
4 20 7
3 17 11
2 9 6
-- 2 1
2 10 6
------- -------- -------
122 675 422
------- -------- -------
3 -- --
-- (2) (2)
-- (11) --
(1) -- --
(1) (5) (4)
------- -------- -------
123 657 416
------- -------- -------
270 743 742
------- -------- -------
(1,826) (17,983) (7,553)
1,325 11,578 1,221
------- -------- -------
(501) (6,405) (6,332)
------- -------- -------
$ (231) $ (5,662) $(5,590)
======= ======== =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 37
statements of changes in net assets (000)
FOR THE YEAR ENDED SEPTEMBER 30,
AHA Limited Maturity AHA Full Maturity
Fixed Income Fund Fixed Income Fund
-------------------- -----------------
2009 2008 2009 2008
---- ---- ---- ----
OPERATIONS:
Net Investment Income $ 1,021 $ 2,643 $ 1,661 $ 1,884
Net Realized Gain (Loss) on Investments Sold (559) 175 725 (124)
Change in Net Unrealized Appreciation
(Depreciation) on Investments 2,569 (1,857) 1,503 (1,027)
-------- -------- ------- -------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations 3,031 961 3,889 733
-------- -------- ------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to Shareholders from Net Investment Income:
INSTITUTIONAL CLASS (1,022) (2,664) (1,627) (1,867)
CLASS N (23) (12) (30) (25)
Distributions to Shareholders from Net Realized Gains:
INSTITUTIONAL CLASS -- -- -- --
CLASS N -- -- -- --
Return of Capital:
INSTITUTIONAL CLASS -- -- -- --
CLASS N -- -- -- --
-------- -------- ------- -------
Total Dividends and Distributions to Shareholders (1,045) (2,676) (1,657) (1,892)
-------- -------- ------- -------
FUND SHARE TRANSACTIONS:
FUND SHARE TRANSACTIONS: INSTITUTIONAL CLASS
Net Proceeds from Shares Sold 2,957 63,962 713 332
Reinvestment of Dividends 690 2,170 1,272 1,285
Cost of Shares Redeemed (61,014) (16,107) (7,255) --
-------- -------- ------- -------
Total Fund Share Transactions Institutional Class (57,367) 50,025 (5,270) 1,617
-------- -------- ------- -------
FUND SHARE TRANSACTIONS: CLASS N
Net Proceeds from Shares Sold 1,117 417 594 597
Reinvestment of Dividends 23 12 23 16
Cost of Shares Redeemed (146) (301) (264) (136)
-------- -------- ------- -------
Total Fund Share Transactions Class N 994 128 353 477
-------- -------- ------- -------
Net Increase (Decrease) in Net Assets from
Capital Share Contributions (56,373) 50,153 (4,917) 2,094
-------- -------- ------- -------
Total Increase (Decrease) in Net Assets (54,387) 48,438 (2,685) 935
-------- -------- ------- -------
NET ASSETS:
Beginning of period 93,113 44,675 43,266 42,331
-------- -------- ------- -------
End of period* 38,726 93,113 40,581 43,266
======== ======== ======= =======
*Including Undistributed (Distributions in excess of)
Net Investment Income of $ (1) $ -- $ (1) $ (1)
======== ======== ======= =======
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 38
AHA Socially
AHA Balanced AHA Diversified Resposible
Fund Equity Fund Equity Fund
------------------ ------------------- ------------------
2009 2008 2009 2008 2009 2008
------- ------- -------- -------- ------- --------
$ 270 $ 367 $ 743 $ 915 $ 742 $ 832
(1,826) (591) (17,983) (5,928) (7,553) (1,221)
1,325 (1,808) 11,578 (18,893) 1,221 (9,649)
------- ------- -------- -------- ------- --------
(231) (2,032) (5,662) (23,906) (5,590) (10,038)
------- ------- -------- -------- ------- --------
(270) (375) (718) (862) (782) (795)
-- -- (46) (66) (14) (10)
-- (890) -- (12,355) -- (2,724)
-- -- -- (1,315) -- (37)
-- -- (5) -- -- --
-- -- -- -- -- --
------- ------- -------- -------- ------- --------
(270) (1,265) (769) (14,598) (796) (3,566)
------- ------- -------- -------- ------- --------
-- -- 8,974 9,453 10,490 17,318
270 284 649 8,905 782 3,519
-- -- (28,487) (10,675) (5,813) (10,663)
------- ------- -------- -------- ------- --------
270 284 (18,864) 7,683 5,459 10,174
------- ------- -------- -------- ------- --------
-- -- 284 349 679 491
-- -- 45 1,360 14 47
-- -- (1,148) (1,421) (400) (198)
------- ------- -------- -------- ------- --------
-- -- (819) 288 293 340
------- ------- -------- -------- ------- --------
270 284 (19,683) 7,971 5,752 10,514
------- ------- -------- -------- ------- --------
(231) (3,013) (26,114) (30,533) (634) (3,090)
------- ------- -------- -------- ------- --------
13,872 16,885 82,099 112,632 54,141 57,231
------- ------- -------- -------- ------- --------
13,641 13,872 55,985 82,099 53,507 54,141
======= ======= ======== ======== ======= ========
$ 5 $ 4 $ -- $ 18 $ 3 $ 52
======= ======= ======== ======== ======= ========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 39
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE YEAR ENDED SEPTEMBER 30, (UNLESS OTHERWISE INDICATED)
NET
NET REALIZED AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS (LOSSES) FROM NET FROM VALUE
BEGINNING INVESTMENT ON INVESTMENT REALIZED END TOTAL
OF PERIOD INCOME(1)(3) INVESTMENTS(1) INCOME GAINS OF PERIOD RETURN
--------- ------------ -------------- ---------- ------------- --------- ------
AHA Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on December 22,1988)
2009 $10.49 $0.30 $ 0.57 $(0.30) $ -- $11.06 8.44%
2008 10.59 0.37 (0.10) (0.37) -- 10.49 2.54
2007 10.56 0.45 0.03 (0.45) -- 10.59 4.63
2006@ 10.57 0.34 0.02 (0.37) -- 10.56 3.49
For the period July 1, through September 30,
2005+ 10.61 0.06 (0.04) (0.06) -- 10.57 0.20(5)
For the year ended June 30,
2005 10.68 0.22 (0.06) (0.22)(4) (0.01) 10.61 1.53
Class N (commenced operations on October 22, 2004)
2009 $10.51 $0.27 $ 0.57 $(0.28) $ -- $11.07 8.07%
2008 10.61 0.35 (0.10) (0.35) -- 10.51 2.29
2007 10.57 0.42 0.04 (0.42) -- 10.61 4.47
2006@ 10.58 0.30 0.03 (0.34) -- 10.57 3.17
For the period July 1, through September 30,
2005+ 10.62 0.05 (0.04) (0.05) -- 10.58 0.13(5)
For the period October 22, 2004 through June 30,
2005 10.77 0.14 (0.13) (0.15)(4) (0.01) 10.62 0.12(5)
AHA Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2009 $ 9.90 $0.40 $ 0.56 $(0.40) $ -- $10.46 9.95%
2008 10.16 0.44 (0.26) (0.44) -- 9.90 1.76
2007 10.16 0.45 -- (0.45) -- 10.16 4.48
2006@@ 10.35 0.43 (0.13) (0.43) (0.06) 10.16 3.03
For the period July 1, through September 30,
2005+ 10.50 0.09 (0.15) (0.09) -- 10.35 (0.57)(5)
For the year ended June 30,
2005 10.39 0.38 0.20 (0.38) (0.09) 10.50 5.72
Class N (commenced operations on May 11, 2004)
2009 $ 9.89 $0.39 $ 0.56 $(0.38) $ -- $10.46 9.79%
2008 10.16 0.42 (0.27) (0.42) -- 9.89 1.42
2007 10.16 0.42 -- (0.42) -- 10.16 4.23
2006@@ 10.36 0.40 (0.13) (0.41) (0.06) 10.16 2.67
For the period July 1, through September 30,
2005+ 10.50 0.08 (0.14) (0.08) -- 10.36 (0.54)(5)
For the year ended June 30,
2005 10.39 0.34 0.22 (0.36) (0.09) 10.50 5.46
AHA Balanced Fund
Institutional Class (commenced operations on October 20, 1988)
2009 $ 7.44 $0.14 $(0.29) $(0.14) $ -- $ 7.15 (1.75)%
2008 9.23 0.20 (1.30) (0.20) (0.49) 7.44 (12.68)
2007 9.77 0.23 0.62 (0.23) (1.16) 9.23 9.47
2006@@@ 9.76 0.18 0.59 (0.18) (0.58) 9.77 8.32
For the period July 1, through September 30,
2005+ 9.62 0.04 0.14 (0.04) -- 9.76 1.87(5)
For the year ended June 30,
2005 8.98 0.16 0.64 (0.16) -- 9.62 8.97
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS RATIO
NET BEFORE AFTER OF NET
ASSETS WAIVERS WAIVERS INVESTMENT
END & & INCOME PORTFOLIO
OF PERIOD RECOVERED RECOVERED TO AVERAGE TURNOVER
(000) FEES(2) FEES(2)* NET ASSETS(2) RATE(3)
--------- ---------- ---------- ------------- ---------
AHA Limited Maturity Fixed Income Fund
Institutional Class (commenced operations on December 22,1988)
2009 $ 37,255 0.76% 0.75% 2.66% 98%
2008 92,681 0.67 0.76 3.44 79
2007 44,365 0.77 0.76 4.25 76
2006@ 45,340 0.94 0.75 3.24 86
For the period July 1, through September 30,
2005+ 112,381 0.88(6) 0.86(6) 2.20(6) 4
For the year ended June 30,
2005 128,501 0.79 0.78 2.01 109
Class N (commenced operations on October 22, 2004)
2009 $ 1,471 1.24% 1.00% 2.29% 98%
2008 432 0.92 1.00 3.24 79
2007 310 1.02 1.00 3.99 76
2006@ 358 1.18 1.00 2.88 86
For the period July 1, through September 30,
2005+ 822 1.11(6) 1.10(6) 1.95(6) 4
For the period October 22, 2004 through June 30,
2005 1,070 1.07(6) 1.03(6) 1.75(6) 109
AHA Full Maturity Fixed Income Fund
Institutional Class (commenced operations on October 20, 1988)
2009 $ 39,495 0.75% 0.75% 3.97% 56%
2008 42,579 0.64 0.64 4.32 34
2007 42,096 0.73 0.79 4.48 55
2006@@ 30,398 0.87 0.80 4.20 91
For the period July 1, through September 30,
2005+ 31,764 0.83(6) 1.00(6) 3.37(6) 17
For the year ended June 30,
2005 31,960 0.95 1.00 3.58 144
Class N (commenced operations on May 11, 2004)
2009 $ 1,086 1.26% 1.00% 3.70% 56%
2008 687 0.89 0.89 4.02 34
2007 235 0.99 1.04 4.23 55
2006@@ 145 1.12 1.05 3.95 91
For the period July 1, through September 30,
2005+ 134 1.08(6) 1.25(6) 3.12(6) 17
For the year ended June 30,
2005 134 1.20 1.25 3.33 144
AHA Balanced Fund
Institutional Class (commenced operations on October 20, 1988)
2009 $ 13,641 0.99% 1.00% 2.19% 90%
2008 13,872 0.91 1.00 2.42 88
2007 16,885 1.00 1.00 2.45 128
2006@@@ 17,836 1.11 1.00 1.83 74
For the period July 1, through September 30,
2005+ 18,352 1.10(6) 0.98(6) 1.54(6) 14
For the year ended June 30,
2005 18,088 1.25 1.20 1.69 99
+ THE FUND'S FISCAL AND TAX YEAR-END CHANGED FROM JUNE 30 TO SEPTEMBER 30.
@ ON OCTOBER 3, 2005, THE LIMITED MATURITY FIXED INCOME FUND WAS REORGANIZED
INTO THE AHA LIMITED MATURITY FIXED INCOME FUND, A NEWLY ESTABLISHED SERIES
OF THE CNI CHARTER FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR
MORE INFORMATION.
@@ ON OCTOBER 3, 2005, THE FULL MATURITY FIXED INCOME FUND WAS REORGANIZED
INTO THE AHA FULL MATURITY FIXED INCOME FUND, A NEWLY ESTABLISHED SERIES OF
THE CNI CHARTER FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR MORE
INFORMATION.
@@@ ON OCTOBER 3, 2005, THE BALANCED FUND WAS REORGANIZED INTO THE AHA BALANCED
FUND, A NEWLY ESTABLISHED SERIES OF THE CNI CHARTER FUNDS. SEE NOTE 1 IN
NOTES TO FINANCIAL STATEMENTS FOR MORE INFORMATION.
* RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED.THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
(1) INFORMATION PRESENTED RELATES TO A SHARE OF CAPITAL STOCK OUTSTANDING FOR
THE ENTIRE PERIOD.
(2) RATIOS INCLUDE ALL MANAGEMENT FEES AND EXPENSES.
(3) CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT DISTINGUISHING
BETWEEN THE CLASSES OF SHARES ISSUED. FOR PERIODS LESS THAN 1 YEAR,
PORTFOLIO TURNOVER RATE HAS NOT BEEN ANNUALIZED.
(4) INCLUDES A TAX RETURN OF CAPITAL WHICH IS LESS THAN $0.01 PER SHARE, FOR
THE FUND FOR THE YEAR ENDED JUNE 30, 2005.
(5) NOT ANNUALIZED.
(6) ANNUALIZED.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 40
NET
NET REALIZED AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS (LOSSES) FROM NET FROM VALUE
BEGINNING INVESTMENT ON INVESTMENT REALIZED END TOTAL
OF PERIOD INCOME(3) INVESTMENTS(3) INCOME GAINS OF PERIOD RETURN
--------- ------------ -------------- ---------- ------------- --------- ------
AHA Diversified Equity Fund
Institutional Class (commenced operations on October 20, 1988)
2009 $12.19 $0.11 $(1.00) $(0.11)** $ -- $11.19 (7.08)%
2008 18.48 0.14 (3.84) (0.14) (2.45) 12.19 (22.73)
2007 18.17 0.18 1.89 (0.18) (1.58) 18.48 11.93
2006@ 17.42 0.15 1.55 (0.15) (0.80) 18.17 10.16
For the period July 1, through September 30,
2005+ 16.79 0.02 0.63 (0.02) -- 17.42 3.88(5)
For the year ended June 30,
2005 15.39 0.13 1.40 (0.13) -- 16.79 9.95
Class N (commenced operations on December 30, 2002)
2009 $12.22 $0.09 $(1.00) $(0.09) $ -- $11.22 (7.30)%
2008 18.52 0.11 (3.85) (0.11) (2.45) 12.22 (22.93)
2007 18.21 0.13(7) 1.89 (0.13) (1.58) 18.52 11.62
2006@ 17.46 0.11 1.55 (0.11) (0.80) 18.21 9.87
For the period July 1, through September 30,
2005+ 16.83 0.01 0.63 (0.01) -- 17.46 3.81(5)
For the year ended June 30,
2005 15.43 0.09 1.40 (0.09) -- 16.83 9.66
AHA Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2009 $ 9.51 $0.12 $(1.30) $(0.13) $ -- $ 8.20 (12.11)%
2008 12.12 0.16 (2.04) (0.15) (0.58) 9.51 (16.24)
2007 10.91 0.14 1.36 (0.14) (0.15) 12.12 13.89
2006@@ 10.28 0.12 0.67 (0.11) (0.05) 10.91 7.69
For the period July 1, through September 30,
2005+ 9.70 0.02 0.58 (0.02) -- 10.28 6.20(5)
For the period January 3, through June 30,
2005 10.00 0.05 (0.30) (0.05) -- 9.70 (2.48)(5)
Class N (commenced operations on August 12, 2005)
2009 $ 9.50 $0.11 $(1.31) $(0.11) $ -- $ 8.19 (12.34)%
2008 12.11 0.14 (2.05) (0.12) (0.58) 9.50 (16.46)
2007 10.90 0.12 1.36 (0.11) (0.16) 12.11 13.64
2006@@ 10.28 0.09 0.67 (0.09) (0.05) 10.90 7.40
For the period August 12, through September 30,
2005 10.17 0.01 0.12 (0.02) -- 10.28 1.27(5)
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE
NET ASSETS NET ASSETS RATIO
NET BEFORE AFTER OF NET
ASSETS WAIVERS WAIVERS INVESTMENT
END AND AND INCOME PORTFOLIO
OF PERIOD RECOVERED RECOVERED TO AVERAGE TURNOVER
(000) FEES(2)(3) FEES(2)(3)* NET ASSETS(2)(3) RATE(4)
--------- ---------- ---------- ---------------- ---------
AHA Diversified Equity Fund
Institutional Class (commenced operations on October 20, 1988)
2009 $ 50,425 0.99% 0.98% 1.15% 93%
2008 74,997 0.94 0.97 0.98 143
2007 102,232 1.02 0.99 0.98 116
2006@ 94,653 1.09 1.01 0.87 99
For the period July 1, through September 30,
2005+ 81,447 1.08(6) 1.13(6) 0.46(6) 20
For the year ended June 30,
2005 81,510 1.07 1.05 0.78 128
Class N (commenced operations on December 30, 2002)
2009 $ 5,560 1.49% 1.23% 0.91% 93%
2008 7,102 1.19 1.22 0.74 143
2007 10,400 1.24 1.27 0.73 116
2006@ 11,122 1.34 1.26 0.62 99
For the period July 1, through September 30,
2005+ 9,451 1.34(6) 1.38(6) 0.20(6) 20
For the year ended June 30,
2005 8,842 1.32 1.30 0.53 128
AHA Socially Responsible Equity Fund
Institutional Class (commenced operations on January 3, 2005)
2009 $ 52,406 0.98% 0.97% 1.74% 48%
2008 53,256 0.90 0.99 1.51 41
2007 56,490 1.00 0.94 1.19 29
2006@@ 45,003 1.12 1.04 1.10 29
For the period July 1, through September 30,
2005+ 21,795 1.24(6) 1.15(6) 0.90(6) 7
For the period January 3, through June 30,
2005 20,510 1.16(6) 1.12(6) 1.43(6) 48
Class N (commenced operations on August 12, 2005)
2009 $ 1,101 1.48% 1.22% 1.49% 48%
2008 885 1.15 1.24 1.26 41
2007 741 1.25 1.19 0.94 29
2006@@ 281 1.37 1.29 0.80 29
For the period August 12, through September 30,
2005 15 1.69(6) 1.43(6) 0.74(6) 7
+ THE FUND'S FISCAL AND TAX YEAR-END CHANGED FROM JUNE 30 TO SEPTEMBER 30.
@ ON OCTOBER 3, 2005, THE DIVERSIFIED EQUITY FUND WAS REORGANIZED INTO THE
AHA DIVERSIFIED EQUITY FUND, A NEWLY ESTABLISHED SERIES OF THE CNI CHARTER
FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR MORE INFORMATION.
@@ ON OCTOBER 3, 2005, THE SOCIALLY RESPONSIBLE EQUITY FUND WAS REORGANIZED
INTO THE AHA SOCIALLY RESPONSIBLE EQUITY FUND, A NEWLY ESTABLISHED SERIES
OF THE CNI CHARTER FUNDS. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR
MORE INFORMATION.
* RATIO INCLUDES WAIVERS AND PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED.THE IMPACT OF THE RECOVERED FEES MAY CAUSE A HIGHER NET EXPENSE
RATIO.
** INCLUDES RETURN OF CAPITAL OF $0.01 PER SHARE.
(1) INFORMATION PRESENTED RELATES TO A SHARE OF CAPITAL STOCK OUTSTANDING FOR
THE ENTIRE PERIOD.
(2) RATIOS INCLUDE ALL MANAGEMENT FEES AND EXPENSES.
(3) FOR THE PERIOD FROM NOVEMBER 1, 2001 THROUGH JUNE 30, 2003, THE FUND
INVESTED SUBSTANTIALLY ALL OF ITS ASSETS IN A SEPARATE SERIES OF A MUTUAL
FUND CALLED THE CCM ADVISORS FUNDS (THE "MASTER PORTFOLIO"), AND AS A
RESULT, THE PER SHARE AMOUNTS AND PERCENTAGES REFLECT INCOME AND EXPENSES
ASSUMING INCLUSION OF THE FUND'S PROPORTIONATE SHARE OF INCOME AND EXPENSES
IN THE MASTER PORTFOLIO.
THE MASTER PORTFOLIO HAD SUBSTANTIALLY SIMILAR OBJECTIVES, STRATEGIES AND
POLICIES AS THE FUND.
(4) CALCULATED ON THE BASIS OF THE FUND AS A WHOLE WITHOUT DISTINGUISHING
BETWEEN THE CLASSES OF SHARES ISSUED. FOR PERIODS LESS THAN 1 YEAR,
PORTFOLIO TURNOVER RATE HAS NOT BEEN ANNUALIZED.
(5) NOT ANNUALIZED.
(6) ANNUALIZED.
(7) PER SHARE CALCULATIONS ARE BASED ON THE AVERAGE SHARES OUTSTANDING
THROUGHOUT THE PERIOD.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
AHA INVESTMENT FUNDS | PAGE 41
notes to financial statements
SEPTEMBER 30, 2009
1. ORGANIZATION
The AHA Investment Funds (the "AHA Funds") are series of CNI Charter Funds (the
"Trust"), which is registered as an open-end management investment company under
the Investment Company Act of 1940. The Trust was organized as a business trust
under the laws of Delaware on October 28, 1996. Each of the AHA Funds commenced
operations on October 3, 2005, the effective date of the reorganization of each
corresponding series (each a "Predecessor Fund" and collectively the
"Predecessor Funds") of AHA Investment Funds, Inc. (the "AHA Company"), a
registered investment company organized on March 14, 1988 under the laws of
Maryland. On May 17, 2005, the Board of Directors of the AHA Company approved
the reorganization of the Predecessor Funds into the newly established
corresponding AHA Fund series of the Trust.
The AHA Funds currently offer the following series of shares: the AHA Limited
Maturity Fixed Income Fund (the "Limited Maturity Fund"), the AHA Full Maturity
Fixed Income Fund (the "Full Maturity Fund"), the AHA Balanced Fund (the
"Balanced Fund"), the AHA Diversified Equity Fund (the "Diversified Fund"), and
the AHA Socially Responsible Equity Fund (the "Socially Responsible Fund") (each
a "Fund" and, collectively, the "Funds"). The shares of common stock of the
Funds are divided into two classes: Class N Shares and Institutional Class
Shares. As of September 30, 2009, only the Institutional Class Shares of the
Funds and the Class N Shares of the Limited Maturity Fund, the Full Maturity
Fund, the Diversified Fund, and the Socially Responsible Fund had commenced
operations.
Expenses related to the reorganization and reimbursements to CCM Advisors, LLC
for reorganization related expenses were incurred and paid by the Funds. These
amounts were subject to recapture through the year ended September 30, 2009.
2. SIGNIFICANT ACCOUNTING POLICIES
FINANCIAL ACCOUNTING STANDARDS BOARD ("FASB") LAUNCHES ACCOUNTING STANDARDS
CODIFICATION -- The FASB has issued FASB ASC 105 (formerly FASB Statement No.
168),THE "FASB ACCOUNTING STANDARDS CODIFICATION(TM)" AND THE HIERARCHY OF
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("ASC 105"). ASC 105 established the
FASB Accounting Standards Codification(TM) ("Codification" or "ASC") as the
single source of authoritative U.S. generally accepted accounting principles
("GAAP") recognized by the FASB to be applied by non-governmental entities.
Rules and interpretive releases of the Securities and Exchange Commission
("SEC") under authority of federal securities laws are also sources of
authoritative GAAP for SEC registrants. The Codification supersedes all existing
non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC
accounting literature not included in the Codification will become
non-authoritative.
Following the Codification, the FASB will not issue new standards in the form of
Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts.
Instead, it will issue Accounting Standards Updates, which will serve to update
the Codification, provide background information about the guidance and provide
the basis for conclusions on the changes to the Codification.
GAAP is not intended to be changed as a result of the FASB's Codification
project, but it will change the way the guidance is organized and presented. As
a result, these changes will have a significant impact on how companies
reference GAAP in their financial statements and in their accounting policies
for financial statements issued for interim and annual periods ending after
September 15, 2009. The Trust has implemented the Codification as of September
30, 2009.
USE OF ESTIMATES -- The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
SECURITY VALUATION -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on the
primary exchange or market (foreign or domestic) on which they are traded, or,
if there is no such reported sale, at the most recent quoted bid price. For
securities traded on NASDAQ, the NASDAQ Official Closing Price is used. If
available, debt securities are priced based upon valuations provided by
independent, third-party pricing agents. Such values generally reflect the last
reported sales price if the security is actively traded. The third-party pricing
agents may also value debt securities at an evaluated bid price by employing
methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value for
such securities. Debt obligations, including money market funds, 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.
Investments in registered investment companies
AHA INVESTMENT FUNDS | PAGE 42
are priced at the Funds' daily net asset value. 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 Trust's Board of
Trustees. The Trust's Fair Value Procedures are implemented through a Fair Value
Committee (the "Committee") designated by the Trust's Board of Trustees. Some of
the more common reasons that may necessitate that a security be valued using
Fair Value Procedures include: the security's trading has been halted or
suspended; the security has been de-listed from a national exchange; the
security's primary trading market is temporarily closed at a time when under
normal conditions it would be open; for international securities, market events
occur after the close of the foreign markets that make closing prices not
representative of fair values; or the security's primary pricing source is not
able or willing to provide a price. When a security is valued in accordance with
the Fair Value Procedures, the Committee will determine the value after taking
into consideration relevant information reasonably available to the
Committee. The Funds held no fair valued securities as of September 30, 2009.
ASC 820 (formerly known as FAS No. 157 "Fair Value Measurements") establishes a
fair value hierarchy and specifies that a valuation technique used to measure
fair value shall maximize the use of observable inputs and minimize the use of
unobservable inputs. The objective of a fair value measurement is to determine
the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date (an exit price). Accordingly, the fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for
identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The three levels of the fair value hierarchy
under ASC 820 are described below:
- Level 1 -- Unadjusted quoted prices in active markets for identical,
unrestricted assets or liabilities that the Funds have the ability to
access at the measurement date;
- Level 2 -- Quoted prices which are not active, or inputs that are
observable (either directly or indirectly) for substantially the full
term of the asset or liability; and
- Level 3 -- Prices, inputs or exotic modeling techniques which are both
significant to the fair value measurement and unobservable (supported
by little or no market activity).
As required by ASC 820, investments are classified within the level of the
lowest significant input considered in determining fair value. Investments
classified within Level 3 whose fair value measurement considers several inputs
may include Level 1 or Level 2 inputs as components of the overall fair value
measurement. For the year ended September 30, 2009, there have been no
significant changes to the Funds' fair valuation methodologies.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are accounted
for on the trade date of the security purchase or sale. Costs used in
determining net realized capital gains and losses on the sale of securities are
those of the specific securities sold. Interest income is recognized on an
accrual basis and dividend income is recognized on the ex-dividend date.
Purchase discounts and premiums on securities held by the Funds are accreted and
amortized to maturity using the scientific method.
EXPENSE ALLOCATION -- Common expenses incurred by the Funds are allocated among
the Funds (i) based upon relative average daily net assets,(ii) as incurred on a
specific identification basis, or (iii) equally among the Funds, depending on
the nature of the expenditure.
CLASSES -- Class-specific expenses are borne by the class. Income, non
class-specific expenses, and realized and unrealized gains/losses are allocated
to the respective classes on the basis of relative net asset value each day.
FUND DISTRIBUTIONS -- The Limited Maturity Fund and the Full Maturity Fund
declare and pay income dividends from net investment income monthly.
The Balanced Fund, the Diversified Fund and the Socially Responsible Fund
declare and pay, dividends from net investment income quarterly. Distributions
from net realized capital gains are distributed to shareholders at least
annually.
3. INVESTMENT ADVISOR AND SUB-ADVISOR AGREEMENTS
The Funds have an Investment Management Agreement dated October 1, 2005 (the
"Agreement") with CCM Advisors, LLC (the "Advisor"), an affiliate of City
National Asset Management, Inc. ("CNAM, Inc."), with which certain officers and
trustees of the Funds are affiliated, to furnish investment advisory services to
the Funds. Under the terms of the Agreement, the Funds compensate the Advisor
for its management services at the annual rate of 0.50% of each Fund's average
daily net assets for the Limited Maturity Fund and the Full Maturity Fund, and
the annual rate of 0.75% of each Fund's average daily net assets for the
Balanced Fund, Diversified Fund and Socially
AHA INVESTMENT FUNDS | PAGE 43
notes to financial statements
SEPTEMBER 30, 2009
Responsible Fund. Effective November 1, 2006, the Advisor has contractually
agreed to pay all operating expenses in excess of the annual rates presented
below as applied to each Fund's average daily net assets.
Expense Cap (as a % of average daily net assets)
Limited Full Socially
Maturity Maturity Balanced Diversified Responsible
Fund Fund Fund Fund Fund
-------- -------- -------- ----------- -----------
Institutional Class 1.00% 1.00% 1.00% 1.25% 1.25%
Class N 1.25% 1.25% N/A 1.50% 1.50%
Any fee reductions or expense reimbursements may be repaid to the Advisor within
three years after occurrence, subject to certain restrictions and only if such
repayments do not cause the Funds' expense ratios, at the time of repayment, to
exceed the amounts shown in the preceding table.
During the year ended September 30, 2009, the Board of Trustees approved the
reimbursement of previously waived fees to the Advisor in the amount of $8,719
and $2,856 in the Limited Maturity Fund and the Balanced Fund, respectively.
As of September 30, 2009, fees which were previously waived by the Advisor which
may be subject to possible future reimbursement to the Advisor were as follows:
Potential Amount of
Fund Recovery (000) Expiration
- ---- ------------------- ----------
Limited Maturity Fund $ 3 2010
11 2012
Balanced Fund 1 2011
1 2012
THE PATTERSON CAPITAL CORPORATION and CNAM, INC. act as the sub-advisors with
respect to the Limited Maturity Fund and are paid by the Advisor.
ROBERT W. BAIRD & CO., INCORPORATED and BOYD WATTERSON ASSET MANAGEMENT, LLC act
as sub-advisors with respect to the AHA Full Maturity Fund and are paid by the
Advisor.
ROBERT W. BAIRD & CO., INCORPORATED and FREEMAN INVESTMENT MANAGEMENT CO., LLC
act as sub-advisors with respect to the Balanced Fund and are paid by the
Advisor.
AMBS INVESTMENT COUNSEL, LLC, FREEMAN INVESTMENT MANAGEMENT, CO., LLC, SKBA
CAPITAL MANAGEMENT, LLC and TURNER INVESTMENT PARTNERS, INC. act as sub-advisors
with respect to the Diversified Fund and are paid by the Advisor.
SKBA CAPITAL MANAGEMENT, LLC acts as the sub-advisor with respect to the
Socially Responsible Fund and is paid by the Advisor.
4. ADMINISTRATION,TRANSFER AGENT DISTRIBUTION AND SHAREHOLDER SERVICES
AGREEMENTS
Pursuant to an administration agreement dated April 1, 1999, as amended (the
"Agreement"), SEI Investments Global Funds Services (the "Administrator"), a
wholly owned subsidiary of SEI Investments Company, acts as the AHA Funds'
administrator. Effective with the reorganization into the CNI Charter Funds on
October 3, 2005, under the terms of the Agreement, the Administrator is entitled
to receive an annual fee of 0.065% of aggregate average daily net assets of the
Trust not exceeding $2.5 billion, 0.045% of aggregate average daily net assets
of the Trust exceeding $2.5 billion but not exceeding $5 billion, 0.025% of
aggregate average daily net assets of the Trust exceeding $5 billion, but not
exceeding $7.5 billion, and 0.02% of aggregate average net assets of the Trust
exceeding $7.5 billion.
The AHA Funds have adopted a Rule 12b-1 Distribution Plan ("the Plan") with
respect to Class N Shares that allows each Fund to pay distribution and
servicing fees. SEI Investments Distribution Co. (the "Distributor"), as
compensation for its services under the Plan, receives a distribution fee,
computed daily and paid monthly, at the annual rate of 0.25% of the average
daily net assets of the Class N Shares of each Fund.
SEI Investments Management Corporation (the "Transfer Agent") serves as transfer
agent for the Trust and provides services at an annual rate of $15,000 per share
class. The Transfer Agent has voluntarily agreed to waive these fees. Citigroup
Fund Services, LLC serves as sub-transfer agent for the AHA Funds and provides
services at an annual rate of $14,000 per share class plus other transaction
based fees and out of pocket expenses.
The Trust has entered into a Shareholder Servicing Agreement that permits
payment of compensation to CCM Advisors, LLC ("CCMA"), which provides certain
shareholder support for its customers who own Class N Shares. In consideration
for such services, a shareholder servicing fee is charged at the annual rate of
up to 0.25% of each Fund's average daily net assets. CCMA has agreed to
voluntarily waive portions of its shareholder servicing fees with respect to
certain Funds. For the year ended September 30, 2009, CCMA received Shareholder
Servicing fees from the Trust in the amount of $10,741.
Certain officers of the Trust are also officers of the Advisor, CNAM, Inc. or
the Administrator. Such officers are paid no fees by the Trust or the AHA Funds
for serving as officers of the Funds.
AHA INVESTMENT FUNDS | PAGE 44
5. FEDERAL INCOME TAXES
It is each Fund's policy to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code and each Fund intends to
distribute its investment company net taxable income and net capital gains to
shareholders. Therefore, no Federal income tax provision is required.
Management has analyzed the Funds' tax position taken on federal income tax
returns for all open tax years and has concluded that as of September 30, 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 yea rs 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. As a result, net investment income (loss) and net realized
gain (loss) on investment transactions for a reporting period may differ
significantly from distributions during such period. These book/tax differences
may be temporary or permanent. To the extent these differences are permanent in
nature, they are charged or credited to paid-in-capital, undistributed net
investment income (loss), or accumulated net realized gain (loss), as
appropriate, in the period that the differences arise. Accordingly, the
following permanent differences, primarily attributable to paydown reclasses,
REIT adjustments, distribution reclasses, partnership adjustment and return of
capital have been reclassified to/from the following accounts as of September
30, 2009:
Increase Increase
(Decrease) (Decrease) Increase
Undistributed Accumulated (Decrease)
Net Investment Net Realized Paid in
Income (Loss) Gain (Loss) Capital
Fund (000) (000) (000)
- ---- -------------- ------------ ----------
Limited Maturity Fund $23 $(23) $--
Full Maturity Fund (4) 4 --
Balanced Fund 1 (1) --
Diversified Fund 3 (3) --
Socially Responsible Fund 5 (5) --
These reclassifications had no impact on net assets or net asset value per
share.
The tax character of dividends and distributions declared during the years ended
September 30, 2009 and September 30, 2008 are shown below (000s):
Ordinary Long-term Return of
Income Capital Gain Capital Total
Fund (000) (000) (000) (000)
- ---- -------- ------------ --------- -------
Limited Maturity Fund
September 2009 $1,045 $ -- $-- $ 1,045
September 2008 2,676 -- -- 2,676
Full Maturity Fund
September 2009 $1,657 $ -- $-- $ 1,657
September 2008 1,892 -- -- 1,892
Balanced Fund
September 2009 $ 270 $ -- $-- $ 270
September 2008 714 551 -- 1,265
Diversified Fund
September 2009 $ 764 $ -- $ 5 $ 769
September 2008 5,167 9,431 -- 14,598
Socially Responsible Fund
September 2009 $ 796 $ -- $-- $ 796
September 2008 1,565 2,001 -- 3,566
As of September 30, 2009, the components of Accumulated Losses on a tax basis
were as follows (000s):
Undistributed Undistributed Capital Unrealized Other Total
Ordinary Long-term Loss Post-October Appreciation Temporary Accumulated
Income Capital Gain Carryforwards Losses (Depreciation) Difference Losses
Fund (000) (000) (000) (000) (000) (000) (000)
- ---- ------------- ------------- ------------- ------------ -------------- ---------- -----------
Limited Maturity Fund $ 73 $ -- $ (2,488) $ (501) $ 793 $ (73) $ (2,196)
Full Maturity Fund 124 194 -- -- 510 (124) 704
Balanced Fund 6 -- (835) (1,627) 218 -- (2,238)
Diversified Fund -- -- (10,584) (13,909) 916 -- (23,577)
Socially Responsible Fund 3 -- (2,242) (6,539) (3,095) -- (11,873)
During the year ended September 30, 2009, the following Funds utilized capital
loss carryforwards to offset capital gains amounting to (000):
Full Maturity Fund $397
Post-October losses represent losses realized on investments and foreign
currency transactions from November 1, 2008 through September 30, 2009 that, in
accordance with Federal income tax regulations, the Funds have elected to defer
and treat as having arisen in the following fiscal year.
AHA INVESTMENT FUNDS | PAGE 45
notes to financial statements
SEPTEMBER 30, 2009
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,
2009, the breakdown of capital loss carryforwards was as follows (000s):
Expiring
----------------------------------------------------------
2012 2013 2014 2015 2016 2017 Total
Fund (000) (000) (000) (000) (000) (000) (000)
- ---- ----- ----- ----- ------ ----- ------- -------
Limited Maturity Fund $22 $838 $132 $1,415 $-- $ 81 $ 2,488
Balanced Fund -- -- -- -- -- 835 835
Diversified Equity -- -- -- -- -- 10,584 10,584
Socially Responsible -- -- -- -- 81 2,161 2,242
The Federal tax cost, the aggregate gross unrealized appreciation on securities,
the aggregate gross unrealized depreciation on securities and the net unrealized
appreciation/(depreciation) for tax purposes at September 30, 2009 for each of
the Funds were as follows (000s):
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
Fund (000) (000) (000) (000)
- ---- -------- ------------ ------------ --------------
Limited Maturity Fund $37,812 $ 805 $ (12) $ 793
Full Maturity Fund 40,449 1,662 (1,152) 510
Balanced Fund 13,519 1,026 (808) 218
Diversified Fund 77,262 6,599 (5,683) 916
Socially Responsible Fund 56,608 4,718 (7,813) (3,095)
6. CAPITAL SHARE TRANSACTIONS (000s):
The share transactions for the years ended September 30, 2009 and September 30,
2008 were as follows:
Limited Maturity Full Maturity Balanced
Fund (000) Fund (000) Fund (000)
---------------- ------------- ----------
2009 2008 2009 2008 2009 2008
------ ------ ---- ---- ---- ----
INSTITUTIONAL CLASS
Shares Sold 274 5,951 69 33 -- --
Shares Issued in Reinvestment
of Dividends 64 203 126 126 42 36
Shares Redeemed (5,805) (1,508) (722) -- -- --
------ ----- ---- --- --- ---
Total Net Change (5,467) 4,646 (527) 159 42 36
====== ===== ==== === === ===
CLASS N
Shares Sold 103 39 58 58
Shares Issued in Reinvestment
of Dividends 2 1 2 1
Shares Redeemed (13) (28) (26) (13)
--- --- --- ---
Total Net Change 92 12 34 46
=== === === ===
Socially
Diversified Responsible
Fund (000) Fund (000)
------------- --------------
2009 2008 2009 2008
------ ---- ----- -----
INSTITUTIONAL CLASS
Shares Sold 929 630 1,511 1,635
Shares Issued in Reinvestment
of Dividends 71 585 115 324
Shares Redeemed (2,649) (593) (836) (1,021)
------ ---- ---- ------
Total Net Change (1,649) 622 790 938
====== ==== ===== ======
CLASS N
Shares Sold 30 24 95 47
Shares Issued in Reinvestment
of Dividends 5 89 2 4
Shares Redeemed (121) (93) (56) (19)
------ ---- ---- ------
Total Net Change (86) 20 41 32
====== ==== ===== ======
AHA INVESTMENT FUNDS | PAGE 46
7. SECURITIES TRANSACTIONS
Purchases and sales and maturities of investment securities, other than
short-term investments, for the year ended September 30, 2009 were as follows:
Purchases Sales & Maturities
------------------- --------------------
U.S. Gov't Other U.S. Gov't Other
Fund (000) (000) (000) (000)
- ---- ---------- ------ ---------- ------
Limited Maturity Fund 19,652 17,785 59,109 31,457
Full Maturity Fund 12,512 9,618 16,014 10,506
Balanced Fund 2,412 9,392 890 9,581
Diversified Fund -- 59,782 -- 78,725
Socially Responsible Fund -- 25,532 -- 19,731
8. INVESTMENT RISKS
In the normal course of business, the Funds enter into contracts that provide
general indemnifications by the Funds to the counterparty to the contract. The
Funds' maximum exposure under these arrangements is dependent on future claims
that may be made against the Funds and, therefore, cannot be established;
however, based on experience, the risk of loss from such claim is considered
remote.
ASC 815 (formerly known as FAS No. 161 "Disclosures about Derivative Instruments
and Hedging Activities") was adopted by the Trust effective April 1, 2009. ASC
815 requires enhanced disclosures about the Funds' derivative and hedging
activities, including how such activities are accounted for and their effect on
the Funds' financial position, performance, and cash flows. For the year ended
September 30, 2009 there was no derivative activity requiring additional
disclosure.
9. SUBSEQUENT EVENTS
The Trust has evaluated the need for disclosures and/or adjustments resulting
from subsequent events through November 25, 2009, the date the financial
statements were issued. Based on this evaluation, no adjustments were required
to the financial statements as of September 30, 2009.
AHA INVESTMENT FUNDS | PAGE 47
report of independent registered public accounting firm
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF CNI CHARTER FUNDS:
We have audited the accompanying statements of assets and liabilities of the AHA
Investment Funds, a series of the CNI Charter Funds, comprised of the AHA
Limited Maturity Fixed Income Fund, AHA Full Maturity Fixed Income Fund, AHA
Balanced Fund, AHA Diversified Equity Fund and AHA Socially Responsible Equity
Fund, (collectively, the "Funds"), including the schedules of investments, as of
September 30, 2009, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the four-year period then ended and the period from July 1, 2005 through
September 30, 2005. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights for the period presented prior to July 1, 2005,
were audited by another independent registered public accounting firm, whose
report dated August 15, 2005, expressed an unqualified opinion thereon.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2009, by correspondence with the custodian
and brokers or other appropriate auditing procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
AHA Investment Funds, a series of the CNI Charter Funds as of September 30,
2009, the results of their operations for the year then ended, changes in their
net assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the four-year period then ended
and the period from July 1, 2005 through September 30, 2005, in conformity with
U.S. generally accepted accounting principles.
KPMG LLP
Philadelphia, Pennsylvania
November 25, 2009
AHA INVESTMENT FUNDS | PAGE 48
trustees and officers (UNAUDITED)
SEPTEMBER 30, 2009
Information pertaining to the Trustees and Officers of the Trust is set forth
below as of September 30, 2009. Trustees who are not deemed to be "interested
persons" of the Trust as defined in the Investment Company Act of 1940 are
referred to as "Independent Trustees." Trustees who are deemed to be "interested
persons" of the Trust are referred to as "Interested Trustees". The Trust's
Statement of Additional Information ("SAI") includes additional information
about the Trustees and Officers. The SAI may be obtained without charge by
calling 1-888-889-0799.
TERM OF NUMBER OF
OFFICE AND PORTFOLIOS IN OTHER
NAME POSITION(S) LENGTH OF FUND COMPLEX DIRECTORSHIPS
ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY
AND AGE(1) TRUST SERVED(2) DURING PAST FIVE YEARS BOARD MEMBER(3) TRUSTEE(4)
- ----------------------- ----------- ---------- ------------------------------------------- --------------- -------------
INTERESTED TRUSTEE
Vernon C. Kozlen Trustee Since President and Chief Executive Officer, 17 None
CNI Charter Funds May 2007 CNI Charter Funds (2000-2007).
400 N. Roxbury Drive Executive Vice President and Director of
Beverly Hills, CA 90210 Asset Management Development, CNB
Age: 66 (1996-2007). Director, Reed, Conner &
Birdwell LLC (2000-present), and Convergent
Capital Management, LLC (2003-present).
Chairman of the Board, CNAM, Inc.
(2001-2005). Chairman of the Board,
City National Securities, Inc. (1999-2005).
Director, CNAM, Inc. (2001-2006), and
City National Securities, Inc. (1999-2006).
INDEPENDENT TRUSTEES
Irwin G. Barnet, Esq. Trustee Since 1999 Attorney and partner, Reed Smith LLP, 17 None
Age: 71 a law firm (2003-present). Attorney and
principal, Crosby, Heafey, Roach &
May P.C., a law firm (2000-2002 ).
Attorney and principal, Sanders, Barnet,
Goldman, Simons & Mosk, a law firm
(1980-2000).
Victor Meschures Trustee Since 1999 Certified Public Accountant, Meschures, 17 None
Age: 71 Campeas, Thompson, Snyder, Pocras, Lerint
and Dimaggio LLP, an accounting firm
(1964-present).
William R. Sweet Trustee Since 1999 Retired. Executive Vice President, 17 None
Age: 72 Union Bank of California (1985-1996).
James Wolford Trustee Since 1999 Chief Financial Officer, Bixby Land 17 None
Age: 55 Company, a real estate company (2004-
present). Regional Financial Officer,
AIMCO, a real estate investment trust
(2004). Chief Financial Officer, DBM Group,
a direct mail marketing company
(2001-2004). Senior Vice President and Chief
Operating Officer, Forecast Commercial Real
Estate Service, Inc. (2000-2001). Senior
Vice President and Chief Financial Officer,
Bixby Ranch Company (1985-2000).
- ----------
1 Each trustee may be contacted by writing to the Trustee c/o CNI Charter
Funds, One Freedom Valley Drive, Oaks, PA 19456.
2 Each trustee shall hold office during the lifetime of this Trust until he
or she dies, resigns, is declared bankrupt or incompetent by a court of
appropriate jurisdiction, or is removed, or, if sooner, until the next
meeting of shareholders is called for the purpose of electing trustees and
until the election and qualification of his or her successor in accordance
with the Trust's Declaration of Trust. The president, treasurer and
secretary shall hold office until their respective successors are chosen or
qualified, or until their removal or resignation, or in each case until he
or she sooner dies, resigns, is removed, or becomes disqualified in
accordance with the Trust's by-laws.
3 The "Fund Complex" consists of all series of the Trust. As of September 30,
2009, the Fund Complex consisted of 17 Funds.
4 Directorships of companies required to report to the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (i.e.,
"public companies") or other investment companies registered under the 1940
Act.
AHA INVESTMENT FUNDS | PAGE 49
trustees and officers (UNAUDITED) (CONCLUDED) SEPTEMBER 30, 2009
TERM OF
OFFICE AND
NAME POSITION LENGTH OF
ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S)
AND AGE TRUST SERVED DURING PAST FIVE YEARS
- ------------------------ --------------- ---------- -----------------------------------------------------------------------
OFFICERS
Timothy D. Barto Vice President Since Attorney, Vice President and Assistant Secretary of SEI Investments
SEI Investments and Assistant 2000 (1999-Present). Vice President and Assistant Secretary of Administrator
One Freedom Valley Drive Secretary (1999-Present). Officer of various investment companies administered by
Oaks, PA 19456 Administrator (1999-2004). Assistant Secretary of the Distributor
Age: 41 (2003-2004). Vice President of the Distributor (1999-2004).
Eric Kleinschmidt Controller and Since Director of Fund Accounting, SEI Investments (2004-Present). Manager
SEI Investments Chief Operating 2005 of Fund Accounting, SEI Investments (1999-2004).
One Freedom Valley Drive Officer
Oaks, PA 19456
Age: 41
Valerie Y. Lewis Vice President Since Chief Compliance Officer, CNAM, Inc. (August, 2005-present). Fund
City National Bank and Chief 2005 Boards Specialist -- Assistant Secretary, Capital Research and
400 N. Roxbury Drive Compliance Management and Company Capital International, Inc. (1999-2005).
Beverly Hills, CA 90210 Officer
Age: 53
James Ndiaye Vice President Since Attorney, SEI Investments Company (2004-present). Vice President,
SEI Investments and Assistant 2005 Deutsche Asset Management (2003-2004). Associate, Morgan Lewis &
One Freedom Valley Drive Secretary Bockius LLP (2000-2003). Assistant Vice President, ING Variable
Oaks, PA 19456 Annuities Group (1999-2000).
Age: 41
Michael T. Pang Vice President Since Attorney, SEI Investments Company (2005-present). Counsel, Caledonian
SEI Investments and Assistant 2005 Bank & Trust's Mutual Funds Group (2004-2005). Counsel, Permal Asset
One Freedom Valley Drive Secretary Management (2001-2004). Associate, Schulte, Roth & Zabel's Investment
Oaks, PA 19456 Management Group (2000-2001).
Age: 37
- ----------
1 Each trustee may be contacted by writing to the Trustee c/o CNI Charter
Funds, One Freedom Valley Drive, Oaks, PA 19456.
2 Each trustee shall hold office during the lifetime of this Trust until he
or she dies, resigns, is declared bankrupt or incompetent by a court of
appropriate jurisdiction, or is removed, or, if sooner, until the next
meeting of shareholders is called for the purpose of electing trustees and
until the election and qualification of his or her successor in accordance
with the Trust's Declaration of Trust. The president, treasurer and
secretary shall hold office until their respective successors are chosen or
qualified, or until their removal or resignation, or in each case until he
or she sooner dies, resigns, is removed, or becomes disqualified in
accordance with the Trust's by-laws.
3 The "Fund Complex" consists of all series of the Trust. As of September 30,
2009, the Fund Complex consisted of 17 Funds.
4 Directorships of companies required to report to the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (i.e.,
"public companies") or other investment companies registered under the 1940
Act.
AHA INVESTMENT FUNDS | PAGE 50
TERM OF
OFFICE AND
NAME POSITION LENGTH OF
ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S)
AND AGE TRUST SERVED DURING PAST FIVE YEARS
- ------------------------ --------------- ---------- -----------------------------------------------------------------------
OFFICERS (CONCLUDED)
Rodney J. Olea Vice President Since Senior Vice President, CNAM, Inc. (2001-present). Senior Vice President
City National Bank 2000 and Director of Fixed Income, CNB (1994-present).
400 N. Roxbury Drive
Beverly Hills, CA 90210
Age: 44
Joseph Gallo Vice President Since Attorney for SEI Investments since 2007. Associate Counsel at ICMA--RC
SEI Investments and Secretary 2008 from 2004 to 2007. Assistant Secretary of The VantageTrust Company in
One Freedom Valley Drive 2007. Assistant Secretary of The Vantagepoint Funds from 2006 to 2007.
Oaks, PA 19456 Investigator, U.S. Department of Labor from 2002 to 2004.
Age: 36
Timothy G. Solberg Vice President Since Managing Director and Chief Investment Officer, CCM Advisors
CCM Advisors, LLC and Assistant 2005 (2001-present); Director of Marketing and Client Services, Hewitt
190 S. LaSalle Street Secretary Investment Group, a Division of Hewitt Associates LLC (1989-2001).
Suite 2800
Chicago, IL 60603
Age: 56
Susan Rudzinski Vice President Since Compliance Director, Convergent Capital Management, LLC (2006-present);
CCM Advisors, LLC 2007 Self-employed Investment Advisory Compliance and Operations Consultant
190 S. LaSalle Street (2005-2006); Manager, Affiliate Contracts, The Burridge Group LLC
Suite 2800 (2003-2004).
Chicago, IL 60603
Age: 46
Richard A. Weiss President and Since President, CNAM, Inc. (2001-present). Executive Vice President and
City National Bank Chief Executive 2008 Chief Investment Officer, CNB (1999-present). Director, City National
400 N. Roxbury Drive Officer Securities (April 2003-present). Executive Vice President and Chief
Beverly Hills, CA 90210 Investment Officer, Sanwa Bank California (1994-1999).
Age: 49
AHA INVESTMENT FUNDS | PAGE 51
notice to shareholders (UNAUDITED)
SEPTEMBER 30, 2009
For shareholders that do not have a September 30, 2009 taxable year end, this
notice is for informational purposes only. For shareholders with a September 30,
2009 taxable year end, please consult your tax advisor as to the pertinence of
this notice. For Federal income tax purposes, for the fiscal year ended
September 30, 2009 each Fund is designating the following items with regard to
distributions paid during the year:
(C)**
DIVIDENDS
QUALIFYING (D)***
FOR QUALIFYING
(A)* (B)* CORPORATE DIVIDEND (E)**** (F)***** (G)******
LONG-TERM ORDINARY DIVIDENDS INCOME U.S. INTEREST SHORT-TERM
CAPITAL GAIN INCOME TOTAL REC. (15% RATE GOVERNMENT RELATED CAPITAL GAIN
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DEDUCTION FOR QDI) INTEREST DIVIDENDS DIVIDENDS
------------- ------------- ------------- ---------- ---------- ---------- --------- ------------
Limited Maturity Fixed
Income Fund 0.00% 100.00% 100.00% 0.00% 0.00% 14.04% 99.26% 0.00%
Full Maturity Fixed
Income Fund 0.00% 100.00% 100.00% 0.00% 0.00% 13.55% 92.89% 0.00%
Balanced Fund 0.00% 100.00% 100.00% 60.63% 60.39% 19.51% 56.07% 0.00%
Diversified Equity Fund 0.00% 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 0.00%
Socially Responsible
Equity Fund 0.00% 100.00% 100.00% 100.00% 100.00% 0.00% 0.00% 0.00%
* ITEMS (A) AND (B) ARE BASED ON THE PERCENTAGE OF EACH FUND's TOTAL
DISTRIBUTION.
** ITEM (C) IS BASED ON THE PERCENTAGE OF ORDINARY INCOME DISTRIBUTIONS OF
EACH FUND. QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE
CORPORATE DIVIDENDS RECEIVED DEDUCTION.
*** THE PERCENTAGE IN ITEM (D) REPRESENTS THE AMOUNT OF "QUALIFYING DIVIDEND
INCOME" AS CREATED BY THE JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT
OF 2003. IT IS THE INTENTION OF EACH OF THE AFOREMENTIONED FUNDS TO
DESIGNATE THE MAXIMUM AMOUNT PERMITTED BY THE LAW.
**** ITEM (E) REPRESENTS THE AMOUNT OF INTEREST THAT WAS DERIVED FROM DIRECT
U.S. GOVERNMENT OBLIGATIONS AND DISTRIBUTED DURING THE FISCAL YEAR. THIS
AMOUNT IS REFLECTED AS A PER CENTAGE OF ORDINARY INCOME. GENERALLY,
INTEREST FROM DIRECT U.S. GOVERNMENT OBLIGATIONS IS EXEMPT FROM STATE
INCOME TAX. FOR SHAREHOLDERS OF THE FUNDS WHO ARE RESIDENTS OF
CALIFORNIA, CONNECTICUT AND NEW YORK, THE STATUTORY THRESHOLD
REQUIREMENTS WERE NOT SATISFIED TO PERMIT EXEMPTION OF THESE AMOUNTS FROM
STATE INCOME TAX.
***** ITEM (F) REPRESENTS THE AMOUNT OF "INTEREST RELATED DIVIDENDS" AS CREATED
BY THE AMERICAN JOBS CREATION ACT OF 2004 AND IS REFLECTED AS A
PERCENTAGE OF NET INVESTMENT INCOME DISTRIBUTIONS THAT IS EXEMPT FROM
U.S. WITHHOLDING TAX WHEN PAID TO FOREIGN INVESTORS. THIS PROVISION OF
THE INTERNAL REVENUE CODE WILL BE EXPIRING FOR YEARS BEGINNING AFTER
JANUARY 1, 2010.
****** THE PERCENTAGE IN ITEM (G) REPRESENTS THE AMOUNT OF "SHORT-TERM CAPITAL
GAIN DIVIDENDS" AS CREATED BY THE AMERICAN JOBS CREATION ACT OF 2004 AND
IS REFLECTED AS A PERCENTAGE OF SHORT-TERM CAPITAL GAIN DISTRIBUTIONS
THAT IS EXEMPT FROM U.S. WITHHOLDING TAX WHEN PAID TO FOREIGN
INVESTORS. THIS PROVISION OF THE INTERNAL REVENUE CODE WILL BE EXPIRING
FOR YEARS BEGINNING AFTER JANUARY 1, 2010.
AHA INVESTMENT FUNDS | PAGE 52
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
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
4/1/09 9/30/09 RATIOS PERIOD*
--------- --------- ---------- --------
AHA LIMITED MATURITY FIXED INCOME FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,045.50 0.75% $3.84
Class N 1,000.00 1,043.30 1.00% 5.13
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,021.31 0.75% $3.80
Class N 1,000.00 1,020.05 1.00% 5.07
AHA FULL MATURITY FIXED INCOME FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,059.10 0.79% $4.07
Class N 1,000.00 1,057.80 1.04% 5.35
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.12 0.79% $3.99
Class N 1,000.00 1,019.87 1.04% 5.25
AHA BALANCED FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,171.10 1.00% $5.46
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,020.04 1.00% $5.08
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
4/1/09 9/30/09 RATIOS PERIOD*
--------- --------- ---------- --------
AHA DIVERSIFIED EQUITY FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,311.00 1.00% $5.79
Class N 1,000.00 1,308.30 1.25% 7.23
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,020.06 1.00% $5.06
Class N 1,000.00 1,018.80 1.25% 6.32
AHA SOCIALLY RESPONSIBLE EQUITY FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,393.70 0.96% $5.75
Class N 1,000.00 1,392.60 1.21% 7.26
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 1,020.26 0.96% $4.86
Class N 1,000.00 1,019.00 1.21% 6.12
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 183/365 (to reflect
the six-month period).
AHA INVESTMENT FUNDS | PAGE 53
approval of sub-advisory agreements (UNAUDITED)
The Board of Trustees (the "Board") of CNI Charter Funds (the "Trust") is
comprised of five Trustees, four of whom are independent of the Trust's
investment advisers and sub-advisers (the "Independent Trustees"). During the
six months ended September 30, 2009, the Board and the Independent Trustees
approved renewals of the Trust's advisory agreement (the "Management Agreement")
with CCM Advisors, LLC ("CCMA") and the related sub-advisory agreements
(collectively referred to below as the "Sub-Advisory Agreements") with the
following sub-advisory organizations (the "Sub-Advisers"):
- - CCMA's sub-advisory agreement (the "CNAM Agreement") with City National
Asset Management, Inc. ("CNAM") with respect to the AHA Limited Maturity
Fixed Income Fund (the "Limited Maturity Fund");
- - CCMA's sub-advisory agreement (the "Patterson Agreement") with The
Patterson Capital Corporation ("Patterson") with respect to the Limited
Maturity Fund;
- - CCMA's sub-advisory agreements (the "Baird Agreements") with Robert W.
Baird & Co. Incorporated ("Baird") with respect to the AHA Full Maturity
Fixed Income Fund (the "Full Maturity Fund") and the AHA Balanced Fund (the
"Balanced Fund");
- - CCMA's sub-advisory agreement (the "AMBS Agreement") with AMBS Investment
Counsel LLC ("AMBS") with respect to the AHA Diversified Equity Fund (the
"Diversified Fund");
- - CCMA's sub-advisory agreements (the "SKBA Agreements") with SKBA Capital
Management, LLC ("SKBA") with respect to the AHA Socially Responsible
Equity Fund (the "Socially Responsible Fund") and the Diversified Fund; and
- - CCMA's sub-advisory agreement (the "Turner Agreement") with Turner
Investment Partners, Inc. ("Turner") with respect to the Diversified Fund.
The Management Agreement and the Sub-Advisory Agreements are referred to below
as the "Agreements."
GENERAL INFORMATION
The following information summarizes the Board's considerations associated with
its review of the Agreements. In connection with their deliberations, the Board
considered such information and factors as they believed, in light of the legal
advice furnished to them and their own business judgment, to be relevant. The
Agreements were considered separately for each investment portfolio of the Trust
(each a "Fund"), although the Board took into account the common interests of
the Funds in its review. As described below, the Board considered the nature,
quality and extent of the various investment advisory and administrative
services performed by CCMA and each of the Sub-Advisers. In considering these
matters, the Independent Trustees discussed the approval of the Agreements with
management and in private sessions with counsel at which no representatives of
CCMA or the Sub-Advisers were present.
The Board reviewed extensive materials regarding the investment results of the
Funds, advisory fee and expense comparisons, financial and profitability
information with respect to each entity, descriptions of various functions such
as compliance monitoring and portfolio trading practices, and information about
the personnel providing investment management and administrative services to the
Funds. They also took into account information they received at past Board
meetings with respect to these matters.
In deciding to approve renewal of the Agreements, 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.
CCMA
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services provided by CCMA, the Board considered a variety of
matters, including the background, education and experience of CCMA's key
portfolio management and operational personnel; its overall financial strength
and stability; its resources and efforts to retain, attract and motivate capable
personnel to serve the Funds; and the overall general quality and depth of its
organization.The Board also took into account the experience, capability and
integrity of its senior management; its investment philosophy and processes and
oversight of the Sub-Advisers; its disaster recovery and contingency planning;
and its commitment and systems in place with regard to compliance with
applicable laws and regulations.
INVESTMENT PERFORMANCE
The Board assessed the performance of the Institutional Class of each Fund
compared with its respective benchmark and the average of all funds in its
respective peer group category (each, a "universe") selected by Lipper, Inc. for
the nine-month, one-, two-, three-, five- and ten-year and since-inception
periods ended June 30, 2009, as applicable. The Board made the following
observations in reviewing the Funds' performance:
- - The annualized total returns of the Limited Maturity Fund were above the
average returns of the Lipper short/intermediate investment grade debt
funds universe for all periods other than the ten-year and since inception
periods, above
AHA INVESTMENT FUNDS | PAGE 54
the Merrill Lynch 3-Month Treasury Bill Index returns for all periods, and
below the Merrill Lynch 1-3 Year US Treasuries Index returns for all
periods except the nine-month and one-year periods.
- - The annualized total returns of the Full Maturity Fund were above the
average returns of the Lipper corporate A-rated debt funds universe for all
periods except the since inception period, and below the returns of the
Barclays Capital US Aggregate Bond Index and Barclays Capital Intermediate
US Government/Credit Index returns for all periods.
- - The annualized total returns of the Diversified Fund were below the average
returns of the Lipper multi-cap core funds universe for all periods except
the since inception period, below the S&P 500 Index returns for the one-,
three- and five-year periods, and above the Index returns for the
nine-month, ten-year and since inception periods.
- - The annualized total returns of the Balanced Fund were above the average
returns of the Lipper mixed-asset target allocation growth fund universe
for all periods except the since inception period, and below the returns of
a blended index comprised 60% of the S&P 500 Index, 30% of the Barclays
Capital US Aggregate Bond Index and 10% of the Merrill Lynch 3-Month US
Treasury Bill Index for all periods except the ten-year period.
- - The annualized total returns of the Socially Responsible Fund were below
the average returns of the Lipper multi-cap value fund universe and the
Domini 400 Social Index (since renamed the FTSE KLD 400 Social Index)
returns for all periods except the three-year period with respect to the
Lipper multi-cap value fund universe.
The Board and the Independent Trustees concluded that CCMA continued to provide
satisfactory management and oversight services to the Funds. They noted that the
investment results of the Funds were generally competitive; that each of the
Funds had met its objectives as demonstrated by various factors; and that
consideration of returns of market indexes needed to take into account that
indexes do not reflect the expenses of operating mutual funds.
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the management fees charged by CCMA and
the total expenses of the Institutional Class of each Fund (as percentages of
their respective average annual net assets) compared to those of select peer
groups of funds and of the funds included in the relevant Lipper universes, and
the Board concluded that the advisory fees and expenses of the Funds continued
to be reasonable.
The Board observed that the Funds' management fees as of June 30, 2009 net of
fee waivers were above the relevant Lipper averages, but (except for the Limited
Maturity and Balanced Funds) were within the middle 60% range for the relevant
Lipper universes. As the Funds are CCMA's sole investment advisory clients, the
Board was not able to compare the fees charged to the Funds by CCMA with fees
charged to other institutional clients of CCMA.
With respect to the total expenses of the Funds, the Board considered that total
expenses as of June 30, 2009 net of fee waivers were below the average fees of
funds in the relevant Lipper universes. The Board noted that the asset levels of
the Funds were relatively small and that CCMA had taken measures to lower
certain of the Funds' expenses.
The Board considered information prepared by CCMA relating to its costs and
profits. The Board also considered the benefits received by CCMA and its
affiliates as a result of CCMA's relationship with the Funds, including
investment advisory fees received by CCMA, fees paid to City National Bank and
City National Securities, Inc. for providing certain shareholder servicing and
sub-distribution services to the Trust, and the intangible benefits of any
favorable publicity arising in connection with the Funds' performance. In
addition, the Board noted that, although there were no advisory fee breakpoints,
the asset levels of most of the Funds were relatively small and were not
currently likely to lead to significant economies of scale.
CONCLUSIONS
Based on their review, including their consideration of each of the factors
referred to above, the Board and the Independent Trustees concluded that the
compensation payable to CCMA pursuant to the Management Agreement is fair and
reasonable in light of the nature and quality of the services being provided by
CCMA to each Fund and its shareholders, and that renewal of the Management
Agreement was in the best interest of the Funds and their shareholders.
SUB-ADVISERS
NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the services provided by each of the Sub-Advisers, the Board
considered a variety of matters, including the background, education and
experience of the Sub-Adviser's key portfolio management and operational
personnel; its overall financial strength and stability; its resources and
related efforts to retain, attract and motivate capable personnel to serve the
Funds; and the overall general quality and depth of its organization. The Board
also reviewed each Sub-Adviser's investment philosophy and processes as well as
its brokerage and trading practices.
AHA INVESTMENT FUNDS | PAGE 55
approval of sub-advisory agreements (UNAUDITED) (CONCLUDED)
INVESTMENT PERFORMANCE
The Board's observations regarding each Fund's performance are described above.
In addition, the Board assessed the performance of each Sub-Adviser's portion of
the Fund or Funds it managed compared with its respective benchmark for the last
quarter, six-month, one-, two-, three-, five-, seven- and ten-year periods ended
June 30, 2009, as applicable. The Board made the following additional
observations in reviewing each Sub-Adviser's performance:
- - The annualized total returns for CNAM's portion of the Limited Maturity
Fund were above the returns of the Barclays Capital 1-5 Year
Government/Credit Index for all periods.
- - The annualized total returns for Patterson's portion of the Limited
Maturity Fund were above the returns of the Merrill Lynch 1-3 Year Treasury
Index for all periods, except the two- and three-year periods (for which
periods the Limited Maturity Fund's returns were slightly below the returns
of the Index).
- - The annualized total returns for Baird's portions of the Full Maturity Fund
and the Balanced Fund were below the returns of the Barclays Capital US
Aggregate Bond Index for all applicable periods, except for the last
quarter with respect to the Full Maturity Fund. The Board noted that CCMA
believed Baird had performed above the median in the universe of bond
managers during the past year, and that it would continue to monitor
Baird's performance closely during the next year.
- - The annualized total returns for AMBS' portion of the Diversified Fund were
above the returns of the S&P 500 Index for the six-month, one-year and
two-year periods, but below the Index for the last quarter.
- - The annualized total returns for SKBA's portion of the Diversified Fund
were above the returns of the Russell 1000 Value Index for the six-month,
one-year and two-year periods, but below the Index for the last quarter.
The annualized total returns for the Socially Responsible Fund, which is
sub-advised solely by SKBA, were below the returns of the Domini 400 Social
Index (since renamed the FTSE KLD 400 Social Index) for the six-month,
one-year and two-year periods, and were above the Index for the last
quarter.
- - The annualized total returns for Turner's portion of the Diversified Fund
were above the returns of the Russell 1000 Growth Index for the six-month
period and were below the returns of the Index for the last quarter and
one-year periods. In considering this information, the Board noted that
Turner had served as a sub-adviser to the Diversified Fund for a relatively
short period of time.
As indicated above, the Board concluded that each Sub-Adviser continued to
provide satisfactory services to the Funds.
ADVISORY FEES AND FUND EXPENSES
The Board reviewed information regarding the advisory fees charged by each
Sub-Adviser and observed that the fees charged by each Sub-Adviser were
generally low compared to the fees it charged to its other institutional
clients. They noted that CCMA pays all sub-advisory fees out of CCMA's advisory
fee.
The Board considered information prepared by each Sub-Adviser (except for Baird)
relating to its costs and profits with respect to the Fund or Funds for which it
serves as sub-adviser, as well as the methodologies used to determine and
allocate such costs to its management of the Fund. With respect to Baird, which
does not track profitability by account, the Board considered that the
sub-advisory fees charged by Baird to the Funds were significantly lower than
the fees set forth in its standard fee schedule. In addition, the Board
considered Baird's estimate of its expenses for sub-advising the Full Maturity
Fund and the Balanced Fund. The Board also considered the benefits received by
each Sub-Adviser and its affiliates as a result of its relationship with the
Funds, including the sub-advisory fees paid to the Sub-Adviser, the intangible
benefits of their association with the Funds generally and any favorable
publicity arising in connection with the Funds' performance, and in the case of
CNAM, AMBS and SKBA, fees paid to City National Bank and City National
Securities, Inc. for providing certain shareholder servicing and
sub-distribution services to the Trust.
CONCLUSIONS
Based on their review, including their consideration of each of the factors
referred to above, the Board concluded that the compensation payable to each
Sub-Adviser pursuant to its respective Sub-Advisory Agreement is fair and
reasonable in light of the nature and quality of the services being provided by
each Sub-Adviser to the respective Funds and their shareholders, and that
renewal of each Sub-Advisory Agreement was in the best interest of the Funds and
their shareholders.
AHA INVESTMENT FUNDS | PAGE 56
THANK YOU
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.
(American Hospital Association LOGO)
AHA INVESTMENT FUNDS(TM)
A SERIES OF THE CNI CHARTER FUNDS
CCM Advisors, LLC is the AHA-sponsored investment
advisor for the AHA Investment Program
www.ahafunds.org
(CNI CHARTER FUNDS(TM) LOGO)
CNI-AR-002-0500
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer and principal
accounting officer.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of trustees has determined that the registrant has
at least one audit committee financial expert serving on the audit committee.
(a)(2) The audit committee financial experts are William R. Sweet and James R.
Wolford. Messrs. Sweet and Wolford are independent as defined in Form N-CSR Item
3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Fees billed by KPMG LLP Related to the Trust
KPMG LLP billed the Trust aggregate fees for services rendered to the Trust for
the last two fiscal years as follows:
2009 2008
---------------------------------------------------------- -----------------------------------------------------
All fees and
All other fees and services to All other fees and
All fees and All fees and services to service All fees and service services to service
services to the services to service affiliates that did services to the affiliates that affiliates that did
Trust that were affiliates that were not require Trust that were were not require
pre-approved pre-approved pre-approval pre-approved pre-approved pre-approval
--------------- -------------------- ------------------- --------------- --------------- -------------------
(a) Audit Fees(1) $316,000 N/A N/A $315,000 N/A N/A
(b) Audit-Related N/A N/A N/A N/A N/A N/A
Fees
(c) Tax Fees $ 60,550 N/A N/A $ 66,400 N/A N/A
(d) All Other N/A N/A N/A N/A N/A N/A
Fees
Notes:
(1) Audit fees include amounts related to the audit of the registrant's
annual financial statements and services normally provided by the
accountant in connection with statutory and regulatory filings.
(e)(1) Not Applicable
(e)(2) Percentage of fees billed applicable to non-audit services pursuant to
waiver of pre-approval requirement were as follows:
2009 2008
---- ----
Audit-Related Fees N/A N/A
Tax Fees N/A N/A
All Other Fees N/A N/A
(f) Not Applicable
(g) The aggregate non-audit fees and services billed by KPMG LLP for the last
two fiscal years were $60,550 and $66,400 for 2009 and 2008, respectively.
(h) Not Applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable. Effective for closed-end management investment companies for
fiscal years ending on or after December 31, 2005
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
CNI Charter Funds (the "Fund") has adopted the following procedures by which
shareholders may recommend nominees to the Fund's Board of Trustees. The Fund
has a Nominating Committee comprised solely of persons who are not considered
"interested persons" of the Fund within the meaning of the Investment Company
Act of 1940. The Committee periodically reviews such issues as the Board's
composition, responsibilities, committees, compensation and other relevant
issues, and recommends any
appropriate changes to the full Board of Trustees. While the Committee normally
is able to identify from its own resources an ample number of qualified
candidates, it will consider shareholder suggestions of persons to be considered
as nominees to fill future vacancies on the Board, so long as the shareholder or
shareholder group submitting a proposed nominee: (a) beneficially owns more than
5% of the Fund's voting shares and has held such shares continuously for two
years, and (b) is not an adverse holder. No eligible shareholder or shareholder
group may submit more than one independent Board member nominee each year. Such
suggestions must be sent in writing to the Fund 's Secretary, and must be
accompanied by the shareholder's contact information, the nominee's contact
information and number of Fund shares owned by the nominee, all information
regarding the nominee that would be required to be disclosed in solicitations of
proxies for elections of directors required under the Securities Exchange Act of
1934, and a notarized letter from the nominee stating his or her intention to
serve as a nominee and be named in the Fund's proxy statement, if so designated
by the Committee and the Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Code of Ethics attached hereto.
(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 November 25, 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 November 25, 2009
By (Signature and Title) /s/ Eric Kleinschmidt
-------------------------------------
Eric Kleinschmidt, Controller and COO
Date November 25, 2009