UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
FORM N-CSR
----------
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-0792
CNI CHARTER FUNDS
(Exact name of registrant as specified in charter)
----------
400 North Roxbury Drive
Beverly Hills, CA 90210
(Address of principal executive offices) (Zip code)
SEI Investments Distributors
1 Freedom Valley Drive
Oaks, PA 19456
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-888-889-0799
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2010
DATE OF REPORTING PERIOD: MARCH 31, 2010
ITEM 1. REPORTS TO STOCKHOLDERS.
(CNI CHARTER FUNDS(SM)(R) LOGO)
(GRAPHIC)
2010 SEMI-ANNUAL REPORT
MARCH 31, 2010
For The Following Funds Managed by CCM Advisors, LLC
Limited Maturity Fixed Income Fund
Full Maturity Fixed Income Fund
Diversified Equity Fund
Socially Responsible Equity Fund
(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
Semi-Annual Report
CNI Charter Funds
Advised by CCM Advisors, LLC
Schedules of Investments 2
Statements of Assets and Liabilities 19
Statements of Operations 20
Statements of Changes in Net Assets 22
Financial Highlights 24
Notes to Financial Statements 26
Disclosure of Fund Expenses 32
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.
CNI CHARTER FUNDS | PAGE 1
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LIMITED MATURITY FIXED INCOME FUND
TYPE OF SECURITY WEIGHTINGS*:
(BAR CHART)
Corporate Bonds 44.7%
U.S. Government Agency Obligations 19.9%
U.S. Treasury Obligations 19.8%
U.S. Government Mortgage-Backed Obligations 8.9%
Cash Equivalent 4.1%
Municipal Bonds 1.8%
Asset-Backed Securities 0.8%
* Percentages based on total investments.
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------- ---------- -------
CORPORATE BONDS [45.5%]
AEROSPACE & DEFENSE [1.4%]
Boeing
5.000%, 03/15/14 $ 625 $ 677
United Technologies
7.125%, 11/15/10 175 182
-------
TOTAL AEROSPACE & DEFENSE 859
=======
BANKS [13.8%]
ANZ National International
6.200%, 07/19/13 625 687
Bank of America
4.875%, 01/15/13 150 157
4.375%, 12/01/10 60 61
Bank of New York Mellon, MTN
5.000%, 03/23/12 150 159
Barclays Bank, MTN (A)
4.500%, 03/10/17 1,500 1,481
Citibank
1.500%, 07/12/11 300 303
Citigroup Funding
2.250%, 12/10/12 1,000 1,016
Deutsche Bank
4.875%, 05/20/13 1,800 1,929
JPMorgan Chase
3.125%, 12/01/11 500 517
JPMorgan Chase, MTN
5.600%, 06/01/11 150 158
U.S. Central Federal Credit Union
1.250%, 10/19/11 600 604
Wachovia
4.375%, 06/01/10 100 101
Wachovia, MTN
5.500%, 05/01/13 625 675
Wells Fargo
5.300%, 08/26/11 150 158
2.125%, 06/15/12 535 543
-------
TOTAL BANKS 8,549
=======
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------- ---------- -------
COMPUTER SYSTEM DESIGN & SERVICES [2.4%]
Hewlett-Packard
6.125%, 03/01/14 $ 625 $ 704
4.250%, 02/24/12 150 158
2.950%, 08/15/12 120 124
IBM
4.950%, 03/22/11 190 198
4.750%, 11/29/12 165 178
2.100%, 05/06/13 140 141
-------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 1,503
=======
DRUGS [0.5%]
Abbott Laboratories
5.600%, 05/15/11 145 153
Pfizer
4.450%, 03/15/12 170 180
-------
TOTAL DRUGS 333
=======
ENERGY [0.5%]
Florida Power
4.500%, 06/01/10 250 251
FPL Group Capital
5.625%, 09/01/11 85 90
-------
TOTAL ENERGY 341
=======
FINANCIAL SERVICES [9.0%]
Boeing Capital
6.500%, 02/15/12 150 164
6.100%, 03/01/11 250 263
Caterpillar Financial Services, MTN
5.750%, 02/15/12 150 162
5.050%, 12/01/10 200 206
CME Group
5.400%, 08/01/13 625 682
Countrywide Financial, MTN
5.800%, 06/07/12 625 664
General Electric Capital, MTN
4.875%, 10/21/10 150 153
2.000%, 09/28/12 535 542
General Electric Capital, Ser A, MTN
6.000%, 06/15/12 625 677
HSBC Finance
5.500%, 01/19/16 1,800 1,891
John Deere Capital, MTN
5.250%, 10/01/12 150 163
-------
TOTAL FINANCIAL SERVICES 5,567
=======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 2
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LIMITED MATURITY FIXED INCOME FUND (CONTINUED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------- ---------- -------
FOOD, BEVERAGE & TOBACCO [1.1%]
Campbell Soup
6.750%, 02/15/11 $ 150 $ 158
Coca-Cola
5.750%, 03/15/11 145 152
Coca-Cola Enterprises
3.750%, 03/01/12 170 178
PepsiCo
5.150%, 05/15/12 60 64
Unilever Capital
7.125%, 11/01/10 150 156
-------
TOTAL FOOD, BEVERAGE & TOBACCO 708
=======
FOOD-RETAIL [0.1%]
Safeway
6.500%, 03/01/11 60 63
=======
FOREIGN GOVERNMENTS [0.2%]
Province of Ontario Canada
1.875%, 11/19/12 125 126
=======
INVESTMENT BANKER/BROKER DEALER [12.4%]
Bear Stearns, MTN
6.950%, 08/10/12 625 692
Citigroup
5.100%, 09/29/11 625 651
Credit Suisse First Boston
6.125%, 11/15/11 785 843
Goldman Sachs Group
6.600%, 01/15/12 115 125
4.500%, 06/15/10 100 101
Goldman Sachs Group, MTN
3.625%, 08/01/12 625 647
Macquarie Group
7.300%, 08/01/14 1,800 2,010
Morgan Stanley
6.600%, 04/01/12 150 163
5.625%, 01/09/12 1,800 1,907
1.950%, 06/20/12 500 508
-------
TOTAL INVESTMENT BANKER/BROKER DEALER 7,647
=======
MULTI-MEDIA [0.3%]
Walt Disney, MTN
5.700%, 07/15/11 150 159
=======
OIL, GAS & CONSUMABLE FUELS [2.9%]
Shell International Finance BV
1.875%, 03/25/13 1,800 1,798
=======
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------- ---------- -------
RETAIL [0.3%]
Wal-Mart Stores
5.000%, 04/05/12 $ 170 $ 182
=======
TELEPHONES & TELECOMMUNICATIONS [0.3%]
AT&T
7.300%, 11/15/11 150 164
=======
TRANSPORT-RAIL [0.3%]
Canadian National Railway
6.375%, 10/15/11 175 188
=======
TOTAL CORPORATE BONDS
(Cost $27,828) 28,187
=======
U.S. TREASURY OBLIGATIONS [20.1%]
U.S. Treasury Notes
4.750%, 05/31/12 3,000 3,234
4.375%, 08/15/12 3,000 3,224
4.250%, 08/15/15 3,000 3,239
4.125%, 08/31/12 575 614
2.375%, 09/30/14 1,000 1,000
1.750%, 11/15/11 1,150 1,168
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $12,529) 12,479
=======
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS [9.1%]
FHLMC, Pool G12806
5.500%, 09/01/22 279 299
FHLMC, Pool G18247
5.000%, 04/01/23 206 217
FHLMC, Pool G18251
5.000%, 05/01/23 309 326
FHLMC, Pool G18321
4.500%, 08/01/24 158 164
FHLMC, Pool J04241
5.500%, 01/01/22 187 201
FHLMC, Pool J04459
5.000%, 03/01/22 139 147
FHLMC, Pool J04508
5.000%, 03/01/22 123 131
FHLMC, Pool J07575
5.000%, 04/01/23 202 214
FHLMC REMIC, Ser R004
5.125%, 12/15/13 418 435
FHLMC REMIC, Ser R005, Cl AB
5.500%, 12/15/18 364 380
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 3
schedule of investments
MARCH 31, 2010 (UNAUDITED)
LIMITED MATURITY FIXED INCOME FUND (CONCLUDED)
FACE
AMOUNT VALUE
DESCRIPTION (000) (000)
- ----------- ---------- -------
FHLMC REMIC, Ser R009, Cl AJ
5.750%, 12/15/18 $ 315 $ 329
FHLMC REMIC, Ser R010, Cl AB
5.500%, 12/15/19 437 457
FHLMC REMIC, Ser R011, Cl AB
5.500%, 12/15/20 500 524
FHLMC REMIC, Ser R015, Cl AN
3.750%, 02/15/13 271 275
FHLMC REMIC, Ser R016, Cl AM
5.125%, 06/15/18 388 403
FNMA, Pool 541946
7.500%, 07/01/30 -- --
FNMA, Pool 837196
5.500%, 02/01/21 384 412
FNMA, Pool 933915
4.500%, 06/01/23 369 384
FNMA, Pool 961783
4.500%, 02/01/23 315 327
-------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $9,624) 5,625
=======
U.S. GOVERNMENT AGENCY OBLIGATIONS [20.2%]
FHLB
5.750%, 05/15/12 400 438
5.375%, 08/19/11 845 896
3.125%, 12/13/13 4,000 4,157
3.000%, 10/15/10 925 926
FHLMC
6.000%, 06/15/11 600 639
4.750%, 03/05/12 645 689
2.125%, 09/21/12 200 203
FNMA
6.000%, 05/15/11 1,000 1,060
5.375%, 11/15/11 930 996
5.250%, 08/01/12 625 673
3.000%, 07/28/14 925 932
2.900%, 04/07/14 925 931
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $8,300) 12,540
=======
MUNICIPAL BONDS [1.9%]
CALIFORNIA [1.9%]
Irvine Ranch Water District, RB, ETM
8.180%, 03/15/14 550 603
State of California, Sub-Ser A-2, RB
3.000%, 06/23/10 550 553
-------
TOTAL CALIFORNIA 1,156
=======
FACE
AMOUNT
(000)/ VALUE
DESCRIPTION SHARES (000)
- ----------- ---------- -------
TOTAL MUNICIPAL BONDS
(Cost $1,150) $ 1,156
=======
ASSET-BACKED SECURITIES [0.7%]
BMW Vehicle Lease Trust, Cl A3
2.910%, 03/15/12 $ 160 163
Mercedes-Benz Auto Receivables Trust,
Cl A4
2.430%, 03/15/16 165 167
USAA Auto Owner Trust, Cl A4
2.530%, 07/15/15 135 137
-------
TOTAL ASSET-BACKED SECURITIES
(Cost $460) 467
=======
CASH EQUIVALENT [4.2%]
AIM STIT-Treasury
Portfolio, 0.030%+ 2,582,776 2,583
-------
TOTAL CASH EQUIVALENT
(Cost $2,583) 2,583
=======
TOTAL INVESTMENTS [101.7%]
(Cost $62,474) $63,037
=======
PERCENTAGES ARE BASED ON NET ASSETS OF $61,996,400.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
(A) FLOATING RATE SECURITY - THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH,
31, 2010.
CL -- CLASS
ETM -- ESCROW TO MATURITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
The following is a summary of the inputs used as of March 31, 2010, in valuing
the Fund's investments carried at fair value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- ------------------------- ------- ------- ------- -------
Corporate Bonds $ -- $28,187 $-- $28,187
U.S. Treasury Obligations -- 12,479 -- 12,479
U.S. Government Mortgage-
Backed Obligations -- 5,625 -- 5,625
U.S. Government Agency
Obligations -- 12,540 -- 12,540
Municipal Bonds -- 1,156 -- 1,156
Asset-Backed Securities -- 467 -- 467
Cash Equivalent 2,583 -- -- 2,583
------ ------- --- -------
Total Investments in
Securities $2,583 $60,454 $-- $63,037
====== ======= === =======
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING
POLICIES IN THE NOTES TO FINANCIAL STATEMENTS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 4
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND
TYPE OF SECURITY WEIGHTINGS*:
(BAR CHART)
Corporate Bonds 42.5%
U.S. Treasury Obligations 17.0%
U.S. Government Mortgage-Backed Obligations 16.9%
U.S. Government Agency Obligations 7.8%
Commercial Mortgage-Backed Obligation 5.2%
Asset-Backed Securities 4.4%
Mortgage-Backed Securities 3.1%
Cash Equivalent 2.7%
Foreign Bonds 0.4%
Municipal Bond 0.0%
* Percentages based on total investments.
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
CORPORATE BONDS [42.8%]
AEROSPACE & DEFENSE [0.5%]
United Technologies
6.125%, 02/01/19 $ 100 $ 112
4.500%, 04/15/20 130 131
-----------
TOTAL AEROSPACE & DEFENSE 243
===========
AGRICULTURE [0.2%]
Bunge NA Finance
5.900%, 04/01/17 100 102
===========
AUTO/TRUCK PARTS AND EQUIPMENT-ORIGINAL [0.2%]
Johnson Controls
5.500%, 01/15/16 100 107
===========
BANKS [9.9%]
AmSouth Bancorporation
6.750%, 11/01/25 75 60
ANZ National Int'l (A)
2.375%, 12/21/12 100 100
Bank of America
10.200%, 07/15/15 100 121
2.100%, 04/30/12 320 326
Bank of America, MTN
7.375%, 05/15/14 125 141
5.650%, 05/01/18 290 293
Bank of Nova Scotia
2.250%, 01/22/13 425 429
Bank One
10.000%, 08/15/10 89 92
Barclays Bank
5.125%, 01/08/20 100 99
Citigroup
6.375%, 08/12/14 145 155
2.125%, 04/30/12 250 255
Deutsche Bank Trust
7.250%, 10/15/11 46 49
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Deutsche Bank, MTN
3.450%, 03/30/15 $ 100 $ 99
Dresdner Bank-New York
7.250%, 09/15/15 150 161
European Investment Bank
4.625%, 03/21/12 250 266
JPMorgan Chase
4.650%, 06/01/14 415 438
Kookmin Bank (A)
7.250%, 05/14/14 100 112
PNC Funding
4.250%, 09/21/15 330 340
2.300%, 06/22/12 355 363
Santander Central Hispano Issuances
7.625%, 09/14/10 100 103
Wachovia
5.300%, 10/15/11 200 212
Wachovia, MTN
5.500%, 05/01/13 210 227
Wells Fargo
3.625%, 04/15/15 125 124
-----------
TOTAL BANKS 4,565
===========
BEAUTY PRODUCTS [0.5%]
Procter & Gamble
4.600%, 01/15/14 195 210
===========
BUILDING & CONSTRUCTION [0.2%]
Hanson Australia Funding
5.250%, 03/15/13 75 76
===========
CABLE/MEDIA [0.2%]
TCI Communications
7.875%, 08/01/13 75 85
===========
CHEMICALS [0.5%]
EI du Pont de Nemours
5.875%, 01/15/14 210 234
===========
COMPUTER SYSTEM DESIGN & SERVICES [0.3%]
Hewlett-Packard
6.125%, 03/01/14 135 152
===========
DATA PROCESSING [0.2%]
Fiserv
6.125%, 11/20/12 100 109
===========
DRUGS [1.8%]
Eli Lilly
3.550%, 03/06/12 175 183
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 5
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
Merck
5.000%, 06/30/19 $ 220 $ 230
Novartis Capital
4.125%, 02/10/14 110 116
Teva Pharmaceutical
5.550%, 02/01/16 75 82
Wyeth
5.500%, 02/15/16 200 223
-----------
TOTAL DRUGS 834
===========
ENERGY [1.8%]
Baltimore Gas & Electric
6.125%, 07/01/13 190 211
Carolina Power & Light
5.150%, 04/01/15 80 87
Exelon
5.625%, 06/15/35 75 70
Korea Electric Power
7.750%, 04/01/13 95 107
6.750%, 08/01/27 75 79
NiSource Finance
7.875%, 11/15/10 75 78
PPL Energy Supply, Ser A
5.700%, 10/15/15 75 79
Trans-Allegheny Interstate Line
4.000%, 01/15/15 100 100
-----------
TOTAL ENERGY 811
===========
FINANCIAL SERVICES [5.2%]
American Express Credit, MTN
7.300%, 08/20/13 370 415
Bank of New York Mellon, MTN
3.100%, 01/15/15 340 340
Caterpillar Financial Services, MTN
6.200%, 09/30/13 225 254
Eksportfinans
3.000%, 11/17/14 210 211
General Electric Capital, MTN
3.500%, 08/13/12 225 233
3.000%, 12/09/11 270 279
General Electric Capital, Ser A, MTN
6.000%, 06/15/12 75 81
HSBC Finance
5.000%, 06/30/15 75 78
John Deere Capital
2.875%, 06/19/12 350 362
UFJ Finance Aruba
6.750%, 07/15/13 125 140
-----------
TOTAL FINANCIAL SERVICES 2,393
===========
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FOOD, BEVERAGE & TOBACCO [2.5%]
Bottling Group
5.125%, 01/15/19 $ 115 $ 120
Cia de Bebidas das Americas
8.750%, 09/15/13 175 207
Coca-Cola
5.350%, 11/15/17 270 297
General Mills
5.650%, 02/15/19 110 118
Kellogg
4.450%, 05/30/16 210 223
Kraft Foods
6.500%, 08/11/17 190 213
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 1,178
===========
INSURANCE [1.6%]
Berkshire Hathaway
3.200%, 02/11/15 380 383
Metropolitan Life Global Funding I (A)
4.630%, 08/19/10 75 76
Protective Life
4.300%, 06/01/13 100 101
Prudential Financial, MTN
2.750%, 01/14/13 100 100
Travelers (B)
6.250%, 03/15/37 100 99
-----------
TOTAL INSURANCE 759
===========
INVESTMENT MANAGEMENT/ADVISORY SERVICES [0.6%]
BlackRock
3.500%, 12/10/14 275 278
===========
INVESTMENT BANKER/BROKER DEALER [4.0%]
Citigroup
6.500%, 01/18/11 235 244
Credit Suisse USA
5.250%, 03/02/11 325 338
Goldman Sachs Group
6.600%, 01/15/12 310 336
5.150%, 01/15/14 75 80
0.551%, 06/28/10 (B) 100 100
Jefferies Group
6.450%, 06/08/27 100 89
Morgan Stanley
5.300%, 03/01/13 415 442
4.750%, 04/01/14 75 77
TD Ameritrade Holding
4.150%, 12/01/14 160 161
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 1,867
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 6
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
MACHINERY-CONSTRUCTION AND MINING [0.4%]
Caterpillar
7.900%, 12/15/18 $ 150 $ 184
===========
MACHINERY-FARM [0.3%]
Deere
4.375%, 10/16/19 145 144
===========
MANUFACTURING [1.4%]
General Electric
5.000%, 02/01/13 200 216
Honeywell International
3.875%, 02/15/14 100 105
Tyco International Finance
4.125%, 10/15/14 220 227
Tyco International Group
6.375%, 10/15/11 75 81
-----------
TOTAL MANUFACTURING 629
===========
MEDICAL PRODUCTS [0.2%]
Zimmer Holdings
4.625%, 11/30/19 90 89
===========
METALS & MINING [0.5%]
Rio Tinto Finance USA
6.500%, 07/15/18 100 113
Vale Overseas
6.875%, 11/21/36 100 103
-----------
TOTAL METALS & MINING 216
===========
MULTI-MEDIA [1.5%]
CBS
6.625%, 05/15/11 60 63
Time Warner
9.125%, 01/15/13 50 58
5.875%, 11/15/16 255 279
Viacom
6.250%, 04/30/16 125 138
Walt Disney, MTN
6.375%, 03/01/12 150 164
-----------
TOTAL MULTI-MEDIA 702
===========
NETWORKING PRODUCTS [0.5%]
Cisco Systems
5.500%, 01/15/40 100 96
4.950%, 02/15/19 115 119
-----------
TOTAL NETWORKING PRODUCTS 215
===========
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
OIL, GAS & CONSUMABLE FUELS [2.0%]
Chevron
3.450%, 03/03/12 $ 210 $ 219
ConocoPhillips
5.300%, 04/15/12 300 322
Shell International Finance BV
4.375%, 03/25/20 160 159
Total Capital
3.125%, 10/02/15 250 248
-----------
TOTAL OIL, GAS & CONSUMABLE FUELS 948
===========
PETROLEUM & FUEL PRODUCTS [0.3%]
Energy Transfer Partners
6.625%, 10/15/36 75 76
Pemex Project Funding Master Trust
9.125%, 10/13/10 50 52
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 128
===========
RETAIL [1.2%]
Home Depot
5.250%, 12/16/13 310 336
Lowe's
5.000%, 10/15/15 200 219
-----------
TOTAL RETAIL 555
===========
RETAIL-DRUG STORE [0.2%]
Walgreen
5.250%, 01/15/19 100 106
===========
RETAIL-RESTAURANTS [0.2%]
McDonald's, MTN
5.000%, 02/01/19 90 94
===========
SECURITY BROKERS & DEALERS [0.2%]
iStar Financial
5.850%, 03/15/17 100 74
===========
SHORT-TERM BUSINESS CREDIT [0.1%]
CIT Group Funding of Delaware
10.250%, 05/01/13 5 5
10.250%, 05/01/14 8 8
10.250%, 05/01/15 8 8
10.250%, 05/01/16 13 13
10.250%, 05/01/17 18 18
-----------
TOTAL SHORT-TERM BUSINESS CREDIT 52
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 7
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
TELEPHONES & TELECOMMUNICATIONS [2.9%]
AT&T
5.600%, 05/15/18 $ 270 $ 288
British Telecommunications
9.875%, 06/15/10 (C) 100 126
9.375%, 06/15/10 (C) 60 63
Deutsche Telekom International
Finance 8.250%, 06/15/30 75 96
Deutsche Telekom International
Finance BV 6.000%, 07/08/19 50 54
France Telecom
7.750%, 03/01/11 50 53
GTE
6.840%, 04/15/18 100 110
New Cingular Wireless Services
8.750%, 03/01/31 75 97
Sprint Capital
6.900%, 05/01/19 75 69
Telecom Italia Capital
7.200%, 07/18/36 75 76
Telefonica Emisiones
6.421%, 06/20/16 75 83
Verizon Pennsylvania
5.650%, 11/15/11 200 212
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 1,327
===========
TRANSPORTATION SERVICES [0.7%]
FedEx
9.650%, 06/15/12 125 144
United Parcel Service
3.875%, 04/01/14 195 204
-----------
TOTAL TRANSPORTATION SERVICES 348
===========
TOTAL CORPORATE BONDS
(Cost $19,041) 19,814
===========
U.S. TREASURY OBLIGATIONS [17.1%]
U.S. Treasury Bonds
6.250%, 08/15/23 2,400 2,884
5.250%, 11/15/28 700 762
U.S. Treasury Notes
4.750%, 05/15/14 230 254
4.250%, 08/15/13 200 216
4.250%, 11/15/17 460 487
2.750%, 02/15/19 275 255
2.625%, 04/30/16 425 416
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
2.375%, 03/31/16 $ 1,875 $ 1,814
2.250%, 05/31/14 850 851
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $7,953) 7,939
===========
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS [17.0%]
FHLB, Pool 00-0582 H, Cl H
4.750%, 10/25/10 152 157
FHLMC, Pool 1B2677 (B)
4.104%, 01/01/35 18 19
FHLMC, Pool 1B2683 (B)
3.142%, 01/01/35 11 12
FHLMC, Pool 1B2692 (B)
3.002%, 12/01/34 35 36
FHLMC, Pool C20300
6.500%, 01/01/29 9 9
FHLMC, Pool E01280
5.000%, 12/01/17 30 32
FHLMC, Pool G04222
5.500%, 04/01/38 198 209
FHLMC, Pool G08003
6.000%, 07/01/34 94 102
FHLMC, Pool G11431
6.000%, 02/01/18 20 21
FHLMC, Pool G11911
5.000%, 02/01/21 224 239
FHLMC, Pool G13767
4.000%, 03/01/25 528 536
FHLMC, Pool G18124
6.000%, 06/01/21 65 71
FHLMC, Ser 2730, Cl PD
5.000%, 05/15/21 150 157
FHLMC, Ser 3122, Cl VA
6.000%, 01/15/17 105 112
FHLMC, Ser 3132, Cl MA
5.500%, 12/15/23 66 69
FHLMC Gold, Pool G11880
5.000%, 12/01/20 91 97
FHLMC REMIC, Ser 2544, Cl QB
5.000%, 09/15/15 3 3
FHLMC REMIC, Ser 2804, Cl VC
5.000%, 07/15/21 150 160
FHLMC REMIC, Ser R003, Cl VA
5.500%, 08/15/16 132 142
FHLMC REMIC, Ser R009, Cl AJ
5.750%, 12/15/18 70 73
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 8
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FHLMC REMIC, Ser R010, Cl AB
5.500%, 12/15/19 $ 182 $ 191
FHLMC REMIC, Ser R010, Cl VA
5.500%, 04/15/17 113 121
FNMA
2.875%, 12/11/13 450 461
FNMA, Pool 252570
6.500%, 07/01/29 20 22
FNMA, Pool 253183
7.500%, 04/01/30 2 2
FNMA, Pool 253398
8.000%, 08/01/30 7 8
FNMA, Pool 254510
5.000%, 11/01/17 40 42
FNMA, Pool 254545
5.000%, 12/01/17 79 85
FNMA, Pool 254685
5.000%, 04/01/18 62 66
FNMA, Pool 254949
5.000%, 11/01/33 64 67
FNMA, Pool 255814
5.500%, 08/01/35 166 175
FNMA, Pool 303168
9.500%, 02/01/25 5 6
FNMA, Pool 725424
5.500%, 04/01/34 131 139
FNMA, Pool 735060
6.000%, 11/01/34 73 79
FNMA, Pool 735228
5.500%, 02/01/35 68 72
FNMA, Pool 735230
5.500%, 02/01/35 160 169
FNMA, Pool 735925
5.000%, 10/01/35 186 192
FNMA, Pool 745275
5.000%, 02/01/36 810 838
FNMA, Pool 745355
5.000%, 03/01/36 528 546
FNMA, Pool 745418
5.500%, 04/01/36 1,009 1,067
FNMA, Pool 827223 (B)
4.777%, 04/01/35 129 133
FNMA, Pool 844809
5.000%, 11/01/35 601 622
FNMA, Pool AD0454
5.000%, 11/01/21 185 197
FNMA, Ser 136, Cl PK
6.000%, 08/25/22 21 22
FNMA, Ser 33, Cl LD
4.250%, 09/25/22 120 125
FNMA, Ser W6, Cl 1A6
5.500%, 07/25/34 62 64
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
FNMA REMIC, Ser B2, Cl AB
5.500%, 05/25/14 $ 81 $ 84
GNMA, Pool 479168
8.000%, 02/15/30 8 9
GNMA, Pool 780315
9.500%, 12/15/17 10 11
-----------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(Cost $7,630) 7,871
===========
U.S. GOVERNMENT AGENCY OBLIGATIONS [7.8%]
FHLB
4.500%, 11/15/12 400 430
FHLMC
4.375%, 07/17/15 470 504
2.500%, 01/07/14 800 809
FNMA
4.625%, 10/15/13 930 1,012
4.625%, 10/15/14 265 288
4.375%, 09/15/12 550 589
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $3,544) 3,632
===========
COMMERCIAL MORTGAGE-BACKED OBLIGATIONS [5.3%]
Bear Stearns Commercial Mortgage
Security, Ser 2007-PW16,
Cl AM (B)
5.719%, 06/11/40 300 247
Citigroup, Ser 2005-CD1, Cl A4 (B)
5.225%, 07/15/44 200 207
Citigroup, Ser 2007-CD4, Cl A2B
5.205%, 12/11/49 150 154
Commercial Mortgage, Ser 2005-C5, Cl
A5A (B)
5.116%, 06/10/44 200 207
Commercial Mortgage, Ser 2006-C8,
Cl A2B
5.248%, 12/10/46 185 192
GE Capital Commercial Mortgage,
Ser 2002-3A, Cl A2
4.996%, 12/10/37 150 157
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A4 (B)
5.189%, 07/10/39 200 208
GMAC Commercial Mortgage
Securities, Ser 2003-C1, Cl A2
4.079%, 05/10/36 225 231
GMAC Mortgage Corporation Loan
Trust, Ser 2004-J4, Cl A2
5.500%, 09/25/34 76 75
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 9
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND (CONTINUED)
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
JPMorgan Chase, Ser 2006-CB17,
Cl ASB
5.415%, 12/12/43 $ 200 $ 211
LB-UBS Commercial Mortgage Trust,
Ser 2005-C3, Cl A2
4.553%, 07/15/30 192 192
Morgan Stanley Dean Witter Capital I,
Ser-2001-TOP1, Cl A4
6.660%, 02/15/33 193 198
Wachovia Bank Commercial Mortgage,
Ser 2003-C3, Cl A2
4.867%, 02/15/35 150 157
-----------
TOTAL COMMERCIAL MORTGAGE-
BACKED OBLIGATIONS
(Cost $2,432) 2,436
===========
ASSET-BACKED SECURITIES [4.5%]
American Express Credit Account
Master Trust, Ser 2005-5, Cl A (B)
0.270%, 02/15/13 300 300
Bayview Financial Acquisition Trust,
Ser 2007-A, Cl 1A2
6.205%, 05/28/37 200 188
Capital One Multi-Asset Execution
Trust, Ser 2006-A9, Cl A9 (B)
0.245%, 05/15/13 250 250
Chase Issuance Trust, Ser 2007 A15,
Cl A
4.960%, 09/17/12 400 408
Cityscape Home Equity Loan Trust,
Ser 1997-C, Cl A4 (C)
7.000%, 07/25/28 6 6
Contimortgage Home Equity Loan Trust,
Ser 1997-2, Cl A9
7.090%, 04/15/28 1 1
Countrywide Asset-Backed Certificates,
Ser 2006-11, Cl 1AF3 (B)
6.050%, 09/25/46 199 74
Countrywide Asset-Backed Certificates,
Ser 2006-13, Cl 1AF2
5.884%, 01/25/37 198 184
Countrywide Asset-Backed Certificates,
Ser 2007-S1, Cl A6 (B)
5.693%, 11/25/36 145 89
GMAC Mortgage Corporation Loan
Trust, Ser 2004-GH1, Cl A6 (B)
4.810%, 07/25/35 118 102
Green Tree Financial, Ser 1997-7, Cl A6
6.760%, 07/15/29 79 83
DESCRIPTION FACE AMOUNT (000) VALUE (000)
- ----------- ----------------- -----------
GSAA Home Equity Trust, Ser 2005-1,
Cl AF2 (B)
4.316%, 11/25/34 $ 46 $ 44
RAAC, Ser 2004-SP1, Cl AI4 (B)
5.285%, 08/25/27 109 95
Renaissance Home Equity, Ser 2007-1,
Cl AF2
5.512%, 04/25/37 200 102
Residential Asset Mortgage Products,
Ser 2002-RS3, Cl AI5 (B)
5.572%, 06/25/32 52 38
Residential Asset Securities,
Ser 2003-KS5, Cl AI6 (B)
3.620%, 07/25/33 133 100
-----------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,415) 2,064
===========
MORTGAGE-BACKED SECURITIES [3.1%]
Banc of America Alternative Loan Trust,
Ser 2004-2, Cl 5A1
5.500%, 03/25/19 90 78
Banc of America Alternative Loan Trust,
Ser 2005-4, Cl CB11
5.500%, 05/25/35 54 52
Banc of America Alternative Loan Trust,
Ser 2005-6, Cl 7A1
5.500%, 07/25/20 68 63
Banc of America Alternative Loan Trust,
Ser 2005-9, Cl 1CB3
5.500%, 10/25/35 86 77
Banc of America Alternative Loan Trust,
Ser 2006-2, Cl 6A1
5.500%, 03/25/21 101 88
Chase Mortgage Finance, Ser 2003-S13,
Cl A11
5.500%, 11/25/33 73 74
Citigroup Mortgage Loan Trust,
Ser 2005-9, Cl 2A2
5.500%, 11/25/35 67 64
First Horizon Alternative Mortgage
Securities, Ser 2006-FA8, Cl 2A1
5.750%, 02/25/37 95 56
JP Morgan Mortgage Trust,
Ser 2007-A2, Cl 2A3 (B)
5.732%, 04/25/37 300 231
JPMorgan Alternative Loan Trust,
Ser 2006-S3, Cl A3A
6.000%, 08/25/36 200 134
JPMorgan Mortgage Trust, Ser 2006-A7,
Cl 2A2 (B)
5.759%, 01/25/37 87 74
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 10
schedule of investments
MARCH 31, 2010 (UNAUDITED)
FULL MATURITY FIXED INCOME FUND (CONCLUDED)
FACE AMOUNT (000)
DESCRIPTION /SHARES VALUE (000)
- ----------- ----------------- -----------
JPMorgan Mortgage Trust, Ser 2006-A7,
Cl 2A4R (B)
5.500%, 01/25/37 $ 300 $ 224
Residential Accredit Loans,
Ser 2004-QS5, Cl A5
4.750%, 04/25/34 30 29
Residential Accredit Loans,
Ser 2004-QS6, Cl A1
5.000%, 05/25/19 53 53
Salomon Brothers Mortgage Securities
VII, Ser 2000-C2, Cl A2
7.455%, 07/18/33 18 18
WaMu Mortgage Pass Through
Certificates, Ser 2004-CB2, Cl 5A
5.000%, 07/25/19 143 144
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $1,711) 1,459
===========
FOREIGN BONDS [0.4%]
National Bank of Hungary
8.875%, 11/01/13 75 80
United Mexican States, MTN
5.125%, 01/15/20 100 101
-----------
TOTAL FOREIGN BONDS
(Cost $177) 181
===========
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
===========
CASH EQUIVALENT [2.7%]
AIM STIT-Treasury
Portfolio, 0.030% + 1,262,921 1,263
-----------
TOTAL CASH EQUIVALENT
(Cost $1,263) 1,263
===========
TOTAL INVESTMENTS [100.7%]
(Cost $46,171) $ 46,664
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $46,337,849.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
(A) SECURITY EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933. THESE SECURITIES MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM
REGISTRATION NORMALLY TO QUALIFIED INSTITUTIONS. ON MARCH 31, 2010, THE
VALUE OF THESE SECURITIES AMOUNTED TO $288(000), REPRESENTING 0.6% OF THE
NET ASSETS OF THE FUND.
(B) FLOATING RATE SECURITY - THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH,
31, 2010.
(C) STEP BOND -- THE RATE REFLECTED IS THE RATE IN EFFECT ON MARCH, 31, 2010.
CL -- CLASS
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
NA -- NATIONAL ASSOCIATION
RB -- REVENUE BOND
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
The following is a summary of the inputs used as of March 31, 2010, in valuing
the Fund's investments carried at fair value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- -------------------------- ------- ------- ------- --------
Corporate Bonds $ -- $19,814 $-- $19,814
U.S. Treasury Obligations -- 7,939 -- 7,939
U.S. Government Mortgage-
Backed Obligations -- 7,871 -- 7,871
U.S. Government Agency
Obligations -- 3,632 -- 3,632
Commercial Mortgage-Backed
Obligations -- 2,436 -- 2,436
Asset-Backed Securities -- 2,064 -- 2,064
Mortgage-Backed Securities -- 1,459 -- 1,459
Foreign Bonds -- 181 -- 181
Municipal Bond -- 5 -- 5
Cash Equivalent 1,263 -- -- 1,263
------ ------- --- -------
Total Investments in
Securities $1,263 $45,401 $-- $46,664
====== ======= === =======
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING
POLICIES IN THE NOTES TO FINANCIAL STATEMENTS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 11
schedule of investments
MARCH 31, 2010 (UNAUDITED)
DIVERSIFIED EQUITY FUND
SECTOR WEIGHTINGS*:
(BAR CHART)
Information Technology 20.0%
Financials 16.2%
Health Care 13.5%
Energy 10.7%
Consumer Staples 10.3%
Consumer Discretionary 9.2%
Industrials 8.3%
Materials 4.6%
Cash Equivalent 3.0%
Telecommunication Services 2.8%
Utilities 1.4%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
COMMON STOCK [97.5%]
AEROSPACE & DEFENSE [1.2%]
L-3 Communications Holdings, Cl 3 273 $ 25
Lockheed Martin 2,674 222
Raytheon 8,378 479
United Technologies 1,480 109
-----------
TOTAL AEROSPACE & DEFENSE 835
===========
APPAREL/TEXTILES [0.3%]
Coach 5,790 229
===========
AUTOMOTIVE [1.1%]
AutoZone * 645 112
Ford Motor * 16,432 206
Harley-Davidson 8,790 247
Johnson Controls 469 15
Lear * 2,810 223
-----------
TOTAL AUTOMOTIVE 803
===========
BANKS [4.2%]
Bank of America 5,953 106
Bank of New York Mellon 6,325 195
Fifth Third Bancorp 40,209 547
KeyCorp 30,150 234
M&T Bank 2,700 214
PNC Financial Services Group 1,666 100
US Bancorp 31,275 809
Wells Fargo 23,447 730
-----------
TOTAL BANKS 2,935
===========
BEAUTY PRODUCTS [0.4%]
Procter & Gamble 4,272 270
===========
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
BIOMEDICAL RESEARCH & PRODUCTS [0.1%]
Celgene * 748 $ 46
===========
BIOTECHNOLOGY [1.4%]
Alexion Pharmaceuticals * 3,220 175
Amgen * 1,679 100
Biogen Idec * 438 25
Cephalon * 146 10
Gilead Sciences * 11,770 535
Millipore * 91 10
PDL BioPharma 836 5
United Therapeutics * 2,800 155
-----------
TOTAL BIOTECHNOLOGY 1,015
===========
BROADCASTING & CABLE [3.3%]
Cisco Systems * 49,640 1,292
F5 Networks * 3,490 215
Harris 1,639 78
Qualcomm 18,192 764
-----------
TOTAL BROADCASTING & CABLE 2,349
===========
BUSINESS SERVICES [1.3%]
Computer Sciences * 2,461 134
eBay * 7,433 200
Visa, Cl A 5,310 484
Xerox 10,992 107
-----------
TOTAL BUSINESS SERVICES 925
===========
CHEMICALS [1.2%]
Dow Chemical 7,900 234
International Flavors & Fragrances 1,692 81
Monsanto 3,122 223
Potash Corp of Saskatchewan 2,600 310
-----------
TOTAL CHEMICALS 848
===========
COMMERCIAL BANKS [0.6%]
BB&T 13,200 428
===========
COMMUNICATION & MEDIA [1.7%]
Cablevision Systems, Cl A 14,800 357
Comcast, Cl A 14,728 277
Time Warner 8,366 262
Time Warner Cable, Cl A 2,601 139
Viacom, Cl B * 4,956 170
-----------
TOTAL COMMUNICATION & MEDIA 1,205
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 12
schedule of investments
MARCH 31, 2010 (UNAUDITED)
DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
COMPUTER SOFTWARE [2.8%]
CA 971 $ 23
Compuware * 8,516 71
Microsoft 19,292 565
Oracle 19,389 498
Symantec * 50,456 854
-----------
TOTAL COMPUTER SOFTWARE 2,011
===========
COMPUTER SYSTEM DESIGN & SERVICES [4.9%]
Apple * 6,030 1,417
Dell * 25,129 377
Hewlett-Packard 11,972 636
IBM 6,627 850
Lexmark International, Cl A * 2,053 74
SanDisk * 1,130 39
Western Digital * 2,123 83
-----------
TOTAL COMPUTER SYSTEM DESIGN & SERVICES 3,476
===========
COMPUTERS & PERIPHERALS [0.5%]
EMC * 21,125 381
===========
CONSTRUCTION & ENGINEERING [0.4%]
Aecom Technology * 8,975 255
===========
CONSUMER PRODUCTS & SERVICES [1.3%]
Clorox 4,475 287
Colgate-Palmolive 4,240 362
Kimberly-Clark 2,120 133
Mattel 6,500 148
-----------
TOTAL CONSUMER PRODUCTS & SERVICES 930
===========
CONTAINERS & PACKAGING [0.3%]
Crown Holdings * 8,600 232
===========
DISTRIBUTORS [0.2%]
Genuine Parts 2,745 116
===========
DIVERSIFIED CONSUMER SERVICES [0.2%]
H&R Block 6,576 117
===========
DIVERSIFIED MANUFACTURING [2.3%]
3M 6,568 549
General Electric 41,922 763
Parker Hannifin 4,750 307
-----------
TOTAL DIVERSIFIED MANUFACTURING 1,619
===========
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
DIVERSIFIED METALS & MINING [2.2%]
Cliffs Natural Resources 5,200 $ 369
Freeport-McMoRan Copper & Gold, Cl B 5,933 496
Newmont Mining 3,632 185
Rio Tinto, ADR 2,190 518
-----------
TOTAL DIVERSIFIED METALS & MINING 1,568
===========
DRUGS [3.8%]
Abbott Laboratories 6,337 334
Allergan 3,430 224
Bristol-Myers Squibb 5,500 147
Eli Lilly 6,449 234
Johnson & Johnson 11,437 746
Merck 5,318 199
Mylan * 17,900 406
Pfizer 8,720 149
Santarus * 996 5
Teva Pharmaceutical Industries 4,310 272
-----------
TOTAL DRUGS 2,716
===========
ELECTRICAL EQUIPMENT [0.5%]
Baldor Electric 10,000 374
===========
ELECTRICAL SERVICES [1.0%]
ABB, ADR 10,390 227
Allegheny Energy 4,792 110
Ameren 4,332 113
American Electric Power 1,475 51
Exelon 2,718 119
FPL Group 1,288 62
Public Service Enterprise Group 1,123 33
-----------
TOTAL ELECTRICAL SERVICES 715
===========
ELECTRONIC EQUIPMENT [0.1%]
Jabil Circuit 4,983 81
===========
ENERGY [0.1%]
Edison International 1,789 61
Sempra Energy 353 18
-----------
TOTAL ENERGY 79
===========
ENTERTAINMENT [1.5%]
Carnival 4,042 157
Las Vegas Sands * 18,350 388
Starwood Hotels & Resorts Worldwide 5,950 278
Wendy,s, Cl A 47,500 237
-----------
TOTAL ENTERTAINMENT 1,060
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 13
schedule of investments
MARCH 31, 2010 (UNAUDITED)
DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
FINANCIAL SERVICES [2.5%]
American Express 6,165 $ 255
Charles Schwab 26,180 489
Discover Financial Services 5,056 75
Hudson City Bancorp 7,779 110
IntercontinentalExchange * 4,950 555
Nasdaq Stock Market * 13,200 279
-----------
TOTAL FINANCIAL SERVICES 1,763
===========
FOOD, BEVERAGE & TOBACCO [4.3%]
Coca-Cola 7,402 407
ConAgra Foods 16,751 420
Del Monte Foods 17,600 257
General Mills 5,929 420
Kraft Foods, Cl A 4,932 149
Molson Coors Brewing, Cl B 2,668 112
PepsiCo 18,760 1,241
-----------
TOTAL FOOD, BEVERAGE & TOBACCO 3,006
===========
GAS/NATURAL GAS [0.5%]
Nicor 2,179 91
Questar 6,244 270
-----------
TOTAL GAS/NATURAL GAS 361
===========
HEALTH CARE TECHNOLOGY [0.4%]
Cerner * 3,310 282
===========
HEALTHCARE PRODUCTS & SERVICES [3.4%]
Cardinal Health 5,524 199
Express Scripts, Cl A * 3,840 391
Life Technologies * 294 15
McKesson 12,286 807
Medtronic 7,650 344
Pharmaceutical Product Development 7,900 188
UnitedHealth Group 6,150 201
Waters * 4,302 291
-----------
TOTAL HEALTHCARE PRODUCTS & SERVICES 2,436
===========
HOUSEHOLD FURNITURE & FIXTURES [1.1%]
Lennar, Cl A 4,083 70
Pulte Homes * 37,560 423
Whirlpool 3,598 314
-----------
TOTAL HOUSEHOLD FURNITURE & FIXTURES 807
===========
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADER [0.1%]
Constellation Energy Group 2,265 $ 80
===========
INDUSTRIAL [0.4%]
Manpower 4,760 272
===========
INSURANCE [2.7%]
Berkshire Hathaway, Cl B * 2,702 220
Chubb 5,500 285
Cincinnati Financial 3,808 110
HCC Insurance Holdings 14,800 409
Marsh & McLennan 8,700 213
Tenet Healthcare * 7,824 45
Travelers 3,642 196
Unum Group 17,700 438
-----------
TOTAL INSURANCE 1,916
===========
INVESTMENT BANKER/BROKER DEALER [5.6%]
BlackRock, Cl A 2,060 448
Federated Investors, Cl B 1,735 46
Fortress Investment Group, Cl A * 30,590 122
Goldman Sachs Group 5,525 943
JPMorgan Chase 34,004 1,522
Morgan Stanley 10,125 296
Northern Trust 2,510 139
T Rowe Price Group 8,140 447
-----------
TOTAL INVESTMENT BANKER/BROKER DEALER 3,963
===========
MACHINERY [1.4%]
AGCO * 8,200 294
Caterpillar 5,910 371
Cummins 4,680 290
-----------
TOTAL MACHINERY 955
===========
MANUFACTURING [0.7%]
Tyco International 12,450 476
===========
MEDICAL PRODUCTS & SERVICES [4.3%]
Becton Dickinson 2,907 229
CareFusion * 17,728 469
Covidien 5,750 289
Genzyme-General Division * 433 22
Hospira * 2,020 114
Intuitive Surgical * 1,110 386
Laboratory Corp of America Holdings * 3,200 242
Patterson 9,100 283
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 14
schedule of investments
MARCH 31, 2010 (UNAUDITED)
DIVERSIFIED EQUITY FUND (CONTINUED)
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
Quest Diagnostics 7,500 $ 437
Stryker 5,275 302
WellPoint * 3,385 218
-----------
TOTAL MEDICAL PRODUCTS & SERVICES 2,991
===========
METALS & MINING [0.4%]
Barrick Gold 7,475 287
===========
OFFICE FURNITURE & FIXTURES [0.4%]
Salesforce.com * 3,910 291
===========
PAPER & RELATED PRODUCTS [0.5%]
Sealed Air 15,234 321
===========
PERSONAL PRODUCTS [0.5%]
Avon Products 9,510 322
===========
PETROLEUM & FUEL PRODUCTS [10.8%]
Alpha Natural Resources * 6,070 303
Anadarko Petroleum 6,075 442
Cameron International * 11,440 490
Chesapeake Energy 8,400 199
ChevronTexaco 6,875 521
ConocoPhillips 2,800 143
Devon Energy 157 10
Diamond Offshore Drilling 378 34
Enbridge 4,940 236
Exterran Holdings * 14,700 355
Exxon Mobil 5,108 342
Marathon Oil 5,756 182
Murphy Oil 1,564 88
National Oilwell Varco 143 6
Newfield Exploration * 5,900 307
Occidental Petroleum 7,600 643
Rowan * 3,722 108
Royal Dutch Shell, Cl B 5,275 292
Schlumberger 7,680 487
Southwestern Energy * 15,050 613
Spectra Energy 9,700 219
Unit * 9,400 397
Valero Energy 7,200 142
Weatherford International * 21,250 337
Williams 20,081 464
XTO Energy 4,801 227
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 7,587
===========
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
PRINTING & PUBLISHING [0.3%]
Gannett 4,474 $ 74
Pitney Bowes 4,931 120
-----------
TOTAL PRINTING & PUBLISHING 194
===========
RAILROADS [0.1%]
CSX 1,147 58
===========
REAL ESTATE INVESTMENT TRUST [0.0%]
Apartment Investment & Management, Cl A 1,380 25
===========
REAL ESTATE MANAGEMENT & DEVELOPMENT [0.7%]
Brookfield Asset Management, Cl A 18,500 470
===========
RETAIL [6.5%]
Advance Auto Parts 3,950 166
Big Lots * 2,362 86
CVS 20,426 747
Gap 5,669 131
Guess ? 4,920 231
Home Depot 1,176 38
Kohl's * 5,275 289
Lowe's 12,420 301
McDonald,s 113 8
Sherwin Williams 1,023 69
Staples 11,875 278
Supervalu 15,227 254
SYSCO 1,912 56
Target 4,312 227
TJX 3,783 161
Walgreen 10,900 404
Wal-Mart Stores 11,583 644
Whole Foods Market * 13,370 483
-----------
TOTAL RETAIL 4,573
===========
SEMI-CONDUCTORS [4.1%]
Advanced Micro Devices * 5,459 51
Applied Materials 42,110 568
ASML Holding, Cl G GDR 14,920 528
Broadcom, Cl A 11,910 395
Cree * 2,700 189
Intel 17,107 381
Lam Research * 11,340 423
Micron Technology * 27,829 289
National Semiconductor 5,060 73
-----------
TOTAL SEMI-CONDUCTORS 2,897
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 15
schedule of investments
MARCH 31, 2010 (UNAUDITED)
DIVERSIFIED EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
TELECOMMUNICATIONS EQUIPMENT [0.4%]
Nokia, ADR 18,000 $ 280
===========
TELEPHONES & TELECOMMUNICATIONS [3.2%]
America Movil, ADR 7,440 375
AT&T 26,014 672
Corning 11,877 240
Millicom International Cellular 3,780 337
Verizon Communications 19,828 615
-----------
TOTAL TELEPHONES & TELECOMMUNICATIONS 2,239
===========
TRANSPORTATION SERVICES [0.7%]
FedEx 3,700 345
Union Pacific 2,179 160
-----------
TOTAL TRANSPORTATION SERVICES 505
===========
WASTE MANAGEMENT SERVICES [0.3%]
Waste Management 5,612 193
===========
WEB PORTALS/ISP [1.8%]
Google, Cl A * 2,242 1,271
===========
WHOLESALE [0.5%]
Mead Johnson Nutrition, Cl A 5,210 271
Tyson Foods, Cl A 4,364 84
-----------
TOTAL WHOLESALE 355
===========
TOTAL COMMON STOCK
(Cost $61,821) 68,794
===========
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
CASH EQUIVALENT [3.1%]
AIM STIT-Treasury Portfolio, 0.030%+ 2,145,839 $ 2,146
-----------
TOTAL CASH EQUIVALENT
(Cost $2,146) 2,146
===========
TOTAL INVESTMENTS [100.6%]
(Cost $63,967) $ 70,940
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $70,549,239.
* NON-INCOME PRODUCING SECURITY.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
ADR -- AMERICAN DEPOSITARY RECEIPT
CL -- CLASS
GDR -- GLOBAL DEPOSITARY RECEIPT
ISP -- INTERNET SERVICE PROVIDER
The following is a summary of the inputs used as of March 31, 2010, in valuing
the Fund's investments carried at fair value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- ------------------------- ------- ------- ------- -------
Common Stock $68,794 $-- $-- $68,794
Cash Equivalent 2,146 -- -- 2,146
------- --- --- -------
Total Investments in Securities $70,940 $-- $-- $70,940
======= === === =======
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING
POLICIES IN THE NOTES TO FINANCIAL STATEMENTS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 16
schedule of investments
MARCH 31, 2010 (UNAUDITED)
SOCIALLY RESPONSIBLE EQUITY FUND
SECTOR WEIGHTINGS*:
(BAR CHART)
Financials 20.0%
Health Care 19.0%
Energy 17.4%
Information Technology 14.3%
Consumer Discretionary 7.7%
Consumer Staples 6.4%
Industrials 6.3%
Cash Equivalent 4.6%
Materials 4.3%
* Percentages based on total investments.
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
COMMON STOCK [95.3%]
ADVERTISING [2.7%]
CBS, Cl B 117,000 $ 1,631
===========
BANKS [9.1%]
BOK Financial 10,000 524
Cullen 11,500 642
M&T Bank 17,000 1,350
Toronto-Dominion Bank 9,000 671
UMB Financial 13,500 548
US Bancorp 68,000 1,760
-----------
TOTAL BANKS 5,495
===========
BUSINESS SERVICES [2.0%]
Automatic Data Processing 27,000 1,201
===========
CHEMICALS [2.2%]
EI du Pont de Nemours 35,000 1,303
===========
COMMUNICATION & MEDIA [2.0%]
Thomson Reuters 34,000 1,234
===========
COMPUTER SOFTWARE [5.6%]
Microsoft 60,000 1,756
Symantec * 95,000 1,608
-----------
TOTAL COMPUTER SOFTWARE 3,364
===========
COMPUTER SYSTEM DESIGN & SERVICES [2.4%]
Dell * 95,000 1,426
===========
CONSUMER PRODUCTS & SERVICES [3.8%]
Clorox 18,000 1,154
Kimberly-Clark 18,000 1,132
-----------
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
TOTAL CONSUMER PRODUCTS & SERVICES $ 2,286
===========
DISTRIBUTORS [1.7%]
Genuine Parts 25,000 1,056
===========
DRUGS [2.7%]
Bristol-Myers Squibb 61,000 1,629
===========
ELECTRICAL EQUIPMENT [3.3%]
Emerson Electric 40,000 2,013
===========
FINANCIAL SERVICES [3.8%]
IntercontinentalExchange * 7,000 785
Nasdaq Stock Market * 45,000 951
NYSE Euronext 18,000 533
-----------
TOTAL FINANCIAL SERVICES 2,269
===========
HEALTHCARE PRODUCTS & SERVICES [7.6%]
Cardinal Health 47,000 1,693
McKesson 27,500 1,807
Pharmaceutical Product Development 45,000 1,069
-----------
TOTAL HEALTHCARE PRODUCTS & SERVICES 4,569
===========
HOUSEHOLD FURNITURE & FIXTURES [1.1%]
Whirlpool 8,000 698
===========
INSURANCE [3.8%]
Berkshire Hathaway, Cl B * 15,000 1,219
Chubb 20,000 1,037
-----------
TOTAL INSURANCE 2,256
===========
MANUFACTURING [2.9%]
Tyco International 45,875 1,755
===========
MEDICAL PRODUCTS & SERVICES [8.7%]
CareFusion * 24,500 648
Laboratory Corp of America Holdings * 14,000 1,060
Patterson 60,000 1,863
Quest Diagnostics 29,000 1,690
-----------
TOTAL MEDICAL PRODUCTS & SERVICES 5,261
===========
PAPER & RELATED PRODUCTS [2.2%]
Packaging Corp of America 53,500 1,317
===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 17
schedule of investments
MARCH 31, 2010 (UNAUDITED)
SOCIALLY RESPONSIBLE EQUITY FUND (CONCLUDED)
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
PETROLEUM & FUEL PRODUCTS [17.4%]
ConocoPhillips 32,000 $ 1,638
EnCana 32,000 993
Exterran Holdings * 72,500 1,752
Patterson-UTI Energy 112,000 1,565
Southwestern Energy * 26,000 1,059
Spectra Energy 80,000 1,802
Unit * 40,000 1,691
-----------
TOTAL PETROLEUM & FUEL PRODUCTS 10,500
===========
REAL ESTATE MANAGEMENT & DEVELOPMENT [3.4%]
Brookfield Asset Management, Cl A 80,000 2,033
===========
RETAIL [2.6%]
Walgreen 43,000 1,595
===========
SEMI-CONDUCTORS [2.2%]
Intel 59,000 1,313
===========
TELEPHONES & TELECOMMUNICATIONS [2.1%]
Research In Motion * 17,500 1,294
===========
TOTAL COMMON STOCK
(Cost $53,712) 57,498
===========
DESCRIPTION SHARES VALUE (000)
- ----------- --------- -----------
CASH EQUIVALENT [4.6%]
AIM STIT-Government Tax
Advantage Portfolio
Institutional Class,
0.020% + 2,779,812 $ 2,780
-----------
TOTAL CASH EQUIVALENT
(Cost $2,780) 2,780
===========
TOTAL INVESTMENTS [99.9%]
(Cost $56,492) $ 60,278
===========
PERCENTAGES ARE BASED ON NET ASSETS OF $60,362,486.
* NON-INCOME PRODUCING SECURITY.
+ THE RATE REPORTED IS THE 7-DAY CURRENT YIELD AS OF MARCH 31, 2010.
CL -- CLASS
The following is a summary of the inputs used as of March 31, 2010, in valuing
the Fund's investments carried at fair value ($ Thousands):
Investments in Securities Level 1 Level 2 Level 3 Total
- ------------------------- ------- ------- ------- -------
Common Stock $57,498 $-- $-- $57,498
Cash Equivalent 2,780 -- -- 2,780
------- --- --- -------
Total Investments in
Securities $60,278 $-- $-- $60,278
======= === === =======
FOR MORE INFORMATION ON VALUATION INPUTS, SEE NOTE 2 -- SIGNIFICANT ACCOUNTING
POLICIES IN THE NOTES TO FINANCIAL STATEMENTS.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 18
statements of assets and liabilities (000)
MARCH 31, 2010 (UNAUDITED)
Limited Full Socially
Maturity Maturity Diversified Responsible
Fixed Income Fixed Income Equity Equity
Fund Fund Fund Fund
------------ ------------ ----------- -----------
ASSETS:
Cost of securities $ 62,474 $ 46,171 $ 63,967 $ 56,492
----------- ----------- ----------- -----------
Investments in securities at value $ 63,037 $ 46,664 $ 70,940 $ 60,278
Cash -- -- -- 5
Dividend and interest receivable 504 399 51 96
Receivable for capital shares sold 460 34 18 62
Receivable for investment securities sold -- 321 1,927 --
Prepaid expenses 1 2 3 2
----------- ----------- ----------- -----------
Total Assets 64,002 47,420 72,939 60,443
----------- ----------- ----------- -----------
LIABILITIES:
Investment advisor fees payable 30 19 41 38
Distribution fees payable 3 1 1 1
Administrative fees payable 3 2 3 3
Payable for capital shares redeemed 4 1 9 14
Income distribution payable 17 22 -- --
Payable for investment securities
purchased 1,929 1,016 2,299 --
Other accrued expenses 20 21 37 25
----------- ----------- ----------- -----------
Total Liabilities 2,006 1,082 2,390 81
----------- ----------- ----------- -----------
NET ASSETS $ 61,996 $ 46,338 $ 70,549 $ 60,362
----------- ----------- ----------- -----------
NET ASSETS:
Paid-in Capital
(unlimited authorization --
$0.01 par value) $ 64,299 $ 45,598 $ 87,776 $ 67,185
Undistributed (distributions in excess of)
net investment income (33) (7) 4 18
Accumulated net realized gain (loss)
on investments (2,833) 254 (24,204) (10,627)
Net unrealized appreciation
on investments 563 493 6,973 3,786
----------- ----------- ----------- -----------
NET ASSETS $ 61,996 $ 46,338 $ 70,549 $ 60,362
----------- ----------- ----------- -----------
Institutional Class Shares ($ Dollars):
Net Assets $55,135,090 $44,397,423 $63,633,695 $58,606,847
Total shares outstanding at end of period 4,981,415 4,238,197 5,117,962 6,541,601
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 11.07 $ 10.48 $ 12.43 $ 8.96
Class N Shares ($ Dollars):
Net Assets $ 6,861,310 $ 1,940,426 $ 6,915,544 $ 1,755,639
Total shares outstanding at end of period 619,558 185,336 554,738 196,254
Net asset value, offering and
redemption price per share
(net assets / shares outstanding) $ 11.07 $ 10.47 $ 12.47 $ 8.95
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 19
statements of operations (000)
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED)
Limited Maturity Fixed Full Maturity Fixed
Income Fund Income Fund
---------------------- -------------------
INVESTMENT INCOME:
Interest $ 598 $ 912
Dividends -- --
Foreign taxes withheld -- --
----- ------
Total Investment Income 598 912
----- ------
EXPENSES:
Investment Advisory Fees 112 104
Administration Fees 11 10
Trustees' Fees and Expenses 1 1
Shareholder Servicing Fees -- Class N Shares 5 2
Distribution Expense -- Class N Shares 5 2
Transfer Agent Fees and Expenses 18 19
Reports to Shareholders 6 6
Custodian Fees and Expenses 4 4
Professional Fees 2 2
Registration Fees -- 1
Insurance and Other Expenses 3 2
----- ------
Total Expenses 167 153
----- ------
Recovery of Investment Advisory Fees
Previously Waived(1) 12 --
Less Waiver of:
Shareholder Servicing Fees -- Class N Shares (5) (2)
Distribution Expenses -- Class N Shares -- --
Advisory Fees -- --
Transfer Agent Fees (2) (2)
----- ------
Net Expenses 172 149
----- ------
NET INVESTMENT INCOME 426 763
----- ------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Investments 155 267
Change in Net Unrealized Appreciation (Depreciation) on Investments (230) (22)
----- ------
Net Realized and Unrealized
Gain (Loss) on Investments (75) 245
----- ------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 351 $1,008
===== ======
(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.
CNI CHARTER FUNDS | PAGE 20
Socially Responsible
Diversified Equity Fund Equity Fund
- ----------------------- --------------------
$ -- $ --
443 553
(3) (8)
------ -------
440 545
------ -------
223 211
15 14
1 1
8 2
8 2
28 25
8 8
6 5
3 3
1 1
4 3
------ -------
305 275
------ -------
-- --
(3) (2)
(5) --
-- --
(3) (3)
------ -------
294 270
------ -------
146 275
------ -------
1,873 (1,846)
4,473 6,881
------ -------
6,346 5,035
------ -------
$6,492 $ 5,310
====== =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 21
statements of changes in net assets (000)
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEAR ENDED SEPTEMBER
30, 2009
Limited Maturity Full Maturity
Fixed Income Fund Fixed Income Fund
------------------ ------------------
2010 2009 2010 2009
------- -------- ------- -------
OPERATIONS:
Net Investment Income $ 426 $ 1,021 $ 763 $ 1,661
Net Realized Gain (Loss) on Investments Sold 155 (559) 267 725
Change in Net Unrealized Appreciation
(Depreciation) on Investments (230) 2,569 (22) 1,503
------- -------- ------- -------
Net Increase (Decrease) in Net Assets
Resulting from Investment Operations 351 3,031 1,008 3,889
------- -------- ------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to Shareholders from Net Investment Income:
INSTITUTIONAL CLASS (422) (1,022) (739) (1,627)
CLASS N (36) (23) (30) (30)
Distributions to Shareholders from Net Realized Gains:
INSTITUTIONAL CLASS -- -- (194) --
CLASS N -- -- (9) --
Return of Capital:
INSTITUTIONAL CLASS -- -- -- --
CLASS N -- -- -- --
------- -------- ------- -------
Total Dividends and Distributions to Shareholders (458) (1,045) (972) (1,657)
------- -------- ------- -------
FUND SHARE TRANSACTIONS:
FUND SHARE TRANSACTIONS: INSTITUTIONAL CLASS
Net Proceeds from Shares Sold 23,630 2,957 4,362(1) 713
Reinvestment of Dividends 305 690 762 1,272
Cost of Shares Redeemed (5,965) (61,014) (257) (7,255)
------- -------- ------- -------
Total Fund Share Transactions Institutional Class 17,970 (57,367) 4,867 (5,270)
------- -------- ------- -------
FUND SHARE TRANSACTIONS: CLASS N
Net Proceeds from Shares Sold 5,744 1,117 1,454 594
Reinvestment of Dividends 35 23 39 23
Cost of Shares Redeemed (372) (146) (639) (264)
------- -------- ------- -------
Total Fund Share Transactions Class N 5,407 994 854 353
------- -------- ------- -------
Net Increase (Decrease) in Net Assets from
Capital Share Contributions 23,377 (56,373) 5,721 (4,917)
------- -------- ------- -------
Total Increase (Decrease) in Net Assets 23,270 (54,387) 5,757 (2,685)
------- -------- ------- -------
NET ASSETS:
Beginning of period 38,726 93,113 40,581 43,266
------- -------- ------- -------
End of period* $61,996 $ 38,726 $46,338 $40,581
======= ======== ======= =======
* Including Undistributed (Distributions in excess of)
Net Investment Income $ (33) $ (1) $ (7) $ (1)
======= ======== ======= =======
(1) INCLUDES SUBSCRIPTIONS AS A RESULT OF AN IN-KIND TRANSFER OF SECURITIES
(SEE NOTE 9).
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 22
Socially
Diversified Responsible
Equity Fund Equity Fund
- ------------------- -----------------
2010 2009 2010 2009
- ------- -------- ------- -------
$ 146 $ 743 $ 275 $ 742
1,873 (17,983) (1,846) (7,553)
4,473 11,578 6,881 1,221
- ------- -------- ------- -------
6,492 (5,662) 5,310 (5,590)
- ------- -------- ------- -------
(134) (718) (255) (782)
(8) (46) (5) (14)
-- -- -- --
-- -- -- --
-- (5) -- --
-- -- -- --
- ------- -------- ------- -------
(142) (769) (260) (796)
- ------- -------- ------- -------
7,773(1) 8,974 5,634 10,490
115 649 255 782
(355) (28,487) (4,610) (5,813)
- ------- -------- ------- -------
7,533 (18,864) 1,279 5,459
- ------- -------- ------- -------
1,304 284 649 679
8 45 5 14
(631) (1,148) (128) (400)
- ------- -------- ------- -------
681 (819) 526 293
- ------- -------- ------- -------
8,214 (19,683) 1,805 5,752
- ------- -------- ------- -------
14,564 (26,114) 6,855 (634)
- ------- -------- ------- -------
55,985 82,099 53,507 54,141
- ------- -------- ------- -------
$70,549 $ 55,985 $60,362 $53,507
======= ======== ======= =======
$ 4 $ -- $ 18 $ 3
======= ======== ======= =======
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
CNI CHARTER FUNDS | PAGE 23
financial highlights
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
FOR THE SIX MONTHS ENDED MARCH 31, 2010 (UNAUDITED) AND THE YEARS ENDED
SEPTEMBER 30, (UNLESS OTHERWISE INDICATED)
NET
REALIZED
NET AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS FROM NET FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME(1)(3) INVESTMENTS(1) INCOME GAINS PERIOD
--------- ------------ -------------- ---------- ------------- ------
LIMITED MATURITY FIXED INCOME FUND
Institutional Class (commenced operations on December 22, 1988)
2010++ $11.06 $0.10 $ 0.02 $(0.11) $ -- $11.07
2009 10.49 0.30 0.57 (0.30) -- 11.06
2008 10.59 0.37 (0.10) (0.37) -- 10.49
2007 10.56 0.45 0.03 (0.45) -- 10.59
2006# 10.57 0.34 0.02 (0.37) -- 10.56
For the period July 1, through September 30,
2005+ 10.61 0.06 (0.04) (0.06) -- 10.57
For the year ended June 30,
2005 10.68 0.22 (0.06) (0.22)(4) (0.01) 10.61
Class N (commenced operations on October 22, 2004)
2010++ $11.07 $0.11 $(0.01) $(0.10) $ -- $11.07
2009 10.51 0.27 0.57 (0.28) -- 11.07
2008 10.61 0.35 (0.10) (0.35) -- 10.51
2007 10.57 0.42 0.04 (0.42) -- 10.61
2006# 10.58 0.30 0.03 (0.34) -- 10.57
For the period July 1, through September 30,
2005+ 10.62 0.05 (0.04) (0.05) -- 10.58
For the period October 22, 2004 through June 30,
2005 10.77 0.14 (0.13) (0.15)(4) (0.01) 10.62
FULL MATURITY FIXED INCOME FUND
Institutional Class (commenced operations on October 20, 1988)
2010++ $10.46 $0.19 $ 0.07 $(0.19) $(0.05) $10.48
2009 9.90 0.40 0.56 (0.40) -- 10.46
2008 10.16 0.44 (0.26) (0.44) -- 9.90
2007 10.16 0.45 -- (0.45) -- 10.16
2006## 10.35 0.43 (0.13) (0.43) (0.06) 10.16
For the period July 1, through September 30,
2005+ 10.50 0.09 (0.15) (0.09) -- 10.35
For the year ended June 30,
2005 10.39 0.38 0.20 (0.38) (0.09) 10.50
Class N (commenced operations on May 11, 2004)
2010++ $10.46 $0.19 $ 0.05 $(0.18) $(0.05) $10.47
2009 9.89 0.39 0.56 (0.38) -- 10.46
2008 10.16 0.42 (0.27) (0.42) -- 9.89
2007 10.16 0.42 -- (0.42) -- 10.16
2006## 10.36 0.40 (0.13) (0.41) (0.06) 10.16
For the period July 1, through September 30,
2005+ 10.50 0.08 (0.14) (0.08) -- 10.36
For the year ended June 30,
2005 10.39 0.34 0.22 (0.36) (0.09) 10.50
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE RATIO
NET ASSETS NET ASSETS OF NET
NET BEFORE AFTER INVESTMENT
ASSETS WAIVERS WAIVERS INCOME
END OF & & TO AVERAGE PORTFOLIO
TOTAL PERIOD RECOVERED RECOVERED NET TURNOVER
RETURN (000) FEES(2) FEES(2)* ASSETS(2) RATE(3)
------- -------- ---------- ---------- ---------- ---------
LIMITED MATURITY FIXED INCOME FUND
Institutional Class (commenced operations on December 22, 1988)
2010++ 1.09% $ 55,135 0.71% 0.75% 1.93% 50%
2009 8.44 37,255 0.76 0.75 2.66 98
2008 2.54 92,681 0.67 0.76 3.44 79
2007 4.63 44,365 0.77 0.76 4.25 76
2006# 3.49 45,340 0.94 0.75 3.24 86
For the period July 1, through September 30,
2005+ 0.20(5) 112,381 0.88(6) 0.86(6) 2.20(6) 4
For the year ended June 30,
2005 1.53 128,501 0.79 0.78 2.01 109
Class N (commenced operations on October 22, 2004)
2010++ 0.89% $ 6,861 1.20% 0.99% 1.66% 50%
2009 8.07 1,471 1.24 1.00 2.29 98
2008 2.29 432 0.92 1.00 3.24 79
2007 4.47 310 1.02 1.00 3.99 76
2006# 3.17 358 1.18 1.00 2.88 86
For the period July 1, through September 30,
2005+ 0.13(5) 822 1.11(6) 1.10(6) 1.95(6) 4
For the period October 22, 2004 through June 30,
2005 0.12(5) 1,070 1.07(6) 1.03(6) 1.75(6) 109
FULL MATURITY FIXED INCOME FUND
Institutional Class (commenced operations on October 20, 1988)
2010++ 2.53% $ 44,397 0.72% 0.71% 3.68% 23%
2009 9.95 39,495 0.75 0.75 3.97 56
2008 1.76 42,579 0.64 0.64 4.32 34
2007 4.48 42,096 0.73 0.79 4.48 55
2006## 3.03 30,398 0.87 0.80 4.20 91
For the period July 1, through September 30,
2005+ (0.57)(5) 31,764 0.83(6) 1.00(6) 3.37(6) 17
For the year ended June 30,
2005 5.72 31,960 0.95 1.00 3.58 144
Class N (commenced operations on May 11, 2004)
2010++ 2.31% $ 1,940 1.21% 0.95% 3.41% 23%
2009 9.79 1,086 1.26 1.00 3.70 56
2008 1.42 687 0.89 0.89 4.02 34
2007 4.23 235 0.99 1.04 4.23 55
2006## 2.67 145 1.12 1.05 3.95 91
For the period July 1, through September 30,
2005+ (0.54)(5) 134 1.08(6) 1.25(6) 3.12(6) 17
For the year ended June 30,
2005 5.46 134 1.20 1.25 3.33 144
+ THE FUND'S FISCAL AND TAX YEAR-END CHANGED FROM JUNE 30 TO SEPTEMBER 30.
++ FOR THE SIX MONTHS ENDED MARCH 31, 2010.
# ON OCTOBER 3, 2005, THE LIMITED MATURITY FIXED INCOME FUND WAS REORGANIZED
INTO THE 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 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.
* RATIO INCLUDES WAIVERS, PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED AND RECAPTURED TRANSFER AGENT FEES. 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.
CNI CHARTER FUNDS | PAGE 24
NET
REALIZED
NET AND NET
ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE NET GAINS FROM NET FROM VALUE
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT REALIZED END OF
OF PERIOD INCOME(3) INVESTMENTS(3) INCOME GAINS PERIOD
--------- ---------- -------------- ---------- ------------- ------
DIVERSIFIED EQUITY FUND
Institutional Class (commenced operations on October 20, 1988)
2010++ $11.19 $0.03 $ 1.24 $(0.03) $ -- $12.43
2009 12.19 0.11 (1.00) (0.11)** -- 11.19
2008 18.48 0.14 (3.84) (0.14) (2.45) 12.19
2007 18.17 0.18 1.89 (0.18) (1.58) 18.48
2006# 17.42 0.15 1.55 (0.15) (0.80) 18.17
For the period July 1, through September 30,
2005+ 16.79 0.02 0.63 (0.02) -- 17.42
For the year ended June 30,
2005 15.39 0.13 1.40 (0.13) -- 16.79
Class N (commenced operations on December 30, 2002)
2010++ $11.22 $0.01 $ 1.25 $(0.01) $ -- $12.47
2009 12.22 0.09 (1.00) (0.09) -- 11.22
2008 18.52 0.11 (3.85) (0.11) (2.45) 12.22
2007 18.21 0.13(7) 1.89 (0.13) (1.58) 18.52
2006# 17.46 0.11 1.55 (0.11) (0.80) 18.21
For the period July 1, through September 30,
2005+ 16.83 0.01 0.63 (0.01) -- 17.46
For the year ended June 30,
2005 15.43 0.09 1.40 (0.09) -- 16.83
SOCIALLY RESPONSIBLE EQUITY FUND
Institutional Class (commenced operations on January 3, 2005)
2010++ $ 8.20 $0.04 $ 0.76 $(0.04) $ -- $ 8.96
2009 9.51 0.12 (1.30) (0.13) -- 8.20
2008 12.12 0.16 (2.04) (0.15) (0.58) 9.51
2007 10.91 0.14 1.36 (0.14) (0.15) 12.12
2006## 10.28 0.12 0.67 (0.11) (0.05) 10.91
For the period July 1, through September 30,
2005+ 9.70 0.02 0.58 (0.02) -- 10.28
For the period January 3, through June 30,
2005 10.00 0.05 (0.30) (0.05) -- 9.70
Class N (commenced operations on August 12, 2005)
2010++ $ 8.19 $0.03 $ 0.76 $(0.03) $ -- $ 8.95
2009 9.50 0.11 (1.31) (0.11) -- 8.19
2008 12.11 0.14 (2.05) (0.12) (0.58) 9.50
2007 10.90 0.12 1.36 (0.11) (0.16) 12.11
2006## 10.28 0.09 0.67 (0.09) (0.05) 10.90
For the period August 12, through September 30,
2005 10.17 0.01 0.12 (0.02) -- 10.28
RATIO RATIO
OF NET OF NET
OPERATING OPERATING
EXPENSES EXPENSES
TO AVERAGE TO AVERAGE RATIO
NET ASSETS NET ASSETS OF NET
NET BEFORE AFTER INVESTMENT
ASSETS WAIVERS WAIVERS INCOME
END OF AND AND TO AVERAGE PORTFOLIO
TOTAL PERIOD RECOVERED RECOVERED NET ASSETS TURNOVER
RETURN (000) FEES(2)(3) FEES(2)(3)* (2)(3) RATE(4)
--------- -------- ---------- ----------- ---------- ---------
DIVERSIFIED EQUITY FUND
Institutional Class (commenced operations on October 20, 1988)
2010++ 11.34% $ 63,634 0.97% 0.96% 0.52% 35%
2009 (7.08) 50,425 0.99 0.98 1.15 93
2008 (22.73) 74,997 0.94 0.97 0.98 143
2007 11.93 102,232 1.02 0.99 0.98 116
2006# 10.16 94,653 1.09 1.01 0.87 99
For the period July 1, through September 30,
2005+ 3.88(5) 81,447 1.08(6) 1.13(6) 0.46(6) 20
For the year ended June 30,
2005 9.95 81,510 1.07 1.05 0.78 128
Class N (commenced operations on December 30, 2002)
2010++ 11.27% $ 6,916 1.47% 1.21% 0.27% 35%
2009 (7.30) 5,560 1.49 1.23 0.91 93
2008 (22.93) 7,102 1.19 1.22 0.74 143
2007 11.62 10,400 1.24 1.27 0.73 116
2006# 9.87 11,122 1.34 1.26 0.62 99
For the period July 1, through September 30,
2005+ 3.81(5) 9,451 1.34(6) 1.38(6) 0.20(6) 20
For the year ended June 30,
2005 9.66 8,842 1.32 1.30 0.53 128
SOCIALLY RESPONSIBLE EQUITY FUND
Institutional Class (commenced operations on January 3, 2005)
2010++ 9.76% $ 58,607 0.96% 0.95% 0.98% 17%
2009 (12.11) 52,406 0.98 0.97 1.74 48
2008 (16.24) 53,256 0.90 0.99 1.51 41
2007 13.89 56,490 1.00 0.94 1.19 29
2006## 7.69 45,003 1.12 1.04 1.10 29
For the period July 1, through September 30,
2005+ 6.20(5) 21,795 1.24(6) 1.15(6) 0.90(6) 7
For the period January 3, through June 30,
2005 (2.48)(5) 20,510 1.16(6) 1.12(6) 1.43(6) 48
Class N (commenced operations on August 12, 2005)
2010++ 9.65% $ 1,756 1.46% 1.20% 0.76% 17%
2009 (12.34) 1,101 1.48 1.22 1.49 48
2008 (16.46) 885 1.15 1.24 1.26 41
2007 13.64 741 1.25 1.19 0.94 29
2006## 7.40 281 1.37 1.29 0.80 29
For the period August 12, through September 30,
2005 1.27(5) 15 1.69(6) 1.43(6) 0.74(6) 7
+ THE FUND'S FISCAL AND TAX YEAR-END CHANGED FROM JUNE 30 TO SEPTEMBER 30.
++ FOR THE SIX MONTHS ENDED MARCH 31, 2010.
# ON OCTOBER 3, 2005, THE DIVERSIFIED EQUITY FUND WAS REORGANIZED INTO THE
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 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, PREVIOUSLY WAIVED INVESTMENT ADVISORY FEES
RECOVERED AND RECAPTURED TRANSFER AGENT FEES. 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.
CNI CHARTER FUNDS | PAGE 25
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
1. ORGANIZATION
The Limited Maturity Fixed Income Fund (the "Limited Maturity Fund"), the Full
Maturity Fixed Income Fund (the "Full Maturity Fund"), the Diversified Equity
Fund (the "Diversified Fund"), and the Socially Responsible Equity Fund (the
"Socially Responsible Fund") (each a "Fund" and, collectively, the "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 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 Fund's series of the Trust.
The shares of the Funds are divided into two classes: Class N Shares and
Institutional Class Shares.
The Balanced Fund closed on March 19, 2010.
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
The following is a summary of significant accounting policies followed by the
Funds.
USE OF ESTIMATES - The preparation of financial statements in conformity with
accounting principles generally accepted in the 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 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 March 31, 2010.
In accordance with U.S. generally accepted accounting principles, 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
CNI CHARTER FUNDS | PAGE 26
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 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).
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 six months ended March 31, 2010, 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 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
Diversified Fund and Socially Responsible Fund. Effective November 1, 2006, the
Advisor has contractually agreed to pay all operating expenses in excess of the
annual rates presented below as applied to each Fund's average daily net assets.
Expense Limitation (as a % of average daily net assets)
Limited Full Socially
Maturity Maturity Diversified Responsible
Fund Fund Fund Fund
-------- -------- ----------- -----------
Institutional Class 1.00% 1.00% 1.25% 1.25%
Class N 1.25% 1.25% 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 six months ended March 31, 2010, the Board of Trustees approved the
reimbursement of previously waived fees to the Advisor in the amount of $11,767
in the Limited Maturity Fund.
As of March 31, 2010, no previously waived fees were eligible for recapture by
the Funds.
CNAM, INC. acts as the sub-advisor with respect to the Limited Maturity Fund and
is paid by the Advisor. Until January 28, 2010, PATTERSON CAPITAL CORPORATION
also served as a sub-advisor with respect to the Fund and was paid by the
Advisor.
ROBERT W. BAIRD & CO., INCORPORATED and BOYD WATTERSON ASSET MANAGEMENT, LLC act
as sub-advisors with respect to the Full Maturity Fund and are paid by the
Advisor.
CNI CHARTER FUNDS | PAGE 27
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
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 Funds'
administrator. Effective with the reorganization into the Trust 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 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 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 six months ended March 31, 2010, CCMA received
Shareholder Servicing fees from the Trust in the amount of $4,760.
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 Funds for
serving as officers of the Funds.
5. FEDERAL INCOME TAXES
It is each Fund's policy to continue to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code and each Fund intends to
distribute 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 March 31, 2010, no
provision for income tax would be required in the Funds' financial statements.
The Funds' federal and state income and federal excise tax returns for tax years
for which the applicable statutes of limitations have not expired are subject to
examination by the Internal Revenue Service and state departments of revenue.
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned. The Funds accrue
such taxes when the related income is earned.
The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with Federal tax
regulations, which may differ from accounting principles generally accepted in
the United States. 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
CNI CHARTER FUNDS | PAGE 28
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 --
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
2009 $1,045 $ -- $-- $ 1,045
2008 2,676 -- -- 2,676
Full Maturity Fund
2009 $1,657 $ -- $-- $ 1,657
2008 1,892 -- -- 1,892
Diversified Fund
2009 $ 764 $ -- $ 5 $ 769
2008 5,167 9,431 -- 14,598
Socially Responsible Fund
2009 $ 796 $ -- $-- $ 796
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):
Total
Distributable
Undistributed Undistributed Capital Unrealized Other Earnings
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
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.
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
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 March 31, 2010, 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 $62,474 $ 684 $ (121) $ 563
Full Maturity Fund 46,171 1,382 (889) 493
Diversified Fund 63,967 8,875 (1,902) 6,973
Socially Responsible Fund 56,492 8,230 (4,444) 3,786
CNI CHARTER FUNDS | PAGE 29
notes to financial statements
MARCH 31, 2010 (UNAUDITED)
6. CAPITAL SHARE TRANSACTIONS (000S):
The share transactions for the six months ended March 31, 2010 (Unaudited) and
the year ended September 30, 2009, were as follows:
Limited Maturity Full Maturity
Fund (000) Fund (000)
------------------- -------------------
03/31/10 09/30/09 03/31/10 09/30/09
-------- -------- -------- --------
INSTITUTIONAL CLASS
Shares Sold 2,124 274 415(1) 69
Shares Issued in
Reinvestment
of Dividends 28 64 73 126
Shares Redeemed (538) (5,805) (25) (722)
----- ------ --- ----
Total Net Change 1,614 (5,467) 463 (527)
===== ====== === ====
CLASS N
Shares Sold 518 103 139 58
Shares Issued in
Reinvestment
of Dividends 3 2 4 2
Shares Redeemed (34) (13) (62) (26)
----- ------ --- ----
Total Net Change 487 92 81 34
===== ====== === ====
Socially
Diversified Responsible
Fund (000) Fund (000)
------------------- -------------------
03/31/10 09/30/09 03/31/10 09/30/09
-------- -------- -------- --------
INSTITUTIONAL CLASS
Shares Sold 633(1) 929 662 1,511
Shares Issued in
Reinvestment
of Dividends 10 71 29 115
Shares Redeemed (30) (2,649) (538) (836)
--- ------ --- ---
Total Net Change 613 (1,649) 153 790
=== ====== === ===
CLASS N
Shares Sold 111 30 76 95
Shares Issued in
Reinvestment
of Dividends 1 5 1 2
Shares Redeemed (53) (121) (15) (56)
--- ------ --- ---
Total Net Change 59 (86) 62 41
=== ====== === ===
(1) Includes subscriptions as a result of an in-kind transfer of securities
(see Note 9).
7. SECURITIES TRANSACTIONS
Purchases and sales and maturities of investment securities, other than
short-term investments, for the six months ended March 31, 2010, were as
follows:
Purchases Sales & Maturities
-------------------- ------------------
U.S. Gov't Other U.S. Gov't Other
Fund (000) (000) (000) (000)
- ---- ---------- ------- ---------- -------
Limited Maturity Fund $24,718 $16,374 $14,461 $ 5,371
Full Maturity Fund 8,243 6,067 6,435 2,880
Diversified Fund -- 27,913 -- 20,059
Socially Responsible Fund -- 10,462 -- 8,906
CNI CHARTER FUNDS | PAGE 30
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.
9. IN-KIND TRANSACTIONS
During the six months ended March 31, 2010, the Full Maturity Fund and
Diversified Fund issued shares of beneficial interest in exchange for
securities. The securities were transferred at their current value on March 19,
2010, as follows:
Shares Value
Issued ($Thousands)
------- ------------
Full Maturity Fund 411,798 $4,332
Diversified Fund 584,035 $7,189
10. RECENT ACCOUNTING PRONOUNCEMENT
In January 2010, the Financial Accounting Standards Board issued Accounting
Standards Update ("ASU") No. 2010-6, FAIR VALUE MEASUREMENTS AND DISCLOSURES
(TOPIC 820): IMPROVING DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS. ASU No. 2010-6
enhances and clarifies existing fair value measurement disclosure requirements
and is effective for interim and annual periods beginning after December 15,
2009. The Trust is currently evaluating the impact, if any, of applying the
provisions of ASU No. 2010-6.
11. SUBSEQUENT EVENTS
The Trust has evaluated the need for disclosures and/or adjustments resulting
from subsequent events through May 28, 2010, the date the financial statements
were issued. Based on this evaluation, no adjustments were required to the
financial statements as of March 31, 2010.
Effective May 24, 2010, UMB Fund Services will replace Citigroup Fund Services,
LLC ("Citi") as sub-transfer agent for the Funds. The fee arrangement for UMB
will be identical to Citi's fee arrangement with respect to the Funds.
At a meeting of the Board of Trustees of the CNI Charter Funds held on May 25,
2010, the Board approved the termination of Freeman Investment Management Co.,
LLC as sub-adviser to the Diversified Equity Fund and approved the appointment
of City National Asset Management, Inc. to serve as interim sub-adviser to the
Diversified Equity Fund subject to the terms of a sub-advisory agreement with
CCMA (the "Agreement") that will terminate 150 days after the effective date of
the Agreement unless the Agreement has been approved by a majority of the
shareholders of the Fund prior to such termination date.
CNI CHARTER FUNDS | PAGE 31
disclosure of fund expenses (UNAUDITED)
All mutual funds have operating expenses. As a shareholder of a Fund, your
investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, administrative services, class specific
distribution fees and shareholder reports like this one. It is important for you
to understand the impact of these costs on your investment returns.
Operating expenses such as these are deducted from the Fund's gross income and
directly reduce your final investment return. These expenses are expressed as a
percentage of the Fund's average net assets; this percentage is known as the
Fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN. This section helps you to estimate the actual expenses that
your Fund incurred over the period. The "Expenses Paid During Period" column
shows the actual dollar expense cost incurred by a $1,000 investment in the
Fund, and the "Ending Account Value" number is derived from deducting that
expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply that ratio by the number
shown for your Fund under "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with
those of other mutual funds. It assumes that the Fund had an annual 5% return
before expenses during the year, but that the expense ratio (Column 3) for the
period is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess your Fund's comparative cost by comparing the
hypothetical result for your Fund in the "Expenses Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
funds.
NOTE: Because the return is set at 5% for comparison purposes - NOT your Fund's
actual return - the account values shown do not apply to your specific
investment.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/09 3/31/10 RATIOS PERIOD*
--------- --------- ---------- --------
LIMITED MATURITY FIXED INCOME FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,010.90 0.75% $3.76
Class N 1,000.00 1,008.90 0.99% 4.96
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.19 0.75% $3.78
Class N 1,000.00 1,020.00 0.99% 4.99
FULL MATURITY FIXED INCOME FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,025.30 0.71% $3.59
Class N 1,000.00 1,023.10 0.95% 4.79
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,021.39 0.71% $3.58
Class N 1,000.00 1,020.19 0.95% 4.78
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/09 3/31/10 RATIOS PERIOD*
--------- --------- ---------- --------
DIVERSIFIED EQUITY FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,113.40 0.96% $5.06
Class N 1,000.00 1,112.70 1.21% 6.37
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,020.14 0.96% $4.84
Class N 1,000.00 1,018.90 1.21% 6.09
SOCIALLY RESPONSIBLE EQUITY FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $1,097.60 0.95% $4.97
Class N 1,000.00 1,096.50 1.20% 6.27
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,020.19 0.95% $4.78
Class N 1,000.00 1,018.95 1.20% 6.04
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/365 (to reflect
the six-month period).
CNI CHARTER FUNDS | PAGE 32
THANK YOU
for your investment with CNI Charter Funds. We value the trust you have placed
in us to help you achieve your financial goals.
For more information on CNI Charter Funds, including charges and expenses,
please call 1-888-889-0799 for a free prospectus. Read it carefully before you
invest or send money.
(CNI CHARTER FUNDS(SM)(R) LOGO)
cnicharterfunds.com CNI-SA-003-0400
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
CNI Charter Funds (the "Fund") has adopted the following procedures by which
shareholders may recommend nominees to the Fund's Board of Trustees. The Fund
has a Nominating Committee comprised solely of persons who are not considered
"interested persons" of the Fund within the meaning of the Investment Company
Act of 1940. The Committee periodically reviews such issues as the Board's
composition, responsibilities, committees, compensation and other relevant
issues, and recommends any appropriate changes to the full Board of Trustees.
While the Committee normally is able to identify from its own resources an ample
number of qualified candidates, it will consider shareholder suggestions of
persons to be considered as nominees to fill future vacancies on the Board, so
long as the shareholder or shareholder group submitting a proposed nominee: (a)
beneficially owns more than 5% of the Fund's voting shares and has held such
shares continuously for two years, and (b) is not an adverse holder. No eligible
shareholder or shareholder group may submit more than one independent Board
member nominee each year. Such suggestions must be sent in writing to the Fund
's Secretary, and must be accompanied by the shareholder's contact information,
the nominee's contact information and number of Fund shares owned by the
nominee, all information regarding the nominee that would be required to be
disclosed in solicitations of proxies for elections of directors required under
the Securities Exchange Act of 1934, and a notarized
letter from the nominee stating his or her intention to serve as a nominee and
be named in the Fund's proxy statement, if so designated by the Committee and
the Board of Trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the second fiscal quarter of the period
covered by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
ITEMS 12. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) CNI Charter Funds
By (Signature and Title)* /s/ Rich Gershen
----------------------------------------
Rich Gershen, President & CEO
Date: June 9, 2010
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/ Rich Gershen
----------------------------------------
Rich Gershen, President & CEO
Date: June 9, 2010
By (Signature and Title)* /s/ Eric Kleinschmidt
----------------------------------------
Eric Kleinschmidt, Controller and COO
Date: June 9, 2010
* Print the name and title of each signing officer under his or her
signature.